Document:

Stock Purchase Agreement Dated April 27, 2005

 EXHIBIT 10.2 
 EXECUTION COPY 
  
 STOCK PURCHASE
AGREEMENT 
  
 Stock Purchase Agreement, dated as of April 27, 2005
(this “Agreement”), between BIP REIT Private Limited, a company organized under the laws of the Republic of Singapore (together with its successors and assigns, the “Purchaser”), and Sunstone Hotel Investors, Inc., a corporation
organized under the laws of the State of Maryland (the “Company”). 
  
 W I T N E S S E T H: 
  
 WHEREAS,
the Company desires to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company, shares of common stock, par value $0.01 per share, of the Company (“Common Stock”) upon the terms and subject to the conditions
set forth herein; and 
  
 WHEREAS, simultaneously with the
consummation of the transactions contemplated by this Agreement, the Company is entering into a Purchase and Sale Agreement, dated as of the date hereof, by and between the Company and Marriott International, Inc. (“Marriott”), attached
hereto as Exhibit A (the “Acquisition Agreement”), pursuant to which the Company will acquire certain of the hotel properties currently owned by CTF Holdings, Ltd. (the “CTF Acquisition”) pursuant to the terms and conditions
thereof; 
  
 WHEREAS, simultaneously with the consummation of the
transactions contemplated by this Agreement, the Company and the Purchaser are entering into an escrow agreement, dated as of the date hereof, among the Company, the Purchaser and Citibank, N.A., as Escrow Agent, attached hereto as Exhibit B (the
“Escrow Agreement”), pursuant to which the Purchaser is delivering to the Escrow Agent an amount equal to the Purchase Price (as defined herein) for the Shares by wire transfer of immediately available funds and pursuant to which the
Company is delivering to the Escrow Agent one or more certificates evidencing the Shares; and 
  
 WHEREAS, simultaneously with the consummation of the transactions contemplated by this Agreement, the Company and the Purchaser are entering into a registration rights agreement, dated as of the date hereof, between
the Company and the Purchaser, attached hereto as Exhibit C (the “Registration Rights Agreement”). 
  
 NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants, agreements, undertakings and obligations set
forth herein and other consideration the sufficiency and adequacy of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows: 
  
 1. Purchase and Sale. 
  
 (a) Upon the terms and subject to the conditions set forth in this Agreement, upon the execution of this Agreement, the Company is issuing and selling to
the Purchaser, and the Purchaser is purchasing from the Company, 3,750,000 shares (the “Shares”) of Common Stock at a price per share of $20.65 (the “Per Share Price”), for a total purchase price of $77,437,500 (the
“Purchase Price”). 
  

 (b) The closing of the sale to, and purchase by, the Purchaser of the Shares (the “Closing”) is
occurring at 7:00 a.m., California time, or as promptly as practicable thereafter, on the date hereof (the “Closing Date”). Delivery of the applicable closing documents and certificates is being made at the offices of Sullivan &
Cromwell LLP, 1888 Century Park East, Los Angeles, CA 90067 or such other place as has been agreed upon by the Company and the Purchaser. 
  
 (c) Upon the earlier of (i) the date of the closing of the CTF Acquisition, (ii) the date that is one business day after receipt of notice from Purchaser
or (iii) the date that is two business days prior to the next record date for the payment of dividends on the Common Stock, the Company will deliver to the Escrow Agent one or more certificates (registered in such names and in such denominations as
the Purchaser has requested) evidencing all of the Shares purchased hereunder, duly endorsed in blank for transfer, with any transfer taxes payable in connection with the transfer of the Shares to the Purchaser duly paid, to be held by the Escrow
Agent pursuant to the Escrow Agreement. 
  
 (d) Within 5 business
days of the Closing, the Purchaser will deliver to the Escrow Agent the Purchase Price in immediately available funds to an account designated by the Escrow Agent, to be held by the Escrow Agent pursuant to the Escrow Agreement. 
  
 (e) At the Closing, the Company is delivering to the Purchaser legal
opinions, dated as of the Closing Date and addressed to the Purchaser, attached hereto as Exhibit D (i) to the effect that the Shares have been duly authorized and, when issued and delivered in accordance with the terms of this Agreement, the Shares
will be validly issued, fully paid and non-assessable and (ii) to the effect that, commencing with its initial taxable year ended December 31, 2004, the Company has been organized in conformity with the requirements for qualification and taxation as
a “real estate investment trust” (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”), and its method of operation has enabled, and its proposed method of operation will enable, it to meet, the
requirements for qualification and taxation as a REIT under the Code. 
  

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 2. Representations and Warranties of the Company. 
  
 The Company hereby represents and warrants to the Purchaser as follows as of the Closing Date: 
  
 (a) Organization of the Company. The Company has been duly
incorporated, is validly existing as a corporation in good standing under the laws of the State of Maryland, has the corporate power and authority to own its properties and to conduct its business as presently conducted as described in the documents
filed by the Company under the Securities Act of 1933, as amended (the “Securities Act”) and the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and is duly qualified to transact business and is in good standing
in the jurisdictions set forth on Schedule 2(a) hereto, which are the only jurisdictions in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so
qualified would not have a material adverse effect on the Company and its subsidiaries, taken as a whole (a “Material Adverse Effect”). 
  
 (b) Organization of Subsidiaries. Each “significant subsidiary” of the Company (as such term is defined in Rule 1-02(w) of Regulation
S-X) (collectively, the “Significant Subsidiaries”) has been duly incorporated or organized, is validly existing as a corporation or limited liability company, as the case may be, in good standing under the laws of the jurisdiction of its
incorporation or formation, has the power and authority (corporate and otherwise) to own its properties and to conduct its business as presently conducted as described in the documents filed by the Company under the Securities Act and the Exchange
Act and is in good standing in each jurisdiction set forth on Schedule 2(b) hereto, which are the only jurisdictions in which the conduct of its business or its ownership or leasing of property requires such qualification, except where the failure
to be so qualified or be in good standing would not have a Material Adverse Effect. 
  
 (c) Authority; Validity. The Company has the requisite corporate power and authority to execute, deliver and perform all of its obligations under this Agreement, the Escrow Agreement and the Registration Rights
Agreement and to consummate the transactions contemplated herein and therein. The Company has taken all necessary action, corporate or otherwise, in order to execute, deliver and perform all of its obligations under this Agreement, the Escrow
Agreement and the Registration Rights Agreement and to consummate the transactions contemplated herein and therein. Each of this Agreement, the Escrow Agreement and the Registration Rights Agreement has been duly executed and delivered by the
Company and constitutes a legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its respective terms, subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws of general
applicability relating to or affecting creditors’ rights and to general equity principles and except as rights to indemnity and contribution contained in the Registration Rights Agreement may be limited by state or federal securities laws or
the public policy underlying such laws. 
  

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 (d) No Conflicts. Neither the execution and delivery of this Agreement, the Escrow Agreement or
the Registration Rights Agreement by the Company, nor the consummation by the Company of the transactions contemplated hereby or thereby, including the issuance and sale of the Shares, nor the compliance by the Company with all of the provisions of
this Agreement, the Escrow Agreement or the Registration Rights Agreement and all other transactions herein and therein contemplated by the Company, does or will: (i) conflict with, or result in any breach of, or constitute a default under nor
constitute any event which (with notice, lapse of time, or both) would constitute a breach of or default under (A) any provisions of the charter (including, without limitation, the articles supplementary) or bylaws or other organizational documents
of the Company or any Significant Subsidiary, (B) any provision of any license, lease, indenture, mortgage, deed of trust, loan, credit, operating agreement, property management agreement or other agreement or instrument to which any of them is a
party or by which any of them or their respective properties or assets may be bound or affected, including any agreement or instrument relating to the CTF Acquisition, (C) any law or regulation binding upon or applicable to the Company or any
Significant Subsidiary or any of their respective properties or assets or (D) any decree, judgment or order applicable to the Company or any Significant Subsidiary; or (ii) result in the creation or imposition of any lien, charge, claim or
encumbrance upon any property or assets of the Company or any Significant Subsidiary. 
  
 (e) Consents, etc. No approval, consent, compliance, exemption, authorization, or other action by, or notice to, or filing with, any governmental authority or agency or any securities exchange or any other
person or entity is necessary or required in connection with the execution and delivery of this Agreement, the Escrow Agreement and the Registration Rights Agreement by the Company or the consummation by the Company of the transactions contemplated
hereby or thereby or the enforcement hereof or thereof against the Company, other than the filings with the Securities and Exchange Commission (the “Commission”) required to comply with its obligations under the Registration Rights
Agreement. As of the Closing Date the Company does not have assets the aggregate fair market value of which is in excess of $53.1 million that are not “exempt assets” as such term is defined under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended, and the rules and regulations promulgated pursuant thereto. 
  
 (f) CTF Acquisition. Each of the representations and warranties of the Company in the Acquisition Agreement are true and correct in all material
respects. The Company has the requisite corporate power and authority to execute, deliver and perform all of its obligations under the Acquisition Agreement and to consummate the transactions contemplated therein. The Company has taken all necessary
action, corporate or otherwise, in order to execute, deliver and perform all of its obligations under the Acquisition Agreement and to consummate the transactions contemplated therein. The Acquisition Agreement has been duly executed and delivered
by the Company and, to the knowledge of the Company, Marriott, and assuming the due authorization, execution and delivery thereof by Marriott, constitutes a legal, valid and binding agreement of the Company and, to the knowledge of the Company,
Marriott, enforceable against the Company and, to the 

  

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knowledge of the Company, Marriott in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws of
general applicability relating to or affecting creditors’ rights and to general equity principles. Upon the consummation of the transactions contemplated by the Acquisition Agreement, the Company will own, subject to the terms and conditions of
the Acquisition Agreement, all of the assets to be acquired pursuant to the Acquisition Agreement free and clear of any Encumbrances (as such term is defined in the Acquisition Agreement). 
  
 (g) Capitalization. 
  
 (i) Without giving effect to the transactions contemplated
by this Agreement, the authorized capital stock of the Company consists of (i) 500,000,000 shares of Common Stock, of which 34,533,321 shares were issued and outstanding and (ii) 100,000,000 shares of preferred stock, of which (a) 5,000,000 shares
are designated as 8% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”), of which 4,100,000 are issued and outstanding and (b) 750,000 shares are designated as 8.0% Series B Cumulative Redeemable Preferred
Stock (the “Series B Preferred Stock”), all of which are issued and outstanding. The outstanding shares of capital stock of the Company have been duly authorized and are validly issued, fully paid and non-assessable, free and clear of all
liens, encumbrances, equities or claims. None of the outstanding shares of capital stock of the Company are entitled to or were issued in violation of preemptive or similar rights of any securityholder in the Company. The authorized capital stock of
the Company conforms in all material respects to the description thereof contained or incorporated by reference in the documents filed by the Company under the Securities Act and the Exchange Act. 
  
 (ii) Except for the shares of Common Stock reserved for
issuance (i) upon conversion of the Common Units issued to the Contributing Entities in connection with the Formation and Structuring Transactions and (ii) in connection with the Company’s 2004 long-term incentive plan and senior management
incentive plan described in the SEC Documents, no shares of Common Stock of the Company are reserved for any purpose. 
  
 (h) Validity of the Shares. The Shares have been duly authorized for issuance and sale to the Purchaser pursuant to this Agreement and, when issued
and delivered in accordance with this Agreement, will be validly issued, fully paid and non-assessable, free and clear of all liens, encumbrances, equities or claims and free of restrictions on transfer other than restrictions on transfer set forth
under this Agreement, the Company’s charter or the Escrow Agreement. The issuance of the Shares to the Purchaser pursuant to this Agreement will not be subject to any preemptive or similar rights. The certificates to be 

  

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used to evidence the Shares are in proper form and comply in all material respects with all applicable legal requirements and the requirements of the charter
and bylaws of the Company. 
  
 (i) Subsidiary Securities.
All of the issued and outstanding shares of capital stock or other ownership interests of each Significant Subsidiary have been duly and validly authorized and issued, are fully paid and are non-assessable and are owned directly or indirectly by the
Company or Sunstone Hotel Partnership, LLC, a Delaware limited liability company (the “Operating Partnership”) (other than the common membership interests (the “Common Units”) of the Operating Partnership issued to Sunstone Hotel
Investors, L.L.C., Sunstone/WB Hotel Investors IV, LLC, WB Hotel Investors, LLC and Sunstone/WB Manhattan Beach, LLC (collectively, the “Contributing Entities”) in connection with the transactions contemplated by the Structuring and
Contribution Agreement dated as of July 2, 2004, by and among the Operating Partnership, the Company, the Contributing Entities and Alter SHP, LLC (the “Formation and Structuring Transactions”)). 
  
 (j) Registration Rights. Except as disclosed in the Company’s
definitive Proxy Statement for the 2005 Annual Meeting of Stockholders filed with the Commission on April 8, 2005 under “Certain Relationships and Related Transactions” or on Schedule 2(j) hereto, there are no contracts, agreements or
understandings between the Company and any person granting such person the right to require the Company to file a registration statement under the Securities Act with respect to any securities of the Company and there are no contracts, agreements or
understandings between the Company and any person granting such person the right to require the Company to include such securities with any shares of Common Stock registered pursuant to a registration statement filed by the Company. 
  
 (k) No Violations. Neither the Company nor any of its Significant
Subsidiaries is in (i) violation of its organizational documents, or (ii) default (whether with or without the giving of notice or passage of time or both) in the performance or observance of any obligation, agreement, covenant or condition
contained in any lease, indenture, mortgage, deed of trust, loan agreement, operating agreement, property management agreement, franchise agreement or other agreement or instrument to which it is a party or by which it or any of its properties may
be bound, except in the case of clause (ii) to the extent that such default would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. 
  
 (l) SEC Documents. Since October 27, 2004, the Company has timely filed, and as of the Closing the Company will have
timely filed, all reports, schedules, forms, statements and other documents required to be filed by it with the Commission pursuant to the reporting requirements of the Exchange Act (all of the foregoing filed prior to the Closing and after October
27, 2004, and all exhibits included therein and financial 

  

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statements and schedules thereto and documents incorporated by reference therein, being hereinafter referred to herein as the “SEC Documents”). As
of their respective filing dates, the SEC Documents complied with the requirements of the Exchange Act or the Securities Act, as the case may be, and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents
and none of the SEC Documents, at the time they were filed with the Commission, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading. The financial statements and schedules, including the notes thereto, filed with the Commission as a part of the Company’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2004 present fairly in all material respects the combined financial position of the entities presented therein, as of and at the dates indicated and the results of their operations and cash flows for the periods specified. Such
financial statements and schedules have been prepared in conformed with accounting principles generally accepted in the United States applied on a consistent basis through the periods specified, except as may be expressly stated in the related notes
thereto. 
  
 (m) Changes. Except as disclosed in the SEC
Documents or on Schedule 2(k) hereto: 
  
 (i)
since December 31, 2004, there has not occurred any material adverse change, or any development involving a prospective material adverse change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company and
its subsidiaries, taken as a whole, from that set forth in the SEC Documents; and 
  
 (ii) neither the Company nor any Significant Subsidiary has sustained since the date of the latest audited financial statements included
in the SEC Documents any material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than
as set forth or contemplated in the SEC Documents. 
  
 (n)
Properties. 
  
 (i) The Company and its
subsidiaries have good and marketable title in fee simple to, or a valid leasehold interest in, all real property described in the SEC Documents as owned by them (the “Company Properties”), and good and marketable title to all personal
property owned by them that are material to the business of the Company, in each case free and clear of all liens, encumbrances, security interests and defects except such as are described in the SEC Documents or such as do not materially affect the
value of such property and do not materially 

  

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interfere with the use made and proposed to be made of such property by the Company and its subsidiaries; and any Company Property, buildings and equipment
held under lease by the Company and its subsidiaries and described in the SEC Documents are held by them under valid, subsisting and enforceable leases (such leases, the “Company Leases”) with such exceptions as are not material and do not
materially interfere with the use made and proposed to be made of such property and buildings by the Company and its subsidiaries. Neither the Company nor any of its subsidiaries is in default under any of the Company Leases, relating to, or any of
the mortgages or other security documents or other agreements encumbering or otherwise recorded against, the Company Properties that would reasonably be expected to have a Material Adverse Effect, and neither the Company nor any of its subsidiaries
knows of any event, which but for the passage of time or the giving of notice, or both, would constitute a default under any of such documents or agreements that would reasonably be expected to have a Material Adverse Effect. 
  
 (ii) The Company or its subsidiaries have either (i) an
owner’s or leasehold title insurance policy, from a nationally recognized title insurance company licensed to issue such policy, on each Company Property located, as the case may be, by the Company or its subsidiaries, that insures the fee or
leasehold interest, as the case may be, in the Company Properties, which policies include only commercially reasonable exceptions, and with coverage in amounts at least equal to amounts that are generally deemed in the Company’s industry to be
commercially reasonable in the markets where the Company’s Properties are located, or (ii) one or more lender’s title insurance policies insuring the lien of the mortgages encumbering the Company Properties with coverage, in the aggregate,
equal to the maximum aggregate principal amount of indebtedness incurred by the Company or its subsidiaries and secured by the Company Properties. 
  
 (iii) The Company and each of its subsidiaries is in compliance with all “property improvement plans” (“PIPs”)
required by its franchisors, except for such failures to comply that would not reasonably be expected, in the aggregate, to have a Material Adverse Effect. 
  
 (iv) Each of the Company Properties complies with all applicable codes, laws and regulations (including, without limitation, building and
zoning codes, laws and regulations and laws relating to access to the Company Properties), except for such failures to comply that would not, in the aggregate, have a Material Adverse Effect; and neither the Company nor any of its subsidiaries has
knowledge of any pending or threatened condemnation proceeding, zoning change or other proceeding or action that would reasonably be expected to have a Material Adverse Effect. 
  

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 (o) Permits. Each of the Company and its subsidiaries has all necessary licenses, authorizations,
consents and approvals and has made all necessary filings required under any U.S. federal, state or local law, regulation or rule, and has obtained all necessary authorizations, consents and approvals from other persons, required in order to conduct
its business as currently conducted as described in the SEC Documents, except to the extent that any failure to have any such licenses, authorizations, consents or approvals, to make any such filings or to obtain any such authorizations, consents or
approvals would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any of its subsidiaries is in violation of, in default under, or has received any notice regarding a
possible violation, default or revocation of any such license, authorization, consent or approval or any U.S. federal, state, local or foreign law, regulation or rule or any decree, order or judgment applicable to the Company or any subsidiary that
would reasonably be expected to have a Material Adverse Effect. 
  
 (p) Legal Proceedings. There are no legal or governmental proceedings pending or, to the Company’s knowledge, threatened to which the Company or any of its subsidiaries or any of their respective officers or directors is a party
or to which any of the properties of the Company or any of its subsidiaries is subject that were required to be described in the SEC Documents (or would be required to be described in an SEC Document if such document were filed on the date hereof)
and are not so described or any affiliate transactions, off-balance sheet transactions, statutes, regulations, contracts, licenses, agreements, leases or other documents that were required to be described in the SEC Documents or to be filed as
exhibits to the SEC Documents (or would be required to be described in an SEC Document or filed as an exhibit to an SEC Document if such document were filed on the date hereof) that are not so described or filed as required. 
  
 (q) Investment Company Act. Neither the Company nor any of its
subsidiaries is, and after giving effect to the issuance and sale of the Shares and the receipt of the proceeds therefor, neither the Company nor any of its subsidiaries will be, required to register as an “investment company” as such term
is defined in the Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder (the “Investment Company Act”). 
  
 (r) Litigation. There are no actions, suits, proceedings, inquiries or investigations pending, or to the Company’s knowledge, threatened
against the Company or any of its subsidiaries or any of their respective officers or directors or to which the properties, assets or rights of any of such entity is subject, at law or in equity, before or by any federal, state, local or foreign
governmental or regulatory commission, board, body, authority, arbitral panel or agency which would reasonably be expected to result in a judgment, decree, award or order having a Material Adverse Effect, or an adverse effect on the consummation of
the transactions contemplated by this Agreement or the Escrow Agreement. 
  

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 (s) Environmental Matters. 
  
 (i) Each of the Company and its subsidiaries (i) is in compliance with any and all applicable foreign,
federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) has received all
permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) is in compliance with all terms and conditions of any such permit, license or approval, except where such
noncompliance with Environmental Laws, failure to receive required permits, licenses or other approvals or failure to comply with the terms and conditions of such permits, licenses or approvals would not, singly or in the aggregate, reasonably be
expected to have a Material Adverse Effect. 
  
 (ii) There are no costs or liabilities associated with Environmental Laws (including, without limitation, any capital or operating expenditures required for clean up, closure of properties or compliance with Environmental Laws or any
permit, license or approval, any related constraints on operating activities and any potential liabilities to third parties) which would, singly or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
  
 (iii) Except as otherwise disclosed in the SEC Documents or
in Schedule 2(q)(iii) hereto and except to an extent that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect: (i) the Company has not received any notice of, and has no knowledge of, any
occurrence or circumstance which, with notice or passage of time or both, would give rise to a claim under or pursuant to any U.S. federal, state or local environmental statute or regulation or under common law, pertaining to Hazardous Materials (as
hereinafter defined) on or originating from any of the Company Property or arising out of the conduct of the Company, including without limitation a claim under or pursuant to any Environmental Statute (as hereinafter defined); and (ii) neither the
Company Property is included nor, to the Company’s knowledge, is proposed for inclusion on the National Priorities List issued pursuant to CERCLA (as hereinafter defined) by United States Environmental Protection Agency or, to the
Company’s knowledge, proposed for inclusion on any similar list or inventory issued pursuant to any other Environmental Statute or issued by any other Governmental Authority (as hereinafter defined). 
  
 As used herein, “Hazardous Materials” shall
include, without limitation, any flammable explosives, radioactive materials, hazardous materials, hazardous wastes, toxic substances, or related materials, asbestos or any hazardous material as defined by any U.S. federal, state or local
environmental law, ordinance, rule or regulation including without limitation the Comprehensive Environmental 

  

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Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Sections 9601-9675 (“CERCLA”), the Hazardous Materials Transportation Act,
as amended, 49 U.S.C. Sections 1801-1819, the Resource Conservation and Recovery Act, as amended, 42 U.S.C. Sections 6901-6992K, the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Sections 11001-11050, the Toxic Substances
Control Act, 15 U.S.C. Sections 2601-2671, the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. Sections 136-136y, the Clean Air Act, 42 U.S.C. Sections 7401-7642, the Clean Water Act (Federal Water Pollution Control Act), 33 U.S.C.
Sections 1251-1387, the Safe Drinking Water Act, 42 U.S.C. Sections 300f-330j-26, and the Occupational Safety and Health Act, 29 U.S.C. Sections 651-678, as any of the above statutes may be amended from time to time, and in the regulations
promulgated pursuant to each of the foregoing (individually, an “Environmental Statute”) or by any federal, state or local governmental authority having or claiming jurisdiction over the Company Properties and other assets described in the
Prospectus (a “Governmental Authority”). 
  
 (t)
Intellectual Property. The Company and its subsidiaries own or possess, or can acquire on reasonable terms, all material licenses, inventions, copyrights, know-how (including trade secrets and other confidential information, systems or
procedures), trademarks, service marks and trade names currently employed by them in connection with the business now operated by them, except such as the failure to own, possess or be able to acquire on reasonable terms would not reasonably be
expected to have a Material Adverse Effect, and neither the Company nor any of its subsidiaries has received any notice of infringement of or conflict with asserted rights of others with respect to any of the foregoing which, singly or in the
aggregate, would reasonably be expected to have a Material Adverse Effect. 
  
 (u) Labor Matters. No material labor dispute with the employees of the Company or any of its subsidiaries exists, or, to the knowledge of the Company, is imminent; and the Company is not aware of any existing,
threatened or imminent labor disturbance by the employees of any of its principal suppliers or contractors which would reasonably be expected to have a Material Adverse Effect. 
  
 (v) Insurance. The Company and its subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as the Company believes are prudent and customary in the businesses in which they are engaged, and neither the Company nor any of its subsidiaries has any reason to believe that it will not be able
to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not reasonably be expected to have a Material Adverse
Effect, except as described in the SEC Documents. 
  

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 (w) Internal Controls. The Company and each of its subsidiaries maintain a system of internal
controls over financial reporting sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization;
and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
  
 (x) ERISA. The Company does not have, and does not anticipate incurring, any liabilities under the Employee
Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder (“ERISA”), or Section 4975 of the Code. The assets of the Company and its subsidiaries do not constitute “plan
assets” of an ERISA regulated employee benefit plan. 
  
 (y)
REIT Status. The Company has, since its inception been organized and operated, and as of the Closing, will continue to be organized and operated, in a manner so as to qualify as a REIT under the Code. 
  
 (z) Taxes. The Company and each of its subsidiaries have accurately
prepared and timely filed all federal, state and other tax returns and extensions (“Returns”) that are required to be filed by it and have paid or made provision for the payment of all taxes, assessments, governmental or other similar
charges; all such Returns are true, correct and complete in all material respects; and all federal, state, county, local or foreign taxes, charges, fees, levies, fines, penalties or other assessments, including all net income, gross income, sales
and use, ad valorem, transfer, gains, profits, excise, franchise, real and personal property, gross receipts, capital stock, disability, employment, payroll, license, estimated, stamp, custom duties, severance or withholding taxes or charges imposed
by any Governmental Authority (including any interest and penalties (civil or criminal) on or additions to any such taxes and any expenses incurred in connection with the determination, settlement or litigation of any tax liability), in each case,
to the extent material (“Taxes”), shown in such Returns or on assessments received by the Company or any of its subsidiaries or otherwise due and payable or claimed to be due and payable by any Governmental Authority, have been paid,
except for any such tax, charge, fee, levy, fine, penalty or other assessment that (i) is currently being contested in good faith, or (ii) would not have, or reasonably be expected to have, a Material Adverse Effect. Neither the Company nor any of
its subsidiaries has requested any extension of time within which to file any Return, which Return has not since been filed. Neither the Company nor any of its subsidiaries has executed any outstanding waivers or comparable consents regarding the
application of the statute of limitations with respect to any Taxes or Returns. No audits or other administrative proceedings or court proceedings are presently pending nor threatened against the Company or any of its subsidiaries with regard to any
Taxes or Returns of the 

  

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Company or any of its subsidiaries, and no taxing authority has notified the Company or any of its subsidiaries in writing that it intends to investigate its
Tax affairs. 
  
 (aa) Transfer Taxes. All stock transfer or
other taxes (other than income taxes) which are required to be paid in connection with the sale and transfer of the Shares being sold to the Purchaser hereunder have been or will be fully paid or provided for by the Company and all laws imposing
such taxes have been or will be fully complied with. 
  
 (bb)
No Manipulation of Stock. The Company has not taken and will not take, directly or indirectly, any action designed to or that might reasonably be expected to cause or result in the stabilization or manipulation of the price of the Common
Stock or any other security of the Company to facilitate the sale or resale of the Shares. 
  
 (cc) Certain Relationships. No relationship, direct or indirect, exists between or among the Company, on the one hand, and the directors, officers, stockholders, customers or suppliers of the Company, on the
other hand, which is required pursuant to the Exchange Act or the Securities Act and the rules and regulations promulgated thereunder to be described in the SEC Documents which is not so described. 
  
 (dd) Use of Proceeds. The Company will apply the net proceeds received
from the sale of the Shares to the CTF Acquisition pursuant to the terms of the CTF Acquisition Agreement or the purchase of shares of Common Stock or Common Units in the Operating Partnership from the Contributing Entities. 
  
 (ee) Brokers. There is no broker, investment banker, financial
advisor, finder or other person which has been retained by or is authorized to act on behalf of the Company who might be entitled to any fee or commission for which the Purchaser will be liable in connection with the execution of this Agreement or
the transactions contemplated hereby. 
  
 3. Representation and Warranties of
the Purchaser. 
  
 The Purchaser hereby represents and
warrants to the Company as follows: 
  
 (a) Authority;
Validity. The Purchaser has the requisite power and authority (corporate or otherwise) to execute, deliver and perform all of its obligations under this Agreement, the Escrow Agreement and the Registration Rights Agreement and to consummate the
transactions contemplated herein and therein. The Purchaser has taken all necessary action, corporate or otherwise, in order to execute, deliver and perform all of its obligations under this Agreement, the Escrow Agreement and the Registration
Rights Agreement and to consummate the transactions contemplated herein and therein. Each of this Agreement, the Escrow Agreement and the Registration Rights Agreement has been 

  

 13 

 
duly executed and delivered by the Purchaser and constitutes a legal, valid and binding agreement of the Purchaser, enforceable against the Purchaser in
accordance with its respective terms, subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles and except as rights
to indemnity and contribution contained in the Registration Rights Agreement may be limited by state or federal securities laws or the public policy underlying such laws. 
  
 (b) No Conflicts. Neither the execution and delivery of this Agreement, the Escrow Agreement or the Registration
Rights Agreement by the Purchaser, nor the consummation by the Purchaser of the transactions contemplated hereby or thereby, including the issuance and sale of the Shares, nor the compliance by the Purchaser with all of the provisions of this
Agreement, the Escrow Agreement or the Registration Rights Agreement and all other transactions herein and therein contemplated by the Purchaser, does or will: (i) conflict with, or result in any breach of, or constitute a default under nor
constitute any event which (with notice, lapse of time, or both) would constitute a breach of or default under (A) any provisions of the charter or bylaws or other organizational documents of the Purchaser, (B) any provision of any license, lease,
indenture, mortgage, deed of trust, loan, credit, operating agreement, property management agreement or other agreement or instrument to which the Purchaser is a party or by which its properties or assets may be bound or affected, (C) any law or
regulation binding upon or applicable to the Purchaser or any of its properties or assets or (D) any decree, judgment or order applicable to the Purchaser; or (ii) result in the creation or imposition of any lien, charge, claim or encumbrance upon
any property or assets of the Purchaser. 
  
 (c) Consents,
etc. Assuming the truth and accuracy of the Company’s representation and warranty in the last sentence of Section 2(e) of this Agreement, no approval, consent, compliance, exemption, authorization, or other action by, or notice to, or
filing with, any governmental authority or agency or any securities exchange or any other person or entity is necessary or required in connection with the execution and delivery of this Agreement, the Escrow Agreement and the Registration Rights
Agreement by the Purchaser or the consummation by the Purchaser of the transactions contemplated hereby or thereby or the enforcement hereof or thereof against the Company. 
  
 (d) Accredited Investor; Purchase for Investment. The Purchaser is an “accredited investor” as such term is
defined in Regulation D under the Securities Act, and the Purchaser is purchasing the shares of Common Stock for the Purchaser’s own account and not with a view to the distribution thereof. The Purchaser understands that the shares of Common
Stock being sold pursuant to this Agreement have not been registered under the Securities Act and that they may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption or exclusion from the registration
requirement of the Securities Act is available. 
  

 14 

 (e) Investment Experience. The Purchaser acknowledges that it is able to fend for itself, can bear
the economic risk of its investment and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the shares of Common Stock. The Purchaser acknowledges that the
Company has afforded the Purchaser the opportunity to discuss the investment in the shares of Common Stock and to receive documents and other information and ask questions concerning the condition (financial or otherwise), business, properties,
assets, results of operations and prospects of the Company and its subsidiaries. 
  
 (f) Common Stock. The Purchaser does not own or have the right to acquire any shares of Common Stock other than the Shares that are being purchased pursuant to this Agreement. 
  
 (g) Brokers. There is no broker, investment banker, financial advisor,
finder or other person which has been retained by or is authorized to act on behalf of the Purchaser who might be entitled to any fee or commission for which the Company will be liable in connection with the execution of this Agreement or the
transactions contemplated hereby. 
  
 (h) Other Financing.
The Purchaser acknowledges that the Company may issue other equity securities (including Common Stock, preferred stock or securities convertible into such stock) or incur debt financing in connection with the CTF Acquisition. 
  
 4. Covenants. 
  
 (a) Covenants of the Company. 
  
 (i) The Company agrees to use its best efforts to have the Common Stock sold pursuant to this Agreement
approved for listing on the New York Stock Exchange as promptly as practicable following the Closing, in any event no later than 30 days after the Closing Date. 
  
 (ii) The Company agrees to use the proceeds from the sale of the Shares for the CTF Acquisition pursuant to
the terms of the Acquisition Agreement or the purchase of shares of Common Stock or Common Units in the Operating Partnership from the Contributing Entities. 
  

(iii) In the event that the Company intends to take any action that would cause the Shares to represent at any time (the
“Threshold Time”) more than 9.8% (the “Threshold Amount”) of the Company’s outstanding shares of Common Stock, the Company agrees that prior to taking such action it will: (i) promptly offer to 

  

 15 

 
purchase from the Purchaser no later than one business day prior to the Threshold Time that number of shares of Common Stock equal to the number of Shares
that exceed the Threshold Amount; and (ii) if Purchaser does not elect to have its shares repurchased pursuant to clause (i) of this sentence, to designate Purchaser as an “Excepted Holder” (as such term is defined in the Company’s
charter) with respect to the Shares. The per share purchase price for any shares to be purchased by the Company pursuant to clause (i) of the preceding sentence shall be equal to the closing price for shares of Common Stock on the date of such
offer. 
  
 (b) Covenant of the Purchaser. Purchaser agrees
not to sell any Shares purchased pursuant to this Agreement before the later of (i) the date that is 30 days after the Closing Date or (ii) the expiration of any lockup or standstill agreement to which the Company is a party as a result of any
offering of the Company’s equity securities (Common Stock, preferred stock or securities convertible into such stock) used to finance the CTF Acquisition, provided that, notwithstanding the foregoing, this clause (ii) shall not prohibit the
Purchaser from selling any Shares on or after October 1, 2005. 
  
 (c) Subsequent Offerings. In the event that the Company shall offer to sell Common Stock prior to the consummation of the CTF Acquisition (a “Subsequent Offering”), the Company shall offer to sell Purchaser Common Stock up
to such amount as would permit the Purchaser’s percentage ownership of the outstanding shares of Common Stock to equal the Purchaser’s percentage ownership of the outstanding shares of Common Stock immediately following the Closing
hereunder at a purchase price per share of 95% of the average daily closing price for the 10 business days immediately preceding the closing of such offering and otherwise on the same terms of such offering; provided, however, that the
offering of any securities convertible into, or exchangeable for, Common Stock shall not be a Subsequent Offering for purposes of this Section 4(c). The Company shall notify Purchaser of a Subsequent Offering no later than ten days prior to
consummation of such Subsequent Offering and Purchaser will notify the Company whether it intends to participate in such Subsequent Offering within 5 days of receiving such notice. 
  
 (d) Except as contemplated by Section 4(a)(iii), from and after the consummation of the CTF Acquisition, the Company will
not disclose any material, non-public information to the Purchaser. 
  
 (e) Further Assurances. At any time and from time to time, the Company and the Purchaser agree, subject to the terms and conditions of this Agreement, to take such actions and to execute and deliver such documents as such other party
may reasonably request for the purpose of carrying out the intent of this Agreement. 
  

 16 

 5. Legend. 
  
 All certificates for shares of the Common Stock issued to the Purchaser pursuant to this Agreement shall bear a legend substantially in the form set forth
below: 
  
 THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN
EXEMPTION FROM REGISTRATION AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES. 
  
 6. Expenses. 
  
 The Company and the Purchaser each shall pay their respective expenses incurred in connection with the negotiation and performance of this Agreement,
including all fees and disbursements of counsel. 
  
 7. Miscellaneous.

  
 (a) Notices. All notices and other communications
related to this Agreement shall be in writing and shall be given or made (and shall be deemed to have been given or made upon receipt) by delivery in person, by overnight courier service (such as Federal Express), by facsimile or email (which is
confirmed) or by mail to the parties at the following addresses (or at such other address for a party as shall be specified by like notice): 
  
 if to the Company, to: 
  
 Sunstone Hotel Investors, Inc. 
 903 Calle
Amanecer, Suite 100 
 San Clemente, California 92673 
 Attention: Jon D. Kline 
 Facsimile: 949-369-3179 
 Email: jkline@sunstonehotels.com 
  

 17 

 with a copy to (which shall not constitute notice): 
  
 Sullivan & Cromwell LLP 
 1888 Century Park East 
 Los Angeles, California 90067 
 Attention: Alison S. Ressler or Steven B. Stokdyk 
 Facsimile: 310-712-8800 
 Email: resslera@sullcrom.com or stokdyks@sullcrom.com 
  
 if to Purchaser, to: 
  
 GIC Real Estate, Inc. 
 156 West 56th, Suite 1900 
 New York, NY 10010 
 Attention: Adam Gallistel 
 Facsimile No.: 212-468-1940 
 Email:
agallistel@gicre.com 
  
 with copies to (which shall not constitute notice):

  
 GIC Real Estate, Inc. 
 One Bush Street, Suite 1100 
 San Francisco,
CA 94104 
 Attention: Joan Atwood 
 Facsimile: 415-229-1812 
 Email: jatwood@gicre.com 
  
 168 Robinson Road 
 #37-01 Capital Tower 
 Singapore 068912 
 Attention: Company Secretary 
 Facsimile: 65-6889-6878 
 Email: limyokepeng@gic.com.sg 
  
 Skadden, Arps, Slate, Meagher & Flom LLP 
 333 West Wacker Drive 
 Chicago, Illinois 60606 
 Attention: Gary P. Cullen 
 Facsimile: 312-407-0411 
 Email: gcullen@skadden.com 
  
 (b) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Purchaser may transfer the Shares and assign its rights and obligations under this Agreement, including to affiliates of Government of Singapore Investment Corporation (Realty) Pte Ltd., without the consent of the Company. 

 

 18 

 (c) Entire Agreement. This Agreement constitutes the entire agreement among the parties with
respect to the subject matter hereof, and supersedes all prior agreements and understandings, oral or written, with respect to such matters. 
  
 (d) Amendment; Waiver. No provision of this Agreement may be waived or amended except in writing, and no waiver with respect to any provision of
this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provision. 
  
 (e) Severability. In case any provision in this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby. 
  
 (f) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAWS PRINCIPLES. 
  
 (g) Consent to Jurisdiction; Service of Process. Any legal suit,
action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby (“Related Proceedings”) may be instituted in the federal courts of the United States of America located in the State of New York or
the courts of the State of New York in each case located in New York County (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to the
enforcement of a judgment of any such court (a “Related Judgment”), as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. Service of any process, summons, notice or document by mail to such
party’s address set forth above shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action
or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient
forum. 
  
 (h) Time of the Essence. With regard to all date
and time periods set forth or referred to in this Agreement, time is of the essence. 
  
 (i) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement
may be executed at different times and shall be effective upon the execution of it by both parties. 
  
 [Signature Page Follows] 
  

 19 

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

  

			
	 SUNSTONE HOTEL INVESTORS, INC.

		
	 By:
	 	 /s/ JON D. KLINE

	 	 	 Name: Jon D. Kline

	 	 	 Title: Executive Vice President

  

			
	 BIP REIT PRIVATE LIMITED

		
	 By:
	 	 /s/ HOWARD MARGOLIS

	 	 	 Name: Howard Margolis

	 	 	 Title: Authorized Signatory

  
 [Signature Page
to Stock Purchase Agreement] 
  

 20 

  
 Schedule 2(a) 
  
 LIST OF COMPANY GOOD STANDING JURISDICTIONS 
  

					
	 Name of Entity

	 	 Jurisdiction of 
Organization or Formation

	 	 Jurisdiction of 
Foreign Qualification

	Sunstone Hotel Investors, Inc.	 	Maryland	 	California

  

 21 

  
 Schedule 2(b) 
  
 LIST OF SIGNIFICANT SUBSIDIARY GOOD STANDING JURISDICTIONS 

 

					
	 Name of Entity

	 	 Jurisdiction of
Organization or Formation

	 	 Jurisdiction of
Foreign Qualification

	 Sunstone Hotel Partnership, LLC
	 	Delaware	 	 Arizona
 California
 Colorado
 Georgia
 Idaho
 Illinois
 Michigan
 Minnesota
 New Jersey
 New
Mexico
 New York
 Oregon

Pennsylvania
 Texas
 Utah
 Virginia
 Washington

			
	 Sunstone Hotel TRS Lessee, Inc.
	 	Delaware	 	 Arizona
 California
 Colorado
 Georgia
 Idaho
 Illinois
 Michigan
 Minnesota
 New Jersey
 New
Mexico
 New York
 Oregon

Pennsylvania
 Texas
 Utah
 Virginia
 Washington

			
	 Buy Efficient, L.L.C.
	 	Delaware	 	None

  

 22 

  
 Schedule 2(j) 
  
 REGISTRATION RIGHTS 
  
 Registration Rights Agreement between the Company and Security Capital Preferred Growth
Incorporated, dated as of April 27, 2005. 
  

 23 

  
 Section 2(q)(iii) 

 
 ENVIRONMENTAL MATTERS 
  
 Two 20,000-gallon heating oil underground storage tanks (“USTs”) and one
1,500-gallon heating oil UST at the Westchester Renaissance Hotel are scheduled to be replaced by two 10,000-gallon USTs in May or June, 2005. In April 2005, the two 20,000-gallon USTs were removed under oversight from the Westchester County
Department of Health, Office of Environmental Health Risk Control, at which time petroleum hydrocarbon-impacted soil and groundwater was observed. The 1,500-gallon UST has not yet been removed. 
  

 24 

  
 Exhibit A 

 
 Acquisition Agreement 
  

 25 

  
 Exhibit B 

 
 Escrow Agreement 
  

 26 

  
 Exhibit C 

 
 Registration Rights Agreement 
  

 27 

  
 Exhibit D 

 
 Opinion of Counsel 
  

 28Registration Rights Agreement Dated April 27, 2005

 EXHIBIT 10.3 
 EXECUTION COPY 
  
 REGISTRATION
RIGHTS AGREEMENT 
  
 This REGISTRATION RIGHTS AGREEMENT (this
“Agreement”), is made and entered into as of April 27, 2005, between Sunstone Hotel Investors, Inc., a Maryland corporation (the “Company”) and BIP REIT Private Limited, a Singapore corporation (together with its
successors and assigns, the “Investor”). 
  
 WHEREAS, the Company and the Investor have entered into a Stock Purchase Agreement, dated as of April 27, 2005, pursuant to which the Investor agreed to purchase common stock of the Company (the “Stock Purchase Agreement”); and

  
 WHEREAS, the Company desires to provide the Investor with
certain registration rights with respect to the common stock purchased pursuant to the Stock Purchase Agreement. 
  
 NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows: 
  
 1. DEFINITIONS. 
  
 As used in this Agreement, the following terms shall have the following respective meanings: 
  
 “Affiliate”: with regard to a Person, a Person that controls, is controlled by, or is under common control
with, such original Person. For purposes of this definition, “control” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise; and the terms “affiliated,” “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Closing Price”: the reported last sale price of the Company’s common stock on the New York Stock
Exchange Composite Tape. 
  
 “Commission”: the
Securities and Exchange Commission or any other applicable Federal agency at the time administering the Securities Act. 
  
 “Company”: as defined in the preamble, and shall include, where the context requires any Person into which the Company is merged or with
which the Company is consolidated. 
  
 “Demand
Registration”: an effective registration pursuant to a request made by the Investor pursuant to Section 2.1; provided, however, that a registration shall not count as a Demand Registration unless the Investor is able to register at least
85% of the Shares requested to be included in such registration. 
  
 “Exchange Act”: the Securities Exchange Act of 1934, as amended. 
  
 “Overhang Risk”: a substantial risk that the sale of some or all of the Shares sought to be sold will substantially reduce the proceeds or price per Share to be derived from the sale. 
  

 “Person”: an individual, partnership, corporation, company (including a limited
liability company), trust or unincorporated organization, or a government or agency or political subdivision thereof. 
  
 “Resale Rules”: as defined in Section 3.3. 
  
 “Securities Act”: the Securities Act of 1933, as amended. 
  
 “Shares”: the shares of common stock of the Company purchased by the Investor pursuant to the Stock
Purchase Agreement, and any other securities that subsequently may be issued or issuable by the Company as a result of a stock split or dividend or other similar transaction involving the Shares and any securities into which the Shares may
thereafter be changed or exchanged as a result of the reincorporation of the Company or merger, consolidation, recapitalization or other similar transaction. 
  
 “Shelf Registration”: an effective registration under Rule 415 of the Securities Act pursuant to Section 2.3. 
  
 “Violation”: as defined in Section 3.2(a). 
  
 2. REGISTRATION RIGHTS. 
  
 2.1 Demand Registration. During the period from and after the later of: (i) the date that is 30 days after the
Closing Date under the Stock Purchase Agreement or (ii) the expiration of any lockup or standstill agreement to which the Company is a party as a result of any offering of the Company’s equity securities (Common Stock, preferred stock or
securities convertible into such stock) used to finance the CTF Acquisition (as defined in the Stock Purchase Agreement) (provided that, notwithstanding the foregoing, this clause (ii) shall not prohibit the Purchaser from exercising its rights
under this section 2.1 on or after October 1, 2005) and until October 26, 2005 (and for such additional period during which the Company fails to file or maintain a Shelf Registration pursuant to Section 2.3), the Investor may request the Company to
file a registration statement to register the resale of the Investor’s Shares pursuant to an underwritten offering. The Investor shall be entitled to one Demand Registration. The Company’s obligations in this Section 2.1 are subject to
Section 2.4. 
  
 2.2 Option to Acquire. In the event that
the Company has received a request for a Demand Registration pursuant to Section 2.1, the Company shall have the option, for a period of 30 days from the date of the request, to acquire all of the Shares sought to be included in the Demand
Registration at a per share price equal to the average Closing Price of the Shares during the 20-day period ending 5 days prior to receipt of the request. The Investor shall have the absolute right to withdraw its request for a Demand Registration
at any time prior to the later of (i) 10 days after the date of the request and (ii) the receipt by it of the exercise by the Company of its option, in which case the option relating to such request shall terminate. In the event that the Company
elects not to purchase all of the Shares covered by the request, the Company shall proceed with the registration of the Shares pursuant to this Article 2. Payment for the shares and delivery of the certificates shall occur at the offices of the
Company on the third business day after the exercise of the option. 
  

 2 

 2.3 Shelf Registration. Promptly after October 26, 2005, but in no event later than 30 days
thereafter, the Company shall file a registration statement to register the resale of the Investor’s Shares pursuant to Rule 415 under the Securities Act. Following the effectiveness of the registration statement, the Investor shall be
entitled, upon at least 30 days’ (in the case of an underwritten offering) or 2 business days’ (in all other cases) prior written notice to the Company, to sell such number of Shares as are then registered pursuant to such registration
statement. The Investor shall also give the Company prompt written notice of the consummation of such sale. The Investor shall not have the right to cause the Company to register its Shares under this Section 2.3 after April 25, 2006 if the number
of Shares requested to be so registered may be sold pursuant to the Resale Rules. The Company’s obligation to maintain the effectiveness of such registration statement shall terminate at such time as the Investor’s Shares are freely
tradeable pursuant to the Resale Rules. The Company’s obligations in this Section 2.3 are subject to Section 2.4. 
  
 2.4 Company’s Ability to Postpone. The Company shall have the right to postpone the filing or effectiveness of a registration statement under
Section 2.1 and 2.3 and each proposed sale of Shares by the Investor under an effective registration statement, for a reasonable period of time (not exceeding 90 days) (the “Blackout Period”) if the Company furnishes the Investor with a
certificate signed by the Chief Executive Officer of the Company stating that the Company’s board of directors (not including directors affiliated with the Investor, if any), in its good faith judgment, has determined that effecting the
registration or sale at such time would adversely affect a material financing, acquisition, disposition of assets or stock, merger or other comparable transaction or would require the Company to make public disclosure of information the public
disclosure of which would have a material adverse effect upon the Company; provided, however, that notwithstanding anything herein to the contrary, the Company shall only be entitled to exercise its rights under this Section 2.4 on two
occasions during any 12-month period; provided further, however, that during any such Blackout Period, the Company shall also delay the filing or effectiveness of any registration statement with respect to any securities of the Company
or any other stockholders of the Company. 
  
 2.5 Registration
Procedures. If and whenever the Company is required by any of the provisions of this Article 2 to effect the registration of any of the Shares under the Securities Act, the Company shall use its best efforts to effect the registration and the
sale of such Shares in accordance with the intended method of disposition thereof, and pursuant thereto the Company shall as expeditiously as possible: 
  
 (a) prepare and, in the case of a Demand Registration, no later than 45 days after a request for a Demand Registration, file with the
Commission a registration statement with respect to such Shares and use its reasonable efforts to cause such registration statement to become effective and remain effective for as long as shall be necessary to complete the distribution of the Shares
so registered; provided, that before filing a registration statement or prospectus or any amendments or supplements thereto, the Company shall furnish to the counsel selected by the Investor copies of all such documents proposed to be filed,
to the extent specifically requested by such counsel, including documents that are to be incorporated by reference into the registration statement, amendment or supplement, which documents shall be subject to the review and reasonable comment of
such counsel; 
  

 3 

 (b) prepare and file with the Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective and to comply with the provisions of the Securities Act with respect to the sale or other disposition of all
Shares covered by such registration statement whenever the Investor shall desire to sell or otherwise dispose of the same; 
  
 (c) furnish to the Investor such numbers of copies of the registration statement, each amendment or supplement thereto, a summary
prospectus or other prospectus, including a preliminary prospectus or any amendment or supplement to any prospectus, in conformity with the requirements of the Securities Act, and such other documents, as the Investor may reasonably request, in
order to facilitate the public sale or other disposition of the Shares covered by such registration statement; 
  
 (d) use its reasonable efforts to register and qualify the Shares covered by such registration statement under such other securities or
blue sky laws of such jurisdictions as the Investor shall reasonably request, and do any and all other acts and things reasonably requested by the Investor to assist it to consummate the public sale or other disposition in such jurisdictions of the
Shares owned by the Investor, except that the Company shall not for any such purpose be required to qualify to do business as a foreign corporation in any jurisdiction wherein it is not so qualified or to file therein any general consent to service
of process; 
  
 (e) otherwise use its reasonable
efforts to comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve months, beginning with the
first fiscal quarter beginning after the effective date of the registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act; 
  
 (f) use its reasonable efforts to list such Shares on any securities exchange or interdealer quotation
system on which the shares of common stock of the Company are then listed, if the listing or quotation of such Shares is then permitted under the rules of such exchange or interdealer quotation system; 
  
 (g) if the Investor intends to dispose of its Shares through
an underwritten public offering, enter into and perform its obligations under an underwriting agreement, in customary and usual form, with the managing underwriter of such underwritten offering, including, without limitation, to obtain an opinion of
counsel to the Company and a “comfort letter” from the independent public accountants to the Company in the usual and customary form for such underwritten offering; 
  
 (h) upon receipt of written notice, pursuant to Section 2.3 hereof, from the Investor of its intention to
sell Shares, notify the Investor of the happening of any event of which it has knowledge as a result of which the prospectus included in the registration statement, as then in effect, contains an untrue statement of a material fact or omits to state
a material fact required to be stated therein or necessary to make the statements 

  

 4 

 
therein not misleading in the light of the circumstances then existing, and, at the request of the Investor (subject to the Company’s ability to
postpone such filing pursuant to Section 2.4 hereof), the Company shall prepare a supplement or amendment to the prospectus so that, as thereafter delivered to the purchasers of such Shares, such prospectus shall not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; provided, that the Investor shall refrain from selling
any Shares until such supplement or amendment to the prospectus has been filed; 
  
 (i) make every reasonable effort to prevent the entry of any order suspending the effectiveness of the registration statement and, in the
event of the issuance of any such stop order, or of any order suspending or preventing the use of any related prospectus or suspending the qualification of any security included in such registration statement for sale in any jurisdiction, the
Company shall use its best efforts promptly to obtain the withdrawal of such order; 
  
 (j) make the Company’s executive officers available for presentations to investors to discuss the affairs of the Company at times
that may be mutually and reasonably agreed upon; and 
  
 (k) upon the request of the Investor, take any and all other actions which may be reasonably necessary to complete the registration and thereafter to complete the distribution of the Shares so registered. 
  
 2.6 Underwritten Offering. 
  
 (a) If the proposed sale by the Investor in a Demand
Registration or Shelf Registration is an underwritten offering, the Investor shall (together with the Company as provided in Section 2.5(g)), enter into an underwriting agreement in customary and usual form with the managing underwriter selected for
such underwriting by the Company. The Investor hereby agrees that it may not participate in any underwritten offering hereunder unless it (i) agrees to sell its Shares on the basis provided in the underwriting agreement and (ii) completes and
executes all questionnaires, powers of attorney and other documents reasonably required under the terms of the underwriting agreement or by the Company. 
  
 (b) If the managing underwriter in an underwritten offering advises that the number of Shares sought to be included in such offering would
create an Overhang Risk, then the number of Shares to be sold by the Investor participating in such offering shall be reduced to the number of Shares recommended by the managing underwriter on a pro rata basis with other shareholders entitled to
participate in such offering. 
  
 (c) The
Investor may not make more than one underwritten offering whether pursuant to a Demand Registration or Shelf Registration. For this purpose, “underwritten offerings” do not include block purchases from the Investor by brokers or dealers
without any marketing efforts by the Company or the Investor. 
  

 5 

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

  

 6 

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

  

 7 

 
respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party
thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the
one hand and of the indemnified party on the other hand in connection with the statements or omissions which resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations. The relative fault of the
indemnifying party and the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. Notwithstanding the foregoing, the amount an Investor shall be
obligated to contribute pursuant to this Section 3.2(d) shall be limited to an amount equal to the proceeds to the Investor of the Shares sold pursuant to the registration statement which gives rise to such obligation to contribute (less the
aggregate amount of any damages which the Investor has otherwise been required to pay in respect of such loss, claim, damage, liability or action or any substantially similar loss, claim, damage, liability or action arising from the sale of such
Shares). 
  
 (e) Survival of Indemnity.
The indemnification provided by this Section 3.2 shall be a continuing right to indemnification and shall survive the registration and sale of any securities by any Person entitled to indemnification hereunder and the expiration or termination of
this Agreement. 
  
 3.3 Rule 144. In order to permit the
Investor to sell the Shares it holds, if it so desires, from time to time pursuant to Rule 144 promulgated by the Commission or any successor to such rule or any other rule or regulation of the Commission that may at any time permit the Investor to
sell its Shares to the public without registration (“Resale Rules”), the Company will: 
  
 (a) comply with all rules and regulations of the Commission applicable in connection with use of the Resale Rules; 
  
 (b) make and keep adequate and current public information
available, as those terms are understood and defined in the Resale Rules, at all times; 
  
 (c) file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the
Exchange Act; 
  
 (d) furnish to the Investor so
long as it owns any Shares, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of the Resale Rules, the Securities Act and the Exchange Act, (ii) a copy of the most recent annual or
quarterly report of the Company and any other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing an Investor of any rule or regulation of the Commission which permits the
selling of any such Shares without registration; and 
  

 8 

 (e) take any action (including cooperating with the Investor to cause the transfer agent
to remove any restrictive legend on certificates evidencing the Shares) as shall be reasonably requested by the Investor or which shall otherwise facilitate the sale of Shares from time to time by the Investor pursuant to the Resale Rules.

  
 3.4 Investor Status and Responsibilities. The Investor
acknowledges the limitations that may be imposed upon the Investor under Section 10 of the Exchange Act and the rules and regulations thereunder in connection with the Investor’s sale or transfer of Shares and agrees to sell or transfer any
such Shares only subject to any such applicable limitations. 
  
 3.5 Piggyback Registration Rights. If the Company proposes to make an underwritten offering of its common stock, the Investor shall be entitled to sell Shares in such offering subject to compliance with Sections 2.6(a) and (b);
provided, however, that if the managing underwriter advises that the number of Shares sought to be included by the Investor in such offering would create an Overhang Risk, the number of Shares to be sold by the Investor will be reduced
on a pro rata basis with other shareholders entitled to participate in such offering to the extent not inconsistent with contractual obligations existing prior to the Closing (as defined in the Stock Purchase Agreement). The Investor may not include
Shares in underwritten offerings pursuant to this Section 3.5 if the Investor owns Shares representing less than 1% of the outstanding shares of Common Stock of the Company. The Company may grant other holders of its shares of common stock the right
to include any or all of such holders’ shares in any registration statement filed on behalf of the Investor, subject in the case of an underwritten offering to there not being an Overhang Risk. The Investor hereby expressly acknowledges that
the Company has granted certain registration rights pursuant to the Registration Rights Agreement, dated as of October 26, 2004, among the Company, Sunstone Hotel Investors, L.L.C., Sunstone/WB Hotel Investors IV, LLC, WB Hotel Investors, LLC and
Sunstone/WB Manhattan Beach, LLC (the “Westbrook Registration Rights Agreement”) and that the Company may use the same registration statement to satisfy its obligations under the Westbrook Registration Rights Agreement and this Agreement.

  
 4. MISCELLANEOUS. 
  
 4.1 Amendment; Termination. This Agreement may be amended, modified or
supplemented but only in writing signed by each of the parties hereto. This Agreement shall terminate when the Investor no longer own any Shares. 
  
 4.2 Notices. Any notice, request, instruction or other document to be given hereunder by a party hereto shall be in writing and shall be deemed to
have been given, (a) when received if given in person or by courier or a courier service, (b) on the date of transmission if sent by facsimile or email (which is confirmed) or (c) three business days after being deposited in the U.S. mail, certified
or registered mail, postage prepaid: 
  
 If to the Company,
addressed as follows: 
  
 903 Calle Amanecer, Suite 100

 San Clemente, California 92673 
 Attention: Jon D. Kline 
 Facsimile No.: (949) 369-3179 
 Email: jkline@sunstonehotels.com 
  

 9 

 with a copy to (which shall not constitute notice): 
  
 Sullivan & Cromwell LLP 
 1888 Century Park East 
 Los Angeles,
California 90067 
 Attention: Alison S. Ressler or Steven B. Stokdyk 
 Facsimile No.: (310) 712-8800 
 Email:
resslera@sullcrom.com or stokdyks@sullcrom.com 
  
 If to the
Investor, addressed as follows: 
  
 GIC Real Estate, Inc.

 156 West 56th, Suite 1900 
 New York, NY 10010 
 Attention: Adam Gallistel 
 Facsimile No.: 212-468-1940 
 Email: agallistel@gicre.com 
  
 with copies to (which shall not constitute notice): 
  
 GIC Real Estate, Inc. 
 One Bush Street, Suite
1100 
 San Francisco, CA 94104 
 Attention: Joan Atwood 
 Facsimile: 415-229-1812 
 Email: jatwood@gicre.com 
  
 168
Robinson Road 
 #37-01 Capital Tower 
 Singapore 068912 
 Attention: Company Secretary 
 Facsimile: 65-6889-6878 
 Email: limyokepeng@gic.com.sg 
  
 Skadden, Arps, Slate, Meagher & Flom LLP 
 333 West Wacker Drive 
 Chicago, Illinois
60606 
 Attention: Gary P. Cullen 
 Facsimile No.: (312) 407-0411 
 Email: gcullen@skadden.com 
  
 or to such other individual or address as a party hereto may designate for itself by notice given as herein
provided. 
  

 10 

 4.3 Waivers. The failure of a party hereto at any time or times to require performance of any
provision hereof shall in no manner affect its right at a later time to enforce the same. No waiver by a party of any condition or of any breach of any term, covenant, representation or warranty contained in this Agreement shall be effective unless
in writing, and no waiver in any one or more instances shall be deemed to be a further or continuing waiver of any such condition or breach in other instances or a waiver of any other condition or breach of any other term, covenant, representation
or warranty. 
  
 4.4 Counterparts. This Agreement may be
executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 4.5 Interpretation. The headings preceding the text of Articles and Sections included in this Agreement are for convenience only and shall not be
deemed part of this Agreement or be given any effect in interpreting this Agreement. The use of the masculine, feminine or neuter gender herein shall not limit any provision of this Agreement. The use of the terms “including” or
“include” shall in all cases herein mean “including, without limitation” or “include, without limitation,” respectively. Underscored references to Articles, Sections or Subsections shall refer to those portions of this
Agreement. 
  
 4.6 Governing Law. THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAWS PRINCIPLES. 
  
 4.7 Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. In
the event that any transferee of the Investor shall acquire Shares in any manner, whether by gift, bequest, purchase, operation of law or otherwise, such transferee shall, without any further writing or action of any kind, be entitled to receive the
benefits of and, if applicable, be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement. 
  
 4.8 No Third Party Beneficiaries. This Agreement is solely for the benefit of the parties hereto and no provision of this Agreement shall be deemed
to confer upon any third parties any remedy, claim, liability, reimbursement, cause of action or other right. 
  
 4.9 Severability. If any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality or enforceability of
the other provisions hereof shall not be affected thereby, and there shall be deemed substituted for the provision at issue a valid, legal and enforceable provision as similar as possible to the provision at issue. 
  
 4.10 Entire Understanding. This Agreement sets forth the entire
agreement and understanding of the parties hereto with respect to the matters set forth herein and supersedes any and all prior agreements, arrangements and understandings among the parties. 
  
 4.11 Specific Performance. Each of the parties acknowledges that the
obligations undertaken by it pursuant to this Agreement are unique and that the other parties will not have an adequate remedy at law if it shall fail to perform any of its obligations hereunder, and each party therefore confirms that the right of
each other party hereto to specific performance of the terms 

  

 11 

 
of this Agreement is essential to protect the rights and interests of such parties. Accordingly, in addition to any other remedies that the parties may have
at law or in equity, each party shall have the right to have all obligations, covenants, agreements and other provisions of this Agreement specifically performed by each other party, and shall have the right to obtain preliminary and permanent
injunctive relief to secure specific performance and to prevent a breach or contemplated breach of this Agreement by each other party. 
  
 4.12 Reorganization. In connection with any merger, consolidation, sale of all or substantially all of the Company’s assets, the Company will
use its best efforts to take such actions, or to cause the other party to such transaction to take such actions, to ensure that the parties hereto have, immediately after consummation of such transaction, substantially the same rights in respect of
such other Person or the Company, as applicable, as they may have immediately prior to consummation of such transaction in respect of the Company under this Agreement. 
  
 *    *    *    *    * 
  

 12 

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

			
	SUNSTONE HOTEL INVESTORS, INC.
		
	By:	 	/s/ JON D. KLINE
	 	 	 Name: Jon D. Kline

	 	 	 Title: Executive Vice President

  

			
	BIP REIT PRIVATE LIMITED
		
	By:	 	 /s/ HOWARD MARGOLIS

	 	 	 Name: Howard Margolis

	 	 	 Title: Authorized Signatory

  
 [Signature Page
to Registration Rights Agreement]

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