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Exhibit 10.6    
    

 
 

DISCOUNT MBS MULTIFAMILY NOTE    
    

	US $75,000,000.00	 	January 13, 2005

        FOR VALUE RECEIVED, the undersigned ("Borrower") jointly and severally (if more than one)
promises to pay to the order of DEUTSCHE BANK BERKSHIRE MORTGAGE, INC., a Delaware corporation, the principal sum of Seventy-Five Million and 00/100 Dollars (US $75,000,000.00),
with interest on the unpaid principal balance at the rates applicable from time to time set forth in this Discount MBS Multifamily Note (the "Note"). 

        1.    Defined Terms.    As used in this Note, (i) the term
"Lender" means the holder of this Note, and (ii) the term "Indebtedness" means the principal of,
interest on, or any other amounts due at any time under, this Note, the Security Instrument (as defined in Paragraph 7), or any other Loan Document, including prepayment premiums, late charges,
default interest, and advances to protect the security of the Security Instrument under Section 12 of the Security Instrument. Event of Default, Key Principal and other capitalized terms used
but not defined in this Note shall have the meanings given to such terms in the Security Instrument. 

        2.    Address for Payment.    All payments due under this Note shall be payable at One Beacon Street,
14th Floor, Boston, Massachusetts 02108, or such other place as may be designated by written notice to Borrower from or on behalf of Lender. 

        3.    Discount Mortgage Backed Security.    (a) The original stated principal amount of this Note shall be
funded by the issuance of a discount mortgage backed security in the face amount of this Note (the "DMBS"). The original stated principal amount of this
Note shall be equal to the sum of (i) the price (the "Price") of the initial DMBS and (ii) the discount (the
"Discount") of the initial DMBS. The Price is equal to the proceeds of the sale of the DMBS and the Discount is an amount equal to the difference
between (i) the face amount of the DMBS and (ii) the Price of the DMBS. Except as provided in Paragraph 4(a), the proceeds made available by Lender to Borrower shall equal the
Price of the DMBS. Subject to the last sentence of Paragraph 12(b)(1), each DMBS shall be issued for a three month period. The issuance date for each DMBS shall be the first day of a month and
the maturity date for each DMBS shall be the first day of the month following such three month period. For example, the maturity date for a DMBS issued on December 1 is March 1.
Provided, however, that Borrower may request the issuance of a DMBS with a maturity date shorter or longer than three months (but in no event shorter than one month or longer than nine months) in
accordance with the terms and conditions of said last sentence of Paragraph 12(b)(1). 

        (b)   The
entire unpaid principal of the Note will be due and payable by the Borrower to the Lender on the maturity date of the outstanding DMBS unless, not less than five
(5) Business Days prior to the maturity date of the outstanding DMBS, the Borrower has requested in writing either (i) that the Indebtedness under this Note be refinanced with a new
DMBS, using the Rate Setting Form attached hereto as Schedule D, or (ii) that this Note be converted to a fixed rate note pursuant to the Conversion Agreement (hereinafter defined)
effective on the maturity date of the outstanding DMBS. 

        4.    Payment of Principal and Interest.    Principal and interest on this Note shall be paid as follows: 

        (a)   The
proceeds to be made available by Lender to Borrower on January 14, 2005 (the "Disbursement Date"), shall be
equal to the original stated principal amount of this Note. The issuance date of the initial DMBS is February 1, 2005 (the "Settlement Date"),
with the proceeds of the initial 

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DMBS
to be disbursed on the Settlement Date. The Borrower shall pay interest on the amount disbursed on the Disbursement Date for the period beginning on the Disbursement Date and ending on and
including the Settlement Date, at a rate per annum equal to an interest rate based upon the Lender's cost of borrowing funds; provided that such interest rate shall not exceed the London
Inter-Bank Offered Rate for one month U.S. Dollar-denominated deposits ("LIBOR") plus 125 basis points. 

        (b)   Borrower
shall pay, in immediately available funds, (1) on the Disbursement Date, an amount equal to the sum of (i) the Discount of the initial DMBS,
(ii) one-third (1/3) of the Discount calculated on the initial DMBS, (iii) an amount equal to seventy-six (76) basis points (.76%) times the
outstanding principal amount divided by 12, and (iv) the amount of interest due pursuant to Paragraph 4(a) above, and (2) thereafter, until the Maturity Date, consecutive monthly
payments on the first day of each month beginning March 1, 2005, in an amount equal to the sum of (i) one third (1/3) of the Discount calculated on the then outstanding
DMBS and (ii) an amount equal to seventy-six (76) basis points (.76%) times the outstanding principal amount divided by 12. Payments must be received by Lender not later than
5 p.m. Pacific Time on the date due. Notwithstanding the foregoing provisions of Paragraph 4(b)(2)(i) above and provided that Borrower has made all payments required under
Paragraph 4(d) below, Borrower shall not be obligated to make the monthly payment described in Paragraph 4(b)(2)(i) during the last 3 months prior to the Maturity Date. 

        (c)   Not
less than 20 days prior to the maturity date of each DMBS, Lender shall notify Borrower (in the manner specified in the Security Instrument (defined below)
for giving notices) that the outstanding DMBS is scheduled to mature on its maturity date and offer Borrower the opportunity to have a new DMBS issued on such maturity date. If Borrower elects to have
the Indebtedness refinanced with a new DMBS, not less than three (3) Business Days prior to the maturity date of the maturing DMBS, Lender shall notify Borrower of the Discount on the new DMBS
to be issued by sending Borrower the Rate Confirmation Form attached hereto as Schedule E. Borrower shall execute and return Schedule E to the Lender not later than one
(1) Business Day prior to the issuance date of the new DMBS. For purposes of this Note, a "Business Day" means any day other than a Saturday,
Sunday or any other day on which Lender is not open for business. 

        (d)   If
the amount of the Discount for the new DMBS to be issued is greater than the Discount for the outstanding DMBS, then not less than two (2) Business Days prior
to the maturity date of the outstanding DMBS the Borrower shall pay to the Lender the aggregate amount of such difference. If the amount of the Discount for the new DMBS is less than the Discount for
the outstanding DMBS, the aggregate amount of such difference shall be credited against the regular monthly installment due on the first day of the month immediately following the issuance date of the
new DMBS. 

        (e)   If
Borrower timely exercises its option to convert the interest rate on this Note to a fixed rate pursuant to the Conversion Agreement dated the same day as this Note
between the Borrower and Lender (the "Conversion Agreement"), Borrower will execute the DMBS Multifamily Note Modification Agreement (the form of which
is attached to the Conversion Agreement as Exhibit A) to reflect the fixed rate established in accordance with the terms of the Conversion Agreement. 

        (f)    Any
remaining principal and all other amounts due under this Note or any of the Loan Documents, if not sooner paid, shall be due and payable on the Maturity Date.
Failure to pay such amounts on the Maturity Date shall result in the immediate imposition of the Default Rate (as defined in Paragraph 10) on such unpaid amounts. 

        5.    Maturity Date:    February 1, 2015, or any earlier date on which the unpaid principal balance of this
Note becomes due and payable by acceleration or otherwise. 

        6.    Application of Payments.    If at any time Lender receives, from Borrower or otherwise, any amount applicable to
the Indebtedness which is less than all amounts due and payable at such time, 

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Lender
may apply that payment to amounts then due and payable in any manner and in any order determined by Lender, in Lender's discretion. Borrower agrees that neither Lender's acceptance of a payment
from Borrower in an amount that is less than all amounts then due and payable nor Lender's application of such payment shall constitute or be deemed to constitute either a waiver of the unpaid amounts
or an accord and satisfaction. 

        7.    Security.    The Indebtedness is secured, among other things, by a Multifamily Mortgage, Assignment of Rents and
Security Agreement dated as of the date of this Note (the "Security Instrument"), and reference is made to the Security Instrument for other rights of
Lender concerning the collateral for the Indebtedness. 

        8.    Acceleration.    If an Event of Default has occurred and is continuing, the entire unpaid principal balance, the
prepayment premium payable under Paragraph 12, if any, and all other amounts payable under this Note and any other Loan Document shall at once become due and payable, at the option of Lender,
without any prior notice to Borrower. Lender may exercise this option to accelerate regardless of any prior forbearance. 

        9.    Late Charge.    If any monthly amount payable under this Note or under the Security Instrument or any other Loan
Document is not received by Lender within five (5) days after Lender has notified Borrower that such amount is due and has not been paid, Borrower shall pay to Lender, immediately and without
demand by Lender, a late charge equal to five percent (5%) of such amount; provided, however, that if
the payment due on the Maturity Date is not received by Lender on the date such payment is due, Borrower shall pay to Lender, immediately and without demand by Lender, a late charge equal to five
percent (5%) of such amount. Borrower acknowledges that its failure to make timely payments will cause Lender to incur additional expenses in servicing and processing the loan evidenced by this Note
(the "Loan"), and that it is extremely difficult and impractical to determine those additional expenses. Borrower agrees that the late charge payable
pursuant to this Paragraph represents a fair and reasonable estimate, taking into account all circumstances existing on the date of this Note, of the additional expenses Lender will incur by reason of
such late payment. The late charge is payable in addition to, and not in lieu of, any interest payable at the Default Rate pursuant to Paragraph 10. 

        10.    Default Rate.    So long as any monthly installment or any other payment due under this Note remains past due
for thirty (30) days or more, or if any payment due on the Maturity Date is not paid on the Maturity Date, interest under this Note shall accrue on the unpaid principal balance from the earlier
of the due date of the first unpaid monthly installment or other payment due, as applicable, at a rate (the "Default Rate") equal to the lesser of
(i) the sum of the rate at which deposits in United States Dollars in amounts approximately equal to the outstanding principal amount and with three-month maturities are offered in immediately
available funds in the London Interbank Market by leading banks in the Eurodollar market as of 11:00 a.m. (London Time), as published daily by Telerate News Service on Telerate page 3750, plus
four hundred (400) basis points (4.00%) as determined by Lender, and (ii) the maximum interest rate which may be collected from Borrower under applicable law. If the Telerate News
Service is no longer available, or is no longer posted through electronic transmission, Lender will choose a new service that provides comparable information and provide notice thereof to Borrower. If
the unpaid principal balance and all other payments required under this Note are not paid in full on the Maturity Date, the unpaid principal balance and all such other required payments shall bear
interest from the Maturity Date at the Default Rate. Borrower also acknowledges that its failure to make timely payments will cause Lender to incur additional expenses in servicing and processing the
Loan, that, during the time that any payment under this Note is delinquent, Lender will incur additional costs and expenses arising from its loss of the use of the money due and from the adverse
impact on Lender's ability to meet its other obligations and to take advantage of other investment opportunities, and that it is extremely difficult and impractical to determine those additional costs
and expenses. Borrower also acknowledges that, during the time that 

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any
payment due under this Note is delinquent, Lender's risk of nonpayment of this Note will be materially increased and Lender is entitled to be compensated for such increased risk. Borrower agrees
that the increase in the rate of interest payable under this Note to the Default Rate represents a fair and reasonable estimate, taking into account all circumstances existing on the date of this
Note, of the additional costs and expenses Lender will incur by reason of the Borrower's delinquent payment and the additional compensation Lender is entitled to receive for the increased risks of
nonpayment associated with a delinquent loan. 

        11.    Limits on Personal Liability.    

        (a)   Except
as otherwise provided in this Paragraph 11, neither Borrower nor its members or non-member manager shall have any personal liability under this
Note, the Security Instrument or any other Loan Document for the repayment of the Indebtedness or for the performance of any other obligations of Borrower under the Loan Documents, and Lender's only
recourse for the satisfaction of the Indebtedness and the performance of such obligations shall be Lender's exercise of its rights and remedies with respect to the Mortgaged Property and any other
collateral held by Lender as security for the Indebtedness. This limitation on Borrower's liability shall not limit or impair Lender's enforcement of its rights against any guarantor of the
Indebtedness or any guarantor of any obligations of Borrower pursuant to a written instrument signed by such guarantor. 

        (b)   Borrower,
but not its members or non-member manager, or their respective partners, members, managers, shareholders, directors, officers, employees, trustees,
beneficiaries, constituents, legal or personal representatives, successors or assigns, shall be personally liable to Lender for the repayment of a portion of the Indebtedness equal to any loss or
damage suffered by Lender as a result of (1) failure of Borrower to pay to Lender upon demand after an Event of Default, all Rents due after the earlier of (i) a declaration of default,
or (ii) the occurrence of an Event of Default, to which Lender is entitled under Section 3(a) of the Security Instrument, and the amount of all security deposits collected by Borrower
from tenants then in residence; (2) failure of Borrower to apply all insurance proceeds and condemnation proceeds as required by the Security Instrument; (3) failure of Borrower to
comply with Section 14(d) or 14(e) of the Security Instrument relating to the delivery of books and records, statements, schedules and reports; (4) fraud or written material
misrepresentation by Borrower or any officer, director, partner, member or employee of Borrower in connection with the application for or creation of the Indebtedness or any request for any action or
consent by Lender; or (5) failure to apply Rents due after the earlier of (i) a declaration of default, or (ii) an Event of Default, first, to the payment of reasonable operating
expenses (other than property management fees that are not currently payable pursuant to the terms of an Assignment of Management Agreement or any other agreement with Lender executed in connection
with the Loan) and then to the Indebtedness payable under this Note, the Security Instrument or any other Loan Document (except that Borrower will not be personally liable (i) to the extent
that Borrower lacks the legal right to direct the disbursement of such sums because of a bankruptcy, receivership or similar judicial proceeding, or (ii) with respect to Rents that are
distributed in any calendar year if Borrower has paid all operating expenses and debt service amounts for that calendar year). 

        (c)   Borrower,
but not its members or non-member manager, or their respective partners, members, directors, officers, employees, trustees, beneficiaries,
constituents, legal or personal representatives, successors or assigns, shall become personally liable to Lender for the repayment of all of the Indebtedness upon the occurrence of any of the
following Events of Default: (1) Borrower's acquisition of any property or operation of any business not permitted by Section 33 of the Security Instrument; or (2) a Transfer that
is an Event of Default under Section 21(a) of the Security Instrument, unless consented to pursuant to Section 21(c) of the Security Instrument. 

        (d)   To
the extent that Borrower has personal liability under this Paragraph 11, Lender may exercise its rights against Borrower personally without regard to whether
Lender has exercised any 

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rights
against the Mortgaged Property or any other security, or pursued any rights against any guarantor, or pursued any other rights available to Lender under this Note, the Security Instrument, any
other Loan Document or applicable law. For purposes of this Paragraph 11, the term "Mortgaged Property" shall not include any funds that
(1) have been applied by Borrower as required or permitted by the Security Instrument prior to the occurrence of an Event of Default, or (2) Borrower was unable to apply as required or
permitted by the Security Instrument because of a bankruptcy, receivership, or similar judicial proceeding. 

        12.    Voluntary and Involuntary Prepayments.    

        (a)   Borrower
may voluntarily prepay all (but not less than all) of the Indebtedness evidenced hereby. 

        (b)   A
prepayment premium shall be payable in connection with any prepayment made under this Note as provided below: 

        (1)   At
any time Borrower may voluntarily prepay all, but not less than all, of the unpaid principal balance of this Note on any DMBS maturity date if Borrower has given
Lender at least thirty (30) days prior notice of its intention to make such prepayment. Such prepayment shall be made by paying (A) the amount of principal being prepaid, (B) all
other sums due Lender at the time of such prepayment, and (C) the prepayment premium calculated pursuant to Schedule A. For all purposes any prepayment received by Lender on any day
other than the maturity date of the then outstanding DMBS shall be deemed to have been received on the maturity date of the then outstanding DMBS. Borrower may request the issuance of a DMBS with a
maturity date shorter or longer than three (3) months (but in no event shorter than one (1) month or longer than nine (9) months) but only to facilitate (A) the scheduling
of a prepayment in connection with the sale of the Mortgaged Property, or (B) the refinancing of the Loan. 

        (2)   Upon
Lender's exercise of any right of acceleration under this Note, Borrower shall pay to Lender, in addition to the entire unpaid principal balance of this Note
outstanding at the time of the acceleration, (A) all other sums due Lender under this Note and the other Loan Documents, and (B) the prepayment premium calculated pursuant to
Schedule A. 

        (3)   Any
application by Lender of any collateral or other security to the repayment of any portion of the unpaid principal balance of this Note prior to the Maturity Date and
in the absence of acceleration shall be deemed to be a partial prepayment by Borrower, requiring the payment to Lender by Borrower of a prepayment premium. The amount of any such partial prepayment
shall be computed so as to provide to Lender a prepayment premium computed pursuant to Schedule A without Borrower having to pay out-of-pocket any additional amounts. 

        (c)   Notwithstanding
the provisions of Paragraph 12(b), no prepayment premium shall be payable with respect to (A) any prepayment made no more than twelve
(12) months before the Maturity Date, or (B) any prepayment occurring as a result of the application of any insurance proceeds or condemnation award under the Security Instrument. 

        (d)   Schedule A
is hereby incorporated by reference into this Note. 

        (e)   Any
required prepayment of less than the unpaid principal balance of this Note shall not extend or postpone the due date of any subsequent payment or change the amount
of such payments, unless Lender agrees otherwise in writing. 

        (f)    Borrower
recognizes that any prepayment of the unpaid principal balance of this Note, whether voluntary or involuntary or resulting from a default by Borrower, will
result in Lender's incurring loss, including reinvestment loss, additional expense and frustration or impairment of Lender's ability to meet its commitments to third parties. Borrower agrees to pay to
Lender upon demand damages for the detriment caused by any prepayment, and agrees that it is extremely difficult 

5

 

and
impractical to ascertain the extent of such damages. Borrower therefore acknowledges and agrees that the formula for calculating prepayment premiums set forth on Schedule A represents a
reasonable estimate of the damages Lender will incur because of a prepayment. 

        (g)   Borrower
further acknowledges that the prepayment premium provisions of this Note are a material part of the consideration for the loan evidenced by this Note, and
acknowledges that the terms of this Note are in other respects more favorable to Borrower as a result of the Borrower's voluntary agreement to the prepayment premium provisions. 

        13.    Costs and Expenses.    Borrower shall pay on demand all expenses and costs, including fees and
out-of-pocket expenses of attorneys and expert witnesses and costs of investigation, incurred by Lender as a result of any default under this Note or in connection with efforts
to collect any amount due under this Note, or to enforce the provisions of any of the other Loan Documents, including those incurred in post-judgment collection efforts and in any
bankruptcy proceeding (including any action for relief from the automatic stay of any bankruptcy proceeding) or judicial or non-judicial foreclosure proceeding. 

        14.    Forbearance.    Any forbearance by Lender in exercising any right or remedy under this Note, the Security
Instrument, or any other Loan Document or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of that or any other right or remedy. The acceptance by Lender of any
payment after the due date of such payment, or in an amount which is less than the required payment, shall not be a waiver of Lender's right to require prompt payment when due of all other payments or
to exercise any right or remedy with respect to any failure to make prompt payment. Enforcement by Lender of any security for Borrower's obligations under this Note shall not constitute an election by
Lender of remedies so as to preclude the exercise of any other right or remedy available to Lender. 

        15.    Waivers.    Presentment, demand, notice of dishonor, protest, notice of acceleration, notice of intent to
demand or accelerate payment or maturity, presentment for payment, notice of nonpayment, grace, and diligence in collecting the Indebtedness are waived by Borrower, Key Principal, and all endorsers
and guarantors of this Note and all other third party obligors. 

        16.    Loan Charges.    If any applicable law limiting the amount of interest or other charges permitted to be
collected from Borrower in connection with the Loan is interpreted so that any interest or other charge provided for in any Loan Document, whether considered separately or together with other charges
provided for in any other Loan Document, violates that law, and Borrower is entitled to the benefit of that law, that interest or charge is hereby reduced to the extent necessary to eliminate that
violation. The amounts, if any, previously paid to Lender in excess of the permitted amounts shall be applied by Lender to reduce the unpaid principal balance of this Note. For the purpose of
determining whether any applicable law limiting the amount of interest or other charges permitted to be collected from Borrower has been violated, all Indebtedness that constitutes interest, as well
as all other charges made in connection with the Indebtedness that constitute interest, shall be deemed to be allocated and spread ratably over the stated term of the Note. Unless otherwise required
by applicable law, such allocation and spreading shall be effected in such a manner that the rate of interest so computed is uniform throughout the stated term of the Note. 

        17.    Commercial Purpose.    Borrower represents that the Indebtedness is being incurred by Borrower solely for the
purpose of carrying on a business or commercial enterprise, and not for personal, family or household purposes. 

        18.    Counting of Days.    Except where otherwise specifically provided, any reference in this Note to a period of
"days" means calendar days, not Business Days. 

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        19.    Governing Law.    The law of the State of Hawaii shall govern this Note. 

        20.    Captions.    The captions of the paragraphs of this Note are for convenience only and shall be disregarded in
construing this Note. 

        21.    Notices.    All notices, demands and other communications required or permitted to be given by Lender to
Borrower pursuant to this Note shall be given in accordance with Section 31 of the Security Instrument. 

        22.    Consent to Jurisdiction and Venue.    Borrower and Key Principal each agrees that any controversy arising under
or in relation to this Note shall be litigated exclusively in the State of Hawaii (the "Property Jurisdiction"). The state and federal courts and
authorities with jurisdiction in the Property Jurisdiction shall have exclusive jurisdiction over all controversies which shall arise under or in relation to this Note. Borrower and Key Principal each
irrevocably consents to service, jurisdiction, and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or
otherwise. 

        23.    WAIVER OF TRIAL BY JURY.    BORROWER, KEY PRINCIPAL AND LENDER EACH (A) AGREES
NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS NOTE OR THE RELATIONSHIP BETWEEN THE PARTIES AS LENDER, KEY PRINCIPAL AND BORROWER THAT IS TRIABLE OF RIGHT BY A JURY AND
(B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH
PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.  

        ATTACHED SCHEDULES. The following Schedules are attached to this Note:

	ý	 	Schedule A	 	Prepayment Premium (required)
	ý	 	Schedule B	 	Modifications to Multifamily Note
	o	 	Schedule C	 	Principal Amortization Schedule
	ý	 	Schedule D	 	DMBS Rate Setting Form
	ý	 	Schedule E	 	DMBS Rate Confirmation Form

        IN WITNESS WHEREOF, Borrower has signed and delivered this Note or has caused this Note to be signed and delivered by its duly authorized
representative. 

	 	 	BORROWER:
	

 	
 	

DEG RESIDENTIAL, LLC, a Delaware limited liability company
	

 	
 	

By:	
 	

Douglas Emmett Realty Advisors, a California corporation, its Manager
	 	 	 	 	By:	 	/s/  JORDAN L. KAPLAN      

	 	 	 	 	Name:	 	Jordan L. Kaplan
	 	 	 	 	Title:	 	Chief Financial Officer
	

 	
 	

68-0599468
 Borrower's Employer ID Number

7

 

PAY
TO THE ORDER OF FANNIE MAE WITHOUT RECOURSE 

DEUTSCHE
BANK BERKSHIRE MORTGAGE, INC.,

a Delaware corporation 

	By:	 	/s/  DENIS G. LEGER      
	 	 
	Name:	 	DENIS G. LEGER	 	 
	Title:	 	OFFICER	 	 
	

By:	
 	

/s/  DONNA B. POTEMBER      
	
 	

 
	Name:	 	DONNA B. POTEMBER	 	 
	Title:	 	OFFICER	 	 
	

Date: January 13, 2005
	

Fannie Mae Commitment Number:            

8

 
 
 

ACKNOWLEDGMENT AND AGREEMENT OF KEY PRINCIPAL TO
  PERSONAL LIABILITY FOR EXCEPTIONS TO NON-RECOURSE LIABILITY    
    

        Key Principal, who has an economic interest in Borrower or who will otherwise obtain a material financial benefit from the Loan, hereby absolutely,
unconditionally and irrevocably agrees to pay to Lender, or its assigns, on demand, all amounts for which Borrower is personally liable under Paragraph 11 of the Discount MBS Multifamily Note
to which this Acknowledgment is attached (the "Note"). The obligations of Key Principal shall survive any foreclosure proceeding, any foreclosure sale,
any delivery of any deed in lieu of foreclosure, and any release of record of the Security Instrument. Lender may pursue its remedies against Key Principal without first exhausting its remedies
against the Borrower or the Mortgaged Property. All capitalized terms used but not defined in this Acknowledgment shall have the meanings given to such terms in the Security Instrument. As used in
this Acknowledgment, the term "Key Principal" (each if more than one) shall mean only those individuals or entities that execute this Acknowledgment. 

        The
obligations of Key Principal shall be performed without demand by Lender and shall be unconditional irrespective of the genuineness, validity, or enforceability of the Note, or any
other Loan
Document, and without regard to any other circumstance that might otherwise constitute a legal or equitable discharge of a surety or a guarantor. Key Principal, for itself only and not in its capacity
as a member of Borrower, hereby waives the benefit of all principles or provisions of law, which are or might be in conflict with the terms of this Acknowledgment, and agrees that Key Principal's
obligations shall not be affected by any circumstances that might otherwise constitute a legal or equitable discharge of a surety or a guarantor. Key Principal, for itself only and not in its capacity
as a member of Borrower, hereby waives the benefits of any right of discharge and all other rights under any and all statutes or other laws relating to guarantors or sureties, to the fullest extent
permitted by law, diligence in collecting the Indebtedness, presentment, demand for payment, protest, all notices with respect to the Note including this Acknowledgment, which may be required by
statute, rule of law or otherwise to preserve Lender's rights against Key Principal under this Acknowledgment, including notice of acceptance, notice of any amendment of the Loan Documents, notice of
the occurrence of any default or Event of Default, notice of intent to accelerate, notice of acceleration, notice of dishonor, notice of foreclosure, notice of protest, notice of the incurring by
Borrower of any obligation or indebtedness and all rights to require Lender to (a) proceed against Borrower, (b) proceed against any general partner of Borrower, (c) proceed
against or exhaust any collateral held by Lender to secure the repayment of the Indebtedness, or (d) if Borrower is a partnership, pursue any other remedy it may have against Borrower, or any
general partner of Borrower. 

        At
any time without notice to Key Principal, and without affecting the liability of Key Principal hereunder, (a) the time for payment of the principal of or interest on the
Indebtedness may be extended or the Indebtedness may be renewed in whole or in part; (b) the time for Borrower's performance of or compliance with any covenant or agreement contained in the
Note, or any other Loan Document, whether presently existing or hereinafter entered into, may be extended or such performance or compliance may be waived; (c) the maturity of the Indebtedness
may be accelerated as provided in the Note or any other Loan Document; (d) the Note or any other Loan Document may be modified or amended by Lender and Borrower in any respect, including an
increase in the principal amount; and (e) any security for the Indebtedness may be modified, exchanged, surrendered or otherwise dealt with or additional security may be pledged or mortgaged
for the Indebtedness. 

        Key
Principal acknowledges that Key Principal has received a copy of the Note and all other Loan Documents. Neither this Acknowledgment nor any of its provisions may be waived, modified,
amended, discharged, or terminated except by an agreement in writing signed by the party against which the discharged, or terminated except by an agreement in writing signed by the party against which
the enforcement of the waiver, modification, amendment, discharge, or termination is sought, and then only to the extent set forth in that agreement. Key Principal agrees to notify Lender (in the
manner for 

9

 

giving
notices provided in Section 31 of the Security Instrument) of any change of Key Principal's address within 10 Business Days after such change of address occurs. Any notices to Key
Principal shall be given in the manner provided in Section 31 of the Security Instrument at the address set forth below or such other address as to which notice of change of address has been
given in accordance with Section 31(b) of the Security Instrument. Key Principal agrees to be bound by Paragraphs 22 and 23 of the Note. 

        Key
Principal's members and non-member manager and their respective direct or indirect partners, members, shareholders, managers, directors, officers, employees, trustees,
beneficiaries, constituents, legal or personal representatives, shall have no personal liability under this Acknowledgment for the performance of any of the obligations of Key Principal under this
Acknowledgment. 

        THIS ACKNOWLEDGMENT IS AN INSTRUMENT SEPARATE FROM, AND NOT A PART OF, THE NOTE. BY SIGNING THIS ACKNOWLEDGMENT, KEY PRINCIPAL DOES NOT INTEND TO BECOME AN
ACCOMMODATION PARTY TO, OR AN ENDORSER OF, THE NOTE.

        IN WITNESS WHEREOF, Key Principal has signed and delivered this Acknowledgment or has caused this Acknowledgment to be signed and
delivered by its duly authorized representative. 

	 	 	KEY PRINCIPAL:
	

 	
 	

DEGA, LLC, a Delaware limited liability company
	

 	
 	

By:	
 	

Douglas Emmett Realty Advisors, a California corporation, its Manager
	

 	
 	

By:	
 	

/s/  JORDAN L. KAPLAN      

	 	 	 	 	Name:	 	Jordan L. Kaplan
	 	 	 	 	Title:	 	Chief Financial Officer
	 	 	 	 	Address:	 	808 Wilshire Boulevard, Suite 200

Santa Monica, California 90401

Attn: Jordan L. Kaplan and William Kamer
	

 	
 	

Employer ID No.: 68-0599465

10

  

 
 

SCHEDULE A    
    
    PREPAYMENT PREMIUM    
    

        Any prepayment premium payable under Paragraph 12 of this Note shall be computed as follows: 

	(a)
	If
the prepayment (voluntary or involuntary) is made at any time prior to the ninth anniversary of the date of this Note (the "Fee Maintenance
Period"), the prepayment premium shall be the product of multiplying:

	(1)
	the
amount of principal being prepaid 

by 

	(2)
	76
basis points 

by 

	(3)
	the
present value factor calculated using the following formula: 

	 	1 - (1 + r)-n
	 	 
	 	r	 	 

[r=    Yield
Rate 

n=    the
number of years, and any fraction thereof, remaining between the Prepayment Date and the expiration of the Fee Maintenance Period.] 

The
"Yield Rate" means the rate, determined as of the Closing Date, on the U.S. Treasury security having a maturity closest to the prepayment date. 

For
purposes of subparagraph(3), the "Prepayment Date" shall be (x) in the case of a voluntary prepayment, the date on which the prepayment is
made, and (y) in any other case, the date on which Lender accelerates the unpaid principal balance of this Note. 

	(b)
	If
Borrower makes a prepayment of this Note or Lender accelerates the unpaid principal balance of this Note during the 12 months immediately preceding the Maturity Date, no
prepayment premium shall be payable. 

	 	 	 	/s/  JK      
 INITIAL(S)

A-1

  

DEG RESIDENTIAL, LLC

MOANALUA HILLSIDE APARTMENTS  

 
 

SCHEDULE B    
    
    MODIFICATIONS TO MULTIFAMILY NOTE    
    

        The following modifications are made to the text of the Note that precedes this Schedule: 

	1.
	A
new Paragraph 4A shall be added as follows: 

 
 
        4A.     Borrower may apply for an increase in the principal amount of the Loan from the first anniversary date of the closing of the
Loan until the Maturity Date, to be
effective as of the issuance date of any new DMBS funding the Indebtedness. Approval of an increased amount of the Loan will be subject to satisfying all of Lender's and Fannie Mae's underwriting
criteria and guidelines applicable to loans of a similar underwriting tier. The guaranty and servicing fee applicable to the increased amount of Loan will equal Fannie Mae's then current best
published rate for loans with 1.10 debt service coverage (variable rate) (1.35 debt service coverage-fixed rate) and a 70% loan to value ratio. The maturity date of the increased amount shall not
extend beyond the Maturity Date. Borrower shall pay all actual, reasonable out-of-pocket costs to third parties, with including, but not limited to reasonable legal fees and
costs. 

	2.
	A
new Paragraph 7A shall be added as follows: 

 
 
        7A.    Interest Rate Hedge.     (a)    The
Initial Hedge.    To protect against fluctuations in interest rates, Borrower shall
make arrangements for a LIBOR (as defined below) based hedge instrument ("Hedge") to be in place and maintained at all times with respect to the Loan.
The Hedge for the initial DMBS shall be a Cap for a period beginning on the Disbursement Date and ending not earlier than the date which is the third anniversary of the date of this Note (the
"Initial Hedge Period"). 

 
 
        (b)    Subsequent Hedges.     Additional Hedges (each, a "Subsequent Hedge") shall be required for the lesser of (i) three
(3) years, or (ii) the remaining term of the Note, upon the expiration of the Cap in place for the Initial Hedge Period. It is the intention of the parties, and a condition of the Note,
that Borrower shall obtain, and shall maintain at all times during the term of the Note, a Hedge in an aggregate notional principal amount equal to the outstanding principal balance of the Note on the
date that the Hedge is purchased, covering the required term of the Note as set forth in this Paragraph 7A. 

 
 
        (c)    Hedge Terms.     Each Hedge which is a Cap shall: 

        (1)   provide
for a notional principal amount equal at all times to the outstanding principal balance of the Note on the date that the Hedge is purchased; 

        (2)   provide
for a notional interest rate equal to the lowest interest rate that would result in a debt service coverage ratio of not less than 1.10 to 1 based on an
underwriting rate equal to 300 basis points over the LIBOR rate at the time of closing plus 76 basis points (the "Hedge Rate"); LIBOR rate is defined as
an interest rate based upon the London Inter-Bank Offered Rate for three (3) month U.S. Dollar-denominated deposits; 

        (3)   require
the counterparty to make interest payments on the notional principal amount at a rate equal to the amount by which Coupon Rate exceeds the Hedge Rate; 

        (4)   require
the counterparty to make such interest payments either to an account pledged to the Lender or directly to the Lender after an Event of Default pursuant to the
Interest Rate Hedge Assignment and Security Agreement; and 

        (5)   be
evidenced, governed and secured on terms and conditions, and pursuant to documentation (the "Hedge Documents"), in
form and content acceptable to Fannie Mae, and with a counterparty (a "Counterparty") approved by Fannie Mae, which currently include Bank of 

B-1

 

America,
Wells Fargo and Wachovia, but may not be approved at the time of any subsequent Hedge. 

 
 
        (d)    Hedge Security Agreement: Delivery of Hedge Payments.     Pursuant to an Interest Rate Hedge Assignment and
Security Agreement, Lender shall be granted an enforceable, perfected, first priority lien on and security
interest in each Hedge and payments due under the Hedge (including scheduled and termination payments) in order to secure Borrower's obligations to Lender under this Note. With respect to each Hedge,
the Interest Rate Hedge Assignment and Security Agreement must be delivered by Borrower to Lender no later than the effective date of the Hedge. 

 
 
        (e)    Termination.     Borrower shall not terminate, transfer or consent to any transfer of any existing Hedge
without Lender's prior written consent as long as Borrower is required to
maintain a Hedge pursuant to the Note; provided, however, that if, and at such time as, the Note is paid off or converted to a fixed rate pursuant to the terms of the Conversion Agreement between
Borrower and Lender, Borrower shall have the right to terminate the existing Hedge. 

 
 
        (f)    Escrow.     Upon the occurrence of an Event of Default under the Security Instrument, Borrower will be
required to (i) make annual deposits
("Annual Deposits") to be held in an interest bearing hedge reserve escrow account during any period in which a Hedge with an original term of less than
the remaining term of the Note is in effect, to provide moneys for the purchase of a Subsequent Hedge and (ii) enter into a Hedge Reserve Escrow Account Security Agreement with Lender. Lender
shall determine the amount of the Annual Deposits and shall monitor the hedge reserve escrow account holding such Annual Deposits. 

 
 
        (g)    Performance Under Hedge Documents.     Borrower agrees to comply fully with, and to otherwise perform when
due, its obligations under, all applicable Hedge Documents and all other agreements
evidencing, governing and/or securing any Hedge arrangement contemplated under this Paragraph. Borrower shall not exercise, without the Lender's prior written consent, and shall exercise, at Lender's
direction, any rights or remedies under any Hedge Document, including without limitation the right of termination. 

	 	 	/s/  JK      
 BORROWER'S INITIAL(S)

B-2

   SCHEDULE C  

 PRINCIPAL AMORTIZATION SCHEDULE  

 NOT APPLICABLE  

C-1

   SCHEDULE D  

 RATE SETTING FORM  

        Pursuant to Paragraph 3 of that certain Discount MBS Multifamily Note dated as of January 13, 2005 (the
"Note"), from the undersigned (the "Borrower") to DEUTSCHE BANK BERKSHIRE MORTGAGE, INC., a
Delaware corporation (the "Lender"), the Borrower hereby requests that the Lender issue to it an advance to be funded by a discount mortgaged backed
security ("DMBS") with the following terms: 

	Advance Amount	 	$

	

Term	
 	

[Three months]
	

DMBS Issue Date	
 	

                         1st,        

	

Closing Date no later than	
 	

                        ,        

	

 	
 	
[Signatures on the following page]

D-1

 

	Dated:	 	    
	 	 	 	 	 	 
	

 	
 	

 	
 	
BORROWER:
	

 	
 	

 	
 	

DEG RESIDENTIAL, LLC, a Delaware limited liability company
	

 	
 	

 	
 	

By:	
 	

Douglas Emmett Realty Advisors, a California corporation, its Manager
	

 	
 	

 	
 	

 	
 	

By:	
 	

    

	 	 	 	 	 	 	Name:

Title:
	

 	
 	

 	
 	

68-0599468

Borrower's Employer ID Number

D-2

  

 
 

SCHEDULE E    
    
    RATE CONFIRMATION FORM    
    

        Pursuant to Paragraph 4(c) of that certain Discount MBS Multifamily Note dated as of January 13, 2005 (the "Note"), from the undersigned (the
"Borrower") to DEUTSCHE BANK BERKSHIRE MORTGAGE, INC., a Delaware corporation (the "Lender"), the Borrower hereby requests that the Lender issue to it an advance for the purpose of refinancing
the Indebtedness to be funded by a discount mortgaged backed security ("DMBS") pursuant to the Rate Setting Form
dated                        , from the Borrower to the Lender. The Lender hereby confirms that
it has obtained a commitment for the purchase of a Fannie Mae DMBS with the following terms: 

	Advance Amount	 	$                                        
        
	

Term	
 	

[Three months]
	

DMBS Issue Date	
 	

                         1,             
	

DMBS Imputed Interest Rate	
 	

             %
	

Discount	
 	

             %
	

Price	
 	

                                         
          %
	

Closing Date no later than	
 	

                         ,             

	

Dated:                        ,            	
 	

 	
 	

 
	

 	
 	

LENDER:
	

 	
 	

DEUTSCHE BANK BERKSHIRE MORTGAGE, INC.,

a Delaware corporation
	

 	
 	

By:	
 	

    

	 	 	Name:	 	    

	 	 	Title:	 	    

	

 	
 	

By:	
 	

    

	 	 	Name:	 	    

	 	 	Title:	 	    

E-1

 

Rate
Setting Date:                        ,            ,
            :            AM/PM Eastern Time 

BORROWER
AGREES TO AND ACCEPTS THE ABOVE-STATED TERMS FOR THE REFINANCING OF THE INDEBTEDNESS: 

	

Dated:                        ,            	
 	

 	
 	

 	
 	

 
	

 	
 	

BORROWER:
	

 	
 	

DEG RESIDENTIAL, LLC, a Delaware limited liability company
	

 	
 	

By:	
 	

Douglas Emmett Realty Advisors, a California corporation, its Manager
	

 	
 	

 	
 	

By:	
 	

    

	 	 	 	 	Name:	 	    

	 	 	 	 	Title:	 	    

	

 	
 	

68-0599468
 Borrower's Employer ID Number

E-2

QuickLinks

Exhibit 10.6

DISCOUNT MBS MULTIFAMILY NOTE

ACKNOWLEDGMENT AND AGREEMENT OF KEY PRINCIPAL TO PERSONAL LIABILITY FOR EXCEPTIONS TO NON-RECOURSE LIABILITY

SCHEDULE A PREPAYMENT PREMIUM

SCHEDULE B MODIFICATIONS TO MULTIFAMILY NOTE

4A.

7A. Interest Rate Hedge.

(b)  Subsequent Hedges.

(c)  Hedge Terms.

(d)  Hedge Security Agreement: Delivery of Hedge Payments.

(e)  Termination.

(f)  Escrow.

(g)  Performance Under Hedge Documents.

SCHEDULE E RATE CONFIRMATION FORMQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.8    
    

 
 

INDEMNIFICATION AGREEMENT    
    

        THIS INDEMNIFICATION AGREEMENT is made and entered into this            day
of                        , 2006 ("Agreement"), by and between Douglas
Emmett, Inc., a Maryland corporation (the "Company"), and ("Indemnitee"). 

        WHEREAS,
at the request of the Company, Indemnitee currently serves as a [director]
[officer] of the Company and may, therefore, be subjected to claims, suits or proceedings arising as a result of his service; and 

        WHEREAS,
as an inducement to Indemnitee to continue to serve as such [director] [officer],
the Company has agreed to indemnify and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the maximum extent permitted by law; and 

        WHEREAS,
the parties by this Agreement desire to set forth their agreement regarding indemnification and advance of expenses; 

        NOW,
THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows: 

 
 

           Section 1.    Definitions.     For purposes of this Agreement: 

        (a)   "Change
of Control" means (i) there shall be consummated (a) any consolidation or merger of the Company, other than a merger or consolidation of the
Company in which (1) the holders of the Company's common stock immediately prior to the merger or consolidation have at least fifty one percent (51%) ownership of the total voting power of the
surviving entity immediately after the merger or consolidation, and (2) no person (other than an Exempted Holder as defined below) beneficially owns (as such term is defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, 20% or more of the total voting power of the surviving entity or (b) any sale, lease, exchange or other transfer
(in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Company, or (ii) the shareholders of the Company approve any plan or proposal for the
liquidation or dissolution of the Company, or (iii) any person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"))
other than an Exempted Holder (as defined below) shall become the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of twenty percent (20%) or more of the
Company's common stock. "Exempted Holder" means (a) the Company or any majority-owned subsidiary (provided that this exclusion applies solely to the ownership levels of the Company or the
majority-owned subsidiary); (b) any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust sponsored or maintained by the Company or any
subsidiary; (c) any underwriter or placement agent temporarily holding securities pursuant to an offering of such securities; or (d) Dan Emmett, Jordan Kaplan or Ken Panzer, their
immediate family members and family trusts or family-only partnerships and any charitable foundations, any entities in which they and their families beneficially own a majority of the
voting interests, and any "group" (as described in Rule 13d-5(b)(i) under the Exchange Act) including them. However, a Change of Control shall not be deemed to have occurred
if a person's percentage interest increases over 20% solely as a result of a decrease in the outstanding stock because of an acquisition of securities by the Company; provided, however, that a "Change
of Control" shall be deemed to have occurred on any subsequent acquisitions of the Company's common stock by that person (other than pursuant to a stock split, stock dividend, or similar transaction)
at a time when that person beneficially owns 20 percent or more of the Company's outstanding common stock, or (iv) The Board of Directors shall cease for any reason to have a majority of
Uncontested Directors. "Uncontested Directors" means directors who were initially elected or initially nominated (a) by a vote of at least two-thirds of the then Uncontested
Directors and (b) not as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies or consents by
or on behalf of any person other than the Board of Directors, 

 

including
by reason of agreement intended to avoid or settle any such actual or threatened contest or solicitation. 

        (b)   "Corporate
Status" means the status of a person who is or was a director, trustee, officer, employee or agent of the Company or of any other corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise for which such person is or was serving at the request of the Company. 

        (c)   "Disinterested
Director" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee. 

        (d)   "Effective
Date" means the date set forth in the first paragraph of this Agreement. 

        (e)   "Expenses"
shall include all reasonable and out-of-pocket attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness
fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in
connection with prosecuting, defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding. 

        (f)    "Independent
Counsel" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither is, nor in the past five years has been,
retained to represent: (i) the Company or Indemnitee in any matter material to either such party, or (ii) any other party to or witness in the Proceeding giving rise to a claim for
indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement. If a Change of Control has not occurred, Independent
Counsel shall be selected by the Board of Directors, with the approval of Indemnitee, which approval will not be unreasonably withheld. If a Change of Control has occurred, Independent Counsel shall
be selected by Indemnitee, with the approval of the Board of Directors, which approval will not be unreasonably withheld. 

        (g)   "Proceeding"
includes any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or
any other proceeding, whether civil, criminal, administrative or investigative (including on appeal), except one pending or completed on or before the Effective Date, unless otherwise specifically
agreed in writing by the Company and Indemnitee. 

 
 

           Section 2.    Services by Indemnitee.     Indemnitee will serve as a [director]
[officer] of the Company.
However, this Agreement shall not impose any obligation on Indemnitee or the Company to continue Indemnitee's service to the Company beyond any period otherwise required by law or by other agreements
or commitments of the parties, if any. 

 
 

           Section 3.    Indemnification—General.     The Company shall indemnify, and advance Expenses to,
Indemnitee (a) as provided in this Agreement and (b) otherwise to the maximum extent permitted
by Maryland law in effect on the date hereof and as amended from time to time; provided, however, that no change in Maryland law shall have the effect of reducing the benefits available to Indemnitee
hereunder based on Maryland law as in effect on the date hereof. The rights of Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in the other
sections of this Agreement, including any additional indemnification permitted by Section 2-418(g) of the Maryland General Corporation Law ("MGCL"). 

 
 

           Section 4.    Proceedings Other Than Proceedings by or in the Right of the Company.     Indemnitee
shall be entitled to the rights of indemnification provided in this Section 4 if, by reason of his Corporate Status, he is, or is threatened to
be, made a party to or a witness in any threatened, pending, or completed Proceeding, other than a Proceeding by or in the right of the Company. 

2

 

Pursuant
to this Section 4, Indemnitee shall be indemnified against all judgments, penalties, fines and amounts paid in settlement and all Expenses actually and reasonably incurred by him or on
his behalf in connection with a Proceeding by reason of his Corporate Status unless it is established that (i) the act or omission of Indemnitee was material to the matter giving rise to the
Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty, (ii) Indemnitee actually received an improper personal benefit in money,
property or services, or (iii) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that his conduct was unlawful. 

 
 

           Section 5.    Proceedings by or in the Right of the Company.     Indemnitee shall be entitled to the
rights of indemnification provided in this Section 5 if, by reason of his Corporate Status, he is, or is threatened to
be, made a party to or a witness in any threatened, pending or completed Proceeding brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 5,
Indemnitee shall be indemnified against all amounts paid in settlement and all Expenses actually and reasonably incurred by him or on his behalf in connection with such Proceeding unless it is
established that (i) the act or omission of Indemnitee was material to the matter giving rise to such a Proceeding and (a) was committed in bad faith or (b) was the result of
active and deliberate dishonesty or (ii) Indemnitee actually received an improper personal benefit in money, property or services. 

 
 

           Section 6.    Court-Ordered Indemnification.     Notwithstanding any other provision of this Agreement,
a court of appropriate jurisdiction, upon application of Indemnitee and such notice as the court shall
require, may order indemnification in the following circumstances: 

        (a)   if
it determines Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall order indemnification, in which case
Indemnitee shall be entitled to recover the expenses of securing such reimbursement; or 

        (b)   if
it determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has
met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an improper personal benefit under
Section 2-418(c) of the MGCL, the court may order such indemnification as the court shall deem proper. However, indemnification with respect to any Proceeding by or in the right of
the Company or in which liability shall have been adjudged in the circumstances described in Section 2-418(c) of the MGCL shall be limited to Expenses actually and reasonably
incurred by him or on his behalf in connection with a Proceeding. 

 
 

           Section 7.    Indemnification for Expenses of a Party Who is Wholly or Partly Successful.     Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that Indemnitee is, by reason of his Corporate
Status, made a party to and is successful, on the merits or otherwise, in the defense of any Proceeding, he shall be indemnified for all Expenses actually and reasonably incurred by him or on his
behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters
in such Proceeding, the Company shall indemnify Indemnitee under this Section 7 for all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully
resolved claim, issue or matter, allocated on a reasonable and proportionate basis. For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a
Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter. 

 
 

           Section 8.    Advance of Expenses.     The Company shall advance all reasonable Expenses actually and
reasonably incurred by or on behalf of Indemnitee in connection with any Proceeding (other than a
Proceeding brought to enforce indemnification under this Agreement, applicable law, the Charter or Bylaws of the Company, any agreement or a resolution of the stockholders entitled to vote generally
in the election of directors or of the Board of Directors) to which Indemnitee is, or is threatened to be, made a party or a witness, within ten days after the receipt by the Company of a statement or 

3

 

statements
from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence
the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee of Indemnitee's good faith belief that the standard of conduct necessary for
indemnification by the Company as authorized by law and by this Agreement has been met and a written undertaking by or on behalf of Indemnitee, in substantially the form attached hereto as  Exhibit A or
in such form as may be required under applicable law as in effect at the time of the execution thereof, to reimburse the portion of any
Expenses advanced to Indemnitee relating to claims, issues or matters in the Proceeding as to which it shall ultimately be established that the standard of conduct has not been met and which have not
been successfully resolved as described in Section 7. To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses
shall be allocated on a reasonable and proportionate basis. The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be
accepted without reference to Indemnitee's financial ability to repay such advanced Expenses and without any requirement to post security therefor. 

 
 

           Section 9.    Procedure for Determination of Entitlement to Indemnification.     

        (a)   To
obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and
information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The Secretary of the Company shall,
promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification. 

        (b)   Upon
written request by Indemnitee for indemnification pursuant to the first sentence of Section 9(a) hereof, a determination, if required by applicable law, with
respect to Indemnitee's entitlement thereto shall promptly be made in the specific case: (i) if a Change of Control shall have occurred, by Independent Counsel in a written opinion to the Board
of Directors, a copy of which shall be delivered to Indemnitee; or (ii) if a Change of Control shall not have occurred, (A) by the Board of Directors (or a duly authorized committee
thereof) by a majority vote of a quorum consisting of Disinterested Directors (as herein defined), or (B) if a quorum of the Board of Directors consisting of Disinterested Directors is not
obtainable or, even if obtainable, such quorum of Disinterested Directors so directs, by Independent Counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to
Indemnitee, or (C) if so directed by a majority of the members of the Board of Directors, by the stockholders of the Company. If it is so determined that Indemnitee is entitled to
indemnification, payment to Indemnitee shall be made within ten days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to
Indemnitee's entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination in the discretion of the Board of Directors or Independent Counsel if retained
pursuant to clause (ii)(B) of this Section 9. Any Expenses actually and reasonably incurred by Indemnitee in so cooperating with the person, persons or entity making such determination
shall be borne by the Company (irrespective of the determination as to Indemnitee's entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom. 

 
 

           Section 10.    Presumptions and Effect of Certain Proceedings.     

        (a)   In
making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that
Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9(a) of this Agreement, and the Company shall
have the burden of proof to 

4

 

overcome
that presumption in connection with the making of any determination contrary to that presumption. 

        (b)   The
termination of any Proceeding by judgment, order, settlement, conviction, a plea of nolo contendere or its
equivalent, or an entry of an order of probation prior to judgment, does not create a presumption that Indemnitee did not meet the requisite standard of conduct described herein for indemnification. 

 
 

           Section 11.    Remedies of Indemnitee.     

        (a)   If
(i) a determination is made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement,
(ii) advance of Expenses is not timely made pursuant to Section 8 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to
Section 9(b) of this Agreement within 30 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to
Section 7 of this Agreement within ten days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made within ten days after a
determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court located in the State of Maryland, or in any other
court of competent jurisdiction, of his entitlement to such indemnification or advance of Expenses. Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a
single arbitrator pursuant to the commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration
within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 11(a); provided, however, that the foregoing clause shall
not apply to a proceeding brought by Indemnitee to enforce his rights under Section 7 of this Agreement. 

        (b)   In
any judicial proceeding or arbitration commenced pursuant to this Section 11 the Company shall have the burden of proving that Indemnitee is not entitled to
indemnification or advance of Expenses, as the case may be. 

        (c)   If
a determination shall have been made pursuant to Section 9(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by
such determination in any judicial proceeding or arbitration commenced pursuant to this Section 11, absent a misstatement by Indemnitee of a material fact, or an omission of a material fact
necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification. 

        (d)   In
the event that Indemnitee, pursuant to this Section 11, seeks a judicial adjudication of or an award in arbitration to enforce his rights under, or to recover
damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company for, any and all Expenses actually and reasonably incurred by
him in such judicial adjudication or arbitration. If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification
or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated. 

 
 

           Section 12.    Defense of the Underlying Proceeding.     

        (a)   Indemnitee
shall notify the Company promptly upon being served with or receiving any summons, citation, subpoena, complaint, indictment, information, notice, request or
other document relating to any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder; provided, however, that the failure to give any such notice shall not
disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company's ability to
defend in such Proceeding 

5

 

or
to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced. 

        (b)   Subject
to the provisions of the last sentence of this Section 12(b) and of Section 12(c) below, the Company shall have the right to defend Indemnitee in
any Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall notify Indemnitee of any such decision to defend within 15 calendar days following receipt of
notice of any such Proceeding under Section 12(a) above. The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to
the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission of fault of Indemnitee or (ii) does not include, as an
unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee. This
Section 12(b) shall not apply to a Proceeding brought by Indemnitee under Section 11 above or Section 18 below. 

        (c)   Notwithstanding
the provisions of Section 12(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee's Corporate Status,
(i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld, that he may have separate defenses or
counterclaims to assert with respect to any issue which may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel
approved by the Company, which approval shall not be unreasonably withheld, that an actual or apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Company,
or (iii) if the Company fails to assume the defense of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee's choice,
subject to the prior approval of the Company, which shall not be unreasonably withheld, at the expense of the Company. In addition, if the Company fails to comply with any of its obligations under
this Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee
the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee's choice, subject to the prior approval of the Company, which shall not be
unreasonably withheld, at the expense of the Company (subject to Section 11(d)), to represent Indemnitee in connection with any such matter. 

 
 

           Section 13.    Non-Exclusivity; Survival of Rights; Subrogation; Insurance.     

        (a)   The
rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time
be entitled under applicable law, the Charter or Bylaws of the Company, any agreement or a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of
Directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action
taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. 

        (b)   In
the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights. 

        (c)   The
Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and to
the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise. 

6

 

 
 

           Section 14.    Insurance.     The Company will use its reasonable best efforts to acquire directors and
officers liability insurance, on terms and conditions deemed appropriate by the Board of
Directors of the Company, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee for service as a director or officer of the Company and covering the Company for any
indemnification or advance of Expenses made by the Company to Indemnitee for any claims made against Indemnitee for service as a director or officer of the Company. Without in any way limiting any
other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee arising out of the amount of any deductible or retention and the amount of any excess of the
aggregate of all judgments, penalties, fines, settlements and reasonable Expenses actually and reasonably incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance
referred to in the previous sentence. 

 
 

          Section 15.    Indemnification for Expenses of a Witness.     Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee is or may be, by reason of his Corporate Status, a witness in any Proceeding,
whether instituted by the Company or any other party, and to which Indemnitee is not a party but in which the Indemnitee receives a subpoena to testify, he shall be advanced all reasonable Expenses
and indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith. 

 
 

          Section 16.    Duration of Agreement; Binding Effect.     

        (a)   This
Agreement shall continue until and terminate ten years after the date that Indemnitee's Corporate Status shall have ceased; provided, that the rights of Indemnitee
hereunder shall continue until the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advance of Expenses hereunder and of any
proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement relating thereto. 

        (b)   The
indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their
respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company),
shall continue as to an Indemnitee who has ceased to be a director, trustee, officer, employee or agent of the Company or of any other corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise which such person is or was serving at the written request of the Company, and shall inure to the benefit of Indemnitee and his spouse, assigns, heirs, devisees, executors and
administrators and other legal representatives. 

        (c)   The
Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial
part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform if no such succession had taken place. 

 
 

           Section 17.    Severability.     If any provision or provisions of this Agreement shall be held to be
invalid, illegal or unenforceable for any reason whatsoever: (a) the validity,
legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be
invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (b) to the fullest extent possible, the
provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not
itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby. 

7

 

 
 

           Section 18.    Exception to Right of Indemnification or Advance of Expenses.     Notwithstanding any
other provision of this Agreement, Indemnitee shall not be entitled to indemnification or advance of Expenses under this Agreement with
respect to any Proceeding brought by Indemnitee, unless (a) the Proceeding is brought to enforce indemnification under this Agreement, and then only to the extent in accordance with and as
authorized by Sections 8 and 11 of this Agreement, or (b) the Company's Bylaws, as amended, the Charter, a resolution of the stockholders entitled to vote generally in the election of directors
or of the Board of Directors or an agreement approved by the Board of Directors to which the Company is a party expressly provide otherwise. 

 
 

           Section 19.    Identical Counterparts.     This Agreement may be executed in one or more counterparts,
each of which shall for all purposes be deemed to be an original but all of which together shall
constitute one and the same Agreement. One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement. 

 
 

           Section 20.    Headings.     The headings of the paragraphs of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof. 

 
 

           Section 21.    Modification and Waiver.     No supplement, modification or amendment of this Agreement
shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. 

 
 

           Section 22.    Notices.     All notices, requests, demands and other communications hereunder shall be
in writing and shall be deemed to have been duly given if (i) delivered by hand
and receipted for by the party to whom said notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third business
day after the date on which it is so mailed: 

        (a)   If
to Indemnitee, to: The address set forth on the signature page hereto. 

        (b)   If
to the Company to: 

Douglas
Emmett, Inc.

808 Wilshire Boulevard, Suite 200

Santa Monica, California 90401

Attn: General Counsel 

or
to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be. 

 
 

          Section 23.    Governing Law.     The parties agree that this Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Maryland, without regard to
its conflicts of laws rules. 

 
 

           Section 24.    Miscellaneous.     Use of the masculine pronoun shall be deemed to include usage of the
feminine pronoun where appropriate. 

[SIGNATURE
PAGE FOLLOWS] 

8

 

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

	ATTEST:	 	DOUGLAS EMMETT, INC.
	

 	
 	

By:	

 	

(SEAL)
	
	 	 	
	 
	 	 	Name:

Title:	 	 
	

WITNESS:	
 	

INDEMNITEE
	

 	
 	

 
	
	 	

	 	 	Name:

Address:	 	 

9

 
 

EXHIBIT A    
    
    FORM OF UNDERTAKING TO REPAY EXPENSES ADVANCED    

The
Board of Directors of Douglas Emmett, Inc., a Maryland corporation 

Re:
Undertaking to Repay Expenses Advanced 

Ladies
and Gentlemen: 

        This
undertaking is being provided pursuant to that certain Indemnification Agreement dated the    day
of                        , 200    , by and between Douglas
Emmett, Inc., a Maryland corporation (the "Company"), and the undersigned Indemnitee (the "Indemnification Agreement"), pursuant to which I am entitled to advance of expenses in connection with  [Description of
Proceeding] (the "Proceeding"). 

        Terms
used herein and not otherwise defined shall have the meanings specified in the Indemnification Agreement. 

        I
am subject to the Proceeding by reason of my Corporate Status or by reason of alleged actions or omissions by me in such capacity. I hereby affirm that at all times, insofar as I was
involved as [a director] [an officer] of the Company, in any of the facts or events giving rise to the
Proceeding, I (1) acted in good faith and honestly, (2) did not receive any improper personal benefit in money, property or services and (3) in the case of any criminal
proceeding, had no reasonable cause to believe that any act or omission by me was unlawful. 

        In
consideration of the advance of Expenses by the Company for reasonable attorneys' fees and related expenses incurred by me in connection with the Proceeding (the "Advanced Expenses"),
I hereby agree that if, in connection with the Proceeding, it is established that (1) an act or omission by me was material to the matter giving rise to the Proceeding and (a) was
committed in bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an improper personal benefit in money, property or services or (3) in
the case of any criminal proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced Expenses relating to the
claims, issues or matters in the Proceeding as to which the foregoing
findings have been established and which have not been successfully resolved as described in Section 7 of the Indemnification Agreement. To the extent that Advanced Expenses do not relate to a
specific claim, issue or matter in the Proceeding, I agree that such Expenses shall be allocated on a reasonable and proportionate basis. 

        IN
WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this    day of                        ,
200    . 

WITNESS:

	 	 	 	(SEAL)
	
	 	
	 

QuickLinks

Exhibit 10.8

INDEMNIFICATION AGREEMENT

Section 1. Definitions.

Section 2. Services by Indemnitee.

Section 3. Indemnification—General.

Section 4. Proceedings Other Than Proceedings by or in the Right of the Company.

Section 5. Proceedings by or in the Right of the Company.

Section 6. Court-Ordered Indemnification.

Section 7. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.

Section 8. Advance of Expenses.

Section 9. Procedure for Determination of Entitlement to Indemnification.

Section 10. Presumptions and Effect of Certain Proceedings.

Section 11. Remedies of Indemnitee.

Section 12. Defense of the Underlying Proceeding.

Section 13. Non-Exclusivity; Survival of Rights; Subrogation; Insurance.

Section 14. Insurance.

Section 15. Indemnification for Expenses of a Witness.

Section 16. Duration of Agreement; Binding Effect.

Section 17. Severability.

Section 18. Exception to Right of Indemnification or Advance of Expenses.

Section 19. Identical Counterparts.

Section 20. Headings.

Section 21. Modification and Waiver.

Section 22. Notices.

Section 23. Governing Law.

Section 24. Miscellaneous.

EXHIBIT A FORM OF UNDERTAKING TO REPAY EXPENSES ADVANCED

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