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                                                                 EXHIBIT 10.3(c)

MULTIPLE INDEBTEDNESS               *      UNITED STATES OF AMERICA
LEASEHOLD MORTGAGE, SECURITY        *
AGREEMENT AND ASSIGNMENT OF         *      STATE OF  ORLEANS
LEASES AND RENTS                    *
                                    *      PARISH OF ORLEANS
BY: ROYAL SONESTA, INC.             *
                                    *
* * * * * * * * * * * * * * * * * * * * * * *

     BE IT KNOWN, that on the 28th day of March 2002, to be effective the 1st
     day of April, 2002, before me, Kathleen S. Plemer, Notary Public duly
     commissioned and qualified in the Parish and State aforesaid, personally
     came and appeared:

     ROYAL SONESTA, INC., a Louisiana corporation having its principal place of
     business in New Orleans, Louisiana, TIN #72-0803191, herein represented by
     its undersigned officer, duly authorized and acting pursuant to resolutions
     of its Board of Directors, a certified copy of which is annexed hereto (the
     "Mortgagor");

who declared that Mortgagor does by these presents declare and acknowledge the
indebtedness of Mortgagor unto:

     HIBERNIA NATIONAL BANK, a national banking association, organized and
     existing under the laws of the United States of America, and domiciled in
     the Parish of Orleans, State of Louisiana, with its principal office at 313
     Carondelet Street, New Orleans, Louisiana 70130, TIN #72-0210640,
     represented herein by its duly authorized undersigned officer
     ("Mortgagee");

here present who accepts this Mortgage.

                                    RECITALS

     A.   Mortgagee has made or will make a loan or loans to Mortgagor from time
to time.

     B.   In order to secure the full and punctual payment and performance of
any and all present and future loans, extensions of credit, liabilities and/or
obligations of every nature and kind whatsoever that Mortgagor may now and in
the future owe to or incur in favor of Mortgagee, whether such loans, extensions
of credit, liabilities and/or obligations are direct or indirect, guaranties or
by way of assignment, and whether related or unrelated, committed or purely
discretionary, absolute or contingent, voluntary or involuntary, determined or
undetermined, liquidated or unliquidated, due or to become due, together with
interest, costs, expenses, attorneys' fees and other fees and charges, whether
or not any such loans, unenforceable or voidable for any reason, (collectively,
the "Indebtedness"), the Mortgagor has agreed to execute and deliver this
Multiple Indebtedness Leasehold Mortgage, Security Agreement and Assignment of
Leases and Rents (this "Mortgage") and to grant a mortgage lien, collateral
assignment and continuing security interest in and to the Mortgaged Property (as
hereinafter defined).

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                                    AGREEMENT

     SECTION 1.   HYPOTHECATION. (a) In order to secure the Indebtedness, the
Mortgagor does by these presents specially mortgage, pledge, affect, hypothecate
and grant a continuing security interest unto and in favor of the Mortgagee, to
inure to the use and benefit of the Mortgagee, the following described property,
to-wit:

     That certain lease (hereinafter referred to as the "Lease") by
     and between Chateau Louisiana, Inc., as Landlord, and The Royal
     Orleans, Inc. (subsequently Louisiane Sonesta Corporation, now
     merged into Sonesta International Hotels Corporation), as Tenant,
     dated December 12, 1967, registered in C.O.B. 683D, folio 40,
     Orleans Parish, Louisiana, as amended, modified and supplemented
     by Amendment No. 1, dated November 26, 1973 registered in C.O.B.
     723G, folio 269, Orleans Parish, and as further amended, modified
     and supplemented by Amendment No. 2, dated September 1, 1977,
     registered in C.O.B. 753A, folio 815, Orleans Parish, and
     Amendment No. 3 dated September 17, 1981 registered in C.O.B.
     778C, Folio 157, Orleans Parish and as further supplemented by
     letter agreements dated December 17, 21 and 27, 1973, April 5,
     1976 and July 1 and September 2, 1977, which said interest of
     Mortgagor was acquired by Assignment of Lease from Sonesta
     International Hotels Corporation to Royal Sonesta, Inc. by
     instrument dated January 31, 1977, registered in C.O.B. 739,
     folio 580, Orleans Parish, Louisiana, covering and bearing
     against the following described property, to-wit:

     A certain piece or portion of ground, together with all of the
     improvements thereon, and all of the rights, ways, privileges,
     servitudes, advantages and appurtenances thereunto belonging or
     in anywise appertaining, situated in the Second Municipal
     District of the City of New Orleans, Louisiana, in Square 64,
     bounded by Bourbon, Conti, Royal and Bienville Streets,
     comprising the entire frontage of said Square 64 on Bourbon
     Street, and being composed of lots formerly designated as lots 1,
     2, 16 and 88, another lot 2 and lot X, of a former alley fronting
     on Conti Street, and of ten unnumbered and undesignated lots,
     which piece or portion of ground, according to a survey of Adloe
     Orr, Jr. & Associates, dated April 13, 1962, recertified June 7,
     1963, a print of which is annexed to an act passed before Ewell
     P. Walther, Jr., Notary Public, on June 10, 1963, measures 325
     feet, 6 inches and 2 lines (325 feet, 11 inches and 5 lines, as
     per title) in frontage on Bourbon Street running from the corner
     of Bourbon and Bienville Streets to the corner of Bourbon and
     Conti Streets, thence 231 feet, 3 inches and 1 line in frontage
     on Conti Street running from said corner of Conti and Bourbon
     Streets in the direction of Royal Street, thence on a line
     parallel to Royal Street and running from said point on Conti
     Street in the direction of Bienville Street a first depth of 116
     feet, 6 inches and 4 lines, thence narrowing on a line parallel
     to Conti Street and running from the direction of Royal Street in
     the direction of Bourbon Street 38 feet, 2 inches and 5 lines,
     thence on a line parallel to Royal Street and running from the
     direction of Conti Street a second depth of 208 feet, 9 inches
     and 7 lines to Bienville Street, thence from said point on

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     Bienville Street 193 feet and 2 lines (192 feet, 3 inches and 3
     lines, as per title) in frontage on Bienville Street to the
     corner of Bienville and Bourbon Streets, and which piece or
     portion of ground, according to a survey of Gandolfo, Kuhn &
     Associates, dated October 3, 1967, a print of which is hereunto
     annexed to the Lease for reference, measures 325 feet, 8 inches
     and 2 lines in frontage on Bourbon Street running from the corner
     of Bourbon and Bienville Streets to the corner of Bourbon and
     Conti Streets, thence 230 feet, 8 inches and 7 lines in frontage
     on Conti Street running from said corner of Conti and Bourbon
     Streets in the direction of Royal Street, thence on a line
     parallel to Royal Street running from said point on Conti Street
     in the direction of Bienville Street a first depth of 116 feet, 8
     inches and 6 lines, thence narrowing on a line parallel to Conti
     Street and running from the direction of Royal Street in the
     direction of Bourbon Street 38 feet, 2 inches and 5 lines, thence
     on a line parallel to Royal Street and running from the direction
     of Conti Street a second depth of 207 feet, 11 inches and 4 lines
     to Bienville Street, thence from said point on Bienville Street
     192 feet, 4 inches and 3 lines in frontage on Bienville Street to
     the corner of Bienville and Bourbon Streets.

Together with all the buildings and improvements situated on the above-described
immovable property and all appurtenances, rights, ways, privileges, servitudes,
prescriptions and advantages thereunto belonging or in anywise appertaining,
including without limitation all component parts of the above-described
immovable property, and all component parts of any building or other
construction located on the above-described immovable property, now or hereafter
a part of or attached to said immovable property or used in connection therewith
(said immovable property, together with said buildings and improvements and
other rights, privileges and interests encumbered hereby collectively referred
to as the "Premises").

Further together with the right to receive proceeds attributable to the
insurance loss of the Premises, all as provided in Louisiana Revised Statutes
9:5386.

In the event the Mortgagor becomes the owner of the immovable property covered
by the Lease, this Mortgage shall automatically and without need of further act
become a mortgage on the Mortgagor's full ownership interest.

Further together with the right to receive proceeds attributable to the
insurance loss of the Premises, all as provided in Louisiana Revised Statutes
9:5386.

All of the foregoing immovable and movable property and incorporeal rights
covered by and subject to this Mortgage are herein collectively referred to as
the "Property." The Property is to remain so specially mortgaged, affected and
hypothecated unto and in favor of Mortgagee until the full and final payment or
discharge of the Indebtedness, and Mortgagor is herein and hereby bound and
obligated not to sell or alienate the Property to the prejudice of this act.

     (b)  ASSIGNMENT OF LEASES AND RENTS. In order to secure the full and
punctual payment and performance of the Indebtedness, up to the maximum amount
outstanding at any time and from time to time set forth below, the Mortgagor
does hereby assign and pledge to the

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Mortgagee, and grant a continuing security interest in, all of the Mortgagor's
right, title and interest in and to (i) all leases affecting the Property or any
part thereof, whether now existing or hereafter arising, together with any and
all renewals, extensions or modifications thereof (the "Lessee Leases") and (ii)
all rentals, incomes, profits, security deposits and other sums due or becoming
due under the Lessee Leases (the "Rentals"). The rights assigned by this
Mortgage include, without limitation, all of the Mortgagor's right, power,
privilege and option to modify, amend or terminate the Lessee Leases, or waive
or release the performance or satisfaction of any duty or obligation of any
tenant or lessee (each a "Lessee") under the Lessee Leases.

     (c)  THE SECURITY INTERESTS. In order to secure the full and punctual
payment and performance of the Indebtedness, the Mortgagor hereby grants to the
Mortgagee a continuing security interest in and to all right, title and interest
of the Mortgagor in, to or under the following property, whether now owned or
existing or hereafter acquired or arising and regardless of where located
(collectively, the "Collateral"): (i) the Accounts, (ii) the Equipment; (iii)
the General Intangibles; (iv) all books and records (including, without
limitation, customer lists, credit files, computer programs, tapes, disks, punch
cards, data processing software, transaction files, master files, printouts and
other computer materials and records) of the Mortgagor pertaining to any of the
Mortgaged Property; and (v) all Proceeds and products of all or any of the
Collateral described in clauses (i) through (iii) hereof.

For purposes of this Mortgage, the following terms shall have the meanings
indicated:

"Accounts" shall mean all "accounts" (as defined in the UCC) now owned or
hereafter acquired by the Mortgagor, and shall also mean and include all
accounts receivable, notes, notes receivable, drafts, acceptances, book debts
and similar documents and other monies, obligations or indebtedness owing or to
become owing to the Mortgagor arising from the sale, lease or exchange of goods
or other property by the Mortgagor or the performance of services by the
Mortgagor or under any contracts for any of the foregoing (whether or not yet
earned by performance on the part of the Mortgagor), whether now in existence or
hereafter arising or acquired.

"Collateral Account" shall mean any demand deposit or time deposit account or
accounts of the Mortgagor maintained (now or in the future) with the Mortgagee.

"Equipment" shall mean all "equipment" (as defined in the UCC, including,
without limitation, all furniture and furnishings) now owned or hereafter
acquired by the Mortgagor and located on or relating to the Property, together
with all additions, accessories, parts, attachments, special tools and
accessions now and hereafter affixed thereto or used in connection therewith,
and all replacements thereof and substitutions therefor.

"General Intangibles" shall mean all "general intangibles" (as defined in the
UCC) now owned or hereafter acquired by the Mortgagor, including without
limitation (i) all contractual rights of, and obligations or indebtedness owing
to, the Mortgagor (other than Accounts) from whatever source arising, including
without limitation all contract rights of, and obligations or indebtedness owing
to, the Mortgagor under any construction contracts to which the Mortgagor is a
party, any management, franchise or licensing agreement regarding the conduct of
the Mortgagor's

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business, options or agreements to acquire the Property or any interest therein
and all permits and licenses relative to the operation of the Mortgagor's
business, (ii) all things in action, rights represented by judgments, awards of
damages, settlements and claims arising out of tort, warranty or contract,
whether relating to the Collateral or the Property or otherwise (including
without limitation the right to assert and otherwise be the proper party of
interest to commence, control, prosecute and/or settle such actions, whether as
claims, counterclaims or otherwise, and whether involving matters arising from
casualty, condemnation, indemnification, negligence, strict liability, other
tort, contract, warranty or in any other manner), (iii) rights under service,
maintenance or warranty contracts, operating agreements, and other warranties,
guaranties and bonds, (iv) the right to receive proceeds attributable to
insurance loss of the Collateral, (v) all goodwill, patents, patent licenses,
trademarks, trademark licenses, trade names, service marks, trade secrets,
rights in intellectual property, copyrights, permits and licenses, (vi) all
rights or claims in respect of refunds for taxes paid and (vii) all deposit
accounts of the Mortgagor with the Mortgagee, including the Collateral Account.

"Inventory" means all "inventory" (as defined in the UCC), now owned or
hereafter acquired by the Mortgagor or held on consignment, wherever located,
and shall also mean and include, without limitation, all raw materials and other
supplies, work in process and finished goods and any products assembled,
compiled or processed therefrom and all substances, if any, commingled therewith
or added thereto.

"Loan Agreement" shall means an agreement between Mortgagee and Mortgagor by
which Mortgagee agrees to extend credit to Mortgagor upon the terms and
conditions set forth in a written agreement.

"Proceeds" shall mean all cash and non-cash proceeds of, and all other profits,
rentals or receipts, in whatever form, arising from the collection, sale, lease,
exchange, assignment, licensing or other disposition of, or realization upon,
the Equipment, including, without limitation, all claims of the Mortgagor
against third parties for loss of, damage to or destruction of, or for proceeds
payable under, or unearned premiums with respect to, policies of insurance in
respect of, any Collateral and any condemnation or requisition payments with
respect to any Collateral, and including proceeds of all such proceeds, in each
case whether now existing or hereafter arising.

"Note" shall mean the note given as evidence of any Indebtedness incurred at any
time, from time to time during the existence of this Mortgage.

"UCC" shall mean the Uniform Commercial Code, Commercial Laws-Secured
Transactions (Louisiana Revised Statutes 10:9-101 through 9-710) in the State of
Louisiana, as amended from time to time; provided that if by reason of mandatory
provisions of law, the perfection or the effect of perfection or non-perfection
of the security interests in any Collateral is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than Louisiana, "UCC" means
the Uniform Commercial Code as in effect in such other jurisdiction for purposes
of the provisions hereof relating to such perfection or effect of perfection or
non-perfection.

     (d)  MAXIMUM AMOUNT. The maximum amount of the Indebtedness that may be
outstanding at any time and from time to time that this Mortgage secures,
including without

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limitation as a mortgage, as a collateral assignment and as a security
agreement, including all principal, interest and any expenses or Advances (as
hereinafter defined) incurred by the Mortgagee and all other amounts included
within the Indebtedness, is FIFTY MILLION DOLLARS. The Mortgagor acknowledges
that this Mortgage secures all loans and advances made or incurred by the
Mortgagee under or pursuant to this Mortgage, whether optional or obligatory by
the Mortgagee. This Mortgage is and shall remain effective, even though the
amount of the Indebtedness may now be zero or may later be reduced to zero,
until all of the amounts, liabilities and obligations, present and future,
comprising the Indebtedness have been incurred and are extinguished. When no
Indebtedness secured by this Mortgage exist and the Mortgagee is not bound to
permit any Indebtedness to be incurred, this Mortgage may be terminated by the
Mortgagor upon 30 days prior written notice sent by the Mortgagor to the
Mortgagee in accordance with the provisions of this Mortgage.

     (e)  MORTGAGED PROPERTY. All of the foregoing immovable and movable
property and incorporeal rights covered by and subject to this Mortgage,
including the Property and the Collateral, is hereinafter referred to
collectively as the "Mortgaged Property."

     SECTION 2.   PERFORMANCE OF INDEBTEDNESS. The Mortgagor will repay the
Indebtedness according to the terms of the Note, other documents evidencing such
obligations and this Mortgage. The Mortgagor will do and perform every act
required of it by the Note, other documents evidencing the obligations and this
Mortgage at the time or times and in the manner specified.

     SECTION 3.   TITLE TO COLLATERAL. The Mortgagor represents and warrants
that it has good and merchantable title to the Mortgaged Property, free of all
liens and encumbrances, except as permitted by the Loan Agreement. Furthermore,
the Mortgagor has not heretofore conveyed or agreed to convey or encumber the
Mortgaged Property in any way, except in favor of the Mortgagee or as permitted
by the Loan Agreement.

     SECTION 4.   TAXES AND OTHER LIENS. The Mortgagor will pay and discharge
promptly when due all taxes, assessments and governmental charges or levies
imposed upon it or upon its income or upon the Mortgaged Property as well as all
claims of any kind (including claims for labor, materials, supplies and rent)
which, if unpaid, might become a lien upon any or all of the Mortgaged Property;
provided, however, the Mortgagor shall not be required to pay any such tax,
assessment, charge, levy or claim if the amount, applicability or validity
thereof shall currently be contested in good faith by appropriate proceedings
diligently conducted and if the contesting party shall have set up reserves
therefor adequate under generally accepted accounting principles provided that
such reserves may be set up under generally accepted accounting principles).

     SECTION 5.   INSURANCE. The Mortgagor shall procure and maintain for the
benefit of the Mortgagee or cause to be so procured and maintained, original
paid up insurance policies from companies licensed in the state where the
Mortgaged Property is located and having a Best's rating of A or higher, in
amounts, in form and substance, and with expiration dates reasonably acceptable
to the Mortgagee, and containing a non-contributory standard mortgagee clause or
its equivalent in a form reasonably satisfactory to the Mortgagee, or the
statutory

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mortgagee clause, if any, required in the state where the Mortgaged Property is
located, or a mortgagee's loss payable endorsement, in favor of the Mortgagee.
All of such policies shall contain an agreement by the insurer not to cancel the
policies without giving the Mortgagee at least 30 days' prior written notice of
its intention to do so. Mortgagor shall deliver original or certified policies
(or insurance certificates from Mortgagor's insurance agent) to the Mortgagee,
with satisfactory evidence of payment not less than 5 days in advance of the
expiration date of the existing policy or policies. In the event the Mortgagor
should, for any reason whatsoever, fail to keep the Mortgaged Property or any
part thereof so insured, or to keep said policies so payable, or fail to deliver
to the Mortgagee the original or certified policies of insurance and the
renewals thereof upon demand, then Mortgagee, if it so elects, may itself have
such insurance effected in such amounts and in such companies as it may deem
proper and may pay the premiums therefor. The Mortgagor shall reimburse the
Mortgagee upon demand for the amount of premium paid, together with interest
thereon at 15% percent per annum from date until paid. The Mortgagor agrees to
notify the Mortgagee immediately in writing of any material fire or other
casualty to or accident involving the Mortgaged Property, whether or not such
fire, casualty or accident is covered by insurance. The Mortgagor further agrees
to notify promptly the Mortgagor's insurance company and to submit an
appropriate claim and proof of claim to the insurance company if the Mortgaged
Property is damaged or destroyed by fire or other casualty. The Mortgagee is
hereby authorized and empowered, at its option, to collect and receive the
proceeds from any policy or policies of insurance and each insurance company is
hereby authorized and directed to make payments of all such losses directly to
the Mortgagee instead of to the Mortgagor and Mortgagee jointly. The Mortgagee
shall apply the net proceeds thereof in accordance with the loan agreement in
existence at the time of the loss. The Mortgagor will not do or permit anything
to be done to the Mortgaged Property that may violate the terms of any insurance
covering the Mortgaged Property or any part thereof.

     SECTION 6.   CONDEMNATION. The Mortgagor hereby assigns to the Mortgagee
any and all awards that may be given or made in any proceedings by any legally
constituted authority to condemn or expropriate the Mortgaged Property, or any
part thereof, under power of eminent domain, and if there is such a condemnation
or expropriation, the Mortgagee may, at its election, either pay the net
proceeds thereof toward the payment of the Indebtedness or pay the net proceeds
thereof to the Mortgagor.

     SECTION 7.   RIGHT OF INSPECTION. The Mortgagor will permit any officer,
employee or agent of the Mortgagee to visit and inspect the Mortgaged Property,
examine the books of record and accounts of the Mortgagor, take copies and
extracts therefrom, and discuss the affairs, finances and accounts of the
Mortgagor with the Mortgagor's officers, accountants and auditors, all at such
reasonable time and on reasonable notice and as often as the Mortgagee may
reasonably desire.

     SECTION 8.   COMPLIANCE WITH LAWS AND COVENANTS. The Mortgagor, in
accordance with the provisions of any loan agreement, will observe and comply
with all laws, statutes, codes, acts, ordinances, orders, judgments, decrees,
injunctions, rules, regulations, certificates, franchises, permits, licenses,
authorizations, directions and requirements of all federal, state, parish,
municipal and other governments, departments, commissions, boards, courts,
authorities,

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officials and officers domestic or foreign, applicable to the Mortgagor or to
the Mortgaged Property.

     SECTION 9.   MAINTENANCE OF THE MORTGAGED PROPERTY. The Mortgagor will
maintain, preserve and keep the Mortgaged Property at all times in thorough
repair, good working order and good condition and will, from time to time, make
all necessary repairs and improvements so that the security of this Mortgage
shall at no time become impaired.

     SECTION 10.  STATUS OF LEASE. Mortgagor represents and warrants that the
Lease (i) is valid and binding and in full force and effect; (ii) has not been
amended or modified, other than as disclosed in writing to the Mortgagee; and
(iii) there are on defaults or events which with notice or the lapse of time (or
both) would constitute defaults under the Lease.

     SECTION 11.  LEASE. Mortgagor will perform and comply with all covenants,
warranties and obligations imposed upon or assumed by it as lessee under the
Lease, will keep the Lease constantly in full force and effect, and will not
terminate, cancel, modify or amend the Lease without the prior written consent
of Mortgagee. Mortgagor will give Mortgagee immediate notice in writing of any
default by either party under the Lease, or the receipt by Mortgagor of any
notice of default from the Lessor thereunder by providing to the Mortgagee a
photostatic copy of any such notice received by the Mortgagor from the Lessor.
Such notice shall be given without regard to the fact that the Mortgagee may be
entitled to such notice directly from the Lessor. The Mortgagee may, but shall
not be obligated to, take any action the Mortgagee deem necessary or desirable
to cure any default by the Mortgagor under the Lease.

     SECTION 12.  ENVIRONMENTAL INDEMNITY. The Mortgagor will defend, indemnify
and hold Mortgagee and its directors, officers, agents and employees harmless
from and against all claims, demands, causes of action, liabilities, losses,
costs and expenses (including, without limitation, costs of suit, reasonable
attorney's fees and fees of expert witnesses) arising from or in connection with
(i) the presence in, on or under or the removal from the Mortgaged Property of
any hazardous substances or solid wastes (as hereafter defined), or any releases
or discharges of any hazardous substances or solid wastes on, under or from such
property, (ii) any activity carried on or undertaken on or off the Mortgaged
Property, whether prior to or during the term of this Mortgage, and whether by
the Mortgagor or any predecessor in title or any officers, employees, agents,
contractors or subcontractors of Mortgagor or any predecessor in title, or any
third persons at any time occupying or present on the Mortgaged Property, in
connection with the handling, use, generation, manufacture, treatment, removal,
storage, decontamination, clean-up, transport or disposal of any hazardous
substances or solid wastes at any time located or present on or under the
Mortgaged Property, or (iii) any breach of any environmental representation,
warranty or covenant under the terms of this Mortgage, or (iv) any loss
sustained due to any portion of the Property being considered "wetlands", as
such term is defined by applicable federal law, except, in each case, claims,
demands, causes of action, liabilities, losses, costs and expenses arising from
or in connection with Mortgagee's acts or omissions. The foregoing indemnity
shall further apply to any residual contamination on or under the Mortgaged
Property, or affecting any natural resources, and to any contamination of the
Mortgaged Property or natural resources arising in connection with the
generation, use, handling, storage, transport or disposal of any such hazardous
substances or solid wastes, and irrespective of whether any of

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such activities were or will be undertaken in accordance with applicable laws,
regulations, codes and ordinances, except, in each case, claims, demands, causes
of action, liabilities, losses, costs and expenses arising from or in connection
with Mortgagee's acts or omissions. Such indemnity is subject to the limitations
on liability following transfer provided in the Loan Agreement. The terms
"hazardous substance" and "release" as used in this Mortgage shall have the
meanings specified in the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as amended by the Superfund Amendments and
Reauthorization Act of 1986 (as amended, "CERCLA"), and the terms "solid waste"
and "disposal" (or "disposed") shall have the meanings specified in the Resource
Conservation and Recovery Act of 1976, as amended by the Used Oil Recycling Act
of 1980, the Solid Waste Disposal Act Amendments of 1980, and the Hazardous and
Solid Waste Amendments of 1984 (as amended, "RCRA"); provided, in the event that
the laws of the State of Louisiana establish a meaning for "hazardous
substance," "release" "solid waste" or "disposal" which is broader than that
specified in either CERCLA or RCRA, such broader meaning shall apply. Without
prejudice to the survival of any other agreements of the Mortgagor hereunder,
the provisions of this Section shall survive the final payment of all
Indebtedness and the termination of this Mortgage and shall continue thereafter
in full force and effect.

     SECTION 13.  FURTHER ASSURANCES. The Mortgagor will keep the lien of this
Mortgage valid and unimpaired. The Mortgagor will promptly (and in no event
later than 30 days after written notice from the Mortgagee is received) cure any
defects in the creation, execution and delivery of this Mortgage and the Note.
The Mortgagor at its expense will promptly execute and deliver to the Mortgagee
upon request all such other and further documents, agreements and instruments in
compliance with or accomplishment of the covenants and agreements of the
Mortgagor in this Mortgage and the Note or to further evidence and more fully
describe the Mortgaged Property or more fully state the security obligations set
out herein, or to perfect, protect or preserve any liens created pursuant to
this Mortgage, or to make any recordings, to file any notices, or obtain any
consents as may be necessary or appropriate in connection with the transactions
contemplated by this Mortgage, so long as the terms thereof do not impair the
rights of the Mortgagor or increase the obligations of the Mortgagor.

     SECTION 14.  REIMBURSEMENT OF EXPENSES. The Mortgagor, in accordance with
and subject to the provisions of the Loan Agreement, will pay all reasonable
legal fees and fees of Mortgagee's counsel, title insurance premiums, brokerage
fees, appraisal fees, surveying fees and inspection fees, travel and other
expenses incurred by the Mortgagee in connection with the preparation of this
Mortgage and the Note (including any amendments). The Mortgagor will, upon
request, promptly reimburse the Mortgagee for all out-of-pocket amounts
expended, advanced or incurred by the Mortgagee to satisfy any obligation of the
Mortgagor under this Mortgage or the Note, or to protect the property or
business of the Mortgagor, or to collect the Indebtedness, or to enforce the
rights of the Mortgagee under this Mortgage or the Note, which amounts will
include all court costs, attorneys' fees, fees of auditors and accountants, and
investigation expenses reasonably incurred by the Mortgagee in connection with
any such matters, together with interest at the interest rate set forth in the
Note on each such amount from the date that the same is expended, advanced or
incurred by the Mortgagee until the date of reimbursement to the Mortgagee.

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     SECTION 15.  LIENS. The Mortgagor will not create, incur, assume or permit
to exist any judgment, lien or other encumbrance against all or any portion of
the Mortgaged Property, except for (a) liens in favor of the Mortgagee to secure
the Indebtedness of the Mortgagor to the Mortgagee under this Mortgage; (b)
liens for taxes, assessments, or other governmental charges not yet due or which
are being contested in good faith by appropriate action promptly initiated and
diligently conducted, if such reserve as shall be required by generally accepted
accounting principles shall have been made therefor; (c) liens of landlords,
vendors, carriers, warehousemen, mechanics, laborers and materialmen arising by
law in the ordinary course of business for sums either not yet due or being
contested in good faith by appropriate action promptly initiated and diligently
conducted, if such reserve as shall be required by generally accepted accounting
principles shall have been made therefor; and (d) an other liens specifically
permitted by the Loan Agreement or the Mortgagee in writing.

     SECTION 16.  SALE OR ENCUMBRANCE. The Mortgagor will not sell, assign,
lease, exchange, transfer, convey or otherwise dispose of (whether in one
transaction or in a series of transactions) all or any portion of the Mortgaged
Property, except as permitted by the Loan Agreement.

     SECTION 17.  RELEASE OF PROPERTY. The Mortgagee may at any time and without
notice to the Mortgagor, release any part of the Mortgaged Property from the
effect of this Mortgage, or grant an extension or deferment of time for the
discharge of any obligation hereunder, without affecting the liability of the
Mortgagor hereunder.

     SECTION 18.  ADVANCES BY MORTGAGEE. The Mortgagor authorizes the Mortgagee,
following the occurrence of a Default, to advance any sums necessary, limited
only as hereinafter set forth, for the purpose of paying (i) insurance premiums,
(ii) taxes, forced contributions, service charges, local assessments and
governmental charges, (iii) any liens or encumbrances affecting the Mortgaged
Property (whether superior or subordinate to the lien of this Mortgage) not
permitted by this Mortgage, (iv) necessary repairs and maintenance expenses or
(v) any other amounts which the Mortgagee deems necessary and appropriate to
preserve the validity and ranking of this Mortgage, to cure any Event of Default
or to prevent the occurrence of any Event of Default (collectively, the
"Advances") of whatever kind; provided, however, that nothing herein contained
shall be construed as making such Advances obligatory upon Mortgagee, or as
making Mortgagee liable for any loss, damage, or injury resulting from the
nonpayment thereof. The Mortgagor covenants and agrees that within five (5) days
after demand therefor by the Mortgagee, the Mortgagor will repay the Advances to
the Mortgagee, together with interest thereon at the rate of 15% per annum, and
in addition will repay any other reasonable costs, attorneys' fees and expenses,
charges and expenses of any and every kind for the full protection and
preservation of the Mortgaged Property or this Mortgage, including payments
required in respect to any lien, privilege or mortgage affecting the Mortgaged
Property, together with interest thereon at the rate of 15% per annum, and which
amount shall be included in the Indebtedness secured hereby.

     SECTION 19.  TAXATION OF MORTGAGE. In the event that any governmental
authority shall impose any taxation of mortgages or the indebtedness they
secure, the Mortgagor agrees to pay

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such governmental taxes, assessments or charges either to the governmental
authority or to the Mortgagee, as provided by law.

     SECTION 20.  NOTICE OF CHANGES. The Mortgagor will not change its name,
federal tax identification number, location of chief executive office or chief
place of business, or location where it keeps or holds any Collateral or any
records relating thereto unless it shall have given the Mortgagee at least 30
days prior written notice thereof and will maintain its partnership structure as
in effect on the date of this Mortgage.

     SECTION 21.  FINANCIAL STATEMENTS: TAX RETURNS; REPORTS. The Mortgagor
shall furnish the Mortgagee all financial statements, tax returns and reports
required by the Loan Agreement.

     SECTION 22.  EVENTS OF DEFAULT. The occurrence of any one or more of the
following events (regardless of the reason therefor) shall constitute an "Event
of Default" hereunder and failure to cure such Event of Default within five (5)
business days (or such other time periods as indicated hereinbelow) following
written notice of such Event of Default shall, at Mortgagee's option, relieve
Mortgagee of its obligations hereunder and shall immediately mature and make due
and exigible the entire Indebtedness up to the date of said Event of Default;

     (a)  PRINCIPAL AND INTEREST PAYMENTS. The Mortgagor fails to make payment
          or other Indebtedness when due;

     (b)  EVENT OF DEFAULT UNDER THE LOAN AGREEMENT. The occurrence of an Event
          of Default under and as defined in the loan agreement in existence at
          the time of the Event of Default;

     (c)  INVOLUNTARY BANKRUPTCY OR RECEIVERSHIP PROCEEDINGS. A receiver,
          conservator, liquidator or trustee of the Mortgagor or Guarantor or of
          any of its or his property (including the Mortgaged Property) is
          appointed by order or decree of any court or agency or supervisory
          authority having jurisdiction; or an order for relief is entered
          against the Mortgagor or the Guarantor under the Federal Bankruptcy
          Code; or the Mortgagor or Guarantor is adjudicated bankrupt or
          insolvent; or any material portion of the properties of any of the
          Mortgagor or Guarantor is sequestered by court order and such order
          remains in effect for more than 60 days after such party obtains
          knowledge thereof; or a petition is filed against the Mortgagor or
          Guarantor under any state, reorganization, arrangement, insolvency,
          readjustment of debt, dissolution; liquidation or receivership law of
          any jurisdiction, whether now or hereafter in effect, and such
          petition is not dismissed within 90 days;

     (d)  VOLUNTARY POSSESSION. The Mortgagor or Guarantor files a case under
          the Federal Bankruptcy Code or seeks relief under any provision of any
          bankruptcy, reorganization, arrangement, insolvency, readjustment of
          debt, dissolution or

                                                                             166
<Page>

          liquidation law of any jurisdiction, whether now or hereafter in
          effect, or consents to the filing of any case or petition against it
          or him under any such law;

     (e)  ASSIGNMENTS FOR BENEFIT OF CREDITORS. The Mortgagor or Guarantor makes
          an assignment for the benefit of its or his creditors, or admits in
          writing its or his inability to pay its or his debts generally as they
          become due, or consents to the appointment of a receiver, trustee or
          liquidator of the Mortgagor or Guarantor or of all or any part of its
          or his property;

     (f)  LEASE DEFAULT. The Mortgagor defaults in the payment of any rent or
          the due observance or performance of any other obligation, covenant,
          stipulation or condition contained in the Lease and the time, if any,
          for curing said default should lapse.

     (g)  OTHER COVENANTS. The Mortgagor or other Person (other than the
          Mortgagee) defaults in the observance or performance of any of the
          covenants or agreements contained in the Loan Agreement, the Note,
          this Mortgage or any of the other Collateral Documents, to be kept or
          performed by the Mortgagor or such Person (other than a default under
          the other Subsections of this Section 22), and such default continues
          (unremedied for a period of 30 days after the earlier of notice
          thereof being given by the Mortgagee or such Person, as applicable, to
          the Mortgagor, or such default otherwise becoming known to the
          president, chief financial officer, general partner or managing member
          of the Mortgagor, provided, however, that if such failure is capable
          of remedy but cannot with diligence be remedied within such 30-day
          period, such failure will not constitute an Event of Default so long
          as the Mortgagor promptly commences remedial action within such 30-day
          period and diligently pursues such action (but in no event shall the
          total time permitted to cure such default extend beyond 60 days from
          the date of default);

     SECTION 23.  REMEDIES. (a) Upon the happening of any Event of Default
specified in the preceding Section (other than Subsections (c) or (d) thereof),
the Mortgagee may by written notice to the Mortgagor declare the entire
principal amount of all Indebtedness then outstanding including interest accrued
thereon to be immediately due and payable without presentment, demand, protest,
notice of protest or dishonor or other notice of default of any kind, all of
which are hereby expressly waived by the Mortgagor.

     (b)  Upon the happening of any Event of Default specified in Subsections
(c) or (d) of the preceding Section, the entire principal amount of all
Indebtedness then outstanding including interest accrued thereon shall, without
notice or action by the Mortgagee, be immediately due and payable without
presentment, demand, protest, notice of protest or dishonor or other notice of
default of any kind, all of which are hereby expressly waived by the Mortgagor.

     (c)  Upon the occurrence of an Event of Default, the Mortgagee may take
such action, without notice or demand, as it deems advisable to protect and
enforce its rights against the Mortgagor and in and to the Mortgaged Property,
including, but not limited to, the following

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<Page>

actions, each of which may be pursued concurrently or otherwise, at such time
and in such order as the Mortgagee may determine, in its sole discretion,
without impairing or otherwise affecting the other rights and remedies of the
Mortgagee: (i) institute proceedings for the complete foreclosure of this
Mortgage in which case the Mortgaged Property may be sold for cash or upon
credit in one or more parcels under ordinary or executory process, at the
Mortgagee's sole option, and with or without appraisement, appraisement being
expressly waived; or (ii) to the extent permitted and pursuant to the procedures
provided by applicable law, institute proceedings for the partial foreclosure of
this Mortgage for the portion of the Indebtedness then due and payable, subject
to the continuing lien of this Mortgage for the balance of the Indebtedness not
then due; or (iii) institute an action, suit or proceeding in equity for the
specific performance of any covenant, condition or agreement contained in this
Mortgage or the Note; or (iv) recover judgment on the Note either before, during
or after any proceedings for the enforcement of this Mortgage; or (v) apply for
the appointment of a trustee, receiver, liquidator or conservator of the
Mortgaged Property, without regard for the adequacy of the security for the
Indebtedness and without regard for the solvency of the Mortgagor or of any
person, firm or other entity liable for the payment of the Indebtedness; or (vi)
withdraw all cash in the Collateral Account and apply such cash and other case,
if any, then held by it as Mortgaged Property against the Indebtedness; or (vii)
sell the Collateral or any part thereof at public or private sale, for cash,
upon credit or for future delivery, at such price or prices as the Mortgagee may
deem satisfactory, and in connection with any such sale, the Mortgagor hereby
specifically waives all rights of redemption, stay or appraisal which it has or
may have under any law now existing or hereafter adopted and agrees that 30 days
prior written notice of the time and place of any such sale or other intended
disposition of any of the Collateral constitutes "reasonable notification"
within the meaning of Section 9-612 of the UCC, except that shorter or no notice
shall be reasonable as to any Collateral which is perishable or threatens to
decline speedily in value or is of a type customarily sold on a recognized
market; or (viii) pursue such other remedies as the Mortgagee may have under
applicable law, including, without limitation, as a secured party under the UCC.

     (d)  The proceeds or avails of any sale made under or by virtue of this
Section, together with any other sums which then may be held by the Mortgagee
under this Mortgage, whether under the provisions of this Section or otherwise,
shall be applied in such manner as the Mortgagee, in its sole discretion, shall
determine.

     (e)  Upon any sale made under or by virtue of this Section, the Mortgagee
may bid for and acquire the Mortgaged Property or any part thereof and in lieu
of paying cash therefor may make settlement for the purchase price by crediting
upon the Indebtedness the net sales price after deducting therefrom the expenses
of the sale and the costs of the action and any other sums which the Mortgagee
is authorized to deduct under this Mortgage.

     (f)  The Mortgagee may proceed under this Mortgage solely as to the
immovable property interests, or solely as to the movable property interests, or
as to both the immovable and movable property interests in accordance with its
rights and remedies in respect of the immovable property interests.

     (g)  Upon the occurrence of any Event of Default, the Mortgagee may
additionally take any one or more of the following actions, each of which may be
pursued concurrently or

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<Page>

otherwise, at such time and in such order as the Mortgagee may determine, in its
sole discretion, without impairing or otherwise affecting the other rights and
remedies of the Mortgagee: (i) the Mortgagee may notify any and all Lessees to
pay all Rentals due thereafter directly to the Mortgagee at the address set
forth in the Mortgagee's notice to such Lessees; the Mortgagor irrevocably
agrees that all such Lessees shall be authorized to pay the Rentals directly to
the Mortgagee without liability of such Lessees for the determination of the
actual existence of any default by the Mortgagor claimed by the Mortgagee, and
the Lessees shall be expressly relieved of any and all duty, liability and
obligation to the Mortgagor in connection with any and all Rentals so paid; or
(ii) the Mortgagee may enter upon and take possession of the Mortgaged Property,
to manage and operate the Mortgaged Property and the Mortgagor's business on the
Mortgaged Property, and take possession of and use all books of account and
financial records of the Mortgagor and its property managers or representatives,
if any, relating to the Mortgaged Property; or (iii) the Mortgagee may alter,
modify, amend, terminate or permit the surrender of any or all Lessee Leases,
and the Mortgagee may execute new Lessee Leases of any part of the Mortgaged
Property, including Lessee Leases that extend beyond the maturity date of the
Note. The enforcement of any and all such rights available to the Mortgagee
hereunder shall continue for so long as the Mortgagee shall elect,
notwithstanding that the collection and application of the Rentals may have
cured the original default. Following the exercise of any of the foregoing
rights, the Mortgagee may, at its sole option, through written notice to the
Mortgagor, permit the Mortgagor to reenter and take possession of the Mortgaged
Property or any part thereof, and to perform all acts necessary for the
operation and maintenance of the Mortgaged Property, including the right to
collect the Rentals, but the Mortgagee shall nevertheless have the right,
effective upon written notice, to demand, sue for possession of and collect the
Rentals under the Lessee Leases and otherwise exercise its rights under this
Mortgage again.

     SECTION 24.  SET-OFF. Upon the occurrence of any Event of Default, the
Mortgagee shall have the right to set-off any funds of the Mortgagor in the
possession of the Mortgagee (other than lessee security deposits under Lessee
Leases) against any amounts then due by the Mortgagor to the Mortgagee pursuant
to this Mortgage.

                                                                             169
<Page>

     SECTION 25.  CONFESSION OF JUDGMENT. Mortgagee hereby confesses judgment in
favor of the holder or holders of the Note and does by these presents, consent,
agree, and stipulate that in the event of said Note or any interest thereon not
being punctually paid at maturity, or upon the Mortgagor's suspension, failure
or insolvency, or upon application for the Mortgagor's adjudication in
bankruptcy or upon the application by or against the Mortgagor for a respite,
assignment or receivership, or in the event said Mortgagor fails to comply with
any obligation by the Mortgagor herein undertaken, the said Note, at the option
of any holder or holders thereof, shall ipso facto mature and become due and
payable, anything therein contained to the contrary notwithstanding and said
Mortgagor does hereby authorize the said holder or holders of said Note, without
making a demand or putting the said Mortgagor in default, a putting in default
and all notices, judicial and nonjudicial, being expressly waived, to cause all
and singular the Mortgaged Property to be seized and sold after due process of
law, Mortgagor waiving the benefit of any and all laws or parts of laws relative
to the appraisement of the Mortgaged Property seized and sold under executory
process or other legal process, and consenting that the said Mortgaged Property
be sold without appraisement to the highest bidder for cash or on such terms as
the plaintiff in such proceedings may direct. For purposes of foreclosure under
Louisiana executory process procedures, the Mortgagor hereby acknowledges and
confesses judgment in favor of Mortgagee for the full amount of the
Indebtedness.

     SECTION 26.  ATTORNEY FEES. In case the Note is placed in the hands of
attorneys at law for the filing of foreclosure proceedings, to protect the
rights of Mortgagee or to enforce any of the agreements contained in this
Mortgage, Mortgagor will pay all costs of collection, including but not limited
to reasonable attorneys' fees, incurred in connection with the protection of or
realization of collateral or in connection with any of Mortgagee's collection
efforts, whether or not suit on the Indebtedness or any foreclosure proceedings
are filed. Mortgagor further agrees that the Indebtedness shall be increased by
the amount of said costs and fees.

     SECTION 27.  KEEPER. In the event the Mortgaged Property, or any part
thereof, is seized as an incident to an action for the recognition or
enforcement of this Mortgage by executory process, ordinary process,
sequestration, writ of fieri facias or otherwise, the Mortgagor and the
Mortgagee agree that the court issuing any such order shall, if petitioned for
by Mortgagee, direct the applicable sheriff to appoint as a keeper of the
Mortgaged Property, the Mortgagee or any agent designated by Mortgagee or any
person named by the Mortgagee at the time such seizure is effected. This
designation is pursuant to Louisiana Revised Statutes 9-5136 through 5140.2,
inclusive, as the same may be amended, and Mortgagee shall be entitled to all
the rights and benefits afforded thereunder. It is hereby agreed that the keeper
shall be entitled to receive as compensation, in excess of its reasonable costs
and expenses incurred in the administration or preservation of the Mortgaged
Property, an amount equal to the sum of $500 per day. The designation of keeper
made herein shall not be deemed to require Mortgagee to provoke the appointment
of such a keeper.

     SECTION 28.  WAIVERS. The Mortgagor waives in favor of the Mortgagee, any
and all homestead exemptions and other exemptions of seizure or otherwise to
which Mortgagor is or may be entitled under the constitution and statutes of the
State of Louisiana insofar as the Mortgaged Property is concerned. The Mortgagor
further waives: (a) the benefit of appraisement as provided in Louisiana Code of
Civil Procedure Articles 2332, 2336, 2723 and 2724, and all

                                                                             170
<Page>

other laws conferring the same; (b) the demand and three days delay accorded by
Louisiana Code of Civil Procedure Articles 2639 and 2721; (c) the notice of
seizure required by Louisiana Code of Civil Procedure Articles 2293 and 2721;
(d) the three days delay provided by Louisiana Code of Civil Procedure Articles
2331 and 2722; and (e) the benefit of the other provisions of Louisiana Code of
Civil Procedure Articles 2331, 2722 and 2723, not specifically mentioned above.

     SECTION 29.  AUTHENTIC EVIDENCE. Any and all declarations of fact made by
authentic act before a notary public in the presence of two witnesses by a
person declaring that such facts lie within his knowledge, shall constitute
authentic evidence of such facts for the purpose of executory process.

     SECTION 30.  NOTICES. Any notice or demand which, by provision of this
Mortgage, is required or permitted to be given or served by the Mortgagee to or
on the Mortgagor shall be deemed to have been sufficiently given and served for
all purposes (if mailed) three calendar days after being deposited, postage
prepaid, in the United States mail, registered or certified mail, or (if
delivered by express courier) one business day after being delivered to such
courier, or (if delivered in person) the same day as delivery, in each case
addressed (until another address or addresses is given in writing by the
Mortgagor to the Mortgagee) to the Mortgagor at the address set forth on Page 1
hereof. Any notice or demand which, by any provision of this Mortgage, is
required or permitted to be given or served by the Mortgagor to or on the
Mortgagee shall be deemed to have been sufficiently given and served for all
purposes (if mailed) three calendar days after being deposited, postage prepaid,
in the United States mail, registered or certified mail, or (if delivered by
express courier) one business day after being delivered to such courier, or (if
delivered in person) the same day as delivery, in each case addressed (until
another address or addresses are given in writing by the Mortgagee to the
Mortgagor) to the Mortgagee at the address set forth on Page 1 hereof or in the
Loan Agreement.

     SECTION 31.  AMENDMENT. Neither this Mortgage nor any provisions hereof may
be changed, waived, discharged or terminated orally or in any manner other than
by an authentic instrument in writing signed by the party against whom
enforcement of the change, waiver, discharge or termination is sought.

     SECTION 32.  INVALIDITY. In the event that any one or more of the
provisions contained in this Mortgage shall, for any reason, be held invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Mortgage.

     SECTION 33.  GOVERNING LAW. This Mortgage is a contract made under and
shall be construed in accordance with and governed by the laws of the United
States of America and the State of Louisiana.

     SECTION 34.  CERTIFICATES. The production of mortgage, conveyance, tax
research or other certificates is waived by consent, and the Mortgagor and the
Mortgagee agree to hold me, Notary, harmless for failure to procure and attach
same.

                                                                             171
<Page>

     THUS DONE AND PASSED on the 28th of March, 2002, in the presence of the
undersigned witnesses who hereunto sign their names with the Mortgagor and me,
Notary, after due reading of the whole.

WITNESSES:                             MORTGAGOR:
                                       ROYAL SONESTA, INC.
/S/                                    By: /S/
----------------------------------         ---------------------------------
SHARON F. GUNN                         Name:  Boy van Riel
                                              ------------------------------
                                       Title: Vice President & Treasurer
                                              ------------------------------

/S/
----------------------------------
JANET L. CARBALLO                      MORTGAGEE:
                                       HIBERNIA NATION BANK
                                       By: /S/
                                           ---------------------------------
                                       Name:  Andrew B. Booth, IV
                                              ------------------------------
                                       Title: Vice President
                                              ------------------------------

                       /S/
                       -------------------------------------
                       Kathleen S. Plemer
                                   NOTARY PUBLIC
                          MY COMMISSION IS ISSUE FOR LIFE

                                                                             172<Page>

                                                                 EXHIBIT 10.3(d)

                               CONTINUING GUARANTY

         This Continuing Guaranty ("GUARANTY") is made and entered into
effective the 1st day of April, 2002, by SONESTA INTERNATIONAL HOTELS
CORPORATION ("GUARANTOR"), in favor of HIBERNIA NATIONAL BANK ("BANK),
guaranteeing the Indebtedness (as hereinafter defined) of ROYAL SONESTA, INC.
("Borrower").

                               W I T N E S E T H:

         WHEREAS, pursuant to and in consideration of Bank's extension of credit
to Borrower on even date hereof, Guarantor, whether one or more, has agreed to
give its Continuing Guaranty (hereinafter referred to as either "CONTINUING
GUARANTY" OR "GUARANTY") to Bank for payment in full, together with all fees and
charges of whatever kind and nature, of any and all Indebtedness and/or
obligations to Bank up to any and all present and future indebtedness.

         NOW THEREFORE, FOR VALUE RECEIVED and in furtherance of the obligation
on the part of Borrower to obtain an unconditional guaranty from Guarantor for
Borrower's obligation on the Indebtedness, and in consideration of the giving or
extending credit by Bank to Borrower, Guarantor does hereby jointly, severally
and solidarily agree as follows:

         SECTION 1. CONTINUING GUARANTY OF BORROWER'S INDEBTEDNESS. Guarantor
hereby absolutely and unconditionally agrees to, and by these presents does
hereby guarantee the prompt and punctual payment, performance and satisfaction
of any and all loans, extensions of credit and/or other obligations that
Borrower may now and/or in the future owe to and/or incur in favor of Bank,
whether such indebtedness and/or obligations are direct or indirect, or by way
of assignment, and whether such indebtedness and/or obligations are absolute or
contingent, liquidated or unliquidated, due or to become due, secured or
unsecured, and whether now existing or hereafter arising, of any nature or kind
whatsoever, up to a maximum principal amount outstanding at any one or more
times not to exceed TEN MILLION AND NO/100 (U.S. $10,000,000.00) DOLLARS,
together with interest, costs and attorney's fees thereon (with all of
Borrower's indebtedness and/or obligations being hereinafter individually and
collectively referred to under this Guaranty as Borrower's "INDEBTEDNESS").

         SECTION 2. SOLIDARY OBLIGATION. The Guarantor hereby binds and
obligates said Guarantor and Guarantor's heirs, successors and assigns IN SOLIDO
with the Borrower and with the other Obligors for the full, prompt and punctual
payment, performance and satisfaction of all of the Indebtedness precisely as if
the same had been contracted and were due and owing by such Guarantor
personally. It is agreed and understood that the Guarantor shall be bound by all
the provisions of this Agreement and for the payment and performance of the
Indebtedness in the same manner as if each were the only person executing this
Agreement or guarantying the Indebtedness.

         SECTION 3. DURATION; CANCELLATION OF GUARANTY. This Guaranty and
Guarantor's obligations and liabilities hereunder shall remain in full force and
effect until such time as each and every Indebtedness of Borrower shall be paid,
performed and/or satisfied in full, in principal, interest, costs and attorney's
fees, or until such time as this Guaranty may be cancelled or otherwise
terminated by Bank under a written cancellation instrument in favor of Guarantor
(subject to the automatic reinstatement provisions hereinbelow). Unless
otherwise indicated under such a written cancellation instrument, Bank's
agreement to terminate or otherwise cancel this Guaranty shall only effect and
shall be expressly limited to Guarantor's continuing obligations and liabilities
to guarantee the prompt and punctual payment, performance and satisfaction of
Borrower's Indebtedness incurred, originated and/or extended by Bank after the
date of such a written cancellation instrument; with Guarantor remaining fully
obligated and liable under this continuing assessment of interest thereon that
was incurred, originated or extended prior to the date of such a written
cancellation instrument.

                                                                             173
<Page>

Nothing under this Guaranty or under any other agreement or understanding by and
between Guarantor and Bank, shall in any way obligate, or be construed to
obligate, Bank to agree to the subsequent termination or cancellation of
Guarantor's obligations and liabilities hereunder; it being fully understood and
agreed by Guarantor that Bank may, within its sole and uncontrolled discretion
and judgment, refuse to release Guarantor from any of its obligations and
liabilities under this Guaranty for any reason whatsoever as long as any of
Borrower's Indebtedness remains unpaid and outstanding; provided, however, that
upon written request of Guarantor, Bank shall acknowledge the termination of the
Continuing Guaranty at such time as there is no outstanding indebtedness between
Bank and Borrower, and any obligations or rights under the 2002 Agreement or
succeeding loan is terminated and Borrower no longer has any rights thereunder.

         SECTION 4. DEFAULT BY BORROWER. Should Borrower default under any of
its Indebtedness in favor of Bank, Guarantor unconditionally and absolutely
agrees to pay the full then unpaid amount of all of Borrower's Indebtedness
guaranteed hereunder, in principal, interest, costs and attorney's fees. Such
payment or payments shall be made immediately following demand by Bank at Bank's
offices indicated above. Guarantor hereby waives notice of acceptance of this
Guaranty and of any Indebtedness to which it applies or may apply. Guarantor
further waives presentment and demand for payment of Borrower's Indebtedness,
notice of dishonor and of nonpayment, notice of intention to accelerate, notice
of acceleration, protest and notice of protest, collection or institution of any
suit or other action by Bank in collection thereof, including any notice of
default in payment thereof or other notice to, or demand for payment thereof on
any party. Guarantor additionally waives any and all rights and pleas of
division and discussion as provided under Louisiana law, as well as, to the
degree applicable, any similar rights as may be provided under the laws of any
other state.

         SECTION 5. GUARANTOR'S SUBORDINATION OF RIGHTS TO BANK. In the event
that Guarantor should for any reason (i) advance or lend monies to Borrower for
any reason whatsoever, whether or not such funds are used by Borrower to make
payment or payments under Borrower's Indebtedness, and/or (ii) make any payment
for and on behalf of Borrower under any of Borrower's Indebtedness, and/or (iii)
make any payment to Bank in total or partial satisfaction of Guarantor's
obligations and liabilities hereunder, Guarantor hereby agrees that any and all
rights that Guarantor may have or acquire to collect or to be reimbursed by
Borrower (or by any guarantor, endorser or surety of Borrower's Indebtedness),
whether Guarantor's rights of collection or reimbursement arise by way of
subrogation to the rights of Bank or otherwise, shall in all respects be
subordinate, inferior and junior to Bank's rights to collect and enforce
payment, performance and satisfaction of Borrower's then remaining Indebtedness,
until such time as all of Borrower's Indebtedness is fully paid and satisfied.
Upon the occurrence of an Event of Default under the 2002 Agreement which is not
cured within the required time period, Guarantor agrees to refrain from
attempting to collect and/or enforce any of Guarantor's aforesaid rights against
Borrower (or any other guarantor, surety or endorser of Borrower's
Indebtedness), arising by way of subrogation or otherwise, until such time as
all of Borrower's then remaining Indebtedness in favor of Bank is fully paid and
satisfied, in principal, interest, costs and attorney's fees.

         Upon the occurrence of an Event of Default under the 2002 Agreement
which is not cured within the required time period, and upon notice from Bank if
Guarantor should for any reason whatsoever receive any payment or payments from
Borrower (or any other guarantor, surety or endorser of Borrower's Indebtedness)
on any such amount or amounts that Borrower (or such a third party) may owe to
Guarantor for any of the reasons stated above, Guarantor agrees to accept such
payment or payments for and on behalf of Bank, advising Borrower (or the third
party payee) of such a fact, and Guarantor unconditionally agrees to immediately
deliver such funds to Bank, with such funds being held by Guarantor during any
interim period, in trust for Bank. In the event that Guarantor should, for any
reason receive any such funds from Borrower (or any third party payee), and
Guarantor should deposit such funds in one or more of Guarantor's deposit
accounts, no matter where located, Bank shall have the right to attach any and
all of Guarantor's deposit accounts in which such funds were deposited, whether
or not such funds were commingled with other monies of Guarantor, and whether or
not such funds then remain on deposit in such an account or accounts. To this
end, Guarantor collaterally assigns

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and pledges to Bank any and all of Guarantor's present and future rights, title
and interest in and to all monies that Guarantor may now and/or in the future
maintain in deposit with banks, savings and loan associations and other
entities, to the extent that Guarantor may at any time deposit any such funds
that may be received from Borrower (or any other guarantor, endorser or surety
of Borrower's Indebtedness) in favor of Bank in such an account or accounts.

         SECTION 6. ADDITIONAL COVENANTS. Guarantor further agrees that Bank
may, at its sole option, at any time, and from time to time, without the consent
of or notice to Guarantor, or any one of them, or to any other party, and
without incurring any responsibility to Guarantor or to any other party, and
without impairing or releasing the obligations of Guarantor under this Guaranty:

         (A) Discharge or release any party (including, but not limited to,
Borrower or any co-guarantor under this Guaranty) who is or may be liable to
Bank for any of Borrower's Indebtedness;

         (B) Sell, exchange, release, surrender, realize upon or otherwise deal
with, in any manner and in any order, any collateral directly or indirectly
securing repayment of any of Borrower's Indebtedness;

         (C) Change the manner, place or terms of payment, or change or extend
the time of payment of or renew, as often and for such periods as Bank may
determine, or alter, any of Borrower's Indebtedness;

         (D) Settle or compromise any of Borrower's Indebtedness;

         (E) Subordinate and/or agree to subordinate the payment of all of any
part of Borrower's Indebtedness or Bank's security rights in and/or to any
collateral directly or indirectly securing any such Indebtedness, to the payment
and/or security rights of any other present and/or future creditors of Borrower;

         (F) Apply any sums paid to any of Borrower's Indebtedness, with such
payments being applied in such priority or with such preferences as Bank may
determine in its sole discretion, regardless of what Indebtedness of Borrower
remain unpaid;

         (G) Take or accept any other security or guaranty for any or all of
Borrower's Indebtedness; and/or

         (H) Enter into, deliver, amend or waive compliance with, any instrument
or arrangement evidencing, securing or otherwise affecting all or any part of
Borrower's Indebtedness.

         In addition, no course of dealing between Bank and Borrower (or any
other guarantor, surety or endorser of Borrower's Indebtedness), nor any failure
or delay on the part of Bank to exercise any of Bank's rights and remedies, or
any other agreement or agreements by and between Bank and Borrower (or any other
guarantor, surety or endorser) shall have the affect of impairing or releasing
Guarantor's obligations and liabilities to Bank or of waiving any of Bank's
rights and remedies. Any partial exercise of any rights and remedies granted to
Bank shall furthermore not constitute a waiver of any of Bank's other rights and
remedies, it being Guarantor's intent and agreement that Bank's rights and
remedies shall be cumulative in nature. Guarantor further agrees that, should
Borrower default under any of its Indebtedness, any waiver or forbearance on the
part of Bank to pursue the rights and remedies available to Bank shall be
binding upon Bank only to the extent that Bank specifically agrees to such
waiver or forbearance in writing. A waiver or forbearance on the part of Bank as
to one event of default shall not constitute a waiver or forbearance as to any
other default.

         SECTION 7. NO RELEASE OF GUARANTOR. Guarantor's obligations and
liabilities under this Guaranty shall not be released, impaired, reduced or
otherwise affected by, and shall continue in full force and effect,

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notwithstanding the occurrence of any event, including without limitation any
one or more of the following events:

         (A) Death, insolvency, bankruptcy, arrangement, adjustment,
composition, liquidation, disability, dissolution or lack of authority (whether
corporate, partnership or trust) of Borrower (or any person acting on Borrower's
behalf), or any other guarantor, surety or endorser of any of Borrower's
Indebtedness;

         (B) Partial payment or payments of any amount due and/or outstanding
under any of Borrower's Indebtedness;

         (C) Any payment by Borrower or any other party to Bank is held to
constitute a preferential transfer or a fraudulent conveyance under any
applicable law, or for any reason, Bank is required to fund such payment or pay
such amount to Borrower or to any other person;

         (D) Any dissolution of Borrower or any sale, lease or transfer of all
or any part of Borrower's assets; and/or

         (E) Any failure of Bank to notify Guarantor of the acceptance of this
Guaranty or of the failure of Borrower to make any payment due by Borrower to
Bank.

         This Guaranty and Guarantor's obligations and liabilities hereunder
shall continue to be effective, and/or shall automatically and retroactively be
reinstated if a release or discharge has occurred, as the case may be, if at any
time any payment or part thereof to Bank with respect to any of Borrower's
Indebtedness is rescinded or must otherwise be restored by Bank pursuant to any
insolvency, bankruptcy, reorganization, receivership, or any other debt relief
granted to Borrower or to any other party. In the event that Bank must rescind
or restore any payment received by Bank in satisfaction of Borrower's
Indebtedness, any prior release or discharge from the terms of this Guaranty
given to Guarantor shall be without effect, and this Guaranty and Guarantor's
obligations and liabilities hereunder shall automatically be renewed or
reinstated and shall remain in full force and effect to the same degree and
extent as if such a release or discharge was never granted. It is the intention
of Bank and Guarantor that Guarantor's obligations and liabilities hereunder
shall not be discharged except by Guarantor's full and complete performance of
such obligations and liabilities and then only to the extent of such
performance.

         SECTION 8. ENFORCEMENT OF GUARANTOR'S OBLIGATIONS AND LIABILITIES.
Guarantor agrees that, should Bank deem it necessary to file an appropriate
collection action to enforce Guarantor's obligations and liabilities under this
Guaranty, Bank may commence such a civil action against Guarantor without the
necessity of first (i) attempting to collect Borrower's Indebtedness from
Borrower or from any other guarantor, surety or endorser, whether through filing
of suit or otherwise, (ii) attempting to exercise against any collateral
directly or indirectly securing repayment of any of Borrower's Indebtedness,
whether through the filing of an appropriate foreclosure action or otherwise, or
(iii) including Borrower or any other guarantor, surety or endorser of any of
Borrower's Indebtedness as an additional party defendant in such a collection
action against Guarantor. If there is more than one guarantor under this
Guaranty, each Guarantor additionally agrees that Bank may file an appropriate
collection and/or enforcement action against any one or more of them, without
impairing the rights of Bank against any other guarantor under this Guaranty. In
the event that Bank should ever deem it necessary to refer this Guaranty to an
attorney-at-law for the purpose of enforcing Guarantor's obligations and
liabilities hereunder, or of protecting or preserving Bank's rights hereunder,
Guarantor (and each of them, on a joint, several and solidary basis) agrees to
reimburse Bank for the reasonable fees of such an attorney. Guarantor
additionally agrees that Bank shall not be liable for failure to use diligence
in the collection of any of Borrower's Indebtedness or any collateral security
therefor, or in creating or preserving the liability of any

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person liable on any such indebtedness, or in creating, perfecting or preserving
any security for any such Indebtedness.

         SECTION 9. REPRESENTATIONS AND WARRANTIES BY GUARANTOR. Guarantor
represents and warrants to Bank that:

         (A) To the extent applicable, Guarantor is a corporation duly
organized, validly existing and in good standing under the laws of the State of
its incorporation and Guarantor is duly qualified and in good standing as a
foreign corporation in each jurisdiction wherein the nature of the business
transacted and the property owned by Guarantor makes such qualification
necessary. Guarantor's guaranty of Borrower's Indebtedness and this Guaranty
does not violate Guarantor's Articles of Incorporation or Bylaws. Guarantor has
taken all corporate action necessary to authorize the execution, delivery and
performance of this Guaranty.

         (B) Guarantor has the lawful power to own its properties and to engage
in its business as presently conducted.

         (C) Guarantor's guaranty of Borrower's Indebtedness and Guarantor's
execution, delivery and performance of this Guaranty is not in violation of any
laws and will not result in a default under any contract, agreement or
instrument to which Guarantor is a party or by which Guarantor or its property
may be bound.

         (D) Guarantor will receive a direct or indirect material benefit from
the transactions contemplated herein and/or arising out of Borrower's
Indebtedness.

         (E) This Guaranty, when executed and delivered by Guarantor, will
constitute a valid, legal and binding obligation of Guarantor enforceable in
accordance with its terms.

         (F) All actions and consents required to be performed, obtained and/or
satisfied prior to the execution and delivery of this Guaranty, and to
constitute this Guaranty as the valid and binding obligation of Guarantor in
accordance with its terms, have been performed, obtained and satisfied in due
and strict compliance with all applicable laws.

         SECTION 10. ADDITIONAL DOCUMENTS. Upon the reasonable request of Bank,
Guarantor will, at any time, and from time to time, duly execute and deliver to
Bank any and all such further instruments and documents, and supply such
additional information, as may be necessary or advisable in the opinion of Bank,
to obtain the full benefits of this Guaranty.

         SECTION 11. TRANSFER OF INDEBTEDNESS. This Guaranty is for the benefit
of Bank and for, such other person or persons as may from time to time become or
be the holders of any of Borrower's Indebtedness hereby guaranteed and this
Guaranty shall be transferable and negotiable, with the same force and effect
and to the same extent as Borrower's Indebtedness may be transferable, it being
understood that, upon the transfer or assignment by Bank of any of Borrower's
Indebtedness hereby guaranteed, the legal holder of such Indebtedness shall have
all, of the rights granted to Bank under this Guaranty. Guarantor hereby
recognizes and agrees that Bank may, from time to time, one or more times,
transfer all or any portion of Borrower's Indebtedness to one or more third
parties. such transfers may include, but are not limited to, sales of a
participation interest in such Indebtedness in favor of one or more third party
lenders. Guarantor specifically agrees and consents to all such transfers and
assignments and Guarantor further waives any subsequent notice of and right to
consent to any such transfers and assignments as may be provided under
applicable Louisiana law. Guarantor additionally agrees that the purchaser of a
participation interest in Borrower's Indebtedness will be considered as the
absolute owner of a percentage interest of such Indebtedness and that such a
purchaser will have all of the rights granted to the purchaser under any
participation agreement governing the sale of such a

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participation interest. Guarantor further waives any right of offset that
Guarantor may have against Bank and/or any purchaser of such a participation
interest in Borrower's Indebtedness and Guarantor unconditionally agrees that
either Bank or such a purchaser may enforce Guarantor's obligations and
liabilities under this Guaranty, irrespective of the failure or insolvency of
Bank or any such purchaser. Guarantor further agrees that, upon any transfer of
all or any portion of Borrower's Indebtedness, Bank may transfer and deliver any
and all collateral securing repayment of such Indebtedness (including, but not
limited to, any collateral provided by Guarantor) to the transferee of such
Indebtedness and such collateral (again, including not limited to Guarantor's
collateral) shall secure any and all of Borrower's Indebtedness in favor of such
a transferee. Guarantor additionally agrees that, after any such transfer or
assignment has taken place, Bank shall be fully discharged from any and all
liability and responsibility to Borrower (and Guarantor) with respect to such
collateral arising after the date of the transfer, and the transferee thereafter
shall be vested with all the powers and rights with respect to such collateral.

         SECTION 12. RIGHT OF OFFSET. As collateral security for the repayment
of Guarantor's obligations and liabilities under this Guaranty, Guarantor hereby
grants Bank, as well as its successors and assigns, the right to apply, at any
time and from time to time, whether or not Borrower is then in default under any
of its Indebtedness guaranteed hereunder, any and all funds that Guarantor may
then have on deposit with or in the possession or control of Bank and its
successors or assigns (with the exception of funds deposited in IRA, pension or
other tax-deferred deposit accounts), towards repayment of any of Borrower's
Indebtedness subject to this Guaranty.

         SECTION 13. NOTICES. Any notice or demand which, by provision of this
Agreement, is required or permitted to be given or served by one party to the
other shall be given in writing by (a) personal delivery, or (b) expedited
delivery service with proof of delivery, or (c) United States Mail, postage
prepaid, registered or certified mail, return receipt requested sent to the
intended addressee at the address set forth below, or to such different address
as the addressee shall have designated by written notice sent in accordance
herewith, and shall be deemed to have been given and received either at the time
of personal delivery or, in the case of delivery service or mail, as of the date
of first attempted delivery at the address and in the manner provided herein.
The addresses for Guarantor and Lender are as follows:

         GUARANTOR:

         Sonesta International Hotels Corporation
         200 Clarendon St.
         Boston, MA 02116
         Attention: Office of the Treasurer

         LENDER:
         Hibernia National Bank
         313 Carondelet Street
         New Orleans, LA 70130
         Attention:

         SECTION 14. CONSTRUCTION. The provisions of this Guaranty shall be in
addition to and cumulative of, and not in substitution, novation or discharge
of, any and all prior or contemporaneous guaranty or other agreements by
Guarantor (or any one or more of them), in favor of Bank or assigned to Bank by
others, all of which shall be construed as complementing each other. Nothing
herein contained shall prevent Bank from enforcing any and all such other
guaranties or agreements in accordance with their respective terms.

         SECTION 15. Amendment. No amendment, modification, consent or waiver of
any provision of this Guaranty, and no consent to any departure by Guarantor
therefrom, shall be effective unless the same shall be in

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<Page>

writing signed by a duly authorized officer of Bank, and then shall be effective
only to the specific instance and for the specific purpose for which given.

         SECTION 16. SUCCESSORS AND ASSIGNS BOUND. Guarantor's obligations and
liabilities under this Guaranty shall be binding upon Guarantor's successors,
heirs, legatees, devisees, administrators, executors and assigns. The rights and
remedies granted to Bank under this Guaranty shall also inure to the benefit of
Bank's successors and assigns, as well as to any and all subsequent holder or
holders of any of Borrower's Indebtedness subject to this Guaranty.

         SECTION 17. CAPTION HEADINGS. Caption headings of the sections of this
Guaranty are for convenience purposes only and are not to be used to interpret
or to define their provisions. In this Guaranty, whenever the context so
requires, the singular includes the plural and the plural also includes the
singular.

         SECTION 18. WAIVER OF JURY TRIAL; SUBMISSION TO JURISDICTION. (a) THE
GUARANTOR HEREBY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH THE
GUARANTOR AND THE BANK MAY BE PARTIES, ARISING OUT OF OR IN ANY WAY PERTAINING
TO THIS AGREEMENT, THE 2002 LOAN AGREEMENT, AND THE COLLATERAL DOCUMENTS. IT IS
AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF
ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS
AGAINST PARTIES WHO ARE NOT PARTIES TO THIS AGREEMENT. THIS WAIVER IS KNOWINGLY,
WILLINGLY AND VOLUNTARILY MADE BY THE GUARANTOR, AND THE GUARANTOR HEREBY
REPRESENTS THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY
INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR
NULLIFY ITS EFFECT. THE GUARANTOR FURTHER REPRESENTS THAT IT HAS BEEN
REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY
INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD
THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

         (b) THE GUARANTOR HEREBY IRREVOCABLY CONSENTS TO THE JURISDICTION OF
THE STATE COURTS OF LOUISIANA AND THE FEDERAL COURTS IN LOUISIANA, AND AGREES
THAT ANY ACTION OR PROCEEDING ARISING OUT OF OR BROUGHT TO ENFORCE THE
PROVISIONS OF THIS AGREEMENT OR THE LOAN AGREEMENT MAY BE BROUGHT IN ANY COURT
HAVING SUBJECT MATTER JURISDICTION.

         SECTION 19. SEVERABILITY. If any provision of this Guaranty is held to
be illegal, invalid or unenforceable under present or future laws effective
during the term hereof, such provision shall be fully severable, this Guaranty
shall be construed and enforceable as if the illegal, invalid or unenforceable
provision had never comprised a part of it, and the remaining provisions of this
Guaranty shall remain in full force and effect and shall not be affected by the
illegal, invalid or unenforceable provision or by its severance therefrom.
Furthermore, in lieu of such illegal, invalid or unenforceable provision, there
shall be added automatically as a part of this Guaranty, a provision as similar
in terms to such illegal, invalid or unenforceable provision as may be possible
and legal, valid and enforceable.

         IN WITNESS WHEREOF, Guarantor has executed this Guaranty in favor of
Bank on the day, month and year first written above.

ACCEPTED:                                 GUARANTOR:
HIBERNIA NATIONAL BANK                    SONESTA INTERNATIONAL HOTELS

By: /S/                                   By: /S/
    -------------------------------           ------------------------
Title: Andrew B. Booth, IV                Title: Boy van Riel
Date:  April 1, 2002                      Date:  April 1, 2002

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