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HomeMy WebLinkAboutA5690 - HH PALM SPRINGS, LLCESTOPPEL CERTIFICATE RE: Sublease (Hotels 1--XI) between The City of Palm Springs, a California charter city and municipal corporation (successor in interest to SENCA Palm Springs, Inc., a California corporation), as sublandlord (the "Sublandlord"); and HHPS (defined below) (successor in interest to AP/APH Palm Springs, L.P., a Delaware limited partnership; successor in interest to The Community Redevelopment Agency of the City of Palm Springs, California), as subtenant, dated December 31, 1984 (as amended, assigned and supplemented, the "Sublease"). TO: (i) HH PALM SPRINGS LLC, a Delaware limited liability company ("HHPS") and its successors and assigns (collectively, the "Subtenant"); (ii) ASHFORD HOSPITALITY LIMITED PARTNERSHIP, a Delaware limited partnership ("Ashford Hospitality"), and each of their respective affiliates (collectively, the "Ashford Entities"); and (iii) each Lender (defined below). The undersigned is the Sublandlord under the above -referenced Sublease of land located at 888 East Tahquitz Canyon Way in Palm Springs, California (the "Property"). The Sublandlord has been advised that: (i) Subtenant, HHC TRS Portsmouth LLC, a Delaware limited liability company (the "Operating Tenant"), and certain of their affiliates are refinancing the loans described in (A) and (B) below (the "Refinancing") with (i) a mortgage loan (the "Mortgage Load") from Bank of America, N.A., Barclays Bank PLC and Morgan Stanley Bank, N.A. (together with any successors and/or assigns, the "Mortgage Lender") to Subtenant and its affiliates and (ii) one or more mezzanine loans (such loans, the "Mezzanine Loans") from the lenders set forth therein which may or may not include the Mortgage Lender (together with any successors and/or assigns, the "Mezzanine Lenders"; the Mortgage Lender and any and all Mezzanine Lenders and/or any of their respective affiliates or designees, as applicable, individually and/or collectively, as the context may require, together with their respective successors and/or assigns, are referred to herein as "Lender") to certain direct or indirect owners of Subtenant, the Operating Tenant and their affiliates: (A) a loan from Column Financial, Inc. pursuant to that certain Loan Agreement dated March 6, 2015; and (B) certain mezzanine loans to certain direct or indirect owners of HHPS, the Operating Tenant, and/or their affiliates; (ii) In connection with and as part of the Refinancing, Subtenant, as trustor, and the Mortgage Lender, as beneficiary, are entering into a Leasehold Deed of Trust, Assignment of Leases and Rents and Security Agreement, which will encumber, inter alia, the subleasehold estate of the Subtenant under the Sublease and the improvements located on the property (as the same may be modified, amended, supplemented or restated from time to time, the "Deed of Trust"), which Deed of Trust is to be recorded in the Official Records of Riverside County, California; and (iii) In connection with and as part of the Mortgage Loan and the Mezzanine Loans, the Mortgage Lender and the Mezzanine Lenders will be granted security interests in the direct and/or indirect interests in Subtenant, Operating Tenant and certain affiliates thereof (individually and/or collectively, as the context may require, the "Pledges"). As a condition to the Refinancing, and in reliance thereon, HHPS, the Lender, and the Ashford Entities request that the Sublandlord certify to the HHPS, the Lender, and the Ashford Entities, and each of their respective successors and assigns as follows: 1. The Sublease consists of the original agreement and the amendments thereof and supplements thereto that are identified in Exhibit A, and the Sublease, as so identified in Exhibit A, is unmodified and in full force and effect and constitutes the entire agreement between the Sublandlord and HHPS. A true and complete copy of each such Sublease document is attached hereto as part of such exhibit. The Sublandlord acknowledges that HHPS is currently the sole subtenant under the Sublease. 2. The current term of the Sublease commenced on January 1, 1985 and expires on December 30, 2059. Under Section 2 of the Sublease, upon the exercise of the Option to Extend (as defined in the Sublease) the Master Lease (as defined in the Sublease), the Sublandlord and Subtenant shall extend the term of the Sublease by written amendment to that date which is one day prior to the new termination date of the term of the Master Lease, as extended. 3. All rent and any other charges or amounts due under the Sublease, including the most recent payment of $1,072,808.00, have been paid through December 20, 2017, and there are no amounts currently due from HHPS to the Sublandlord that remain unpaid; provided, however, pursuant to Article 6 of the Master Lease, the guaranteed annual rental under the Master Lease should have been adjusted effective as of January 1, 2015, but such adjustment has not been made effective yet. Accordingly, all of HHPS's payments of rent from and after January 1, 2015 through the date hereof, are subject to a true -up after the finalization of the adjustments required by the Master Lease, and when such adjustments have been finalized 1111PS will be obligated to pay, on demand, any deficiency between the amount of rent actually paid by HHPS under the Sublease and the amount of rent that should have been paid from and after January 1, 2015 through the date hereof taking into consideration the appropriate adjustment pursuant to the Master Lease and taking into account such adjustments, if any, as may be appropriate pursuant to the Master Lease and the Sublease. 4. There are not, to the Sublandlord's knowledge, any uncured defaults on the part of HHPS under the Sublease beyond any applicable grace period, or any events or conditions now in existence that will, with notice, the passage of time, or both, constitute a default on the part of HHPS under the Sublease. 5. The Sublandlord is not in default of its obligations under that certain Business Lease No. PSL-315 dated February 28, 1984, approved by the United States Department of the Interior, acting, pursuant to delegated authority from such department, through its Bureau of Indian Affairs (such bureau so acting for such department, the "BW') on July 23, 1984, which approval was modified on August 20, 1984; as amended pursuant to (i) that certain Amendment No. 1 to PSL-315 dated as of August 10, 1995, approved by the BIA on October 13, 1995; 2 10"99"W4 (ii) that certain Amendment to Lease dated as of October 28, 1998, approved by the BIA on October 29, 1998; (iii) that certain First Amendment to Business Lease No. PSL-315 dated as of April 7, 2004, approved by the BIA on May 26, 2004; and (iv) that certain Second Amendment to Business Lease No. PSL-315 dated as of February 9, 2006, approved by the BIA on February 9, 2006. 6. The Sublandlord acknowledges that, in accordance with the Refinancing, the Lender is holding the Deed of Trust and/or one or more Pledges, which encumber, among other things, the subleasehold estate of the Subtenant under the Sublease, the sub-subleasehold estate of the Operating Tenant under the Operating Lease, the Improvements, and/or certain direct or indirect interests in the Subtenant, the Operating Tenant, and/or one or more affiliates thereof, and the Sublandlord acknowledges and agrees that each Lender is a "Sublease Encumbrancer" (as defined in the Sublease) entitled to all of the benefits thereof under the Sublease. 7. The Sublandlord agrees to deliver written notice of any default by the Subtenant under the Sublease to the representatives of the Lender (the "Designated Representatives") simultaneously with sending such notice to the Subtenant. All notices to be sent to the Designated Representatives shall be sent to the following addresses (or such other addresses as may be designated by any of the Designated Representative): Bank of America, N.A. Capital Markets Servicing Group 900 West Trade Street, Suite 650 Mail Code: NCI-026-06-01 Charlotte, North Carolina 28255 Attention. Servicing Manager Facsimile: (704) 317-4501 and Barclays Bank PLC 745 Seventh Avenue New York, New York 10019 Attention: Sabrina Khabie, Esq. and Morgan Stanley Bank, N.A. 1585 Broadway New York, New York 10036 Attention: George Kok Facsimile No. (212) 507-4859 W""4041V4 With a copy to: Dentons US LLP 1221 Avenue of the Americas New York, New York 10020-1089 Attention: David S. Hall, Esq. Facsimile No.: (212) 768-6800 To Mezzanine Lender: Bank of America, N.A. Capital Markets Servicing Group 900 West Trade Street, Suite 650 Mail Code: NCI-026-06-01 Charlotte, North Carolina 28255 Attention: Servicing Manager Facsimile: (704) 317-4501 and Barclays Bank PLC 745 Seventh Avenue New York, New York 10019 Attention: Sabrina Khabie, Esq. and Morgan Stanley Mortgage Capital Holdings LLC 1585 Broadway New York, New York 10036 Attention: George Kok Facsimile No. (212) 507-4859 With a copy to: Dentons US LLP 1221 Avenue of the Americas New York, New York 10020-1089 Attention: David S. Hall, Esq. Facsimile No.: (212) 768-6800 8. Intentionally Omitted. 9. This Certificate is being delivered in connection with the Refinancing, and the Sublandlord understands and agrees that HHPS, the Ashford Entities, and each Lender, and each of their respective successors and assigns will be relying upon this Certificate and that each of them is entitled to do so. The individual executing this Certificate on behalf of the Sublandlord 4 1064994041V-4 is empowered and authorized to do so. This Certificate shall be governed by the laws of the State of California. This Certificate may be executed in any number of counterparts, each of which shall be fully effective as an original and which together shall constitute a single instrument. This Certificate shall be binding upon the Sublandlord and its successors and assigns, and shall inure to the benefit of HHPS, the Ashford Entities, and each Lender, and each of their respective successors and assigns. When used herein, "including" and the like are not limiting, "or" is not exclusive, each gender includes the other genders, the singular includes the plural and vice versa (including in the definitions of terms), a reference to an "Exhibit" means an exhibit hereto, and all exhibits hereto are incorporated herein by the reference thereto. This Certificate is executed effective as of the day of 2018. A City Clerk 1%4"40AV-4 SUBLANDLORD: THE CITY OF PALM SPRINGS By David H. Ready Esq., Ph.D City Manager APPROV TO FORM: Edward Z. Kotkin City Attorney EXHIBIT A Sublease Documents 1. Sublease (Hotels I -XI) dated as of December 31, 1984, between SENCA Palm Springs, Inc., a California corporation ("SENCA-PS"), as sublandlord, and The Community Redevelopment Agency of The City of Palm Springs, California, a public body (the "Agency"), as subtenant. A memorandum of thereof was recorded in the Official Records on December 30, 1985, as Instrument No. 293742. 2. Supplement (for Purpose of Conforming Legal Description) to Sublease dated as of December 3, 1992, between the Sublandlord (successor in interest to SENCA-PS) and the Agency. 3. Amendment of Sublease dated as of November 5, 1998, between the Agency; the Sublandlord; AP/APH Palm Springs, L.P., a Delaware limited partnership ("AP/APH"); and the other parties thereto identified therein, a memorandum of which was recorded in the Official Records on November 5, 1998 as Instrument No. 487613. 4. Assignment and Termination of Sub -subleases dated as of November 5, 1998, between the Agency, AP/APH and the other parties thereto identified therein, recorded in the Official Records on November 9, 1998 as Instrument No. 487611. 5. Assignment of Ground Sublease dated July 14, 2005, between AP/APH, HH Palm Springs LLC, a Delaware limited liability company ("HHPS") and the City of Palm Springs, recorded in the Official records on February 14, 2005 as Instrument No. 2005-0565202. [Copies of the Foregoing Sublease Documents Follow] A-1 City of PaIrn Springs David H. Ready, Esq., Ph.D. City Manager 3200 E. lsdhquilz (:anyun Way, Palm Springs, CA 92262 10 760.322.8350 • Fix 160.323.8207 • TIJD 760.136,1.9517 Nvid.ltC2dy0palmspringsta:a.gav 4 www.pltrrispinxxd.go% February. 24. 2015 VIA OVERNIGHT MAIL Bureau of Indian Affairs Attn: 011ie Beyal 3700 E. Tachevah Drive. Suite 201 Palm Springs, CA 92262 Re. FIH Palm Springs LLC's ("HHPS") subie.;sor's consent in connection with the Bureau of Indian Affairs' (the "BIA") approval of the Leasehold Deed of Trust. Assignment of Leases and Rents, Security Agreement and Fixture Filing (the "Deed of Trust") encumbering HIIPS' subleasehold interest in the Sublease (ldotels I XI) between The City of Palm Springs, a municipal corporation (successor in interest to SENCA Palm Springs, Inc., a California corporation), as sublandlord (the "Sublandford"); and HFIPS (successor in interest to AP)APH Palm Springs. L.P., a Delaware limited partnership. - successor in interest to The Community Redevelopment Agency of the City of Pahn Springs, California), as subtenant, dated December 31. 1984 (as amended, assigned and supplemented, the "Sublease"). Gcntlepersons- The Subland€ord acknowledges that, in accordance with FIHPS' and a number of its affiliates, refinancing of (i) a loan from Wells Fargo Bank, National Association (successor by merger to Wachovia Bank, National Association) and Barclays Capital Real Lstate Inc. (together. the "Original Leader') pursuant to that certain Mortgage Loan Agreement dated July 17, 2007, between (1) HI4PS and a number of its affiliates; and (2) the Original Lender, and (ii) certain mezzanine loans to certain direct or indirect owners of Tenant and its affiliates (the "Refinancing"), Column Financial, Inc., a Delaware corporation. is holding the Deed of Trust, which encumbers, the subleasehold estate of the HHPA under the Sublease and the sub-subleasehold estate of the I-IHC TRS Portsmouth LLC, a Delaware limited liability company, under the Lease Agreement dated as of July 17, 2007 (the "Operating Lease"), between HHPS, as sub - sublessor, and HHC TRS Portsmouth LLC, and interests related solely to such subleasehold and sub -sub - leasehold estates. [Inic ntionaliv Blank] PO Box 2743, Palm Springs, California 92263 ,(awollV PuultUl I SuIS 1"4 W?I0-1 M SV a-9AO IddV aa�cuuW �}:7 :atl1.I. Q'ud `'�S a21 'I l p1Aua :awuN SJNNdS IN IW AO A.1.10 3- HI *[IHO'IGNvrIfff s �{1at7 All,} uosduioyy sawn *ls3 L.LV Z a5utl S I OZ `bZ A.mnagad ESTOPPEL CEIi IMCATE RE: Sublease (Hotels I XI) between The City of Palm Springs, a municipal corporation (successor in interest to SENCA Palm Springs, Inc., a California corporation), as sublandlord (the "Sublandlord'); and HHPS (defined below) (successor in interest to AP/APH Patin Springs, L.P., a Delaware limited partnership; successor in interest to The Community Redevelopment Agency of the City of Palm Springs, California), as subtenant, dated December 31, 1984 (as amended, assigned and supplemented, the "Sublease'). TO: (i) HH PALM SPRINGS LLC, a Delaware limited liability company C EUIPS") and its successors and assigns (collectively, the "Subtenant"); (ii) PIM HIGHLAND HOLDING LLC, a Delaware limited liability company (" PEM HH"), and ASHFORD HOSPITALITY LIMITED PARTNERSHIP, a Delaware limited partnership ("Ashford HospftalHty'), and each of their respective affiliates (collectively, the "Ashford Entities"); and (iii) each Lender (defined below). The undersigned is the Sublandlord under the above -referenced Sublease of land located at 888 East Tahquitz Canyon Way in Palm Springs, California (the "Property"). The Sublandlord has been advised that, effective February 24, 2015: (i) Subtenant, HHC TRS Portsmouth LLC, a Delaware limited liability company (the "Operating Tenant"), and certain of their affiliates are refinancing the loans described in (A) and (B) below (the "Refinancing") with (i) a mortgage loan (the "Mortgage Loan") from Column Financial, Inc. (together with any successors and/or assigns, the "Mortgage Lender") to Subtenant and its affiliates and (ii) one or more mezzanine loans (such loans, the "Mezzanine Loans") from the lenders set forth therein which may or y not include the Mortgage Lender (together with any successors and/or assigns, the `eaanine Lenders"; the Mortgage Lender and any and all Mezzanine Lenders and/or any of their respective affiliates or designees, as applicable, individually and/or collectively, as the context may require, together with their respective successors and/or assigns, are referred to herein as "Lender") to certain direct or indirect owners of Subtenant, the Operating Tenant and their affiliates: (A) a loan from Wells Fargo Bank, National Association (successor by merger to Wachovia Bank, National Association) and Barclays Capital Real Estate Inc. pursuant to that certain Mortgage Loan Agreement dated July 17, 2007; and (B) certain mezzanine loans to certain direct or indirect owners of HHPS, the Operating Tenant, and/or their affiliates; (ii) In connection with and as part of the Refinancing, Subtenant, as trustor; and the Mortgage Lender, as beneficiary, are entering into that certain Leaschold Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing dated , 2015, between _them, which will encumber, Inter alia, the subleasebold UBDM93727 073449-193848 t3W&W01 - 65MSv.3 2MI4 02BUSMS ssatasnavowi £9oz E'4960M - (0m*mD Z M[61-6WLO LZL£6t7JEn '900Z `6 Axsnzgad ao VIH agl Aq paeozdds `900Z `6 etxsnzgad 30 sp P*WP S1£fISd 'oil asparll ssaulmg of lusurPuaury PuooaS = wW (,%!) 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The Sublandlord acknowledges that, in accordance with the Refinancing, the Lender is holding the Deed of Trust and/or one or more Pledges, which encumber, among other things, the subleasehold estate of the Subtenant under the Sublease, the sub-subleasehold estate of the Operating Tenant under the Operating Lease, the Improvements, and/or certain direct or indirect interests in the Subtenant, the Operating Tenant, and/or one or more affiliates thereof, and the Sublandlord acknowledges and agrees that each Lender is a "Sublease Encumbrancer" (as defined in the Sublease) entitled to all of the benefits thereof under the Sublease. 7. The Sublandlord agrees to deliver written notice of any default by the Subtenant under the Sublease to the representatives of the Lender (the "Designated Representatives') simultaneously with sending such notice to the Subtenant. All notices to be sent to the Designated Representatives shall be sent to the following addresses (or such other addresses as may be designated by any of the Designated Representative): To Mortgage Lender: Column Financial, Inc. Eleven Madison Avenue New York, New York 10010 Attention: N. Dante LaRocca With a copy to: Dechert LLP Cira Centre 2929 Arch Street Philadelphia, Pennsylvania 19104 Attention: David W. Ford, Esq. Facsimile No.: (215) 655-2647 Column Financial, Inc. Eleven Madison Avenue New York, New York 10010 Attention: N. Dante LaRocca With a copy to: Dechert LLP Cim Centre 2929 Arch Street Philadelphia, Pennsylvania 19104 Attention: David W. Ford, Esq. 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[lulls pun •st&lsstl pur s.lossa:mans S)! pu11 plolpuQlgnS aq) uodn guiptitq aq hells a)E31jj1)aaO snlj, •)uotunAsut alflu!s r a)tU}lsuoa Ilegs nglagol gaigm put lilac'SUO ttu 59 3n113011a (Ili?l aq Ilut{s gatgM jo gara `suudiolunoa 3o aoqumu Auii ui pa)naaxa aq Autu a)Sogjjao stgy 'riwoj!lrO jo ale)g atp jo smrl oql Xq pau.tan013 og hugs a)eag!uaa sigd, •os op o) paz!toglnv put; paiamodtua sI plolpunlgnS aq) lo.11egaq ua a)ratTglaD s!tll 8u!lnoaxa lunp!n!pu! aqy •os OP of Pal)1)ua st utalp o gat,a leg) pun alt:og!mD s!q) uodn ftLl lw all ll!m su8lsse pttr SJOS aoans aAnaadsai i!agl jo qat a pue 'aapuxl gnno put, 'sagl)ug pjg4gsV aql `SdHH )eq) sma tllu pun spuelsaapun piolPuulgnS aq) PUR '8u10utUgMd aql q)snt uor)oauuoo ul P0.10A113P ft!aq s1 0l1?3tl!ua,3 sltl.L •6 'H1.1INId u! s)saia)u! toqumtu agz3o %001 umo (legs AjqupdwH paojilsd `a�;suliai Mans gu!mollo;l •d)!lr.)idsoH p103gsy o) 11 Sjuatu)saAUI III VS111d Aq Ploq H14WId u! )saaalu! tagtuaui %gZ'$Z all) jo tajsuwj atll smolddu ptiu soSpolmoujou plolpuvIgnS ,Suiiut>u! j2N aq) .1•o and sd -(%t7L' I L) f4!lu)!dsoH P.lo3gsd Put (%W'80 DTI 's)uaul)sa,%UI III NSIHd uaam)aq ariuuan )u!of r sI I•IFIWid lt,t;) put kpado1d atll ul lsajalui plogas>;algns aqt 10 Wumn )oa.1!pu! %001 all) s! HH6VId Iny sa8palmoulon plolPutlgnS '8 EXHIBIT A Sublease Documents I. Sublease (Hotels I-Xn dated as of December 31, 1994, between SENCA Palm Springs, Inc., a California corporation ("SENCA-PS"), as sublandlord, and Tlie Community Redevelopment Agency of The City of Palm Springs, California, a public body (the "Agency"), as subtenant. A memorandum of thereof was recorded in the Official Records on December 30, 1985, as hatrument No. 293742. 2. Supplement (for Purpose of Conforming Legal Description) to Sublease dated as of December 3,1992, between the Sublandlord (successor in interest to SENCA-PS) and the Agency. 3. Amendment of Sublease dated as of November 5, 1998, between the Agency; the Sublandlord; AP/APH Palm Springs, L.P., a Delaware limited partnership ("AP/APH"); and the other parties thereto identified therein, a memorandum of which was recorded in the Official Records on November 5, 1998 as Instrument No. 487613. 4. Assignment and Termination of Sub -subleases dated as of November 5,1998, between the Agency, AP/APH and the other parties thereto identified therein, recorded in the Official Records on November 9, 1998 as Instrument No. 487611. 5. Assignment of Ground Sublease dated July 14, 2005, between AP/APH, HH Palm Springs LLC, a Delaware limited liability company {"HHPS") and the City of Palm Springs, recorded in the Official records on February 14, 2005 as Instrument No. 2005-0565202. (Copies of the Foregoing Sublease Documents Follow) UBM"727 073N94"PS B-1 (hrd=01. 0409350 sswesne'rool C90Z C ASS606S9 - 1 0=7pAID Bb8f61-6"UO LZLf6£ZIUHrl Plogasnolgns atll 'nqn jaiui 'xagtunouo ll!m gottlm `tuagl uaanuaq `S l OZ ` +�9 v J poll9p Oullld om xcd puu luatuaax3V Mynoos `slua)I pug sasoo�I jo luottnt$issy 'lstuy Jo PaQQ Plogasua7 ululxao legl oiui SuTaalua on 'ftxulogouaq sa 'iapuzq aSt!Slx Vq ato pus '.xolstua sa lueualgnS 'SuTousuga-d agl 3o lntd su pus tp!m uogoauuoo ul {ll) '.sol'Djjgp .Hato jo/pua 'lueua,I, Supaxad0 otp 'SdHH jo slamiw loaxlpul xo loaxlp uws mo of susol ounm=Qut utupoo (g) Puu `LOOZ'LI +lint POIaP lu3utOOJ2V uso-1 ogu2rvow ulelxaa lvql of luensxnd -oul olulsg lBag lslldaO oxag sAial Pug (uollaloossV lauotleN `Ama stnogosA& of xaSxam Aq tossaoons) uogalaossV IauogeN 'a[ttag OSxe3 STIOM tuo-lJ col B M salsllll;s xlatp pus lusuo L Suptuado ato `luouolgnS Jo sxaumo loaxlpul xo loaxlp ulUjJOO of (,,.tapUn, se utaxag of pa=jax axs 'suStsse xo/pue sxossaaons aepoodsox xTagl Tim mTo2ol 'axlnboa Am lxaluoa oqj se 'Llantloalloa xo/pus rtlisnpinipul 'algaogdde so 'saaatsap xo soluijUju aAgoodsax xtagl jo Am xo/pue sxapua-I auluezzayq liv Pug duu pus xapuarl asuslxow agl ` .8japuaZ oulauzzom, alit 'SUStssa xo/puu siossaoons Auu xUyA xatpo2ol) xapun-I a$sSlxopq agl opnloul lou auto xo Avux gotgM ulaxato toro las sxapual all; utolj (,,sueoZ amnezzayrl„ agl'suaol Hans) suaoT autuszzaut axoau xo ouo (q) pus saaulllgja sly pus lueualgnS of (uxapua l aSaS; tojq,, agl 'suSlssa to/pus sxossaoans Aua tl)lA raglo2ol) 'oul 'juiousuil uumloO tuog C,uuo-I a2val.XON„ ato) usol aSs$uotu s (I) tlltm C,SulauauUoW,, oto) lAoToq (g) Pus (V) ul paquosap sueol all, Suioueutgax axa salellg3e xtagl jo uleuao pus '(, Jueua jL %upsxad0„ agl) Axmdtuoo ,11411zquTT pall axaemelaQ s 'D-II tpnotuspod SUI OHH 'lueualgnS {I) 'SIOZ `bZ AxstugaA angWJJO Jsgl paslnpu uaaq seq PxolPuulgnS oxLL-(„dl.tadoj,, aql) enuagInD `sSuudS tuTud ut AuA& uoXupO 71mbt(P.1 Inn 888 le poiwq puel,Io asgalgnS paoua.taJat-anogs agl xaptln pxolPtmlgnS agl sl poug!sxapun atLi, •(molaq pougap) xapua,l goea (ill) Puv '•(„saliqua pjojgsV„ ato 'IClanilaaTloa) sal gUju angoodses xlagl jo tlaua Puu 'C AllclldsoH piolgsV„) dltlsxaumd palnutl olWA1310Q a 'dU19UH?UW d (IHIEK1I'I AZI'IVJUdSOH CD109HSV PIM '(,,HHTAiI T,J Aueduxoo AITI!cly l lall'mll axamulaQ a `OZZ ONU(I joH QNNriII0IIi LIIId (ll) `(„ IucualgnS„ aip `Alanlloolloo) suSlssu pua Simmons sit pue (.,Sdgg„} Ausdutoa Alillgel[ palttutl axe,tnelaQ a `OZ'I SOIL aS N'JVd HH (!) :O,L -C,ascalgnS„ otD'paluatualddns pus pouStssa 'papuauta 6-9) b86T `I C xagtuaoaa polap 'luaualgns su `(sTuaojiluO 's'SupdS ruled jo ,i;tO aril 3o AouaSV luatudolanapaZT /Cllunt=a;) atl,L of lsaxalut ut jossaoons 'digsxaulmd palluall ajumulga a "d'I 'sduudS ruled Ilddfdd of lsaxalut III xossaoans) (molatl PauUaP) SdI.1H Pun '•(,,pxolPuulgnS„ agl) Pxolpuulgns su '(uollasodaoo " uiOJTIBD u "Oul 'sSuudS luIsd vDNgS of lsa.ialul ut sossaoons) uotluxodioo Tsdtoiuntu 1: 's8ulxdS ugad ,To AI!D oq L uom4aq (Ly-t slaloH) asaalgnS H)l 21lVO7,3IlHao 'IffddO.LSa Q`U estate of the Subtenant under the Sublease and the improvements located on the property (as the same may be modified, amended, supplemented or restated from time to time, the "Deed of Trust"), which Deed of Trust is to be recorded in the Official Records of Riverside County, California; and (iii) In connection with and as part of the Mortgage Loan and the Mezzanine Loans, the Mortgage Lender and the Mezzanine Lenders will be granted security interests in the direct and/or indirect interests in Subtenant, Operating Tenant and certain affiliates thereof (individually and/or collectively, as the context may require, the "Pledges"). As a condition to the Refinancing, and in reliance thereon, HHPS, the Lender, and the Ashford Entities request that the Sublandlord certify to the HHPS, the Lender, and the Ashford Entities, and each of their respective successors and assigns as follows: 1. The Sublease consists of the original agreement and the amendments thereof and supplements thereto that are identified in Exhibit A, and the Sublease, as so identified in Exhibit A, is unmodified and in full force mid effect and constitutes the entire agreement between the Sublandlord and HHPS. A true and complete copy of each such Sublease document is attached hereto as part of such exhibit. The Sublandlord acknowledges that HHPS is currently the sole subtenant under the Sublease. 2. The current term of the Sublease commenced on January 1, 1985 and expires on December 30, 2059. Under Section 2 of the Sublease, upon the exercise of the Option to Extend (as defined in the Sublease) the Master Lease (as defined in the Sublease), the Sublandlord and Subtenant shall extend the term of the Sublease by written amendment to that date which is one day prior to the new termination date of the term of the Master Lease, as extended. 3. All rent and any other charges or amounts due under the Sublease, including the most recent payment of $1,072,808.00, have been paid through December, 2015 and there are no unpaid amounts due from HHPS to the Sublandlord. 4. There are not, to the Sublandlord's knowledge, any uncured defaults on the part of HHPS under the Sublease beyond any applicable grace period, or any events or conditions now in existence that will, with notice, the passage of time, or both, constitute a default on the part of HHPS under the Sublease. 5. The Sublandlord is not in default of its obligations under that certain Business Lease No. PSL-315 dated February 28, 1994, approved by the United States Department of the Interior, acting, pursuant to delegated authority from such department, through its Bureau of Indian Affairs (such bureau so acting for such department, the "BIA") on July 23, 1984, which approval was modified on August 20, 1984; as amended pursuant to (i) that certain Amendment No. 1 to PSIr315 dated as of August 10, 1995, approved by the BIA on October 13, 1995; (ii) that certain Amendment to Lease dated as of October 28, 1998, approved by the BIA on October 29, 1998; (iii) that certain First Amendment to Business Lease No. PSL-315 dated as of April 7, 2004, approved by the BIA on May 26, 2004; and (iv) that certain Second Amendment to Business Lease No. PSL-315 dated as of February 9, 2006, approved by the BIA on February 9, 2006. LIM2393727 073449-193RU 2 Gudere0i-6540955v3 20631440.2.BUSU rSS ss fas(TiTTO"I£9oz E'ASS4Q,k59 - I UUJU90 MC61-OKLO LZLE6MGUII Lb9Z-999 (S1Z) :•oHalnut908d hsa `.90d •M pinaQ :uouuauV b0161 stuenT,isuuad `gRld(opvl;gd Pa-z►S qa-Tv 6Z6Z aa;uaD Wl[) d'I'l uagaaQ :o; Adoa u tptM U030WRI a;usQ 'N :uopua;;V 01001 xxaA ,+n M `410A A%-)N anuanV uostplRW uanaTg .OUT IlgtouffmJ uum100 :Japua7 aunmZZOW oZ Lti9Z`S59(5IZ) oAlalttutsogd •bsg `;4j03 'M p;nuQ mo;juouV W 16 T UPOATAsuuad `g;gdlalRlttld ;aaAS qO V 6Z6Z aAu2D uit� d-I'l W13aQ :o; Ado* u giihl mown alugQ -m :uaT;ua;;V 01001 3130A MOM `3ltoA MOM anuanV uosTpyaW uanal,l •oul `lBtouuuirl utunloD :xapua7 a�u�pny�l aJ" .(anT;u;uaso.tdag pai9u9i C[ aq43o AUR Aq pa;guWtsap ogAvw su sossasppu satpo Bons io) sassaippu 3uimollo3 aIp o; ;uas aq TTugs saAguluosoida-T pa;uugmCl atp al ;uas aq o; saoT;ou py ';ueua;gnS aq; a; aagou >Tons SuTpuas q;r� �lsnoauB;Tnwis („sanpu;uasaada-d pa4eu2lTsa(l„ ag;) Topua7 asp jo sant;u;tTos ida.T oxg of ose*TgnS QED xapun ;uL,ua;gnS aq; Aq;lntjap Am ,To ooltou uallpm aantlap o; swift piolpuyaTgnS axLL 'L asgalgnS oip lapun joamig s;gauaq aTp jo Hu of pal;qua (asuolgnS oip ut paugop sg) ,,taaunuqumaug asgolgnS„ le st iapual qxm ;ug; sow& puu so9palmouilov piolpuulgnS oy pug `joaaaq; sa;u>lljju aiom so auo ao/putt `;uuua L fuT;uiado ag; `auuuaagng oip ui s;saza;uT ;awipul ao pan utupoo to/pug `sIuauiano iduq aip `osuaZ But , Su ;e tado alp aapun ;uguaT, T;Baado aq} jo olvisa plotlaseolgns-qns aq; `asualgnS aq; iapun ;ugua;gn5 atp 3o opl" plogosgolgns agti `swig; .tatpo Suoutu `.zaqumiva gatgm `sagpold *.Toro ao auo ao/puu;snty jo paaQ at{; Suiploiq si mpua-1 otp `Suiouuupa-T atp tp!m aouuptoxm ui `iggl soWpojmotnlou piolpuvIgnS ati.L '9 8. Sublandlord acknowledges that PIMHH is the 100% indirect owner of the subleasehold interest in the Property and that PIMHH is a joint venture between PRISA III Investments, LLC (28.26%) and Ashford Hospitality (71.74%). As part of the Refinancing, Sublandlord acknowledges and approves the transfer of the 28.26% member interest in PIMHH held by PRISA III Investments, LLC to Ashford Hospitality. Following such transfer, Ashford Hospitality shall own I00% of the member interests in PIMHH. 9. This Certificate is being delivered in connection with the Refinancing, and the Sublandlord understands and agrees that HHPS, the Ashford Entities, and each Lender, slid each of their respective successors and assigns will he relying upon this Certificate and that each of them is entitled to do so. The individual executing this Certificate on behalf of the Sublandlord is empowered and authorized to do so. This Certificate shall be governed by the laws of the State of California. This Certificate may be executed in any number of counterparts, each of which shall be fully effective as an original and which together shall constitute a single instrument. This Certificate shall be binding upon the Sublandlord and its successors and assigns, and shall inure to the benefit of HHPS, the Ashford Entities, and each Lender, and each of their respective successors and assigns. When used herein, "including" and the like are not limiting, "or" is not exclusive, each gender includes the other genders, the singular includes the plural and vice versa (including in the definitions of terms), a reference to an "Exhibit" means an exhibit hereto, and all exhibits hereto are incorporated herein by the reference thereto. This Cmlificate is executed effective as of the 24th day of February, 2015. ATTEST: s ie s Thompson City Clerk I.MM39372109340-194948 GardfVQI-6540955v3 2063 E440,2,BUSNESS 4 SUBLANDLORD: THE CITY OF PALM SPRINGS By: DaviRe�ady City Manager APPROVED A5 TO FORM: - city N £,ASS6059- tompigo III SHE61-60KLO LilE6£MUT [mollod sluautnoo(I asealgnS Suloftoq axp jo saldoa] ZOZS950-SOOZ 'ON luatut 49UI So 900Z'i7l Ajvruga3 uo spooat lgl3tjo aql ut pop -Toms `sSuudS uqrd3o Allo aql puio C,SdHH,,} Ausdutoo Allllquq pa;lunI axen►BIaQ a `o'I'i sStxcYdS lulBd HH'H([V/dd uaannloq'SOOZ'til Alnf polBp osuolgnS puno D3o luatuAissy •5 ' 119L8ti 'ON luattm SUS se 8661 '6 xagtuanoK uo spaooag luloW oTTI ul papmaz `ulomtp pogl}uapl olaaagl saved aatDo otp pus Hdd,'dd `(ouaSV atp aa0mpq '8661 'S jagtu0noN30 se papp sosualgns-gnS3o uolluutuua L puB luautamV •b '£19L817'ON luauttulsul 99 8661 'S lagtuanoN uo spaoaaU iBlot.I30 aql ul papionaa ssnn galTlnn3o uunpuszouiaw a `alajaTT; pa'3lluapl olazip sallxBd toglo atp puu '(, jldV/dV„) dlgsaaupud poltutEl mmmujo( u' cl-I `&RuudS mlBd Hdd/dv `•p-IolpuulgnS atp °,Saua9V aip uoamlaq'8661 'S ,t0gtaanoN30 sB palBp asealgnS 30 luatnpu2mv £ •Aoudsv aql pui; (Sd-VDNRS of lsaialul ul jossaaons) paolpcmignS aql U2O^qaq `Z661 '£ Jagm03a(j3o so palup osualgnS of (uopduosoa IT;Sa7 Suluuo3uoZ)3o osodtnd xo3) luatualddng •Z 'ZPG£6Z 'ON luauttulsal se `5861 `o£ Jaqutam(I uo spiomd lBloB3o aql ul papiomi sm3aa.tatpp umptmiotuatu d •lumjgns sv %,SauaSv„ aql) ,(pal ollgnd B Imium3lluo `sSupdS mpjjo f4lo aTT jo AouaSV lumTudolanapa-1 14ltTnunuoD atLL put3 `ptaIptrelgns sB `(„Sd-Voli3S„) uoll'DJ0&W VUU0JlluZ) 8 `•ouI 's$uudS ,u1Bd ` DNHS uampq1,861 11 £ iagivaoaQ jo se palup (IX-1 slaloff) asualgnS • 1 sluatunooQ asualgnS V JLIEIMH oungdergd DeiM Om JERPwbw a Uw M, M ft"Lill--04 AST. EDT iHatsls 1-XI) r+:s Sublease .s made as of -zae 31s: day of re_ember. i981 by and cetuee n SENCA Pales Springs, Inc., a Ca:;fsrnia corporation having an address at 650 South Che::/ Street, Suite •620, Denver, Colorado 60222 (hereinafter referred to as the "Sublandlord"I and the Community Redevelopment Agency of the City of Pa1m.5prinrs, California having an office at 3260 East 'Iahquitz-McCallum Way, palm Springs, California 92263 thereinafter referred to as the "Subtenant") with regard to the following facts: A. Sublandlord is the lessee under Business Lease No, aL-315 :+hic:i is on file With the Bureau of Indian Affairs ttYetnet WLth a cer.d:n :e__er daces:' May 1. 199; exec tad ay��� t a iesses c..erz;:;:_s:: are cb:ls-Lively referred, to ::e:sin as ":7as,es Lease." a. Sv:)zenan: tes::ts to sublease a portion a: the is:a ease no:_ Es:a:e zmat the Sublandlord and Sublandlord '.as aSreed to s.;t:esse sane to the Subtenant upon the terms, __•: _nan :s an= _: _.o:.s ne: enn set «orth. Da,k then impartros MW 29, 2WT 11,04 i W4W A9T, EIYT .�Ga'lsi iorswv w�I.E [oaz'sa �W amr .z a1;: :o WJ&2 04. ;o aaei� Aa'.j Ca aua ST 4274n aapP :741 Cl auaePuaCF a !z ss4; ;o scaaa s4. PUB -axe TTV45 put, p:o;`r-.:*iCn5 'aUaZx3 on U072do 642 ;a as-,3.3axa au_ ._tn ATanoaus.Tnw-g •PUa2X3 on uoT:do a4a as:a.axa /.Tau;: iiaus :1 394a ass-5v Aca.a4 P•ojpugigns •i..Puaax_ oa Uo..Zda. al;" -I s.¢aA {c_I 6AI l-4lUan. 30 poTaad Q 1o; assa] istssw au. 7o u:aa a:;: ;::atxa C: .:g i�-- _ i�- sue_ :: a_t :ryz &=T$; tz-Z 'sa- _. PC -- - 'Dire! .a:s'r;( o::: - pUe U792e4 paP7n0sd aq popuaaxe 304.:n; .o p4%2uTLj-e. :auoos sssTun 6SOZ 'oE jagw000e uo pua 7YQ4s pup S961 'T 1.;rnurr Uo aaUawwno TTv4s ase97gn5 a7R11 ;o Won 041. 1 ?) 1. .wjQ , aye, 'Z + •[„sas7ma�d pasTWOO. 941) 010384 pauaeaav o a7g74x3 uo psg7sasap d71t7n -a7.1pd ajom d�aadoad Tvo1 u7ea.eo 1e4a P=oTPUPTgnS a4a wo1; taslva pug sa.374 Aga:84 gUvuoagn5 put aueuaagns a4a on sas -Twop puprcoccalans Agaaa4 PJOTpuwTgns •asaalgns It :snoT7o; 58 08169 a.asay 98:139d 84a 'Pv6P27n0UaZV 4"84 51 ;;z74P% P A*%:a7o7„ns vUl 'U7a:a4 Fs%t;19 vro s.uruse.c;, ;ar.anw 8Q ;o Uo73vjvP7suo2 U7 3iiv-p_.Lf3 i.j MON •�wWd mr u�� DwIn Chen JgR parume M r2e, 2w S1a04(Mrw AgE EDT Master Lease as extended. Should Sublandlord fail, to noti.y Subtenant of its hsving executed the option to Extend on or before that date which is 19S Ways prior to the expiration of the t$tm of the Master Lease, Subtenant is -hereby author- ized and empowered to execute the option to Extend on behalf of and in the name of Sublandlord. 3. Rent - (a) Subtenant'shall pay in advance (i) basic rent ("Basic Rent") during the test of this Sublease in an amount equal to Four Hundred Seventy Thousand Four Hundred Fifty Dollars (S470,450) per annum which shall be payable in full on the twentieth day of December of each year during the ter, he, ! Cz.-rerc-n, cn December 20, 1985 plus M ) addi- -- -- ="_ and a:' ran: C. =er.er._ rent - - ._ _ . a-! :axes, assessments and any other payments of any kind or nature peya.+e urde: ne master Lease relating solely to the yem.sed premises and cry and all business activities con- asa:ed on Lae zem:sed Prent.ses. The amount of Additional =s :-s_ snail oe Tayso:s under item (ii) above shall at w_. __":es ce e:,_a' ne greater of either the guaran.esd er.-ua1 rent =r .ne approp[iate amount of pertenta;e P.11 0' r10 3. DNfi dart ARPONrs UW29,=71104G!Il WAG%EDT � 1,aa'�svna�+io 1t1�t� 1soZ'ex�1l 1 twio UM �MQi$ti ( : i � ure:JeigC�:1S i� a pa::ataj eavp jo saslpuT aria anss: -ons Aug jo joQP7 jo auownaedad sa:q:S pal:uri a9z ;:, sos:s:_ -e25 jogv7 jo ngaang aga suvow ,.nea:nE., {") :TTgnaid TZvus su072TuS2ap 5u1nc77c; aka 'Q;nwjo; aya 6uj4j ddv ui •nclaq (0) ud2.:5e.:v'-4'-: ,.: ts.-s :a. pa'.A .t? a= 'szF qa3^ aouepaoaag,uT auaii TvuoTATpPY ;o :uawded .apun: c. PUT aseaZ jaasaW sqa japun paatnba-3 se e:dTaoaj csQJS 70 96uT _Iunoaov d3eaaaoa5 aria pug pioTpuvtgnS oa :Ywgns PUP urvago ao/puv a]eda.7d oa saaa6e pug saueuaAao auvuazgnS •aaep Bons ;o se paagaoad aq TTegs auag Tvuo7zTppti Aug pug Woe otse9 gzuow v Jo xvp zsaT io as.37) 941 aou sT 14=74" aaep g uo pug jo ulbeq TTvgs osvolgnS sTga ao waaa aga 2P41 auana 1 aga uY •aseal aaaseW aga iopun olgvded pug anp tawoaag awes us4m puvwap uodn oTgvded aq TTvgs anoge (TIT), wa3T :apun aTgvdvd saunowv Aug pue aued 7vuc7lTpprl duV anogv I {T11 wa:T japun aTgvded pug anp swosaq dam VNZ caunowv Aug :suTV611 pasTpaia aq TTsgs japuna:ag dTTenuuv pied s; a�svg ;o sunowv at;a =gqa '.an o 'FapTnc:o 'a6ea� :g_gvW aka os C wnpueppll jo Cuot6TAo.d pug sl:aa: a;,;: ;*pun j aTGedad pua anp sawooaq pug paaPTmTgo 91 :at;.Ts sg zuaj �4+�k12QP i � owtftwtSla! bnvti Wen .IFR R�hiera Mar 29, 200711:04 QKtr44 AST, EDT ' s1 "Pr Ice Index" means_ c!se ptvised Cjnaumers :n4ax sar Ur zar. '+gage Ear' rs and Cler icai Workers, a!' +tuns, Lcs AnYe:.as. Ceii°ornia U937A!DO, pubiaa:.ed :rcm t:ire to t. ae by ':►e 6ureau. or any = _he: measure herea: _es employed 5Y the Bureau in lieu of such price index :hat measures the cost of !ivinq-nationally. (iiil "Current Price Index" for any yearly pe►fod is the price Index issued for the month of December which is the last month of each yearly period. III] "Base index" is the Price Index issued by the Bureau ,ar :he month of December, 1984. Ivi The expression "yearly period" means was ............_fir y�� 3-__f't _ __ _ 4�: ��i�._- •-�. ems. .�. �... .. � r'�6 1 :; ..,e ;,::r:ent Price Index for any yea:!Y Fe::od :s greater t`a:1 t-te 3ase Index, then the Basic Rent. we;:zns:lg Est:+ ..e ::cst day of each yearly period, shall be .icreasad ss�s ;.-cpor:ion that the increase s:1 :he r "s F.. _e _errs to the Bass Index, 9uc1.1 tl:_rease the extent.thot it exceeds a aias_ar S. O b Chre .1MPwbn MW 20, 2WY 1119 c1Af>G M AST, EDT jM'L8Y tQjM W4t LODi'$C AYj LNKWRd" PWIDPPW •s .basso!, pup .,Jossal., sr.on aq: 1- , z;v e:: sas:wa.'d ;,asTwafl 6x;2 as a.:is: sa:%qw aya ;o suori]pvcz pug zuO-r.:n:.d 's::sa: 'czuau:asba 'CZURUaAo:) nq2 {1 ) 0jG.:a:«C9 Czr;aVBc 117 aAtJ2P aspa•] 38:sgiV atl: :a3U1 ssrssaj 814: ;Up '"S"C d pas:wa(} ay, oa aagTaa J ew Aar: s. ;F;Csul AIUo Ire 'ecga; •aceojgns sryz pug away ;a.sgW 941 ;o CUOTajpu02 pug eu�saa 841 411n aaue?sc=oe ul astnJa42c pup esod.nd Jat2c ou Jo; pug 82097 :O'ASFW 241 ;o t wnp ..Uappv ;o SUCISTAoid atla yarn 2muvPJo:;*g ut sastwald pasTwaa ay7 asn-03 58836F PUe SIU2UanoZ WOUD WS ' -pound ATJgaA 6ulpaazaad Aug 6utsnp pab34114-o 2Uay Otspg DO 30 ssa=xa u: tot UVg3 3aavaj5 sT 19143 aUnowg uv Aq pasvajOUT eq 2uati o7seg aya TTa4c Juana ou uz 16u1o6810; 044 6UTPueIs41Yn -JoN 'pasaaJZap aq :au 1Tp49 WOO DTM sqg vaus 'gasvaJ'-)ep po:;sd 4tiea4 tuanbesgns -AUp JO; xt+pu2 ao;.:d :uaJJMD pug asUctues bulpezoid i;3 U; ps_v.a *Tns at;, =a Uor: -eo.jdde 4q aA:.Za;;a auo3a; Tie4s esga;.t:t ;:p s •potJad i .'.;JvaA Jo:1d Aug UT P049TIQp:sa 'an;_sa;ke ustt_ 'asfaJz'a{ i � .W3',L8V140rLDLADL'BZ�I � ' dIW �s wed DWO, Ohm jrEft Prabwn MM20, 2WY 11.04 0004 AST, EDT as used in the Master Lease shall be deemed to refer to Subic:,_.-rd and s.!:.enant hereir.. reopectiveL„ and the r i;hts drd �oiigations of the Lectsor and t:7e :.4s3ee under :he Master tease shall be dcamad the rights acid ooli- gat=ons of the 5ublandiord and suotenant respectively hereunder and shall be binding upon and inure to .tie benefit of the Sublandlord and the Subtenant respectively. As bet- ween the parties hereto in the event of a conflict between the terms of the Master Lease and the terms of this Sublease, the terms of the Master Lease shall control. This paragraph 5 is incorporated In this Sublease for the benefit of the lessors under the Master Lease so that the lessors, benefits under the Master Lease will be preserved and main- tained, and to insure that the obligations of the lessee vn, er _he master lipase cnly J."ofar as they relate :o the .-.. :e +err:r..ed `_ the r'-.`.want. Nz n «:a.. ir_., :1 tee':sj release .fir .__._'«.,.. .._ .:3 _...=•:__.:3 _.:�'_: .'4 Vilna:;r oaf:3. 6. Perfor-nanew Under Master Lease. Subtenant cove- n*.-zs and warrants .-a: t: :.as received. read and approved a :�:_y executed c:py o: the Plaster Lease, it Eully under- zzinds and arreas to :e su*)ec: to and bound by all of the ::vs -ants. agreements. .erns, provisions and conditLons o= :a;se =-:y .:so!ar as sa^e relate to the Demised rac_ses, and f_r%ner czvenants rac to take any action or do aatd . 1prAt CMn JERPelbsss ihr26,2W11s) QM;WWEDT 3:Q3 :L@V t�LL l�OOL'9x�1 aG. C3 3uQns:nd poeTWap AaJadOJd Va. bU:-jlcL::: aul- GSn+a sa.s2w at;z o] auensJnd pasmap s. L•=:ur t.:44c:d 77a: ;- uo:m.,od g 47uo $ssadwoo assaTgr:S s:_. :a:_, sas:uasd •ad aya 3e43 abpatnouxar osaisq c::::vd aq, (91 --a_- ;a ;no .x.' :87J ffes -OJQ JO; SWTP7.? 3T4 pug Aug UuT96P pug wzJ*; 9967L" 94 AZZOd Jagao 014-4 angs pug P704 'A;TuWBPuz 07 saaJ61? faJgd yoPa 'ng7 oTgvzTTdde.dq paaaTwJad auaaxa at;,. oa 'pug assaignS ST%;a ;O. uoTII?wwnsuoz at;'3 tiiTm uo7-4mauuoa u. JspuT) Jo JaxoJq Aug gain ajesp s84 A22ed J941Teu IV41 jggZo gzes oo QueJJeM Pug auas*JdaJ 010204 oajaJad agtL cF aqo 0 .1 •;Oasaya 7Z 87ZT22v 427n aauepsaaog UT aseal JOasow eq3 :*pun s:ossaj at;-4 oa asea7gnS sTq> ,spun psoTpuvTgnS aqa TO asaJazut ate] ;a auaWubTssg ue so- aaelado 7=g4c ;nq 'asFaTgnS 6TUI ;aauPO oa 4AJ9s sou 17ettfi 8978'1 J$-4seW aya ;a uOi_gutlr:a± •Japuns;agz a*ssal eq: ;o „rd ay, uc 92081 ati: io ruo::iPuoo JO SUOISIAOJd 'CWJOI 'r.7ueWaaJISV '$=iOliinC.'! $LI". =L+ I.ug yC 40eaJq JO aar.11e2 *y: u: ;;nsa? rTnOr. _;.Tyr. :*P I." wJa;Ja' O7 TTPi JO .Zv uc 1►1tr:ad JO 1,(®'18V �p3r4D 11K�L .t40t''6L �j -_ } *XF4AId kW Uu* tm wrdldo�at DO& Chrn im pat ma Misr �. 2007 71:04 (3MFdL - Master Lease is cefer;ed to herein as the "Additional Proper:t",. The Additional Property may _e subleased and davelcped by the Sublandlord or by ot" r entities provided that same is performed in full compliance with the terms a° the Paster' Lease and the terns of any sublease affecting the Additional Property or any portion thereof, (b) Sublandlord consents and agrees that only a default by' the Subtenant hereunder shall allow the Subland- lord-or any other party, to terminate this Sublease and the Subtenants interest in the Demised premises. Neither a default by the Sublandlord or any sublessee under any sub- lease affecting the Additional Property or any portion thereof nor any default by the Sublandlord or any such sublessee under the master Lease shall create or cause a ze!a-:: .re ;Art t= _fie =--:eraM-. na:eu da . . Ne-gip_ ne ......tenan: 3 : f -..G:ena." t'S agents or their res_ectzve successors, heirs, representa- ,.ves and assigns. shall have any personal Liability with res;ec r�to any o; the provisions of this Sublease, and l.` the Subtenant Ls :n =:each or default with respect to its teycrd any a_-lLcable grace period under the :ease or ta:3 S.= Lease, Sublandlord shall look salely equ i _y c: .-e Sso:errant in the Demised Premises tar a r no DO& Cbm .ERPOOM Nkr29.20U7m4CellaiwAs Fvr �'�SY 403Y'Ip t� G4 l.4na `e�+�l UMUM '01 •A:s.a.cas a:;_ o= =arise.. aoTaou us32T]n 6vyAlS dq aavu6:s.; owt'a cs a-X': we-; I:- o:a3a4 sallied 041 se sassaippe :a„:c 4=ns :a ;02a34 1 o6v-d vo 4.=o; aas sassa3ppe aqa ae o:a:a4 sa:,aQd ayz ;o qo;a C. )CG:aga aotaCu u03213n 6uSnT5'40 *VVJ595ar au.; o:1 aa::: col; /teu A3aa0300S 042 se ssa3ppe JaL%o uang ao 'e:u:o;Tle:j uIri ZLZ ;Z ■—:tsJ Or �� �e�n.. �v� .r�r —r-- �- ... yaTgn ®oTaou due ;o ddoz Y •+Taujo_:p s.Amm vc! y=ns :o awns 6uTnt6 da3ed aqa 384370 dq pau6ls u04A uanT6 dl3adoid powaap sq TT242 saolgoN •gde36o3edgns st4a ;o suoTslno:d atp aouep30004 UT uanT6 aoTaou a uT polou6Tsop useq I DA94 dew sR ssuippe 3aga0 flans 30 anog2 paagas sassa3ppe aq-4 ae popuaaui si aT wo4n 3o; 'd334d a42 oa passa3ppe E ' 'polsonha3 adlaoa3 u3naa3 'TTvw poT;ls3a2 dq 4uac 3o Alluuos -3ad pa32nTTap 3a4aTa aq 1194s 3opunaaa4 da3ed 3842za dq uanl6 aq T7e49 3o dew 4zlg4m OoTaou AUV •ss03OON *01 •sasTwa3d plc ; a�a� a4: eT d:: n�a sa T ;o seal a4a. paao:ca zuai a au , uT TTe45 ase:Tcr.S s::;, 10 suoT=Tpuoo pup 62UCUDACZ '69:35: RIP 3apun t.:Tflcs:l sfjuvwozgnS o43 ley: psa:5e Pue p:,:_s:a;.:sn dlssa_dxa s; 21 •cn.pows.; s,p:atpueTcnS ro uala=z;xl.Fs 8047 1.Q3 `3.SV 1rtri�N7 ia4l WOx'��W MOM= am idww Dab Own Mu 21k 2OW 11:04 WWAST, Sffr L l . ' ndeTn i :v. :a) Nel:her the lessors under :`e Master Lease nor the United States, nor their of!tcers, agents, or employees snail be 11a41e for any loss, damage, or tn3ury a! any kind whatsoever to the person or property of the Subten- ant or' any other person whomsoever, caused by any use or condition of the Demised Premises, or by any defect in any structure' erected thereon, or arising from any accident, fire or other casualty,on or about the Demised Premises or from any other cause whatsoever, including any such claim or cause whether or not alleged to be or as a result ofsuch lessor's or =he United States' own negligence. Subtenant hereby releases and waives all claims against the lessors under the blaster Cease and the United 'States and agrees to sa:4 .aaazrs a... tic i.l:l_:ed s.a-.es free niz any w :: !=ate .. ^^�.r�.: P..�. d� .. �. ���r. A. .����r .�. :. ary c!a.:n 7er.ce by the lessors or z'e United States, for any loss, .image or :;s=u-y a; :s:::g ::cm the use cc condition of the ' emised Premises. : ;e.ner with all cysts and expepses ,n:!- ding, wtv%out :.mttation, reasonable attorneys' fees - n:wr red in cz--ezt .z t :herewith. iol _.._.-!r._-: n__eoy agrees to indemnify and hold 3�t:a: a.acd nern-ess from and -against any and all claims, 11. caoeder�d .. Deuln men ' d9iPa rtm IYIw?J%zw um4 eMT-o4AQT. EDT Ee m3j""Mww;4 Loot`wan tim4+ed irr MOUVAa PWJQPFMO .. `ZT :a.;g cAvp ISii uaa.;t; u3411A OUT. AUP uv ..=-Lr Tap put a.raoxe oA s:.0:8p •ssosssT 1.a:3F=sTzes Algeuosaas :.aueasans rug v::; cT :uawagjbv L'i Aq paavap;Aa aq i1p4s 1uawu.:oli4 uz:y„ 'sas:ca:d pactwoo au, ;o f auvdnaao s,]uauaagnS 6utJnp awi% Aup .v asaaTgnS %Tqa ;o w:3,3 aus ;c aauvlpq 914a :o; esfa j :a:5:01 pc_ Jopun s:assa, 814. az suauuJo.ze a-4atdmoa pug ;r.; a}per o-1 saa:bp aurma; DEW*-. ;G:S;11 ate.. :es�:ir .•.tea ei. .� :ot.v�s:*� �„i r`e_ aya ;c zusAa 04-4 ul •60oa7 351cow ;c uG;z:jTaaup: 'cy •acpatgn5 s?y� :o,'pup acpa� J&2"W ayq ;a u071puTw:01 laTT:aa :o uolzt::dxo oqz OATAsnr TTpuc IT ydeJbeJgd s;M. ;o cua;sTAOJd a4l (a) •602TW83d pasTwao 841 ;o Aouvdnaao :o/pup asn s,a::eua=gnS ;a uospal Aq voslad Aug tql :o 'wJa;jad 02 paaeSTTgo rT zuaue2gns aspaTgnS kT42 go cuoTs -IAoad 09: ;a uostal Aq 42TMA 06101 JaaspW Oqj UT pauT42uOa suaTIIpFUOa ao cuOTCIACJd 'swsa'4 's'4ua9uaa:bP 'sauvuanos a47 ro 4uv u:jo;sad o} :upua:gq ;o a]nlly; Jo; ecea> Ja2few aua :arun c�assaT fri 4; r:oTpuvjgn; mJ964 paaaacse aq aorta za iew uaTun c.u*wocsngxlp pup so&; ,1rAVU.3c.:F atgeu 'osaa: 'noises-w7; 3no421n 'BvTpnjavT socaoT 1a3'i�1f ro�i't� 10�1� G 1A0�'9rL �) . OJP4cfd Mr w43tw" oordfdortL+st Dr4n Chen JER pe kwre Mw20, 2007 91 dK OW" EVr request such lessors, and Subtenant Naives the prov:s:ars of an,,* :ew row or herea.ta in es:ec_ which may give Subten- ant any right of etec_.on to terminate this subteasc or to surrender possession of the Demised Prom. -se§ in the event any proceeding is brought by lessors under the Master tease to terminate the Maa:er Lease. By approving the foam of this Sublease, the Secretery hereby agrees with the Subten- ant that, so long as Subtenant is not in default under this Sublease; the Secretary shall not disturb Subtcnant's right of- possession to the Demised Premises and that Subtenant shall be entitled to peaceful and quiet possession of the Demised premises in accordance with the terms of this Sublease. 13. Certt.'icates. Each party hereto shall at any time R-= _par• As reques;ed by t`c o.~3; ;arty , zn _. _ .: _ _. s-:.east _s::»ant lull force and e.'fecc to., if there have been mod-i[icat:or•s -::a: .he same is in Rsl: ,force and effect ar. .modified and slat:fig the t-od:: it.t:cns. if any) certifying the dates t_ which rent and any ozne: charges have been paid and statiAq -rre_.`.er or rat. :a t:19 <rauiedgn of the person sig:r_ng tYe =_per oarty is not in default beyond t�= n;.ala_iole mare rertod provided herein in performance 13. Dab Chen JERMM Mar2g,so0'ttI:wQW4MA n".EDT jm ,j 9Y 1at!'Y61 to « 1Dw vj'" d UV uKID qMa . PWJQPLWW .vI U51SS2 ]aq;]n; 01A .USIJ aq. aA94 20U Tjet;s a7 ti u; aalbv Tjeus aassajgns so aeuS;ssv hu; (-1 sasmaid pas u:a_ au: oa a-jejaa Own sv ie;osui dTuo aseajcnS s;u2 puv..asa:; ja,Jcat4 041 ;o 9uot.Tpu00 put sauvuana� 's�saa o4a y0 T7? c: 012utpiogns pup .aa;gns aq TTvgs v=vs !%Rgl a;.lncid TSa::s asvajgns u0jadwnssv Aue 'aj0csat;1J.)n_ -asra; rVr/L/\ Pr• � Arrlr Prr s••.r� �f����r- _�_- i-YeP�� A v LL. zax3 v$iJ%1�-C pai►�J��� l��r ��'ri 'rr� _£ _ - _. r�_ -.j.S.^.^.a ii� .�aL'v?:.t.£ �.•.�:1 abaaj: � F"r. :8r� r-- rr� �. 2'.'..'1TS?i i5v.z u017dwnsse ue sa2n0axa eaubjssp posodoid Auv M .asQa7 ja.sVW aq� ;o pZ ajaj.jd ;0 suoTS _Tnold ay.•;o jje y�jn sajjdwoa .ueuaaQnS au.L [e! :yair+ parjdWoo uaaq aAPq SUTMOjTo; aq. 20 TTv .vq. PagTn -oad daJvd psjya a 02 sacjwajd pasjwaa a47 ;o uoTlaod v asnr jou .nq ;jv .ajgns of so asv9jgnS sTq. U61994 02 paj.:.ua aq TTpys aupuaagnS aqL -buIzzolqns o zuawuajss�r •Sutjvap aq Aaw sa.vo;;Tvmz Bans bujasanbGJ Alivd aka wa'.:r+ gajr. ssa4.o 4; uodn pajjaj aq Am 02ssa4 .upns:nd pa;o -A'Tag :uaws.2.s ::arts Auv avq. papua7u' SUTaQ :T *05ppTAOV% SA�J lew :Bu5js ::;. t;=iqM ;o .jnv;vex Uzns goys •:s ;: pup 'asrajerS rgga aapvn suo,.vbs;go s:j ;c .uv 20 �.Q3'�ftT3,j'�'y0:#4,U0�'L'E��I • � ..i -F UKk? twAo amddarpthd Ciwn chi JER Putrwn . . • A_,;�Tta;=- �.y.-; � •.�r�i �187" 11:8413�1'r-04119T. LiyT � , this duotesse or sublet the Dem:aed Premises uirccut csmptl:rig W:t.h the provisions of the :taster resse and this 5uolease, and without cbtainl:ig the prior written co"ent o ' Subiandlo;d. Subtenant and such further consents as may be required -under the Master tease, ` 1S. SeverablIitV. If any term or provision of this Sublease or the application thereof to any person or cir- cumstances shall, to any extent, be Invalid and unenfor- ceable, the remainder of this Sublease or the application of such term or provision to persons or circumstances other than those as cc which it Is held invalid or unenforceable, shall not be affected thereby and each term or provision of this Sublease shall be valid and be enforced to the fullest extent permitted by law. —a t--.:a t;7te—e e.:e_n :he pa::*ts Ler'e:= tn:! sra .. ze ^.e:rs, represe"itat;ves, successors dnd.;erm t:id assigns. Ary aq:cement the:einaf:er made shall be ineffective to cunge, modify. waive, release, discharge, terminate or effect an abandonment nereof, in whole or in part, unless suc.' e7:escen :s un ►+citing and signed by the parties ne e... R. 1S. a xdklW ld D"CMn jmpabwra Mar 28, 2W 1 tl* GW4XASY. Per t LG�'�.BYfD3�Q 40�� L /,AOZ'8Z � MD Woo •aT S ;Vp RDI;awy ;o Soa.-aS paaTun 041 ;o 5-ri ate. UZI^ 6�U'r�.r�.•.�i ui pan:_sucD s,zadsaj ZTg u; pug p8V.ant4-*&c 17114e S664=1-d_a ., 914u862 'SiaaT;;C aAJ%�adsa] ]Tat;. ;o We ;z Sa.F:j peZ:w7 a.'a '�olaaaul aga ;o Ai¢aa.laaS at;-. '9602-1 :a.sak aua ;spun s.ossaT acts ;o sat-4TiTgetT Jo/pup ac;: %;.Tn pa. -,au .'W_o Av.*% Aunt UT sT ao oti ansv" :G uo:ysar.b /.Ua 'Ta� nano ap:Ao a VlUJ02;jg3 io a:s:s 04'3 ,'c s•+s; -e: �i :•' eL. L'.�ri ems.: i. �.:wi L': �S.-_.:L-;. fi��v�'a�� � i !.: rv:.:v:t�� 6� � its gwea�:•:�S a' � ..ice :...��c� __ •Zier.aTcmS G7... :: SBS:�: . vim: oa ajejjdosdde ao A;gssaDau aq Apw a¢t;a uat.ce Jau.:n; q=rs aNga TTegs put cauawaaibe so sau&wn.atuT g2uawnoop ]aq.an; gnc 'AjTsrO=gu .7T wso; OTgVp�Caaa uT 'santTap pu¢ &.Hoax& p TTays 'Aaagd ]agao aga ;o Asanbaj aga uodn 'wag4 ;o goea Intl &Oise aaasaq sallied Gqx ay.anj '61 •oaa:aq sopped ag9 U99AA9q auasr0336e a,;Taua aga aanaTZsuoo TTT�+ ';84a3602 uaxga 'goTgn ;o gaoel Put aavaTgnS Shia ;o T¢uT5TJo u¢ aq ZTtys gOTgn 30 goea 'eaaadaaaunoo 8ypipdas 4T pair.=axa aq AM oe¢a;gng 9141. 'sa3eoiaaunon •81 •aegaTgnS sign ;o sw.-aa aqa 20 :up utvidxa /.;lpma o: p01cas; aq aou TTsys pug pepus2us :a:.' Oat pL*t 1 ::; :o aces;La�ue3 .o; papn=ouT vie asgtTgnS s:«; 9461916 -¢sed au: c: suoT:dwD 3 pull SUCTaaF_ i y � ' iO3'18b1�}3J1#D4�f•�LOQL'BE•w�i - wp4�d?i31' * rwyJ u�0 Dsdncbm JERPOftwo Me 29, 2a711:4 QMrm Aer,, EM those r,39ulattons which are applicable. to atiotted India.^. Lands. IN WITNESS WHEMOF, the parties hereto have Caused this Sublease to be executed as of the day and year first above written. SU$4►NDLORD SExCA Film Springs, Inc., a California corporation Y SUBTENANT: Community Redevelopment Agency of the City of palm Springs, California J 17. Darfi Gf�en .E RPa AM E f n im jBV%dm M�& I= wig" GOUR dVW u9to twaa PDIMWMD f -Aavnoz PTvS ;o salcoaa-d 44vnoz au:k ;o oa:i;o 042 UT 'rdvw io 96 PUT ss 51069a 'LUT Moog UT papaoaaa dvm sad sv 'ITU-107TTvo ;o VMS '3PT52aniV ;a A%Unoo 'sbUTsds mTvd To xz TD aKa vT 'S$t4Z 'all ZOVII „o anTsnTavT 3 746no=742 V 't '; szoZ Iry UMoux Kon air anTsnT*vT ►TT Rbno'Rz M PUT anT=nTavT OTT Onn -lz COT OxaoTB 'vTujo;TTvD 'Azunco aPTsaanTM 'uv:PTJaw PUT asvg ouTpzvvaoa uvg 'zsv3 h abUTV yanns t- c!-.usw%ay 'VT uoT.aOg io M PUT $TZ 'LTt 93(2019 Pvv anTsnTavT !TT vbnojt;, ZTT S40070 •sn;crTavT OTT ttbno=y: COT SX2016 V XISIHk2 {•� -:1:�ji,6PdtitY6�LOO��t�Nj 4i=" •.�. 1 t4wa cmddened owb om JETS PWtmm MW2O, 2W 11-04 QW44 MVr, EDT EXFISIT B (::OTF—f I - xr SUBLEASE) Lots l and B through E inclusive of Tract No. 20483. in the City of Palm Springs, County of Riverside, State of Ca W ornia, as per neap recorded in Book 147, Pages 33 and 56 of Naps, in the Office of the County Recorder of said County. _ oae�fdensnl DwbChm JERPr*dm Mwg%20ffIIMQ F114M8 EDT .Um 1w mm wO x LO= .ez j" ww4md W_r uowwaq 'Iav - •Joasag aJvd g apew pug• oaaJay pa4Oe119 V 3!RT4x3 ua pagT:=sap ATJgTn3TaJgd aJow pugT 041 ;o_lTe Jossalgns 84a woJ; as " T -qns Aga3a4 snap sassalgng a42 pug aessolgns a43 awn OwTulap pug equaTgns AgaJaq saap 'pug se4 JoscaTgn5 a4y •T .: SMOTTo; as aaJSe 0a8204 saTaJed 041 'asvaTgnS aya ut pue utie,:04 pauTeauoa 52uguanoa lgnanw e41 ;o uoTaeJapTsuoa ui '_A-dO1_a_S3H1 'MON •ATuo sasodJnd aaTaou Ja; PJ0222 ;o WnPUeJBttaj, sa,,,4 ior,d oa pua azesTgns aya ;o.aagp,aATasa;;a a4a OZ119.Jowa�n;�* wnp -ueJoweW sTga aanzaxa oa aJTsap eassalQn5 pug Joasa;Ans•a4,Y, •asga,j aqa oa auensJnd pastwap ASJadoJd sqa ;o.aIdt7.306 g Jo; (,.asgalgnS„ 042) g2TnaJii4 aagp uana ;o ateaTgns uTga.ao e 02UT pa=aaua aAeq eascaTgns pue Jossalgny aq;, r3 -ZDv;:e pug o5:0; • — �� YLiC =Cia����Y s: i! Yi�v� Cis r ..:7�i.. — �C—.Lr— r. ..« cssa--- i i:cilCr hivi.:t� �=e :.T :BC=— act r _uSISS2 _Q _y :lci.S�:.aj. Bvczsl B_= tz ;*Ualffs7 Cie *STU j d.,: T 'Oz :sn5nY re=gp JB..aT x c ;a;;.FQUZ ear. TgnosddV a4y •{„1gno.:dc!y: WO) V36i LZ AIn. cs=wr T°O•=_jdv ue oa auensand, colas -WI 104a ;0 auawaJedQO saagaS P911uf) aya ;o SITg;;V uvlpux ;o neamg a4a Aq panoJdde arm ageaT as uoTado 04.1 *G.asgal,, 041) SIC-,,Sd 'oH asea3 sceujsng so gagTjosap 41297nz7229d aJow 6861 IZ AJenJgaj pazep Bagel oa uolado u1 n3so e_japun avasaT a42 sT Jossa;qnS aqy •V :aaoe� SuTMQTTo; 241 oa p2v8aJ 427A („aacoolgns.. 94a) atuJo;TTgo 'soul AS wTed ;o dal] 842 ;o Aouaay auaw -daTanapaM 417unwwo, 242 ppug (,.-JossalgnS„ aqz) uoTaesodJoa wju,to;jTg0 g ••ou, 'g6u7Jdq mTed VON3S uaanaaq pUe Ag te6T 'It Jagwaaaa ;o rg peagp eT 3sY3' ens ,3o WnaNVVow3m SIHZ - [IX - I ST640H) 3symens jo MaNyBow3w •bs3 'JauunQ gsoy u812Y MOTauaaaV L9006 gtuJo;TTv* 'caTOGUV 907 aooT3 424T 1asg3 Wised AsnauaO TDBT N3nSY� R AM 101 NHf1M 1G3GVo03s N3HM QNV ag a3um- 53v ONICINO07a � laV i i� 44 LA0L'6Z � um oanfldunW Dwb thm JEFtperbws MW29,2W11:04QMT4)4ABT, EDT 2. The initial terra of the Sublease commenced on Janu- ary 1, 1905 and expires on.December 30, 2059. • 3. Sub}ect to the -terms .and conditions of the Sublease, the Sublessee has one option to extend the term of the Sublease for an additional period of 25 years. 4. The purpose of this Memorandum is to provide a doc- ument for'recordation purposes only and shall not be deemed to amend or modify the Sublease -in any fashion whatsoever. Direct reference must be made to the Sublease for the agree- ments that have bmen wade between the Sublessor and Sublessee thereunder. IN WITNESS WHEitEOF, the parties hereto have executed this Memorandum of Sublease as of the day and -date first above written. r SUBLESSOR: SENCA Palm Springs, Inc., a Californiayeor ors ion B / i 'i Y SUnr.. SSrt . czmmuniry Ca! crn By �y �COIdE:l�l 2 .ER Parkwe MerM,2W71104OLt M4AOr,EDT sowraaaar uwq alma• �auno� PF4i ;o xoP30a9v A.Auno:) aya ;a 842 vt �sd ; is 9t Puv c5 ru6sa 'LfT NODE uT pup2aaa2 dvu zad 54 �gT::.o�TTII� ;a aa�aS 'op7f2*ATd #o �sbe:T�dg �Yta'o Fao� a:;: u; ' fi B t Ot ' ay zast�y ;a anTsntOut 3 ubnoak� a P ' T to Z8;15 I$ 1 711091• V ZISIRX3 tQ5 ;1w wim wWi'IAOL'��+q um Wip0 cmaeratal D"chm JER tanrbwe Mo29. 2007 11.04 ( MT44 AST, EDT.. ml To3104ACA11-4 (no TICOR TITLE INSURANCE TO i1l� Ga E1—e31 { W rpuntutn) , STATE OF CALIFOti.NIA . c0c.%W OF Teri Angeles SL On before me. Eke . i ^oLary public to and for fdd Sect. pcMr&ally appsated Fcraanaliy kgo+nE to the or proved to one an eke buis w of u=faemry cAdenee to be the pefsan who exuuuA lrlyi r "a"' tbs within instrument as Ohio61 it freswenr. W - r f rM.LJ.Y OFr9ML SEAL. of the Corporubon _ DAVRAU I! HINNtNG that exeeutcd the within imtrtment and aeknowUled 'kOu Rr nW ixie-CPORNIA to me that such corparatiaa executed the wtddn bmn- mtnt pursuant to to by-law at s Moludan of its us ism CWx�rf up affift own lut rL lop board of directors. WtT. ZSS my hand and otficiat seat Signature u F, 1 fTbls Ytl jet *(PAWaorta) WAR �a _e 1 Dorbl ('ihW .IbRP#AbElm MW2% 2W7 ilM QW44AGT, ®T 0 0 1iO3'18V 1Ri� f4: L L lAOZ'BZ � �4md �f• ue�q 4�Q 7;n � WNWMAk. sin willuCoe s 7MI.MO :,Tgag aT qnd JCrg�o� . • -Taos TIVTOTiio PUT puaq AN sszr4jM •27 Paanaaxa SbuTads wTga ;o AZTO oqa io dou*BV auawdolanepay AzTunUawo0 aqq lggq am oa PabPOTAOUXag Pug SBUTid5 mTBd ;o AZID e Z ;o Aauabv wamdoTanapag dziunmmo0 a o sw attawnJ-4suT sTO P zn2axa aqA u0220d aq:3 aq oa (asuaPIAQ d2oZag;sT4g9 ;o 6794q h4u942 uo am 03 PanoMd so) am 07 uoux dTTossadoxgaddg d Tauoslad ' ow v.7c;aq 'S86T JVVA aqa nT osagmaaa(l ;o AVP tp-9 0 ST42 uo I solobuv rog ;o dzuno0 ss . I gTuso+TtpO Jo o�g�s r _ OVA mi »e um twoo Ouadot W DWAM am JEFtP Mw 29. 2wr i to4 wwOL Ast, wf oct-o�-�� IO:t7� F�arIIUI ..1�R a. TI1'JISi ' i-143 P-03 F-141 Recording Requ steel by and When Recorded Rotaa= to: Haynes and Boons, L.L.P.. isoo Stith St., Suite 3700 Houston, Texas 77002-344S Attention: Robert S. Ladd, Esq. SUPPLUCM (FOR Pumas OF awromma LW" 33FS=FTION) To BURTZ= This SOPPLEHENT (FOR PURPOSE CIF CONFOMCNG LEGAL DESCRIPTION) TO SSE is made as of December 38 1992 by and between THE CITY OF PALL! SPMGS (the "City") # a municipal corporation and THE COMMUNITY REDBAGENCY OF, THE CITY. OF PAIN SPRINGS, a public body, corporate and politic, duly organized and existing under and by virtue of the laws of the State of California (114ancyll) . A. RECITALS :fie D_� �a� 9^FSLrs� DM04-�=at3 O� 3..tis-iCr, SureM'S Z .s__:.; # ffairs as the s_7 swto y f= Ray a_ (r _: ec_:.na`ti�;"MaSZar Lessor") a..;_` Shl r� cp_-:n to 'lease dazed Feb= v 23, j moo,, Here Szr-, �:Qd as 95:__::e_5 LeaseNo. ?C3:.5 ;t.;L' Lazzat'$ was ass-7- Me-i a£�Ci► ?a!-- Strings, Tnc. ,Y_ a California corperatza: n tta *cc orat_onl') on Aece^ber 31, 1984 and concurrently theravith the corporation exorcised such option and became the leases under the Ground Lease. The Ground Leise cOVers certain land IOCa%ad in the Tahqui.tz Andreas Ra$evelopment Projamt Area of the Agency which is described in Exhibit "All attached hereto (the "Situ") . . 2. The Corporation and the Agency entered Into a Sublease dated as of December 31, 1984 (the "Sublease") whereby :he Agency subleased the Site from the Corporation. A MQ==randU= a: Sublease With respect to the Sublease was recc=ded an December 30, 1985, in the official Records of Pu;erside Cot:nty, California as Instrument. IM. 293742. The Agenzy and the Corporation also entered into eleven Amended and Restated First Installment Sale Agreements, all dated as of Dece=ber 1, 1984 (-he "IF,^st Installment Sale Agreements"), whereby he Corporation agreed to build Certain hotel axgkwm Dwh Chon ,lakpartws MW28.2MQ741M01i! MA99EDT am jsv"Imw�& Mavis" � +aamr WO waC pFXgW 45t* fU9/1t%r-4 ' 92varAe$ xouasy aqz aXem o:� foczabv at{z xo uo : -e5T rq0 a:.;= paTIdde eq oa .uoraasoct2oo attz ca W: UV=Avd 98doT1PAap at,, 3A7,9001 oa WO-fg szT pau6t65e sEq 4atr86V aqz Yt:v :.adoTgnaQ gins nq peset;aznd ark oa aaa�osd aATwadsez aq% ;o aaTsd avvq=and a4- ;v 4atraft stra oa sgtrmwAi2dsaadoTanaa Aed oz pa:vfa--Leto s-r AouaBY at;. J azueemexby sTYs strata-Lteastrl puooes et;a -zepun ' L .Ix t;bna21q2 I sxaaco.za ;o aozzd asegzznd w4z se uoTzEamcdzaa ate oz szuamt vd A.-ueby Avd as paaeS:Tgo sF A--urty et2 's1Auatuaaz6V aTvg zuat¢TTeasul =3-2Td aqa sopun .9 (fps'4Tun anju-.c0pu0J,f 6%M) sgTUn UnTuTtmopuoo UTVZXQa u; TaAoH atts ;o dTussouno pup ucTaattltasutaa ate sox apiAa:.d Wdl= 89a pus UeTd at;Z 'SPzooa2l TBTZI;;O atM s0 6CLCSZ 'ON auacn.:asul se 586� zagmaoaa uo papsaoaz pus aV2) y86T f0C 1a�a�aq #o 99 pazap TBAoH z2ezzanbpeaH OuTsdg mjVd so; s;.v8a8sa3 r8 Zi0}'�t'hw�Sa� putt~ stto-,:o:�:s'v�j purr St:O=�:s?t!CJ f szt:ec:aAO� Sizz) i3TuZcs }:si. a7 f = ..I .. 61 .. � �.. • �. V r r r y � 4 r _ r ? _ � • . r w . a r � 3 w � S -S=TS stz--UT Ssa:2==T -dsv3 ,qr.S cS penziu g—radC LadmaG aye SSi.� �.i..a�•�..5 `� :S _��e . . ,AgeaagA ' (jjwe$ :aTq-n5•quSu aZ+) TTe trX ttbno=gz x w=a;ozd za; sasagtgns-qns a4assdas t;anala oquT ga=aqua ssadoTt;AoQ Wn pue AZU96V WIZ • b •40tta" ;;q; taoam; Ix t[brnostz I s *801d 02 eT4Tz :deoce punt asutp=zcd - a-4 paasbtt ssadaTeAeQ GqZ pun s=adoleAea 814 = (AcTaq PeuT;&P so) sagr2T;T:M0 T6209 uT+agzea ;o speeoosd atp tm,tm pazonszsuots (IX 04 x s=a;oza via oz pSzxa;os) szut3taan0sdsT mou cam xo 9=Tgzad ezttsedas usAwte XAAuco Putt Ttas oq p9916V ,CaQabV 9:M ggasatpt („szadcTaAequ eqa) sdTgszou:.zed aAQzedaS ttaADIS t[ATA (u614txagta2s6ti ales xuasTTt:zsuT ptuoODS19 aqZ) '8665 41 sagg s2ea go so pwAoV qus=vZ&V DIMS 4u9taT1Ctt49u1: Puaaas paAt%sag pug Pap=zT aq s4uagmpvwW pue sger =tddnS gAeradae uaAeTa Aq papuamB pus pogU=mtddrs so 'f85T 'T =agaaa3ad ;0 96 V841P TTa 'sgttem RAfiY stab -4tWwTTVWa puoaag' pant%sari Pue papuamY sg=edas uantale ozuT Paacagtta A-Q=BV QRZ • C •r4TQ vqz v; paubToew som eseems URZ UT ptm assaZ P=C=3 -qq3 UT gsysaquT 0jU0T4w10dzod ate 'LOZ69c ,OR gva�su3 at; 686= +tg .' ggc4co ua gapsoosx ptta 696T '8Z xacmazdee peap `I-4tto=f6T88Y 70 WasMR=" ti"Ft Uw %M 0M '4fieRSZnd • u'i8,408a ate ea AT9Ar4zgTtV0 . UpmVq oz pa=saias lama ptm GQjATTioe; .UW%M ztddu pttu 881F4T1CTcax TaZOQ aq3 go TIN aznA ;:suaa sat4uBag = iirmoscm I w400 gad .4wrebq eta 0% �tX gbnexcp no� r sWerczd XoAuco Vm TTSs CA,Vasa VZT'B *cM I cps;man) dgsado=d WU W91471TOuT 4Uvuegamt1ddn pum soTzTTToa; 611a ►o•d 01-1 - allt rll Omq d;W ,•Iq 1 y �� 11�ai ie-Ia-»o Uum EVAG too duddored �y1 ikt-Oi-91 {O:ITu Fro -Riff �29,2w?ilm sum 6111' s T-lit PAS F-111 8. For the purpose of obtaining the =nays required to finance the ecnstsuction, improvements and equipping of Wacts I thraugb ]Q, the Corporation assigned and transferred rights to receive the Agency Payments to the Trustee, in cortsidesation of Which the Trustee exs=ted and delivered certificates of Partiaipati= (the "Hotel certificat"g) evidencing the proportionate rights of the owners thereof to receive the Agency Payments pursuant to eleven separate Amended and Restated Trust Agreements -dated as of December 1, 19840 each as supplemented and amended by a Supplement and Am=ftent to Amended and Restated Trust Agreement dated as at December 1, 1988, (0011e4tively, the "Trust Agreements", to which reference is made for the definition of capitalized terms not otherwise defined herein) by and among First =nte=atate Hark of California, a California barking corporatian ("Trustee") , the Agency and the Corporation. 9. Following c=plstion of the construction of the Condominium Units comprising the Hotel, the Condominiums plan was amended by that certain Amended Condominium Plan -Tract Map 20495, recorded in the Official Records of Riverside- County, California on December 3, 1992, as Iestrdmgnt No. 462088 (the "Amended Condominium Plant) in order to, among other things, reflect the Condominium Units comprising the Hotel as built. ware a .. -• _ � - ••-i :... ��_._:« .�3 .:��.. � :g CAL �.i �-.� .« 'n.`.�.',��: Plan. -.w .... the ce •. the Hotel which are subject to the Sublease and to c=nfc= 4he legal description of condominium Units comprising the property subject to the Sublease with the amendment to the legal description of the Condominium Units as set forth in the hranded condominium Plan, the City and the Agency now desire to sspglemert the SubleaQa as provided in this Agreement. B. AGRw-91"_lZ'T In consideration of the foregoing facts and the -ua2 Covenants contained herein, the Agency and the City agree as !allows: 1. Cu:- gam, the. City and the Aganey acknowledge and agree that the leasehold estate created by the 5t:blease and the fee estate created -by the First Installment Sale Agree_ents are, and have at all times been, subject to a12 n 2ts7R/b2s9.153 oxdkWM ll" Chm .IER Mar 29. a7 im t . Affr EDrT lA3 JBV�iO•'4F iAOT'6Z'� u�13�i+�BQ 85i'.829lZC�LI•a RDIpPWm :20 P"Tsdmoa t5" 'senTuTaogt:am LEV (Il sadgmvzd F82T---0(311 atiz ) X=adaad Taaz bujAoTTdS eqa p=oTpu?TgnS aq3 140=; saXez pule sazTq Aga.zay _uaua:gns atr4 pug �uQuaagnS aua 0-4sasTriap pus ;Zlealgns Sgazaq psoTpusTgnS •aseaigns •TAB gust JC gs sum ss :buTA011c; atrz t,�tr► pozvtdas T T UT Pazatap Aquanq st asvvTgag 8qz ;a T n.:%=3S •ca pas a UUTTatl5sma tQa (q) `1CzttriOa •6a tM 'ON zuawa: ;sulse sT=O; ; Ts3 Px .2I ;0 5pso,.wag jleTzT;.t0 aRz uT 986T 'Oc aagaaOaQ uo paFseaas P•zg («WaTqnn ska) 0,86T 'OF. s29ra0ap ;0 Sv Fa=Qp Ta�a�; sss:zpnbpea;� s:.�-.:d; �;2d pop `'J�r.$vr �6 Zr G•M "...�.0 L�\.� �•_ � +.�v �•s4 �r .t.i Its ..— �IIG�• �� 1�'.i >.r'. wC=:wr� r��•r.��ll Z• �� C's_+.7. deyz 4zv=,,-uvtd mnTUTutopuv;) pgpuaLT UTv-250 41M 4 Papua= se gtcs&e •oH auaanx;sttl se WT=0;TTu2a 'Aztm03 aPTssanTg ;o spzozag T'RT*T;iG BqZ uT b86T 'Lt .tegwoaa papzooaz UvTd =TuTmopuon uTQasam zvtM oz autensxnd 0=TUTM'Pucz - OWT PaPTATP 9RA pTOgesgaT q*Tvrt ' o4a2eq pat{zvgzv sillu 4YRTMXZ uo pagTxssap ATzvTWT'4zvd esam: PsoTPuvTqns =-%I 9z12492 PToR"assra7 zagsvR oqz ;o ucpzod 9 asvaTgas 04 sexTsep zueuazgns •9 I tsnaTTO; ev PlMs az Peptmmv 1[garaq sT as4eTgns 3%M 20 8 TVZTOatt 6,49120-4ml plaquoilelol(t;) 'UTTd =ltti PuaO Pap0Gm1[ 9AM tt0 tKnotte sys� sota�to� ate u0 Pe3e00T smuamtonatdcl att•{ uT pus 3x Onamm I B=Q COzd asTzdt* qzM s;uamaeojft= aqz uT zsezvzuT so; v Pu't 4PM —TuTyxopuo* RZIG W; paup4ttoo vavdszTv vqz uT pug egTs eta} uT gsa494UT PTORasuat V xa pvsTXd=* Aaaado.zd Iva= u f 94910=4ul aq cq enuTZuca TtvM Pare vast sseaTgng vqZ fq zsasaquT PTCRU"at 2 ;0 gtmzs stm P" szusmeastuf otvg qusaTtvgsa ;Gild stm Aq zsasaquT ea; v ;o quga VqZ egvhwajSv sqq U-f uaVM saRA 'Wattz z08;4;a eqz cq putt uoTztrvquT wqz gzTA J vn= aqq uT R=cl zaa mtoTZmT.zzwQs pue wmTavgTn'C 'suOTgTpuoa vtpZ 30 � , ,' S �,iev�ora:w��wsz att- !a d t1t .alts WMWdI r Um qm GMtdde AW Dwh Chen o::-ar-al 1b=u�. Fri.-t + �a9D.20ail ac8 MAOr,Enatm DT4. 1-1e3 P.ar F•141 tj An undivided 1/427th interest as tenant in common in -and to Lott i and H through 2 of Tract No. 20485 in the City of Pala Springs, County of Riverside, State of California, as per map recorded in Book 147, Pages 55 and 56 of Maps, in the office of the County Recorder of said Couamtyt EXCEMING TSBR&FROM, all units as shown upon the Amended Condominium Plan. pABMz s one of the specified Units shorn upon the Amended Condominium plan.„ 3. Lrisce anaRMS. (a) Effect of agreement, The City and the Agency hereby agree that except as set forth herein, all other provisions of the Sublease and the other Basic Documents shall cantinue in lull force and effect. (b) S•_,_scssc:s.bens! � ^:is Ag=ee=enz p shall pbe **;:= and- _nura z -ha .rile^ -1: ^` -. parties lherm%� s.a: ; ..� M- OCR ���= ��'=r== = This ACr5C—_ =..ti. be an y each sic znL:! be Qdac=e! t= ye an a__yinzi. (d) 5evera5ility. Any provision in this A. ee:ant that is inoperative, unenforceable, or invalid in any 1Lisdiccion shall, as to such jurisdiction, be ineffective to the ex:•ent of such in operation, unenforceability, or irvalldity without affezzisig the remaining provisions hereof or a:_ecting the operation, enforceability, or validity at such ;.rovr:sion in any other )urisdictfon. (e) Amendment. . No alteration or amendment of .::s Agreerant shall be effective unless in writing and signed by r-ho parries sought to be charged or bound thereby, and each and every portion of this Agreement shall apply to and bind the respeet_va di:stributee, legal representatives, successors and assigns of the parties hereto. r , amended by Amended Kap of Tract No. mes, xecorded in sook 200, pages 47 and 48 Of !Saps, in the Office of the audkknid a�O�n County Recorder of Riverside ++ !7`a�R►5z99.1;6 Colony. California. d #AW 29, 2W %!�i$. ABF, Wr lay m m; uow vim o�a�r uo�piw�a ss c• set���csit-� :dg SIMUS Md d0 AXJD S91 nme Md dQ 1L= mm dC ADIMO t Maloxg= WWI 03 :s:I ,— s�Sa��it ' (Tas] `tm=TM l *AoQU :M=Fx s-49P aqZ Jo 99 p04=wm tiF dS";quS Cm (uo}adT=S*a tafiv BuTm=xUao Zn aSod� sa�f �tta�tdd�q SF� i801 S53N�ZZ6! HI .�cvwi��o:�ktaa� ti ��.aa� �tf=at trlo•��o j !fl-d 10'd t1l•1 ,t lf5� ���r��' �• awb ohm JER Pesaro MW 29, 2W7I I qX {3MT-W AST, Eft' } t14646' T-14� 1'.QQ Fi49 :ct-t}T-il 19:41u FrwW C11. STATE OF CAUFGRNIA } } ss. COUNTY OF ' On My 24, 1993 Mora me. Hbia -L S.'�,wSEM_ Netary kie- personally appeared perm"By known = me to be the persons whose names are subscribed to she t++ hHn instrument and acknowledged to me that they axeemd the same in Their authorized cap males, and that by their signatuies on the inset ment the persons or the entity upon behalf of which the persons acted, exeeutad the instrument. ' Wkness tray hand and official saal. Ewan � SGrw�wT! �►ftec-cam= . nNrEAsmEc�,M*r ' •1r CeRJM dtpros sF,f. Ja •. -} ' [SEAL) in D" drew JEtPArMM MN 29, 200711# GW"ABTi', EDT Iwo i - Mr,; UDW UM 5 i i' SHd 9/! L S! i -v low poll* •vYuso;TTe3 'J'IUIIOD apFrsaelli fa xapsoaou A_unoD so is GOT;;o 6yz UT , COX P at pug 0 s98rd "00t XGOI u: popxaaa3 ISOM 'Ott =arcs Jo OR POPgaST AQ PaPv"r • `Sfi -ptra 55 s td 'L!Z Tvz •ss goz msad m�d s;o�vTvTO IR UPTOxa�'E � sd X�z''F�� UT Se�oz •catpst ;a 'a �5t3 s ter t sax 2-8M w==Z.• r INA Ol•! � • �:ntFP�'dt3+t to0�6i �iQ�L r � L1�`l � x _r WM40dHl� l�l�°�i se61�a1 ii-t0-3}0 - owdWanud Down Chen JM P1mtnaie Mar 2l), =r 110 GMT" AK EDT ASSIGNMENT AND AMENDMENT OF SUBLEASE AND TERMINATION OF SUB -SUBLEASES This ASSIGNMENT ANDAMENDMENT OF SUBLEASE AND TERMINATION OF SUB. SUBLEASES (this "Agrgeinen ") is made as of the 1 day of &gWkk 1998, by and among THE COMMUNITY REDEVELOPMENT AQENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA (the "agency'), THE CITY OF PALM SPRINGS, a municipal corporation (the "QU1, HOTEL & CONVENTION CENTER PARTNERS I, LTD., HOTEL & CONVENTION CENTER PARTNERS, II, LTD., HOTEL & CONVENTION CENTER PARTNERS Ili, LTD., HOTEL & CONVENTION CENTER PARTNERS, IV, LTD., HOTEL & CONVENTION CENTER PARTNERS V, LTD., HOTEL & CONVENTION CENTER PARTNERS VI, LTD., HOTEL & CONVENTION CENTER PARTNERS VII, LTD., HOTEL & CONVENTION CENTER PARTNERS, Vlll, LTD., HOTEL & CONVENTION,CENTER PARTNERS IX, LTD., HOTEL & CONVENTION CENTER PARTNERS X, LTD., AND HOTEL & CONVENTION CENTER PARTNERS Xi, LTD., each a California limited partnership (collectively, "Crnvl and AP/APH PALM SPRINGS, L.P., a Delaware limited partnership ("KPH"). A The City is the current holder of the lessee's interest under that certain Business Lease No. PSL-315 dated February 28, 1984 between the 18 Individuals named therein as lessor (collectively, the 'GEQuod r") and Shale Energy Corporation of America, a Texas corporation, as lessee, (a memorandum of which lease was recorded on December 30, 1985 as Instrument No. 293741 in the Official Public Records of Riverside County, California), together with that certain activation letter dated May 1, 1984, executed by Shale Energy Corporation of America (as approved by the United States Department of the Interior, Bureau of Indian Affairs (the "mil ") pursuant to an approval dated )uly 23, 1984, which approval was modified by a Modification of Approval of Option dated August 20, 1984) and that certain Amendment to Lease of even date herewith (as approved by the BIA pursuant to ari approval of even date herewith) (collectively, the "Master Lease"). B. A portion of the property covered by the Master Lease is subleased to the Agency pursuant to that certain Sublease (Hotels I -XI) (the "fie") dated December 31, 1984, by and between the predecessor -in -interest of the City and the Agency (a memorandum of which sublease was recorded on December 30, 1985 as instrument No. 293742 of the Official Public Records of Riverside County, California) as supplemented by the certain Supplement (For Purpose of Conforming Legal Description) to Sublease recorded on December 20, 1993 as Instrument No. 504374 of said Official Public Records, covering the real property described on Exhibit attached hereto and incorporated herein by this referencd (the " •), ,r;s JERPartam Mw 29, mu 11W GISMO AST, EDT W] 1o318+r rr0�� 9p�6L 1�DZ'8Z �W LowWwa ploummoo_ .t 14{vrvvr •-,vj '( a n (ti1„ 9qj `41,4AI13allo31 Ajjad01d 041 'soul-41 lay)o ouowe 'oullano3 sluawuokse pue sisajalut 41ljn:)as 'suail UIVIja3 Aq pajn3as aq of („7apii .),-11 '{side] aSeSiiol'Y uolsog Isii j asslnS 1ppaj] woj) wipsmWy a41 yltn% uoilDauuo5 ut (MSBUIM�Qij„ DOpuiwcuii Sutulclg0 $I HdY/dV "H •asealgns ay1 japun „zueuatgnS. a4l aq Ipm HdYIdV pue MpjolpuclgnS.. ay1 aq Ipm Auk 941'uollrulwj81yons Ja1)e pue woj) 1cy1 os sasealgns-qnS ay1 alcuiwial of Wtsap HdY/dV pue Aouapy a4l 'nsaJ'aJOJasayl 'agiaw pinon, salelsa aqi pue sasealgns-qnS 041 Japun saossalgns-qns ayl pue jossalgns-cins ayl )o slsajalul ay1)o Ile plo4 PlnOm HdY1dV 'HdV/dY 01 asealgnS ay )o luawugtsse pue uallsfnbay 041 Jai)e pue wojA •.apunwayl paseal Avadoid a4l )o uolidtjasap legal ay1 Uaiao:) of osealgng jalua:) uoEluanuo:) a41 puawe of paaage sey Al!:) ayl pue uoliclumap legal y]ns loanoo of asealgns ayl puawe 01 lu0w8aJ9Y siyl Aq aJisap HdV/dV pue Ail] 041 '0J0J0Ja41 !(sastwald paseal ay1 ol. snonIlluv3 aseal jalseyv 041 Aq pal2na3 Avadojd jaylo ulel,a:) sjano3 asealgns gD14m) L66 t 'L I!jdy )o se palep Al!:) a4l y1+•ns (, u . ay1) asealgns s1! of luens,nd 1a1uaD ualluanu0a a4l 01 Meal /Wadoid ay1)o uoodinsap legal a4l puawe 01 PaIle) (Mau n , ay1) A1!joglnv Supueuld sduudS wled jo Alla ayi pue AIIJ ay1 pue uo!lejngyuo3 lol Mau 04101 uopdp:)sap legal ails wjojuoo of sasealgns -qns a41 pue asealgns, a41 puawe 01 pane) AlluapeApow sabred ay11ey1 pue slot yons gulleajo dew loejl a4l of luawpuawe ue Aq umPlpaj Allelol))o uaaq aney (olajay v I!qlHX3 uo yljo) las se) sas+wajd paseal ay1)o uolldlrosap legal a4l ul RCIP3sap slot a4l )o saull 101 a41 leyl Pajanooslp aney salved a41 `uo:l!slnboy a41411M uopoauuo3 ut 'ajowjayijn j • j •ylro)1as ja1)eula,ay se asealgnS ay1)o suolslnoid uteua:) puawe 01 paa& aney HdY/dd pue Ally 041 Pue HdV/dY 01 asealgn5 a4101 pue ul 1sa1alui pue a1110439 q )o Ile uSlsse of paai8e sey AouaSY 041'paseajap Sulaq We sRuo8 a41 'HdV/dY Aq Ayadojd 041)o aseyornd ay1 gjjm uotnunfuoD ul '(„3PW(TM a4l) spuog u013921lgp puEtuao almd algeuen )o aauenssl 841 ggnojyl sluawanoidwl a41)0 uotOnrisuoo jo Buloueul) 041 Sui evioe) )o sasodrnd a41 jo) Aauagy ay1411^'t owi pajalua seM asealgnS a41 -3 •S„M 941 se ulaJay 01 pajja)aa Alanll3allo3 we swawanoidwl pue aleisa ployaseal pies) saslwajd paseal a4l; uo pale3ol OluawaXORIMIM ay1 'Al0AIjDallo3) sluawanoidwl jaylo 041 pueMsgulydS wled weypuAMM se unnou3l laloy a41 pue saslwajd pasea•1 ayl ul alelsa ployaseal ayl 's9ulyl eaylo Suowe 'oi pue ul mOI )0 lsajalut a41 )o Ile LostitM�,Wp. a4l) Sulsey3rnd sl HdV/dV '41ImaJa4 Alluaiin:)uo] •p '(e!ujo}!IEJ 'A1uno:> 0Plsjania 10 spjo3aa ollgnd lepyjo a4l. ul 'Alanlloadsaj 'IrEBER pue SZME '9l9£6Z 'L09ER '96LE6Z '69LE6Z '09LE6Z 'LLL£6Z 19LE6Z 'ESLE6Z 'VPL£6Z 'SON luawnilsul se 996 L 'oE jagwa--aa papiom ajam sasealgns-qns yons )o epuejowayy) moj' pue Aouaoy ayi uaannlaq '0961 'I £ jagwaoaQ palep (,.sasualps-cinS, ay1 'Alanlpallo3) sasealgns-qnS uleljao L 1 as041 of luensind pasealgns jayim} uaaq aney saslwaid paseal ay., •D .ua "1sv ea�ro pa s� ,t�ooz•"ez �4"f �w�axar omm"0111 15airi CAnn hR P9111 Me ZD. 2 OY 11:0 QMTAX AtiT EDT NOW, THEREFORE, for good and -valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows 1. Estoppel by Agency. The Agency hereby certifies as follows. (a) Sublease Agreement. A true, correct and complete copy of the Sublease is attached hereto as Exhibit 8 and incorporated herein by this reference. The City is the current holder of the entire lessor's Interest under the Sublease and the Sublease sets forth the entire agreement between the Agency and the City concerning the Leased Premises. The Sublease is in full force and effect and has not in any way been modified, amended or supplemented except as set forth In Exhibit . (b) It:l . The Sublease commenced as of January 1, 1985 and the initial term of the Sublease expires on December 30, 2059, with the right to extend an additional twenty-five (25) years. The current amount of the basic rent due under the Sublease is $671,984.00 and the next Cost of Living adjustment of basic rent under the provisions of Article S will occur on December 20, 1999. The last payment of rent was made on December 19, 1997 in the amount of $671,984.00. The address for payment of rent is Director of Finance & Treasurer, City of Palm Springs, 3200 Tahquitz Canyon Way, Palm Springs, California 92262. (c) Ng Qgfaults Under the Sublease. To the best of the Agency's knowledge, no default exists under the Sublease and no event has occurred which, with the giving of notice or the passage of time, or both, would constitute such a default. 2. Esiggggi bv!City.. The City hereby certifies as follows: (a) Lease asAgreement. A true, correct and complete copy of the Master Lease as same applies to the Leased Premises is attached hereto as Exhibit C and incorporated herein by this reference (Including the above -referenced May 1, 1984 activation letter, the July 23, 1984 approval, the August 20, 1984 modification of approval and the Amendment to Lease). The City is the current holder of the entire lessee's interest under the Master Lease (except that portion thereof which was leased directly to Sumitomo Sank of California, a California banking corporation, t"SumitQmQh pursuant to the terms of that certain Amendment No. t to PSL - 315 (the "Sumitomo SubleaseI dated as of August 10, 1995 by and between the Secretary and Sumitomo) and the Master Lease sets forth the entire agreement between the City and the Ground Lessor concerning the Leased Premises. The Master Lease is in full force and effect and has not in any way been modified, amended or supplemented except as set Forth in EYhrbit C and except for the Sumitomo Sublease, Which Sumitomo Sublease does not in any way amend, modify, supplement or otherwise affect the terms and provisions of the taster Lease as same apply to the Leased Premises. Dwks dER�t4CheniMa trtbrpa 200� i1:06 d�xaAar. � s,o31s1nrosr'IQ � « �'ez �Y11 so PDuopw= Ali) ayi p sasuadxa pue slso) ojgMDseaj a4i sluawalels yms ui passaippe jallew inlgns aLli of alge3ll4de sa:)ueistunz)jo icniaej ivaiin:j ua4l ayi j3aljai of 'Aiessa3au p 'paippotu Apirudoidde 'Z ydejoejed siyy ui yuo) ins sivatualMS ay] fululclUO3 air39lua3 laddoiga ue ,flied $unsanbaj a4l of ianllap pue ainaaxe of saaf a ,ail] ayi 'asealgnS a4l of 13adsai yl!A1 di:D a4l woij aie3yiiia3 laddolsa ue sisanbaj'aseal iaisew ayi jo t Z al3luV jo suolslnoid ayl yilm wmpjone ul joljaiul a4l jo Aieialaas samis pailun ayi Aq panoidde Auadoid Al jo eagaliow ainin j,iue jo japual Jo HdV/dV jo lsaiaiuI ul jossa33ns ilue'japual 'HdY/dN se iaijeaja4 awls y3ns y3ea pue due iV *sajumppaD l (y) 'iaua8ed pue -lueg IeuogeN ijasao wled 'IePed R asessew aiewliln 'ouelpayv Ined/sug'sap aieH do speaH 'dogs ljl7 yilw5 HM 'saslwaid paseal 041 uo palnol sivawamdwl ayi ui saseal a7eds $uiMollol ayi of pawasuo3 sey Ail:) a4l 'asealgnS a4l jo tL U01130S ja suolsinoid atp of Juensind -suolslAold awal :)Upa6S(a.) •ilnejap a 43ns ainilisuo3 pinom 'yloq jo 'awil jo agessed ayi jo a3iiou jo oulnl8 ayl yjAN 'y314aa paimmo sey ivana ou pue aseolgn5 ayl japan sisixa ilnejap ou 'a2paImou1 s,Ail) atp jo isaq ayi of k 0) -jowayi L t appy of wensind papinoid uaaq sey puoq leivai ou ieyi ida.)wa 'ilnejap a 43ns ainilisuoa p1nom'4loq jo'awii jo asessed ayi jo 0311ou jo SuiAlo ay) q3!m '4314A% pajimoo sey Juana ou pue areal jalsely a4l iapun sisixa ilnejap ou 'aspalmoul s,Ail:> 841 jo isaq a4l o f (a) 79M elujojxl D 'soulidS wled 'AeM uo,tue:) zilnb4el OOZE 'sSuudS wled jo 14!:) 'jainseail I a3ueuld jo joi�ajlo sl ivai jo ivawAed joj ssaippe a4.L •p01786'LL95 jo iunowe ayi ul 166 t '6l iagwa3ap uo apew Sena ivai jo ivawded isel aqj '666 t 'oZ iagwa3ap uo inaao 11!m S al3!ljV jo suolsinoid ay iapun ivai olseq jo luauiisnfpe sulnll jo iso> MU a4l pue 00't?86'tL95 si asealgnS a4l iapun anp ivai xseq ayi jo iunowe wajin7 au •sjea,( (Sz) any,Sivannl leuoglppe ue pualaa of 142IJ ayi Pm '6SOZ'plr aagwa3ao uo sajidxa asealgnS ayl jo wial Ieilm ayi pue S961 11 dienuel jo se pa3uawwo3 asealgnS a41 .Mn-ffI (p) -joajay suolsinoid pue swiai ayl yilna a3uepio3ae ui sasealgns-qns 841jo uoileulwjal ayJ pue Hdy/dy of asealgnS 841 ul isajalut s,d3uagy ayl jo Juawualsse atp of sluasuo3 Agaja4 pue sasealgns-qnS 041 of paivasuo3 sey Ap:) ayi -qn (3) •9 qq,q33 ul 41joj ins se idaua paluawalddns jo papuawe 'paulpow uaaq ,tens due ul iou sey pue pkga pue a3ioj llnj ui sl asealgnS 841 'saslwaid paseal ayi Sulwa3uo3 dllJ a4l pue buasy ay uaanalaq JuawaajSe aillua 941 yuoj seas asealgnS a4l pue asealgnS a4l iapun isaialul s,aossal ailiva a4l jo iap104 luamm a4l si dauasy a41 •a3uajajai siyl Aq ulajay palemdjo3ui pue �X1 se olajay pay3eiie sl asealgnS 041 jo MOD alaldwo3 pue 13ajio3'anii y (q) lq� 9,61f tio�YiO 5�L41QOL'6tj�1 WKWdl r uap qmo PPOPPM awifidudd Daum then deft Perot sp lkw 2e, 2W? 11.'W {i�11fr-04 Affr.EOry with respect to any and each such estoppel certificate shall be paid by the party requesting same 3. Assig,Q=nts and Terminations. Concurrently with the execution hereof, the Agency and AP/APH shall execute and record the Assignment of Sublease agreement attached hereto as Exhibit D and Crow, the Agency and AP/APH shall execute and record the Assignment and Termination agreement (the `Lssignmeat a0d Term#natiQ1l') attached hereto as Exhibit E. tsi;;��WM4� IU�Cd�/� W�4. Notwithstanding the termination of the Sub -subleases as provided in the Assignment and Termination, Crow agrees that it will indemnify and defend the Agency and the City and hold them harmless from and against any and all liabilities, claims, costs and expenses (including, without limitation, reasonable attorneys' fees) incurred by the Agency or the City and arising out of or in any way related to (a) acts or omissions of Crow, its employees, agents, directors, shareholders, partners or related entities, under the provisions of the Sub -subleases or IN the operation of the Property during the term of the Sub -subleases or (c) the sale, marketing, payment, resale and/or redemption of the Bonds, including, without limitation, any and all claims under Federal or Stale secunties laws. Furthermore, Crow shall continue to be liable to the Agency for payment of any Additional Rent, as defined in the Sublease, and any other sums which may be due to the City and/or the Agency under the Sublease or the Sub -subleases or otherwise (including, without limitation, any transient occupancy taxes) in the event that an audit is performed pursuant to the provisions of Article 14 of the Master Lease and such audit reveals that Additional Rent or any such other sums was owing for any period during which Crow was the sub -sublessee under the Sub -subleases. APIAPH agrees to reasonably cooperate with the Agency in obtaining any such audit. The foregoing indemnity and obligations of Crow shall terminate and be of no further force and effect on that date which is four years after the date hereof and such indemnity and obligations shall be guaranteed by an entity reasonably acceptable to the City and the Agency and having a net worth of at least $10,000,000 for one it! year and a net worth of at least $3,000,000 for an additional (3) years. 5. Reliance, -The City and the Agency hereby acknowledge that AP/APH and Lender will be relying upon the certifications made In Paragraphs 1 and 2 hereof in consummating the Acquisition and the Financing and agree that such certifications shall inure to the benefit of AP/APH and Lender and their respective successors and assigns. The City further acknowledges that the following shall be the address for notices to Lender: Credit Suisse First Boston Mortgage Capital LLC Principal Transactions Group 11 Madison Avenue New York, New York 10010 ' Attention Edmund Taylor Re: AP/APH Palm Springs, L. PJ4villiam Jacobs Telecopier: (212) 325-8162 jmpwbn UW2%2dOrl' 11:W QWMA8T, EW �.aa'isrvi'Odi�jE)9aE� 1.00:'ax�1"i rl oisnYr:r ,r,r •piolpuulgnS 041 jo luasuo-3 ay Inopm awll Aue le asrrajgnS Sly u1, isajalul s,lueuaigns aSeguow dew lueualgns 'asvai i015CIAl ayl jo i-Z apiliv jo swim ay di 13afgns (e) j j 4c. ' I Z.. :sn,o)loi se asealgnS acp of pappe s! IZ ydeigeJed maN 'LE 4ueJSUJLd 7% (q) . F)jolpuelgnS jo luasuoD uaiilim iolid„ spiom ayi Jalje„ "4elap jo p1a441!n% dlgeuoseaiun aq IOU 11e45 Iuasuo:) yl4m)„ spiom ayi pue 4dei8eiedgns pies jo guiuulgaq ay1 of „ joaia4 IZ ydeJgeied mau jo suolslnad ayl 011:)a(gnS, asejgd ayl ppe of papuawe sl 4deJ8eJedgnS (£) '.WolpuElgnS a4i of algeidanu, spiom ayi aiojaq pue „si wowaaJSe y�lyM asealgns sly; iapun spiom ayi iaile „Alcleumaj„ punt 041 ppe 01 papuawe sl (q) 4deJgeJedgnS (Z) -„saslwaid paslwaQ ay jo uojliod e isnf Iou 1nq„ spiam ayi Jaije .(aseal iaiseW a4; jo (IAy10Z aphid;o suolslnoid ay iapun pamo)le se a:)eds lelaJawwoo jo siueual of lalgns aq Aew saslwaid pas!wao a41 jo suowod ley ldaoxa)„ spJOM a41 ppe 01 papuawe s! 03ualuas 1silj ayl (I) :smolloj se papuawe sl osealgns a=;1 ju tri ydWved :BEd (e) :smolloj se asealgnS ay1 puawe ia4linj Agaray PUP TTR.r99 se olaia4 pay:)eue uollduasap legal a41 411M (olaJayl paVe)le g iiq!4x3 ui quo; las se) asealgnS a41 Japun paslwap Auadoid leaf a41 jo uopolixap Iegal 041 aDeldai of asealgnS ay1 puawe AgaJay HdY1dd pue /40 24-L ' •g •bs3 'MoIsald -H Ueld :u0)IuaIIY ISIZ-89L (ZIZ) :Jaldwalal L I4a! 4JOA MON 'AJOA MON anuany pJly-L M W l 'Jalsa:)JoM I? uenlllnS OM -SEE (ZIZ) ualdwalal sgODuf we!11!AVd'1's8u1JdS wled Hdd/dd :a*d •bs3 'we4eJD uaallo:) :uolivaud o I00I VOA MON 'VOA MON anuany uoslpeyv I I luawuedap eauelldwo' pue legal Dll leildeD age9uoW uolso8 isJll ass!nS ilpaJ] ixdlw tw4DqM 0601 Chan J R PWbM W29, 2WF 110OW-04 R>3't. Wt 1 The encumbrancer under each such mortgage shall be. a 'Sublease Encumbrancer' within the meaning of such term under the terms and provisions of said Article 24, as amended by that certain Amendment to Lease dated as of October 28, 1998. (b) In the event of the termination of this Sublease prior to the expiration of the term hereof for any reason, including, without limitation, any such termination purportedly arising by reason of any rejection of this Sublease by a trustee, court or debtor in possession pursuant to the Federal Bankruptcy Code, or whether by summary proceedings to dispossess, service 6f notice to terminates or otherwise, Sublandlord shall serve upon the Sublease Encumbrancer written notice that this Sublease has been terminated together with a statement of any and all sums which would at that time be due under this Sublease but for such termination, and of all other defaults, if any, under this Sublease then known to Sublandlord. The Sublease Encumbrancer shall thereupon have the option, subject to applicable law, the approval of the BIA and the terms and provisions of the Master Lease, to obtain a new sublease (the 'Np&-S11blease") in accordance with and upon the following terms and conditions. W Upon the written request (the *RggMas Notice") of the Sublease Encumbrancer, given within 60 days after service of such notice that this Sublease has been terminated (or if Subtenant contests such termination, within 60 days after Sublandlord gives the Sublease Encumbrancer notice of a final adjudication adverse to Subtenant), Sublandlord shall, within 30 days of the service of the Request Notice, enter Into a New Sublease of the Demised Premises with the Sublease Encumbrancer, or such Sublease Encumbrancer's assignee or designee, as set forth below. (6) Such New Sublease shall be effective as at the date of termination of this Sublease and shall be for the remainder of the term of this Sublease and at the rent and upon all the agreements, terms, covenants and conditions hereof (except for any agreement, term, covenant or condition which can only be performed exclusively by the Subtenant or which is no longer applicable at the -time the New Sublease is executed). Such New Sublease shall require the ne►v subtenant to perform. (within a reasonable period of time) any unfulfilled obligations of Subtenant under this Sublease which are reasonably susceptible 4e,4rl5u 17 D" Q Mi4 JMPAH Mrs klar 2tt.21M 11M OitlMAtM EM "OliBYMMMideoo UJI" woqjlw u3r .• :I �Fiyrvr :t Snr•+ slyoIJ s11 SWAT M jo asealgnS ayl slaane Is se asea-1 jalsely alp ! uuapuajjns jo Suimuiwjal 'Surla3ue3'Sui4ppow wawaw8e ,qua: olui jasua iou Ileys PjolPui'IgnS PIRLIVn% dlgeuosraiun aq lou Ileys luasuo3 i43iynti 'ja3uejgwn3u3 asealgnS ay jo luasuo3 uap!jm joijd aqt lnoyiln+ slLISIP duI.nleM jo asealgnS sty Suuapuaimsjo Suileurwjal'Suila3ue3'SwAppow waWaaj$e Le olui jolua lou Ileys lueualgnS pue pjolpueignS (a) •asealgnS MaN 43ns jo Suolslnoid ay tijim a3uepio33e ul pue to sasodjnd ayi jo) asealgn5 maN 43ns japun lueualgns ay Aq pasn aq stew asealgnS slyl }o uonwidxa jo uolleu.unal ayl jol lnq asn of pallqua uaaq aney pinoM lueualgnS 4314M piolpuelgnS ylsM lisodap uo saluow lie pue asealgnS MaN vans japun lueualgns ayl 01 pjolpuelgnS Aq asmo3aj lnoyllA% pa4iisuejl pue pouglsse aq lieys saseolgns-qns lie 'asealgn5 MaN Aue jo wjal 9y1 Jo 1uawaauawwo3 ayl uodn anrl3a}J3 (n) •asealgnS MaN gans japun Alilrgeil jayljnl ou aney lieys 'eq stew am ayt se 'aaulwoN 43ns jo muejgwm3 asealgnS ay1 'luatudIsse 43ns uodn pue'(aseajgnS m9N 041 ul papnput aq Ileys suolsinojd 4aigm) asealgnS a41 Jo bl ydeigejed 30 suolsInojd pue suual ayl ylim a3uepjo33e ul asealgnS mDN y3ns uSisse'asealgnS maN ay1 ylinti a3uegdwo3 linj ui uayl sl 11 li 'Aew 'Uleyaq sH uo jo aaeld s1r u1 1:)p of ja3uejgwn3u3 asealgnS ayl Aq paleu8lsap Alilua jo uosjad e se paui)ap aq Ileys li ydejgejed siyl jo sasodjnd joj 43l4na) „aaulwoN„ s1l jo `ja3uejgwn3u3 asealgn5 ayl 'asea3 jalselnl ayl )o suolslnojd pue suuai ayl of 13a(gnS (AI) •asealgn5 maN yoins jo alep ay jal)e jo ajo)aq pjolpuvlgnS Aq palean isajalul jayso jo a3uejgwn:)ua 'uall Aue jano asealgnS siyl se Alljoijd awes ay Ao(ua lleys'aauSlsap jo aouSisse sll jo'ja3uejgwn3u3 asealgn5 ayl of paluejd asealgnS nsaN duy •sailied pjlyl jaylo hue jo'sasiwajd ayljo sluedn3ao jaylo'saassalgns'slsans wojj pjolpue lgnS Aq papalloa All enpe awo3ui jaylo jo luaj 841 IM uoileuiwjal y3ns joj lnq asealgnS siyl japun anp aq jowayl uoilmma ayl to awll 041 le pinom 914M swns lie pue Aue Aed Ileys wajayl paweu lueualgns ayl 'asealgnS maN y3ns jo uoiinoaaa ay uodn (ill) 'Atjed pjiyl a jo pjolpuelgnS of Aauow +ted of asealgnS 5141 iapun suoqe$iigo lle pue Niue 'uoiletlwtl 1noy1}m 'Suipnpui 'lueualgns 43ns Aq pawjopad Su1aq jo � ;�31851 t L�M61Co0L'B��) miler uwp �Q OW11410 t DOTAh Chen .Ei tmirm Ike 29, 2W 11 :W GMM An EDT i thereunder without the prior written consent of the Sublease Encumbrancer, which consent shall not be unreasonably withheld. Any such agreement entered into without the Sublease Encumbrancer's prior written consent shall bd void. (d) In the event the Sublease Encumbrancer or its Nominee succeeds to the interests of Subtenant by reason of foreclosure or an assignment in" lieu thereof or by reason of delivery of a New Sublease or otherwise, the Sublease Encumbrancer's, or such Nominee's, liability to Sublandlord shall be limited to its interest in the Demised Premises, and Sublandlord shall have no recourse whatsoever to any other assets of the Sublease Encumbrancer or such Nominee. The foregoing provisions of this subparagraph (d) shall not apply to any other person or entity acquiring the interests of Subtenant either directly from Subtenant as a purchaser at a foreclosure sale or otherwise or as a successor -in -interest of the Sublease Encumbrancer (or its Nominee) after the Sublease Encumbrancer (or such Nominee) has acquired such interests from Subtenant through foreclosure or otherwise. (e) In the event two or more Sublease Encumbrancers each exercise their rights hereunder and there is a conflict which renders it impossible to comply with all such requests, the Sublease Encumbrancer whose leasehold mortgage would be senior in priority if there were a foreclosure shall prevail. In the event any Sublease Encumbrancer pays any rental or other sums due hereunder which relate to periods other than during its actual ownership of the leasehold estate, such Sublease Encumbrancer shall be subrogated to any and all rights which may be asserted by Sublandlord with respect to such periods of time. (I} The provisions of this Paragraph 21 shall be self -operative and shall benefit any Sublease Encumbrancer of which Sublandlord has notice. Sublandlord covenants and agrees to execute any documents reasonably required by the Sublease Encumbrancer to effectuate the provisions of this Paragraph 21 so long as Sublandlord assumes no liability or obligations whatsoever thereunder exc_epi as set forth in this Sublease." RFW10f�ttMi A6 jM1 *JMWGjMW-WA U twWd klal' UPWLWOG .! psgvir5i err+ pajuld j (1i) :Mej ap3ildde jo uaile)o1n ul (q .aaylia si 'saslwajd posltuao ayl uo aq of pal:)adxa slel,alew Ja410 411m uoueulgwoa u! jo )lass! Aq JaWa Pala Jo asealal 'Ilyds 'uollLlJodsml 'lrsodslp 'atnpelnuew 'asn 'a:)ualslxa )o 14!sualul joipue Ai puenb 'amleu 'aauasaid asogm 'loajayl slanpoid-Aq ao spnpoid Aue jo lio aprua'aulloseS'wnalalad'suogjc�ojpA4'uollel!wiI 1noy1!nn 'Bulpnpul 'alsem Jo lelaalew 'leolwayo 'aourlsgns 'lanpoid Aue ueaw II04s asealgnS s!yl ui pasn se , R. Waal a41 o !n a (e) 1h,11114VO- ,+ .a -asealgns sl4l u, yljo) Ws se ue41 Ja410 saslwajd paslwaQ a41 io uolllpuoo 944 01 1:)adsal 41im suolleluosaidai uanpm Jo leao Aue spew ane4 'sanlleluasaidai jo slualle s,pjolpuelgnS to Aug sou 'pjolpuelgnS ja411au 1e41 0) pue :saslwaJd paslwap a4l uo sanlnUPe ,o )o asn s,lueualgnS wot) llnsal asln+saylo 4314m so 'suollejado sil u! lueualgn5 Aq pasn uaaq aney ao pasn 8ulaq OR 4a14m a3uelsgn$ snopjezeH Aug of alepi Am Aug us Jo uaaouoo 1e41 swlep Aue )o) Alllglsuodsaa Ile sawnsse lueualgnS w4l (a) 'paul)ap lalleulaJay se 'a]uelsgns snop,ezeH +tue )o asealai jo aaualslxa 041 pue saslwaJd paslwap a4l uo uoileulwelum leluawualnua due jo) A1!IIsllsuodsaj Ile sawnsse lueualgns 1e41 (p) :sllne) Ile 41!m pue 'sl watim 's! se 'uolllpuoo luasald sll ul saslwaid paslwaQ ayl sawnsse lueualgnS '1e41 P) :sas!wajd paslwap a41 )o uoll!puoa a41 ;o )lash Ashes o1 'sjallew 4;)ns o1 Maja)W 411m `Ajessnau pawaap 11 Se'uolleSpsaAu! luapWns apew sey pue saslwaja paslwap 3y1 palaadsul pue pales;lsanu i sey lueualgnS 1e41(q) 'asn papualui s,lueualgnS jo) saslwaJd paslwap a41 )o Alll!gellns ainln) pue luasaid 841 pue (.m, algailltitIV, Alanllaallo3) PJ0301 )o suosl31jjsaj to slueuanoo Aue pue suolleingai pue saoueulpjo 'smel lelapal pue alels 'Alunoa 'led»lunw 'Suluoz algeolldde pue 13d salllllgesia qw spe:,uawy a41 411m aouelldwoD pue 'sluawailnba3 ajenbyllea pue alwslas 'sa'slwaad paslwap a41 )o shads, leluawuonnua Ile pue uolllpuoD leluawuo,lnua a4l 'Ailin3as 'swalsk jalllupds a)!,l pue leaPlDala a4l 1o1 pallw!l lou 1nq'Sulpnpul'saslwa,d paslwaQ a41)o uolllpuoa a41 of padsai 411m )lash Aslles of paslnpe uaaq sey 11 1ey1 (e) saSpalmoupe Agaaa4 lueualgnS 'Zz. :smollo) se asealgns a41 01 pappe aie 6Z 48na41 ZZ s4deaejed mall L 103'1WfoUyyfiO4L0 UMV oM1Jvd tW Umotwaa aommadlat DabChen JER Psrtiare �ft bk 2WT 11M (3t►tPM AST, EDT or monitored by any governmental authority; or (ilil a basis for potential liability of Sublandlord to any governmental agency or third party under any applicable statute or common law theory, Notwithstanding the foregoing, the term `Hazardous Submnceo shall not include quantities of cleaning agents, solvents, paints, inks, photocopy materials, glues and similar materials in the possession of space tenants in the improvements on the Demised Premises or Lessee which are customarily used in the ordinary course of the business activltles of such parties and not for manufacturing purposes, so long as such use is in compliance with all Applicable Requirements, Is not a Reportable Use and does not -expose the Demised Premises, or neighboring properties to any meaningful risk of contamination or damage or expose Sublandlord to any liability therefor. Subtenant shall not engage in any activity in or about the Demised Premises which constitutes a Reportable Use (as hereinafter defined) of Hazardous Substance without the express prior written consent of Sublandlord and compliance In a timely manner (at Subtenant's sole cost and expense) with all .Applicable Requirements (as defined in subparagraph (d) below); ORenartable Us " shall mean (1) the Installation or use of any above or below ground storage tang, 01) the generation, possession, storage, use, transportation, or disposal --of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to be filed with, any governmental authority, and (Ili) the presence in, on or about the Demised Premises of a Hazardous Substance with respect to which any Applicable Laws require that a notice be given to persons entering or occupying the Demised Premises or neighboring properties. In addition, Sublandlord may (but without any obligation to do so) condition its consent to any Reportable Use of any Hazardous Substance by Subtenant upon Subtenant's giving Sublandlord such additional assurances as Sublandlord, in its reasonable discretion., deems necessary to protect itself, the public, the Demised Premises and the environment against damage, contamination or injury and/or liability therefor, including, but not limited to, the installation of reasonably necessary protectivq modifications to the Demised Premises (such as concrete encasements). (b) Duty to inform Sublandl&d. If Subtenant knows, or has reasonable cause to believe, that a Hazardous Substance has come to be located in, on, under or about the Demised 34; 44 41.41,511 i7 fdl 1 JERtOrbieia Mar2% 2W 11;W GMFM A$T, EDT [W 1G3 Z9V �0'J.IMEI 44� �� 1DDL �8L � nwiq�i I�r E! Li o�+�rvl ,r ar+i sluawailnbai a41 'sllwiad 'p,o3aj;o suolplilsai pue 5luawasea 'Slueuan03 15anli3aAp 'sa3ueuipio 'suollelnSai 'salna 'smul Ile uraw o1 asealgnS siq uI pasn s! weal 4314m 'quaurJn-'M7U grlu!Fw. Ile 41!m.,AIdw03 'rauuew 418w11 a uI pue AlluaSillp 'Alin! 'asuadxa pue Iso3 aloe s,lueualgnS le '11e4s lueualgnS -51u0u.0J4noam v, (P) 'wawaaaie 43ns 10 awls a41 le Sullum u! WolpUelgnS Aq paatge os Alle3ipads ssalun 'aauelsgnS snopiezeH of padsai 41ins asealgnS s1y1 japun suopeSINO sl! woal IueuaignS asealai Ile4s aueuaignS pue pjolPuelgnS Aq olu! paialua Iuawaai2e aseala., jo uojlellaouea 'uotleulwJal ON •asealgnS srgl jo uopeulw.ial sallies jo uopei!dxa ayl anln,ns llegs pue'panlanul ulalaY ualleulweluo3 Aue )o to 11oaia4l Iuawalege jo/pue uolleaOlsaj 'uollelpawai 'lenowaJ ISOM pue Baal ,sAaujoue pue ,siuellnsuo3 2ulpnl3ui) uoilegllsanur l0 IS03 a41 pue 'aueualgns Aq pajajjns 10 paleaj3 Iuawualnua a41 jo Avado,d 'uolied of Ainlul jo uogeulweauo3 Aue jo sl3alja a41'oI pailw1l aq lou Inq'apnIDUP Ile4s p) 4dejgejedgns 9141 japun suope8llgo s,lueualgnS yoijum s,weuaignS japun auoAue Aq jo IueualgnS joj ao Aq saslwaJd pas!wap 041 owo 148nouq a3ueisgn5 snopiezeH Aue Sulnlonur ao to Ino 8ulsPe sao; ,sluegnsuo3 pue ,sAawoue pue s1lwjad jo ssol 'sallleuad 'sasuadxa 'suall 'swlel3 'slso3 'sivawgpnl 'saplllgell 'saSewep Ile pue due Isuide pue wojj ssaluue4 'saslwaid paslwap a4l pue 'Aue 11 'jossal puno3S pue siapual 'saaAoldwa 'sluaSe sll 'pjolpUeignS plo4 pue pua}ap 'I3alo,d 'A)!uwapul Ile4s IueualgnS (3) j•walsAs jamas keliues jo Sulgwnld 24142n0J41'u0!1ellwl1 Ino4lla+'8ulpnl3u!) sasli,uaid paslwap a41 Inoge jo japun 'uo 'ul pasealai 10 .pall!ds aq of a3uelsgnS snoplexeH due llw,ad jo asne3lou Ile4s aueualgnS 'saslwaJd paslwa4 441 Sulnlonul asn algeliodaal Aue ui pani0nu1 aq Aew se sluawn3op 43ns Ile 'ot pallwll Iou Inq 'Sulpnl3ui asueisgnS snopiezeH 43ns '01 ainsodxa ro 'jo a2�e43slp 'asealai '11!ds 'a3uasaid a41 Rulumuo3 Ailed alenlid ao A3!aoglne leivawwan08 Aue 'woj) panla3aj to 'ol uan12 gulpaa3oid JO 'u0pe 'wlel3 'asua7El 'veld ssau!snq 'llwmad 'uollnilddiz 'uoilellslSai 'Rapou 'aJodar 'Iuawalels Aue jo Ado3 a 41lnn Ja4laD01 ')oaa844 a3llou uallljnn puolpuelgnS anlg Alalelpawwl Ile4s IueualgnS 'p,olpuelgnS Aq of paluasuo3 Alsnolnajd se ue41 Ja410 'uoaJa41 pale3ol sluawanoidwl ay1 jo saslwaid awditk e" D"Chon JER t9rtnarr 'MW 20, 2007110 41 T4X AST, ECrr of any applicable fire insurance underwriter or rating bureau, relating in any manner to the Demised Premises (including, but not limited to,. matters pertaining to (i) industrial hygiene, (ii) environmental conditions on, in, under or about the Demised Premises, including soil and groundwater conditions, and (iii) the use, generation, manufacture, production, installation, maintenance, removal, transportation, storage, spill, or release of any Hazardous Substance), now in effect or which may hereafter come Into effect. Subtenant shall, within five days after receipt of Sublandlord's written request, provide Sublandlord with copies of all documents and information, including, but not limited to, permits, registrations, manifests,- applications, reports and certificates, evidencing Subtenant's compliance with any Applicable Requirements specified by Sublandlord, and shall immediately upon receipt, notify Sublandlord in writing (with copies of any documents Involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving failure by Subtenant or the Demised Premises to comply with any Applicable Requirements. 24. Investigation, Sublandlord, Sublandlord's agents, employees, contractors and designated representatives shall have the right to enter the Demised Premises after giving 24 hours notice to Subtenant (or a shorter period of time where emergency circumstances exist), for the purposes of conducting a Phase I Environmental investigation prepared by an environmental engineer acceptable to Subtenant for the existence or potential existence of any Hazardous Substance, and as may be necessary to treat, monitor and/or remedrate such Hazardous Substance, where Sublandlord has reasonable cause to believe Hazardous Substance (as defined under Paragraph 23(a) above) has been disposed of or released onto the Demised Premises, or is threatened to be released and/or disposed of onto the Demised Premises. -Sublandlord shall also have the right to enter the Demised Premises at all reasonable times after first providing 24 hours notice (or such shorten notice where emergency circumstances exist), for the purposes of inspecting the general condition of the Demised Premises and for verifying compliance by Subtenant with this Sublease and all Applicable Requirements. Sublandlord is entitled to employ experts and/or consultants in connection therewith to advise with respect to Subtenant's activities, including, but not limited to, the existence or potential 4,140,400 17 Owfiderdid 13 DwInChen im pu bms MW28, 201W 11M C W.04AST, EDT C Q f 1pp I Ifi�iF'+t ifi .i.r+ pue lucualgnS 8u11aaiold axeinsul Alt��gc1� uoiln1lod 'asealgnS S141 )o Lum ayi inoysn0J41 POP pue aojol ui dae l pup utelqo Ileys lueualgnS 'sale, alrgeuoseaj Allei»awwo:) ie algeuielgo s1 awes 3i 'asealgnS slyk iapun pauieluiew aq of paiinbai a7uemsul atp of uollfppe ulmlsqll�9Z Iuawssassp ivanbasgns Aue io luawssassy 1pluawu0Jlnu3 ayl Jo linsai a se Ajessanu aq of umoys uotielpawai jo/pue dnueaja 'qu1io)!uow '1uawleaj1 alelidoidde' pue Aaessaaau lie luawaldwi Ijetls pue 'luawssassy 1elu8wu0JInu3 ayl )o gnsai a se paitnbai ivawssasse pue uoilegllsanul Jayun) Aue aialdwv:) Alidwojd Ijeys It ieyl saat$e ia4wn) wpualgnS lUaWSSassy Ieivawuainu3 ayl )o uolleluawaldwi ay jo awil ay le saslwajd paslwa0 943 of ssa»e 'plolpuelgnS jo IueilnsuoD a SulpnlDul 'piolpuelgnS )o antlpluasaidai jo luase Aue io pjolpuelgns M011F IINS pue 'luawssassy leluawuo,lnu3 a4l ;o asmo3 ayl ul sasiwaJJ pasiwas0 ayl woi; ua:lel saldtues Jalempunoil Jo ioden 'lioS Aue jo saldwes illds yi!m PJolpuejgnS apinoud hays Pup'luawssassy IeluawuoJInu3 vans joj ueld Tone a Jo lenoldde S,pjolpuelgng uielgo lieys lueualgnS 'luawssassy lelu8wuOJIAU3 ayi Sulwawaidwl of JolJd •saslwaJd pasiwap ayi Ja (ADOW350359 lU4UdtLJU0JJAU3, ayi) ,.lUawssassy leluawuo11nu3 I aseyd, a uuopad Ile4s'asuadxa pue lsoa ajos 511 ie 'lueualgnS 'asealgnS slyl Jo uoileildxa ayl lave sAep pg I ueyl jowea ou inq'pualxe o; suoildo a43 of luensmd papuaixa aq Aew Lions se 'asealgnS sly3 Jo uol3euI"Ol ayl;o alep aq) `al)e sAep 06 ue4l jalel oN • � sz •lueualgnS ay )o saiilniioe Jo suolleiado a43 )o linsai a se 'lied ul jo alogAv ut 'saslwaJd pasiwap ay uo a�uelsgnS snop,ezelq Aue jo aoualslxa ay leanaJ Ileys uon:)adsul Lions 11 Jo 'sluawalinbaS algeailddy Aue paleloih sey jo 'pouad am alge.)lldde Aue puoAaq asealgnS siyl Jo Lpeajq ul to llnejap ul sl lueualgnS ley leanaJ lleys uoil:)adsul Lions UI Aluo pue) p 'lueualgnS )o Allligisuodsai Ojos ayi aq Ilpys pue Aq pled aq I leys'oiaJayl sasuadxa pue slsoa paielaj Ile pue 'uolllpuo� leluawuoJInua Aue jo uogelpawa,i ao luawieaJI 'Suuoltuow wanbasgns jo uolleSllsanul Aup Suipnl:)ui 'saslwaJd paslwaa 84310 uollipuo:) ay )o uoiloadsul Aue to isoo ayl •sasiwald paslwa(3 ayl woJ) Jo uo aoupisgn5 snopiezel.l Aue jo IenowaJ Jo aoueualulew 'Suuol1UoLu yUaLUSSaSSe 'ualleSpsanul 'uolmado 'uotieilelsui s,lueualgnS ao/pup saslwaJd paslwaa ay uo oweisgns snoplezeH Aue jo azualslxa �i3 `St31i 1Q3xfE%Aa 4i /A�QL'6Z �I 1 . OXKqad U3P Um tw&a Es Cmaderied Dwh Chars JERPerhmn MW 29, 200? 11:0 4MM AST, EDT Sublandlord from and against claims for bodily injury, personal Injury and property damage arising out of pollution or any environmental condition on or migrating From the Demised Premises, and from and against any claims concerning or relating to the assessment, investigation, monitoring, treatment or remediation of any pollution or environmental contamination, which involve or arise out of the Subtenant's or its agents or representatives use, occupancy or maintenance of the Demised Premises and all areas appurtenant thereto. The Pollution Liability Insurance shall be on an occurrence basis and shall provide single limit coverage In an amount not less than$1,000,000.00 per occurrence, and shall name Sublandlord as an additional insured. A certificate of a Pollution Liability Insurance policy naming Sublandlord as an additional insured shall be provided to Sublandlord within 60 days after Subtenant takes possession of the Demised Premises. Any limits of the Pollution Liability Insurance shall not, in any way limit the liability of Subtenant nor relieve Subtenant of any obligation under this Sublease. All such insurance to be maintained by Subtenant shall be primary to and not contributory with any similar Insurance that may be carried by Sublandlord, with any insurance carried by Sublandlord to be considered excess Insurance. 27. Lien Protection. Subtenant shall pay when due all claims for labor or materials furnished or alleged to have been furnished to or for Subtenant at or for use on the Demised Premises, which claims are or may be secured by any mechanic's or materialmen's lien against the Demised Premises or any interest therein. Subtenant shall give Sublandlord not less than ten days' notice. prior to the commencement of any major construction work In, on, or about the Demised Premises, and Sublandlord shall have the right to post notices of nowesponsibility in or on the Demised Premises as provided by law. If Subtenant shall, in good faith, contest the validity of any such lien, claim or demand, then Subtenant shall, at Its sole expense, defend and protect itself, Sublandlord and the Demised Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof against the Sublandlord or the Demised Premises' If Sublandlord shill require, Subtenant shall furnish to Sublandlord a surety bond satisfactory to Sublandlord, in an amount equal to one and one- half times the amount of such contested lien claim or demand, 44-41-51117 WON" 1-5 DWM Chan JERFWbm ra tiler 20.2W 11M t?JlsPW ASt EDT JA�'L8ti► yOiYMD fili`L L WGZ'er� �L'M �a�a aar 91 IapeOm= Sllll lapun pall110j1ad aq of ued s,lueualgns uo uoilegilgo Aue )o sauuetu Alawli a ut oauetwopad ayi ui iueualgnS Aq yaeajq ao ilne)ap Aue jo ino pue 'saailAul io 'saadoldwa 'sjolarjluoa 'slua$e s1ji 7uvuaignS jo IaalSau ao uoissituo 'lae Aue'ssaulsnq s,iueuaignS jo lanpuoa ayl 'jueuajgnS Aq saslwaJd paslwap ayi )o Aauednaao ayi 'yllAti uoilaauuo] ul JO '$ulnlonul ';o Ino Su!spe sagq!gell jo/pue sasuadxa 'saaj ,sluellnsuo:) pue ,sAau rolie 'slluuad jo ssol `salilpuad 'sivawSpnf 'suall 'sisoa 'sakwep jo/pue s7uaj jo ssol 'sWipIa Ile pue Aue isuleie pue wa,j'siapual pue vauved'jossal puno,8,o,aisew s,puolpuelgn5 Image sii pue pjolpuelgns 'saslwajd pastwaQ ay ssalwiey ploy pue pua)ap'15aiojd'Altuwapul Ileus iueuaig6S'i3npuo3siw Injll!A'i jo aaua$!loau s,pjolpuelgnS joj idaax3 'xl7DW3p1 •5Z -asealgnS sit{i ul pajinbai se sas!waij pas!tuap ayl aaoisa, pue iiedai of uo!leSiigo sil of pal gns jueualgnS Aq panowaJ aq gegs Pue iueuaigns jo AUadoid ayi ulewai lleqs sainixtj aped s,lueua)gnS 'aal`laeid pool jo/pue sluawaiinbad algeailddy Aq pailnbai aq dew se lle'saslwaJd paslwap ayl uo sainlanils Aue jo suoiliod jo ivawdlnba 'sajnlxU Aue jo uolielpawai jo auowaaeldaj 'lenowaJ aip of papwll iou inq Su!pnlaw 'lueuoignS Aq paleulwewoo jamm punoid jo lelialew Jaylo 'Iaos due jo uolleipawai jo luawleail 'Su!jolluow 'luaulaaeldai 'IEAOwaJ ayi pue lueuaignS joj ao Aq pallelsui siluei agejois Aue jo lenowaj ayi se llaM Se'suolleialle paumo-iueualgnS pue'ivawd;nba'sSulyslwn) 'saynix.) apeu s,lueuaigns jo lenowaJ Jo aaueuaiulew'uOliellelsuf ayi Aq pauolscm aSewep Aue jo jledal ay; apnpui llegs lueua3gn5 jo uoileSilgo ayl-asealgnS sjyl Wun suoue$llgo sil jo lie Sunwopad lueualgnS Aq 10 aalUeid oaueualulew pool Aq paivanajd uaaq aAeg pinom legl uollejolaaiap jo aSewep Aue apnlau) iou Bays AM pue JV'm AMINO •poldoxa Jeal pue JeaA1 /Jeu!pio'medai jo alels pue uoll!puo3'japlo Suileiado Poo$ u, pue'iueuaignS ayi jo MOW Ja uotUe JO'suoilejado ayi )o gnsai a se jo Aq Ued ul ao aloyM q pasnea uolieulweluoa leivawuoJlnua ao uopnllod 'a�ueisgn5 snopJezeH due jo pue s!jgap )o aaaj pue ueala'alep uolieulwjal ja!Ilea Aue jo wial asealgnS slyi jo Aep isel ayl jo pua ayl Aq saslwaid pas!waq aql japuaiins Ilegs 3ueuaign5 '8Z •wlela jo uall Bans jo vmgjo ayi .uoij M) saslwaJd pas!waQ ayl jo Suiploy agl joj mul Aq pajlnbai se 'awes at{i joj Allllge!1 lsutege FuolpuelgnS BulAjluwapul lAa'1,8Y 1�3J�f? 9D� LL �,OOi: '8� gkY 4 . WmqmdtW uaw qm OWA* rdw Dwb Chan JER iiotwn _ Mann 20 711:w sum An Errr Sublease. The foregoing shall include, but not be limited to, the defense or pursuit of any claim of any action or proceeding involved therein, and whether or not (in the case of claims made against Sublandlord) litigated and/or reduced to judgment. In case any action or proceeding be brought against Sublandlord by reason of any of the foregoing matters, Subtenant, upon notice from Sublandlord, shall defenfl the same at Subtenant's expense by counsel reasonably satisfactory to Sublandlord and Sublandlord shall cooperate with Subtenant in such defense. Sublandlord need not have first paid any such claim in order to be so indemnified." 8. Correction of _Conyerltion Center Legal .Q95cription: Termination of Easements As soon as reasonably practicable after the date hereof the City and the Convention Center shall amend the Convention Center Sublease to change the legal description of the property demised thereby to that described on Exhibit G attached hereto. 9. Rgcordatlan of Memmodum. The parties hereto agree that a Memorandum of this Agreement shall be recorded in the Official Records of Riverside County in the form attached hereto as mil I. 10, jategration. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties concerning its subject matter and contains all of the covenants and agreements between the parties with respect tozhe assignment and transfer of the interests contemplated herein. 11. NQ Rgoresentations. Each party to this Agreement acknowledges that no representations, inducements, promises, or a&reements, oral or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement, or promise not contained In this Agreement shall be valid or binding 12. Modiocations. Any modification of this Agreement shall be effective only if it is in writing signed by the party or parties to be charged. 13. CUMEpart . This Agreement may be executed in counterparts, each of which shall be deemed to be a duplicate original, but all of which together shall constitute one and the same instrument. 14. 5averability. If any provision in this Agreer"hent is held by a Court of competent wr,sdiction to be invalid, void, or unenforceable, the Femaining provisions shall nevertheless continue in full force without being impaired or invalidated In any way. DWb CMIr dJE pallm Mw28, 2W 11AG QMM AW, EDT lA�'.LeY!'031�1E) � L4 l.OD�'9S �ry �4`J W►�4 � .I 4s"�rrir Sr :nr OINV1S 1331 AIIVNOIIN31NI 3JVd 40 N3CNIVW9W 'uailtJM anoge isjr) jead pue step ayl jo se pamaxa aq of ivawaajgy qyi pasm aney otaiay sagged ayi `303213HM SS3NlIM M •papieme JailaJ ao sa8ewep layto due of uolilppe ui pue pannaul sisoo unoD due of uomppe ul 'saaj .sdaulone algeuoscai of palliiva aq Keys (dved Sullrenajd 'uolteSrill }o Wana ayi ul 'Jo) Aped Sulilne;ap-uou ayi'ivaw2pnf jewj of paln3asoid jo pal Us! inns jou jo jaylagm 'olaiay iuens,nd suolleSrlgo S11 jo ilnejap ui sI Aped due Juana ay ul jo'Agajaq paleldwaluo.) suollmsueil ayi ,o Juawaa,Sy Sly jo lno Sulsue uoilae jayio due jo 'jo Jinejap to yDeajq paSalle up joj 'jailai aniiounfut jOJ luawaaaSy slyl japun saiped ayi Jo s1481J ayi )o u0:ieae130p a JOI Suipaa3ad ,o uopae up sSuuq olajay dyed due teyt Juana ayi ul •1333 9,AaUjOjjV � t *ways 48=41 pue dq Sulwlel3 suovad lie pue 'slay jo voleilqutwpe'sjoinDama 'sjossamns anlindsai �tayt pue MALL died pea dq algea:)jo)ua aq pue jo lgauaq ayl of ainui pue uodn 8ulpulq aq lleys tuawaaJSy slyt 10 SLUM ayi jo IN '9 i •uolin,axa sll jo uotlexi lenjDe ayl jo anluadsa»l'suolslnoid jo swjal siI a3103ua jo taidialu+ 01 Su,paawid jo uopve 4ue ul anuan pue uoltorpsijnt jo sasodind job 'eluwo}Ile:) 'sgulids wled ul pain -ma uaaq aney of pawaap aq PLIS pue elwojlle];o atet5 ayl Jo sm 1 ayt of oulpiwoe paniisuoa pue dq pawanoS aq Heys ivawaai8y sry,l_ 10'BIjujaA55 St f , im l8M ww 0 NF Low laz M9I DmIwd W DaWn Char ,im Fartnae Mw 29, 200711.06 614 04AST. EDT AGENCY: THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA BY:�-y,rcL i, • ,r,,�.vt. Its: r- ¢ A. e-P— Ae THE CITY: THE CITY OF PALM SPRINGS, a municipal corporation By: Na %ellt�- Tltl,Q)hv-. 04, ELN,&xX-& Y r "r-e Q APH: AP/APH PALM SPRINGS, L.P., a Delaware limited partnership By: AP/APMC•G.P., INC., a Delaware corporation, general partner By: Michael S. Gallegos President CROW: HOTEL AND CONVENTION CENTER PARTNERS I, LTD. HOTEL AND CONVENTION CENTER PARTNERS 11, LTD. HOTEL AND CONVENTION CENTER PARTNERS III, LTD. HOTEL AND CONVENTION CENTER PARTNERS IV, LTD. HOTEL AND CONVENTION CENTER PARTNERS V, LTD. HOTEL AND CONVENTION CENTER PARTNERS VI, LTD. HOTEL AND CONVENTION CENTER PARTNERS Vll, LTD. HOTEL AND CONVENTION CENTER PARTNERS Vill, LTD. HOTEL AND CONVENTION CENTER PARTNERS IX, LTD. HOTEL AND CONVENTION CENTER PARTNERS X, LTD. HOTEL AND CONVENTION CENTER PARTNERS XI, LTD. By: CPS, Ltd., a Texas limited partnership, the general partner for each of the eleven California limited partnerships listed above wrl D" ChM JOt PWWn Mar 2%2W 11M QUWAST, IEW m jA318Y14311�F?lIp:41` WDZ'BSAW . aMri-oOFt4++,pmamayop"wH 4"S'a" aa4 QXKWPj wJ'mer6wjr�.witty-u4'**wwr wwte. :Bupueseidad al sauNS ua[Il0 ❑ _ jolenrasuoo Jo ullplenD ❑ aelsruJL u8d-uj-Ao loUv Cl lejoue0 ❑ Psmtun ❑ jeuimd ❑ AUMIRL jeoglo elejodroo ❑ tenmpul ❑ :atugN sJoublS :seBed to jegwnN :Bupuesaidall sl jaubig -ja410 d loltituosuoo jo uv pjvno ❑ aelsrui ❑ laej•ul-Aswopy ❑ arauao ❑ Pellwll ❑--jaulJed ❑ :(e)ellli. jeallto sl>'jodroo ❑ lenmPul ❑ :eureN s,jauels (s)aauBIS Aq Pawlalo (sel)AIloudeo :aAM PaweN uetli je410 (s)jauBlS el$O luewnwa ivawnaod to adA.L jo eal-L ;uaulnao0 poq*enV jo uolldllosoq 7t N=-14P jo47otn► Of uuol W ja luawtparlatu Puo la OW& luaptM04 ltmatdW=pue luorw[.7opa[tl uo AtpAai AftW W MOM aa44AW ✓1 %IIIOkPaynDsl tat s! M" W411 001 awl Omu 7VNOudO 'leas leioltlo Pub pue4 Aw SSSNiIM •luawn4cul 941 pajfl'.axe 'pope §#uosjed atll 4a{4m to 11e4sq uodn AMue a p jo - g(a)uosred a411uauuulsul at4 uo (sQejn4eu6pwAqmmm+sp4 Aq 1841 pue XRaftoedea pezpMnv wa#awl4 ul oums stp pelnow a 49titUstXM jVW aul of pftolmotgaB pule luaturulsul ultlllm stp of pscjposgns>alllm W9wvu riot .(s)uosjad etll eq of aousplma fici slsitsc.loa.+al a ilD•-aw al umowl Alleuosjad auwas ralaat J.jeuq .W sem04,L pajeadde Allouosrad taiavtiAatte0r~•r. fN+worw.+w�N •too a)tgnd XJvION 'PullaPah 'I BUM3 'etusjoleq 9661 'S .ragwanaH uo ap}s.tan Ev to /4urroo Qiu.lo�!•i4� lflatel5 LNBW04331MONXDV 3SOdHnd*I1V VIN»O:IlIVD �I'.�sv� ��s• toa�'ox�l aaagwd tC-lr LIM WAG oot1Jdwad DWAM Chun JEFt Ph atmra Islay 29, 200711:00 t AST, EUr AGENCY: THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By: Its: THE CITY: THE CITY OF PALM SPRINGS, a municipal corporation By: Name: Title: AP/APH: AP/APH PALM SPRINGS,.L.P., a Delaware limited partnership By: AP/APMC-G.P., INC., a Delaware corporation, general partner By: Michael S. Gallegos President CROW: HOTEL AND CONVENTION -CENTER PARTNERS I, LTD. HOTEL AND CONVENTION CENTER PARTNERS 11, LTD, HOTEL AND CONVENTION CENTER PARTNERS Ili, LTD. HOTEL AND CONVENTION CENTER PARTNERS IV, LTD. HOTEL AND CONVENTION CENTER PARTNERS V, LTD. HOTEL AND CONVENTION CENTER PARTNERS VI, LTD. HOTEL AND CONVENTION CENTER PARTNERS VII, LTD. HOTEL AND CONVENTION CENTER PARTNERS Vill, LTD. HOTEL AND CONVENTION CENTER PARTNERS IX, LTD. HOTEL AND CONVENTION CENTER PARTNERS X, LTD. HOTEL AND CONVENTION CENTER PARTNERS XI, LTD. By: CPS, Ltd., a Texas limited partnership, the general partner for each of the eleven California limited partnerships listed above 19 Dwb Chen im Parb" (fir 29. =711.0 QMTOt Mr, Wr NO .l8jWf0'mW4&/AQ Vjg" RNUP d W i940 4000 PrAgoom 'leas IelaWo pue puey Aw SS3N11M 'll paln72xa SONI'SdS W1Vd 30 AID 3141 ley) aw 03 paepalnaou)Pe pue SDNISdS WIVd 30 KLI7 3H1 !o se luawrulsul siyl painaaxa oqm uosiad ayl aq of (a]uapina kJO%:Iie;sges;o slseg ayl uo aw of pano:d jo) aw of uMouj Alleumad ' pa.readdv 411euos,ad '�lljoylne pauBlvapun ayi 'aw ajoJaq '661 - Jo Aep ._._ SM up o!Ignd /Ge40N 3O AINnoD 30 31 V1S (leas) 'leas IVPWo pue puey Aw SS3N11M 'siouailp;o pjeoq sll;o uopnlosaj a ro smel -Aq sil of luensind luawnilsul ulylim ayi painoaxa uolleiodiOD yens ieyi aw of paffpalmouj:)e pue luatunnsul ulyllm ayi painiaxa leyuoliejodio> ayl Jo luaplsaJd ayi se luawmism ulyllnn ay palnaaxa oL4m uosiad ay1 aq 01 aouapina ktope}spes ;o slseq ay uo aw of panoid jo aw of umoun Alleuosiad 'so$alleO •S (aetp!W paleadde AIleumad 'ale1S pies jo; pue ul :)rlgnd tieiaN a 'pauglsSllun ayl 'aw aJo;aq '6661 ' up 30 uNnO] 'SS ( 30 31VIS luaplsaM 031n, 4'11apuli9 -S saljey:) 1 ;All jauued lejaua8 511 'uolielodroo sexal e'ro's8uijdS wled :49 r' !� `J,BY bo'�Ilf] 9Q; 4f laoZ'dL+W+I *WJPdW MOUM Fwn9pm aadfat Dwh Ctun JERFWtwn Mar 2U, =7 iim shtw An EOrr By: Palm Springs Co., a Texas corporation, its general partner By:. Name: Title: STATE OF ) ss. COUNTY OF ) On 1998, before me, the undersigned, a Notary Public in and for said State, personally appeared Michael S. Gallegos, personally known to me or proved to me an the basis of satisfactory evidence to be the person who executed the within instrument as the President of the Corporation that executed the within instrument and acknowledged to me that such corporation executed the within instrument pursuant to its by. laws or a resolution of its board of directors. WITNESS my hand and official seal. (Seal) Notary Public STATE OF COUNTY OF On this _ day of . 199_, before me, the undersigned authority, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument as of THE CITY OF PALM SPRINGS and acknowledged to me that THE CITY OF PALM SPRINGS executed it. WITTINESS my hand and official seal. DWk &W JtR PWtot ra t+ V2k 2W t1:Ettl 0ktlFD+t Asir, EVr lA3 I;BiV �Ji^IE? 90:YY LOOL'BS�W Saar LNRD LVAG FFNPOM or leas 1e131]lo pue pue4 Attu S53NIlM 1! paln3axe SONI8dS WIYd 3O ":) 3Hl 1e41 aui 01 paBpalanouT3e pue S0N131dS VYIVd 30 ADD 3H110 se luawnilsut s!41 polmaxa 04m uosiad a4l aq of (oDuapina AiolaepIL's jo slseq 841 Uo aui of paAoid Jo) aw of uAAouj Alleuosiad ' paieadde Alleuosiod '4iO4ins paugmapun ay 'aw aiolaq '"66l ' jo Aep S141 uO f Dilgnd AieioN L [1) 3o AlNnOJ 30 31Y15 F..-7 . !"F .�.. raNa nprp�are y tfldl/i'il�111W I "I'll -leas 1e131}jo pue pue4 Aw 553N1iM 'sio132ilp jo pi" sl! ;o uolinlosai a io sMel -Aq sp of luensind luawnilsul ulyllm 841 paimaxe uogeiodio3 vans 1e41 ow of pa8palmousiae pue ivawnilsu! u1411m 941 paimaxe 1e41 uolieiodio:) ayi Jo luaplsaid 044 se luawniisu! u'41!m a4i pain3axa 04m uosiod 041 aq 01 a3uapina Aiol3ejslie5 10 slseq a41 uo aw of panoid iQ aw of umoul Alleuosiod '508alILO 'S IaNOM paieadde Alleuosiod 'aleiS plea iol put? ul 31 lgnd AMON a 'pau8lsiapun ay 'a u aiolaq '966 i ' uO { 9'' JO AINnOJ '5s { { V.1 I ll 1 " 3O 31ViS MOO :aweN .A8 iauiied leiaua8 511 `uopeiodioa sexal e''o] s8ulid5 oiled :Aq 1m'J$V mm mI.UOi'Q im dtw UM%ma DmIn chon JER [mots Mar 2% 2WF 11IX G11'W AST, W . (Seal) Notary Public STATE OF CALIFORNIA } ) ss COUNTY OF I On , 1998, before me, the undersigned, a Notary Public in and for said Stage, personally appeared , personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within Instrument as the Executive Director of the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA and acknowledged to me that such COMMUNITY REDEVELOPMENT AGENCY OF THE CITYsOF PALM SPRINGS, CALIFORNIA executed the within instrument. WITNESS my hand and official seal. (Seal) Notary Public STATE OF CALIFORNIA 1 5s. COUNTY OF } On , 1998, before me, the undersigned, a Notary Public in and for said State, personally appeared personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within instrument as the of the Corporation that executed the within instrument and acknowledged to me that such corporation executed the within Instrument pursuant to Its by- laws or a resolution of its board of directors. WITNESS my hand and official seal. (Seal) tiWtl! ZiiMn AR PAtm Notary Public Mr u«q UVAa /ww��►*Pz I/ ' W OOOa •fN=wmmx � � An tleasi 'leas lelaWo pue puey AW SS3N1lM •SJojDajip jo pjeoq sp jo uollnlosaj e Jo sMel-Aq sil of wensind 3uawmisu1 ulyllnn ayl painyaxa uollejodjao yens ley aw of pa9palMoupe pue luawnilsul ulyllnn 041 palrvaxa leyl uolieaodjo, ayl JO luaplsaJd WIA eyl se luawnnsul ulyllM ay) palman oyM uosiad ayl aq of aivapina Alopejspes to slseq ayl uo aw of panad jo aw of uMoul Alleuosiad"if 'llapUlig •11 saljey' pajeadde dlleuosrad 'a1e15 pies jo} pue ul ollgnd AMON a 'paAlsiapun ayl 'aw ajolaq '966 L '8Z jagopo u0 ailgnd ARION ( SVIIVQ 30 ol1NnOJ •ss t SVX31 90 31VLS Was) 'leas lepWO pue puey Aw SS3NAAA •luawnilsul UI411M ayl pamaoxa VINaOJIIVJ'SJN1bdS YYIVd �o A,1J:) 3H13O ADN30Y IMM013MMX 4UINnWWOJ 4ons ley) aw al paSPalMou><oe pue d1N'80AIlV7 'S7NIbdS Widd JO AID 3H13O AJN30V 1N3WdOI3A3ClR A JNnWVYOJ 841 Jo JODaJrQ 3ngn3ax3 ayl se luawnJlsul U1411M a4i paino-axa o4m uosled ayl aq of a:)uapina tiope}slles jo slseq ay) uo aw of panoid jo aw of uMoun Alleuosiad pajeadde dlleuosiad'a)e)S ples joj pue ul ollgnd AMON a 'pauSlsiapun ay) 'aw arolaq '966 L UO jo AiNnoD YINVOAIIVa 30 31VIS :)lignd A ION (leas) aaa!jWt msay►b=WA" aid H3r MDR" oxadentw Dwb Cle n im tea tw" IYtea29, =11= GW-04 ABT. EV EXHIBIT A LEGAL DESCRIPTION Lots 1 and 8 through E inclusive of Tract No. 20485, in the City of Palm Springs, County of Riverside, State of California, as per map recorded in Book 147, Pages 55 and 56 of Maps, in the Office of the County Recorder of said County.. i i\ -IF% 44 '1i2Nrslb :b►4k A- 1 1 fleldi � DOM Cheenn }y�,��AMF /m 1 MW 20. 2VHI 11 W QW(K/1V 1. EDT i 0 Em 1a NJ � isv ru�o � �F toat'ez �l wouwJ� �r Mo ua 1�e imp" .r.Mr yl SON £F;0 8ullsrsuOD ivawnw(] payaeuv aa5 3SYPons i ' .iA9`j8V#3�4i1Jt10�`�C+�! UMUM I aar&dWW Davhl Chan JERParlrwo I fhar E8, 2007 f 4:06 (illi'�04A87', EDIT UNITED STATES DEPARTMENT OF' nM INTERIOR BUREAU OF INDIAN AFFAIRS PALM SPRINGS FIELD OFFICE APPROVAL OF ASSIGNMENT AND AMENDMENT OF SUBLEASE AND TERMWATION OF SUB -SUBLEASES UNDER MASTER LEASE NO. PSL-325 (Hotels I -XI) The within Assignment and Amendment of Sublease and Termination of Sub. subleases between THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY - OF PALM SPRINGS, CALIFORNIA, THE CITY OF PALM SPRINGS, a municipal corporation„ HOTEL & CONVENTION CENTER PARTNERS I, LTD,, HOTEL & CONVENTION CENTER PARTNERS, II, LTD„ HOTEL & CONVENTION CENTER PARTNERS, III, LTD., HOTEL & CONVENTION CENTER PARTNERS, IV, LTD., HOTEL & CONVENTION CENTER PARTNER V, LTD., HOTEL & CONVENTION CENTER PARTNERS VI, LTD., HOTEL & CONVENTION CENTER PARTNERS VII, LTD., HOTEL & CONVENTION CENTER PARTNERS, VIII, LTD., HOTEL & CONVENTION CENTER PARTNERS I%, LTD., HOTEL & CONVENTION CENTER PARTNERS X, LTD., AND HOTEL & CONVENTION CENTER PARTNERS ?II, LTD., each a California limited partnership and AP/APH PALM SPRINGS. L.P.. a Delaware limited partnership, consisting of 21 pages and attached Exhibits A through I together with admowledgment pages, is hereby approved. This approval is contingent upon this office receiving within three (3) days of escrow closing the following; 1 Two (2) arigitiany signed Assignment and Amendment to Sublease and Termination of Sub -subleases. 3. Two (2) Originally signed Amendment to Lease. Dated. -kL- Director , Palm Springs Field Oiiige Bureau of Indian Affairs Pursuant to Ilia authority delegated by = DM 9, SeCretWyg Order Nam. 3160 and 31". and 10 BIAM &Wetin 13. as amended. and Sa-ameraa Area QiBae Redelegatlaa Qrdex No. 1 (43 r R. "131). caes0de�e1 C Mer2%2w iia aMPxAsxEvr 51 Nol .lam 1,BV f01lt�F? iO: LF h00S'8Z �'11 OPM419a Mgr tw4D wou Ppioppm (*aTtddv sag BujPIODO t INUO14TPPY 00't$) 11DI,ZVMOdHI pKYQ1to3ZV god SOYdB 8.LYa08aY HaIAOgd OIL aZQaY ZDVd OIHS - - S3wmenS-9nS �O NOIIVNIW8310NV 1N3WNJISSd _ a-tto-950.80S O\ d v y't•tZflDt :oti ,nats3 it,; --j atu a,agr '�-- ,"mm L7� 86616 - ABN WV 00:B 1V at,0033 uw a3m3MU u ON JaPip tt0-rro:� -bsg 44ain 'a uuV :u3aY ZQZD9 apasOTQD "*'%Uaa 10013 PuZZ 470agis y3n383uanas O17 .�. .Pugt�a gag I iavag IIVAR u1e3suftosg o�. �Irly a�aao�sa .3u �ti a. � o) sul apij, uw•tr-ut4 .t6 03M-663a D%101'OJ"11 ITUNIV Ili," ''u saa topawd ISJ j 'Gs`-'w�� '(znA Ag I ..,anbaa 6uIPJODGa MID Waa owb tw JFRta U6r29, 2W 11:r14 (#WN ABT, Wr ' 4 R7F11 This ASSIGNMENT AND TERMINATION Of SUB -SUBLEASES (this "Agreement'i is made as of the 5- day of Aj 0y- — - - - 1998, by and among THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA (the " enQ-"), HOTEL & CONVENTION CENTER PARTNERS I, LTD., HOTEL & CONVENTION CENTER PARTNERS, 11, LTD., HOTEL & CONVENTION CENTER PARTNERS III, LTD., HOTEL & CONVENTION CENTER PARTNERS, IV, LTD., HOTEL & CONVENTION CENTER PARTNERS V, LTD., HOTEL & CONVENTION CENTER PARTNERS VI, LTD., HOTEL & CONVENTION CENTER PARTNERS VII, LTD., HOTEL & CONVENTION CENTER PARTNERS. 'al, LTD., HOTEL & CONVENTION CENTER PARTNERS IX, LTD., HOTEL. & CONVENTION CENTER PARTNERS X, LTD., AND HOTEL & CONVENTION CENTER PARTNERS XI, LTD., each a California limited partnership (collectively, RCt: *) and APlAPH PALM SPRINGS, L.P., a Delaware limited partnership (0aft W). A. The City of Palm Springs, a municipal corporation (the "CW) is the current holder of the lessee's interest under that certain Business Lease No. PSL-31 S dated February 23, 1984 between the 18 Individuals named therein as lessor (collectively, the "Ground Lesso I and Shale Energy Corporation of America, a Texas corporation, as lessee, (a memorandum of which lease was recorded on December 30,1985 as Instrument No. 293741 in the Official Public Records of Riverside County, California), together with that certain activation letter dated May 1, 1984, executed by Shale Energy Corporation of America (as approved by the United States Department of the interior, Bureau of Indian Affairs (the "MI pursuant to an approval dated July 23, 1984, which approval was modified by a Modification of Approval of option dated August 20, 19841 and that certain Amendment to Lease of even date herewith (as approved by the BIA pursuant to an approval of even date herewith) (collectively, the *Mik5ter Lea B. A portion of the property covered by the Master Lease is subleased to the Agency pursuant to that certain Sublease (Hotels I -Xi) (the *5SWt.8 -) dated December 3 t, 1984, by and between the predecessor-m-interest of the City and the Agency (a memorandum of which sublease was recorded on December 30, 1985 as Instrument No. 293742 of the Official Public Records of Riverside County, California) as supplemented by the certain Supplement (for Purpose of Conforming Legal Description) to Sublease recorded on December 20, 1993 as Instrument No. 504374 of said Official Public Records, covering the real property described on fxhlbit A attached hereto and incorporated herein by this reference Ithe "Leased Premises'). 1'Km 0 .�xwwww E-2 • t)e1M Glton JM ParbM MW20,2W11M6Nirf M%tWT C C li>a �.ev �ro �« eoox'ea �t ��d t9P usgp tVM � FF N� iqO5 ��•m it '4F�F♦Q 0tbv N1 'luawnusui awes ay1 pup auo alnipsuo3 I1e45ia4189014314m Jo Ile lnq 'Ieuj9po alealldnp a aq of pawaap aq Heys 4314M )0 43ea 'sltedialuno3 ui paln�axa aq Aew luawaaigy S141 'sVi nU:j '£ -luawaai8y s141 of soud'paimm 4314M Suolsslwo i0 sup 01 alelal io 'paun330 4a14M Swle13 io) Agaia4 pasealai s1 Abed i0411au 'ianaMo4 'papEnoid 'iapun3i841 suolle811go iaylinl Ile woij posealaa Agaia4 ale A3ua8y 041 Que HdV/dV 'Moi] pup 13a}1a pup a3io1 ia4lin} ou 10 aq II245 sasealgns-qns 841 '102i84 alep 0y1 Jaye pup woii 1e41 aau8e pup sasealgns-qnS ay la3ue3 pup aleuluual Agaj84 (uleiayl slswalui anlmdsai ila41 )o lualxe a41 o1) AouaSy a41 pue Mol:)'HdV/dV ' 'Z •Slummoidwi ey101 pue ui ISMIui pue 81111 '1lI$IJ S,Moi:) jo III?HdV/dd 01 SUVISSe pue Sla)sueil'SAanUQ3'SwIEI311nb Agai84 PUP Agaia4l palpai3 salelsa p1040seaI a4l pue sasealgn"ns a4l 01 pue ul lswaluI pue 8114'1481J s,Moi] ay110 Ile HdVIdV of sia;sueil pue suOlsse Agaia4 Mop] - I :sMolloj se aaAe Agai84 01ai84 sallied a41 'paSpalMoull3e Agaia4 sl 4314M Jo A3ua13i11ns pue 1diwai 041'uolleiaplsuo3 algenleA pue poo8 ioi `3S0431131-11,'MON •asealgnS a41 aapun ,lueua34ng. a41 aq 111m NdV/dV pue „piolpuplgnS. ayl aq II1M A3uaSV 841'uolleuiuual 4;)ns ia4e pue woi} 1e41 OS sasealgns -qnS a41 aleulwial 01 luawaaiSy SM Aq US* HdV/dV Fwe A3ua8y a4l'Moia 3 'HdY/dV of asealgns a4l of pue us lswalcu pup al111'1481i s1110 Ile pauZISS9 se4 A3ua8y a41 pue'pasea;ap Bulaq aie spuog 841'HdV/dV Aq Aliadad 8400 asq:sind a4l 411m uolpunfuo3 ul '(,TPUU$» a41) Spuo13 uaileSllgO Puewap a1EH algeuen so a3uenssl a41 48noi41 sluawanoidwl 041 )o uoiiDni3suo3 jo SuPueull a4l $u11e1€ll3 -j jo sasodlnd a41 ioj A3uaSy a41411M Olul poialua seM aspalgnS a41 '3 a41 se ulai84 01 pauajai AI8n113aI103 aie sluawanoidwl pue alelsa plo4aseal pips) saslwaid pasea-1 ato uo p01e301(,�. a41 'Alanllaal103) slu8wanoidw1 0410 041 pue,SBuuds vied we4puAM, se UMOUI Ia104 a41 pue saslwaid pase33 a41 ul 01E15a 111104as"I a41 'SSUM ia41O Suowe'ol pue u1 Moil to lsaialul a4l,10 Ile (.�3p„ a41) $ulseywnd Sl HdV/dV '41sM8ia4 Apuaunauo] p ,(elwo111e] 'nluno] aplsianl}l 10 spio3a 311gnd IE1:)Wo a41 ul'AlaAipadsai'yEB£6Z pUe SUER'919M 'L08ER '86L£6Z '68LE6Z '09LE6Z `ULW 79LE6Z '£SLE6Z '14,L£6Z 'SON luawnilsul sp S96 t 'OE 19gwa39p papio3ai aiaM sasealgns-gns 43ns jo epueiowaW) Mai] pue A3ua-ly a41 uaaMiaq 't961 'IE iagwaaaa palpp LwMjqns-qFSSr a41 'Alanll]011031 Sasealgn"nS un!M I 1 aS044 of luensind pasealgns aasilin/ uaN 8ne4 saslwaid pase07 041 'J t I9460 14i3 "id3V 1�1� t��b W4E'HL �j sxwcgiu�d 2�3i' two WAG pwx1 oftdkkWW gadn ohm J M- panne tie 28, 2W711.04 QVF0t AST, EDT 48 7GII -I, SgMerability. If any provision in this Agreement is held by a Court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way. S. !Qnvemiag Law, This Agreement shall be governed by and construed according to the laws of the State of California and shall be deemed to have been executed to Palm Springs, California, for purposes of jurisdiction and venue in any action or proceeding to interpret or enforce its terms or provisions, irrespective of the actual location of its execution. 6. Binding EffW. All of the terms of this Agreement shall be binding upon and inure to the benefit of and be enforceable by each parry hereto and their respective successors. executors, administrators or heirs, and all persons claiming by and through them. 7. Attorneys Fees. In the event that any party hereto brings an action or proceeding for a declaration of the rights of the parties under this Agreement for injunctive relief, for an alleged breach or default of, or any other action arising out of this Agreement or the transactions contemplated hereby, or In the event any party is in default of its obligations pursuant hereto, whether or not suit is filed or prosecuted to final judgment, the non -defaulting party (or, in the event of litigation, prevailing party) shall be entitled to reasonable attorneys' fees, in addition to any court costs Incurred and in addition to any other damages or relief awarded. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. AGENCY: THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By - it ! APIAPH: AP/APH PALM SPRINGS, L.P., a Delaware limited partnership By: AP/APMC-G.P., INC., a Delaware corporation, general partner By: Michael S. Gallegos President Dwh Chen JERParbors Liar 20,2W11*441YIf4 AIMWr 0 luaplsaJd s09811e0.5 WPM :its ax"AWMW umwoo Lel jauved lejaua8 'uoileaodjo3 a-lemPlaa a '']NI ' &DD:)Wdd/dV dg di4$Jaulied popwil ajemcla(I a "d'1 'SJNIbdS W1Vd HdV/dV :HdVIdV 7l'�7 rs :sll ...�. •I } 7� .A8 VINHOJIIV:) 'SONINdS w'1Vd 30 All] 3Hl 30 ADN30V 1N3wd013n303H AlINnwwO:) 3H1 :A3N30V •uagtjm anoge isrll• jeaA pue Aep a4l Jo Se palmaaa aq of luawaaa$V 5141 pasnea ane4 OWN salved a4l'303113HM SS3NLIM NI •papiume }atlas jo sa$ewep 10430 Aue of uollr_ppe ul pue paun3ul sisoa uno3 Aue of uogippe us 'saal sAau,olle algeuoseaj of pallilua aq Ile4s. SulllenaJd'uolle8ilil jo %UaAa a41 ut 'jol Allied Suulnepp-uou a4l'luawSpnj leug of painmoid jo palJ sl ilns lou 40,24184m 'olaja4 iuensind sttolleSticlo -w io ilnelap us s+ lived Aue Juana a4l ul Jo'Agala4 paleldwaluo) suol>aesuell a43 ,o lualuaWSV si41 Jo lino Suisue WIPE J0410 Aue jo'p llne)ap J0 43eajq pa$alle up J0 ')ailal a.�q-'unlui aoi luawaajdV si4i japun salved a4110 $149P a41 Jo uolleJel3ap a jo, duipmoid ao uoiue ue sBuw,q olaja4 /lved Aue le4l luana a4l ul , -wa4l OnoMi pue Aq Butwlel3 suos,ad Ile pue'sJla4 Jo siole);siuiwpe'sjoin3aaa rjossa»ns a,tuadsas J1041 pue olaJ84 Alved 43ea Aq algea»o)ua aq pue jo lljauaq a4l of amu+ pue uodn dusputq aq Ile4s luawaafiV s14310 suuai a41;o IN '133M Su'Paja 9 uotma\a sly io uoile3ol lenoe 841;0 anipadsam 'suolslnosd jo swsal sll aaJolua Jo Wdsalui Ji 3uipaa.7oid jo uo133e We us anuan pue uofl3lpsljnl to sasodind joi 'eluaOls WIN us pain3axa uaag aAe4 01 pawaap aq IIe4s pue eiwojile� 10 MIS a4l,ol snneI a4l o5 :ju,paone panjisuo:) pue .,,q paujano9 aq Ile4s luawaaaBV 514L S TI9�b6 lam owdionad DWM Ohm JER Pa to = RAr29, 2W 11M GM;W An Ur ► 4.4 7611 CROW; HOTEL AND CONVENTION CENTER PARTNERS I, LTD. HOTEL AND CONVENTION CENTER PARTNERS il, LTD. HOTEL AND CONVENTION CENTER PARTNERS III, LTD. HOTEL AND CONVENTION CENTER PARTNERS IV, LTD. HOTEL AND CONVENTION CENTER PARTNERS V, LTD. HOTEL AND CONVENTION CENTER PARTNERS VI, LTD HOTEL AND CONVENTION CENTER PARTNERS VII, LTD. HOTEL AND CONVENTION CENTER PARTNERS Vill, LTD. HOTEL AND CONVENTION CENTER PARTNERS IX, LTD. HOTEL AND CONVENTION CENTER PARTNERS X, LTD. HOTEL AND CONVENTION CENTER PARTNERS XI, LTD. By: CPS, Ltd., a Texas limited partnership, the general partner for each of the eleven California limited partnerships listed above By: Palm Springs Co., a Texas corporation, its general partner By: ~ Charles R. Brinde Vice President STATE OF 1 55. COUNTY OF 1 On J 1998, before me, the undersigned, a Notary Public In and for said State, personally appeared Michael S. Gallegos, personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within instrument as the President of the Corporation that executed the within Instrument and acknowledged to me that such corporation executed the within instrument pursuant to its by- laws or a resolution of its board of directors. WITNESS my hand and official seal. Olen Rtlners MW 29.2=11*4 GMT"ABt; EUr 1A�'J�V i�J�F? 14�6L LOOZ'0L CHI � err uwp u� -3 IlD� F r10. ��/ �_ l c ow let 7Vt (leas) -leas lvpWo pup pue4 Aw SS3Ni.1M 'sjo13w1P10 paeoq sp;o uopn)osai e jo smal-Aq s1l of wensind luawnnsul u1411m ay1 painam uopejodjo3 43ns 1e41 aw 01 paSpalmowpo pue Iuawrulsul ul4ilm a43 pauoaxa le4i uoliaiodjo' a4110 ivaplsaud a31A a41 se mawmisul ul411m NJ pain3m oqm uosrad a41 aq of a3uapina Aao>aejspes )o slseq aqi un aw of pawed jo aw of umoul Alleumad '11,llapulAS •b salie4, pajeadde Alleumad 'ams ples 1ol pup ul 3llgnd AMON a 'pauSlsiapun ay1 'aw aaolaq '8661, V Jg0130 u0 ailgnd Aie1oN t Sv11Vo JO AINnOD SYX3130 RV1S (leas) 'leas 1e1 WO pue pue4 Aw SS3NlIM •luawnjlsul u!41!m 841 poin3m VIN210311V7'SONIIIdS W1Vd 30 Ail] 3H130 ADN30V iN3Wd013A3a321 AlINnWVYo:) 43ns Ie41 aw 01 Pa$palmou)Pr Pup VINIIOAI1VJ 'SJNI21dS VOW 30 AlO 3HI JO ADN3'.3V 1N3Wd013mml ALINnWWOJ a4190 aoPml0 aAlin3ax3 a41 se luawrulsui u1411m 941 pain3m 04m uosW 041 aq of a3uapina AJopejslies jo s{sr'q a41 uo aw of panoid jo aw of umotq Alleucmad pamadde Alleuosiad ImIS pies jo} put, ur :)llgnd UBION a 'pau8lsrapun a41 'aw ajolaq '966I uO 311gnd AieION V MS ir7 ( 30 ALNno:) .SS( VINSO3I1V:> 30 UViS (leas) Da& Chm JER PAbo te�+r 29, ?Atr714:Ot i��{bf JI�1; �1' 497611 CROW: HOTEL AND CONVENTION CENTER PARTNERS I, LTD. HOTEL AND CONVENTION CENTER PARTNERS II, LTD. HOTEL AND CONVENTION CENTER PARTNERS 111, LTD. HOTEL AND CONVENTION CENTER PARTNERS IV, LTD. HOTEL AND CONVENTION CENTER PARTNERS V, LTD HOTEL AND CONVENTION CENTER PARTNERS VI, LTD. HOTEL AND CONVENTION CENTER PARTNERS VII, LTD. HOTEL AND CONVENTION CENTER PARTNERS V111, LTD. HOTEL AND CONVENTION CENTER PARTNERS IX, LTD. HOTEL AND CONVENTION CENTER PARTNERS X, LTD. HOTEL AND CONVENTION CENTER PARTNERS X1, LTD. By: CPS, Ltd., a Texas limited partnership, the general partner for each of the eleven California limited partnerships listed above By: Palm Springs Co., a Texas corporation, its general partner By: Name - Title: STATE OF IE ItiXf[C 1 ) ss. COUNTY o F1 a n —a- On WITNESS my hand and official seal. (Seal Maui. Ilk - -f f - ;% . DEMSE L MIUER,TIIPA Notary Public Ig W Mft"TAn r F 1" rl MrWfW � ��COSIdId01SlE911 DWAn Chen JERPWt om M arM 2W 111114 f UPM ABT, Eff �oot� 3r3w�►�q J4wY 103 jxv foiiw to L� LM'LLZ A;m do" WI?dd tunuamdeE1 al JOASS J9LOO IMAJGQUOO A UeIPJenp WPM Led-ui4euwRv Iwouep O Pwjwn O — m4md :(ejsnLL jeoW amodJoo IanplM)u1 ■ ■ ■ ■ ■ no■ :awaN S,JQU5M w•MINOOI`wY uw/a +t• AII�+�NM+ NMpO L jl7 CIS 1U l N!ydf3'lJnml 7HJIl1 Oulp"saJdaU 91 J■ 51S JOLPO Jolummoo Jo umme sopful loeadL1.AeWm Iwouep p pauuI l 17 — Jsutmd :(S)Glu Jwso alexxix* FnPAPu1 ■ ■ ■ ■ ■ e :eUMN SAUDIS (J:)jeua,S 1Iq powlsl0 (sel)Amoudvo :emgd POUMN Ug41. MW (S)Ieu81S :sab■d to JequLnN .e1ep luownooa :woLunaoo Jo adKL Ja am ivawnooa paWjuuV io uopol,osea TNUMV J NR" aL am AIR Ja JuruxAA7 pfa p�aruu ri ll u d J J ww��aa w► Ud equQa, J ►rd of qprW ,0 d 4 X AM 14 PWM" JU SF'"0 NA � wu �I01�131AIOry A �I■0 'left PgQWo PLM P4Js4 Aw MNLIM -luau "WA eta peu"M ;! O .-IM11+i _„vie 'pews OuoSJed s4143gM 101184eq uodn AMue"Jo XiMUDWed 8411uauu M4 eq uo (*Wn1eu8MWWMWT14 Aq 1E4i pue Yjj*i1pvdoo POZVOLIMUNWOMM ul eWeS 041 PeuLOM 4MOMIS4 4" OW of PGBP@ g pus JuewnOLJ1 u1ypM"of pegpasgn9mMq (*WBU 0604M fuuQAQ--VQ— OW of uMotq ApWmod �] A¢)MMod M eq al Ln3.�oA�a.�r ,JaQu9l 'W SUM04 1 pWeedds f4pu0aJod Awim'a uwwowfa.71ailolop�a►MW18gWd + 'eWaJoleq ` ,AWN UQ aEt4nd JVIOH 'PuMpax 11 GUIVU 9661 Ir aptsaenl•a loAu^ut) e1u,Jo�Slpa toa1e1S MaROU31MONMOV asoetvn&,I*1V VINUO.411V0 LI9JGb6 taa� te+twaraf�Lnot' auaLgled�l3P u�y Le+�a owftm a! DO* tm JER P*bwm Met 29, 2DO71119 f MT-04 AtM EDT 4 s7G 1 I STATE OF CALIFORNIA 1 } SS. COUNTY OF } On , 1998, before me, the undersigned, a Notary Public in and for said State, personally appeared personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within instrument as the Executive Director of the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA and acknowledged to me that such COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA executed the within instrument. WITNESS my hand and official seal. (Seal) Notary Public STATE OF CALIFORNIA } } ss. COUNTY OF ? On F 1998, before me, the undersigned, a Notary Public in and for said State, personally appeared personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within instrument as the of the Corporation that executed the within instrument and acknowledged to me that such corporation executed the within instrument pursuant to its by-laws or a resolution of its board of directors. WITNESS my hand and official seal. (Seal) Notary Public twi 4i P%4hawi. r4JrE-6� M n N NNI DVA Chm JEitt Ubar. MW 20, 2Q0711:04 OW-04AK EUT 1A� �1►14'3YiE! fOtF � �'SZ+�W tw4ffidur UM %wo ,►a �[ u.r�a, 43 µghl •Nunn] pigs Jo Jap:o38b A;uno) a43 }o 0:40 a41 ui 'sdew io 4S pue SS sawed 'Lbi looa w papio3w dew jad se 'eiwoj!le);o ale1S'apPanr�l .10 yuno) 'sguudS wlej )o A30 a43 of UWE 'ON oej t;o amsnpui 3 4lnoJ418 pue 4 s101 PULS17 MV318f1S-ans 30 N0IiVNIM31 ONV 1N3WNOISSV Oi V IISIHX3 :tee UNOWrted Darin Chinn JER Pohn Mar 2A 2W 11*41 UT44 AST, EDT r 4g7611 UNITED STATES DEPARTNZNT OF THE MMOR BUREAU OF INDIAN AFFAIRS PALM SPRINGS FIELD OFFICE APPROVAL OF ASSIGNMENT AND TERMINATION OF SUB -SUBLEASES UNDER MASTER LEASE PSL-315 The within Assignment and Ten nination of Sub -subleases among THE COMXJNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA. HOTEL & CONVENTION CENTER PARTNERS I, LTD., HOTEL & CONVENTION CENTER PARTNERS, II, LTD., HOTEL & CONVENTION CENTER PARTNERS. M, LTD., HOTEL & CONVENTION CENTER PARTNERS, IV, LTD., HOTEL & CONVENTION CENTER PARTNERS V. LTD., HOTEL & CONVENTION CENTER PARTNERS VI, LTD., HOTEL & CONVENTION CENTER PARTNERS VU, LTD., HOTEL & CONVENTION CENTER PARTNERS, VIM LTD.. HOTEL & CONVENTION CENTER PARTNERS M LTD., HOTEL & CONVENTION CENTER PARTNERS X, LTD., AND HOTEL & CONVENTION CENTER PARTNERS M, LTD., each a Callfarnia limited pa rtnersbip and AP/APH PALM SPRINGS L.P., a Delaware Limited partnership, mmisftg of 5 pages and attached E1hIblt A together with acknowledgment pages, is hereby approved. Dated: OCT 2 9 NMI' , Director Palm Springs Field Office Bureau of Indian Affairs Turn am to the ausli=y doWgeted by 7 0 tM 8, Semnarys ordw Hoe. 3150 sod SM . and 10 SIAM 8WI@tin 13. m amandod. and Saa+Wo Am t3W Redeftathm Ordet No. 1(43 FA. 30131). oardldm" Dadn am .ER Parbn khr29. 2MT 11.04 0W-04W E1' jA� a8ti' �4D�LL i.OD�'8Z API 1 :44Si9ltll-r gyp` u�ip E9�0 su jOugissV jo isajalut-ui-iossa3apwd u uitugpjs,D 'sBuudS uilcd3o 41 1 alp jo 4au28d )uawdojanapa-1 Almnui€uoJ ails puc 'paolpuslgns sc'tiiiJ ails}a lsajatut-uj -.Iossaaapaid I uOgwuc joo enuodlluo 8 3ul •sBuudS wjud VDN3S umilaq puv Aq 'i..a` 5jgnS„ NO t,861 ` I £ jagwaoa(l plop (IX-1 sla;oH) assalgnS umw* vulp of )uensind jousissd aql of pasualgns si asea-1 ja)suN ails Xq pajanoa 4iadoid agl 3o umpod b g •�wa jalsel'1I„ ails `�(lanttaallo3) 9661 `6Z ngolap jo se PABp lenoidde uu of luensmd ylg agl Aq panoiddu pus; uiwopluZ) `4unoa apisjani-d3o spiO3aZl ailgnd Is;wUjp aql ui t lgL8b ON luausitt)sul se 8661 '6 joquianolq uo papjo= sent g3tgAgo umpumousaw u'dttJ aill punt `iosso I punanj joj joluj4sluiuip8 SS `[« „ ay) } joualul 2gl3o iC MwaaS salulS paliun agy uaantlag 8661 `8Z jago)aO,Io se palup asoo l al luatupuMV uin= legl PUB [t,861 `O% MOW pa)ep uoildO3o lunoiddV jo uoi wIppoW v Aq pa!ppow sent lunoidde g3tgm `t'86I 'CZ Xinf P24sp lenojdde uc of luensind {,.VFH„ aq)) sii>:JJd ueIpul JO neaing `jt1!1a)ul ai;) 3o luaugmdaa salutS papuf] agl dq panojdde so) :tauawvjo uoilsuochOD Maua alugS hI PAn3axa `b86I 'I ON Palep -12Ual uo98,sgas uiGtm'3 lugl gilm aalpsol 4181WOJ1leJ `,4unoD apisjaniU3o spiwa-d 3algnd lutes o ails ul It"L£6Z 'oN luaujlnI se 586I 'O£ jaguia32a uo papjooaj sent Mal golgm JO iuispuejoivaw 1 'aassal so 'uollwodto3 sexaZ u goilawv J0 uoilsijodjoz) As.) ma Puv [. jossaq pirnoj-rJ„ aql `SloApmgoa f jossal so uiaiaill paujuu slsnpimpui 81 aql uaamlaq t'861 `8Z A.ienig2j PatuP S I £-'ISd -OR aseaq ssauisng u)eljaa liigljapun iswolul s,aassai agl;o japlog luomw ail) st f41_-) aqL d {.. ,. ails) uollwodioa Iedi3nmw u `S M[NdS yg-lVd AO ALI0 &U PUU 1=.ate„? ,tuedtuoo Allltggsl palrwil amnniila❑ a `J1'I S014US NI'Idd HH `(, ��-„1 d!gwoumd pal!iuIl ajwaviaa s3 `•d" I `Sama W''Pdd H,[V/dtl Buowe puu Aq'SOOZ `Alns,lo Avp -�rT aql ;o se 2pi3Ui si ,juawaa b'„ sib) SSmans aNm uo ao d,N-gwROISSd spl.L amriE ns aunoxo ao mammssv i sn s.u3cmoaau wa c :� �, -ram 67 -4 7 --, L� '4.� losunoD iuiauoo :uud ZOI ZZ uluIS-"A `uu2'13W OOS a)!nS'anu(j ojogsuaaj[J 90t•8 uopwodjoZ) 14ipq!dsoH Puv* H 013 DTI SSuudS wlud HH 01 SJ NHv IVIS Xd.L 'IIVN .ice° 4, paiediuoa uaaq sou lasuno7 lejauaa .iu v ZOI Z% siiulS"A 'Uva'13W OOS allnS'ani.ia ojogsuaajd SOt'8 uoilujodmZ) f4!je)idsol3 Ptmlqg!H ola J'I'1 sBuudS itT HH .--...........o fie" � � _ 01 'IIvw `aga[2lODUH KaHM aNV r 5.1 S p- 5 aNH A a a8-LsHn a2I oNlaw-,m papiwgi luaiuMoT Ia XcIOD 1 �"3'IBV MIM mw %WAJ(. 1910,talilWOO P.aPawVPUln caftaft E"Chen ate tam 2s. 2W 11-W QYiW A9C EM subtenant, a memorandum of which was recorded on December 30, 1985 as Instrument No. 293742 of the Official Public Records of Riverside County, California, as supplemented by the certain Supplement IFor Purpose of Conforming Legal Description) to Sublease recorded on December 20, 1993 as Instrument No, 504374 of said Official Public Records, as amended by that certain Amendment to Sublease, a memorandum of which was recorded on November 5, 1998 as Instrument No_ 487613 of said Official Records and approved by the BIA pursuant to an approval dated as of October 29, 1998, as assigned to Assignor by Assignment to Sublease dated as of November 5, 1998 recorded November 9, 1999 as Instrument No. 487612 of said Official Records and approved by the BIA pursuant to an approval dated as of October 29, 1998, covering the real property described on Exhibit attached hereto and incorporated herein by this reference (the "Leased Premises"). C Assignee is purchasing all of the interest of Assignor in and to, among other things, the leasehold estate in the Leased Premises and the hotel known as "Wyndham Palm Springs" and the other improvements (collectively, the "Improvements ') located on the Leased Premises D. Assignee is transferring all of its interest in the personal property included within the Improvements to UMC TRS OP LLC, a Delaware limited liability company] ("Tenanf'), an affiliate of Assignee and will enter into a sublease of the Leased Premises and all of the real property included within the improvements to Tenant (the 'Tenant Sublease"). NOW, THEREFORE, for good and valuable considerauon, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 1. Assignment b As i or. Assignor hereby assigns and transfers to Assignee all of Assignor's right, title and interest in and to the Sublease and the leasehold estate created thereby and hereby quitclaims, conveys, transfers and amigns to Assignee all of the Assignor's right, title and interest in and to the improvements. 2. Acceptance by Assignee. Assignee hereby accepts the foregoing assignment and transfer of the Sublease and promises and agrees to pay all rent and to faithfully assume and perform all covenants, stipulations, agreements and obligations under the Sublease accruing on and after the date hereof or o&-r%vise attributable to the period commencing on said date and continuing thereafter. Assignee hereby acknowledges that 1 a) this Agreement is subject and subordinate to all the terms, covenants and conditions in the Master Lease and the Sublease; and (b I except for the transfers and subleases to the Tenant as set forth in Recital D above, Assignee shall not have any right to further assign its interest under the Sublease or sub- lease any property subject thereto except in accordance with the terms and provisions of the Sublease and the Master Lease. 3. Consent by the City. The City hereby consents to the assignment of Assignor's interest in the Sublease and the leasehold estate created thereby to Assignee and further consents to Assignee effecting the transfers and entering into the Tenant Sublease as set forth in Recital D above, conditioned on the approval of the ONAMn" o" chon t-LAIR:'iML) JERPetwa Mar26, 2W711ski CilslMAOr, EDT .t,a� YBV wi.lyo as « woz:'ex �1 i i[19Si91tl7-1 angaadsai nagl pie olaaaq ,tl.ted gaea �Cq algeaalojua aq puu jO 1U;)uaq ag1 of amul pur uodn Sutpulq ag hugs luauiaaasy snpjo suual agl Jo lld -1oa�g8'mp S of -uounaaxa sgt Jo uogeaol Tamar aql Jo antloadsaaat `saolsenoid ao suual SIi aaIo3ua so laidtalut of Ouapaaaoid ao uotlag Aug ui anuaA pule uogotpsunf jo sosodmd aoJ 'rtuaaJtlgo `sSuuds oiled ul painaaxa uaaq ansq oI paluaaP aq 111gs Poe ettuo31lgJ Jo WRIS MOJO snnel aq) al Sulpaoaos potwsuoo pue Aq pawanoS aq [lugs IUQW22AV stg,l, 'Muliu3an 13 -6 -Arm ,tug ut palrpllenut ao poindwi Sulaq Inoglux awol 11nJ ui anutluao ssolaglaanau 1184s suoismoad 8uiutrwaa a p ajgvaaaojuaun ao'pion'prlenui aq oI uotlalpsimf lualadtuoo Jo lmoa r,Cq plaq st Iuautaa]sd slgl ut uoislnoid,(ugJl ti!q—u n g •Iuaum4sul oams aql pug auo a)nlilsuao li8gs aaglaSal gaiter Jo lib Inq jvui2uo aleatidnp a aq of poutaap aq Ilrgs gajgmjo gaga `slasdaalunoa ut palnoaxa aq ,Sew luawaaAv SnLL ' olunoJ I Joaaag alup aql awjg pug woaJ oseaZ aalsuN aga ao asealgnS ayl j o sluruanoo pug 'suotltpuoo'stuaal agl ja,Sue aapun algrtl ulmLw lou llegs aou8lssV aegl pule ascaZ aalsM atp pug asualgnS agl tapun A4111gell 11e wwJ aoustssy sanallaa pue sassalaa sa,;sunu pue luounAtsss aqt JUEP saaasg pus saSp2p++0uj3s aatrstssd tlit1817 9 •0=-Yl aalsuw aql pug asgalgnS ago Jo suolstnoad pug suual agl gjim aauuplooae ui ld=xa olaiagl iaafgns ,(Iaadoad ,Cur osgalgns ao asealgnS lueua, L agl ut Isaaalul sat usisse aagun; 01 143u AM ansq lou 11e11s Iusua L 21P;ggl 22JOe f4t3 pug aau8tssd aqy •aapunaaaq y pug g sgdr wed of juensmd atansse of paaasr seq oodissy leg[ maZ aalsm puu asealgnS agl aapun uuop2d of suoge8ilgo oum mp atunsse of paambaa aq 1pm luuuojL `asralgnS Iusual, agl of lusnsmd `leg[ saaase aau8is$rV 'asnalgnS;uruaZ -aapunaaagl .,aassaZ„ otpjo and aql uo asto l aa]suW atp Jo suotlipuoo ao suotstnoad `si ual juautaat v `slueuanoo agl3o Aug jo goeaaq ao aanligJ oql ut llnsw pinom Imp jos Aug uuolaad of 1183 ao Isr dug uuo od ao op ao uotloli kus aaiel 04 lou sluguanoo a2gUnj pug 'sosituaad pmo-1 oqg of olgwlldde lu%xa agl of osg77 aaway j 21p;o suollipuoa pug suoisinoad `sutaal 'sluawaaa8g 'sluruanoo otpjo llu Aq punoq pug of wfgns aq 01 saaa8r pug spuelsaapun (Illy It asuoj aalsM atp Jo,Cdoa polnoaxa Allty u panoaddg Pug peal `panlaoaa set{ It lgtp stugta M pue slueuanoa aatStssy aseaZ aalsgy�l tapun aaueuuol lad t .aa#eaaalp Stnnutluoa pug alep plea uo sulouaruluoo potaad atp of aigmnquuv os1AUaglo so 3oataq alep alp jags ao uo Suuxn000 asgalgnS aq; aapun suotasstlgo pug sluawaaa8e suonujndps'sjtmuoAo* T1r uuoJaad pur arunsse +(lln3tpm.1 of Pun slum ilia ,Sed of astutoad sit 3o aaustssy anatlaa lou llegs aolwadp agl gltnt asealgnS luruay aqI olui ,Bahia purr aa3sueu luy7 aa18e aauSlssb pug f4g:) aU asea'l aalsryg aql Jo tb alarlad Aq paatnbaa se big agl Aq luatuu8tsse .wuM► az a" *N%Nd tw I UMUM I3oM6i Chas MW A 2DOT 11.0 Ok" AST, EDT successors, executors, administrators or heirs, and all persons claiming by and through them. t 1 Attorneys' Fees. In the event that any party hereto brings an action or proceeding for a declaration of the rights of the parties under this Agreement for injunctive relief, for an alleged breach or default of, or any other action arising out of this Agreement or the transactions contemplated hereby, or in the event any party is in default of its obligations pursuant hereto, whether or not suit is filed or prosecuted to final Judgment, the non -defaulting party (or, in the event of litigation, prevailing party) shall be entitled to reasonable attorneys' fees, in addition to any court costs incurred and in addition to any other damages or relief awarded. 12. Further Assurances. Assignor shall execute and promptly deliver to Assignee any additional instrument or other document which Assignee reasonably requests to evidence or better effect the assignment contained herein. 13. Indemnifiggon.. Assignor shall hold harmless, indemnify and defend Assignee, its successors and assigns, from and against any claim or liability for an obligation under the Sublease or the Master Lease arising prior to the date hereof. Assignee shall hold harmless, mdemntfy and defend Assignor, its successors and assigns, from and against any claim or liability for an obligation under the Sublease or the Master Lease arising on or after the date hereof. QXdWWzW DOMtyM !-LAIB]itioi I JERONOM Mar2k 201J111 tall ilfvf W AK. ter U upp um 1 i0ufx Y 1 i [928ed 8utmolloi uo panuquoa sam MI&S] aggnd AmoK so� M N 1 Potl 69 WZ09Q0lQ 'oN / WDA IMN to e3aiS 'ollgnd AIM MNR�.jt 1M -jams le1ojup pue pusq AW ssaullm luaumgsui aql pminooxo `paaaia (s)uosrad aqg t{atq&}o;jsgaq uodn Xinua 2ql ro (s)uouid zip tuawn4sus aql uo (s)amleu'sis jIoIp/tagjsc(l[aadsa pazurglne gmgl�iaq/spj at awes aql paluaaxo xoglpgspq Teg1 ow al pospolmomlae pus lu2w."qui u141im oql of poglnsgns ais/st (s)•aumu asogn% (s)uosnd aql aq of oou p Ao tiopuj sills jo s}seq aqi uo ow of ponosd io aw of uowdjeusiad pa¢dd(Iluosiad .a`aw aso;aqtlgnd,loN7. 30 9 u0 jO HIVILS �ellll :-GWeN :AS jouied Iejoue8 sp 'uolleiodioo eaeMBIa❑ a ` ONI 'dJ O1NdVldV :4I3 dlgsieuped polpll ejoMISIea d" 1'SOMINdS W1Vd HdVIdV UONOISSV •uoupm otioge xsrtg jeof, pue 412p agl)o se paln32Ya aq of luouraajgd sig3 pasnsa ansq olaraq saitxd zip 'gionaM SSaNJ IM 141 .w� ls,riKrxYtti �:i� woz mr omftrft OW&OM JERPWbWe ' li V20, A'VW WOSeMPMAKEW [Signatures Continued from Preceding Page] ASSIGNEE HH PALM SPRINGS LLC, a Delaware limited liability company By: Name: Tra M ax n Title: V e es en STATE OF r 4 ) ss. COUNTY OF omed ) On J'u l u In , _7 DO s , before me, 66ro , Crt .t_, Notary Public, personally appeared . adi u Ni n , personally known to me or proved to me on the basis of satisfactory ividence to be the person(s) whose name(s) Ware subscribed to the within instrument and aclmowlcdgcd to me that he/she/they executed the awne in his/ber/their authorded capacity(ies), and that by hisiberltheir signatures) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. . . Witness my hand and official seal. (Seal) Notary Public CO ��' Rowe my Goti-�misslon [Signetures Contorted on. Follov, ing Page] lN{y EXPI ea iorotm owfiftrdd .ER PAt m Mer2% 2=11M t W414 Atli:; EDT 1rm',jSvmm w4 LOW'ezjc" ww4wkw twoum PPOPOM I600511 bd0:? A LWW BMSNM WWWM • XWW AMON 919619W 7M M T9MSQ NNAl rdVM e, (leas) i 7095EWY-1-1 s ligl1 j, ntoN . •leas 1e}owo pas puloq &U ssauitm -luourrulsm otp �azmvugm lnoaxo `palasg)uosiad oql ua�nn ojlsyaq uodn aqua a�11 �o` )uosiad agl luauanrisur agl uo _v#tj=g/stg Aq tgqi pug 'Ogi)f4!ovdgo porttoginu - moq*z?q � cures o l paainooxalagvoWpq iggl oui of pa�Polnnowl" pus luauzruisar urgitn% ail of pogposgns am/s u»eu asogmMuoSiad g �d.ao aw of ummq lluaomd n paasaddo Allsuosiod 17n 3o A.LNnoo ss i . r --:5, BRIJ :aweN :413 /� clav�dsaltn9t� 'SJNIMS VflVd do ,kll3 3Hl :A I IO 3H1 [aged ouipxmq woo panuiluoo saimvidiS) .um IL81f poi m M5 l zm •ea "0 wNpu lw 1 UMMUM cmdderad OPM cell 1 JERParbm OAN ze, 2W IIM 4 IT-W WT, EDT KXHiB[T A TO ASSIGNMENT OF SUBLEASE Lots 1, D and E inclusive of Amended Tract No. 20485, in the City of Palm Springs, County of Riverside, State of California, as per map recorded in Book 200, Pages 47 and 48 of Maps, in the Office of the County Recorder of said County. a mndstd 0" awn 1-L/J83560_ 1 MW29,2W MQV; 1A8tEDT 1A3 a.9Y i0di"4� tIG R� ,Coaz'SZ �Y'1 >w um "No '18L61'£ I Kiln( paivp 'i£Im _a _.4 £f) I 'ON iapio uoyesalapa?] oquawelaes pue t IVHI S pue'i IVQ 0M'S 1,40 60Z iq pajrSa{ap'14uogane age W auensana sated ueipu;;o neaxng dauasy ssupdg ulp"I 4uapua tq;iadns -�� panouide dgaiay st 'd }ta xa uliM 'saSed ,, ;o Supstsuo) u014Ei0dioz) ledtoiunw a `soNr cis wgvci do xin aH.L Fue (aausrssV) ,Aueduioa f4tli ml palpin.I aaeMlao a 'J'IZ SgNIudS ] gVcl HH (jou2!ssd)'dnTs�au�zed pa�turtl a�enlelaQ e d"I 'S!)NMdS MVc:l HdV /dN uaampq asealanS jo 4uauTatssy unpim a'IJL sic-gscl awgianS ao j-Nm NoISSv ti0'lvAoucicTv ,LJNaDV SDNI?idS b1i'Idd S?IIV33d NVIQNI 30 f1Va2Iflfl ZIOIUfl.LIVI HH.L 30 .LNaNi.L2IvdaQ 11fNfJ180 SRsVss aasiNn jn3,.wvW��4.i0'0" Qw4wd,ow umwaa A56�0 WACHOVIA BANK, NATIONAL ASSOCIATION Commercial Real Estate Services, 8739 Research Drive URP 4, NC 1075 Charlotte, North Carolina 28262 February 13, 2008 The City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92263 Re: Estoppel Certificate dated as of July 17, 2007 (the "Certificate") issued with respect to the sublease affecting 888 East Tahquitz Canyon Way, Palm Springs, CA 92262. Ladies and Gentlemen: Please be advised that Mezzanine D Lender, Mezzanine E Lender, Mezzanine F Lender, Mezzanine G Lender and Mezzanine H Lender (each as defined in the Certificate) have each transferred their respective interests in the Mezzanine Loans (as defined in the Certificate) as set forth below: 1. Mezzanine D Lender transferred its interest to GSRE III, Ltd., a Cayman Island exempted company; 2, Mezzanine E Lender transferred its interest to Blackjack Mezz 5 PRISA III LLC, a Delaware limited liability company, having an address at c/o Prudential Investment Management, Inc., 8 Campus Drive, Parsippany, New Jersey 07054 3. Mezzanine F Lender transferred its interest to PIM Ashford Subsidiary II, LLC, a Delaware limited liability company, having an address at 14185 Dallas Parkway, Suite 1100, Dallas, Texas 75254; 4_ Mezzanine G Lender transferred its interest to HIGHLAND SPV A LLC, a Delaware limited liability company, HIGHLAND SPV B LLC, a Delaware limited liability company and HIGHLAND SPV C LLC, a Delaware limited liability company; and 5_ Mezzanine H Lender transferred its interest to Goldman Sachs Mortgage Company, a New York limited partnership. USActive 11976842.1 WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association By: v Name: Title: FM V• ScoW BARCLAYS CAPITAL REAL ESTATE FINANCE INC., a Delaware corporation I: Notice (Metz 5) Very truly yours, EXISTING LENDER: STARWOOD PROPERTY MORTGAGE, L.L.C., a Delav wb� limited liability company By: Titic:Au}��izcd Signatory ACQUIRING LENDER: STARWOOD PROPERTY MORTGAGE SUB-10- A, L.L.V,a))elaware limited liability company By: Nam . Andre ssen Title: Auth(Ji jkd Signatory Highland Hospitality Mezz 2 Notice of Loan Transfer Schedule A The City of Palm Springs 3200 East Tahquitz-McCallum Way Palm Springs, California 92263 Highland Hospitality Mezz 2 Notice of Loan Transfer CHI 6991228v.1 . Schedule C Acquiring Lenders Notice Addresses 1 Starwood Property Mortgage Sub- 10-A, Starwood Property Mortgage Sub -I O-A, L.L.C. L.L.C., a Delaware limited liability c/o Starwood Capital Group Global, L.P. 591 West Putnam Avenue company Greenwich, Connecticut 06830 Attention: Andrew J. Sossen Fax: (203) 422-8192 With a copy to: Starwood Property Mortgage Sub- 10-A, L.L.C. c/o Starwood Capital Group Global, L.P. 591 W. Putnam Avenue Greenwich, Connecticut 06830 Attention: Mary Anne Carlin Fax: (203) 485-5105 Starwood Property Mortgage Sub- 10-A, L.L.C. c/o Starwood Capital Group Global, L.P. 100 Pine Street, Suite 3000 San Francisco, CA 94111 Attention: Steven A. Rivers, Esq. Telecopy: (415) 633-4187 Dechert LLP One Maritime Plaza, Suite 2300 San Francisco, California 94111 Attn: David M. Linder Fax No.: (415) 262-4555 Highland Hospitality Mezz 2 Notice of Loan Transfer CHI 6991229v.1 c CONTRACTUAL SERVICES AGREEMENT INTERNATIONAL HOTEL AND CONVENTION CENTER MARKETING AND RESERVATION PROGRAM THIS CONTRACTUAL SERVICES AGREEMENT (hereinafter "Agreement") is made and entered into, to be effective this day of June, 2008, by and between the CITY OF PALM SPRINGS, a California Charter City, (hereinafter referred to as "City") and HH PALM SPRINGS LLC, a Delaware Limited Liability Company, (together with its successors and assigns, hereinafter referred to as "Contractor"). City and Contractor are sometimes hereinafter individually referred to as "Party" and are hereinafter collectively referred to as the "Parties." RECITALS A. City has determined that there is a need for access to and participation in an international hotel and convention center marketing reservation program (the "Program") for the hotel property owned by the Contractor ("Contractor's Property") and the City's Convention Center (collectively, the "Property"). B. The Contractor's Property is subject to a Sublease (Hotels I -XI) between the City (successor in interest to SENCA Palm Springs, Inc., a California corporation), as sublandlord, and Contractor (successor in interest to AP:'APH Palm Springs, L.P., a Delaware limited partnership; successor in interest to The Community Redevelopment Agency of the City of Palm Springs, California), as subtenant, dated December 31, 1984 (as amended and supplemented, the "Land Lease"). C. Contractor proposes to provide such a Program for the Property pursuant to the terms of this Agreement. D. Contractor is qualified by virtue of its experience, training, education, reputation, and expertise to acquire and provide these services and has agreed to provide such services as provided herein. E. City desires to retain Contractor to provide such professional services. NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants, and conditions contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: AGREEMENT 1. SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contractor agrees to perform the services set forth in the Scope of Services described in Exhibit "A," which is attached hereto and is incorporated herein by reference (hereinafter referred to as the "Services"). As a material inducement to the City entering into this Agreement, Contractor represents and warrants that Contractor is an experienced owner of 562291 ` 1 ORIGINAL BID AND/OR AGREEMMEW first class hotels and will provide or may contract for the provision of a Program of the highest quality and standards of operation in performing the services required herein. For purposes of this Agreement "highest quality and standards of operation" shall mean those standards of practice recognized as high quality among well -qualified and experienced professionals performing similar work under similar circumstances. 1.2 Contract Documents. The Agreement between the Parties shall consist of this Agreement and all Exhibits thereto. 1.3 Compliance with Law. Contractor warrants that all Services rendered hereunder shall be performed in accordance with all applicable federal, state, and local laws, statutes, and ordinances and all lawful orders, rules, and regulations promulgated thereunder. 1.4 Licenses, Permits, Fees, and Assessments. Contractor represents and warrants to City that it has or will obtain all licenses, permits, qualifications, and approvals of whatever nature that are legally required to perform the Services required by this Agreement. Contractor represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, qualification, or approval that is legally required for Contractor to perform the Services under this Agreement. 1.5 Familiarity with Services. By executing this Agreement, Contractor warrants that Contractor (a) has thoroughly investigated and considered the Scope of Services to be performed, (b) has carefully considered how the Services should be performed, and (c) fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement. 1.6 Further Responsibilities of Parties. Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. 2. COMPENSATION 2.1 Maximum Contract Amount. For the Services rendered pursuant to this Agreement, Contractor shall be compensated by City in accordance with the Schedule of Compensation, which is attached hereto as Exhibit "B" and is incorporated herein by reference, but not exceeding the Maximum Contract Amount of Three Million Four Hundred Twenty Five Thousand Dollars, ($3,425,000) (hereinafter referred to as the "Maximum Contract Amount"). The method of compensation shall be as set forth in Exhibit "D." The Maximum Contract Amount of City's payment obligation under this section is the amount specified herein. 2.2. Method of Payment. Method of payment is specified in the Schedule of Compensation (Exhibit "B"). 2.3 Changes in Scope. Any change or changes in the Scope of Services requires the consent of both of the Parties in a written amendment to this Agreement, setting forth with particularity all terms of such amendment, including, but not limited to, any additional compensation. 3. SCHEDULE OF PERFORMANCE 3.1 Diligent Performance. Contractor shall prosecute diligently the Services provided in this Agreement according to the agreed Schedule of Performance (Exhibit "C"). 3.2 Schedule of Performance. Contractor shall commence the Services pursuant to this Agreement as established in the Schedule of Performance, which is attached hereto as Exhibit "C" and is incorporated herein by reference. When requested, extensions to the times specified in the Schedule of Performance may be approved in writing by the City; however, the City shall not be obligated to grant any extensions. 3.3 Term. Unless earlier terminated as provided elsewhere in this Agreement, this Agreement shall commence upon the effective date of this Agreement and continue in full force and effect for the term of twenty-five (25) years. 4. COORDINATION OF WORK 4.1 Representative of Contractor. The following principal of Contractor is hereby designated as being the principal and representative of Contractor authorized to act in its behalf with respect to the Services to be performed under this Agreement and make all decisions in connection therewith: D. Rick Adams, Senior Vice President, Asset Management. The foregoing principal or his successor shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services performed hereunder. The Contractor shall notify the City in writing when the principal changes. 4.2 Contract Officer. The Contract Officer shall be such person as may be designated by the City Manager of City, and is subject to change by the City Manager. It shall be the Contractor's responsibility to ensure that the Contract Officer is kept fully informed of the progress of the performance of the Services, and the Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 4.3 Subcontracting _ or Assignments. The experience, knowledge, capability, expertise, and reputation of Contractor, was a substantial inducement for City to enter into this Agreement. Therefore, Contractor shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, voluntarily or by operation of law, without the prior written consent of City; provided, however, that Contractor may assign this Agreement without the consent of the City to any current or future owner, operating lessee, or mortgage or mezzanine lender of the Contractor's Property on the same terms and under the same conditions as permitted under the Land Lease. Contractor shall not contract with any other entity to perform the Services required without prior written consent of City provided; however, that Contractor may contract with hotel management companies, brands or franchisors. If Contractor subcontracts any part of this Agreement by City, Contractor shall be responsible to City for the 562291 1 3 acts and omissions of its subcontractor(s) in the same manner as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. City will deal directly with and will make all payments to Contractor. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written consent of City; provided, however, that Contractor may transfer, assign, convey, hypothecate, or encumber this Agreement without the consent of the City to any future owner, operating lessee, or mortgage or mezzanine lender of the Contractor's Property on the same terms and under the same conditions as permitted under the Land Lease. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (251-b) of the present ownership and"or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release Contractor or any surety of Contractor from any liability hereunder without the express written consent of City, but any transfer permitted without City consent shall automatically release the transferor from any liabilities accruing after the date of transfer to a transferee so long as Contractor's obligations hereunder have been fully assigned to, and assumed by, such transferee, for the time period after the date of such transfer. 4.4 Independent Contractor. A. The legal relationship between the Parties is that of an independent contractor, and nothing herein shall be deemed to make Contractor a City employee. During the performance of this Agreement, Contractor and its officers, and agents shall act in an independent capacity and shall not act as City officers or employees. The personnel performing the Services under this Agreement on behalf of Contractor shall at all times be under Contractor's direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Contractor or any of its officers, or agents, except as set forth in this Agreement. Contractor, its officers, or agents shall not maintain an office or any other type of fixed business location at City's offices. City shall have no voice in the selection, discharge, supervision, or control of Contractor's management companies, franchisors, or of their servants, representatives, or agents, or in fixing their number, compensation, or hours of service. Contractor shall pay all amounts due service providers in connection with this Agreement and shall be responsible for all reports and obligations respecting them. City shall not in any way or for any purpose be deemed to be a partner of Contractor in its business or otherwise a joint venturer or a member of any joint enterprise with Contractor. B. Contractor shall not incur or have the power to incur any debt, obligation, or liability against City, or bind City in any manner. C. No City benefits shall be available to Contractor, its officers, or agents in connection with any performance under this Agreement. Except for professional fees paid to Contractor as provided for in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for the performance of Services under this Agreement. City shall not be liable for compensation or indemnification to Contractor, its officers, or agents, for injury or sickness arising out of performing Services hereunder. If for any reason any court or 562291.1 4 governmental agency determines that the City has financial obligations, other than pursuant to Section 2 and Subsection 1.8 herein, of any nature relating to salary, taxes, or benefits of Contractor's officers, servants, representatives, subcontractors, or agents, Contractor shall indemnify City for all such financial obligations. x. A 5. INDEMNIFICATION To the fullest extent permitted by law, Contractor shall indemnify, defend (at Contractor's sole cost and expense), protect and hold harmless City and its officers, council members, officials, employees, agents and volunteers and all other public agencies whose approval of the Project is required, (individually "Indemnified Party"; collectively "Indemnified Parties") against any and all liabilities, claims, judgments, arbitration awards, settlements, costs, demands, orders, and penalties (collectively "Claims"), including but not limited to Claims arising from injuries or death of persons (Contractor's employees included) and damage to property, which Claims arise out of, pertain to, or are related to the negligence, recklessness, or willful misconduct of Contractor, its agents, employees, or subcontractors, or arise from Contractor's negligent, reckless, or willful performance of or failure to perform any term, provision, covenant, or condition of this Agreement ("Indemnified Claims"), but Contractor's liability for Indemnified Claims shall be reduced to the extent such Claims arise from the gross negligence or willful misconduct of the City, its officers, council members, officials, employees, or agents. Contractor shall reimburse the Indemnified Parties for any reasonable expenditures, including reasonable attorneys' fees, expert fees, litigation costs, and expenses that each Indemnified Party may incur by reason of Indemnified Claims. Upon request by an Indemnified Party, Contractor shall defend with legal counsel reasonably acceptable to the Indemnified Party all Claims against the Indemnified Party that may arise out of, pertain to, or relate to Indemnified Claims, whether or not Contractor is named as a party to the Claim proceeding. The determination whether a Claim "may arise out of, pertain to, or relate to Indemnified Claims" shall be based on the allegations made in the Claim and the facts known or subsequently discovered by the Parties. In the event a final judgment, arbitration award, order, settlement, or other final resolution expressly determines that Claims did not arise out of, pertain to, nor relate to the negligence, recklessness, or willful misconduct of Contractor to any extent, then City shall reimburse Contractor for the reasonable costs of defending the Indemnified Parties against such Claims, except City shall not reimburse Contractor for attorneys' fees, expert fees, litigation costs, and expenses that were incurred defending Contractor or any parties other than Indemnified Parties against such Claims. Contractor's indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until all actions against the Indemnified Parties for such matters indemnified hereunder are fully and finally barred by the applicable statute of limitations or, if an action is timely filed, until such action is final. This provision is intended for the benefit of third party Indemnified Parties not otherwise a party to this Agreement. 7. RESERVED. 562291.1 5 8. ENFORCEMENT OF AGREEMENT 81 California Law and Venue. This Agreement shall be construed and interpreted both as to validity and as to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such County, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 8.2 Interpretation. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties. The terms of this Agreement are contractual and the result of negotiation between the Parties. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. The caption headings of the various sections and paragraphs of this Agreement are for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs. 8.3 Termination. Provided there is no breach under this Agreement as of the date of termination, either party may terminate this Agreement by written notice thereof to the other party at any time after the later to occur of (i) the date the Contractor has entering into an agreement with a first class hotel brand (a "Brand") approved by the City (such consent not to be unreasonably withheld, conditioned nor delayed, with Marriott International, Inc., and its affiliates, hereby pre -approved) with a term of not less than 25 years, and the Brand has commenced "Pre -Opening Marketing and Booking" as defined in Exhibit. A attached hereto, (ii) the date the Contractor's Property opens operating under the Brand and (iii) the date the City has made all payments due Contractor under this Agreement. Otherwise, neither the City nor the Contractor may terminate this Agreement except as expressly provided herein. The City or Contractor reserves the right to terminate this Agreement upon a material default by the other party. The effectiveness of this Agreement is contingent upon Contractor obtaining the consent of its lenders to this Agreement, which Contractor agrees to use commercially reasonable efforts to obtain. In the event such consents are not obtained by July 31, 2008, either party may terminate this Agreement until such consents are obtained by written notice thereof to the other. 8.4 Default of City or Contractor. A. City or Contractor's material failure to comply with any material provision of this Agreement shall constitute a default after express written notice of such failure and the further failure of the City or Contractor to reasonably cure such failure within a reasonable period of time. B. If the City Manager, or his/her designee, or the Contractor, or his/her Representative determines that the City or Contractor is in default in the performance of any of 562291.1 6 the terms or conditions of this Agreement, he., -'she shall notify the other party in writing of such default. The party shall have ten (10) days, or such longer period as reasonably necessary or desirable provided the defaulting party is diligently pursuing a cure, to cure the default by rendering satisfactory performance. In the event the defaulting party fails to cure its default within such period of time, the non -defaulting party shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement upon notice to the defaulting party and without prejudice of any remedy to which it may be entitled at law or in equity, or under this Agreement. The defaulting party shall be liable for any and all reasonable costs incurred by the non -defaulting party as a result of such default. Compliance with the provisions of this section shall not constitute a waiver of any City or Contractor right to take legal action in the event that the dispute is not cured. . 8.5 Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. Any waiver by the Parties of any default or breach of any covenant, condition, or term contained in this Agreement, shall not be construed to be a waiver of any subsequent or other default or breach, nor shall failure by the Parties to require exact, full, and complete compliance with any of the covenants, conditions, or terms contained in this Agreement be construed as changing the terms of this Agreement in any manner or preventing the Parties from enforcing the full provisions hereof. 8.6 Rights and Remedies Cumulative. The rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the salve default or any other default by the other Party. 8.7 LeQal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Such legal actions must be instituted in the Superior Court of the County of Riverside, State of California. 8.8 Applicable Law; Interpretation. The laws of the State of California shall govern the interpretation and enforcement of this Agreement. This Agreement has been negotiated at arm's length and between persons sophisticated and knowledgeable in the matters dealt with herein. In addition, each party has been represented by experienced and knowledgeable legal counsel. Accordingly, any rule of law (including California Civil Code Section 1654) or legal decision that would require interpretation of any ambiguities in this Agreement against the party that has drafted it is not applicable and is waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effect the purposes of the parties and this Agreement. 8.9 Acceptance of Service of Process. In the event that any legal action is commenced by the Contractor against the City, service of process on the City shall be made by personal service upon the City Manager or in such other manner as may be provided by law. In the event that any legal action is commenced by the City against the Contractor, service of 562291.1 7 process on the Contractor shall be made by personal service upon the Contractor or in such other manner as may be provided by law and shall be valid whether made within or without the State of California. 8.10 Attorney Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non judicial proceeding, the prevailing Party shall be entitled, in addition to such other relief as may be granted, to recover from the non -prevailing Party all reasonable costs and expenses, including but not limited to reasonable attorney fees, expert Contractor fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of any judgment entered in such proceeding. To the extent authorized by law, in the event of a dismissal by the plaintiff or petitioner of the litigation or non judicial proceeding within thirty (30) days of the date set for trial or hearing, the other Party shall be deemed to be the prevailing Party in such litigation or proceeding. 9. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION 9.1 Non-liabili of City Officers and Emuloyees. No officer or employee of the City shall be personally liable to the Contractor, or any successor -in -interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. 9.2 Conflict of Interest. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his/her financial interest or the financial interest of any corporation, partnership, or association in which he'she is, directly or indirectly, interested in violation of any state statute or regulation. Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration in exchange for obtaining this Agreement. 9.3 Covenant Against Discrimination. In connection with its performance under this Agreement, Contractor shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, age, marital status, ancestry, or national origin. Contractor shall ensure that applicants are employed, and that employees are treated during their employment, without regard to their race, religion, color, sex, age, marital status, ancestry, or national origin. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. 10. MISCELLANEOUS PROVISIONS 10.1 Notices. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered, sent by registered or certified mail, postage prepaid, return receipt requested, or delivered or sent by facsimile with attached evidence of completed transmission, and shall be deemed received upon the earlier of (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) five (5) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by facsimile. Any notice, request, demand, 562291.1 8 direction, or other communication sent by facsimile must be confirmed within forty-eight (48) hours by letter mailed or delivered. Other forms of electronic transmission such as e-mails, text messages, instant messages are not acceptable manners of notice required hereunder. Notices or other communications shall be addressed as follows: To City: City of Palm Springs Attention: City Manager P.O. Box 2743 Palm Springs, California 92263 Telephone: (760) 322-8350 Facsimile: (760) 323-8207 With a Copy to: Douglas C. Holland, Esq., City Attorney Woodruff, Spradlin & Smart 555 Anton Boulevard, Suite 1200 Costa Mesa, California 92626 Telephone: (714) 415-1042 Facsimile: (714) 415-1142 To Contractor: D. Rick Adams, Senior Vice President Highland Hospitality Corporation 8405 Greensboro Drive, Suite 500 McLean, Virginia 22102 Telephone: (703) 336-4917 Facsimile: (703) 336-4950 With a copy to : JER Partners 1650 Tysons Boulevard, Suite 1600 McLean, Virginia 22102 Attn: Legal Department Telephone: 703-714-8000 Facsimile: 703-714-8102 With a Copy to: Rich Banjo, Vice President JER Partners 1650 Tysons Boulevard, Suite 1600 McLean, Virginia 22102 Telephone: (703) 714-8161 Facsimile: (703) 714-8107 10.2 Entire Apa reement. This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, arrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter hereof. No amendments or other modifications of this Agreement shall be binding unless executed in writing by both Parties hereto, or their respective successors, assigns, or grantees. 10.3 Severability. Whenever possible, each provision of this Agreement shall be 562291.1 9 interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be determined to be invalid by a final judgment or decree of a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the reminder of that provision, or the remaining provisions of this Agreement unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless. 10.4 Successors in Interest: Subordination. This Agreement shall be binding upon and inure to the benefit of the Parties' successors and assignees. This Agreement is subordinate to any existing or future mortgage or mezzanine loan with respect to the Contractor's Property. 10.5 Third Party Beneficiary. Except as may be expressly provided for herein, nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third -party beneficiary or otherwise, upon any entity or person not a party hereto. 10.6 Recitals. The above -referenced Recitals are hereby incorporated into the Agreement as though fully set forth herein and each Party acknowledges and agrees that such Party is bound, for purposes of this Agreement, by the same. 10.7 Corporate Authority. Each of the undersigned represents and warrants that (i) the Party for which he or she is executing this Agreement is duly authorized and existing, (ii) he or she is duly authorized to execute and deliver this Agreement on behalf of the Party for which he or she is signing, (iii) by so executing this Agreement, the Party for which he or she is signing is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which the Party for which he or she is signing is bound. 62291. l 10 IN WITNESS WHEREOF, the Parties have executed and entered into this Agreement as of the date first written above. "CITY" CITY OF PALM SPRINGS a California Charter Cit DAVID READY City Manager ATTEST: APPROVED BY Cirf COUNCIL o(v f .26.ZoQ 1 Zp. ?AMES THOMPSON Clerk MINI UaA:C•]4W.11 •Irr City "CONTRACTOR" HH Palm Springs, LLC B Name: GERALD R. Title: VICE PRESIDENT EL By: / iire r Secretary :::; � L � - - IC-0, r - . 56229L.] II EXHIBIT "A" SCOPE OF SERVICES The Contractor shall obtain access to and participation in an international hotel and convention center marketing and reservation program (the "Program") for the hotel property owned by the Contractor at 888 East Tahquitz Canyon Way, Palm Springs, California and the Palm Springs Convention Center attached thereto at 275 North Avenida Caballeros, Palm Springs, California (collectively, the "Property"), for a period of twenty-five (25) years from the effective date of this Agreement. The Program shall provide at all times no less than the services set forth and described as follows as of the date hereof, subject to reasonable changes over time consistent with changes made by first class hospitality brands changes in international hotel and convention center marketing and reservation programs: The reservation system must contain the minimum ability to enable Reservation Associates to make reservations at any property within the portfolio of Brands. It is also must have the capacity to incorporate an Inventory & Revenue management system for use by the Revenue Leaders at each property or controlling office. The reservation system must contain the minimum ability to allow local and worldwide reservations centers as well as travel agencies and internet users to make reservations at any Brand X hotel world-wide. The reservation system must also be linked directly to the Brand X website. An individual Guest must have the minimum ability to book/change,:cancel reservations and receive email confirmation of their reservations directly through the Internet site. The reservation system must be linked with the global distribution systems (GDS) operated by major airlines and travel organizations, offering real-time availability. Brand X combined with its parent organization, must hold a minimum .5% of the worldwide supply of hotel rooms. A guest making a reservation through the reservation system must be able to make and confirm reservations up to a minimum of 51 weeks from the current date, provided that the requested hotel has inventory available for the requested dates. The reservation system must also allow for Revenue and/or Inventory Management of each property to have very accurate control over the rooms & rates available to sell for the next 51 weeks. The reservation system must allow for control of availability of rooms by room pool and/or rate program code, by length of stay restrictions, black out dates, closed -to -arrival and in addition has the functionality to ensure that conflicting restrictions are not in place. The reservation system must contain the minimum ability to create Customer Profiles which can be tracked within the system. A Brand Loyalty program must have memberships tracked giving users access to customers' reservation preferences at a glance. The reservation system must have 562291 A the profiles for these frequent guests in the system to speed the process of making reservations, improving guest service and tracking the guest's usage. The reservation system must also contain the ability to track travel agency, wholesaler, and preference plus profiles in the system, making the reservation process more efficient. The reservation system must allow for strict control over the rates, availability and up to the minute impact on how to sell the hotel to maximize revenue. For the purpose of this Agreement and this Exhibit "A" to the Agreement, the term 'Brand V shall mean a first class hotel approved by the City (such consent not to be unreasonably withheld, conditioned nor delayed, with Marriott International, Inc., and its affiliates, hereby pre - approved), and the term "reservation system" shall not mean the hotel room booking services provided solely by any online travel company, including without limitation, Expedia, Travelocity, Priceline, or Orbitz. The phrase "Pre -Opening Marketing and Booking" shall mean: • The Contractors Property specific inventory information shall be built and loaded in the Brands Reservation Program with an established inn code that exclusively identifies the Contractors Property within the international hotel reservation program • The Contractors Property target sell date shall be established with the Brand that will allow for reservation booking to occur on or after such target sell date via the Brands Reservation Program • The Contractors Property will appear on the Brands web site and the web site page for Contractors property shall include specific information about said property and the established sell date • Transient and Group customers will have the ability to use the Reservation Program to book reservations that are within eleven and one-half months into the future; after the Contractors Property opens and is operating under the Brand, Group reservations can be entered for any future date • A Pre -Opening Sales and Marketing meeting will be conducted with the Brands Sales Team to ensure that the Reservation Program and booking channels are identified and understood, pricing strategies are communicated, reservations sales lead sharing process and other sales activities are understood and coordinated with the on site management team 36M1, I EXHIBIT "B" SCHEDULE OF COMPENSATION A payment of $855,000, plus a payment of an additional $445,000 for a total of $1,300,000, would be made upon the completion of the Pre -Opening Marketing and Booking criteria as established in Exhibit A A payment of $855,000 due on December 20, 2008. A payment of $855,000 due on December 20, 2009 The final payment of $415,000 in cash would be paid no later than February 28, 2010. Once the international hotel and convention center marketing and reservation program is placed into service on behalf of the Contractor's Property, if the Program were suspended, terminated, or otherwise ceased operation, the Contractor would pay the City $10,000 for each full month of non -operation or a pro -rated amount for each partial month of non -operation for the period prior to termination of this Agreement (unless termination is due to breach of this Agreement by Contractor). 562291.1 C) EXHIBIT "C" SCHEDULE OF PERFORMANCE Item To Be Performed Time for Estimated Performance Date 1. Contractor executes and delivers On or before July 31, July 31, 2008 Contractual Services Agreement for 2008 an International Hotel and Convention Center Marketing and Reservation Program to City Contractor executes and delivers On or before July 31, 2. July 31, 2008 ! Hotel Franchise Agreement with 2008 International Hotel Brand to City Attorney 3. Evidence that the Property is permitted to Within 90 days after September commence Pre -Opening Marketing and execution of Contract 30, 2008 Bookin It is understood that the foregoing Schedule of Performance is subject to all of the terms and conditions set forth in the text of the Agreement. The summary of the items of performance in this Schedule of Performance is not intended to supersede or modify the more complete description in the text; in the event of any conflict or inconsistency between this Schedule of Performance and the text of the Agreement, the text shall govern. The time periods set forth in this Schedule of Performance may be altered or amended only by written agreement signed by both Contractor and City. A failure by either party to enforce a breach of any particular time provision shall not be construed as a waiver of any other time provision. The City Manager shall have the authority to approve extensions of time without City Council action not to exceed a cumulative total of 180 days as provided in this Agreement. 562291. ]