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
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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
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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):
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.
Facsimile No.: (215) 655-2647
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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
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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
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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.
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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
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SUBLANDLORD:
THE CITY OF PALM SPRINGS
By:
DaviRe�ady
City Manager
APPROVED A5 TO FORM: -
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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
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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.
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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
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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 .
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uo:m.,od g 47uo $ssadwoo assaTgr:S s:_. :a:_, sas:uasd
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Pug auas*JdaJ 010204 oajaJad agtL cF aqo 0 .1
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eq3 :*pun s:ossaj at;-4 oa asea7gnS sTq> ,spun psoTpuvTgnS
aqa TO asaJazut ate] ;a auaWubTssg ue so- aaelado 7=g4c ;nq
'asFaTgnS 6TUI ;aauPO oa 4AJ9s sou 17ettfi 8978'1 J$-4seW aya
;a uOi_gutlr:a± •Japuns;agz a*ssal eq: ;o „rd ay, uc 92081
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'$=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
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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
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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
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MOM=
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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.
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;o f auvdnaao s,]uauaagnS 6utJnp awi% Aup .v asaaTgnS %Tqa ;o
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-IAoad 09: ;a uostal Aq 42TMA 06101 JaaspW Oqj UT pauT42uOa
suaTIIpFUOa ao cuOTCIACJd 'swsa'4 's'4ua9uaa:bP 'sauvuanos a47
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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.
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. . • 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
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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$4►NDLORD
SExCA Film Springs, Inc.,
a California corporation
Y
SUBTENANT:
Community Redevelopment Agency
of the City of palm Springs,
California
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EXFISIT B
(::OTF—f I - xr SUBLEASE)
Lots l and B through E inclusive of Tract No. 20483. in the
City of Palm Springs, County of Riverside, State of Ca W ornia,
as per neap recorded in Book 147, Pages 33 and 56 of Naps,
in the Office of the County Recorder of said County.
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2. The initial terra of the Sublease commenced on Janu-
ary 1, 1905 and expires on.December 30, 2059.
• 3. Sub}ect to the -terms .and conditions of the
Sublease, the Sublessee has one option to extend the term of
the Sublease for an additional period of 25 years.
4. The purpose of this Memorandum is to provide a doc-
ument for'recordation purposes only and shall not be deemed
to amend or modify the Sublease -in any fashion whatsoever.
Direct reference must be made to the Sublease for the agree-
ments that have bmen wade between the Sublessor and
Sublessee thereunder.
IN WITNESS WHEitEOF, the parties hereto have executed
this Memorandum of Sublease as of the day and -date first
above written.
r
SUBLESSOR:
SENCA Palm Springs, Inc.,
a Californiayeor ors ion
B / i 'i
Y
SUnr.. SSrt .
czmmuniry
Ca! crn
By
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2
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a:;: u; ' fi B t Ot ' ay zast�y ;a anTsntOut 3 ubnoak� a P ' T
to Z8;15 I$ 1 711091•
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,
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 -
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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
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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
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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
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3%M 20 8 TVZTOatt 6,49120-4ml plaquoilelol(t;)
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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
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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.
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STATE OF CAUFGRNIA }
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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.
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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
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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
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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
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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)
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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
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•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]
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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
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miler
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OW11410 t
DOTAh Chen
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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
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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
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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
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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.
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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
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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
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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.
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(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)
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Notary Public
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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
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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).
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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').
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pue saslwaid pase33 a41 ul 01E15a 111104as"I a41 'SSUM ia41O Suowe'ol pue u1 Moil to lsaialul
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sp S96 t 'OE 19gwa39p papio3ai aiaM sasealgns-gns 43ns jo epueiowaW) Mai] pue A3ua-ly
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-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
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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
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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
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COUNTY o F1 a n —a-
On
WITNESS my hand and official seal.
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DEMSE L MIUER,TIIPA Notary Public
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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
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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).
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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
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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.
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[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]
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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.
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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. ]