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<SEC-DOCUMENT>0001104659-06-047986.txt : 20060720
<SEC-HEADER>0001104659-06-047986.hdr.sgml : 20060720
<ACCEPTANCE-DATETIME>20060720144945
ACCESSION NUMBER:		0001104659-06-047986
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20060714
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060720
DATE AS OF CHANGE:		20060720

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MAUI LAND & PINEAPPLE CO INC
		CENTRAL INDEX KEY:			0000063330
		STANDARD INDUSTRIAL CLASSIFICATION:	CANNED, FRUITS, VEG & PRESERVES, JAMS & JELLIES [2033]
		IRS NUMBER:				990107542
		STATE OF INCORPORATION:			HI
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-06510
		FILM NUMBER:		06971519

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 187
		STREET 2:		120 KANE ST
		CITY:			KAHULUI MAUI
		STATE:			HI
		ZIP:			96733
		BUSINESS PHONE:		8088773351

	MAIL ADDRESS:	
		STREET 1:		PO BOX 187
		CITY:			KAHULUI
		STATE:			HI
		ZIP:			96733
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a06-16299_18k.htm
<DESCRIPTION>CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES
<TEXT>
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<div style="font-family:Times New Roman;">
 <div style="border:none;border-top:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><a name="scotch"></a></p> </div>

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  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington, D.C. 20549</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">FORM 8-K</font></b></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">CURRENT REPORT</font></b></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">Pursuant
to Section 13 or 15(d) of<br>
the Securities Exchange Act of 1934</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Date of Report (Date of earliest event reported)&#160; </font></b>July 14, 2006</p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">Maui Land &amp; Pineapple Company, Inc.</font></b></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of Registrant as Specified in Its Charter)</font></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
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  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.1%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b>Hawaii</b></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
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  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">0-6510</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:3.34%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.1%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">99-0107542</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.1%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other
  jurisdiction</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:3.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.1%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:3.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.1%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS Employer</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.1%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of
  incorporation)</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:3.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.1%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">File Number)</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:3.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.1%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Identification
  No)</font></p>
  </td>
 </tr>
</table>

</div>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">120 Kane Street, P.O. Box
187, Kahului, Maui, Hawaii, 96733-6687</font></b></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal executive offices)</font></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">(808) 877-3351</font></b></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s telephone number, including area code)</font></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not Applicable</font></b></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or former address, if changed since last
report)</font></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions: </font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</p>

<p style="font-size:10.0pt;margin:0pt 0pt .0001pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Pre-commencement communications pursuant
to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 1.01&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Entry
into a Material Definitive Agreement.</font></b><a name="Item1_01EntryIntoAMaterialDefinit_115223"></a></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Construction Loan Agreement</font></u></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Maui Land &amp; Pineapple
Company, Inc., a Hawaii corporation (the &#147;Company&#148;), has a 51% ownership
interest in Kapalua Bay Holdings, LLC, a Delaware Limited Liability Company, which
is the sole member of Kapalua Bay, LLC, a Delaware limited liability company (&#147;Kapalua
Bay&#148;).&#160; Kapalua Bay intends to construct
a residential development on land that it owns at the Kapalua Resort in
Lahaina, Hawaii, and a spa on an adjacent parcel of land that is owned by the
Company and leased to Kapalua Bay (construction regarding the residential
development and spa are cumulatively referred to herein as the &#147;Project&#148;).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On July 14, 2006 (the &#147;Effective
Date&#148;), Kapalua Bay entered into a Construction Loan Agreement (the &#147;Loan
Agreement&#148;) with Lehman Brothers Holdings Inc., a Delaware corporation (&#147;Lehman&#148;),
pursuant to which Lehman agreed to loan to Kapalua Bay the lesser of
$370,000,000 and 61.6% of the total projected cost of the Project in order to
fund various stages of the Project pursuant to the terms and conditions set
forth therein (the &#147;Loan&#148;).&#160; Interest
accrues on the Loan at a floating rate equal to the one (1) month LIBOR rate
plus two hundred twenty (220) basis points, or 2.2% (the &#147;Adjusted LIBOR Rate&#148;).&#160; Subject to certain limitations, during the
term of the Loan, Kapalua Bay may elect to have the then-current Adjusted LIBOR
Rate apply to some or all of the outstanding Loan amount.&#160; All principal and interest amounts due under
the Loan shall be due and payable in full on August 1, 2009 (the &#147;Initial
Maturity Date&#148;) unless Kapalua Bay elects to extend the maturity date for up to
two additional terms of twelve (12) months, which elections are subject to the
satisfaction of certain conditions.&#160;
Kapalua Bay may not prepay the Loan at any time prior to the second
anniversary of the Effective Date, but may prepay the Loan thereafter, provided
that it pays certain costs and fees as set forth in the Loan Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On the Effective Date,
Lehman disbursed an initial advance of $40.1 million to Kapalua Bay to pay
certain pre-development costs and such other costs as the parties shall agree
upon (an &#147;Initial Advance&#148;).&#160; After the
Initial Advance, Lehman is not obligated to make any further advances under the
Loan until building permits for the Project have been issued.&#160; After issuance of the building permits,
Kapalua Bay may borrow up to an additional $44.9 million, for a total advance
of $85.0 million without any sales requirements. &#160;Subsequent borrowings by Kapalua Bay are
contingent upon sales of residential units equal to or exceeding $285.0
million.&#160; Kapalua Bay paid Lehman a loan
fee of $3.7 million out of the proceeds of the Initial Advance, which payment
represents one percent (1.0%) of the maximum Loan amount and is non-refundable
regardless of when the Loan is repaid or whether any further advances of the
Loan are made.&#160; Disbursements under the
Loan Agreement are contingent upon, among other things, no event of default or
material adverse change occurring with respect to Kapalua Bay or the
Project.&#160; The Loan is not revolving in
nature and amounts repaid may not be subsequently advanced.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All Loan proceeds disbursed
by Lehman shall be used only for specified budgeted items for which such
proceeds were advanced. &#160;The Loan
Agreement contains customary affirmative and negative covenants for loan
agreements of this type, including those with respect to proper zoning,
required governmental approvals, deviation from Project plans, avoidance of
construction liens, minimum insurance requirements, payment of taxes and other
similar covenants.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Fee and Leasehold Mortgage,
Security Agreement and Fixture Filing</font></u></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to a Fee and
Leasehold Mortgage, Security Agreement and Fixture Filing executed by Kapalua
Bay for the benefit of Lehman on the Effective Date (the &#147;Mortgage&#148;), the Loan
is </font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">secured by a mortgage on
the Project assets including, without limitation, the fee simple interest in
land owned by Kapalua Bay upon which construction of the residences will occur,
the leasehold interest held in the land upon which construction of the spa will
occur, and the assignment of all of the contracts for sale of the residential
units.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Promissory Note</font></u></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with execution
of the Loan Agreement, on the Effective Date, Kapalua Bay delivered a
Promissory Note (the &#147;Promissory Note&#148;) to Lehman under which it
unconditionally promised to pay the principal sum of $370,000,000 or so much
thereof as is advanced pursuant to the Loan Agreement.&#160; The terms of the Promissory Note are governed
by the terms of the Loan Agreement.&#160; The
Promissory Note constitutes a non-recourse obligation with respect to Kapalua
Bay except with respect to certain recourse obligations set forth therein including,
but not limited to, (1) fraud or intentional misrepresentation by Kapalua Bay,
the Company or any Member (as defined below) in connection with the Loan, (2)
the gross negligence or willful misconduct of Kapalua Bay, the Company or any
Member, (3) the physical waste of the Project or any part thereof which is
attributable to the acts or omissions of Kapalua Bay, the Company or any
Member, (4) the breach of provisions in the Loan Agreement relating to
environmental laws and hazardous materials, (5) the removal of any personal
property in violation of the Loan Agreement and related documents, (6) any
financial information concerning Kapalua Bay, the Company or any Member which
proves to be fraudulent in any material respect, (7) the Project or any part
thereof becoming an asset in a voluntary or involuntary bankruptcy or
insolvency proceeding, and (8) any amendment to the organizational documents of
Kapalua Bay, the Company or any Member, without Lehman&#146;s prior written
consent.&#160; The recourse obligations set
forth in the Promissory Note, including those not summarized above, are
collectively referred to as the Recourse Obligations.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Completion Guaranty</font></u></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to a Completion
Guaranty, dated as of the Effective Date, executed by The Ritz-Carlton
Development Company, Inc., a Delaware corporation, Exclusive Resorts
Development Company, LLC, a Delaware limited liability company (each a &#147;Member&#148;
and collectively the &#147;Members&#148;) and the Company, the Members and the Company
have guaranteed Lehman (1) substantial completion of the Project in accordance
with the approved Project plan and the Loan Agreement; (2) full reimbursement
for any and all sums actually expended by Lehman for or toward the completion
of the Project, and (3) full indemnification from and against any and all
actual costs, claims, causes of action, liabilities, expenses or losses,
including without limitation reasonable attorney&#146;s fees, arising from any
failure by Kapalua Bay, the Company or any Member to complete the Project on or
before the completion date.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Recourse Guaranty</font></u></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to a Recourse
Guaranty, dated as of the Effective Date, executed by the Members and the
Company for the benefit of Lehman (the &#147;Recourse Guaranty&#148;) the Members and the
Company have agreed to guaranty the Recourse Obligations set forth in the
Promissory Note, which excludes payment in full of the Loan.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The foregoing descriptions of the Loan Agreement, the Mortgage, the
Promissory Note, the Recourse Guaranty and the Completion Guaranty do not
purport to be complete and are qualified in their entirety by reference to such
documents, copies of which are attached hereto as Exhibits 10.1, 10.2, 10.3,
10.4 and 10.5, respectively, and are incorporated herein by reference.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>


<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 74.75pt;text-indent:-74.75pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 2.03</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant.</b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s
entry into the Loan Agreement, the Mortgage, </font>the Promissory Note, the Recourse Guaranty
and the Completion Guaranty described in Item 1.01 constitutes the
creation of a direct financial obligation.&#160;
The disclosure set forth above under Item 1.01 is hereby incorporated by
reference into this Item 2.03.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.01&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Financial
Statements and Exhibits</font></b></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Exhibits</u></font></p>

<div align="center" style="font-family:Times New Roman;">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr style="page-break-inside:avoid;">
  <td width="95" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:71.3pt;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;"><!-- SET mrlHTMLTableCenter --><!-- SET mrlNoTableShading -->Exhibit Number</p>
  </td>
  <td width="18" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="506" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:379.3pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Description</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="95" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:71.3pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
  </td>
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="506" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:379.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Construction Loan Agreement, dated as of July 14,
  2006, by and between Kapalua Bay, LLC and Lehman Brothers Holdings Inc.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="95" valign="top" style="padding:0pt .7pt 0pt 0pt;width:71.3pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></p>
  </td>
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="506" valign="top" style="padding:0pt .7pt 0pt 0pt;width:379.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fee and Leasehold Mortgage, Security Agreement and
  Fixture Filing dated as of July 14, 2006, executed by Kapalua Bay, LLC.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="95" valign="top" style="padding:0pt .7pt 0pt 0pt;width:71.3pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font></p>
  </td>
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="506" valign="top" style="padding:0pt .7pt 0pt 0pt;width:379.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Promissory Note, dated as of July 14, 2006, executed
  by Kapalua Bay, LLC.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="95" valign="top" style="padding:0pt .7pt 0pt 0pt;width:71.3pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.4</font></p>
  </td>
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="506" valign="top" style="padding:0pt .7pt 0pt 0pt;width:379.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Completion Guaranty, dated July 14, 2006, executed
  by the Company, The Ritz-Carlton Development Company, Inc. and Exclusive
  Resorts Development Company, LLC for the benefit of Lehman Brothers Holdings,
  Inc.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="95" valign="top" style="padding:0pt .7pt 0pt 0pt;width:71.3pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.5</font></p>
  </td>
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="506" valign="top" style="padding:0pt .7pt 0pt 0pt;width:379.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Recourse Guaranty, dated July 14, 2006, executed by
  the Company, The Ritz-Carlton Development Company, Inc. and Exclusive Resorts
  Development Company, LLC for the benefit of Lehman Brothers Holdings, Inc.</font></p>
  </td>
 </tr>
</table>

</div>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">4</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div style="font-family:Times New Roman;">
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>

<p align="center" style="margin:12.0pt 0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.94%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MAUI LAND &amp; PINEAPPLE COMPANY, INC.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: July 20, 2006</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.7%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:44.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;/S/ ROBERT I. WEBBER</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.7%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:44.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robert I. Webber</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.7%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">5</font></p>
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 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT INDEX<a name="ExhibitIndex_120342"></a></font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:13.64%;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;"><!-- SET mrlNoTableShading -->Exhibit Number</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="83%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:83.98%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Description</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:13.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="83%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:83.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Construction Loan Agreement, dated as of July 14,
  2006, by and between Kapalua Bay, LLC and Lehman Brothers Holdings Inc.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="83%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:83.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fee and Leasehold Mortgage, Security Agreement and
  Fixture Filing, dated as of July 14, 2006, executed by Kapalua Bay, LLC.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="83%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:83.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Promissory Note, dated as of July 14, 2006, executed
  by Kapalua Bay, LLC.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.4</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="83%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:83.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Completion Guaranty, dated July 14, 2006, executed
  by the Company, The Ritz-Carlton Development Company, Inc. and Exclusive
  Resorts Development Company, LLC for the benefit of Lehman Brothers Holdings,
  Inc.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.64%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.5</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="83%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:83.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Recourse Guaranty, dated July 14, 2006, executed by
  the Company, The Ritz-Carlton Development Company, Inc. and Exclusive Resorts
  Development Company, LLC for the benefit of Lehman Brothers Holdings, Inc.</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">6</font></p>
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<div style="font-family:Times New Roman;">

<p align="right" style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="right" style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit 10.1</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">CONSTRUCTION LOAN
AGREEMENT</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">for a loan in the
aggregate amount of up to</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">$370,000,000</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">MADE BY AND BETWEEN</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">KAPALUA BAY, LLC,<br>
a Delaware limited liability company, <br>
as Borrower</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">LEHMAN BROTHERS HOLDINGS INC.,<br>
a Delaware corporation,<br>
as Lender</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Dated as of July 14, 2006</font></b></p>

<p style="margin:0pt 0pt .0001pt;text-indent:10.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt .0001pt;text-indent:10.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Residences at Kapalua Bay&#148;</font></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;">&nbsp;</p>

</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div>


<p style="font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">TABLE OF CONTENTS</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE I INCORPORATION OF RECITALS AND EXHIBITS</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.1
  Incorporation of Recitals.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.2
  Incorporation of Exhibits.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE II DEFINITIONS</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.1
  Defined Terms.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE III REPRESENTATIONS AND WARRANTIES</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.1
  Representations and Warranties.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.2
  Survival of Representations and Warranties.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE IV LOAN AND LOAN DOCUMENTS</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.1
  Agreement to Borrow and Lend; Lender&#146;s Obligation to Disburse.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.2 Loan
  Documents.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.3 Term
  of the Loan.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.4
  Prepayments.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.5
  Required Principal Payments.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE V INTEREST</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.1
  Interest Rate.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE VI COSTS OF MAINTAINING LOAN</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.1
  Increased Costs and Capital Adequacy.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE VII LOAN EXPENSE AND ADVANCES</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.1 Loan
  and Administration Expenses.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p>
  </td>
 </tr>
</table>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">i</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><!-- SET mrlNoTableShading -->Section 7.2 Brokerage Fees.</p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.3
  Right of Lender to Make Advances to Cure Borrower&#146;s Defaults.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE VIII CONDITIONS PRECEDENT TO THE MAKING OF
  THE LOAN</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.1
  Non-Construction Conditions Precedent.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE IX
  CONDITIONS PRECEDENT FOR SUBSEQUENT ADVANCES UNDER THE LOAN</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.1
  Pre-Development Conditions Precedent.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.2
  Building Permit</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.3
  Pre-Sales Requirement</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE X
  CONSTRUCTION CONDITIONS PRECEDENT FOR SUBSEQUENT ADVANCES UNDER THE LOAN</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.1
  Required Construction Documents.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XI CONSTRUCTION BUDGET; RESERVES; OPERATING
  BUDGET</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">39</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.1
  Construction Budget.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">39</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.2
  Budget Line Items.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">39</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.3
  Contingency Reserve.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.4
  Interest Reserve.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.5 Tax
  and Insurance Reserve.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.6
  [Intentionally Deleted].</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.7
  [Intentionally Deleted].</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.8
  [Intentionally Deleted].</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XII SUFFICIENCY OF LOAN</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 12.1
  Loan In Balance.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
 </tr>
</table>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">ii</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->ARTICLE XIII CONSTRUCTION PAYOUT REQUIREMENTS</p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
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  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 13.1
  Documents to be Furnished for Each Disbursement.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 13.2
  Retainage.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 13.3
  Disbursements for Stored Materials.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XIV FINAL DISBURSEMENT FOR CONSTRUCTION
  COSTS</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 14.1
  Final Disbursement for Construction Costs.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 14.2
  Retainage.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">44</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XV CONDOMINIUM COVENANTS</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.1
  Contracts of Sale.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.2
  Residential Condominium.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">46</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.3
  Fractional Ownership Units.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">47</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.4
  Releases of Units.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">48</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.5
  Releases of Facilities.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">49</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.6
  Breakage Costs.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">51</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.7
  Indemnification.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">51</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.8
  Expenses.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">51</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XVI COVENANTS</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">51</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.1
  Certain Covenants.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">51</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.2
  Insurance.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">58</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.3
  Special Purpose Covenants.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">61</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XVII CASUALTY AND CONDEMNATION</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">63</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 17.1
  Lender&#146;s Election to Apply Proceeds to the Debt.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">63</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 17.2
  Borrower&#146;s Obligation to Rebuild.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">64</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">iii</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->ARTICLE
  XVIII TRANSFERS</p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">65</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 18.1
  Prohibition of Assignments and Transfers by Borrower.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">65</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 18.2
  Prohibition of Transfers in Violation of ERISA.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">66</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 18.3
  Successors and Assigns.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">66</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XIX SERVICER</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">66</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 19.1
  Servicer.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">66</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 19.2
  Servicer Fees.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">67</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XX
  EVENTS OF DEFAULT</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">67</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 20.1
  Events of Default.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">67</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XXI LENDER&#146;S REMEDIES IN EVENT OF DEFAULT</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">69</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 21.1
  Remedies Conferred Upon Lender.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">69</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XXII GENERAL PROVISIONS</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">70</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.1
  Captions.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">70</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.2
  Modification; Waiver.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">70</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.3
  Governing Law.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">70</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.4
  Acquiescence Not to Constitute Waiver of Lender&#146;s Requirements.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">71</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.5
  Disclaimer by Lender.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">71</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.6
  Partial Invalidity; Severability.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">72</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.7
  Definitions Include Amendments.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">72</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.8
  Execution in Counterparts.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">72</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.9
  Entire Agreement.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">72</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.10 Waiver
  of Damages.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">72</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.11
  Jurisdiction.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">73</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">iv</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><!-- SET mrlNoTableShading -->Section 22.12 Set-Offs.</p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">73</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.13
  Authorized Representative.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">73</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.14
  Non-Recourse Provisions.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">74</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.15
  Time is of the Essence.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">74</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.16
  Sole Discretion of Lender and Deemed Consent.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">74</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.17
  Conflict; Construction of Documents; Reliance.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">74</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XXIII NOTICES</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">75</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XXIV WAIVER OF JURY TRIAL</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">76</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XXV SALE OF NOTE AND SECURITIZATION.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">76</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.1
  Cooperation.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">76</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.2
  Non-Consolidation Opinion; Independent Director.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">77</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.3
  Loan Components.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">77</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.4
  Intentionally Deleted.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">77</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.5
  Conversion of Loan and Creation of Subordinate Debt.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">77</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.6
  Securitization Indemnification.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">78</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.7
  Rating Surveillance.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">80</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">v</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBITS AND
SCHEDULES TO LOAN AGREEMENT</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->Exhibit A-1</p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Legal Description of Development Land</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit A-2</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Legal Description of Spa Land</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit B</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Entitlements</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit C</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Permitted Exceptions</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit D</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Requisitions</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit E</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Existing Plans and Specifications</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit F</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower Ownership Structure Chart</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit G</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Construction Budget</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit H</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Construction Schedule</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit I</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Architect&#146;s Certificate</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule A</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Release Prices</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule B</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreements with Affiliates</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule C</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Leases</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule D</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Equity Contribution as of the Effective Date</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">vi</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">CONSTRUCTION LOAN AGREEMENT</font></b></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Project
commonly known as</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Residences at
Kapalua Bay&#148;</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS CONSTRUCTION
LOAN AGREEMENT (this &#147;<u>Agreement</u>&#148;) is made as of July 14, 2006, by and
between KAPALUA BAY, LLC, a Delaware limited liability company, (&#147;<u>Borrower</u>&#148;),
and LEHMAN BROTHERS HOLDINGS INC., a Delaware corporation (together with its
successors and/or assigns, &#147;<u>Lender</u>&#148;).</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">RECITALS</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower is the fee owner of that certain tract of land
located in Lahaina, Maui, Hawaii, and being more fully described in <u>Exhibit
A-1</u> attached hereto (the &#147;<u>Development Land</u>&#148;).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower is the owner of a leasehold interest in that
certain tract of land located in Lahaina, Maui, Hawaii, and being more fully
described in <u>Exhibit A-2</u> attached hereto (the &#147;<u>Spa Land</u>&#148;; and
collectively with the Development Land, the &#147;<u>Land</u>&#148;).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower intends to develop a residential development on
the Development Land and has submitted the Development Land to a condominium
property regime which includes for-sale Residential Condominium Units and
Fractional Ownership Units.&#160; The Spa Land
will be developed as a Spa for the benefit of the guests and residents of the
Project.&#160; The Land, the Spa, the
Improvements and Personal Property (each as hereinafter defined) located
thereon are collectively sometimes referred to as the &#147;<u>Project</u>&#148;.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower has applied to Lender for a construction loan in
an aggregate principal amount of up to Three Hundred Seventy Million and 00/100
Dollars ($370,000,000.00) (the &#147;<u>Loan</u>&#148;).&#160;
The Loan shall be used to fund costs of Construction and such other
costs as are set forth in the Construction Budget (each as hereinafter
defined).</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein contained, the
parties hereto agree as follows:</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE I<br>
INCORPORATION OF RECITALS AND EXHIBITS</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:avoid;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Incorporation
of Recitals</u>.</h2>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The foregoing
preambles and all other recitals set forth herein are made a part hereof by
this reference.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:avoid;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Incorporation
of Exhibits</u>.</h2>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Exhibits to
this Agreement are incorporated in this Agreement and expressly made a part
hereof by this reference.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">1</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>


<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE
II<br>
DEFINITIONS</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:avoid;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Defined
Terms</u>.</h2>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following
terms as used herein shall have the following meanings:</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Adjusted LIBOR
Rate</font></u>:&#160; A rate per annum
equal to the LIBOR Rate (determined as herein set forth) plus two hundred
twenty (220) basis points (2.2%).</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Adjusted Prime
Rate</font></u>:&#160; A rate per annum
equal to the sum of (a) the Prime Rate Margin and (b) the greater of (i) the
Prime Rate and (ii) one percent (1%) in excess of the Federal Funds Effective
Rate.&#160; Any change in the Adjusted Prime
Rate shall be effective immediately from and after a change in the Prime Rate
(or the Federal Funds Effective Rate, as applicable).</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Affiliate</font></u>:&#160; With respect to a specified Person, any
Person which, directly or indirectly, through one or more intermediaries,
Controls or is Controlled by or is under common Control with such Person,
including, without limitation, any limited liability company in which such
Person is a member<font size="1" style="font-size:6.5pt;position:relative;top:1.0pt;">.</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement</font></u>:&#160; This Construction Loan Agreement.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Applicable Rate</font></u>:&#160; A rate per annum equal to either the Adjusted
LIBOR Rate or the Adjusted Prime Rate, as determined in accordance with the
provisions of <u>Article V</u> hereof.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Appraisal</font></u>:&#160; An MAI-certified appraisal of the Project,
performed, at Borrower&#146;s expense, in accordance with FIRREA and Lender&#146;s
appraisal requirements by an appraiser selected and retained by Lender.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Architect</font></u>:&#160; WCIT Architecture, or such other licensed,
reputable architect as Borrower selects and Lender, acting reasonably,
approves.&#160; In making the determination as
to whether to approve an architect other than WCIT Architecture, Lender may
take into account any prior dealings it or its co-lenders may have had with the
proposed architect.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Architect&#146;s
Agreement</font></u>:&#160; That certain
Agreement dated December 10, 2004, by and between Borrower and Architect, for
the design of the Improvements, as same may be amended from time to time,
subject to Lender&#146;s reasonable prior approval.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Architect&#146;s
Certificate</font></u>:&#160; A
certificate by Architect, substantially in the form attached hereto as <u>Exhibit
I</u>, in favor of Lender to the effect that the Project complies with Laws,
and as to such other matters as Lender shall reasonably require.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assignment of
Leases and Rents</font></u>:&#160; The
Assignment of Leases and Rents, dated as of the date hereof, by Borrower in
favor of Lender.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assignment of
Purchase Contracts</font></u>: The Assignment of Purchase Contracts,
dated as of the date hereof, by Borrower in favor of Lender, assigning all of
Borrower&#146;s rights under</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contracts
of Sale and Contract Deposits in connection with a sale of any Unit or any
portion of the Project, in existence as of the Effective Date, and subsequent
thereto.</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Authorized
Representative</font></u>:&#160; Ryan
Churchill and/or Adele Sumida.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Available Contract
Deposit</font></u>:&#160; A Contract
Deposit that is permitted and available to be applied to Hard Costs and Soft
Costs in accordance with applicable Laws, the applicable Contract of Sale, and
against which there are no pending or threatened claims, actions, proceedings.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bankruptcy Code</font></u>:&#160; Title 11 of the United States Code, entitled &#147;Bankruptcy&#148;,
as now or hereafter in effect, or any successor thereto or any other present or
future bankruptcy or insolvency statute.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Beach Club CA</font></u>:&#160; As defined in the Condominium Documents.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bond</font></u>:&#160; A payment and performance bond, in a form
approved by Lender, with the General Contractor or Subcontractor (as
applicable), as principal, and a surety company acceptable to Lender and
licensed to do business in the State, as surety, with a dual obligee rider in
favor of Lender.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower</font></u>:&#160; As defined in the opening paragraph of this
Agreement.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Breakage Costs</font></u>:&#160; As defined in <u>Section 5.1(g)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Budget Line
Item(s)</font></u>:&#160; As defined in
<u>Section 11.2(a)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Business Day</font></u>:&#160; Any day other than a Saturday, Sunday or day
on which banks are required or authorized to be closed in New York, New York,
or Honolulu, Hawaii.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certificate of
Occupancy</font></u>:&#160; A temporary
or permanent certificate issued by the appropriate Governmental Authority
certifying that a Unit or Units, as constructed, may be legally occupied.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Change Order</font></u>:&#160; Any change in the Plans and Specifications
(other than minor field changes involving no extra cost).</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Completion Date</font></u>:
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Initial Maturity Date.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Completion
Guaranty</font></u>:&#160; The
Completion Guaranty, dated as of the date hereof, by Guarantor in favor of
Lender.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Condominium Act</font></u>:&#160; Means Chapter 514A, Hawaii Revised Statutes,
as amended.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Condominium
Declaration</font></u>:&#160; The
condominium declaration creating the Residential Condominium.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Condominium
Documents</font></u>:&#160; All
documents, as required by the Condominium Act and otherwise, relating to the
submission of the Condominium Project and the Units to be located on the two
fee simple parcels, Tax map Key Nos. (2) 4-2-4-28 and 29 to the provisions of
said </p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Condominium
Act or to the regulation, operation, administration or sale thereof after such
submission, including, but not limited to, a declaration of condominium,
offering circular, articles of incorporation, if applicable, by-laws and rules
and regulations of a condominium association, management agreement, plats and
the contracts of sale and deed forms to be used in connection with the sale of
Units.</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Condominium
Opinion</font></u>:&#160; As defined in
Section 14.1(l).</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Condominium
Deposit Account</font></u>:&#160; A
deposit account opened and maintained by Borrower with First American Title
Insurance Company, to be utilized in the manner set forth in <u>Section 15.1(b)</u>
hereof.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Condominium
Project</font></u>: Means the &#147;Kapalua Bay Condominium&#148; project, created
by the Declaration of Condominium Property Regime dated April 18, 2006,
recorded in the Bureau of Conveyances of the State of Hawaii as Document No.
2006-083256.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Condominium
Release Payment Account</font></u>:&#160;
A deposit account opened and maintained by Borrower with Depositary
Bank, on behalf of Lender, to be utilized in the manner set forth in <u>Section
15.4(h)</u> hereof.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Construction</font></u>:&#160; The construction of the Improvements in
accordance with the Plans and Specifications.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Construction
Budget</font></u>:&#160; A budget for
the Project, satisfactory to Lender, specifying the categories of all costs and
expenses to be incurred by Borrower in connection with the Project prior to the
completion of the Construction, including Hard Costs and Soft Costs, together
with the changes or modifications thereto hereafter made by Borrower with
Lender&#146;s prior written approval.&#160; The
Construction Budget in effect as of the date hereof, which has been reviewed
and approved by Lender, is annexed hereto as <u>Exhibit G</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Construction
Commencement Date</font></u>:&#160;
Means October 31, 2006.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Construction
Contracts</font></u>:&#160; All
contracts between General Contractor and third parties for the design,
engineering and construction of the Project.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Construction
Contracts Effectiveness Schedule</font></u>:</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 36.0pt 12.0pt 108.0pt;text-align:left;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Construction
Contracts representing 55% of all costs anticipated in the General Contract
shall be binding and in effect by no later than the Construction Commencement
Date, inclusive of all Construction Contracts for steel/reinforcing, site work,
mechanical work, framing and drywall, electrical, formwork, tile and flooring,
finished carpentry, and elevators.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 36.0pt 12.0pt 108.0pt;text-align:left;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Construction
Contracts representing 85% of all costs anticipated in the General Contract
shall be binding and in effect by no later than December 31, 2006.</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 36.0pt 12.0pt 108.0pt;text-align:left;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Construction
Contracts representing 100% of all costs anticipated in the General Contract
shall be in effect by no later than February 28, 2007.</p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The foregoing
schedule shall not include those Construction Contracts related to the Spa
Improvements.&#160; Construction Contracts for
the Spa Improvements shall be in effect by no later than August 1, 2007.</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Construction
Schedule</font></u>:&#160; A schedule, reasonably
satisfactory to Lender, establishing a timetable for completion of the
Construction, showing, on a monthly basis, the anticipated progress of the
Construction, and confirming that the Improvements can be completed on or
before the Completion Date, as same may be amended from time to time, subject
to Lender&#146;s approval.&#160;&#160; The initial
approved Construction Schedule is attached hereto as <u>Exhibit H</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contingency
Reserve</font></u>:&#160; As defined in
<u>Section 11.3</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contract Deposit</font></u>:&#160; A deposit (including a reservation deposit)
or down payment under a Contract of Sale.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contract of Sale</font></u>:&#160; An executed contract of purchase and sale
pursuant to which Borrower agrees to sell any Unit (or any part thereof,
including interval, fractional ownership interests) (collectively, &#147;<u>Contracts
of Sale</u>&#148;).</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Control</font></u>:&#160; As such term is used with respect to any
Person, including the correlative meanings of the terms &#147;controlled by&#148; and &#147;under
common control with&#148;, the possession, directly or indirectly, of the power to
direct or cause the direction of the management policies of such Person,
whether through the ownership of voting securities, by contract or otherwise.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Debt</font></u>:&#160; The outstanding principal balance of the Note
from time to time, together with all accrued and unpaid interest thereon, and
all other sums now or hereafter due under the Loan Documents.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Default or default</font></u>:&#160; Any event, circumstance or condition, which,
if it were to continue uncured, would, with notice or lapse of time or both,
constitute an Event of Default.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Default Rate</font></u>:&#160; A rate per annum equal to five hundred (500)
basis points in excess of the Applicable Rate, but not at any time in excess of
the highest rate permitted by law.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Deficiency Deposit</font></u>:&#160; As such term is defined in <u>Section 12.1</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depositary Bank</font></u>:&#160; Bank of Hawaii or another bank reasonably
acceptable to Lender.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Determination Date</font></u>:&#160; With respect to any Interest Period, the day
which is two (2) LIBOR Business Days prior to the Business Day on which such
Interest Period commences.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Development
Documents</font></u>: As defined in <u>Section 8.1</u></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Development Items</font></u>:
As defined in <u>Section 8.1</u>.</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Development Land</font></u>:&#160; As defined in the Recitals.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Development
Obligations</font></u>:&#160; As
defined in <u>Section 8.1</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Development
Property</font></u>:&#160;
Collectively, the Development Land and the Improvements thereon.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Disclosure Document</font></u>:&#160; As defined in <u>Section 25.6(a)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Effective Date</font></u>:&#160; The date hereof.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Engineers</font></u>:&#160; Any electrical, civil, structural,
mechanical, plumbing and other engineers engaged by Borrower to perform
material engineering services for the Project.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Entitlements</font></u>:
A discretionary approval by a Governmental Authority that provides the right
for the Project to proceed with the permitting and construction process.&#160; The Entitlements for the project are: the
Special Management Area Use Permit, Shoreline Setback Variance and Planned
Development Approval.&#160; Entitlements
provide evidence that Project is in substantial compliance with zoning and
land-use law, and that Borrower has a legal right to construct the Project
subject to applicable law and the conditions of the Entitlements.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Environmental
Indemnity</font></u>:&#160; The
Environmental Indemnity dated as of the date hereof by Borrower and Guarantors
in favor of Lender.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Environmental
Proceedings</font></u>: Any environmental proceedings, whether civil
(including actions by private parties), criminal, or administrative
proceedings, relating to the Project.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Environmental
Report</font></u>:&#160; An
environmental report prepared at Borrower&#146;s expense by an environmental
consultant approved by Lender, dated not more than six (6) months prior to the
Effective Date and addressed to Lender (or subject to a separate &#147;reliance
letter&#148;).</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Equity Requirement</font></u>:&#160; The requirement that Borrower contribute One Hundred Thirty
One Million Two Hundred Sixty Thousand and 00/100 Dollars ($131,260,000.00)
of equity to the Project, which shall be contributed pursuant to Sections 9.1
and 13.1.&#160; The Equity Requirement shall
not include equity provided by Borrower to keep the Loan In Balance, the
Contingency Reserve, or sums provided by any Guarantor under the Completion
Guaranty.&#160; The Equity Requirement
calculation does, however, include certain contributions made by Borrower prior
to the Effective Date and more particularly set forth on Schedule D hereto.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ER Purchase
Agreement</font></u>:&#160; As defined
in <u>Section 8.1</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ERISA</font></u>:&#160; The Employee Retirement Income Security Act
of 1974, as amended, and the regulations promulgated thereunder from time to
time.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Event of Default</font></u>:&#160; As such term is defined in <u>Article XX</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exchange Act</font></u>:&#160; As defined in <u>Section 25.6(a)</u>.</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exclusive Resorts</font></u>:&#160; Shall mean Exclusive Resorts, LLC, a Delaware
limited liability company.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Extension Notice</font></u>:&#160; As defined in Section 4.3(b)(i).</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Extension Period</font></u>:&#160; As defined in Section 4.3(b).</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facility</font></u>:&#160; Shall mean each of (i) the Spa and Borrower&#146;s
leasehold interest in the Spa Land; (ii) the Beach Club CA; and (iii) the
Kapalua General Store (collectively, the &#147;Facilities&#148;).</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Federal Funds
Effective Rate</font></u>:&#160; Shall
mean, for any day, the rate per annum (rounded upward to the nearest one
one-hundredth of one percent (1/100 of 1%)) announced by the Federal Reserve
Bank of New York on such day as being the weighted average of the rates on
overnight federal funds transactions arranged by federal funds brokers on the
previous trading day, as computed and announced by such Federal Reserve Bank in
substantially the same manner as such Federal Reserve Bank computes and
announces the weighted average it refers to as the &#147;Federal Funds Effective
Rate.&#148;</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">FIRREA</font></u>:&#160; The Financial Institutions Reform, Recovery
And Enforcement Act of 1989, as amended from time to time.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Fitch</font></u></b></font>:&#160; Fitch, Inc.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Force Majeure
Delays</font></u>:&#160; Delays due to
strike, governmental restrictions, unavailability or shortage of labor and/or
materials, enemy or terrorist action, hurricane, civil commotion, fire or other
causes beyond the control of Borrower, provided, however, that (i) the
aggregate of all such time periods shall not exceed one hundred fifty (150)
days, and an additional one hundred twenty (120) days permitted with respect to
a tropical storm or hurricane and (ii) neither the failure of Borrower to qualify
for an advance hereunder nor the lack of Borrower&#146;s own funds shall constitute
a Force Majeure Delay.&#160; In no event shall
Force Majeure Delays be deemed to extend the Completion Date beyond the Initial
Maturity Date of the Loan.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fractional
Interest</font></u>:&#160; Means a
fraction of ownership interest in a Fractional Ownership Unit and the
corresponding use rights associated therewith.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fractional
Ownership Act</font></u>:&#160; Means
Chapter 514E, Hawaii Revised Statutes, as amended.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fractional
Ownership Declaration</font></u>:&#160;
Means The Kapalua Bay Vacation Ownership Project Declaration of
Covenants, Conditions and Restrictions creating the Fractional Ownership Units.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fractional
Ownership Documents</font></u>:&#160;
Means all documents, as required by the Fractional Ownership Act
relating to the registration of the Fractional Ownership Units and to the
regulations, operation and administration or sale thereof after such
registration, including, but not limited to, a disclosure statement,
declaration of covenants, conditions and restrictions, contract with the plan
manager, articles of incorporation and by-laws of the fractional
ownership association, rules and regulations for the fractional ownership plan,
and form of sales contract and apartment deed to be used in connection with the
sale of the Fractional Ownership Units.</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fractional
Ownership Units</font></u>:&#160; Means
the 62 fractional ownership units operated as a &#147;Ritz-Carlton Club&#148; to be sold
in 1/12 intervals identified in the Condominium Documents as &#147;Club Units&#148; which
have been submitted to a timeshare plan pursuant to the Fractional Ownership
Act, together with the undivided percentage ownership interests in the common
elements of the condominium project.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">General Contract</font></u>:&#160; A guaranteed maximum price general contract,
between Borrower and General Contractor, for the construction of the
Improvements, in such form as Lender shall approve in its sole discretion, as
same may be amended from time to time.&#160;
Such general contract shall require completion of the Improvements prior
to the Completion Date.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">General Contractor</font></u>:&#160; Nordic/PCL Construction or such other
licensed, reputable general contractor as Borrower selects and Lender, acting
reasonably, approves.&#160; In making the
determination as to whether to approve a general contractor other than
Nordic/PCL Construction, Lender may take into account any prior dealings it or
its co-lenders may have had with such proposed general contractor.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Governmental
Approvals</font></u>:&#160; All
consents, licenses, permits, and other authorizations or approvals required
from any Governmental Authority for the Construction, including, without
limitation, the Entitlements and Permits.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Governmental
Authority</font></u>:&#160; Any
federal, state, county or municipal governmental authority, agency, department,
commission, board, bureau or instrumentality having jurisdiction over the
Project.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Gross Sales Price</font></u>:&#160; The purchase price for
each Unit, as well as special assessments (including any items contained in the
Construction Budget referenced as &#147;Hospitality Start-Up Recovery&#148;), amounts
allocable to personal property, and&#160; all amounts
paid for extras and the like.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ground Lease</font></u>:&#160; Means that certain Ground Lease dated August
31, 2004, by and between Maui Land &amp; Pineapple Company, Inc., a Hawaii
corporation, as ground lessor, and Borrower, as ground lessee, as amended by
the Ground Lessor Consent, Estoppel Certificate and Amendment.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ground Lessor
Consent, Estoppel Certificate and Amendment</font></u>: Means that
certain Ground Lessor Consent, Estoppel Certificate and Amendment dated as of
the date hereof by and among Maui Land &amp; Pineapple Company, Inc, as ground
lessor under the Ground Lease, Borrower, as ground lessee, and Lender.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Guarantor</font></u>:&#160; Each of Maui Land &amp; Pineapple Company,
Inc., a Hawaii corporation; The Ritz-Carlton Development Company, Inc., a
Delaware corporation; and Exclusive Resorts Development Company, LLC, a
Delaware limited liability company, severally.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hard Costs</font></u>:&#160; All costs for labor, materials or equipment
supplied to or incorporated in the Project.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hazardous Material</font></u>:&#160; Any hazardous or toxic material, substance or
waste (including, without limitation, gasoline, petroleum, asbestos-containing
materials and radioactive materials)</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">which
is regulated under any Law of any Governmental Authority, including: (i) any &#147;hazardous
substance&#148; as defined in the Comprehensive Environmental Response, Compensation
and Liability Act, 42 U.S.C.A. &#167; 9601(14), or any so called &#147;superfund&#148; or &#147;superlien&#148;
Law, including the judicial interpretation thereof; (ii) any &#147;pollutant or
contaminant&#148; as defined in 42 U.S.C.A. &#167; 9601(33); (iii) any material now
defined as &#147;hazardous waste&#148; pursuant to 40 C.F.R. Part 260; (iv) any
petroleum, including crude oil or any fraction thereof; (v) natural gas,
natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel;
(vi) any &#147;hazardous chemical&#148; as defined pursuant to 29 C.F.R. Part 1910;
and&#160; (vii) any other toxic substance or
contaminant that is subject to any other Law or other past or present
requirement of any Governmental Authority.</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Improvements</font></u>:&#160; Improvements for the Project as more particularly
described in the Plans and Specifications, which consist generally of a mixed
use condominium development consisting of (i) 84 (unbranded) whole ownership
Residential Condominium Units (28 of which shall be purchased by Exclusive
Resorts, its Affiliates and their permitted assigns), (ii) 62 fractional
ownership units operated as a &#147;Ritz-Carlton Club&#148; to be sold in 1/12 intervals
under a fractional ownership plan in accordance with the Fractional Ownership
Act, (iii) the Facilities and improvements and amenities contemplated to be
located thereon, and (iv) certain additional common facilities, amenities,
appurtenances, fixtures, equipment, entry and exit areas, parking areas and
other areas for the benefit of the Condominium Project, including the Fractional
Ownership Units.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">In Balance</font></u>:&#160; As defined in <u>Section 12.1</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indemnified Party</font></u>:&#160; As defined in <u>Section 16.1(v)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Independent
Director</font></u>:&#160; As defined
in <u>Section 16.3(p)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Initial Advance</font></u>:&#160; Forty Million One Hundred Twenty-Nine
Thousand One Hundred Forty-Five and 76/100 Dollars ($40,129,145.76).</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Initial Equity
Requirement</font></u>:&#160; The
requirement, as a condition to the disbursement of the Initial Advance, that
Borrower contribute $54,194,781 of
equity to the Project.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Initial Maturity
Date</font></u>:&#160; August 1, 2009,
or such earlier date on which the final payment of the principal of the Note
becomes due and payable as therein or herein provided, whether at such stated
maturity date, by acceleration or otherwise.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Institutional Lender</font></u></b></font><font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><font color="black" style="font-weight:normal;text-decoration:none;">:</font></b></font>&#160;
Shall mean any one or more of the following other entities, provided
that for any such other entity to qualify as an Institutional Lender hereunder,
such other entity, together with its affiliates, must have total assets of at
least One Billion and 00/100 Dollars ($1,000,000,000.00) and stockholders&#146;
equity or net worth of at least Two Hundred Fifty Million and 00/100 Dollars
($250,000,000.00) (or, in either case, the equivalent thereof in a foreign
currency) as of the date the loan is made: a savings bank, a savings and loan
association, a commercial bank or trust company, an insurance company subject
to regulation by any governmental authority or body, a real estate investment
trust, a union, a governmental or secular employees&#146; welfare, benefit, pension
or retirement fund, a pension fund property unit trust (whether authorized or
unauthorized), an investment company or trust, a merchant or investment</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">bank or
any other entity generally viewed as an institutional lender.&#160; In each of the foregoing cases, such
affiliate or other entity shall constitute an Institutional Lender whether (1)
acting for itself or (2) as trustee, as a general partner of a partnership, in
a fiduciary, management or advisory capacity or, in the case of a bank, as
agent bank, for any number of lenders, so long as in the case of <u>clause (2)</u>
the day-to-day management decisions relating to the loan are either exercised
by or recommended by such Institutional Lender and, during the life of the
loan, such Institutional Lender shall only be removed from its <u>clause (2)</u>.&#160; Notwithstanding the first sentence of this
paragraph, a real estate investment trust that invests primarily in mortgage
loans and investment securities, is taxed as a real estate investment trust
and, if unaffiliated, has total assets of at least&#160; Six Hundred Fifty Million and 00/100 Dollars
($650,000,000.00) and a net worth of at least One Hundred Million and 00/100
Dollars ($100,000,000.00), shall qualify as an Institutional Lender despite its
failure to meet the total asset and net worth tests set forth in such first
sentence.</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Insurance Escrow
Fund</font></u>:&#160; As defined in <u>Section
16.1(m)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Insurance Premiums</font></u>:&#160; As defined in <u>Section 16.2(b)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interest Period</font></u>:&#160; A period of 30, 60, 90 or 180 days, to the
extent deposits with such maturities are available to Lender, commencing on a
LIBOR Business Day as selected by Borrower in accordance with Section 5.1(c);
provided, however, that (i) any Interest Period that would otherwise end on a
day that is not a LIBOR Business Day shall continue to and end on the next
succeeding LIBOR Business Day, unless the result would be that such LIBOR Rate
Interest Period would be extended to the next succeeding calendar month, in
which case such LIBOR Rate Interest Period shall end on the next preceding
LIBOR Business Day, and (ii) no Interest Period may extend beyond the Maturity
Date.&#160; The initial Interest Period shall
commence on the date hereof and end on July 31, 2006, and the last Interest
Period shall commence on the day following the expiration of the last full
calendar month occurring during the term of the Loan and end on the Maturity
Date.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interest Reserve</font></u>:&#160; As defined in <u>Section 11.4</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Internal Revenue
Code</font></u>:&#160; The Internal
Revenue Code of 1986, as amended from time to time.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Issued
Entitlements</font></u>:&#160; Shall be
defined as the Special Management Area Use Permit, Shoreline Setback Variance
and Planned Development Approval which provide the right to construct the
Project.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kapalua General
Store</font></u>:&#160; As defined in
the Condominium Documents.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Keep Whole Letters</font></u>:
Those certain &#147;Keep Whole Letters&#148; by each of ML&amp;P, Exclusive Resorts and
MII, respectively, each dated the date hereof concerning the funding of their
respective Affiliates in order to meet their funding requirements under the
Guaranties contemplated hereunder and to enable such Affiliates to comply with
their equity obligations under the Limited Liability Operating Agreement of
Member.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Land</font></u>:&#160; As such term is defined in the Recitals to
this Agreement.</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Laws:</font></u>&#160; All federal, state and local laws, statutes,
codes, ordinances, orders, rules and regulations.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Leases</font></u>:&#160; All leases, licenses and occupancy agreements
(including any licenses for parking spaces or storage spaces) affecting the
Project or any part thereof now or hereafter existing.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lehman</font></u>:&#160; As defined in <u>Section 25.6(b)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lehman Group</font></u>:&#160; As defined in <u>Section 25.6(b)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lender</font></u>:&#160; As defined in the opening paragraph of this
Agreement.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lender&#146;s
Consultant</font></u>:&#160; An
independent consulting architect, inspector, and/or engineer designated by
Lender in Lender&#146;s sole discretion.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Liabilities</font></u>:&#160; As defined in <u>Section 25.6(b)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">LIBOR Business Day</font></u>:&#160; A Business Day on which dealings in U.S.
dollars are conducted in the London interbank market.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">LIBOR Rate</font></u>:&#160; For any Interest Period, the rate (expressed
as a percentage per annum and rounded upward, if necessary, to the next nearest
1/1000 of 1%) for deposits in U.S. dollars, for a one-month period, that
appears on Telerate Page 3750 (or the successor thereto) as of 11:00 a.m.,
London time, on the related Determination Date.&#160;
If such rate does not appear on Telerate Page 3750 as of 11:00 a.m.,
London time, on such Determination Date, LIBOR shall be the arithmetic mean of
the offered rates (expressed as a percentage per annum) for deposits in U.S.
dollars for the number of days of the applicable Interest Period that appear on
the Reuters Screen Libor Page as of 11:00 a.m., London time, on such
Determination Date, if at least two such offered rates so appear.&#160; If fewer than two such offered rates appear
on the Reuters Screen Libor Page as of 11:00 a.m., London time, on such
Determination Date, Lender shall request the principal London office of any
four major reference banks in the London interbank market selected by Lender to
provide such bank&#146;s offered quotation (expressed as a percentage per annum) to
prime banks in the London interbank market for deposits in U.S. dollars for the
number of days of the applicable Interest Period as of 11:00 a.m., London time,
on such Determination Date for the amounts of not less than U.S.
$1,000,000.00.&#160; If at least two such
offered quotations are so provided, LIBOR shall be the arithmetic mean of such
quotations.&#160; If fewer than two such
quotations are so provided, Lender shall request any three major banks in New
York City selected by Lender to provide such bank&#146;s rate (expressed as a
percentage per annum) for loans in U.S. dollars to leading European banks for
the number of days of the applicable Interest Period as of approximately 11:00
a.m., New York City time on the applicable Determination Date for amounts of
not less than U.S. $1,000,000.00.&#160; If at
least two such rates are so provided, LIBOR shall be the arithmetic mean of
such rates.&#160; LIBOR shall be determined by
Lender, which determination shall be binding and conclusive absent manifest
error.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lien</font></u>:&#160; shall mean any mortgage, deed of trust, lien,
pledge, hypothecation, assignment, security interest, or any other encumbrance,
charge or transfer of, on or affecting the Property, or any portion thereof, or
Borrower, including, without limitation, any conditional sale or other title</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">retention
agreement, any financing lease having substantially the same economic effect as
any of the foregoing, the filing of any financing statement, and mechanic&#146;s,
materialmen&#146;s and other similar liens and encumbrances against the Project or
any portion thereof or Borrower.</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Loan</font></u>:&#160; As defined in the Recitals to this Agreement.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Loan Fee</font></u>:&#160; As defined in <u>Section 4.1(f).</u></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Loan Documents</font></u>:&#160; Collectively, this Agreement, the documents
and instruments listed in <u>Section 4.2</u> and all other documents and
instruments entered into by Borrower and/or Guarantor from time to time which
evidence or secure the Debt.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Loan-to-Value
Ratio</font></u><b>:&#160; </b>The ratio obtained by dividing the outstanding principal balance due on
the Loan by the fair market value of the Project, as determined by an
Appraisal.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Major Contract</font></u>:&#160; A Construction Contract which provides for a
contract price equal to or greater than Two Million Five Hundred Thousand and
00/100 Dollars ($2,500,000.00).</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Marketing
Agreements</font></u>:&#160;
Collectively, (i) Marketing and Sales Services Agreement, dated August
31, 2004, between Borrower and Ritz-Carlton; (ii) Marketing and Sales Services
Agreement, dated June&nbsp;19, 2006, by and between Borrower, Ritz-Carlton and
ML&amp;P; and (iii) Marketing and Sales Services Agreement, dated June&nbsp;19,
2006, by and between Borrower and Kapalua Realty Company, Ltd., a Hawaii
corporation.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Material Adverse
Change or material adverse change</font></u>:&#160; If, in Lender&#146;s reasonable determination, the
business prospects, operations or financial condition of a Person or property
has changed in a manner which actually impairs the value of Lender&#146;s security
for the Loan, prevent timely repayment of the Loan or otherwise prevent the
applicable Person from timely performing any of its obligations under the Loan
Documents.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Maturity Date</font></u>:&#160; The Initial Maturity Date; <u>provided</u>, <u>however</u>,
that if Borrower exercises its right to extend the term of the Loan for the
Extension Period and, in accordance with the terms of this Agreement, the term
of the Loan is so extended, from and after such extension of the term of the
Loan &#147;Maturity Date&#148; shall mean the first day of the twelfth (12<font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>) month following the Initial Maturity
Date (the &#147;<u>First Extension Maturity Date</u>&#148;), the first day of the twelfth
(12<font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>) month
following the First Extension Maturity Date (the &#147;<u>Second Extension Maturity
Date</u>&#148;), as the case may be, or such earlier date on which the final payment
of principal of the Note becomes due and payable as therein or herein provided,
whether at such stated maturity date, by acceleration, or otherwise.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Member</font></u>:&#160; Kapalua Bay Holdings, LLC, a Delaware limited
liability company.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">MII</font></u>:&#160; Marriot International, Inc., a Delaware
corporation.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ML&amp;P</font></u>:&#160; Maui Land &amp; Pineapple Company, Inc., a
Hawaii corporation.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ML&amp;P
Agreements</font></u>:&#160;
Collectively, that certain: (i) Agreement of Purchase and Sale dated as
of June 19, 2006, between Borrower and ML&amp;P (the &#147;<u>Spa Agreement</u>&#148;)
for the purchase by</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ML&amp;P
of the Spa Land and Spa; (ii) Agreement of Purchase and Sale dated as of June
19, 2006, between Borrower and ML&amp;P (the &#147;<u>Beach Club Agreement</u>&#148;) for
the purchase by ML&amp;P of the Beach Club CA (as defined in the Condominium
Documents); and (iii) Agreement of Purchase and Sale dated as of June 19, 2006,
between Borrower and ML&amp;P (the &#147;<u>General Store Agreement</u>&#148;) for the
purchase by ML&amp;P of the Kapalua General Store (as defined in the
Condominium Documents).</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ML&amp;P Consent
Agreement</font></u>:&#160; That
certain Consent to Assignment of Agreements dated as of the date hereof, by ML&amp;P.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Moody&#146;s</font></u>:&#160; Moody&#146;s Investors Service, Inc.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mortgage</font></u>:&#160; The Fee and Leasehold Mortgage, Security
Agreement and Fixture Filing, dated as of the date hereof, by Borrower in favor
of Lender securing the payment of the Debt and constituting a first priority
mortgage lien against the Project.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net Sale Proceeds</font></u>:&#160; In
respect of the sale of a Unit, the Gross Sales Price, less Transaction Costs
and any portion of the Contract Deposit related to a particular Unit that
was&#160; utilized in accordance with
applicable Laws and the Loan Documents to develop the Unit, as determined by
Lender acting reasonably.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Non-Consolidation Opinion</font></u></b></font><font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><font color="black" style="font-weight:normal;text-decoration:none;">:</font></b></font>&#160;
An opinion letter by DLA Piper Rudnick Gray Cary US LLP, dated as of the
Effective Date, in form and substance satisfactory to Lender.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Note</font></u>:&#160; a promissory note, dated as of the date
hereof, by Borrower to the order of Lender, in the principal amount of Three
Hundred Seventy Million and 00/100 Dollars ($370,000,000.00) as may be amended
from time to time.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">OFAC</font></u>:&#160; Office of Foreign Asset Control of the
Department of the Treasury of the United States of America.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Office</font></u>:&#160; Department of Commerce and Consumer Affairs
in Hawaii and the Bureau of Conveyances of the State of Hawaii, as the case may
be.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operating Account</font></u>:&#160; A deposit account opened and maintained by
Borrower with Depositary Bank, on behalf of Lender, to be utilized in the
manner set forth in <u>Section 4.1(g)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Outstanding
Entitlements</font></u>:&#160; As
defined in <u>Section 16.1(a)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Payment Date</font></u>:&#160; The first (1st) day of each calendar month
(or such other day of a calendar month selected by Lender to collect debt
service payments under loans which it makes and securitizes) or, if such day is
not a Business Day, the immediately preceding Business Day.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">PDP:</font></u>&#160; As defined in <u>Section 8.1(i)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Permits</font></u>:&#160; An administrative approval by a government
agency that the Project complies with law and Entitlements, which allow the
Project to proceed with certain specific scopes of</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">work; which includes any
building permit, excavation permit, foundation permit, environmental permit,
utility permit, or other permit required in respect of the Construction or the
Project.</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Permitted
Exceptions</font></u>:&#160; The
matters listed on <u>Exhibit C</u> annexed hereto.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Permitted
Transfers</font></u>:&#160; The
following transfers shall be deemed &#147;Permitted Transfers&#148; and Borrower shall
not be required to obtain Lender&#146;s prior written consent to such transfers: (i)
a transfer made in accordance with the buy-sell provisions of the Member&#146;s
Limited Liability Company Agreement approved by Lender; (ii) a transfer of
direct or indirect interests in Member or in any entity owning a direct or
indirect interest in Member; provided the transferee shall be a MII/MLP
Affiliate; (iii)&nbsp;a transfer of direct or indirect interests in Member or
in any entity owning a direct or indirect interest in Member in connection with
a public offering or a &#147;privatization,&#148; including, without limitation,
interests in ML&amp;P or MII in connection with a publicly traded stock or any
public offering of equity ownership interests; and (iv) a one-time transfer of
the managing member interest in Borrower to an entity that is a MII/MLP
Affiliate or to another Person provided that the other Person&nbsp; has
financial capability and creditworthiness comparable to the financial
capability and creditworthiness of Member, as reasonably determined by Lender
and each Rating Agency (if applicable).&#160;
For purposes hereof, the term &#147;MII/MPL Affiliate&#148; shall mean an entity
in which MII and/or ML&amp;P manages, directly or indirectly, the affairs and
decisions of the MII/MLP Affiliate, including, without limitation, the
day-to-day and major management and operations decisions.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Person:</font></u></b></font>
Any individual, corporation, partnership, joint venture, limited liability
company, estate, trust, unincorporated association, any federal, state, county
or municipal government or any bureau, department or agency thereof and any
fiduciary acting in such capacity on behalf of any of the foregoing.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Personal Property</font></u>:&#160; All personal property, fixtures and equipment
required or beneficial for the operation of the Land or the Improvements.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Plans and
Specifications</font></u>:&#160; The
sets of design plans and specifications for the Project prepared by the
Architect and its consultants that have been reviewed and approved by Lender in
connection with making the Initial Advance, and if and when in effect on which
the Construction Contract is based.&#160; The
term also includes (a) any material modification of any of those plans, maps,
sketches, diagrams, surveys, drawings, specifications or lists of materials
that Lender has previously reviewed and approved if the modification is in
writing and is initialed by the Lender and the Borrower or the Architect, and
(b) any plans, maps, sketches, diagrams, surveys, drawings, specifications or
lists of materials to be utilized for development of the Project that are
created subsequent to the Initial Advance that have been reviewed and approved
by Lender.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pledge of
Accounts, Security Agreement and Rights to Payment</font></u>:&#160; Means that certain Pledge of Accounts,
Security Agreement and Rights to Payment dated as of the date hereof by and
between Borrower, as debtor, and Lender.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Policy</font></u>:&#160; As defined in <u>Section 15.2(b)</u>.</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pre-Development
Costs</font></u>:&#160; The pay off of
existing debt which is secured by the Development Land, pre-development Soft
Costs, Pre-Development Hard Costs, interest expenses, and closing costs
associated with the Loan.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pre-Development
Hard Costs</font></u>:&#160; Hard Costs
that Lender agrees may be funded as a Pre-Development Cost and with respect to
which Borrower has delivered a fully executed copy of the General Contract and
fully executed copies all Construction Contracts required in connection with
such Hard Cost.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prime Rate</font></u>:&#160; The interest rate per annum publicly
announced by Citibank, N.A. in New York City as its base rate, as such rate
shall change from time to time.&#160; If
Citibank, N.A. ceases to announce a base rate, &#147;Prime Rate&#148; shall mean the
interest rate per annum published in the <i>Wall Street Journal</i>
from time to time as the &#147;Prime Rate&#148;.&#160;
If more than one &#147;Prime Rate&#148; is published in the <i>Wall Street
Journal</i> for a day, the average of such &#147;Prime Rates&#148; shall be used,
and such average shall be rounded up to&#160;
the nearest one-eighth of one percent (0.125%).&#160; If the <i>Wall Street Journal</i>
ceases to publish a &#147;Prime Rate&#148;, Lender shall select an equivalent publication
that publishes a &#147;Prime Rate&#148;, and if a &#147;Prime Rate&#148; is no longer generally
published or are limited, regulated or administered by a governmental or
quasi-governmental body, then Lender shall select a comparable interest rate
index.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prime Rate Margin</font></u>:&#160; In respect of each portion of the Loan
bearing interest at an Adjusted Prime Rate, the difference (expressed as the
number of basis points) between (a) the Adjusted LIBOR Rate on the date the
Adjusted LIBOR Rate was last applicable to such portion of the Loan and (b) the
Prime Rate on the date that the Adjusted LIBOR Rate was last applicable to the Loan.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Proceeding</font></u>:&#160; As defined in <u>Section 22.11</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Proceeds</font></u>:&#160; As defined in <u>Section 17.1</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Project</font></u>:&#160; The collective reference to (i) the Land,
(ii) the Facilities, (iii) the Improvements and (iv) the Personal Property,
excluding such portion of the Project that has been released pursuant to the
terms of this Agreement.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Provided
Information</font></u>:&#160; As
defined in <u>Section 25.1</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Public
Report</font></u>:&#160; Condominium
Public Report of Kapalua Bay Condominium prepared by Borrower and designated
Registration No. 5900.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">PUD</font></u>:&#160; As defined in <u>Section 8.1(i)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Qualifying
Contract of Sale</font></u>:&#160; A
legally enforceable Contract of Sale between Borrower and an unaffiliated
third-party purchaser for the sale and purchase of an individual Unit.&#160; Each Qualifying Contract of Sale must (i)
require the payment upon execution of a Contract&#160; Deposit equal to no less than ten percent
(10%) of the Purchase Price, (ii) require the payment of a Gross Sales Price
which will yield Net Sale Proceeds not less the applicable Release Price, (iii)
be expressly subordinate to the lien of the Mortgage, (iv) comply with the
requirements of <u>Section 15.1(a)</u> hereof, (v) comply with all Laws and
(vi) be subject to no contingencies, so that, other</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">than by
reason of a default by Borrower thereunder, the purchaser thereunder may not
rescind the same without forfeiting its Contract Deposit.&#160; A Qualifying Contract of Sale may be assigned
by such a purchaser to a third-party purchaser who is not an Affiliate of
Borrower, Guarantor, Member, ML&amp;P, MII , an MLP/MII Affiliate or otherwise
under the Control of any such entity.</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Rating </font></u></b></font><u>Agencies</u>:&#160; Each of S&amp;P, Moody&#146;s and Fitch or any
other nationally recognized statistical rating agency which has been approved
by Lender.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Recourse Guaranty</font></u>:&#160; The Guaranty, dated as of the date hereof, by
Guarantor in favor of Lender, pursuant to which Guarantor guarantees to Lender
the payment of the Recourse Obligations.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Recourse
Obligations</font></u>:&#160; As
defined in the Note.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registration
Statement</font></u>:&#160; As defined
in <u>Section 25.6(b)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Related Parties</font></u>:&#160; As defined in <u>Section 16.3(d)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Release Payment</font></u>:&#160; Any payment required to be made under <u>Section
15.4(h)</u> or <u>Section&nbsp;15.5(e)</u> (such payments shall collectively be
referred to as &#147;<u>Release Payments</u>&#148;).</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Release Price</font></u>:&#160; In respect of each Unit and each Facility,
the amount set forth on <u>Schedule A</u> attached hereto.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Requisition</font></u>:&#160; A requisition, in the form of <u>Exhibit D</u>
annexed hereto, for disbursement of a portion of the Loan.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Reserve Percentage</font></u>:&#160; For any Interest Period, that percentage
which is specified on the Determination Date by the Board of Governors of the
Federal Reserve System (or any successor) or any other governmental authority
with jurisdiction over Lender for determining the maximum reserve requirement
(including, but not limited to, any marginal reserve requirement) for the
holder of the Note with respect to liabilities constituting or including
Eurocurrency liabilities in an amount equal to that portion of the Loan
affected by such Interest Period and with a maturity equal to such Interest
Period.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Residential
Condominium</font></u>:&#160; As
defined in <u>Section 15.2(a)</u>.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Residential
Condominium Unit</font></u>:&#160; Each
individual condominium unit (including, but not limited to, any appurtenant
interest in the common elements) in the Residential&#160; Property created by the submission thereof to
the provisions of the Condominium Act (all such condominium units shall be
referred to collectively as the &#147;<u>Residential Condominium Units</u>&#148;).</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Residential
Property</font></u>:&#160; That portion
of the Development Land designated in the&#160;
Plans and Specifications for the Residential Condominium and the
Improvements to be constructed thereon.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:left;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ritz-Carlton</font></u>:&#160; The Ritz-Carlton Development Company, Inc., a
Delaware corporation.</p>


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<p style="margin:0pt 0pt .0001pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ritz-Carlton Consent Agreement</font></u>:&#160; That certain Consent to Assignment of
Agreements dated as of the date hereof, by Ritz-Carlton.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">S&amp;P</font></u></b></font><font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><font color="black" style="font-weight:normal;text-decoration:none;">:</font></b></font>&#160;
Standard &amp; Poor&#146;s Ratings Group, a division of McGraw-Hill, Inc.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Securities</font></u>:&#160; As defined in <u>Section 25.1</u>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Securities Act</font></u>:&#160; As defined in <u>Section 25.6(a)</u>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Securitization</font></u>:&#160; As defined in <u>Section 25.1</u>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Servicer</font></u>:&#160; As defined in <u>Section 19.1</u>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Servicing Agreement</font></u>:&#160; As defined in <u>Section 19.1</u>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Servicing Fees</font></u>:&#160; As defined in <u>Section 19.1</u>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Soft Costs</font></u>:&#160; All costs, other than Hard Costs, to be
incurred in respect of the Project prior to completion of Construction,
including, without limitation, sales and marketing costs and expenses,
architects&#146; fees, engineers&#146; fees, interest on the Note, real estate taxes,
insurance premiums and bond fees.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Spa</font></u>: &#160;The improvements and amenities intended to be
constructed on the Spa Land.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Spa Land</font></u>:&#160; As such term is defined in the Recitals to
this Agreement.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">SPC Party</font></u>:&#160; As defined in <u>Section 16.3(o)</u>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Standard Consent</font></u>: &#160;means a consent that Borrower is required to
receive from Lender in the Loan Documents but that relate strictly to de
minimis matters that are operational in nature and not material to the Project
(examples of matters that would be too material for application of a &#147;deemed
consent&#148; include among, among other things,&#160;
matters that would effect: the Budget, completion by the Completion
Date, insurance coverage or settlement, eminent domain, the Ground Lease, the
Development Documents, environmental matters, zoning or other land use
entitlement, or rights of purchasers under Contracts of Sale that could lead to
a right of rescission or other action concerning same).</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">State</font></u>:&#160; The State of Hawaii.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subordinate Loan</font></u>:&#160; As defined in <u>Section 25.5</u>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subcontractor</font></u>:&#160; Any party furnishing labor, services or materials
to the Project under a Construction Contract.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tax Escrow Fund</font></u>:&#160; As defined in <u>Section 16.1(m)</u>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tax and Insurance Escrow Fund</font></u>:&#160; As defined in <u>Section 16.1(m)</u>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tax and Insurance Reserve</font></u>:&#160; As defined in <u>Section 11.5</u>.</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title Insurer</font></u>:&#160; First American Title Insurance Company and
Fidelity Title Insurance Company.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title Policy</font></u>:&#160; An ALTA Mortgagee&#146;s Loan Title Insurance
Policy, issued by Title Insurer, insuring the first lien priority of the
Mortgage, subject only to the Permitted Exceptions, and otherwise in form
satisfactory to Lender.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Transaction
Costs</font></u>:&#160; Out-of-pocket
costs payable by Borrower in respect of a sale of a Unit or Fractional
Interest, including brokerage fees, sales commissions, royalty fees, any fees
payable to Ritz-Carlton (excluding if payable to Ritz-Carlton any items
contained in the Construction Budget referenced as &#147;Hospitality Start-Up
Recovery&#148;), any fees payable to Kapalua Realty Company, Ltd., membership
deposits for the Kapalua Club payable to Kapalua Land Company, Ltd. (all such fees
paid to Affiliates as expressly provided in the Affiliate Agreements referenced
in Schedule B and as in effect as of the date hereof), and customary closing
costs (whether customarily payable by either seller or purchaser) not to exceed
in the aggregate two percent of the Gross Sales Price of the Unit or Fractional
Interest, and other costs approved by Lender.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Transfer</font></u>:&#160; Any sale, transfer, lease, conveyance,
alienation, pledge, assignment, mortgage, encumbrance, hypothecation or other
disposition of (i) all or any portion of the Project, (ii) all or any portion
of Borrower&#146;s right, title and interest (legal or equitable) in and to the
Project or (iii) any interest in Borrower or any Controlling interest in any
member in Borrower and which is not a Permitted Transfer.&#160; Notwithstanding the foregoing, the sale of
any Unit or Facility in accordance with the terms of <u>Article XV</u> hereof
shall not constitute Transfers hereunder.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Underwriter Group</font></u>:&#160; As defined in <u>Section 25.6(b)</u>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unit</font></u>:&#160; Any individual condominium unit created at
the Project, including, without limitation, Residential Condominium Unit or
Fractional Ownership Unit (all such condominium units shall collectively be
referred to as the &#147;<u>Units</u>&#148;).</p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE III<br>
REPRESENTATIONS AND WARRANTIES</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Representations and Warranties</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To induce Lender to execute this Agreement and perform
its obligations hereunder, Borrower hereby represents and warrants to Lender as
of the Effective Date (and as of each date of a Requisition and disbursement,
with updates of such facts and circumstances that are reasonably necessary to
include in such Requisition to render the representations set forth therein
true and correct in all material respects) as follows:</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Borrower has good and
marketable fee simple title to the Development Land free and clear of all
liens, encumbrances and charges whatsoever, except for the Permitted
Exceptions.&#160; Borrower has the right to
mortgage, grant, bargain, sell, pledge, assign, warrant, transfer and convey
the Development Land.</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; Borrower has good and
marketable leasehold title to the Spa Land, pursuant to the Ground Lease, free
and clear of all liens, encumbrances and changes whatsoever, except for the
Permitted Exceptions. Borrower has the right to mortgage its leasehold estate
in the Spa Land.&#160; The certified copy of
the Ground Lease provided to Lender by Borrower is true, correct and complete
in all respects.&#160; The Ground Lease is in
full force and effect and has not been amended, except as amended by the Ground
Lessor Consent, Estoppel Certificate and Amendment.&#160; All rents, additional rents and other sums
due and payable under the Ground Lease have been paid in full.&#160; Neither Borrower, as ground lessee under the
Ground Lease, nor ground lessor under the Ground Lease has received or given
any notice of a default under the Ground Lease which has not been cured.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Except as otherwise
disclosed in writing by Borrower to Lender, no material litigation or
proceedings are pending, or, to the best of Borrower&#146;s knowledge, threatened,
against Borrower, Guarantor, Member or the Project or any portion thereof.&#160; There are no pending, or, to Borrower&#146;s
knowledge, threatened, Environmental Proceedings in respect of the Project or
any portion thereof.&#160; Neither Borrower
nor Member has ever been party to any lawsuit, arbitration, summons or legal
proceeding.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; Borrower, Guarantor and
Member have or will upon request provide Lender and S&amp;P with complete
financial statements that reflect a fair and accurate view of their respective
financial conditions.&#160; Borrower has no
contingent liabilities, other than those related to its ownership of the Land
and its preparation for the development of the Project.&#160; Member has no contingent obligations other
than capital funding obligations to Borrower.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; Borrower and Member
complied and will comply in all material respects with the assumptions made
with respect thereto in the Non-Consolidation Opinion;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; Borrower is and always
has been a duly organized and validly existing limited liability company, duly
organized under the laws of the State of Delaware.&#160; Member is and always has been a duly
organized and validly existing limited liability company, duly organized under
the laws of the State of Delaware.&#160;
Borrower has full power and authority to execute, deliver and perform
all Loan Documents to which it is a party, and such execution, delivery and
performance have been duly authorized by all requisite action on the part of
Borrower.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; The Property is not
encumbered or subject to any capital leases, liens or judgments, other than,
with respect to Borrower, liens for real estate taxes which are not yet due.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160; To the best knowledge of
the Borrower and Member, each of Borrower and Member is in compliance with all
Laws applicable to it and has obtained all permits required for it to operate
as a limited liability company.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160; Neither Borrower nor
Member is involved in any dispute with any taxing authority.&#160; Neither Borrower nor Member is in default of
any obligation to pay taxes to any taxing authority.</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160; Borrower has never owned
any property, other than the Land, and has never engaged in any business, other
than the ownership of the Land, operation of the hotel previously located on
the Land, and preparation for the development of the Project.&#160; Member has never owned any property, other
than its interest in Borrower, and has never engaged in any business, other
than business incidental to its ownership of an interest in, and as member of,
Borrower.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160; To the knowledge of
Borrower, no consent, approval or authorization of or declaration, registration
or filing with any Governmental Authority or nongovernmental Person, including
any creditor, partner, or member of Borrower or Guarantor, is required in
connection with the execution, delivery and performance of this Agreement or
any of the Loan Documents, other than such consents, approvals or
authorizations which have been obtained, and the recordation of the Mortgage
and the Assignment of Leases and Rents and the filing of UCC financing
statements.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160; The execution, delivery
and performance of this Agreement, the execution and payment of the Note and
the granting of the Mortgage and other security interests under the other Loan
Documents will not constitute a breach or default under any other agreement to
which Borrower, Member or any Guarantor is a party or may be bound, or a
violation of any law or court order which may affect the Project.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160; To the knowledge of
Borrower, there is no default under this Agreement, any of the other Loan
Documents, or any other document or instrument to which Borrower is bound, nor
any condition which, after notice or the passage of time or both, would
constitute a default or an Event of Default under said documents.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160;&#160;&#160;&#160; [Intentionally Deleted].</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160;&#160;&#160;&#160;&#160; Borrower has no knowledge
of and has not received written notice of any pending or threatened,
condemnation or eminent domain proceedings in respect of the Land or any part
thereof.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160;&#160;&#160;&#160;&#160; As of the date hereof,
the amounts set forth in the Construction Budget represent a full and complete
itemization by category of all costs, expenses and fees which Borrower
reasonably expects to pay or reasonably anticipates becoming obligated to pay
to complete the Construction.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)&#160;&#160;&#160;&#160;&#160; To the knowledge of
Borrower, neither the construction of the Improvements nor the use of the
Project when completed will violate (i) any Laws (including, without
limitation, zoning ordinances, building codes, land use and environmental laws
and laws relating to the disabled) or (ii) any restrictions, covenants or
conditions of record or agreements affecting the Project.&#160; Neither the zoning authorizations, approvals
or variances nor any other right to construct or to use the Project is to any
extent dependent upon or related to any real estate other than the Land.&#160; All Governmental Approvals required for the
Construction in accordance with the Plans and Specifications have been obtained
or will be obtained prior to the commencement of Construction, and, to the
knowledge of Borrower, all Laws relating to the Construction and operation of
the Improvements have been complied</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with.&#160; To the extent such Governmental Approvals
have been issued or obtained, as the date hereof, Borrower has delivered true,
complete and correct copies of same to Lender.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)&#160;&#160;&#160;&#160;&#160;&#160; Except for retainage
amounts, all costs and expenses incurred for any and all labor, materials,
supplies and equipment used in the development of the Project or the
construction or demolition of any improvement on the Land have been paid in
full as of the date hereof or will be paid in full from proceeds of the Loan
following the closing of the Loan.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)&#160;&#160;&#160;&#160;&#160; The Project will have
adequate water, gas and electrical supply, storm and sanitary sewerage
facilities, other required public utilities, fire and police protection, and
means of access between the Project and public streets.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(t)&#160;&#160;&#160;&#160;&#160;&#160; Except as shown on the
Survey submitted to Lender in connection with the Loan, no portion of the
Project and no building or any other portion of the Improvements is located in
an area identified by the Secretary of Housing and Urban Development or any
successor thereto as an area having special flood hazards pursuant to the
National Flood Insurance Act of 1968 or the Flood Disaster Protection Act of
1973, as amended, or any successor law, or, if located within any such area,
Borrower has obtained and will maintain the insurance prescribed in <u>Section
16.2</u> hereof.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(u)&#160;&#160;&#160;&#160;&#160; Borrower has dealt with
no broker or finder in connection with this Agreement or the Loan.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160; All financial statements
and other information previously furnished by both Borrower and Guarantor in
connection with the Loan are true, complete and correct in all material
respects and fairly present the financial conditions of the subjects thereof as
of the respective dates thereof and do not fail to state any material fact
necessary to make such statements or information not misleading, and no
Material Adverse Change with respect to Borrower or Guarantor has occurred
since the respective dates of such statements and information.&#160; Neither Borrower nor Guarantor has any
material liability, contingent or otherwise, not disclosed in such financial
statements.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(w)&#160;&#160;&#160;&#160; Borrower and Guarantor are
solvent, and no bankruptcy, reorganization, insolvency or similar proceeding
under any state or federal law with respect to Borrower or Guarantor or any
Affiliate thereof has been initiated.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)&#160;&#160;&#160;&#160;&#160; Except as disclosed in
the Environmental Report: (i) the Project is free of Hazardous Material and is
in compliance with all Laws; (ii) neither Borrower nor, to the best knowledge
of Borrower, any other Person, has ever caused or permitted any Hazardous
Material to be placed, held, located or disposed of on, under, at or in a
manner to affect the Project and the Project has never been used (whether by
Borrower or, to the best knowledge of Borrower, by any other Person) for any
activities involving, directly or indirectly, the use, generation, treatment,
storage, transportation, or disposal of any Hazardous Material; and (iii) there
are no underground tanks, vessels, or similar facilities for the storage or
containment of Hazardous Materials of any sort on, under or affecting the
Project.</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(y)&#160;&#160;&#160;&#160;&#160; The Development Land and
Spa Land are each taxed separately without regard to any other property and for
all purposes the Development Land and Spa Land may be mortgaged, conveyed and
otherwise dealt with as an independent parcel.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(z)&#160;&#160;&#160;&#160;&#160; There are no Leases,
subleases or other arrangements for occupancy of space within the Project, and
no person or entity has any possessory interest in, or right to occupy, the
Project or any portion thereof, except for the leases and month-to-month rental
agreements listed on <u>Schedule C</u> attached hereto and pursuant to
Qualifying Contracts of Sale entered into after the date hereof.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(aa)&#160;&#160;&#160; Except pursuant to the
ML&amp;P Agreements, the ER Purchase Agreement<i>,</i>
and Qualifying Contracts of Sale that will be entered into after the date
hereof, neither the Project nor any portion thereof is subject to any purchase
option, buy-sell right (except as provided in the limited liability company agreement
of Member), right of first refusal, right of first offer or other similar right
to acquire same.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(bb)&#160;&#160; Upon completion of the
Construction, no building or other improvement will encroach upon any property
line, building line, setback line, side yard line or any recorded or visible
easement.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(cc)&#160;&#160;&#160; The Loan is not being made
for the purpose of purchasing or carrying &#147;margin stock&#148; within the meaning of
Regulation G, T, U or X issued by the Board of Governors of the Federal Reserve
System, and Borrower agrees to execute all instruments necessary to comply with
all the requirements of Regulation U of the Federal Reserve System.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(dd)&#160;&#160; The Loan evidenced by the
Note is solely for the business purpose of Borrower, and is not for personal,
family, household or agricultural purposes.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ee)&#160;&#160;&#160; No portion of the Project
has been or, to the knowledge of Borrower, will be purchased with proceeds of
any illegal activity.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ff)&#160;&#160;&#160;&#160; Borrower is not a party
in interest to any plan defined or regulated under ERISA, and the assets of
Borrower are not &#147;plan assets&#148; of any employee benefit plan covered by ERISA or
Section 4975 of the Internal Revenue Code.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(gg)&#160;&#160; Borrower is not a &#147;foreign
person&#148; within the meaning of Section 1445 or 7701 of the Internal Revenue
Code.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(hh)&#160;&#160; Neither Borrower, Member,
Guarantor nor any Person holding a direct or indirect interest in Borrower is
(or will be) a person with whom Lender is restricted from doing business under
OFAC (including Persons named on OFAC&#146;s Specially Designated and Blocked
Persons list) or under any statute, executive order (including the September
24, 2001, Executive Order Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism), or other
governmental action and is not intentionally or with knowledge, and shall not
intentionally or with knowledge engage in any dealings or transactions or
otherwise be associated with such Persons.&#160;
In addition, Borrower hereby agrees to provide Lender with any
additional information that Lender deems</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">reasonably necessary from time to time in order to ensure compliance
with all Laws concerning money laundering and similar activities.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160; Borrower has disclosed
to Lender all material facts regarding the Project and Borrower and has not
failed to disclose any material fact that could cause any representation or
warranty made herein to be materially misleading.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(jj)&#160;&#160;&#160;&#160;&#160; Each of the
representations and warranties made by Guarantor herein or in any of the other
Loan Documents is true, complete and correct in all material respects.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(kk)&#160;&#160;&#160; Borrower possesses or will
possess prior to construction all franchises, patents, copyrights, trademarks,
trade names, servicemarks, licenses and permits, and rights in respect of the
foregoing, adequate for the conduct of Borrower&#146;s businesses substantially as
now conducted and to be conducted at the Project without conflict with any
rights of others.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ll)&#160;&#160;&#160;&#160;&#160; A true and correct
organizational chart outlining the percentage of ownership and capital
structure of Borrower and the direct and indirect owners of Borrower is
attached hereto as <u>Exhibit F</u>.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(mm)&#160; Borrower has delivered to
Lender true, correct and complete copies of the ER Purchase Agreement and the
ML&amp;P Agreements.&#160; Each such agreement
is in full force and effect and has not been amended.&#160; Borrower, Exclusive Resorts and ML&amp;P have
not received or given any notice of a default under such agreements which has
not been cured.&#160; Attached hereto as Schedule
B is a complete list of all agreements entered into by, between or among Borrower
and any Affiliate of ML&amp;P, Exclusive Resorts, LLC, a Delaware limited
liability company, MII and MLP/MII Affiliate.&#160;
Amendments to the ER Purchase Agreement and any individual purchase
agreements entered into pursuant thereto may be amended as permitted by Section
16.1(m).</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(nn)&#160;&#160; Borrower has satisfied the
Initial Equity Requirement or the Equity Requirement, as the case may be.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(oo)&#160;&#160; Borrower represents that to
the best of its knowledge, it is in compliance with all of the requirements of
state, local and municipal requirements for the construction of the Project,
including but not limited to, the requirements of the State of Hawaii
Department of Land and Natural Resources (Historical Preservation Division).</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Survival of Representations and Warranties.</u></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower agrees that all of the representations and
warranties set forth in <u>Section 3.1</u> and elsewhere in this Agreement are
true as of the Effective Date and, except for matters which have been disclosed
by Borrower in writing, will be true at all times thereafter.&#160; Each request for a disbursement under the
Loan Documents shall constitute a reaffirmation of such representations and
warranties, as deemed modified in accordance with the disclosures made and approved
as aforesaid, as of the date of such request.&#160;
It shall be a condition precedent to the making of the Initial Advance
and each subsequent disbursement of the Loan that each of said representations
and warranties is true and correct as of the date of such requested
disbursement, except as aforesaid.&#160; In
addition, at Lender&#146;s request, Borrower shall reaffirm such representations and</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">warranties in writing
prior to each disbursement hereunder; subject to updating same to include those
facts and circumstances that are reasonably necessary to include to render the
representations true and correct in all material respects.&#160; In the event that a representation and/or
warranty given to Lender on the Effective Date is updated such that a material
adverse fact is disclosed to Lender then Lender shall be permitted to withhold
disbursement of an advance under the Loan until the fact or circumstance no
longer exists or Lender otherwise waives same.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE IV<br>
LOAN AND LOAN DOCUMENTS</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Agreement to Borrow and Lend;
Lender&#146;s Obligation to Disburse</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to the terms, provisions and conditions of
this Agreement and the other Loan Documents, Borrower agrees to borrow from
Lender and Lender agrees to lend to Borrower the Loan, for the purposes and
subject to all of the terms, provisions and conditions contained in this
Agreement.</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; The Loan shall be made to
Borrower on the terms and conditions hereinafter set forth.&#160; The Loan will bear interest at the rate or
rates, and will be repaid, as set forth in this Agreement and in the Note.&#160; Borrower shall use the proceeds of the Loan
solely for the purposes specified herein.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; The aggregate amount of
the Loan shall not exceed the lesser of (i) Three Hundred Seventy Million and
00/100 Dollars ($370,000,000.00) and (ii) 61.6% of the total cost of the Project
as set forth in the Construction Budget.&#160;
The Loan is not revolving in nature, and amounts repaid may not be
subsequently readvanced.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Provided that Borrower
satisfies the conditions to the making of the Loan set forth in <u>Article VIII</u>
hereof, Lender shall disburse the Initial Advance to Borrower on the Effective
Date.&#160; Borrower shall use the Initial
Advance to pay Pre-Development Costs&#160;
encumbering the Land and for such other purposes as the parties shall
agree upon.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; After the disbursement of
the Initial Advance, Lender shall make successive disbursements of the Loan to
Borrower, but not more than once per calendar month, provided that (i) there
shall then exist no Default or Event of Default, (ii) no Material Adverse
Change shall have occurred with respect to Borrower, Guarantor or the Project,
(iii) the Loan remains In Balance, (iv) all required Governmental Approvals are
in full force and effect as needed for the then-current stage of Construction,
and (iv) Borrower satisfies the conditions to the disbursement of the Loan set
forth in <u>Articles VIII, IX, X, XIII</u> and <u>XIV</u> hereof, as
applicable.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; To the extent that Lender
may have acquiesced in noncompliance with any requirements precedent to the
disbursement of any portion of the Loan, such acquiescence shall not constitute
a waiver by Lender, and Lender may at any time after such acquiescence require
Borrower to comply with all such requirements.</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; On or before the
Effective Date, Borrower shall pay to Lender a loan fee in the amount of Three
Million Seven Hundred Thousand and 00/100 ($3,700,000.00) (the &#147;<u>Loan Fee</u>&#148;)
payable from the Initial Advance.&#160; The
Loan Fee has been fully earned by Lender and is non-refundable to Borrower,
regardless of when the Loan is repaid or whether any further advances of the
Loan are made;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; Borrower shall, prior to
the Effective Date, open the Operating Account.&#160;
Borrower authorizes Lender to disburse the Loan proceeds by crediting
the Operating Account; <u>provided</u>, <u>however</u>, that Lender shall not
be obligated to use such method.&#160; Lender
may pay interest due on the Note when and as the same shall become due by
debiting funds on deposit in the Operating Account and charging the interest
line item of the Construction Budget.</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Loan Documents</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On the Effective Date, Borrower shall execute and
deliver (and cause any party thereto other than Borrower or Lender to execute
and deliver) to Lender the following:</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; The Note;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; The Mortgage;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; The Assignment of Leases
and Rents;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; The Assignment of
Contracts;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; The Recourse Guaranty;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; The Completion Guaranty;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; The Environmental
Indemnity;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160; The Assignment of
Membership Interests and Security agreement dated the date hereof, made by
Member for the benefit of Lender;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160; The Ritz-Carlton Consent
Agreement;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160; The ML&amp;P Consent
Agreement;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160; The Assignment of
Purchase Contracts;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160; Ground Lessor Consent,
Estoppel Certificate and Amendment;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160; Pledge of Accounts,
Security Agreement and Rights to Payment;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160;&#160;&#160;&#160; Assignment of Contracts,
Licenses, Permits, Agreements, Warranties and Approvals;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160;&#160;&#160;&#160;&#160; The Keep Whole Letters;</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160;&#160;&#160;&#160;&#160; Such UCC financing
statements as Lender determines are advisable or necessary to perfect or notify
third parties of the security interests intended to be created by the Loan
Documents; and</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)&#160;&#160;&#160;&#160;&#160; Such other documents,
instruments or certificates as Lender or its counsel may reasonably require,
including such documents as Lender in its sole discretion deems necessary or
appropriate to effectuate the terms and conditions of this Agreement and the
Loan Documents and to comply with Laws.</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.3</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Term of the Loan</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; All principal, interest
and other sums due under the Loan Documents shall be due and payable in full on
the Maturity Date.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; Borrower may elect to
extend the Maturity Date for two (2) additional terms of twelve (12) months
each (each, an &#147;<u>Extension Period</u>&#148;; respectively, the &#147;<u>First Extension
Period</u>&#148; and the &#147;<u>Second Extension Period</u>&#148;; and collectively, the &#147;<u>Extension
Periods</u>&#148;), subject to the satisfaction of each of the following conditions
prior to the Initial Maturity Date and First Extension Period Maturity Date, as
the case may be:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
furnishes Lender with not less than thirty (30), but not more than ninety (90),
days&#146; advance written notice of its election to extend the Maturity Date (the &#147;<u>Extension
Notice</u>&#148;), which Extension Notice may be rescinded or withdrawn by Borrower;
provided that such rescission notice is deliver to Lender at least five (5)
days prior to the Initial Maturity Date and First Extension Period Maturity
Date, as the case may be.&#160; In the event
that Borrower elects to rescind its Extension Notice, Borrower shall pay by all
of Lender&#146;s actual costs and expenses (including reasonable attorneys&#146; fees and
expenses) incurred in connection with such rescission;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; There
shall be no uncured Default of which notice has been previously given to
Borrower or Event of Default that exists under this Agreement or any of the
other Loan Documents either at the time the Extension Notice is given or on the
Initial Maturity Date or First Extension Maturity Date, as applicable;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall have established with Lender sufficient reserves for the payment of such
Taxes, Insurance Premiums, interest due on the Loan during the Extension Period
and other expenses as Lender reasonably anticipates will be incurred by
Borrower in excess of any unexpended amounts remaining in Budget Line Items for
the payment of such Taxes, Insurance Premiums, interest and other expenses
during the Extension Period pursuant to this Agreement;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall have theretofore substantially completed the Improvements in accordance
with the Plans and Specifications;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall have theretofore obtained the approval of the Office to the Condominium
Documents, Residential Condominium and made all filings requisite to the
creation of the Residential Condominium;</font></h4>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall have delivered a certificate to Lender
that (A) there exists no Event of Default at the time the Extension Notice is
given and on the Initial Maturity Date or First Extension Period Maturity Date,
as the case may be, and (B) the representations and warranties contained herein
are true and correct in all material respects at the time the Extension Notice
is given and on the Initial Maturity Date or First Extension Period Maturity
Date, as the case may be; but subject to update to include those facts and
circumstances that are reasonably necessary to include to render the
representations true and correct in all material respects.&#160; In the event that a representation and
warranty given to Lender is updated such that a material adverse fact is
disclosed to Lender then Lender shall not be obligated to extend the term of
the Loan;</font></p>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Guarantor
executes and delivers to Lender a reaffirmation of the Recourse Guaranty;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall have delivered to Lender a reaffirmation of each existing Contract of
Sale that such Contract of Sale is in full force and effect.&#160; The reaffirmations shall be dated not earlier
than sixty (60) days prior to the Initial Maturity Date or First Extension
Period Maturity Date, as the case may be;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
causes Title Insurer to deliver to Lender an endorsement to the Title Policy,
insuring the priority of the lien of the Mortgage; and</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ix)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall have paid all costs and expenses actually incurred by Lender in
connection with such extension, including, without limitation, underwriting,
title and reasonable legal fees and costs.</font></h4>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Borrower shall not be
entitled to any further disbursements of Loan proceeds during the Extension
Period except to the extent there are unexpended amounts of the Loan remaining
in Budget Line Items for the payment of Taxes, Insurance Premiums, interest and
other unapplied Budget Line Items.</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.4</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Prepayments</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as required by <u>Sections 15.4(h)</u>, <u>15.5(e)</u>,
and <u>17.1(a)</u> hereof, Borrower may not prepay the Loan at any time prior
to the second anniversary of the Effective Date (the &#147;<u>Lockout Date</u>&#148;).&#160; Thereafter, except as provided in <u>Section
4.5</u>, Borrower may prepay the Loan in whole only upon not less than thirty
(30) days&#146; written notice to Lender.&#160; No
such prepayment of the Loan shall be permitted unless the same is accompanied
by (i) all interest accrued on the Loan through the date of prepayment, (ii)
Breakage Costs incurred by Lender as a result of the prepayment, and (iii)
reasonable attorneys&#146; fees incurred by Lender as a result of the
prepayment.&#160; A prepayment notice may be
rescinded or withdrawn by Borrower provided that such rescission notice is
deliver to Lender at least five (5) days prior to the prepayment date and
Borrower shall pay by all of Lender&#146;s actual costs and expenses (including
reasonable attorneys&#146; fees and expenses) incurred in connection with such
rescission.</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.5</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Required Principal Payments</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Borrower shall make
payments on account of the principal amount of the Loan upon the release of the
lien of the Mortgage in respect of a Unit, as provided in <u>Section 15.4(h)</u>
hereof; and</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; On the Maturity Date,
Borrower shall pay the entire amount of the Debt.</font></h3>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE V<br>
INTEREST</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Interest Rate</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Interest shall accrue on
the Loan at the Applicable Rate.&#160; Subject
to the provisions hereinafter set forth, the Applicable Rate shall be the
Adjusted LIBOR Rate.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; Interest in arrears at
the Applicable Rate shall be payable on each Payment Date.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; As long as no Event of
Default has occurred and is continuing, Borrower may elect from time to time
(each, a &#147;LIBOR Rate Election&#148;), but no more frequently than once in any
calendar month, to have the Adjusted LIBOR Rate apply to any portion of the
principal amount of the Loan (including any disbursement of Loan proceeds about
to be made) by giving Lender irrevocable written notice of such election
designating the Interest Period for which such LIBOR Rate Election is to
apply.&#160; Such written notice shall be
given to Lender at its New York office by no later than 11:00 A.M. New York
time at least three (3) LIBOR Business Days prior to the date on which the
applicable Interest Period will commence.&#160;
If a LIBOR Rate Election is then in effect with respect to any portion
of the Loan, then no Interest Period for such portion (or any part thereof) of
the Loan may be designated which commences prior to the last day of the then
current and applicable Interest Period for such portion of the Loan.&#160; In no event may Borrower elect an Interest
Period which extends beyond the Maturity Date.&#160;
Notwithstanding anything to the contrary, (i) the LIBOR Rate Election may
be exercised from time to time only as to a minimum amount of $53,000,000, and
(ii) in no event shall more than seven (7) Interest Periods be in effect at any
time for the Loan.&#160; If Borrower does not
select an Interest Period at least three (3) LIBOR Business Days prior to the
last day of the applicable Interest Period, then the Applicable Rate for such
amount following the end of such Interest Period shall be based on a thirty
(30) day Interest Period.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; All payments (whether of
principal or interest) shall be deemed credited to Borrower&#146;s account only if
received by 3:00 p.m. (New York time) on a Business Day; otherwise, such
payment shall be deemed received on the next Business Day.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; If Lender determines
(which determination shall be conclusive and binding upon Borrower, absent
manifest error) (i) that dollar deposits in respect of any portion of the Loan
bearing interest at the Adjusted LIBOR Rate are not generally available at such
time in the London Interbank market, (ii) that the rate at which such deposits
are being offered will not adequately and fairly reflect the cost to Lender of
maintaining a LIBOR Rate on such portion of the Loan or of funding the same due
to circumstances affecting the London</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">interbank market generally, (iii) that reasonable means do not exist
for ascertaining a LIBOR Rate or (iv) that an Adjusted LIBOR Rate would be in
excess of the maximum interest rate which Borrower may by law pay, then, in any
such event, Lender shall so notify Borrower and all portions of the Loan
bearing interest at the Adjusted LIBOR Rate that are so affected shall, as of
the date of such notification with respect to an event described in clauses
(ii) or (iv) above, or as of the expiration of the Applicable Rate Interest
Period with respect to an event described in clauses (i) or (iii) above, bear
interest at the Adjusted Prime Rate until such time as the situations described
above are no longer in effect.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; If the introduction of
(or any change in) any Law, regulation or treaty, or in the interpretation
thereof by any Governmental Authority charged with the administration or
interpretation thereof, shall make it unlawful for Lender to maintain the
Applicable Rate at an Adjusted LIBOR Rate with respect to the Loan or any
portion thereof, or to fund the Loan or any portion thereof in dollars in the
London interbank market, then (i) Lender shall notify Borrower that Lender is
no longer able to maintain the Applicable Rate at an Adjusted LIBOR Rate, (ii)
the Applicable Rate shall automatically be converted to the Adjusted Prime Rate
and (iii) Borrower shall pay to Lender the amount of Breakage Costs (if any)
incurred by Lender in connection with such conversion.&#160; Lender shall use reasonable efforts to avoid
incurring any Breakage Costs but shall have no liability if any Breakage Costs
are incurred.&#160; Thereafter, interest shall
accrue on the Loan or the applicable portion thereof at the Adjusted Prime Rate
until such time as the situation described herein is no longer in effect.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; Interest on the
outstanding principal balance of the Loan shall be calculated by multiplying
(i) the actual number of days elapsed in the period for which the calculation
is being made by (ii) a daily rate based on a three hundred sixty (360) day
year by (iii) the outstanding principal balance of the Loan.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160; Borrower shall indemnify
Lender and hold Lender harmless from any loss or expense which Lender sustains
or incurs as a consequence of (i) any default by Borrower in payment of the
principal of or interest on any portion of the Loan bearing interest at an
Adjusted LIBOR Rate, including, without limitation, any such loss or expense
arising from interest or fees payable by Lender to lenders of funds obtained by
it in order to maintain such portion of the Loan at an Adjusted LIBOR Rate,
(ii) any prepayment (whether voluntary or mandatory) of any portion of the Loan
bearing interest at an Adjusted LIBOR Rate on a day that (A) is not the Payment
Date immediately following the last day of an Interest Period with respect
thereto or (B) is the Payment Date immediately following the last day of an
Interest Period with respect thereto if Borrower did not give the prior written
notice of such prepayment required pursuant to the terms of this Agreement,
including, without limitation, such loss or expense arising from interest or
fees payable by Lender to lenders of funds obtained by it in order to maintain
such portion of the Loan at an Adjusted LIBOR Rate and (iii) the conversion
(for any reason whatsoever, whether voluntary or involuntary) of the Applicable
Rate from an Adjusted LIBOR Rate to the Adjusted Prime Rate with respect to any
portion of the Loan on a date other than the Payment Date immediately following
the last day of an Interest Period, including, without limitation, such loss or
expenses arising from interest or fees payable by Lender to lenders of funds
obtained by it in order to maintain such portion of the Loan at an Adjusted
LIBOR Rate (the amounts referred to in clauses (i), (ii) and (iii) are herein
referred to collectively as the &#147;<font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font color="black" style="font-weight:normal;">Breakage Costs</font></u></b></font>&#148;).&#160; This provision shall survive payment</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of the Note in full and the satisfaction of all other obligations of
Borrower under this Agreement and the other Loan&#160; Documents.&#160;
Lender shall make reasonable efforts to avoid incurring any Breakage
Costs in connection with the application of the Release Prices in reduction of
the Debt.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160; The outstanding
principal balance of the Loan shall bear interest at the Default Rate at any
time during which an Event of Default exists.</font></h3>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE VI<br>
COSTS OF MAINTAINING LOAN</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Increased Costs and Capital
Adequacy</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Borrower recognizes that
the cost to Lender of maintaining the Loan or any portion thereof may fluctuate
and Borrower agrees to pay Lender additional amounts to compensate Lender for
any increase in costs incurred in maintaining the Loan or any portion thereof
or for the reduction of any amounts received or receivable from Borrower as a
result of:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any
change after the date hereof in any Law, regulation or treaty, or in the
interpretation or administration thereof, or by any domestic or foreign court,
(x) changing the basis of taxation of payments under this Agreement to Lender
(other than taxes imposed on all or any portion of the overall net income or
receipts of Lender), (y) imposing, modifying or applying any reserve, special
deposit or similar requirement against assets of, deposits with or for the
account of, credit extended by, or any other acquisition of funds for loans by
Lender or (z) imposing on Lender, or the London interbank market generally, any
other condition affecting the Loan, provided that the result of the foregoing
is to increase the cost to Lender of maintaining the Loan or any portion
thereof or to reduce the amount of any sum received or receivable from Borrower
by Lender under the Loan Documents; or</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the
maintenance by Lender of reserves in accordance with reserve requirements
promulgated by the Board of Governors of the Federal Reserve System of the
United States with respect to &#147;Eurocurrency Liabilities&#148; of a similar term to
that of the Loan (without duplication for reserves already accounted for in the
calculation of a LIBOR Rate pursuant to the terms hereof).</font></h4>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; If the application of any
Law, rule, regulation or guideline adopted or arising out of the report of the
Basle Committee on Banking Regulations and Supervisory Practices entitled &#147;International
Convergence of Capital Measurement and Capital Standards&#148;, or the adoption
after the date hereof of any other Law, rule, regulation or guideline regarding
capital adequacy, or any change after the date hereof in any of the foregoing,
or in the interpretation or administration thereof by any domestic or foreign
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by Lender with any
request or directive regarding capital adequacy (whether or not having the
force of law) of any such Governmental Authority, central bank or comparable
agency, has the effect of reducing the rate of return on Lender&#146;s capital to a
level below that which Lender would have achieved but for such application,
adoption, change or compliance</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(taking into consideration the policies of Lender with respect to
capital adequacy), then, from time to time Borrower shall pay to Lender such
additional amounts as will compensate Lender for such reduction with respect to
any portion of the Loan outstanding.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Any amount payable by
Borrower under subsection (a) or subsection (b) of this Section 6.1 shall be
paid within five (5) days of receipt by Borrower of a certificate signed by an
authorized officer of Lender setting forth the amount due and the basis for the
determination of such amount, which statement shall be conclusive and binding
upon Borrower, absent manifest error.</font></h3>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE VII<br>
LOAN EXPENSE AND ADVANCES</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Loan and Administration Expenses</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall reimburse Lender, from time to time
upon five (5) days&#146; demand therefor, for reasonable, out-of-pocket expenses
incurred by Lender in connection with the administration of the Loan (excluding
Lender&#146;s general overhead expenses), including all amounts payable pursuant to <u>Sections
7.2</u> and <u>7.3</u> hereof and any and all other fees owing to Lender
pursuant to the Loan Documents, and also including, without limitation, all
recording, filing and registration fees and charges, mortgage or documentary
taxes, insurance premiums, title insurance premiums and other charges of the
Title Insurer, survey fees and charges, cost of certified copies of
instruments, cost of premiums on surety company bonds and the Title Policy,
charges of Title Insurer or other escrowee for administering disbursements, all
fees and disbursements of Lender&#146;s Consultant, all fees and disbursements of
servicer, appraisal fees, syndication fees, insurance consultant&#146;s fees,
environmental consultant&#146;s fees, travel related expenses and all costs and
expenses incurred by Lender or Servicer in connection with the determination of
whether or not Borrower has performed the obligations undertaken by Borrower
hereunder or has satisfied any conditions precedent to the obligations of
Lender hereunder.&#160; Further, if&#160; any Default or Event of Default occurs or if
the Loan is not paid in full when and as due, Borrower shall pay to Lender upon
five (5) days&#146; demand therefor, all costs and expenses of Lender (including,
without limitation, reasonable attorneys&#146; fees and court costs) incurred in
attempting to enforce payment of the Loan or to realize upon the security
therefor.&#160; Borrower agrees to pay Lender&#146;s
fees and disbursements incurred in connection with title updates and title endorsements
ordered by the Lender (a) in connection with each disbursement of Loan
proceeds, (b) to be ordered every six (6) months if construction ceases and (c)
after completion of construction every six (6) months thereafter throughout the
term of the Loan, or more often if an Event of Default has occurred or if
required by examiners.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Brokerage Fees</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall pay all brokerage, finder or similar
fees or commissions payable in connection with the transactions contemplated
hereby and shall indemnify and hold Lender harmless against all claims,
liabilities, costs and expenses (including attorneys&#146; fees and expenses)
incurred in relation to any claim by any broker, finder or similar person
claiming that they represented Borrower; <u>provided</u>  <u>however</u>, that
as an inducement to Borrower to make the</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">foregoing undertaking,
Lender represents and warrants to Borrower that Lender has not dealt with any
broker, finder or similar person in connection with this Loan.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.3</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Right of Lender to Make Advances
to Cure Borrower&#146;s Defaults</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If Borrower fails to perform any of Borrower&#146;s
covenants, agreements or obligations contained in this Agreement or any of the
other Loan Documents (after the expiration of applicable grace periods, except
in the event of an emergency or other exigent circumstances), Lender may (but
shall not be required to), after written notice to Borrower and the expiration
of any applicable cure periods, perform any of such covenants, agreements and
obligations, and any amounts expended by Lender in so doing shall be added to
the Debt and bear interest at the Default Rate.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE VIII<br>
CONDITIONS PRECEDENT<br>
TO THE MAKING OF THE LOAN</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Non-Construction Conditions
Precedent</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lender&#146;s obligation to fund the Initial Advance and thereafter
to make any further disbursements of the Loan is conditioned upon Borrower&#146;s
delivery, performance and satisfaction of the following conditions precedent in
form and substance satisfactory to Lender.</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished duly executed copies of the documents listed in <u>Section 4.2</u>;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; There shall exist no
Default of which Borrower has received notice from Lender or Event of Default;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Borrower has paid the
Loan Fee to Lender;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; Borrower shall have
satisfied the Initial Equity Requirement;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with evidence (also satisfactory to the Title Insurer) that
all pre-closing development costs on the Project have been paid or will be paid
as of Closing;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with evidence that all taxes then due and payable, including
without limitation, real estate taxes, with respect to the Property have been
paid or will be paid as of Closing;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished to Lender the Title Policy, together with legible copies of all title
exception documents cited in the Title Policy and all other legal documents
affecting the Project or the use thereof;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished to Lender an ALTA/ACSM Land Title Survey of the Project and any and
all existing plats regarding the Project;</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with evidence of zoning or a copy of the final approved
Planned Unit Development (&#147;<u>PUD</u>&#148;) map, preliminary development plan (&#147;<u>PDP</u>&#148;)
or other development plan for the Project permitting the construction of the
Improvements and containing all use or building conditions or restrictions
affecting the Project and approved by the appropriate Governmental Authority;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished to Lender certified copies of the Issued Entitlements and all other
Governmental Approvals and Permits then required for the Project;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with policies or binders evidencing that Borrower has obtained
and maintains insurance coverage in respect of Borrower and the Project in
accordance with the provisions of <u>Section 16.2</u> below, and paid all
Insurance Premiums in respect thereof;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160; All of the
representations of Borrower and Guarantor set forth in the Loan Documents shall
be true and correct in all material respects;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with an opinion(s) from counsel to Borrower, Member and
Guarantor as to due formation, valid existence and good standing of Borrower,
Member and Guarantor, authorization, due execution and delivery of the Loan
Documents, enforceability and perfection of the Loan Documents, and security
interests, usury, zoning and land use entitlements, marketing and sale of Units
in accordance with applicable law, and such other matters as Lender may
reasonably request.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with the Non-Consolidation Opinion;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with an zoning report from PBR Hawaii as to violations and
zoning, and use of property and other non-zoning land use permits.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with current bankruptcy, federal tax lien, litigation,
judgment and UCC searches in respect of Borrower, Member and Guarantor;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with current annual financial statements of Member and
Guarantor, each in form satisfactory to Lender and each certified as being
true, complete and correct by the party to which it relates;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with proof satisfactory to Lender of its authority, formation
and good standing in the state of its formation and qualification in the State
of Hawaii;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with (i) certified copies of all action taken by Borrower,
Member and any other principal of Borrower to authorize the execution, delivery
and performance, in accordance with its terms, of this Agreement, the Mortgage,
the Note, each of the other Loan Documents and any other documents required or
contemplated hereunder or thereunder to which it is a party; (ii) a certificate
of incumbency with respect to the representatives of each Borrower, Member and
any other principal of Borrower authorized and directed to execute and deliver
each of the Loan Documents to which it is a party; </font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii) certificates of good standing for Borrower, Member and any other
principal of Borrower from the appropriate authority in their jurisdictions of
formation, and (iv) certified copies of all organizational documents,
including, without limitation, formation and corporate governance documents,
for Borrower, Member and any other principal of Borrower;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(t)&#160;&#160;&#160;&#160;&#160;&#160; Guarantor shall have
furnished Lender with (i) certified copies of all action taken by Guarantor to
authorize the execution, delivery and performance, in accordance with its
terms, of the Recourse Guaranty, the Completion Guaranty, the Environmental
Indemnity and any other documents required or contemplated hereunder or
thereunder to which it is a party (the &#147;<u>Guarantor Documents</u>&#148;); (ii) a
certificate of incumbency with respect to the representatives of each Guarantor
authorized and directed to execute and deliver each of the Guarantor Documents
to which it is a party; and (iii) certificates of good standing for Guarantor
from the appropriate authority in their jurisdictions of formation;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(u)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with evidence of the availability to the Improvements of all
utilities utilized or to be utilized at the Project in compliance with the
requirements of the Plans and Specifications.&#160;
Such evidence may be in the form of letters from utility companies or
local authorities, that (a) telephone service, cable, telecommunications,
electric power, natural gas, storm sewer, sanitary sewer and water facilities
are available to the Project; (b) such utilities are adequate to serve the
Project and exist at the boundary of the Project; and (c) no conditions exist
to affect Borrower&#146;s right to connect into and have unlimited use of such
utilities except for the payment of a normal connection charge and except for
the payment of subsequent charges for such services to the utility supplier;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160; Lender shall have
reviewed and approved the Appraisal;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(w)&#160;&#160;&#160;&#160; Lender shall have reviewed
and approved the Environmental Report;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with copies of all engineering reports, land planning maps, or
plats, soils tests, environmental reports, surveys prepared for the orderly
planning of the Improvements, marketing materials and brochures, building
permits or licenses, utility taps or supply agreements, governmental or private
agreements, indemnities, waivers, rights to reimbursements, abatements or
benefits of whatsoever nature regarding the Property, to the extent assignable,
and other documents prepared and existing for the construction of the
Improvements, available on the Effective Date, with subsequent submissions to
Lender of reports and studies not required to be available on the Effective
Date, if requested by Lender (collectively, the &#147;<u>Development Items</u>&#148;).</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(y)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with copies of any agreements, existing or proposed, with any
Governmental Authority, in the nature of a subdivider&#146;s agreement, public
improvements agreement, or annexation agreement affecting the development of
the Project or requiring cash equivalent collateral, or imposing building
restrictions in lieu of collateral, as a condition to development of the
Project (collectively, the &#147;<u>Development Documents</u>&#148;).</font></h3>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(z)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with evidence that any obligations regarding development in
connection with the Project arising under the Development Documents or
agreements with providers of utility services or governmental regulations which
could become a lien against the Property or a restriction against the issuance
of building permits or certificates of occupancy for the Improvements
(collectively, the &#147;<u>Development Obligations</u>&#148;) have been or will be
satisfied or performance of the Development Obligations has been or will be
secured by adequate financial security such as bonds, letters of credit or
certificates of deposit pursuant to the agreements creating the Development
Obligations or the requirements of the utility provider.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(aa)&#160;&#160;&#160; Borrower shall have
furnished to Lender a fully executed Ground Lessor Consent, Estoppel
Certificate and Amendment;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(bb)&#160;&#160; Borrower shall have
furnished to Lender fully executed copies of the Marketing Agreements;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(cc)&#160;&#160;&#160; Borrower shall have
furnished Lender with copies of the Condominium Documents and Fractional
Ownership Documents;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(dd)&#160;&#160; Borrower shall have
furnished Lender with fully executed copies of all Contracts of Sale existing
as of the Effective Date;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ee)&#160;&#160;&#160; Borrower shall have
furnished Lender with a fully-executed copy of that certain ER Residences
Agreement (the &#147;<u>ER Purchase Agreement</u>&#148;) dated August 31, 2004, by and
between Borrower and Exclusive Resorts, as amended by that certain First
Amendment dated June 28, 2006, for the purchase of 28 Residential Condominium
Units by Exclusive Resorts.&#160; The actual
purchase of each such Residential Condominium Unit shall be effected by the due
execution of a Contract of Sale by Borrower and Exclusive Resorts (or its
permitted assigns);</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ff)&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with fully-executed copies of the ML&amp;P Agreements;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(gg)&#160;&#160; Lender shall have received
evidence satisfactory to it that the Operating Account has been established.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(hh)&#160;&#160; The Lender shall have
received a true and correct copy of the pay off letter from the holder or any
existing debt encumbering the Project, and the terms thereof shall be
reasonably satisfactory to the Lender;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160; Borrower shall have
paid, or will pay at closing, all brokerage fees or commissions arising from
the making of the Loan, if any, its own expenses and fees incurred in
connection with the Loan, and all of Lender&#146;s fees and charges incurred in
connection with the making of the Loan, including but not limited to attorneys&#146;
fees and charges, title fees and charges, construction, environmental and
engineering consultant&#146;s fees and charges, appraisal costs, surveys, recording
and filing fees and taxes; and</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(jj)&#160;&#160;&#160;&#160;&#160; All documents and legal
matters in connection with the transactions contemplated by this Agreement
shall be satisfactory in form and substance to the Lender.</font></h3>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE IX<br>
CONDITIONS PRECEDENT FOR SUBSEQUENT ADVANCES UNDER THE LOAN</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Pre-Development Conditions
Precedent</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to Section 9.2, Lender&#146;s obligation to
disburse loan proceeds for Pre-Development Costs up to a maximum amount of
Eighty-Five Million and 00/100 Dollars ($85,000,000.00), which amount shall be
inclusive of the Initial Advance, is conditioned upon Borrower&#146;s delivery,
performance and satisfaction of the following conditions:</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Borrower has made its request
for disbursement and has satisfied all of the conditions in this <u>Section 9.1</u>;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; Borrower delivers to
Lender a Requisition, duly executed by the Authorized Representative;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Borrower delivers to
Lender such invoices, contracts or other information as Lender may reasonably
require to evidence that Borrower has incurred all costs covered by the request
for disbursement;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; Borrower delivers to
Lender an executed, acknowledged lien waiver from each Subcontractor in respect
of all Hard Costs covered by the prior disbursement of the Loan;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; Borrower delivers to
Lender paid receipts or other proof of payment of all Soft Costs covered by the
prior disbursement of the Loan;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; Borrower delivers to
Lender an endorsement to the Title Policy though the date of the disbursement,
confirming the first priority lien position of the Mortgage, subject only to
the Permitted Exceptions;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; Borrower delivers to
Lender such other instruments, documents and information as Lender or Title
Insurer may reasonably request;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160; Consent from the
Architect to the collateral assignment by Borrower to Lender of the Architect&#146;s
Agreement and the Plans and Specifications in respect of the Project;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall have made
or shall simultaneously make an equity contribution that complies with the
Equity Requirement conditions, for payment of expenses included in the
Construction Budget in an amount equal to forty percent (40%) of the total Hard
Costs and Soft Costs incurred through the date of the requested disbursement;&#160; and</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall have
utilized all Available Contract Deposits.</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each disbursement shall be made approximately ten (10)
days after Borrower&#146;s satisfaction of all of the foregoing conditions to the
making of such disbursement, except for the Initial Advance which shall be made
at Closing.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Building Permit</u>.&#160; Notwithstanding Section 9.1 or any other
provision to the contrary in this Agreement, including, without limitation,
Article X, Lender shall not be obligated to make any further disbursements of
Loan proceeds subsequent to the Initial Advance unless and until the building
permits for the Residential Condominium Units and Fractional Ownership Units
have been issued.&#160; Upon issuance of the
building permit for the Residential Condominium Units and Fractional Ownership
Units, Lender shall make additional disbursements to Borrower of Loan proceeds
subject to the satisfaction of the other conditions set forth in this
Agreement; provided, however, that notwithstanding Section 9.1(i) and Section
13.1(l), Borrower shall not be obligated to make any additional equity
contributions until such time as Lender has determined that a disbursement by
Lender would otherwise result in the ratio of the amount of equity contributed
to the Project by Borrower (excluding by application of Contract Deposits) for
payment of Hard Costs and Soft Costs provided in the Construction Budget to the
total Loan proceeds advanced by Lender being less than 40% of equity to 60% of
Loan proceeds.</h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.3</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Pre-Sales Requirement</u>.&#160; Lender&#146;s obligation to disburse loan proceeds
in excess of $85,000,000 shall be conditioned on Lender&#146;s receipt of executed,
enforceable Qualifying Contracts of Sale with an aggregate sales price equal to
or exceeding Two Hundred Eighty-Five Million and 00/100 Dollars
($285,000,000.00) (including those Units to be sold to Exclusive Resorts
pursuant to the ER Purchase Agreement, which is deemed to be a Qualifying
Contract of Sale for this purpose).</h2>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE X<br>
CONSTRUCTION CONDITIONS PRECEDENT FOR SUBSEQUENT ADVANCES UNDER THE LOAN</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Required Construction Documents</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall obtain prior to the Construction
Commencement Date, and as a condition for any advances to be made subsequent to
the Construction Commencement Date, Lender&#146;s approval of each of the following
items:</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Confirmation that Issued
Entitlements are still in place and in effect.&#160;
Confirmation shall amount to an affidavit by Borrower that no action has
been undertaken which jeopardizes Entitlements;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; Fully executed copies of:
(i) the General Contract (except that the General Contract pertaining to the
Spa shall not be required until August 1, 2007) ; (ii) those Construction
Contracts then required to comply with the Construction Contracts Effectiveness
Schedule or with respect to which any Construction is then being performed;
(iii) the Architect&#146;s Agreement and (iv) all contracts with Engineers;</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; A current annual
financial statement of General Contractor, satisfactory to Lender and certified
as being true, complete and correct by General Contractor;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; A schedule of values,
including a trade payment breakdown, setting forth a description of all
Construction Contracts;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; All Permits then required
for that portion of the Construction for which funds will be disbursed; as funds
are requested for additional portions of the Construction Borrower shall
provide Permits for same;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; The Plans and
Specifications;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; Fully paid Bonds in favor
of Lender, guaranteeing the obligations of General Contractor under the General
Contract and the Subcontractors under the Major Contracts;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160; A report from Lender&#146;s
Consultant which contains an analysis of the Plans and Specifications, the
Construction Budget, the Construction Schedule, the General Contract and all
Construction Contracts. Such report shall contain (i) an analysis demonstrating
the adequacy of the Construction Budget to complete the Project and (ii) a
confirmation that the Construction Schedule is realistic.&#160; Lender&#146;s Consultant shall monitor
construction of the Project and shall visit the Project at least one (1) time
in connection with each disbursement request, and shall certify as to amount of
construction costs for all requested advances;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160; The Architect&#146;s
Certificate, executed by the Architect;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160; Consents from the General
Contractor, the Architect, and other Persons reasonably specified by Lender to
the collateral assignment by Borrower to Lender of construction documents,
including, without limitation, the General Contract, the Architect&#146;s Agreement,
contracts with Engineers, Plans and Specifications, all permits, licenses and
approvals (to the extent assignable under applicable law) in respect of the
Project, any other Development Item and any Development Document;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160; Borrower&#146;s certification
that all Contract Deposits utilized to date for Hard Costs and Soft Costs
constitute Available Contract Deposits and have been utilized or will be
utilized in conjunction with the requested advance;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160; [Intentionally Deleted];</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160; [Intentionally Deleted];</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160;&#160;&#160;&#160; An engineer&#146;s report prepared
and certified by a qualified engineer acceptable to Lender, showing locations
and results of all borings, together with recommendations for the design of the
foundations of the Improvements and certifying in a manner satisfactory to
Lender the adequacy of the existing soils condition, indicating that the Plans
and Specifications for construction of the Improvements are satisfactory in
view of the condition of the soil;</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160;&#160;&#160;&#160;&#160; Copies of marketing
brochures or materials regarding the Project;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160;&#160;&#160;&#160;&#160; An opinion in form and
substance reasonably satisfactory to Lender from Borrower&#146;s independent counsel
that the Fractional Ownership Documents recorded in the Office with respect to
the Fractional Ownership Units are sufficient to subject the Fractional Ownership
Units to a fractional ownership regime in compliance with the laws of the State
of Hawaii (&#147;<u>Fractional Ownership Opinion</u>&#148;), which Fractional Ownership
Opinion shall be delivered prior to the initial partial release of any Unit;
and</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)&#160;&#160;&#160;&#160;&#160; The form of Purchase
Contract to be used by Borrower in the sale of the Fractional Ownership Units
and the Residential Condominium Units; and</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)&#160;&#160;&#160;&#160;&#160;&#160; Such other materials and
documents as Lender may reasonably require with respect to the Construction.</font></h3>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XI<br>
CONSTRUCTION BUDGET; RESERVES; OPERATING BUDGET</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Construction Budget</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Disbursements of the Loan shall be governed by the
Construction Budget.&#160; The Construction
Budget shall include, in addition to the Budget Line Items described in <u>Section
11.2</u> below, the Contingency Reserve and the Interest Reserve.&#160; Borrower shall not modify&#160; the Construction Budget without first
obtaining Lender&#146;s prior written consent thereto.&#160; Borrower may reallocate funds among Budget
Line Items in the Construction Budget as are reasonably necessary for the
Construction of the Improvements in Borrower&#146;s judgment, provided that (a)
funds may only be moved to or from any particular Budget Line Item once per
Budget Line Item without Lender&#146;s prior consent and (b) any individual Budget
Line Item shall not be reduced by more than five percent (5%).&#160; Borrower shall not otherwise modify the
Construction Budget without first obtaining Lender&#146;s prior written consent
thereto</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Budget Line Items</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; The Construction Budget
shall include as line items (&#147;<u>Budget Line Items</u>&#148;) all Hard Costs and
Soft Costs.&#160; All Loan proceeds disbursed
by Lender shall be used only for the Budget Line Items for which such proceeds
were disbursed.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; Lender shall not be
obligated to disburse any amount for any category of costs set forth as a
Budget Line Item which is greater than the amount set forth for such category
in the applicable Budget Line Item.&#160;
Borrower shall pay as they become due all amounts set forth in the Construction
Budget with respect to costs to be paid for by Borrower.&#160; If any Budget Line Item shall be (i)
completed without the expenditure of all amounts in the Construction Budget
allocated to such Budget Line Item or (ii) with regard to unfinished Budget
Line Items, to the extent Borrower can demonstrate to the satisfaction of
Lender that savings in the particular Budget Line Item exist that do not result
from either the Interest Reserve or the Contingency Reserve and such potential
savings do not result in an increase to</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the Construction Budget, then Borrower may reallocate savings, provided
that: (x) Borrower shall have submitted to Lender a revised Construction Budget
reflecting the reallocation of Budget Line Items; and (y) no Budget Line Item
for Hard Costs shall be reallocated to pay any Budget Line Item for Soft Costs
until Borrower has paid all Hard Costs and completed the Improvements.</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.3</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Contingency Reserve</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Construction Budget shall contain a Budget Line
Item for additional, unforeseen costs and expenses (the &#147;<u>Contingency Reserve</u>&#148;).&#160; Borrower may from time to time request that
Lender permit the reallocation of portions of the Contingency Reserve to pay
costs of the Project for which amounts remaining in any Budget Line Item are
insufficient.&#160; Borrower agrees that the decision
with respect to utilizing portions of the Contingency Reserve in order to keep
the Loan &#147;In Balance&#148; shall be made by Lender in its reasonable discretion, and
that Lender may require Borrower to make a Deficiency Deposit even if funds
remain in the Contingency Reserve.&#160;&#160;
Notwithstanding the foregoing, Lender hereby agrees that a proportion of
the Contingency Reserve equal to the completed percentage of the Project, up to
50% of sums then in the Contingency Reserve (and not utilized, reallocated or used
to keep the Loan In Balance), may be reallocated to pay costs of the Project
without Lender&#146;s consent, provided that Borrower delivers to Lender a
certificate from the Architect confirming the completed percentage of the
Project prior to any such reallocation.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.4</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Interest Reserve</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Construction Budget shall contain a Budget Line
Item for payment of interest due in respect of the Loan (the &#147;<u>Interest
Reserve</u>&#148;).&#160; Borrower hereby
authorizes Lender from time to time, for the mutual convenience of Lender and
Borrower, to disburse Loan proceeds to pay all accrued interest on the Note, to
the extent then due and payable, regardless of whether Borrower shall have
specifically requested disbursement of such amount.&#160; Any such disbursement, if made, shall be
added to the outstanding principal balance of the Note and shall, when
disbursed, bear interest at the Applicable Rate.&#160; The authorization hereby granted, however,
shall not obligate Lender to make disbursements of the Loan for interest
payments, unless Borrower requests, and qualifies for, disbursement of the
portion of the Construction Budget allocated therefor.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.5</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Tax and Insurance Reserve</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Construction Budget shall contain Budget Line
Items for payment of real estate taxes and Insurance Premiums (the &#147;<u>Tax and
Insurance Reserve</u>&#148;).&#160; Borrower hereby
authorizes Lender from time to time, for the mutual convenience of Lender and
Borrower, to disburse Loan proceeds to pay real estate taxes and Insurance
Premiums, to the extent then due and payable, regardless of whether Borrower
shall have specifically requested disbursement of such amount.&#160; Any such disbursement, if made, shall be
added to the outstanding principal balance of the Note and shall, when disbursed,
bear interest at the Applicable Rate.&#160;
The authorization hereby granted, however, shall not obligate Lender to
make disbursements of the Loan for real estate taxes and Insurance Premiums,
unless Borrower requests, and qualifies for, disbursement of the portion of the
Construction Budget allocated therefor.</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.6</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>[Intentionally Deleted]</u>.</h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.7</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>[Intentionally Deleted]</u>.</h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 11.8</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>[Intentionally Deleted]</u>.</h2>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XII<br>
SUFFICIENCY OF LOAN</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 12.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Loan In Balance</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Anything contained in this Agreement to the contrary
notwithstanding, the Loan shall at all times be &#147;In Balance&#148;, on a Budget Line
Item basis and in the aggregate.&#160; A
Budget Line Item shall be deemed to be &#147;In Balance&#148; only if Lender, in its
reasonable discretion, determines that the amount of such Budget Line Item is
sufficient for its intended purpose.&#160; The
Loan shall be deemed to be &#147;<u>In Balance</u>&#148; in the aggregate only when the
total of the undisbursed portion of the Loan plus the undisbursed balance of
Available Contract Deposits, less the Contingency Reserve (such total being the
&#147;<u>Available Funds</u>&#148;), equals or exceeds the aggregate of: (i) the costs
required to complete the Construction in accordance with the Plans and
Specifications and the Construction Budget; (ii) the amounts to be paid as
retainages to persons who have supplied labor or materials to the Project;
(iii) the amount required to pay interest on the Loan through the Maturity
Date; (iv) amounts required to be refunded or otherwise paid to any contract
vendee under a Contract of Sale; and (v) all other Hard Costs and Soft Costs
not yet paid for in connection with the Project, as such costs and amounts
described in clauses (i) through (v) above may be estimated and/or approved in
writing by Lender from time to time (such costs and amounts in (i) through (v)
being the &#147;<u>Outstanding Loan Costs</u>&#148;).&#160;
If, in Lender&#146;s reasonable determination, either any Budget Line Item is
insufficient for such purpose or the aggregate amount of the Available Funds is
less than Outstanding Loan Costs, then Borrower shall, within fifteen (15) days
after written request by Lender, (with simultaneous copies of such written
request sent to Guarantors), deposit the deficiency with Lender (a <b>&#147;</b><u>Deficiency Deposit</u>&#148;).&#160; The Deficiency Deposit shall first be
exhausted before any further disbursement of the applicable Loan proceeds shall
be made.&#160; Any Deficiency Deposit
remaining after a particular Budget Line Item or the Loan, as the case may be,
is back &#147;In Balance&#148; shall be returned to Borrower.&#160; Lender shall not be obligated to make any
Loan disbursements if and for as long as the Loan is not &#147;In Balance&#148;.&#160;&#160;&#160; Notwithstanding anything contained herein
to the contrary, Lender will forbear from requiring collection of any
Deficiency Deposit until the earlier of (a) February 11, 2007 or (b) the date
the Public Report is filed and one or more Contract Deposits become Available
Contract Deposits.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XIII<br>
CONSTRUCTION PAYOUT REQUIREMENTS</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 13.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Documents to be Furnished for Each
Disbursement</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As a condition precedent to each disbursement of Loan
proceeds (other than the Initial Advance and disbursements for Pre-Development
Costs (but excluding Pre-Development Hard </font></p>


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<p style="margin:0pt 0pt .0001pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Costs) in accordance with
<u>Article IX</u>), Borrower shall furnish or cause to be furnished to Lender
the following documents covering such disbursement, in form and substance
satisfactory to Lender:</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; A Requisition, duly
executed by an Authorized Representative;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; An AIA form of cost
certification, executed by the General Contractor, as to all Hard Costs
included within the request for disbursement;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; An Architect&#146;s
Certificate with respect to the Improvements completed included within the
request for disbursement;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; Such invoices, contracts
or other information as Lender may require to evidence that Borrower has incurred
all costs covered by the request for disbursement;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; An executed, acknowledged
lien waiver from General Contractor in respect of all Hard Costs covered by the
prior disbursement of the Loan;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; Paid receipts or other
proof of payment of all Soft Costs covered by the prior disbursement of the
Loan;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; An endorsement to the
Title Policy though the date of the disbursement, confirming the first priority
lien position of the Mortgage, subject only to the Permitted Exceptions;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160; Copies of any Change Orders
executed since the date of the last disbursement;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160; Copies of all
Construction Contracts which have been executed since the last disbursement;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160; All Permits and all
other Governmental Approvals then required in respect of the Construction, all
of which must be assigned to Lender (to the extent permitted under applicable
law) as security for the Debt;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160; Copies of Contracts of
Sale which have been executed since the last disbursement, all of which must be
assigned to Lender as security for the Debt;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160; Evidence that Borrower
has made or shall simultaneously make an equity contribution for payment of
expenses included in the Construction Budget in an amount of forty percent
(40%) of the total construction costs incurred through the date of the requested
disbursement up to the aggregate amount of the Equity Requirement; and</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160; Such other instruments,
documents and information as Lender or Title Insurer may reasonably request.</font></h3>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each disbursement shall be made approximately ten (10)
days after Borrower&#146;s satisfaction of the foregoing conditions to the making of
such disbursement.</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 13.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Retainage</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Disbursement of Loan
proceeds for payment to the General Contractor will be consistent with the
retainage provisions to be included in the General Contract. The retainage
provisions of the General Contract may be written to allow reduction of
retainage at fifty percent (50%) completion of the entire work covered by the
General Contract so long as at no point during the course of construction is
the retainage less than five percent (5%) of the value of the work completed,
except in the case of those components of the work which are one hundred
percent (100%) complete, in which case retainage related to such fully
completed work can be released.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 13.3</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Disbursements for Stored Materials</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any requests for
disbursements which in whole or in part relate to materials, equipment or
furnishings which Borrower owns and which are not incorporated into the
Improvements as of the date of the request for disbursement, but are to be
temporarily stored at the Project or off-site, shall be made in an aggregate
amount not to exceed $5,000,000.00 at any time, unless Lender consents, in its
sole discretion, to a greater amount.&#160; Any
such request must be accompanied by evidence satisfactory to Lender that (i)
such stored materials and the storage facility are included within the coverage
of the Policies, (ii) the ownership of such materials is vested in Borrower
free of any liens and claims of third parties, (iii) such materials are
properly insured and protected against theft or damage, (iv) unless Lender has
waived such requirement in writing, Lender&#146;s Consultant has viewed and
inspected the stored materials, and (v) in the opinion of Lender&#146;s Consultant,
the stored materials are physically secured and can be incorporated into the
Project within three hundred sixty (360) days.&#160;
Lender may require separate Uniform Commercial Code financing statements
to cover any such stored materials.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XIV<br>
FINAL DISBURSEMENT FOR CONSTRUCTION COSTS</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 14.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Final Disbursement for
Construction Costs</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lender will advance to Borrower the final disbursement
for costs of Construction (including retainages) when the following conditions
have been satisfied, provided that all other conditions in this Agreement for
disbursements have also been satisfied:</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; There shall exist no
Default or Event of Default.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; The Improvements have
been completed in substantial accordance with the Plans and Specifications,
free and clear of Liens, and are ready for occupancy;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with copies of all licenses and permits required by
Governmental Authorities for the occupancy of the Improvements, including,
without limitation, Certificates of Occupancy in respect of all of the Units;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with final conditional or unconditional lien waivers, executed
and acknowledged by General Contractor, Architect and all Subcontractors;</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; Lender shall have
received an affidavit, on AIA Form G706 or equivalent, of payment of debts and
claims executed by the General Contractor;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with a certificate from the Architect stating that (i) the
Improvements have been substantially completed in accordance with the Plans and
Specifications, and (ii) the Improvements, as so substantially, completed
comply with all Laws;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; Lender shall have
received a written certification on AIA Form G706A or equivalent from Borrower&#146;s
Architect that each final punchlist item for the Improvements has been
completed and same have been reviewed and approved by Lender&#146;s Consultant;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160; Lender shall have
received a certificate from Lender&#146;s Consultant for the sole benefit of Lender
that the Improvements have been completed substantially in accordance with the
Plans and Specifications;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160; Lender shall have
received and approved an ALTA Endorsement 100 and such other title insurance
endorsements as it may require to the Title Policy insuring that the
Improvements have been completed free of mechanics&#146; liens encumbering all or
any portion of the Project;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160; At the request of
Lender, Borrower will make available to Lender a complete set of red-lined &#147;as
built&#148; plans for the Improvements, as completed;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160; There shall be no
statutory Liens filed of record or notice of intent to file such a Lien
delivered to Borrower or Lender for labor or material arising out of the
construction of the Improvements; unless, if there are any such Liens, Borrower
shall have made arrangements reasonably satisfactory to Lender for the
disposition or bonding thereof pursuant to <u>Section 16.1(g)</u>;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160; At Lender&#146;s request,
Lender shall have received the final list of personal property pursuant to <u>Section
16.1(p)</u>; and</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160; Lender shall have
received, at Borrower&#146;s expense, a current, certified ALTA &#147;as-built&#148;
improvement survey, locating all property lines, building set back lines,
easements and the Improvements, parking spaces, and such other matters as shall
be required by Lender.</font></h3>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If Borrower fails to comply with and satisfy any of
the final disbursement conditions contained in this <u>Section 14.1</u> on or
before the Completion Date, such failure shall constitute an Event of Default
hereunder.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 14.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Retainage</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding the provisions of <u>Section 14.1</u>
above, the disbursement of the retainage that has not been released pursuant to
Section 13.2 shall be subject to the retention of such sums as Lender&#146;s
Consultant shall determine are necessary to assure full completion of
punch-list</font></p>


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<p style="margin:0pt 0pt .0001pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">items.&#160; Upon the completion of such punch-list items,
Lender shall disburse any remaining retainage to Borrower.</font></p>

<h1 align="center" style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XV</font></b><b><br>
</b><b>CONDOMINIUM COVENANTS</b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Contracts of Sale</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Borrower shall not enter into any
Contracts of Sale, other than Qualifying Contracts of Sale.&#160; Unless Borrower has theretofore obtained
Lender&#146;s prior written consent thereto, Borrower may not enter into Contracts
of Sale with Guarantor, or Affiliates of Borrower or Guarantor.&#160; Notwithstanding the previous sentence, Lender
hereby consents to the sale of Units pursuant to the ER Purchase Agreement and
Lender&#146;s consent shall not be required with respect to immaterial amendments to
the form Contract of Sale previously approved by Lender for sale of each
individual Unit to be sold under the ER Purchase Agreement, to conform to the
ER Purchase Agreement, provided that no amendment shall be made to the sale
price set forth in the ER Purchase Agreement in effect on the date hereof.&#160; Lender shall not unreasonably withhold such
consent, provided that the applicable Contract of Sale (i) satisfies the
requirements of the definition of &#147;Qualifying Contract of Sale&#148; contained
herein and (ii) is otherwise on an arm&#146;s length, commercially reasonable
basis.&#160; All Contracts of Sale entered
into by Borrower after the Effective Date shall be covered by the Assignment of
Purchase Contracts and, in each case, if required by Lender, by a separate
assignment in form and substance similar to the Assignment of Purchase
Contracts.&#160; Notwithstanding anything to
the contrary in this Agreement, Lender hereby consents to the sale of Units
pursuant to the ER Purchase Agreement and any individual purchase agreements
entered into pursuant to the ER Purchase Agreement so long as the purchaser
under each such individual agreement is Exclusive Resorts or any of its
Affiliates.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; All Contract Deposits
shall be deposited and held in the Condominium Deposit Account until such time
as (i) a purchaser becomes entitled to the refund thereof in accordance with
the terms of its Contract of Sale or (ii) the closing occurs under a Contract
of Sale, whereupon the Contract Deposit shall be applied on account of the
payment required under <u>Section 15.4(h)</u> below.&#160; If (x) a purchaser defaults under a Contract
of Sale and (y) the Contract Deposit is paid to Borrower, Borrower shall pay
such Contract Deposit to Lender, for application to the Debt in such order of
priority as Lender shall elect in its sole discretion.&#160; Notwithstanding the above, Borrower shall
first apply the Available Contract Deposits towards funding the Construction
pursuant to the Construction Budget, provided that: (i) Borrower has duly
complied with all applicable laws pertaining to the use of such Contract
Deposits for construction costs and delivers to Lender Borrower&#146;s certification
as to such compliance in accordance with Section 10.1(k), (ii) Borrower
delivers to Lender documentation that complies with Sections 9.1(b) and (c) of
this Agreement, (iii) Borrower has duly complied with Article X of this
Agreement, and (iv) no Event of Default has occurred and is continuing.</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Residential Condominium</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Borrower has submitted
the Development Property to the provisions of the Condominium Act and will
satisfy all of the requirements thereof and of any other applicable law or
restriction necessary to create a valid residential condominium regime in
respect of the Residential Property (the &#147;<u>Residential Condominium</u>&#148;),
provided that the form and substance of the Condominium Documents including,
without limitation, the Residential Condominium Unit designations,
descriptions, floor plans, sale prices and proposed form of Contract of Sale
for the Residential Condominium Units, as well as the description of common
elements and breakdown of common interests appurtenant to each Residential
Condominium Unit, shall be subject to the written approval of Lender prior to
such submission;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; From and after the
creation of the Residential Condominium, Borrower shall observe and perform the
following covenants:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall pay all common charges and&#160; other
assessments as required by the Condominium Documents in respect of unsold
Residential Condominium Units and shall promptly upon demand exhibit to Lender
receipts for all such payments;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall not, without first obtaining Lender&#146;s prior written consent (which
consent, except for item (4), shall not be unreasonably withheld): (1) vote for
or consent to any modification of, amendment to or relaxation in the
enforcement of any provision of the Condominium Documents; (2) in the event of
damage to or destruction of the Residential Property, vote in opposition to a
motion to repair, restore or rebuild; (3) partition or subdivide any
Residential Condominium Unit; or (4) consent to the termination of the
Residential Condominium;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall fully and faithfully observe, keep and perform, in all material respects,
each and every requirement, condition, covenant, agreement and provisions under
the Condominium Act and the Condominium Documents on the part of Borrower to be
observed, kept and performed.&#160; Borrower
shall promptly deliver to Lender a copy of any notice of default received by
Borrower with respect to any obligation of Borrower under the provisions of the
Condominium Documents or the Condominium Act;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall promptly submit to Lender copies of executed Contracts of Sale, notices
of cancellation of Contracts of Sale, and monthly reports in writing specifying
the number and type of Residential Condominium Units sold, Residential
Condominium Unit designation, purchase price for each Residential Condominium
Unit, name and address of the purchasers, number of Residential Condominium
Units closed during the preceding month, and any other information relevant to
the sales program reasonably requested by Lender from time to time; and</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; not
rent or lease any Residential Condominium Unit or other portions of the
Residential Property, without Lender&#146;s prior written consent.</font></h4>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.3</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Fractional Ownership Units</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Prior to the Construction
Commencement Date, Borrower shall submit the Fractional Ownership Units to the
provisions of the Fractional Ownership Act and will satisfy all of the
requirements thereof and of any other applicable law or restriction necessary
to create a valid fractional ownership regime in respect of the Fractional Ownership
Units, provided that the form and substance of the Fractional Ownership
Documents including, without limitation, the Fractional Ownership Unit
designations, sale prices and proposed form of Contract of Sale for the
Fractional Ownership Units, and breakdown of common interests appurtenant to
each Fractional Ownership Unit, shall be subject to the written approval of
Lender prior to such submission;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; Provided that no Event of
Default exists, Lender shall (i) consent to the execution and recording of the
Fractional Ownership Declaration, (ii) take such other actions as shall be
reasonably necessary to effectively transfer the lien of the Mortgage from the
Project to the Fractional Ownership Units created and covered by the Fractional
Ownership Declaration, together with their respective proportionate shares of
common elements, and (iii) execute and deliver such reasonable instrument as
shall be required to subordinate the lien of the Mortgage to the Fractional
Ownership Declaration; provided that Borrower satisfies the following
conditions:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall have verified that the Fractional Ownership Documents have been approved
by any Governmental Authority from whom approval is required, and Borrower
shall have furnished Lender with executed counterparts of the Fractional
Ownership Documents;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall deliver to Lender the Fractional Ownership Opinion with respect to the
Fractional Ownership;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Title
Insurer shall have agreed, in writing, to insure that, upon the creation of the
Fractional Ownership Units, the Mortgage shall constitute a first priority
mortgage lien in respect of each of the condominium units created thereby;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall deliver to Lender an assignment of Special Declarant&#146;s Rights under the
Fractional Ownership Documents in the form approved by Lender; and</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall have furnished Lender with the form of Contract of Sale for the
Fractional Ownership Units and a summary of any material changes made to
executed Contracts of Sale, and a written report specifying the number of
Fractional Ownership Units sold, the Fractional Ownership Unit designation,
purchase price for each Fractional Ownership Interest and Fractional Ownership
Unit, name and address of the purchasers, number of Fractional Ownership Units
and Fractional Ownership Interests closed during the preceding reporting period
(it being acknowledged that Borrower utilizes a 13-period reporting cycle
annually), and any other information relevant to the sales program reasonably
requested by Lender from time to time (the &#147;<u>Fractional Sales Report</u>&#148;);
and</font></h4>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Borrower shall record
and/or file the Fractional Ownership Documents in the Office.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; From and after the
creation of the Fractional Ownership Units, Borrower shall observe and perform
the following covenants:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall pay all common charges and&#160; other
assessments as required by the Fractional Ownership Documents in respect of
unsold Fractional Ownership Units and shall promptly upon demand exhibit to
Lender receipts for all such payments;</font></h4>

<h4 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall not, without first obtaining Lender&#146;s prior written consent, (1) vote for
or consent to any modification of, amendment to or relaxation in the
enforcement of any provision of the Fractional Ownership Documents; (2) in the
event of damage to or destruction of the Residential Property, vote in
opposition to a motion to repair, restore or rebuild; (3) partition or
subdivide any Fractional Ownership Unit or Fractional Ownership Interest in
intervals less than one-twelfth (1/12</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>); or (4) consent to the termination of
the Fractional Ownership Interests;</h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall fully and faithfully observe, keep and perform, in all material respects,
each and every requirement, condition, covenant, agreement and provisions under
the Fractional Ownership Act and the Fractional Ownership Documents on the part
of Borrower to be observed, kept and performed.&#160;
Borrower shall promptly deliver to Lender a copy of any notice of
default received by Borrower with respect to any obligation of Borrower under
the provisions of the Fractional Ownership Documents or the Fractional
Ownership Act;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower
shall promptly submit to Lender a Fractional Sales Report monthly; and</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; not
rent or lease any Fractional Ownership Unit or other portions of the Residential
Property, without Lender&#146;s prior written consent.</font></h4>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.4</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Releases of Units</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Provided no Event of Default has occurred and is then
continuing, Lender agrees to release individual Units from the lien of the
Mortgage in accordance with and subject to all of the following terms,
provisions and conditions applicable to such Unit concurrently with the
satisfaction of the following:</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; The applicable
condominium declaration, and all amendments thereto required by Laws, has been
filed in the Office;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; The Unit to be released
is a separate tax lot and is not required to be included within the Project,
for purposes of any governmental rule or necessary or appropriate to satisfy or
facilitate the requirements or terms of any agreement;</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Construction of the Unit
to be released shall be complete and a Certificate of Occupancy shall have been
issued by the appropriate Governmental Authority for such Unit;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; The Unit and the
remaining portion of the Project and the&#160;
release of Unit and the conveyance shall be in compliance with all
applicable zoning, land use and other governmental rules and regulations of all
governmental authorities;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; The condominium
association governing the applicable Unit has been properly formed and
established;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; The applicable
condominium association shall have furnished to Lender at no cost or expense to
Lender, the insurance policy or policies which comply in all respects with the
requirements set forth in <u>Section 16.2</u> of this Agreement naming Lender,
said condominium association, and purchasers of each Unit, as their respective
interests may appear, as the insureds;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; The Unit to be released
is being sold pursuant to a Qualifying Contract of Sale or a Contract of Sale
entered into pursuant to the ER Purchase Agreement;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160; Borrower shall have
deposited in the Condominium Release Payment Account, concurrently with the
delivery of the release, immediately available funds in an amount equal to the
greater of (i) the Net Sale Proceeds in respect of the Unit and (ii)&#160; the amount which is 100% of the Release Price
of such Unit, for application to the Debt in such order of priority as Lender
shall elect in its sole discretion;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with a written request for a partial release, accompanied by
(i) a release document prepared by Borrower at Borrower&#146;s expense, in form and
content satisfactory to Lender, (ii) a schedule containing a list of those
Units previously released by Lender and those Units remaining to be released
and (iii) a photocopy of the final signed closing statement with respect to the
sale of the applicable Unit;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160; Borrower pays all
recording charges and out-of-pocket costs and expenses of Lender, including,
without limitation, reasonable, out-of-pocket attorneys&#146; fees, in connection
with any release (Lender&#146;s out-of-pocket costs and expenses not to exceed
$300.00 per each release that is requested and further provided that Lender
will endeavor to cause the Servicer to include such costs and expenses within
its Servicing Fees); and</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160; Releases of Units shall
not affect or impair the lien of the Mortgage and Lender&#146;s lien and security
interests created by the other Loan Documents as to Units not theretofore
released or the remaining portion of the Project, and said liens and security interests
shall continue in full force and effect as to the unreleased Units.</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.5</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Releases of Facilities</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Provided no Event of Default has occurred and is then
continuing, Lender agrees to release a Facility from the lien of the Mortgage
in accordance with and subject to all of the following terms, provisions and
conditions applicable to such Facility:</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; The Facility to be
released is a separate tax lot and is not required to be included within the
Project, for purposes of any governmental rule or necessary or appropriate to
satisfy or facilitate the requirements or terms of any agreement.&#160; </font>Borrower shall have submitted to Lender proof reasonably satisfactory to
Lender that following the release of a Facility, the Project shall continue to
have available to it all necessary utility and other services for the use,
occupancy and operation of the Project and same shall continue to have
adequate, unimpeded and unencumbered access for pedestrian and vehicular
ingress and egress onto adjacent public roads, including, without limitation,
any necessary cross-easements for access, parking, and utilities;</h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; Construction of the
Facility to be released shall be substantially complete;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Each Facility and the
remaining portion of the Project and the&#160;
release of Facility and the conveyance shall be in compliance with all
applicable zoning, land use and other governmental rules and regulations of all
governmental authorities;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; The Facility to be
released is being sold pursuant to the ML&amp;P Agreements;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; Borrower shall have
deposited to an account designated by Lender, prior to the delivery of the
release, immediately available funds in an amount equal to the greater of (i)
the Net Sale Proceeds in respect of the Facility and (ii)&#160; the amount which is 100% of the Release Price
of such Facility, for application to the Debt in such order of priority as
Lender shall elect in its sole discretion;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall have
furnished Lender with a written request for a partial release, accompanied by
(i) a release document prepared by Borrower at Borrower&#146;s expense, in form and
content reasonably satisfactory to Lender, (ii) a schedule containing a list of
those Facilities previously released by Lender and those Facilities remaining
to be released and (iii) a photocopy of the final signed closing statement with
respect to the sale of the applicable Facility;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; Borrower pays all
reasonable out-of-pocket costs and expenses of Lender, including, without
limitation, reasonable, out-of-pocket attorneys&#146; fees, in connection with any
release; and</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160; The Release of the
Facility shall not affect or impair the lien of the Mortgage and Lender&#146;s lien
and security interests created by the other Loan Documents as to Units and
Facilities not theretofore released or the remaining portion of the Project,
and said liens and security interests shall continue in full force and effect
as to the unreleased Units and Facilities.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt .0001pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160; Borrower and ML&amp;P shall have executed a &#147;Facilities
Operations and Standards Agreement&#148; (pursuant to Section 8.3(a)(5) of the Spa
Agreement) reasonably acceptable to Lender and shall have delivered a true and
correct copy of same to Lender.</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.6</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Breakage Costs</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower may, in its written request for a partial
release of the lien of the Mortgage, request that Lender apply all or any
portion of a Release Price to the Debt in such a manner as to avoid the
imposition of Breakage Costs on Borrower.&#160;
In such event, (i) Lender shall apply Release Prices to the Debt as
Interest Periods expire, in such a manner as to avoid the imposition of
Breakage Costs and (ii) interest shall accrue on such amounts at the Adjusted
LIBOR Rate until such time as amounts are applied to the Debt as aforesaid.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.7</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Indemnification</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower hereby agrees to indemnify, defend, and hold
Lender harmless against and from (a) any and all liability, loss, damage and
expense (including, without limitation, reasonable attorneys&#146; fees) which it
may incur or which may be asserted under or in connection with this Agreement
or the Condominium Documents, except to the extent due to Lender&#146;s gross
negligence or willful misconduct, and (b) any and all claims and demands
whatsoever which may be incurred by or asserted against Lender by reason of any
alleged obligations or undertakings on its part to perform or discharge any of
the terms, covenants and conditions contained therein, except to the extent due
to Lender&#146;s gross negligence or willful misconduct.&#160; The foregoing indemnification shall survive
the payment of the Debt.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.8</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Expenses</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall pay promptly upon demand all expenses,
including, without limitation, reasonable attorneys&#146; fees and expenses, incurred
by the Lender in connection with (i) its review of, and consent to, any of the
Condominium Documents, (ii) its subordination of&#160; the lien of the Mortgage to any of the
Condominium Documents, (iii) the delivery of partial releases and (iv) any other
matter contemplated by this <u>Article XV</u>.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XVI<br>
COVENANTS</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Certain Covenants</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; <u>Zoning/Entitlements</u>.&#160; Borrower represents, warrants and covenants
to Lender that (1) the Project is duly and&#160;
validly zoned for all of its intended uses, (2) except as specifically
set forth on <u>Exhibit B</u> attached hereto and made a part hereof (the &#147;<u>Outstanding
Entitlements</u>&#148;), all necessary permits, certificates, licenses, approvals,
authorizations, variances and other land use, zoning and subdivision entitlements
in order to complete the Project (the &#147;<u>Issued Entitlements</u>&#148;, together
with the Outstanding Entitlements, sometimes collectively referred to herein as
the &#147;<u>Entitlements</u>&#148;) exist as of the Effective Date, are in full force
and effect, and are not subject to revocation, suspension, forfeiture or
modification; (3) Borrower is in full compliance with all requirements of the
Issued Entitlements and is entitled to all rights and privileges thereunder;
(4) Borrower shall obtain all Outstanding Entitlements within the specified
time periods set forth in <u>Exhibit B</u> and shall deliver to Lender true and
complete copies of all Outstanding Entitlements within five (5) Business Days
following the issuance of any such Outstanding Entitlements; (5) Borrower shall
at all times, maintain the Entitlements in full force and effect throughout the
entire term of the Loan; (6) Borrower shall</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">not agree to any modification or to any termination of the Entitlements
without the express prior written consent of Lender, which consent shall be
deemed given by Lender if Lender fails to object within ten (10) Business Days
of a written request by Borrower for such consent and receipt by Lender of all
information reasonably necessary for Lender to make an informed decision; and
(7) Borrower has delivered to Lender true and complete copies, including all
filed or executed amendments thereto, of the Issued Entitlements.&#160; Borrower hereby assigns to Lender as
additional security for the payment in full of the Debt and the observance and
performance by Borrower of the terms, covenants and provisions of the Loan
Documents all right, title and interest which Borrower may have or may
hereafter acquire in and to the Entitlements.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; <u>Governmental Approvals</u>.&#160; Borrower shall maintain the Governmental Approvals
in connection with the Plans and Specifications and for the Project in full
force and effect throughout the terms of the Loan and to the extent such
Governmental Approvals have not been issued or obtained, Borrower shall (i)
take all steps necessary to have such Governmental Approvals issued by or
obtained from the appropriate Governmental Authorities within time periods
consistent with a construction project of this nature and satisfactory to
Lender in the exercise of Lender&#146;s reasonable discretion, and (ii) deliver
copies of such Governmental Approvals to Lender and maintain such Governmental
Approvals in full force and effect throughout the entire term of the Loan.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; <u>Plans and
Specifications</u>.&#160; Borrower has
submitted a true and complete copy of the Existing Plans and Specifications to
Lender and Lender has approved the Plans and Specifications.&#160;&#160; A description of the Plans and
Specifications approved by Lender is attached here to as <u>Exhibit E</u>.&#160; Lender shall, without additional cost or
expense, have the use of the Plans and Specifications upon the occurrence
beyond any applicable notice and cure period of an Event of Default under the
Loan Documents.&#160; Upon notice to Borrower,
Lender, Lender&#146;s Consultant and their respective agents and employees, shall
have the right of entry and access to the entire Project in connection with
their review of the Plans and Specifications or any other aspect of the
Project.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; <u>Construction of the
Improvements</u>.&#160; Borrower shall
commence Construction on or before the Construction Commencement Date.&#160; Borrower shall be deemed to have commenced
Construction upon Borrower&#146;s commencement of the excavation of the foundation
of the Improvements and the performance of continuous and substantial site
development work.&#160; Borrower shall perform
the Construction in a good and workmanlike manner with materials of high
quality and in substantial accordance with the Plans and Specifications.&#160; Borrower shall prosecute the Construction
with due diligence and continuity in accordance with the Construction Schedule
and shall substantially complete the Construction before the Completion
Date.&#160; All work performed in connection
with the Property shall comply with all Laws and all Governmental Approvals.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; <u>Change Orders</u>.&#160; No changes will be made in the Plans and
Specifications without the prior written approval of Lender, which shall not be
unreasonably withheld after Lender&#146;s initial approval of the final Plans and
Specifications; <u>provided</u>, <u>however</u>, that Borrower may make changes
to the Plans and Specifications without Lender&#146;s consent if (i) Borrower
notifies Lender in writing of such change within five (5) Business Days
thereafter;</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii) Borrower obtains the approval of all parties whose approval is
required, including sureties and Governmental Authorities; (iii) the structural
integrity of the Improvements is not impaired; (iv) no material change in
architectural appearance is effected; (v) the performance of the mechanical,
electrical, and life safety systems of the Improvements is not adversely
affected; and (vi) the cost of or reduction resulting from such change (x) does
not exceed $250,000.00 and (y) when added to all other changes which have not
been approved by Lender in writing, the resulting aggregate cost or reduction
does not exceed $5,000,000.00.&#160; Changes
in the scope of Construction or to any Construction Contract shall be
documented with a Change Order on the AIA Form G701.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; <u>Inspections</u>.&#160; Borrower will cooperate with Lender in
arranging for inspections by Lender and/or Lender&#146;s Consultant of the progress
of the Construction from time to time including an examination of (i) the
Improvements, (ii) all materials to be used in the Construction, (iii) all
plans and shop drawings which are or may be kept at the Construction site, (iv)
any contracts, bills of sale, statements, receipts or vouchers in connection
with the Improvements, (v) all work done, labor performed or materials
furnished in and about the Improvements, (vi) all books, contracts and records
with respect to the Improvements and (vii) any other documents relating to the
Improvements or the Construction. Borrower shall cooperate with Lender&#146;s
Consultant to enable it to perform its functions.&#160; Borrower shall, upon Lender or Lender&#146;s
Consultant&#146;s request, correct any defect in the Construction or any failure of
the Construction to comply with the Plans and Specifications.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; <u>Liens</u>.&#160; Borrower will not suffer or permit any
construction lien claims to be filed or otherwise asserted against the Project
or any funds due to the General Contractor, and will promptly discharge the
same in case of the filing of any claims for lien or proceedings for the
enforcement thereof, <u>provided</u>, <u>however</u>, that Borrower may contest
in good faith and with reasonable diligence the validity of any such lien or
claim, provided that Borrower posts a statutory lien bond which removes such
lien from title to the Project within thirty (30) days after Borrower&#146;s receipt
of written notice thereof.&#160; Lender will
not be required to make any further disbursements of the proceeds of the Loan
until any construction lien claims have been removed (by payment or by posting
a bond) and Lender may, at its option, restrict disbursements to reserve
sufficient sums to pay 150% of the lien.&#160;
If Borrower shall fail timely to (i) discharge any such lien or (ii)
post a statutory lien bond, Lender may, at its election (but shall not be
required to), procure the release and discharge of such lien and any judgment
or decree thereon and, further, may in its sole discretion, settle or
compromise the same, or may furnish such security or indemnity as Title Insurer
shall require to insure Lender against the enforcement thereof, and any amounts
so expended by Lender shall be added to the Debt.&#160; In settling, compromising or discharging any
claims for lien, Lender shall not be required to inquire into the validity or
amount of any such claim.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160; <u>Construction Contracts</u>.&#160; Borrower shall promptly comply in all
material respects with all provisions of the Construction Contracts which
require approval or action by Borrower in a timely manner to insure completion
of the Improvements within the Construction Schedule and in all events by the
Completion Date.&#160; Borrower shall not
materially modify or terminate the General Contract or any of the Major
Contracts without the prior written approval of Lender, which approval shall
not be unreasonably withheld.</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Promptly following its execution or modification thereof, Borrower
shall furnish Lender with a copy of each Construction Contract or modification
thereof.&#160; Promptly following its receipt
thereof, Borrower shall furnish Lender with a copy of any material notice
received or delivered by Borrower in respect of the Construction Contracts,
including, without limitation, any notice of default.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160; <u>Subsequent
Development Matters</u>.&#160; Borrower shall
not, subsequent to the Effective Date, enter into easements, covenants or
agreements regarding or affecting title to the Land or the Project or the
zoning, subdivision or land use classification of the Land without the prior
written consent of Lender, which consent shall not be unreasonably withheld
with respect to easements, covenants and agreements reasonably required to
effect the development of the Project for the uses intended by this Agreement.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160; <u>Certificate of
Occupancy</u>.&#160; Borrower shall obtain a
Certificate of Occupancy for all of the Units by no later than the third (3</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">rd</font>) anniversary of the Effective
Date.</h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160; [Intentionally Deleted].</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160; <u>Payment of Taxes</u>.&#160; Borrower shall pay all real estate taxes and
assessments and charges of every kind upon the Project before the same become
delinquent, provided, however, that Borrower may pay such tax under protest or
to otherwise contest any such tax or assessment, but only if (i) such contest
has the effect of preventing the collection of such taxes so contested and also
of preventing the sale or forfeiture of the Project or any part thereof or any
interest therein, (ii) Borrower has notified Lender of Borrower&#146;s intent to
contest such taxes, and (iii) Borrower has deposited security for the payment
of contested taxes in form and amount satisfactory to Lender.&#160; If Borrower fails to commence such contest
or, having commenced to contest the same, thereafter fails to prosecute such contest
in good faith or with due diligence, or, upon adverse conclusion of any such
contest, shall fail to pay such tax, assessment or charge, Lender may, at its
election (but shall not be required to), pay and discharge any such tax,
assessment or charge, and any interest or penalty thereon, and any amounts so
expended in excess of any security posted by Borrower shall be added to the
Debt.&#160; Borrower shall furnish Lender with
evidence that taxes are paid at least ten (10) days prior to the last date for
payment of such taxes and before imposition of any penalty or accrual of
interest.&#160; Notwithstanding the foregoing,
Lender shall not assert a default for failure to pay real estate taxes,
provided that (x) there exists no Event of Default and (y) adequate funds for
the payment of real estate taxes exist in the Tax Escrow Fund.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160; <u>Tax and Insurance
Escrow Fund</u>.&#160; From and after
substantial completion of the Improvements, in the event the unadvanced portion
of the Loan is insufficient for payment of real estate taxes and Insurance
Premiums, then upon request by Lender Borrower shall pay to Lender on each
Payment Date (i) one-twelfth (1/12) of an amount which would be sufficient to
pay the real estate taxes payable, or estimated by Lender to be payable, during
the ensuing twelve (12) months (the &#147;<u>Tax Escrow Fund</u>&#148;) and (ii)
one-twelfth (1/12) of the Insurance Premiums payable, or estimated by Lender to
be payable, during the ensuring twelve months (the &#147;<u>Insurance Escrow Fund</u>&#148;,
and, together with the Tax Escrow Fund, the &#147;<u>Tax and Insurance Escrow Fund</u>&#148;).&#160; Notwithstanding the foregoing, Lender shall
advance such amounts from the undisbursed balance of the Tax and Insurance
Reserve in accordance</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with the provisions of <u>Section 11.5</u> hereof, provided that (i) no
Event of Default exists, (ii) no dispute exists in respect of amounts to be
disbursed for the payment of real estate taxes or Insurance Premiums and (iii)
the line items in respect of real estate taxes and Insurance Premiums set forth
in the Construction Budget are in balance.&#160;
The Tax and Insurance Escrow Fund, the Servicing Fees and the monthly
installments of principal and interest payable under the Note shall be added
together and shall be paid as an aggregate sum by Borrower to Lender.&#160; Borrower hereby pledges to Lender any and all
monies now or hereafter deposited in the Tax and Insurance Escrow Fund as
additional security for the payment of the Debt.&#160; Lender will apply (i) the Insurance Escrow
Fund to insurance premiums required to be paid by Borrower pursuant to <u>Section
16.2</u> hereof and (ii) the Tax Escrow Fund to real estate taxes required to
be paid by Borrower under <u>Section 16.1(l)</u> hereof.&#160; If at any time the Tax and Insurance Escrow
Fund is not sufficient to pay real estate taxes or insurance premiums, Borrower
shall&#160; pay to Lender, within ten (10)
days after written demand, Lender&#146;s estimate of the amount required to remedy
the deficiency.&#160; Upon the occurrence of
an Event of Default, Lender may apply any sums then comprising the Tax and
Insurance Escrow Fund to the payment of the Debt in such order of priority as
Lender elects in its sole discretion.&#160;
Until expended or applied as above provided, any amounts in the Tax and
Insurance Escrow Fund shall constitute additional security for the Debt.&#160; To the extent permitted by applicable law,
the Tax and Insurance Escrow Fund shall not constitute a trust fund and may be
commingled with other monies held by Lender.&#160;
No earnings or interest on the Tax and Insurance Escrow Fund shall be
payable to Borrower.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160;&#160;&#160;&#160; [Intentionally Deleted].</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160;&#160;&#160;&#160;&#160; <u>Management Agreements</u>.&#160; Borrower shall not retain any property
manager or enter into any management agreement with respect to the management
or operation on any portion of the Project without the Lender&#146;s prior written
consent.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160;&#160;&#160;&#160;&#160; <u>Personal Property</u>.&#160; Except as hereinafter provided, Borrower
shall keep all Personal Property incorporated in the Project free of all liens,
encumbrances and security interests, other than the liens, encumbrances and
security interests in favor of Lender created by the Loan Documents.&#160; Prior to completion of the Improvements,
Borrower shall provide to Lender, when requested but no more frequently than
quarterly, an inventory of the Personal Property and shall execute such
financing statements as may be reasonably required by Lender to perfect Lender&#146;s
security interest on the same.&#160; No
Personal Property shall be purchased or installed in the Improvements by
Borrower under any security agreement, conditional sales contract or other
agreement wherein the seller reserves a security interest in, or the right to
remove or to repossess, such items or to consider them personal property after
their incorporation into the Improvements, except for capital leases approved
by Lender.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)&#160;&#160;&#160;&#160;&#160; <u>Leases</u>.&#160; Without the prior written consent of Lender,
which consent shall be deemed given by Lender if Lender fails to object within
ten (10) Business Days of a written request by Borrower for such consent and
receipt by Lender of all information reasonably necessary for Lender to make an
informed decision, Borrower shall not (i) enter into any lease of all or any
portion of the Project, (ii) materially modify any lease of any portion of the
Project or (iii) accept any rental payment in advance of one month of its due
date.&#160; Borrower shall provide Lender with
a copy of the fully executed original of all leases promptly</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">following their execution.&#160;
Borrower shall deposit all security deposits under leases in a
segregated account with a financial institution reasonably acceptable to
Lender.&#160; At Lender&#146;s request, Borrower
shall cause tenants to execute subordination, non-disturbance and attornment
agreements reasonably satisfactory to Lender.&#160;
Lender reserves the right to subordinate the lien of the Mortgage to any
lease.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)&#160;&#160;&#160;&#160;&#160;&#160; <u>Certain Agreements</u>.&#160; Without the prior written consent of Lender,
Borrower shall not modify or terminate (i) any of the ML&amp;P Agreements, (ii)
any of the Marketing Agreements, (iii) the Ground Lease, (iv) the ER Purchase
Agreement, (v) the Ritz-Carlton Consent Agreement, (vi) the ML&amp;P Consent
Agreement, (vii) any of the Development Documents, or (viii) the Condominium
Documents.&#160; Borrower shall timely observe
and perform all of its obligations under the foregoing agreements.&#160; Promptly after receipt thereof, Borrower
shall furnish Lender with a copy of any material notice received or delivered
by Borrower under any of the foregoing agreements, including, without
limitation, any notice of default.&#160; The
execution of a Contract of Sale for an individual Unit to be purchased by Exclusive
Resorts under the ER Purchase Agreement shall not be deemed such a modification
or termination as contemplated under this Section 16.1(r); provided that the
purchase price for such Unit is the same as set forth in the ER Purchase
Agreement. Notwithstanding anything to the contrary in this Agreement, Lender
acknowledges that (x) the Borrower and Exclusive Resorts have the right to
modify the ER Purchase Agreement and individual purchase agreements entered
into pursuant thereto prior to the initial execution of the individual purchase
agreements without Lender consent provided that such changes are not
inconsistent with the First Amendment to the ER Purchase Agreement between the
parties dated June __, 2006, that the purchase prices identified therein are
not modified and further provided that this section shall not be deemed to
waive Lender&#146;s consent rights to any amendment negotiated after the individual
agreements are signed, and (y) Borrower may make modifications or amendments to
the aforementioned agreements without Lender consent provided that such
amendments or modifications will solely affect portions of the Property that
are to be released by Lender pursuant to this Agreement from and after the
effective date of such release.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)&#160;&#160;&#160;&#160;&#160; <u>Appraisals</u>.&#160; Lender may obtain a new or updated Appraisal
of the Project from time to time.&#160;
Borrower shall cooperate with Lender in this regard.&#160; Notwithstanding the foregoing, Lender shall
not obtain a new or updated Appraisal more than once in any twelve (12) month
period, unless either (i) an Event of Default exists or (ii) such Appraisal is
then required under the terms of this Agreement.&#160; Borrower shall reimburse Lender upon demand
for the cost of any Appraisal obtained by Lender in accordance with the terms
of this Section <u>16.1(s)</u>.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(t)&#160;&#160;&#160;&#160;&#160;&#160; <u>Furnishing Information</u>.&#160; Borrower shall deliver or cause to be
delivered to Lender, (1) within one hundred twenty (120) days after the end of
each calendar year, with respect to Borrower and Guarantor, an annual financial
statement, in a form satisfactory to Lender, audited by an independent,
certified public accountant (or with respect to Exclusive Resorts and Exclusive
Resorts Development Company, LLC only, certified by an authorized officer of
Exclusive Resorts and Exclusive Resorts Development Company, LLC); (2) within sixty
(60) days after the end of each calendar quarter, with respect to Borrower, a
quarterly financial statement, in a form satisfactory to Lender; (3) within
thirty (30) days after the end of</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">each reporting period of Borrower (it being understood that Borrower
has a 13 period reporting cycle annually), with respect to Borrower, a monthly
financial statement, in a form satisfactory to Lender.&#160; Within ten (10) days after request by Lender,
Borrower shall deliver to Lender the most recently filed annual Federal Income
Tax Returns with respect to Borrower and Guarantor.&#160; Borrower and Guarantor shall provide such
additional financial information as Lender reasonably requires.&#160; Upon reasonable advance notice from Lender,
Borrower shall permit Lender or its representatives to review all of Borrower&#146;s
books and records regarding the development and operation of the Project.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(u)&#160;&#160;&#160;&#160;&#160; <u>Lost Note</u>.&#160; Upon Lender&#146;s delivery to Borrower of an
affidavit to such effect, Borrower shall, if the Note is mutilated, destroyed,
lost or stolen, deliver to Lender, in substitution therefor, a new note
containing the same terms and conditions.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160; <u>Indemnification</u>.&#160; Borrower shall indemnify Lender and any party
owning an interest in the Loan and their respective officers, directors,
employees and consultants (each, an &#147;<u>Indemnified Party</u>&#148;) and defend and
hold each Indemnified Party harmless from and against all claims, injury,
damage, loss and liability, cost and expense (including reasonable attorneys&#146;
fees and expenses and court costs) of any and every kind to any persons or
property by reason of (i) the Construction; (ii) the operation or maintenance
of the Project; (iii) any breach of representation or warranty, default or
Event of Default; or (iv) any other matter arising in connection with the Loan
or the Project.&#160; No Indemnified Party
shall be entitled to be indemnified against its own gross negligence or willful
misconduct.&#160; The foregoing
indemnification shall survive repayment of the Debt.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(w)&#160;&#160;&#160;&#160; <u>Compliance With Laws</u>.&#160; Borrower shall comply with all Laws
applicable to the Project.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)&#160;&#160;&#160;&#160;&#160; <u>Furnishing Reports</u>.&#160; Upon Lender&#146;s request, Borrower shall provide
Lender with copies of all inspections, reports, test results and other
information received by Borrower which in any way relate to the Project or any
part thereof.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(y)&#160;&#160;&#160;&#160;&#160; <u>Furnishing Notices</u>.&#160; Borrower shall provide Lender with copies of
all material notices pertaining to the Project received by Borrower from any
purchaser under any Contract of Sale, Governmental Authority, insurance company
or tenant within seven (7) days after such notice is received.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(z)&#160;&#160;&#160;&#160;&#160; <u>Correction of Defects</u>.&#160; Within five (5) days after Borrower acquires
knowledge of or receives notice of a defect in the Improvements or any
departure from the Plans and Specifications, or any other requirement of this
Agreement, Borrower will proceed with diligence to correct all such defects and
departures.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(aa)&#160;&#160;&#160; <u>Hold Disbursements in
Trust</u>.&#160; Borrower shall receive and
hold in trust for the sole benefit of Lender (and not for the benefit of any other
person, including, but not limited to, contractors or any subcontractors) all
advances made hereunder directly to Borrower, for the purpose of paying costs
of the Construction in accordance with the Construction Budget.&#160; Borrower shall use the proceeds of the Loan
solely for the payment of</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">costs specified in the Construction Budget.&#160; Borrower will pay all other costs, expenses
and fees relating to the acquisition, equipping, use and operation of the
Project.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(bb)&#160;&#160; <u>Alterations</u>.&#160; Without the prior written consent of Lender,
Borrower shall not make any material alterations to the Project (other than
completion of the Construction in accordance with the Plans and
Specifications).</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(cc)&#160;&#160;&#160; <u>Cash Distributions</u>.&#160; Borrower shall not make any distributions to
partners, members or shareholders of Borrower.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(dd)&#160;&#160; <u>Affiliate Contracts</u>.&#160; Borrower shall not enter into any contracts
or agreements after the date hereof with any Guarantor, Member, MII, or MLP/MII
Affiliate or any Affiliate of any of the foregoing without Lender&#146;s prior
written consent.</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Insurance</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Borrower shall obtain and
maintain, or cause to be maintained, insurance for Borrower and the Project as
follows:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; comprehensive
all risk insurance on the Improvements and the Personal Property, including
contingent liability from Operation of Building Laws, Demolition Costs and
Increased Cost of Construction Endorsements, in each case (A) in an amount
equal to one hundred percent (100%) of the &#147;Full Replacement Cost,&#148; which for
purposes of this Agreement shall mean actual replacement value (exclusive of
costs of excavations, foundations, underground utilities and footings) with a
waiver of depreciation, but the amount shall in no event be less than the
outstanding principal balance of the Loan; (B) containing an agreed amount
endorsement with respect to the Improvements and Personal Property waiving all
co-insurance provisions; (C) permitting no deductible in excess of $50,000.00;
and (D) containing an &#147;Ordinance or Law Coverage&#148; or &#147;Enforcement&#148; endorsement
if any of the Improvements or the use of the Project shall at any time
constitute legal non-conforming structures or uses.&#160; In addition, Borrower shall obtain:&#160; (y) if any portion of the Improvements is
currently or at any time in the future located in a federally designated &#147;special
flood hazard area&#148;, flood hazard insurance in an amount equal to the lesser of
(1) the outstanding principal balance of the Loan or (2) the maximum amount of
such insurance available under the National Flood Insurance Act of 1968, the
Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform
Act of 1994, as each may be amended or such greater amount as Lender shall
require; and (z) earthquake insurance in amounts and in form and substance
satisfactory to Lender in the event the Project is located in an area with a
high degree of seismic activity.</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; commercial
general liability insurance against claims for personal injury, bodily injury,
death or property damage occurring upon, in or about the Project, such
insurance (A) to be on the so-called &#147;occurrence&#148; form with a combined limit,
of not less than $2,000,000.00, (B) to continue at not less than the aforesaid
limit until required to be changed by Lender in writing by reason of changed
economic conditions making such protection inadequate; and (C) to cover at
least the following hazards:&#160; (1)
premises and operations; (2) products and completed operations on an &#147;if any&#148;
basis; (3) independent contractors; (4) blanket contractual</font></h4>


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<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">liability for all legal contracts; and (5)
contractual liability covering the indemnities contained in Loan Agreement;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; intentionally
omitted;</font></h4>

<h4 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the insurance provided for in subsection (i) above
written in a so called builder&#146;s risk completed value form (1) on a non-reporting
basis, (2) against all risks insured against pursuant to subsection (i) above,
(3) including all building material stored at the designated site (including on-site and off-site storage at specific locations), (4) including all Soft Costs, (5) including
permission to occupy the Improvements and (5) with an agreed amount endorsement
waiving coinsurance provisions.</h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; workers&#146;
compensation, subject to the statutory limits of the State, and employer&#146;s
liability insurance with a limit of at least $1,000,000.00 per accident and per
disease per employee, and $1,000,000.00 per accident and per disease in the
aggregate in respect of any work or operations on or about the Project, or in
connection with the Project or its operation (if applicable);</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; comprehensive
boiler and machinery insurance, if applicable, in amounts as shall be
reasonably required by Lender on terms consistent with the commercial property
insurance policy required under <u>subsection (i)</u> above;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; umbrella
liability insurance in an amount not less than $100,000,000.00, with the
primary $1,000,000.00 on an occurrence basis and the excess $100,000,000.00 on
an aggregate basis, on terms consistent with the commercial general liability
insurance policy required under <u>subsection (ii)</u> above;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; motor
vehicle liability coverage for all owned and non-owned vehicles, including
rented and leased vehicles containing minimum limits per occurrence, including
umbrella coverage, of $101,000,000.00;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ix)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; insurance
for loss resulting from perils and acts of terrorism on terms (including
amounts) consistent with the insurance required under subsections <u>(i)</u>, <u>(ii)</u>,
<u>(iii)</u>, <u>(iv)</u>, <u>(vi)</u> and <u>(vii)</u> above (subject to a
deductible that is satisfactory to the Lender) at all times during the term of
the Loan; and</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-autospace:none;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; marina operations insurance, at such time as
operations at any marina shall commence, including: (A) liability insurance
arising from loss or damage to private pleasure craft and small commercial
watercraft; and (B) bodily injury and property damage liability;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-autospace:none;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; all-risk marine cargo insurance on an annual basis
covering cargo worldwide in the event of physical loss or damage from external
causes in the amount of not less than 110% of the C.I.F. value, such insurance
to include: (A) while cargo is in the normal course of transit from the point
of origin; (B) marine business interruption insurance; (C) processing of cargo
in foreign countries; (D) on-site and off-site storage at specific locations;
and (E)&nbsp;exhibition coverage;</font></h4>


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<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; upon
thirty (30) days&#146; written notice from Lender, such other reasonable insurance,
in such reasonable amounts, as Lender from time to time may reasonably request
against such other insurable hazards which at the time are commonly insured
against for property similar to the Project located in or around Kapalua,
Hawaii.</font></h4>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; All insurance provided
for in <u>Section 16.2(a)</u> hereof shall be obtained under valid and
enforceable policies (collectively, the &#147;<font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font color="black" style="font-weight:normal;">Policies</font></u></b></font>&#148;
or in the singular, the &#147;<font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font color="black" style="font-weight:normal;">Policy</font></u></b></font>&#148;), and shall be subject to the approval
of Lender as to insurance companies, amounts, deductibles, loss payees and
insureds.&#160; The Policies shall be issued
by financially sound and responsible insurance companies authorized to do
business in the State and having a claims paying ability rating of &#147;A&#148; or
better by S&amp;P or &#147;A2&#148; or better by Moody&#146;s.&#160;
The Policies described in Section 16.2(a) (other than those strictly
limited to liability protection) shall designate Lender as loss payee.&#160; Not less than ten (10) days prior to the
expiration dates of the Policies theretofore furnished to Lender, certificates
of insurance evidencing the renewal of the Policies, accompanied by evidence
satisfactory to Lender of payment of the premiums thereunder (the &#147;<font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font color="black" style="font-weight:normal;">Insurance Premiums</font></u></b></font>&#148;),
shall be delivered by Borrower to Lender.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Any blanket insurance
Policy shall specifically allocate to the Project the amount of coverage from
time to time required hereunder and shall otherwise provide the same protection
as would a separate Policy insuring only the Project in compliance with the
provisions of Section 16.2(a) hereof.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; All Policies of insurance
provided for by Section 16.2(a) hereof, except for the Policy referred to in
Section 16.2(a)(v) hereof, shall name Borrower as the insured and Lender as the
additional insured, as its interests may appear, and in the case of property
damage, boiler and machinery, flood and earthquake insurance, shall contain a
so-called New York standard non-contributing mortgagee clause (or its
equivalent) in favor of Lender providing that the loss thereunder shall be
payable to Lender.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; All Policies of insurance
provided for in Section 16.2(a) hereof shall contain clauses or endorsements to
the effect that:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; no
act or negligence of Borrower, or anyone acting for Borrower, or of any tenant
or other occupant of the Project, or failure to comply with the provisions of
any Policy, which might otherwise result in a forfeiture of the insurance or
any part thereof, shall in any way affect the validity or enforceability of the
insurance insofar as Lender is concerned;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the
Policy shall not be materially changed (other than to increase the coverage
provided thereby) or canceled without at least thirty (30) days&#146; prior written
notice to Lender and any other party named therein as an additional insured;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the
issuers thereof shall give written notice to Lender if the Policy has not been
renewed fifteen (15) days prior to its expiration; and</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Lender
shall not be liable for any Insurance Premiums thereon or subject to any
assessments thereunder.</font></h4>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; If at any time Lender is
not in receipt of written evidence that all insurance required hereunder is in
full force and effect, Lender shall have the right, without notice to Borrower,
to take such action as Lender deems necessary to protect its interest in the
Project, including, without limitation, the obtaining of such insurance
coverage as Lender in its sole discretion deems appropriate.&#160; All Insurance Premiums incurred by Lender in
connection with such action or in obtaining such insurance and keeping it in
effect shall be paid by Borrower to Lender upon demand and, until paid, shall
be secured by the Mortgage and shall bear interest at the Default Rate.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; The Borrower may obtain the insurance
required hereunder from any insurance company of the Borrower&#146;s choice that is
acceptable to the Lender, which acceptance shall not be unreasonably
withheld.&#160; The Lender&#146;s nonacceptance of
an insurer shall not be deemed unreasonable if it is based upon reasonable
standards, uniformly applied, relating to the extent of coverage required and
the financial soundness and services of the insurer.&#160; Such standards shall not discriminate against
any particular insurer nor shall such standards call for rejection of an insurance
contract because the contract contains coverage in addition to that required
under this Agreement.</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.3</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Special Purpose Covenants</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; The purpose for which
Borrower is organized is and shall be limited solely to (i) owning, developing,
holding, constructing, selling, leasing, transferring, exchanging, operating
and managing the Project, (ii) entering into this Agreement and the other Loan
Documents and (iii) transacting any business that is incident, necessary and
appropriate to accomplish the foregoing.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; Except for the hotel
previously operated on the Development Land, Borrower has not owned, does not
own and will not own any asset or property other than (i) the Project and (ii)
incidental personal property necessary for and used or to be used in connection
with the ownership or operation of the Project.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Borrower has not engaged
in and will not engage in any business other than the ownership, construction,
development, management and operation of the Project.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; Borrower has not entered
and will not enter into any contract or agreement with any Affiliate of
Borrower, any constituent party of Borrower, any Guarantor of the obligations
of Borrower or any Affiliate of any constituent party, owner or guarantor
(collectively, the &#147;<u>Related Parties</u>&#148;), except upon terms and conditions
that are intrinsically fair, commercially reasonable and substantially similar
to those that would be available on an arms-length basis with third parties not
so affiliated with Borrower or such Related Parties and at all times subject to
the prior written consent of Lender.&#160; The
ML&amp;P Agreements, Marketing Agreements and ER Purchase Agreements are hereby
approved by Lender.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; Except for the Loan,
Borrower shall neither incur nor guarantee any indebtedness (whether personal
or non-recourse, secured or unsecured) other than customary trade payables
contemplated by the Construction Budget, aged not in excess of sixty (60) days,
and unsecured loans from members of Borrower that are subordinate to the Loan.</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; Borrower has not made
and will not make any loans or advances to any Person and shall not acquire
obligations or securities of any Related Party.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; Borrower is and will
remain solvent and Borrower will pay its debts and liabilities (including, as
applicable, shared personnel and overhead expenses) from its assets as the same
shall become due.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160; Borrower has done or
caused to be done and will do all things necessary to observe organizational
formalities and preserve its existence, and Borrower will not, nor will
Borrower permit any Related Party to, amend, modify or otherwise change the
partnership certificate, partnership agreement, articles of incorporation and
bylaws, operating agreement, trust or other organizational documents of
Borrower or such Related Party without the prior written consent of Lender.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160; Borrower has maintained
and will maintain all of its books, records, financial statements and bank
accounts separate from those of any other Person and Borrower&#146;s assets will not
be listed as assets on the financial statement of any other Person.&#160; Borrower has filed and will file its own tax
returns and will not file a consolidated federal income tax return with any
other Person.&#160; Borrower shall maintain
its books, records, resolutions and agreements as official records.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160; Borrower will be, and at
all times will hold itself out to the public as, a legal entity separate and
distinct from any other Person (including any Affiliate or other Related
Party), shall correct any known misunderstanding regarding its status as a
separate entity, shall conduct business in its own name, shall not identify
itself or any of its Affiliates as a division or part of the other and shall
maintain and utilize separate stationery, invoices and checks.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160; Borrower will maintain
adequate capital for the normal obligations reasonably foreseeable in a
business of its size and character and in light of its contemplated business
operations.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160; Neither Borrower nor any
Related Party will seek the dissolution, winding up, liquidation, consolidation
or merger in whole or in part of Borrower, or the sale of material assets of
Borrower.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160; Borrower has not
commingled and will not commingle its assets with those of any other Person and
will hold all of its assets in its own name;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160;&#160;&#160;&#160; Borrower has not
guaranteed and will not guarantee or become obligated for the debts of any
other Person and does not and will not hold itself out as being responsible for
the debts or obligations of any other Person.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160;&#160;&#160;&#160;&#160; If Borrower is a limited
partnership or a limited liability company, at least one (1) general partner or
member, or if Borrower is a general partnership at least one (1) general
partner (each, an &#147;<u>SPC Party</u>&#148;) shall be a corporation or limited
liability company whose sole asset is its interest in Borrower.&#160; Each SPC Party will at all times comply, and
will cause Borrower to comply, with each of the representations, warranties,
and covenants </font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">contained in this <u>Section 16.3</u> as if such representation,
warranty or covenant was made directly by such SPC Party.&#160; Upon the withdrawal or the disassociation of
the SPC Party from Borrower, Borrower shall immediately appoint a new member
whose organizational documents are substantially similar to those of the SPC
Party and deliver a new Non-Consolidation Opinion to the Rating Agency or Rating
Agencies, as applicable, with respect to the new SPC Party and its equity
owners.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160;&#160;&#160;&#160;&#160; Borrower shall at all
times cause there to be at least one (1) duly appointed member or manager (&#147;<u>Independent
Director</u>&#148;) of Borrower (if Borrower is a corporation or a single member
Delaware limited liability company) and, upon Lender&#146;s request in connection
with a Securitization pursuant to Article XXV hereof, one (1) Independent
Director of each SPC Party (if Borrower is a limited partnership or a limited
liability company) reasonably satisfactory to Lender who is not at the time of
initial appointment, has not been at any time during the preceding five (5)
years and shall not be while serving as an Independent Director: (i) a
stockholder, director (other than as an Independent Director), officer,
employee, partner, attorney or counsel of Borrower or such SPC Party or any
Affiliate of either of them; (ii) a customer, supplier or other Person who
derives any of its purchases or revenues from its activities with Borrower or
such SPC Party or any Affiliate of either of them; (iii) a Person controlling
or under common control with any such stockholder, partner, customer, supplier
or other Person; or (iv) a member of the immediate family of any such
stockholder, director, officer, employee, partner, customer, supplier or other
Person.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)&#160;&#160;&#160;&#160;&#160; Borrower shall not cause
or permit the SPC Party or its members and/or managers to take any action
which, under the terms of any of its organizational documents requires the vote
of any SPC Party of Borrower unless at the time of such action there shall be
at least one (1) member of the board of directors who is an Independent
Director.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall allocate
fairly and reasonably any overhead expenses that are shared with an Affiliate,
including paying for office space and services performed by any employee of an
Affiliate or Related Party.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)&#160;&#160;&#160;&#160;&#160; Borrower shall not pledge
its assets for the benefit of any other Person other than with respect to the
Loan.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(t)&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall maintain
a sufficient number of employees in light of its contemplated business
operations and pay the salaries of its own employees from its own funds.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(u)&#160;&#160;&#160;&#160;&#160; Borrower shall conduct
its business so that the assumptions made with respect to Borrower in the
Non-Consolidation Opinion shall be true and correct in all respects.</font></h3>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XVII<br>
CASUALTY AND CONDEMNATION</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 17.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Lender&#146;s Election to Apply
Proceeds to the Debt</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Subject to the provisions
of <u>Section 17.1(b)</u> below, Lender may elect to apply to the Debt, in such
order of priority as Lender elects in its sole discretion, all proceeds</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of insurance or condemnation (individually and collectively referred to
as &#147;<u>Proceeds</u>&#148;), after deduction of all expenses of collection and
settlement, including attorneys&#146; and adjusters&#146; fees and charges.&#160; Any Proceeds remaining after repayment of the
indebtedness under the Loan Documents shall be paid by Lender to Borrower.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; Notwithstanding anything
in <u>Section 17.1(a)</u> to the contrary, in the event of any casualty to the
Improvements or any condemnation of part of the Project, Lender agrees to make
the Proceeds available for restoration of the Improvements if (i) no Event of
Default exists that will not be cured upon Borrower&#146;s commencement of
restoration, (ii) all Proceeds are deposited with Lender, (iii) in Lender&#146;s
reasonable judgment, the amount of Proceeds available for restoration of the
Improvements (together with undisbursed proceeds of the Loan, if any, allocated
for the cost of the Construction and any sums or other security acceptable to
Lender deposited with Lender by Borrower for such purpose) is sufficient to pay
the full and complete costs of such restoration, (iv) in Lender&#146;s reasonable
determination, the Project can be restored to an architecturally and
economically viable project in compliance with applicable Laws, (v) Guarantor
reaffirms the Completion Guaranty in writing, (vi) in Lender&#146;s reasonable
determination, such restoration is likely to be completed no later than the
Maturity Date, (vii) in Lender&#146;s reasonable judgment, any operating deficits,
including all payments of interest and principal due hereunder, that shall be
incurred by reason of the casualty or condemnation shall be covered by the
Proceeds, the insurance coverage referred to in <u>Section 16.2(a)(iii)</u> above,
and other funds of Borrower or Loan proceeds that are available to be disbursed
for construction costs in accordance with the Construction Budget, and (viii)
in Lender&#146;s reasonable judgment, following the restoration of the Project, the
Loan to Value Ratio shall not exceed 60%.</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 17.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Borrower&#146;s Obligation to Rebuild</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; If Lender does not elect
(or does not have the right) to apply the Proceeds to the Debt, as provided in <u>Section
17.1</u> above, Borrower shall:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Proceed
with diligence to make settlement with insurers or Governmental Authorities and
cause the Proceeds to be deposited with Lender;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In
the event of any delay in making settlement with insurers or Governmental
Authorities or effecting collection of the Proceeds, deposit with Lender such
amount as Lender reasonably deems appropriate to insure the timely completion
of Construction as aforesaid;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If
the Proceeds and the undisbursed balance of the Loan are insufficient to
maintain the Loan In Balance, promptly deposit with Lender any amount necessary
to place the Loan In Balance; and</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Promptly
proceed with the resumption of Construction of the Improvements, including the
repair of all damage resulting from such fire, condemnation or other cause and
restoration to its former condition.</font></h4>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; Any request by Borrower
for a disbursement by Lender of Proceeds and funds deposited by Borrower shall
be treated by Lender as if such request were for an advance </font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of the Loan hereunder, and the disbursement thereof shall be
conditioned upon Borrower&#146;s compliance with and satisfaction of the same
conditions precedent as would be applicable under this Agreement for an advance
of the Loan.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Notwithstanding the
foregoing, the Borrower may, at Borrower&#146;s option, elect to prepay the Loan
without any penalty after a Casualty or Condemnation in lieu of restoring the
Property.</font></h3>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XVIII<br>
TRANSFERS</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 18.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Prohibition of Assignments and
Transfers by Borrower</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Borrower shall not assign
its rights under this Agreement and any purported assignment shall be
void.&#160; Except as provided in <u>Section
18.1(b)</u> below or in connection with a Permitted Transfer, without the prior
written consent of Lender (which consent may be withheld by Lender in its sole
discretion), Borrower shall not suffer or permit (a) any change in the
management (whether direct or indirect) of the Project or of Borrower or (b)
any Transfer. Lender&#146;s consent if given in connection with any transfer request
shall not be deemed to be a waiver of Lender&#146;s right to require such consent in
the future.&#160; Any sale, conveyance,
alienation, mortgage, encumbrance, pledge or transfer of the Project made in
contravention of this Agreement shall be null and void and of no force or
effect.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; In connection with any
corporate equity or debt financing made by an Institutional Lender for the
benefit of any of Maui Land &amp; Pineapple Company, Inc., Exclusive Resorts
and Marriot International, Inc. (each, a &#147;<u>Principal</u>&#148;), Principal shall
have the right to pledge its respective limited liability company interests in
MLP KB Partner LLC, a Hawaii limited liability company, ER Kapalua Investors
Fund, LLC, a Delaware limited liability company, and MH Kapalua Venture, LLC, a
Delaware limited liability company, as security for such financing; <u>provided</u>,
<u>however</u>, that in each such instance, (A) there shall then exist no
Default or Event of Default under this Agreement or any of the other Loan
Documents; (B) the lender, and any subsequent holder of the note under such
loan, must be an Institutional Lender; (C) Principal shall provide Lender with
(i) no less than thirty (30) days&#146; prior written notice of such financing, (ii)
copies of all such financing documents and instruments, and (iii) a &#147;non-consolidation
opinion&#148; reasonably satisfactory to Lender.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt .0001pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; </font>Borrower
covenants and agrees that, as a
condition to any Permitted Transfer, (A) there shall then exist no
Default or Event of Default under this Agreement or any of the other Loan
Documents; (B) Borrower shall provide Lender
with thirty (30) days&#146; prior written notice of such Permitted Transfer; (C)
Borrower shall provide Lender all documents and statements as may be reasonably
requested by Lender in connection with such Permitted Transfer and evidence
confirming that such transaction complies with the requirements of a Permitted
Transfer, and (D) Borrower shall provide updated opinions, including
non-consolidation opinions, in form and substance and delivered by counsel
reasonably acceptable to Lender and each Rating Agency if a Securitization has
occurred, as may be reasonably required by Lender and/or the Rating
Agency.&#160; Borrower&#146;s failure to comply
with the terms of this Section shall constitute an &#147;Event of Default&#148;
hereunder.</h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 18.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Prohibition of Transfers in
Violation of ERISA</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition to the prohibitions set forth in <u>Section
18.1</u> above, Borrower shall not assign, sell, pledge, encumber, transfer,
hypothecate or otherwise dispose of its interest or rights in this Agreement or
in the Project, or attempt to do any of the foregoing or suffer any of the
foregoing, nor shall any party owning a direct or indirect interest in Borrower
assign, sell, pledge, mortgage, encumber, transfer, hypothecate or otherwise
dispose of any of its rights or interest (direct or indirect) in Borrower,
attempt to do any of the foregoing or suffer any of the foregoing, if such
action would cause the Loan, or the exercise of any of Lender&#146;s rights in
connection therewith, to constitute a prohibited transaction under ERISA or the
Internal Revenue Code or otherwise result in Lender being deemed in violation
of any applicable provision of ERISA.&#160;
Borrower agrees to indemnify and hold Lender free and harmless from and
against all losses, costs (including attorneys&#146; fees and expenses), taxes,
damages (including consequential damages) and expenses Lender may suffer by
reason of the investigation, defense and settlement of claims and in obtaining
any prohibited transaction exemption under ERISA necessary or desirable in
Lender&#146;s sole judgment or by reason of a breach of the foregoing
prohibitions.&#160; The foregoing
indemnification shall be a recourse obligation of Borrower and shall survive
repayment of the Note, notwithstanding any limitations on recourse contained
herein or in any of the Loan Documents.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 18.3</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Successors and Assigns</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to the foregoing restrictions on transfer and
assignment contained in this <u>Article&nbsp;XVIII</u>, this Agreement shall
inure to the benefit of and shall be binding on the parties hereto and their
respective successors and permitted assigns.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XIX<br>
SERVICER</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 19.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Servicer</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At the option of Lender, the Loan may be serviced by a
servicer or trustee (the &#147;<font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font color="black" style="font-weight:normal;">Servicer</font></u></b></font>&#148;) selected by
Lender and Lender may delegate all or any portion of its responsibilities under
this Agreement and the other Loan Documents to the Servicer pursuant to a
servicing agreement (the &#147;<font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font color="black" style="font-weight:normal;">Servicing Agreement</font></u></b></font>&#148;)
between Lender and Servicer.&#160; Borrower
shall not be responsible for any reasonable set-up fees or any other initial
costs relating to or arising under the Servicing Agreement.&#160; Thereafter, Borrower shall reimburse Lender
for the monthly servicing fees payable under the Servicing Agreement (&#147;<u>Servicing
Fees</u>&#148;).&#160; Servicing Fees, along with
the Tax and Insurance Escrow Fund, shall be added together with monthly
installments of principal and interest payable under the Note and paid as an
aggregate sum by Borrower to Lender on each Payment Date.&#160; Borrower shall further reimburse Lender upon
demand for reasonable out-of-pocket costs and expenses incurred by Servicer in
(i) reviewing Borrower&#146;s requisitions for advances of the Loan, (ii) reviewing
proposed Leases and subordination, non-disturbance and attornment agreements,
(iii) conducting inspections of the Project, (iv) applying the provisions of
this Agreement to any casualty or condemnation proceeding affecting the
Project, (v) responding to any Default or Event of Default or (vi) otherwise
incurred in</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">connection with this
Agreement, including, without limitation, in connection with the administration
of the Loan.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 19.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Servicer Fees</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall pay, monthly, all fees to the Servicer
in respect of servicing the Loan in the amount of twelve and three tenths
(12.3) basis points per annum on the then outstanding Loan amount.&#160; Such fees shall be added to the Monthly
Interest Payment (as defined in the Note) due on the Loan.&#160; In addition, Borrower shall pay all of Servicer&#146;s
out-of-pocket costs and expenses (including, without limitation, legal fees)
incurred in connection with its review of any construction advances or draws,
change orders, construction progress reports, leases, subordination and
non-disturbance agreements, property and construction inspections, casualty or
condemnation matters or loan defaults</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XX<br>
EVENTS OF DEFAULT</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 20.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Events of Default</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The occurrence of any one or more of the following
shall constitute an &#147;Event of Default&#148; as said term is used herein:</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Failure of Borrower: (i)
to make any principal or interest payment when due, (ii) to observe or perform
any of the other covenants or conditions by Borrower to be performed under the
terms of this Agreement or any other Loan Document concerning the payment of
money within ten (10) days after notice, or (iii) for a period of thirty (30)
days after written notice from Lender, to observe or perform any non-monetary
covenant or condition contained in this Agreement or any other Loan Documents;
provided that if any such failure concerning a non-monetary covenant or condition
is susceptible to cure and cannot reasonably be cured within said thirty (30)
day period, then Borrower shall have an additional sixty (60) day period to
cure such failure and no Event of Default shall be deemed to exist hereunder so
long as Borrower commences such cure within the initial thirty (30) day period
and diligently and in good faith pursues such cure to completion within such
resulting ninety (90) day period from the date of Lender&#146;s notice; and provided
further that if a different notice or grace period is specified under any other
subsection of this <u>Section 20.1</u> with respect to a particular breach, or
if another subsection of this <u>Section 20.1</u> applies to a particular
breach and does not expressly provide for a notice or grace period, the
specific provision shall control;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; The disapproval by Lender
or Lender&#146;s Consultant at any time of any construction work due to such work
being defective or deviating from the approved Plans and Specifications, and
failure of Borrower to cause the same to be corrected to the reasonable
satisfaction of Lender within the cure period provided in <u>Section
20.1(a)(ii)</u> above;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; A delay or discontinuance
in the Construction for a period of fifteen (15) days for reasons within the
control of Borrower, or up to seventy-five (75) days if occasioned by Force
Majeure Delays, provided that the aggregate of all such time periods shall not
exceed</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt .0001pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">one hundred fifty (150) days, and an additional one hundred twenty
(120) days permitted with respect to a tropical storm or hurricane;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; If Borrower fails to
complete the Construction in substantial accordance with the Plans and
Specifications on or before the Completion Date;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; If Borrower fails to
satisfy the final disbursement conditions under <u>Article XIV</u> on or before
the Completion Date;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; If Borrower defaults,
beyond any applicable notice or cure period, under the General Contract, the
Architect&#146;s Agreement, any Major Contract, any of the Marketing Agreements, any
of the ML&amp;P Agreements, the Ground Lease, or the ER Purchase Agreement;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160; The bankruptcy or
insolvency of the General Contractor and failure of Borrower to procure a
contract with a new contractor reasonably satisfactory to Lender within ninety
(90) days from the occurrence of such bankruptcy or insolvency;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160; Any Transfer or other
disposition in violation of <u>Sections 18.1 or 18.2</u>;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160; If any warranty,
representation, statement, report or certificate made now or hereafter by
Borrower or Guarantor is untrue or incorrect in any material respect at the time
made or, subject to the provisions of <u>Section 3.2</u> hereof, deemed remade;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160; Borrower or Guarantor
shall commence a voluntary case concerning Borrower or Guarantor under the
Bankruptcy Code; or an involuntary proceeding is commenced against Borrower or Guarantor
under the Bankruptcy Code and relief is ordered against the applicable party,
or the petition is controverted but not dismissed or stayed within sixty (60)
days after the commencement of the case, or a custodian (as defined in the
Bankruptcy Code) is appointed for or takes charge of all or substantially all
of the property of Borrower or Guarantor; or Borrower or Guarantor commence any
other proceedings under any reorganization, arrangement, readjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar Law of any
jurisdiction whether now or hereafter in effect relating to Borrower or
Guarantor; or there is commenced against Borrower or Guarantor any such
proceeding which remains undismissed or unstayed for a period of sixty (60)
days; or Borrower or Guarantor fails to controvert in a timely manner any such
case under the Bankruptcy Code or any such proceeding, or any order of relief
or other order approving any such case or proceeding is entered; or Borrower or
Guarantor by any act or failure to act indicates its consent to, approval of,
or acquiescence in any such case or proceeding or the appointment of any
custodian or the like of or for it for any substantial part of its property or
suffers any such appointment to continue undischarged or unstayed for a period
of sixty (60) days;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160; Borrower or Guarantor
shall make an assignment for the benefit of creditors, or shall admit in
writing its inability to pay its debts generally as they become due, or shall
consent to the appointment of a receiver or trustee or liquidator of all of its
property or the major part thereof or if all or a substantial part of the
assets of Borrower or Guarantor are</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">attached, seized, subjected to a writ or distress warrant, or are
levied upon, or come into the possession of any receiver, trustee, custodian or
assignee for the benefit of creditors;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160; Any court enjoins
Borrower from performing Construction, and such injunction is not removed for a
period of&#160; twenty (20) days;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160; Borrower fails to make any
Deficiency Deposit with Lender within the time and in the manner required by <u>Article
XII</u> hereof;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160;&#160;&#160;&#160; One or more final,
unappealable judgments are entered (i) against Borrower in amounts aggregating
in excess of $500,000.00; (ii) against Exclusive Resorts Development Company,
LLC in amounts aggregating in excess of $250,000.00; (iii) against ML&amp;P or
Ritz-Carlton in amounts aggregating in excess of $2,500,000.00 and said
judgments are not satisfied, stayed or bonded over within thirty (30) days after
entry;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160;&#160;&#160;&#160;&#160; If Borrower or Guarantor
shall fail to pay any debt owed by it or is in default (beyond any applicable
notice, cure or grace period) under any Loan Document with Lender and such
failure or default continues after any applicable grace period specified in the
instrument or agreement relating thereto;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160;&#160;&#160;&#160;&#160; If a Material Adverse
Change occurs with respect to Borrower, the Project or Guarantor; or</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)&#160;&#160;&#160;&#160;&#160; The occurrence of any
other event or circumstance denominated as an Event of Default in this Agreement
or under any of the other Loan Documents and the expiration of any applicable
grace or cure periods, if any, specified for such Event of Default herein or
therein, as the case may be.</font></h3>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XXI<br>
LENDER&#146;S REMEDIES IN EVENT OF DEFAULT</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 21.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Remedies Conferred Upon Lender</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon the occurrence of any Event of Default, Lender
may pursue any one or more of the following remedies concurrently or
successively, it being the intent hereof that none of such remedies shall be to
the exclusion of any other:</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Take
possession of the Project and complete the Construction in accordance with the
Plans and Specifications and do anything which is necessary or appropriate in
its sole judgment to fulfill the obligations of Borrower under this Agreement
and the other Loan Documents, including either the right to avail itself of and
procure performance of existing contracts or let any contracts with the same
contractors or others.&#160; Without
restricting the generality of the foregoing and for the purposes aforesaid, Borrower
hereby appoints and constitutes Lender its lawful attorney in fact with full
power of substitution in the Project to complete the Construction in the name
of Borrower; to use unadvanced funds remaining under the Note or which may be
reserved, escrowed or set aside for any purposes hereunder at any time, or to
advance funds in excess of the face amount of the Note, to complete the
Construction; to make changes in the Plans and Specifications which</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">shall be necessary or desirable to complete the Construction in
substantially the manner contemplated by the Plans and Specifications; to
retain or employ new general contractors, subcontractors, architects, engineers
and inspectors as shall be required for said purposes; to pay, settle or
compromise all existing bills and claims which are, or which may become, liens
against the Project; to execute all applications and certificates in the name
of Borrower, prosecute and defend all actions or proceedings in connection with
the Improvements or Project; to take action and require such performance as it
deems necessary under the Bond(s) and to make settlements and compromises with
the surety thereunder, and in connection therewith, to execute instruments of
release and satisfaction; and to do any and every act which Borrower might do
in its own behalf, it being understood and agreed that this power of attorney
shall be a power coupled with an interest and cannot be revoked;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; Withhold further
disbursement of the proceeds of the Loan and/or terminate Lender&#146;s obligations
to make further disbursements hereunder;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Declare the Note to be
immediately due and payable;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; Sell Units pursuant to
Contracts of Sale;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; Exercise all of Borrower&#146;s
rights under the Condominium Documents; and</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; Exercise or pursue any other
remedy or cause of action permitted under this Agreement or any other Loan
Documents, or conferred upon Lender by Law.</font></h3>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XXII<br>
GENERAL PROVISIONS</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Captions</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The captions and headings of various Articles,
Sections and subsections of this Agreement and Exhibits pertaining hereto are
for convenience only and are not to be considered as defining or limiting in
any way the scope or intent of the provisions hereof.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Modification; Waiver</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No modification, waiver, amendment or discharge of
this Agreement or any other Loan Document shall be valid unless the same is in
writing and signed by the party against which the enforcement of such
modification, waiver, amendment or discharge is sought.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.3</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Governing Law</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW
YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW
YORK, AND THE PROCEEDS OF THE NOTE DELIVERED PURSUANT HERETO WERE AND WILL BE
DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A
SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION
EMBODIED HEREBY.&#160; IN ALL RESPECTS,
INCLUDING, WITHOUT LIMITATION, MATTERS OF CONSTRUCTION, VALIDITY</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AND PERFORMANCE, THIS
AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN SUCH STATE AND APPLICABLE LAW OF THE UNITED
STATES OF AMERICA.&#160; TO THE FULLEST EXTENT
PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY
CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT,
AND THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW.<b>&#160; </b>NOTWITHSTANDING THE FOREGOING,
PROVISIONS IN THIS LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS WITH RESPECT TO
THE CREATION, PERFECTION, PRIORITY, ENFORCEMENT AND FORECLOSURE OF THE LIENS
AND SECURITY INTERESTS CREATED HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED
ACCORDING TO THE LAW OF THE STATE IN WHICH THE PROJECT IS LOCATED.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.4</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Acquiescence Not to Constitute
Waiver of Lender&#146;s Requirements</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each and every covenant and condition for the benefit
of Lender contained in this Agreement may be waived by Lender, provided,
however, that to the extent that Lender may have acquiesced in any
noncompliance with any construction or nonconstruction conditions precedent to
the Initial Advance under the Loan or to any subsequent disbursement of Loan
proceeds, such acquiescence shall not be deemed to constitute a waiver by
Lender of such requirements with respect to any future disbursements of Loan
proceeds.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.5</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Disclaimer by Lender</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; This Agreement is made for
the sole benefit of Borrower and Lender, and no other Person shall have any
benefits, rights or remedies under or by reason of this Agreement, or by reason
of any actions taken by Lender pursuant to this Agreement.&#160; Lender shall not be liable to any contractors,
subcontractors, supplier, architect, engineer, tenant or other party for labor
or services performed or materials supplied in connection with the
Construction.&#160; Lender shall not be liable
for any debts or claims accruing in favor of any such parties against Borrower
or others or against the Project.&#160;
Lender, by making the Loan or taking any action pursuant to any of the
Loan Documents, shall not be deemed a partner or a joint venturer with Borrower
or fiduciary of Borrower.&#160; No payment of
funds directly to a contractor or subcontractor or provider of services shall
be deemed to create any third party beneficiary status or recognition of same
by Lender.&#160; Without limiting the
generality of the foregoing:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Lender
shall have no liability, obligation or responsibility whatsoever with respect
to the Construction.&#160; Any inspections of
the Construction made by or through Lender are for purposes of administration
of the Loan only and neither Borrower nor any third party is entitled to rely
upon the same with respect to the quality, adequacy or suitability of materials
or workmanship, conformity to the Plans and Specifications, state of completion
or otherwise; and</font></h4>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Lender
neither undertakes nor assumes any responsibility or duty to Borrower to
select, review, inspect, supervise, pass judgment upon or inform Borrower of
any matter in connection with the Project, including matters relating to the
quality, adequacy or suitability of:&#160; (x)
the Plans and Specifications, (y) architects, contractors, subcontractors and
material suppliers employed or utilized in connection with the Construction, or
the workmanship of or the materials used by any of them or (z) the progress or
course of Construction and its conformity or nonconformity with the Plans and
Specifications; Borrower shall rely entirely upon its own judgment with respect
to such matters, and any review, inspection, supervision, exercise of judgment
or supply of information to Borrower by Lender in connection with such matters
is for the protection of Lender only, and neither Borrower nor any third party
is entitled to rely thereon.</font></h4>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.6</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Partial Invalidity; Severability</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If any of the provisions of this Agreement, or the
application thereof to any person, party or circumstances, shall, to any extent,
be invalid or unenforceable, the remainder of this Agreement, or the
application of such provision or provisions to persons, parties or
circumstances other than those as to whom or which it is held invalid or
unenforceable, shall not be affected thereby, and every provision of this
Agreement shall be valid and enforceable to the fullest extent permitted by
law.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.7</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Definitions Include Amendments</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Definitions contained in this Agreement which identify
documents, including, but not limited to, the Loan Documents, shall be deemed
to include all amendments and supplements to such documents from the date
hereof, and all future amendments, modifications, and supplements thereto
entered into from time to time to satisfy the requirements of this Agreement or
otherwise with the consent of Lender.&#160;
Reference to this Agreement contained in any of the foregoing documents
shall be deemed to include all amendments and supplements to this Agreement.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.8</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Execution in Counterparts</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.9</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Entire Agreement</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement, taken together with all of the other
Loan Documents and all certificates and other documents delivered by Borrower
to Lender, embody the entire agreement and supersede all prior agreements,
written or oral, relating to the subject matter hereof.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.10</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Waiver of Damages</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In no event shall Lender be liable to Borrower for
punitive, exemplary or consequential damages, including, without limitation,
lost profits, whatever the nature of a breach by Lender of</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">its obligations under
this Agreement or any of the Loan Documents, and Borrower for itself and its
Guarantor waives all claims for punitive, exemplary or consequential damages.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.11</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Jurisdiction</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TO THE GREATEST EXTENT PERMITTED BY LAW, BORROWER
HEREBY WAIVES ANY AND ALL RIGHTS TO REQUIRE MARSHALLING OF ASSETS BY
LENDER.&#160; WITH RESPECT TO ANY SUIT, ACTION
OR PROCEEDINGS RELATING TO THIS AGREEMENT (EACH, A &#147;<u>PROCEEDING</u>&#148;),
BORROWER IRREVOCABLY (A) SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE
CIRCUIT COURT OF THE SECOND CIRCUIT, STATE OF HAWAII, THE FEDERAL DISTRICT
COURT FOR THE DISTRICT OF HAWAII, OR ANY FEDERAL OR STATE COURT SITTING IN NEW
YORK COUNTY, NEW YORK, AND (B) WAIVES ANY OBJECTION WHICH IT MAY HAVE AT ANY
TIME TO THE LAYING OF VENUE OF ANY PROCEEDING BROUGHT IN ANY SUCH COURT, WAIVES
ANY CLAIM THAT ANY PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND
FURTHER WAIVES THE RIGHT TO OBJECT, WITH RESPECT TO SUCH PROCEEDING, THAT SUCH
COURT DOES NOT HAVE JURISDICTION OVER SUCH PARTY.&#160; NOTHING IN THIS AGREEMENT SHALL PRECLUDE
LENDER FROM BRINGING A PROCEEDING IN ANY OTHER JURISDICTION NOR WILL THE
BRINGING OF A PROCEEDING IN ANY ONE OR MORE JURISDICTIONS PRECLUDE THE BRINGING
OF A PROCEEDING IN ANY OTHER JURISDICTION.&#160;
BORROWER FURTHER AGREES AND CONSENTS THAT, IN ADDITION TO ANY METHODS OF
SERVICE OF PROCESS PROVIDED FOR UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS IN
ANY PROCEEDING IN THE CIRCUIT COURT OF THE SECOND CIRCUIT, STATE OF HAWAII, THE
FEDERAL DISTRICT COURT FOR THE DISTRICT OF HAWAII, OR ANY FEDERAL OR STATE
COURT SITTING IN NEW YORK COUNTY, NEW YORK, MAY BE MADE BY CERTIFIED OR
REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO BORROWER AT THE ADDRESS
INDICATED BELOW, AND SERVICE SO MADE SHALL BE COMPLETE UPON RECEIPT; EXCEPT
THAT IF BORROWER SHALL REFUSE TO ACCEPT DELIVERY, SERVICE SHALL BE DEEMED
COMPLETE FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN SO MAILED.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.12</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Set-Offs</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">After the occurrence and during the continuance of an
Event of Default, Borrower hereby irrevocably authorizes and directs Lender
from time to time to charge Borrower&#146;s accounts and deposits with Lender (or
its Affiliates), and to pay over to Lender an amount equal to any amounts from
time to time due and payable to Lender hereunder, under the Note or under any
other Loan Document.&#160; Borrower hereby
grants to Lender a security interest in and to all such accounts and deposits
maintained by Borrower with Lender (or its Affiliates).</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.13</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Authorized Representative</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Authorized Representative shall deal with Lender
on behalf of Borrower in respect of any and all matters in connection with this
Agreement, the other Loan Documents, and the Loan.&#160; The Authorized Representative shall have the
power, in his or her discretion, to give and</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">receive all notices,
monies, approvals, and other documents and instruments, and to take any other
action on behalf of Borrower.&#160; All
actions by the Authorized Representative shall be final and binding on
Borrower.&#160; Lender may rely on the
authority given to the Authorized Representative until actual receipt by Lender
of a duly authorized resolution depriving such Authorized Representative of his
authority.&#160; No more than one person shall
serve as Authorized Representative at any given time.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.14</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Non-Recourse Provisions</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The provisions of <u>Article IX</u> of the Note
pertaining to the personal liability of Borrower and its members, officers,
directors and employees are hereby incorporated herein by reference.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.15</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Time is of the Essence</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Time is of the essence under this Agreement.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.16</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Sole Discretion of Lender and Deemed
Consent</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Wherever pursuant to this Agreement (a) Lender
exercises any right given to it to approve, disapprove or consent, (b) any
arrangement or term is to be satisfactory to Lender, or (c) any other decision
or determination is to be made by Lender, the decision of Lender to approve,
disapprove or consent, all decisions that arrangements or terms are
satisfactory or not satisfactory and all other decisions and determinations
made by Lender, shall be in the sole and absolute discretion of Lender and
shall be final and conclusive, except as may be otherwise expressly and
specifically provided herein, and any such decision or determination to be made
in&#160; &#147;the sole discretion of Lender&#148; or in
or at &#147;Lender&#146;s sole discretion&#148; under this Agreement shall be deemed to be in
the sole and absolute discretion of Lender and shall be final and conclusive.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With respect to any consent that is a Standard&#160; Consent such consent shall be deemed given by
Lender if Lender (or Servicer acting on behalf of Lender) fails to object
(which objection may consist solely of a request for additional information or
documentation) within ten (10) Business Days of receipt of a written request by
Borrower for such consent and receipt by Lender and Servicer of all information
reasonably necessary for Lender to make an informed decision, all delivered in
accordance with Article XXIV hereof and marked on the consent request and on
the envelope transmitting same <b>&#147;NOTICE THAT MAY TRIGGER
DEEMED CONSENT - KAPALUA BAY&#148;</b>.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 22.17</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Conflict; Construction of Documents;
Reliance</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event of any conflict between the provisions of
this Agreement and any of the other Loan Documents, the provisions of this
Agreement shall control.&#160; The parties
hereto acknowledge that they were represented by competent counsel in
connection with the negotiation, drafting and execution of the Loan Documents
and that such Loan Documents shall not be subject to the principle of
construing their meaning against the party which drafted same.&#160; Borrower acknowledges that, with respect to
the Loan, Borrower shall rely solely on its own judgment and advisors in
entering into the Loan without relying in any manner on any statements,
representations or recommendations of Lender or any parent, subsidiary or
Affiliate of Lender.&#160; Lender shall not be
subject to any limitation whatsoever in the exercise of any rights</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or remedies available to
it under any of the Loan Documents or any other agreements or instruments which
govern the Loan by virtue of the ownership by it or any parent, subsidiary or
Affiliate of Lender of any equity interest any of them may acquire in Borrower,
and Borrower hereby irrevocably waives the right to raise any defense or take
any action on the basis of the foregoing with respect to Lender&#146;s exercise of
any such rights or remedies.&#160; Borrower
acknowledges that Lender engages in the business of real estate financings and
other real estate transactions and investments which may be viewed as adverse
to or competitive with the business of Borrower or its Affiliates.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XXIII<br>
NOTICES</font></b></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any notice, demand, request or other communication
which any party hereto may be required or may desire to give hereunder shall be
in writing and shall be deemed to have been properly given (a) if hand
delivered, when delivered, (b) if mailed by United States Certified Mail
(postage prepaid, return receipt requested), three Business Days after mailing
(c) if by Federal Express or other reliable overnight courier service, on the
next Business Day after delivered to such courier service or (d) if by
telecopier on the day of transmission so long as copy is sent on the same day
by overnight courier as set forth below:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to Borrower</font></u>:</p>

<p style="margin:0pt 0pt 12.0pt 36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kapalua Bay, LLC<br>
c/o Maui Land &amp; Pineapple Company, Inc.<br>
120 Kane Street<br>
Kapalua, Maui, Hawaii 69732<br>
Attention:&#160; Ryan Churchill<br>
Telecopy:&#160; (808) 669-5454</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">With a copy to</font></u>:</p>

<p style="margin:0pt 0pt 12.0pt 36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Teel, Palmer &amp; Roeper, LLP<br>
ICW Plaza at Torrey Reserve<br>
11455 El Camino Real, Suite 300<br>
San Diego, CA 92130<br>
Attention:&#160; Dean E. Roeper, Esq.<br>
Telecopy:&#160; (858) 794-2909</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to Lender</font></u>:</p>

<p style="margin:0pt 0pt 12.0pt 36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lehman Brothers Holdings Inc.<br>
399 Park Avenue<br>
New York, New York 10022<br>
Attention:&#160; Joseph J. Flannery<br>
Telecopy:&#160; 646-758-1938</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">With a copy to</font></u>:</p>

<p style="margin:0pt 0pt .0001pt 36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TriMont Real
Estate Advisors, Inc.<br>
Monarch Tower <br>
3424 Peachtree Road NE, Suite 2200, <br>
Atlanta, Georgia&#160; 30326 <br>
Attention:&#160; Tim Dick</font></p>

<p style="margin:0pt 0pt 12.0pt 36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telecopy: 404 420-5610</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">And a copy to</font></u>:</p>

<p style="margin:0pt 0pt 12.0pt 36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Herrick, Feinstein LLP<br>
Two Park Avenue<br>
New York, New York 10016<br>
Attention:&#160; Paul Shapses, Esq.<br>
Telecopy:&#160; (212) 545-3443</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or at such other address as the party to be served
with notice may have furnished in writing to the party seeking or desiring to
serve notice as a place for the service of notice.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XXIV<br>
WAIVER OF JURY TRIAL</font></b></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">BORROWER AND LENDER EACH WAIVE ANY RIGHT TO A TRIAL BY
JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS OR RELATING THERETO OR ARISING FROM THE
LENDING RELATIONSHIP WHICH IS THE SUBJECT OF THIS AGREEMENT AND AGREE THAT ANY
SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE XXV<br>
SALE OF NOTE AND SECURITIZATION.</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.1</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Cooperation</u>.</h2>

<p style="margin:0pt 0pt .0001pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower
acknowledges that Lender may sell the Loan to a party who may pool the Loan
with a number of other loans and grant participations therein or issue one or
more classes of Mortgage Backed, Pass-Through Certificates or other securities
evidencing a beneficial interest in a rated or unrated public offering or
private placement (such sale and/or securitization, a &#147;<u>Securitization</u>&#148;;
the securities evidencing such Securitization the &#147;<u>Securities</u>&#148;) or
syndicate the Loan to one or more third parties.&#160; In connection therewith, Borrower agrees to
make available to Lender such financial and other information with respect to
the Project, Borrower, Borrower&#146;s members and Guarantor that was provided to
Lender in the course of its underwriting and origination of the Loan as well as
such financial and other non-confidential information with respect to the
Project, Borrower, Borrower&#146;s members and Guarantor as Lender reasonably
requests (collectively, the &#147;<u>Provided Information</u>&#148;).&#160; The Provided Information shall be provided by
Borrower to Lender at Lender&#146;s cost and expense, provided that Borrower&#146;s
attorneys&#146; costs</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and
expenses payable by Lender shall not exceed Five Thousand and 00/100 Dollars
($5,000.00).&#160; The Securities and/or the
Loan may be rated by one or more of the Rating Agencies.&#160; Lender may share the Provided Information
with the investment banking firms, Rating Agencies, accounting firms, law firms
and other third-party advisory firms involved with the Loan or the
Securities.&#160; The Provided Information may
ultimately be incorporated into the offering documents for the Securities or in
connection with a syndication and thus such information may be disclosed to
various investors.&#160; Lender and all of the
aforesaid third-party advisors and professional firms may reasonably rely on
the information supplied by, or on behalf of, Borrower.&#160; Lender, at its sole option, may also elect to
split the Loan into two or more loans, each secured by liens on the Project,
and sell, assign, pledge or otherwise hypothecate one or more of such loans to
third parties.&#160; Borrower shall cooperate
in all such efforts by executing and delivering all such documents, certificates,
instruments and other things reasonably necessary to evidence or confirm
Borrower&#146;s obligations hereunder, provided, however, that in no event shall the
Debt or Borrower&#146;s obligations hereunder be increased as a result thereof.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.2</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Non-Consolidation Opinion; Independent Director</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If Lender securitizes, sells,
participates, syndicates or hypothecates the Loan, Lender may require that (i)
Borrower cause its counsel to deliver to Lender, any Rating Agency and such
other Persons as Lender deems necessary or appropriate, an update of, or
supplement to, the Non-Consolidation Opinion, in form and substance
satisfactory to Lender and (ii) Borrower cause Member to appoint an Independent
Director to Member.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.3</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Loan Components</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower agrees that in connection with any
Securitization or syndication of the Loan, upon Lender&#146;s reasonable request and
at Lender&#146;s sole cost and expense (excluding Borrower&#146;s legal counsels&#146; fees
and expenses), Borrower shall deliver one or more new component notes to
replace the original Note or modify the original Note to reflect multiple
components of the Loan.&#160; The initial new
Notes or modified Note shall have the same weighted average coupon as the
original Note for the duration of the term of the Note, without regard to any
differing amortization or payment schedules or permitted prepayments.&#160; In the event of a prepayment of the Loan,
Lender shall be entitled to apply the amount of such prepayment to one or more
of the new component notes as Lender in its sole discretion decides, subject to
the provisions of the foregoing sentence</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.4</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Intentionally Deleted</u>.</h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.5</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Conversion of Loan and Creation of
Subordinate Debt</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lender shall have the right, at Lender&#146;s sole cost and
expense, to convert a portion of the Loan into subordinate financing,
including, but not limited to, mezzanine debt, subordinate debt or
participations in the Loan (collectively, the &#147;<font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font color="black" style="font-weight:normal;">Subordinate Loan</font></u></b></font>&#148;),
provided that (i) the aggregate principal amount of the Loan and the Subordinate
Loan on the date of such adjustment shall equal the aggregate outstanding
principal balance of the Loan immediately prior to such adjustment, (ii) the
Note evidencing the Loan and the Subordinate Loan shall have the same weighted
average coupon as the original Note for the duration of the term of the Note,
without</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">regard to any different
amortization or schedules or any permitted prepayments and (iii) the other
terms and provisions of the Loan and the Subordinate Loan shall substantially
remain unchanged, except for changes which are customary with respect to
subordinate loan financing.&#160; Borrower
shall cooperate with all reasonable requests of Lender in connection with any
such adjustment of the Loan and shall execute and deliver such documents as
shall reasonably be required by Lender at no cost to Borrower in connection
therewith provided that Borrower&#146;s
attorneys&#146; costs and expenses payable by Lender shall not exceed Five Thousand
and 00/100 Dollars ($5,000.00).</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.6</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Securitization Indemnification</u>.</h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160; Borrower understands that
certain of the Provided Information may be included in disclosure documents in
connection with the Securitization, including, without limitation, a
prospectus, prospectus supplement or private placement memorandum (each, a &#147;<font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font color="black" style="font-weight:normal;">Disclosure Document</font></u></b></font>&#148;)
and may also be included in filings with the Securities and Exchange Commission
pursuant to the Securities Act of 1933, as amended (the &#147;<font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font color="black" style="font-weight:normal;">Securities Act</font></u></b></font>&#148;),
or the Securities and Exchange Act of 1934, as amended (the &#147;<font style="color:windowtext;font-weight:bold;text-decoration:underline;"><b><u><font color="black" style="font-weight:normal;">Exchange Act</font></u></b></font>&#148;),
or provided or made available to investors or prospective investors in the
Securities, the Rating Agencies, and service providers relating to the
Securitization.&#160; In the event that the
Disclosure Document is required to be revised prior to the sale of all
Securities, Borrower will cooperate with the holder of the Note in updating the
Disclosure Document by providing all current information necessary to keep the
Disclosure Document accurate and complete in all material respects.</font></h3>

<p style="margin:0pt 0pt .0001pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; Borrower agrees to provide in connection
with each of (i) a preliminary and a private placement memorandum or (ii) a
preliminary and final prospectus or prospectus supplement, as applicable, an
indemnification certificate (A) certifying that Borrower has carefully examined
such memorandum or prospectus, as applicable, including without limitation, the
sections entitled &#147;Special Considerations,&#148; &#147;Description of the Mortgages,&#148;
&#147;Description of the Mortgage Loans and Mortgaged Property,&#148; &#147;The Manager,&#148; &#147;The
Borrower&#148; and &#147;Certain Legal Aspects of the Mortgage Loan,&#148; and such sections
(and any other sections reasonably requested) do not contain any untrue
statement of a material fact or omit to state a material fact necessary in
order to make the statements made, in the light of the circumstances under
which they were made, not misleading, (B) indemnifying Lender (and for purposes
of this <u>Section 25.6(b)</u>, Lender hereunder shall include its officers,
employees and directors), the Affiliate of Lehman Brothers Inc. (&#147;<u>Lehman</u>&#148;)
that has filed the registration statement relating to the securitization (the &#147;<u>Registration
Statement</u>&#148;), each of its directors, each of its officers who have signed
the Registration Statement and each Person who controls the Affiliate within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act (collectively, the &#147;<u>Lehman Group</u>&#148;), and Lehman, each of its
directors and each Person who controls Lehman within the meaning of Section 15
of the Securities Act and Section 20 of the Exchange Act (collectively, the &#147;<u>Underwriter
Group</u>&#148;) for any losses, claims, damages or liabilities (collectively, the &#147;<u>Liabilities</u>&#148;)
to which Lender, the Lehman Group or the Underwriter Group may become subject
insofar as the Liabilities arise out of or are based upon any untrue statement
or alleged untrue statement of any material fact contained in such sections or
arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated in such sections or necessary in
order to make the statements in such sections or in light of the circumstances
under which they were made, not misleading and (C) agreeing to reimburse
Lender, the Lehman Group and the Underwriter Group for any</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">78</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">legal or other expenses reasonably incurred by Lender and Lehman in
connection with investigating or defending the Liabilities; <em style="color:windowtext;font-style:normal;text-decoration:underline;"><u><font color="black">provided</font></u></em>, <em style="color:windowtext;font-style:normal;text-decoration:underline;"><u><font color="black">however</font></u></em>, that
Borrower will be liable in any such case under clauses (B) or (C) above only to
the extent that any such loss claim, damage or liability arises out of or is
based upon any such untrue statement or omission made therein in reliance upon
and in conformity with information furnished to Lender by or on behalf of
Borrower in connection with the preparation of the memorandum or prospectus or
in connection with the underwriting of the Debt, including, without limitation,
financial statements of Borrower, operating statements, rent rolls,
environmental site assessment reports and property condition reports with
respect to the Project.&#160; This indemnity
agreement will be in addition to any liability which Borrower may otherwise
have.&#160; Moreover, the indemnification
provided for in Clauses (B) and (C) above shall be effective whether or not an
indemnification certificate described in (A) above is provided and shall be applicable
based on information previously provided by Borrower or its Affiliates if
Borrower does not provide the indemnification certificate.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; In connection with
filings under the Exchange Act, Borrower agrees to indemnify (i) Lender, the
Lehman Group and the Underwriter Group for Liabilities to which Lender, the
Lehman Group or the Underwriter Group may become subject insofar as the
Liabilities arise out of or are based upon the omission or alleged omission to
state in the Provided Information a material fact required to be stated in the
Provided Information in order to make the statements in the Provided
Information, in light of the circumstances under which they were made not
misleading and (ii) reimburse Lender, the Lehman Group or the Underwriter Group
for any legal or other expenses reasonably incurred by Lender, the Lehman Group
or the Underwriter Group in connection with defending or investigating the
Liabilities.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160; Promptly after receipt by
an indemnified party under this <u>Section 25.6</u> of notice of the
commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against the indemnifying party under this <u>Section 25.6</u>,
notify the indemnifying party in writing of the commencement thereof, but the
omission to so notify the indemnifying party will not relieve the indemnifying
party from any liability which the indemnifying party may have to any
indemnified party hereunder except to the extent that failure to notify causes
prejudice to the indemnifying party.&#160; In
the event that any action is brought against any indemnified party, and it
notifies the indemnifying party of the commencement thereof, the indemnifying
party will be entitled, jointly with any other indemnifying party, to
participate therein and, to the extent that it (or they) may elect by written
notice delivered to the indemnified party promptly after receiving the
aforesaid notice from such indemnified party, to assume the defense thereof
with counsel satisfactory to such indemnified party.&#160; After notice from the indemnifying party to
such indemnified party under this <u>Section 25.6</u>, the indemnifying party
shall not be responsible for any legal or other expenses subsequently incurred
by such indemnified party in connection with the defense thereof other than
reasonable costs of investigation; <em style="color:windowtext;font-style:normal;text-decoration:underline;"><u><font color="black">provided</font></u></em>, <em style="color:windowtext;font-style:normal;text-decoration:underline;"><u><font color="black">however</font></u></em>, if the defendants in any such action
include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there are any legal
defenses available to it and/or other indemnified parties that are different
from or additional to those available to the indemnifying party, the
indemnified party or parties shall have the right to select separate counsel to
assert such legal defenses and to otherwise participate in the defense of such
action on behalf of such indemnified party or parties.&#160; The indemnifying party shall not be liable
for</font></h3>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">79</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the expenses of more than one such separate counsel unless an
indemnified party shall have reasonably concluded that there may be legal
defenses available to it that are different from or additional to those
available to another indemnified party.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160; In order to provide for
just and equitable contribution in circumstances in which the indemnity
agreements provided for in <u>Sections 25.6(b) or (c)</u> is or are for any
reason held to be unenforceable by an indemnified party in respect of any
losses, claims, damages or liabilities (or action in respect thereof) referred
to therein which would otherwise be indemnifiable under <u>Sections 25.6(b) or
(c)</u>, the indemnifying party shall contribute to the amount paid or payable
by the indemnified party as a result of such losses, claims, damages or
liabilities (or action in respect thereof); <em style="color:windowtext;font-style:normal;text-decoration:underline;"><u><font color="black">provided</font></u></em>,
<em style="color:windowtext;font-style:normal;text-decoration:underline;"><u><font color="black">however</font></u></em>, that no Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation.&#160;
In determining the amount of contribution to which the respective
parties are entitled, the following factors shall be considered:&#160; (i) Lehman&#146;s and Borrower&#146;s relative
knowledge and access to information concerning the matter with respect to which
claim was asserted; (ii) the opportunity to correct and prevent any statement
or omission; and (iii) any other equitable considerations appropriate in the
circumstances.&#160; Lender and Borrower
hereby agree that it would not be equitable if the amount of such contribution
were determined by pro rata or per capita allocation.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160; The liabilities and
obligations of both Borrower and Lender under this <u>Section 25.6</u> shall
survive the termination of this Agreement and the satisfaction and discharge of
the Debt.</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 25.7</font></u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Rating Surveillance</u>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower will retain the Rating Agencies to provide
rating surveillance services on any certificates issued in a
Securitization.&#160; Such rating surveillance
will be at the expense of Borrower in an amount determined by Lender in its
reasonable discretion prior to the occurrence of a Securitization. &#160;Such expense will be paid in monthly
installments.</font></p>

<p style="font-style:italic;margin:0pt 0pt 12.0pt;text-align:center;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">[Signature page follows]</font></i></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">80</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, this
Agreement has been executed by the undersigned as of the date first set forth
above.</font></p>

<p style="margin:0pt 0pt 12.0pt 180.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="50%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LENDER:</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LEHMAN BROTHERS HOLDINGS INC., a Delaware
  corporation</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="43%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.9%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ JOSEPH J.
  FLANNERY</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="43%" colspan="5" valign="top" style="border:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:43.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Joseph J. Flannery</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="43%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Authorized Signatory</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">BORROWER:</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KAPALUA BAY, LLC,</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Delaware limited liability company</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="44%" colspan="6" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kapalua Bay Holdings, LLC,<br>
  a Delaware limited liability company,<br>
  Its Managing Member</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" colspan="6" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="40%" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MLP KB Partner LLC,<br>
  a Hawaii limited liability company,<br>
  Its Managing Member</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" colspan="6" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:7.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:32.7%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Maui Land &amp; Pineapple Company,<br>
  Inc., a Hawaii corporation,<br>
  Managing Member</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="34%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.12%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="34%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:34.12%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ ROBERT WEBBER</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="34%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:34.12%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">R. WEBBER</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="34%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:34.12%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CFO</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="34%" colspan="2" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:34.12%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="2%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:2.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="34%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:34.12%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ RYAN CHURCHILL</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="34%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:34.12%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">RYAN CHURCHILL</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="34%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:34.12%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VP</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="374" style="border:none;"></td>
  <td width="39" style="border:none;"></td>
  <td width="6" style="border:none;"></td>
  <td width="26" style="border:none;"></td>
  <td width="32" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="11" style="border:none;"></td>
  <td width="245" style="border:none;"></td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">81</font></p>
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<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>a06-16299_1ex10d2.htm
<DESCRIPTION>EX-10
<TEXT>
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<p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.2</font></b></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.9%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading -->LAND COURT SYSTEM</p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.92%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">REGULAR SYSTEM</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.9%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.92%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Return by Mail (XX) Pickup (&nbsp;&nbsp;&nbsp;)</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To:</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.9%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Herrick, Feinstein LLP<br>
  2 Park Avenue<br>
  New York, New York&nbsp; 10016<br>
  Attention:&nbsp; Paul Shapses, Esq.</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.9%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.9%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tax Map Key Nos.:&nbsp; (2) 4-2-4-27, 28 &amp; 29</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.18%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total pages:</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:7.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 72.0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">FEE
AND LEASEHOLD MORTGAGE, SECURITY<br>
AGREEMENT AND FIXTURE FILING</font></b></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS FEE AND LEASEHOLD MORTGAGE, SECURITY AGREEMENT
AND FIXTURE FILING (this &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Security Instrument</u></b></font>&#148;) is made as of this 14</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>&#160;day of July, 2006, by <b>KAPALUA BAY, LLC</b>, a Delaware limited
liability company, having an address at c/o Maui Land &amp; Pineapple Company,
Inc., 120 Kane Street, Kapalua, Maui, Hawaii 96732, as mortgagor (&#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Borrower</u></b></font>&#148;) to <b>LEHMAN
BROTHERS HOLDINGS INC.</b>, a Delaware corporation, having an address at
399 Park Avenue, New York, New York&#160;
10022, as mortgagee (&#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Lender</u></b></font>&#148;).</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">W</font></u>  <u>I</u>
<u>T</u>  <u>N</u>  <u>E</u>  <u>S</u>  <u>S</u>  <u>E</u>  <u>T</u>  <u>H</u>:</p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, this Security Instrument is given to secure a
loan (the &#147;<b><u style="font-weight:bold;">Loan</u></b>&#148;) in the principal sum of
THREE HUNDRED SEVENTY MILLION and 00/100 DOLLARS ($370,000,000.00) or so much
thereof as may be advanced pursuant to that certain Construction</font></p>

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<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Loan Agreement dated as
of the date hereof between Borrower and Lender (as the same may be amended,
restated, replaced, supplemented, renewed, extended or otherwise modified from
time to time, the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Loan
Agreement</u></b></font>&#148;) and evidenced by that certain Promissory Note dated
the date hereof made by Borrower to Lender (such Note, together with all
extensions, renewals, replacements, restatements or modifications thereof being
hereinafter referred to as the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Note</u></b></font>&#148;);</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, Borrower desires to secure the payment of the
Debt and the performance of all of its obligations under the Note, the Loan
Agreement and the other Loan Documents (as hereinafter defined); and</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, this Security Instrument is given pursuant to
the Loan Agreement, and payment, fulfillment, and performance by Borrower of
its obligations thereunder and under the other Loan Documents are secured
hereby, and each and every term and provision of the Loan Agreement and the
Note, including the rights, remedies, obligations, covenants, conditions,
agreements, indemnities, representations and warranties of the parties therein,
are hereby incorporated by reference herein as though set forth in full and
shall be considered a part of this Security Instrument (the Loan Agreement, the
Note, this Security Instrument, that certain Assignment of Leases and Rents of
even date herewith made by Borrower in favor of Lender (the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Assignment of
Leases</u></b></font>&#148;, together with all other documents evidencing or securing
the Debt or delivered in connection with the making of the Loan executed by
Borrower, any Guarantor, or any Principal, collectively, the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Loan Documents</u></b></font>&#148;;
a copy of the Loan Documents may be provided upon written request to Borrower
at the address provided above).</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW THEREFORE, in consideration of the making of the
Loan by Lender and the covenants, agreements, representations and warranties
set forth in this Security Instrument:</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 1 - GRANTS OF
SECURITY</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>PROPERTY MORTGAGED</u>.&#160; Borrower does hereby irrevocably mortgage,
grant, pledge, and assign to Lender and its successors and assigns the
following property, rights, interests and estates now owned, or hereafter
acquired by Borrower (collectively, the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Property</u></b></font>&#148;):</font></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Land</u>.&#160; The real property described in <u>Exhibits
A-1 and A-2</u> attached hereto and made a part hereof (collectively, the &#147;</font><b><u style="font-weight:bold;">Fee Land</u></b>&#148;)</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Ground Lease</u>.&#160; All of the leasehold estate and all of the
Borrower&#146;s right, title, interest, privileges and options created by that
certain lease described on <u>Exhibit B</u> attached hereto (as such lease may
be amended, modified, extended or supplemented from time to time, collectively,
the &#147;<b><u style="font-weight:bold;">Ground Lease</u>&#148;) </b>in the
real property described in <em style="font-style:normal;text-decoration:underline;"><u>Exhibit A-2</u></em> attached hereto and made
a part hereof (the &#147;</font><b><u style="font-weight:bold;">Leasehold Land</u></b>&#148;;
and together with the Fee Land, the &#147;<b><u style="font-weight:bold;">Land</u></b>&#148;);</h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Condominium Project</u>.&#160; All right, title and interest of the
Borrower, including rights as the &#147;Developer&#148;, in, to and under that certain
Declaration of Condominium Property Regime of Kapalua Bay Condominium (the &#147;<b><u style="font-weight:bold;">Condominium Project</u></b>&#148;), more
particularly described in <u>Exhibit A-1</u> attached hereto, and all other
documents relating to the Condominium Project, and all right, title and
interest of the Borrower in and to all condominium</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">apartments or units in the
Condominium Project, together with the appurtenant easements, limited common
elements and undivided percentage interests in the common elements, which
common elements include the Fee Land (collectively, the &#147;<b><u style="font-weight:bold;">Units</u></b>&#148;);</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Additional
Land</u>.&#160; All additional lands, estates
and development rights hereafter acquired by Borrower for use in connection
with the Land, the development of the Land, Condominium Project, and all
additional lands and estates therein which may, from time to time, by
supplemental mortgage or otherwise be expressly made subject to the lien of
this Security Instrument;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Improvements</u>.&#160; The buildings, structures, fixtures,
additions, enlargements, extensions, modifications, repairs, replacements and
improvements now or hereafter erected or located on the Land, Condominium
Project and/or the Units (collectively, the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Improvements</u></b></font>&#148;);</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Easements</u>.&#160; All easements, rights-of-way or use, rights,
strips and gores of land, streets, ways, alleys, passages, sewer rights, water,
water courses, water rights and powers, air rights and development rights, and
all estates, rights, titles, interests, privileges, liberties, servitudes,
tenements, hereditaments and appurtenances of any nature whatsoever, in any way
now or hereafter belonging, relating or pertaining to the Land, the Condominium
Project, the Units and the Improvements and the reversion and reversions,
remainder and remainders, and all land lying in the bed of any street, road or
avenue, opened or proposed, in front of or adjoining the Land, to the center
line thereof and all the estates, rights, titles, interests, dower and rights
of dower, curtesy and rights of curtesy, property, possession, claim and demand
whatsoever, both at law and in equity, of Borrower of, in and to the Land, the
Condominium Project, the Units and the Improvements and every part and parcel
thereof, with the appurtenances thereto;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Equipment</u>.&#160; All &#147;equipment,&#148; as such term is defined in
Article 9 of the Uniform Commercial Code (as hereinafter defined), now owned or
hereafter acquired by Borrower, which is used at or in connection with the
Improvements, the Condominium Project, the Units or the Land or is located
thereon or therein (including, but not limited to, all machinery, equipment,
furnishings, and electronic data-processing and other office equipment now
owned or hereafter acquired by Borrower and any and all additions,
substitutions and replacements of any of the foregoing), together with all
attachments, components, parts, equipment and accessories installed thereon or
affixed thereto (collectively, the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Equipment</u></b></font>&#148;).&#160; Notwithstanding the foregoing, Equipment
shall not include any property belonging to tenants under leases or covered by
equipment leases except to the extent that Borrower shall have any right or
interest therein;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Fixtures</u>.&#160; All Equipment now owned, or the ownership of
which is hereafter acquired, by Borrower which is so related to the Land, the
Condominium Project, the Units and Improvements forming part of the Property
that it is deemed fixtures or real property under the law of the particular
state in which the Equipment is located, including, without limitation, all
building or construction materials intended for construction, reconstruction,
alteration or repair of or installation on the Property, construction
equipment, appliances, machinery, plant equipment, fittings, apparatuses,
fixtures and other items now or hereafter attached to, installed in or used in
connection with (temporarily or permanently) any of the</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Improvements or the Land, the Condominium Project and the Units,
including, but not limited to, engines, devices for the operation of pumps,
pipes, plumbing, cleaning, call and sprinkler systems, fire extinguishing
apparatuses and equipment, heating, ventilating, plumbing, laundry,
incinerating, electrical, air conditioning and air cooling equipment and
systems, gas and electric machinery, appurtenances and equipment, pollution
control equipment, security systems, disposals, dishwashers, refrigerators and
ranges, recreational equipment and facilities of all kinds, and water, gas,
electrical, storm and sanitary sewer facilities, utility lines and equipment
(whether owned individually or jointly with others, and, if owned jointly, to
the extent of Borrower&#146;s interest therein) and all other utilities whether or
not situated in easements, all water tanks, water supply, water power sites,
fuel stations, fuel tanks, fuel supply, and all other structures, together with
all accessions, appurtenances, additions, replacements, betterments and
substitutions for any of the foregoing and the proceeds thereof (collectively,
the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Fixtures</u></b></font>&#148;).&#160; Notwithstanding the foregoing, &#147;Fixtures&#148;
shall not include any property which are covered by equipment leases or which
tenants are entitled to remove pursuant to leases except to the extent that
Borrower shall have any right or interest therein;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Personal
Property</u>.&#160; All furniture,
furnishings, objects of art, machinery, goods, tools, supplies, appliances,
general intangibles, contract rights, accounts, accounts receivable, franchises
(to the extent permitted under applicable law), licenses(to the extent
permitted under applicable law), certificates and permits(to the extent
permitted under applicable law), inventory and articles of personal property and
accessions thereof and renewals and replacements thereof and substitutions
therefor, if any (including, but not limited to, beds, bureaus, chiffoniers,
chests, chairs, desks, lamps, mirrors, bookcases, tables, rugs, carpeting,
drapes, draperies, curtains, shades, venetian blinds, screens, paintings,
hangings, pictures, divans, couches, luggage carts, luggage racks, stools,
sofas, chinaware, linens, pillows, blankets, glassware, foodcarts, cookware,
dry cleaning facilities, dining room wagons, keys or other entry systems,
liquor and other drink dispensers, icemakers, radios, television sets, intercom
and paging equipment, electric and electronic equipment, dictating equipment,
private telephone systems, medical equipment, potted plants, fire prevention
and extinguishing apparatus, fittings, plants, apparatus, stoves, ranges,
refrigerators, laundry machines, tools, machinery, engines, dynamos, motors,
switchboards, conduits, compressors, vacuum cleaning systems, floor cleaning,
waxing and polishing equipment, call systems, brackets, electrical signs,
bulbs, bells, ash and fuel, conveyors, cabinets, lockers, shelving,
spotlighting equipment, dishwashers, garbage disposals, washers and dryers),
other customary hotel equipment and all other personal property of any kind or
character whatsoever as defined in and subject to the provisions of the Uniform
Commercial Code, whether tangible or intangible (other than Fixtures),
including, without limitation, &#147;Inventories of Merchandise&#148; and &#147;Inventories of
Supplies&#148; as defined in the Uniform Commercial Code, which are now or hereafter
owned by Borrower and which are located within or about the Land, the
Condominium Project, the Units and the Improvements, together with all
accessories, replacements and substitutions thereto or therefor and the
proceeds thereof (collectively, the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Personal Property&#148;</u></b></font>), and
the right, title and interest of Borrower in and to any of the Personal
Property which may be subject to any security interests, as defined in the
Uniform Commercial Code, as adopted and enacted by the state or states where
any of the Property is located (the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Uniform Commercial Code</u></b></font>&#148;),
superior in lien to the lien of this Security Instrument and all proceeds and
products of the above;</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Leases
and Rents</u>.&#160; All leases, subleases or
subsubleases, lettings, licenses, concessions or other agreements (whether
written or oral) pursuant to which any Person is granted a possessory interest
in, or right to use or occupy all or any portion of the Land, the Condominium
Project, the Units and the Improvements, and every modification, amendment or
other agreement relating to such leases, subleases, subsubleases, or other
agreements entered into in connection with such leases, subleases,
subsubleases, or other agreements and every guarantee of the performance and
observance of the covenants, conditions and agreements to be performed and
observed by the other party thereto, heretofore or hereafter entered into
(collectively, the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Leases</u></b></font>&#148;), whether before or after the filing by or
against Borrower of any petition for relief under the Bankruptcy Code and all
right, title and interest of Borrower, its successors and assigns therein and
thereunder, including, without limitation, cash or securities deposited
thereunder to secure the performance by the lessees of their obligations
thereunder and all rents, additional rents, revenues, issues and profits
(including all oil and gas or other mineral royalties and bonuses), all
revenues and credit card receipts collected from the rental of guest rooms
(whether to individuals, groups or transients), restaurants, room service,
bars, honor bars, meeting rooms, banquet rooms and recreational facilities, all
receivables, customer obligations, installment payment obligations and other
obligations now existing or hereafter arising or created out of the sale,
lease, sublease, license, concession or other grant of the right of the use and
occupancy of property or rendering of services by Borrower or any operator or
manager of the hotel or the commercial space located in the Improvements or
acquired from others (including, without limitation, from the rental of any
office space, retail space, guest rooms or other space, halls, stores, and
offices, and deposits securing reservations of such space), license, lease, sublease
and concession fees and rentals, health club membership fees, food and beverage
wholesale and retail sales, service charges, vending machine sales, movie
rentals, telephone service and proceeds, if any, from business interruption or
other loss of income insurance from the Land, the Condominium Project, the
Units and the Improvements whether paid or accruing before or after the filing
by or against Borrower of any petition for relief under the Bankruptcy Code
(collectively, the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Rents</u></b></font>&#148;) and all proceeds from the sale or other
disposition of the Leases and the right to receive and apply the Rents to the
payment of the Debt;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Condemnation
Awards</u>.&#160; To the extent permitted
under applicable law, all awards or payments, including interest thereon, which
may heretofore and hereafter be made with respect to the Property, whether from
the exercise of the right of eminent domain (including but not limited to any
transfer made in lieu of or in anticipation of the exercise of the right), or
for a change of grade, or for any other injury to or decrease in the value of
the Property;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Insurance
Proceeds</u>.&#160; All proceeds in respect of
the Property under any insurance policies covering the Property, including,
without limitation, the right to receive and apply the proceeds of any
insurance, judgments, or settlements made in lieu thereof, for damage to the
Property;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Tax
Certiorari</u>.&#160; To the extent permitted
under applicable law, all refunds, rebates or credits in connection with
reduction in real estate taxes and assessments charged against the Property as
a result of tax certiorari or any applications or proceedings for reduction;</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Rights</u>.&#160; The right, in the name and on behalf of
Borrower, to appear in and defend any action or proceeding brought with respect
to the Property and to commence any action or proceeding to protect the
interest of Lender in the Property;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Agreements</u>.&#160; All agreements, contracts, certificates,
instruments, franchises, permits, licenses (to the extent permitted under law),
plans, specifications and other documents, now or hereafter entered into, and
all rights therein and thereto, respecting or pertaining to the use,
occupation, construction, management or operation of the Land, the Condominium
Project, the Units and any part thereof and any Improvements or respecting any
business or activity conducted on the Land and any part thereof and all right,
title and interest of Borrower therein and thereunder, including, (i) the
ML&amp;P Agreements, (ii) the ER Purchase Agreement, (iii) the Marketing
Agreements, and (iv) upon the occurrence and continuation of an Event of
Default, to receive and collect any sums payable to Borrower thereunder;</font></h3>

<h3 style="font-weight:normal;margin:12.0pt 0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Trademarks</u>.&#160; All tradenames, trademarks, servicemarks,
logos, copyrights, goodwill, books and records and all other general
intangibles relating to or used in connection with the operation of the
Property, excluding, however, the Proprietary Marks.&#160; The &#147;Proprietary Marks&#148; means all trademarks,
trade names, symbols, the &#147;lion and crown device,&#148; logos, slogans, designs,
insignia, emblems, devices, service marks, and distinctive designs of buildings
and signs, architectural plans, drawings, specifications, computer files, or
combinations thereof, which are used to identify (i) The Ritz-Carlton
Development Company, LLC (&#147;<u>Ritz-Carlton</u>&#148;), a Delaware limited liability
company, (ii) Kapalua Bay, LLC, a Delaware limited liability company (&#147;<u>Kapalua
Bay</u>&#148;) or any of their affiliates.&nbsp; All works in which copyright rests
in the Ritz-Carlton, Kapalua Bay or any of their affiliates, or any other and
all patents registered or applied for in the name of Ritz-Carlton, Kapalua Bay
or any of their affiliates shall also be &#147;Proprietary Marks.&#148;&nbsp; The term &#147;Proprietary
Marks&#148; shall&nbsp;include all present and future Proprietary Marks, whether
they are now or hereafter owned by Ritz-Carlton, Kapalua Bay or any of their
affiliates, and whether or not they are registered under the laws of the United
States or of any other country.&nbsp; The names &#147;The Ritz-Carlton Club,&#148; &#147;Kapalua
Bay&#148; and &#147;Kapalua&#148; alone and as used in conjunction with other words or names,
are examples of Proprietary Marks.&nbsp; Proprietary Marks shall remain the
exclusive property of Ritz-Carlton, Kapalua Bay and their affiliates as
applicable.&nbsp; Lender has no right to use the Proprietary Marks;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Accounts</u>.&#160; All reserves, escrows and deposit accounts
maintained by Borrower with respect to the Property, including, without
limitation, all accounts established or maintained pursuant to the Loan
Documents, together with all deposits or wire transfers made to such accounts
and all cash, checks, drafts, certificates, securities, investment property,
financial assets, instruments and other property held therein from time to time
and all proceeds, products, distributions or dividends or substitutions thereon
and thereof;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Proceeds</u>.&#160; All proceeds of any of the foregoing,
including, without limitation, proceeds of insurance and condemnation awards,
whether cash, liquidation or other claims or otherwise; and</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Other
Rights</u>.&#160; Any and all other rights of
Borrower in and to the items set forth in Subsections (a) through (q) above.</font></h3>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AND without limiting any of the other provisions of
this Security Instrument, to the extent permitted by applicable law, Borrower
expressly grants to Lender, as secured party, a security interest in the
portion of the Property which is or may be subject to the provisions of the
Uniform Commercial Code which are applicable to secured transactions; it being
understood and agreed that the Improvements and Fixtures are part and parcel of
the Land, the Condominium Project and the Units (the Land, the Condominium
Project, the Units, the Improvements and the Fixtures collectively referred to
as the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Real&nbsp;Property</u></b></font>&#148;)
appropriated to the use thereof and, whether affixed or annexed to the Real
Property or not, shall for the purposes of this Security Instrument be deemed
conclusively to be real estate and conveyed hereby.</font></p>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>ASSIGNMENT OF RENTS</u>.&#160; Borrower hereby absolutely and
unconditionally assigns to Lender all of Borrower&#146;s right, title and interest
in and to all current and future Leases and Rents; it being intended by
Borrower that this assignment constitutes a present, absolute assignment and
not an assignment for additional security only.&#160;
Nevertheless, subject to the terms of the Assignment of Leases and <u>Section
7.1(h)</u> of this Security Instrument, Lender grants to Borrower a revocable
license to collect, receive, use and enjoy the Rents.&#160; Borrower shall hold the Rents, or a portion
thereof sufficient to discharge all current sums due on the Debt, for use in
the payment of such sums.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>SECURITY AGREEMENT</u>.&#160; This Security Instrument is both a real
property mortgage and a &#147;security agreement&#148; within the meaning of the Uniform
Commercial Code.&#160; The Property includes
both real and personal property and all other rights and interests, whether
tangible or intangible in nature, of Borrower in the Property.&#160; By executing and delivering this Security
Instrument, Borrower hereby grants to Lender, as security for the Obligations
(hereinafter defined), a security interest in the Fixtures, the Equipment, the
Personal Property and other property constituting the Property to the full
extent that the Fixtures, the Equipment, the Personal Property and such other
property may be subject to the Uniform Commercial Code (said portion of the
Property so subject to the Uniform Commercial Code being called the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Collateral</u></b></font>&#148;).&#160; If an Event of Default shall occur and be
continuing, Lender, in addition to any other rights and remedies which it may
have, shall have and may exercise immediately and without demand, any and all
rights and remedies granted to a secured party upon default under the Uniform
Commercial Code, including, without limiting the generality of the foregoing,
the right to take possession of the Collateral or any part thereof, and to take
such other measures as Lender may deem necessary for the care, protection and
preservation of the Collateral.&#160; Upon
request or demand of Lender after the occurrence and during the continuance of
an Event of Default, Borrower shall, at its expense, assemble the Collateral
and make it available to Lender at a convenient place (at the Land if tangible
property) reasonably acceptable to Lender.&#160;
Borrower shall pay to Lender on demand any and all expenses, including
reasonable legal expenses and attorneys&#146; fees, incurred or paid by Lender in
protecting its interest in the Collateral and in enforcing its rights hereunder
with respect to the Collateral after the occurrence and during the continuance
of an Event of Default.&#160; Any notice of
sale, disposition or other intended action by Lender with respect to the
Collateral sent to Borrower in accordance with the provisions hereof at least
fifteen (15) Business Days prior to such action, shall, except as otherwise
provided by applicable law, constitute reasonable notice to Borrower.&#160; The proceeds of any disposition of the
Collateral, or any part thereof, may, except as otherwise required by
applicable law, be applied by Lender to the payment of the Debt in such
priority and proportions</font></h2>


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<h2 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">as Lender in its discretion shall deem proper.&#160; The principal place of business of Borrower
(debtor) is as set forth on page one hereof and the address of Lender (secured
party) is as set forth on page one hereof.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>FIXTURE FILING</u>.&#160; Certain of the Property is or will become &#147;fixtures&#148;
(as that term is defined in the Uniform Commercial Code) on the Land, the
Condominium Project or the Units, described or referred to in this Security
Instrument, and this Security Instrument, upon being filed for record in the
real estate records of the State of Hawaii, shall operate also as a financing
statement naming Borrower as the debtor and Lender as the secured party filed
as a fixture filing in accordance with the applicable provisions of said
Uniform Commercial Code upon such of the Property that is or may become
fixtures.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>PLEDGES OF MONIES HELD</u>.&#160; Borrower hereby pledges to Lender any and all
monies now or hereafter held by Lender or on behalf of Lender in connection
with the Loan, including, without limitation, any sums deposited in the
Accounts (as defined in the Distributable Cash Control Agreement) and Net Sale
Proceeds, as additional security for the Obligations until expended or applied
as provided in this Security Instrument or the Loan Agreement.</font></h2>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">CONDITIONS TO
GRANT</font></b></p>

<p align="left" style="margin:12.0pt 0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TO HAVE AND TO
HOLD the above granted and described Property unto and to the use and benefit
of Lender and its successors and assigns, forever to secure payment to Lender
of the Obligations at the time and in the manner provided for its payment in
the Note, the Loan Agreement and in this Security Instrument;</font></p>

<p align="left" style="margin:12.0pt 0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PROVIDED, HOWEVER,
these presents are upon the express condition that, if Borrower shall well and
truly pay to Lender the Debt at the time and in the manner provided in the
Note, the Loan Agreement and this Security Instrument, shall well and truly
perform the Other Obligations as set forth in this Security Instrument and
shall well and truly abide by and comply with each and every covenant and
condition set forth herein and in the Note, the Loan Agreement and the other
Loan Documents, these presents shall cease, terminate and be void.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 2 - DEBT AND
OBLIGATIONS SECURED</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>DEBT</u>.&#160; This Security Instrument and the grants,
assignments and transfers made in <u>Article 1</u> are given for the purpose of
securing the Debt which by its definition (as set forth in Loan Agreement)
includes, but is not limited to, the obligations of Borrower to pay to Lender
the principal and interest owing pursuant to the terms and conditions of the
Note.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>OTHER OBLIGATIONS</u>.&#160; This Security Instrument and the grants,
assignments and transfers made in <u>Article 1</u> are also given for the
purpose of securing the following (the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Other Obligations</u></b></font>&#148;):</font></h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the
performance of all other obligations of Borrower contained herein;</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the
performance of each obligation of Borrower contained in the Loan Agreement and
any other Loan Document; and</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the
performance of each obligation of Borrower contained in any renewal, extension,
amendment, modification, consolidation, change of, or substitution or
replacement for, all or any part of the Note, the Loan Agreement or any other
Loan Document.</font></h3>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>DEBT AND OTHER OBLIGATIONS</u>.&#160; Borrower&#146;s obligations for the payment of the
Debt and the performance of the Other Obligations may sometimes be referred to
collectively herein as the &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Obligations</u></b></font>.&#148;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>FUTURE
ADVANCES</u>.&#160; This Security Instrument
secures moneys to be advanced from time to time on or subsequent to the date of
this Security Instrument.&#160; Portions of
said future advances are to be advanced for the purpose of paying, in whole or
in part, for the construction of improvements on the Land described in <u>Exhibits
A-1 and A-2</u> attached hereto.&#160; The
maximum aggregate principal amount of the future advances, including advances
for said construction, is THREE HUNDRED SEVENTY MILLION and 00/100 DOLLARS
($370,000,000.00).</font></h2>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 3 - BORROWER
COVENANTS</font></h1>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower covenants
and agrees that:</font></p>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>PAYMENT OF DEBT</u>.&#160; Borrower will pay the Debt at the time and in
the manner provided in the Loan Agreement, the Note and this Security
Instrument.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>INCORPORATION BY REFERENCE</u>.&#160; All the covenants, conditions and agreements
contained in (a) the Loan Agreement, (b) the Note and (c) all and any of the
other Loan Documents, are hereby made a part of this Security Instrument to the
same extent and with the same force as if fully set forth herein.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>INSURANCE</u>.&#160; Borrower shall obtain and maintain, or cause
to be maintained, in full force and effect at all times insurance with respect
to Borrower and the Property as required pursuant to the Loan Agreement.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>MAINTENANCE OF PROPERTY</u>.&#160; Borrower shall cause the Property to be
maintained in a good and safe condition and repair.&#160; Borrower shall promptly repair, replace or
rebuild any part of the Property which may be destroyed by any Casualty, or
become damaged, worn or dilapidated or which may be affected by any Condemnation,
and shall complete and pay for any structure at any time in the process of
construction or repair on the Land, all to the extent required by the Loan
Agreement.&#160; Notwithstanding the
provisions of this Section 3.4, Lender hereby consents to the demolition of the
existing hotel located on the Fee Land on the date hereof and the sale or other
disposition of the Personal Property located therein on the date hereof.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>WASTE</u>.&#160; Borrower shall not commit or suffer any waste
of the Property or make any change in the use of the Property, except as
provided for in the Loan Documents, which will in any way materially increase
the risk of fire or other hazard arising out</font></h2>


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<h2 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of the operation of the Property, or take any action that might
invalidate or allow the cancellation of any Policy, or do or permit to be done
thereon anything that may in any way materially impair the value of the
Property or the security of this Security Instrument.&#160; Borrower will not, without the prior written
consent of Lender, permit any drilling or exploration for or extraction,
removal, or production of any minerals from the surface or the subsurface of
the Land, regardless of the depth thereof or the method of mining or extraction
thereof.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>PAYMENT FOR LABOR AND MATERIALS</u>.&#160; (a) Subject to clause (b) below, Borrower
will promptly pay when due all bills and costs for labor, materials, and
specifically fabricated materials (&#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Labor and Material Costs</u></b></font>&#148;)
incurred in connection with the Property and not permit to exist beyond the due
date thereof in respect of the Property or any part thereof any lien or
security interest, even though inferior to the liens and the security interests
hereof, and in any event not permit to be created or exist in respect of the
Property or any part thereof any other or additional lien or security interest
other than the liens or security interests hereof except for the Permitted
Encumbrances and except for Liens expressly permitted by the Loan Agreement.</font></h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; After
prior written notice to Lender, Borrower, at its own expense, may withhold payment
of labor and material costs and contest by appropriate legal proceeding,
promptly initiated and conducted in good faith and with due diligence, the
amount or validity or application in whole or in part of any of the Labor and
Material Costs, provided that (i) no Event of Default has occurred and is
continuing under the Loan Agreement, the Note, this Security Instrument or any
of the other Loan Documents, (ii) such proceeding shall suspend the collection
of the Labor and Material Costs from Borrower and from the Property or Borrower
shall have paid all of the Labor and Material Costs under protest, (iii)
neither the Property nor any part thereof or interest therein will be in danger
of being sold, forfeited, terminated, canceled or lost, and (vi) Borrower shall
have furnished the security as may be required in the proceeding, or as may be
reasonably requested by Lender to insure the payment of any contested Labor and
Material Costs, together with all interest and penalties thereon.</font></h3>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>PERFORMANCE OF OTHER AGREEMENTS</u>.&#160; Borrower shall observe and perform each and
every term, covenant and provision to be observed or performed by Borrower
pursuant to the Loan Agreement, any other Loan Document and any amendments,
modifications or changes thereto.</font></h2>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 4 - OBLIGATIONS
AND RELIANCES</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>RELATIONSHIP OF BORROWER AND LENDER</u>.&#160; The relationship between Borrower and Lender
is solely that of debtor and creditor, and Lender has no fiduciary or other
special relationship with Borrower, and no term or condition of any of the Loan
Agreement, the Note, this Security Instrument and the other Loan Documents
shall be construed so as to deem the relationship between Borrower and Lender
to be other than that of debtor and creditor.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>NO RELIANCE ON LENDER</u>.&#160; The general partners, members, principals and
(if Borrower is a trust) beneficial owners of Borrower are experienced in the
ownership and operation of properties similar to the Property, and Borrower and
Lender are</font></h2>


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<h2 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">relying solely upon such expertise and business plan in connection with
the ownership and operation of the Property.&#160;
Borrower is not relying on Lender&#146;s expertise, business acumen or advice
in connection with the Property.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>NO LENDER OBLIGATIONS</u>.&#160; (a) Notwithstanding the provisions of <u>Subsections
1.1(j) and (p)</u> or <u>Section 1.2</u>, prior to foreclosure, Lender is not
undertaking the performance of (i) any obligations under the Leases; or (ii)
any obligations with respect to such agreements, contracts, certificates,
instruments, franchises, permits, trademarks, licenses and other documents.</font></h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; By
accepting or approving anything required to be observed, performed or fulfilled
or to be given to Lender pursuant to this Security Instrument, the Loan
Agreement, the Note or the other Loan Documents, including, without limitation,
any officer&#146;s certificate, balance sheet, statement of profit and loss or other
financial statement, survey, appraisal, or insurance policy, Lender shall not
be deemed to have warranted or affirmed the sufficiency, the legality or
effectiveness of same, and such acceptance or approval thereof shall not
constitute any warranty or affirmation with respect thereto by Lender.</font></h3>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>RELIANCE</u>.&#160; Borrower recognizes and acknowledges that in
accepting the Loan Agreement, the Note, this Security Instrument and the other
Loan Documents, Lender is expressly and primarily relying on the truth and
accuracy of the warranties and representations set forth in Section 3.1 of the
Loan Agreement without any obligation to investigate the Property and
notwithstanding any investigation of the Property by Lender; that such reliance
existed on the part of Lender prior to the date hereof, that the warranties and
representations are a material inducement to Lender in making the Loan; and
that Lender would not be willing to make the Loan and accept this Security
Instrument in the absence of the warranties and representations as set forth in
Section 3.1 of the Loan Agreement.</font></h2>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 5 - FURTHER
ASSURANCES</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>RECORDING OF SECURITY INSTRUMENT, ETC.</u>&#160; Borrower forthwith upon the execution and
delivery of this Security Instrument and thereafter, from time to time upon the
reasonable request of Lender, will permit this Security Instrument and any of
the other Loan Documents creating a lien or security interest or evidencing the
lien hereof upon the Property and each reasonable instrument of further
assurance to be filed, registered or recorded by Lender in such manner and in
such places as may be reasonably required by any present or future law in order
to publish notice of and fully to protect and perfect the lien or security
interest hereof upon, and the interest of Lender in, the Property.&#160; Borrower will pay all taxes, filing,
registration or recording fees, and all reasonable expenses incident to the
preparation, execution, acknowledgment and/or recording of the Note, this
Security Instrument, the other Loan Documents, any note, deed of trust or
mortgage supplemental hereto, any security instrument with respect to the
Property and any reasonable instrument of further assurance, and any
modification or amendment of the foregoing documents, and all federal, state,
county and municipal taxes, duties, imposts, assessments and charges arising
out of or in connection with the execution and delivery of this Security
Instrument, any deed of trust or mortgage supplemental hereto, any security
instrument with respect to the Property or any instrument of further</font></h2>


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<h2 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">assurance, and any modification or amendment of the foregoing
documents, except where prohibited by law so to do.</font></h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>FURTHER ACTS, ETC.</u></font>&#160; Borrower
will, at the cost of Borrower, and without expense to Lender, do, execute,
acknowledge and deliver all and every such reasonable further acts, deeds,
conveyances, deeds of trust, assignments, notices of assignments, transfers and
assurances as Lender shall, from time to time, reasonably require, for the
better assuring, conveying, assigning, transferring, and confirming unto Lender
the Property and rights hereby deeded, granted, bargained, sold, conveyed,
confirmed, pledged, assigned, warranted and transferred or intended now or
hereafter so to be, or which Borrower may be or may hereafter become bound to
convey or assign to Lender, or for carrying out the intention or facilitating
the performance of the terms of this Security Instrument or for filing,
registering or recording this Security Instrument, or for complying with all
Legal Requirements.&#160; Borrower, on demand,
will permit Lender to execute in the name of Borrower or without the signature
of Borrower to the extent Lender may lawfully do so, one or more financing
statements (including, without limitation, initial financing statements and
amendments thereto and continuation statements) with or without the signature
of Borrower as authorized by applicable law, to evidence more effectively the
security interest of Lender in the Property.&#160;
Borrower also ratifies its authorization for Lender to have filed any
like initial financing statements, amendments thereto and continuation
statements, if filed prior to the date of this Security Instrument.&#160; Borrower grants to Lender an irrevocable
power of attorney coupled with an interest for the purpose of exercising and
perfecting upon an Event of Default and during the continuance thereof any and all
rights and remedies available to Lender at law and in equity, including without
limitation such rights and remedies available to Lender pursuant to this <u>Section
5.2</u>.&#160; To the extent not prohibited by
applicable law, Borrower hereby ratifies all acts Lender has lawfully done in
the past or shall lawfully do or cause to be done in the future by virtue of
such power of attorney.</h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>CHANGES IN TAX, DEBT, CREDIT AND DOCUMENTARY
STAMP LAWS</u>.</font></h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If
any law is enacted or adopted or amended after the date of this Security
Instrument which imposes a tax, either directly or indirectly, on the Debt or
Lender&#146;s interest in the Property (other than income taxes), Borrower will pay
the tax, with interest and penalties thereon, if any.&#160; If Lender is advised by counsel chosen by it
that the payment of tax by Borrower would be unlawful or taxable to Lender or
unenforceable or provide the basis for a defense of usury then Lender shall
have the option by written notice of not less than two hundred seventy (270)
days to declare the Debt immediately due and payable.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If
at any time the United States of America, any State thereof or any subdivision
of any such State shall require revenue or other stamps to be affixed to the
Note, this Security Instrument, or any of the other Loan Documents or impose
any other tax or charge on the same, Borrower will pay for the same, with
interest and penalties thereon, if any.</font></h3>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>SPLITTING OF MORTGAGE</u>.&#160; Subject to the terms and conditions in the
Loan Agreement, this Security Instrument and the Note shall, at any time until
the same shall be fully paid and satisfied, at the sole election and expense of
Lender (Borrower&#146;s attorney&#146;s fees and expenses being hereby limited to
[$2,500.00] [reasonable, actual out-of-pocket expenses</font></h2>


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<h2 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">incurred by Borrower] in connection with such election by Lender), be
split or divided into two or more notes and two or more security instruments,
each of which shall cover all or a portion of the Property to be more
particularly described therein.&#160; To that
end, Borrower, upon written request of Lender, subject to the terms and
conditions in the Loan Agreement shall execute, acknowledge and deliver to
Lender and/or its designee or designees substitute notes and security
instruments in such principal amounts, aggregating not more than the then
unpaid principal amount of the Note, and containing, in the aggregate, the same
terms, provisions and clauses to those contained herein and in the Note, and
such other documents and instruments as may be reasonably requested by Lender.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>REPLACEMENT DOCUMENTS</u>.&#160; Upon receipt of an affidavit of an officer of
Lender and an indemnity from Lender reasonably acceptable to Borrower as to the
loss, theft, destruction or mutilation of the Note or any other Loan Document
which is not of public record, and, in the case of any such mutilation, upon
surrender and cancellation of such Note or other Loan Document, Borrower will
issue, in lieu thereof, a replacement Note or other Loan Document, dated the
date of such lost, stolen, destroyed or mutilated Note or other Loan Document
in the same principal amount thereof.</font></h2>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 6 - DUE ON
SALE/ENCUMBRANCE</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>LENDER RELIANCE</u>.&#160; Borrower acknowledges that Lender has
examined and relied on the experience of Borrower and its general partners,
members, principals and (if Borrower is a trust) beneficial owners in owning
and operating properties such as the Property in agreeing to make the Loan, and
will continue to rely on Borrower&#146;s ownership of the Property as a means of maintaining
the value of the Property as security for repayment of the Debt and the
performance of the Other Obligations.&#160;
Borrower acknowledges that Lender has a valid interest in maintaining
the value of the Property so as to ensure that, should Borrower default in the
repayment of the Debt or the performance of the Other Obligations, Lender can
recover the Debt by a sale of the Property.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>NO TRANSFER</u>.&#160; Borrower shall not permit or suffer any
Transfer to occur, unless specifically permitted by Section 18.1 of the Loan
Agreement or unless Lender shall consent thereto in writing.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>TRANSFER DEFINED</u>.&#160; As used in this Article 6, &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Transfer</u></b></font>&#148;
shall mean any sale, transfer, lease, conveyance, alienation, pledge,
assignment, mortgage, encumbrance, hypothecation or other disposition of (i)
all or any portion of the Property, (ii) all or any portion of Borrower&#146;s
right, title and interest (legal or equitable) in and to the Property or (iii)
any Transfer, as such term is defined in the Loan Agreement.&#160; Notwithstanding the foregoing, the sale of
any Units or Facilities in accordance with the terms of <u>Article XV</u> of
the Loan Agreement shall not constitute Transfers hereunder.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>LENDER&#146;S RIGHTS</u>.&#160; Lender shall not be required to demonstrate
any actual impairment of its security or any increased risk of default
hereunder in order to declare the Debt immediately due and payable upon a
Transfer without Lender&#146;s consent in violation of the terms and provisions of
the Loan Agreement.&#160; This provision shall
apply to every</font></h2>


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<h2 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Transfer, other than any Transfer permitted pursuant to the Loan
Agreement, regardless of whether voluntary or not, or whether or not Lender has
consented to any previous Transfer.</font></h2>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 7 - RIGHTS AND
REMEDIES UPON DEFAULT</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>REMEDIES</u>.&#160; Upon the occurrence and during the
continuance of any Event of Default, Borrower agrees that Lender may take such
action, without notice or demand, as it deems advisable to protect and enforce
its rights against Borrower and in and to the Property, including, but not
limited to, the following actions, each of which may be pursued concurrently or
otherwise, at such time and in such order as Lender may determine, in its sole
discretion, without impairing or otherwise affecting the other rights and
remedies of Lender:</font></h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; declare
the entire unpaid Debt to be immediately due and payable;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; institute
proceedings, judicial or otherwise, for the complete foreclosure of this
Security Instrument under any applicable provision of law, in which case the Property
or any interest therein may be sold for cash or upon credit in one or more
parcels or in several interests or portions and in any order or manner;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; with
or without entry, to the extent permitted and pursuant to the procedures
provided by applicable law, institute proceedings for the partial foreclosure
of this Security Instrument for the portion of the Debt then due and payable,
subject to the continuing lien and security interest of this Security
Instrument for the balance of the Debt not then due, unimpaired and without
loss of priority;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; sell
for cash or upon credit the Property or any part thereof and all estate, claim,
demand, right, title and interest of Borrower therein and rights of redemption
thereof, pursuant to power of sale or otherwise, at one or more sales, as an
entirety or in parcels, at such time and place, upon such terms and after such
notice thereof, all as may be required or permitted by law; and, without
limiting the foregoing:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In connection with any sale or sales
hereunder, Lender shall be entitled to elect to treat any of the Property which
consists of a right in action or which is property that can be severed from the
Real Property covered hereby or any Improvements without causing structural
damage thereto as if the same were personal property, and dispose of the same
in accordance with applicable law, separate and apart from the sale of Real
Property.&#160; Where the Property consists of
Real Property, Personal Property, Equipment or Fixtures, whether or not such
Personal Property or Equipment is located on or within the Real Property,
Lender shall be entitled to elect to exercise its rights and remedies against
any or all of the Real Property, Personal Property, Equipment and Fixtures in
such order and manner as is now or hereafter permitted by applicable law;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Lender shall be entitled to elect to
proceed against any or all of the Real Property, Personal Property, Equipment
and Fixtures in any manner permitted under applicable law; and if Lender so
elects pursuant to applicable law, the power of sale herein granted shall be
exercisable with respect to all or any of the Real Property, Personal Property,
Equipment and Fixtures covered</font></h4>


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<h4 style="font-weight:normal;margin:0pt 0pt .0001pt 72.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">hereby, as designated by Lender and Lender is
hereby authorized and empowered to conduct any such sale of any Real Property,
Personal Property, Equipment and Fixtures in accordance with the procedures
applicable to Real Property;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Should Lender elect to sell any
portion of the Property which is Real Property or which is Personal Property,
Equipment or Fixtures that the Lender has elected under applicable law to sell
together with Real Property in accordance with the laws governing a sale of
Real Property, Lender shall give such notice of Event of Default, if any, and
election to sell as may then be required by law.&#160; Thereafter, upon the expiration of such time
and the giving of such notice of sale as may then be required by law, and
without the necessity of any demand on Borrower, Lender at the time and place
specified in the notice of sale, shall sell such Real Property or part thereof
at public auction to the highest bidder for cash in lawful money of the United
States.&#160; Lender may from time to time
postpone any sale hereunder by public announcement thereof at the time and
place noticed therefor;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If the Property consists of several
lots, parcels or items of property, Lender shall, subject to applicable law,
(A) designate the order in which such lots, parcels or items shall be offered
for sale or sold, or (B) elect to sell such lots, parcels or items through a
single sale, or through two or more successive sales, or in any other manner
Lender designates.&#160; Any Person, including
Borrower or Lender, may purchase at any sale hereunder.&#160; Should Lender desire that more than one sale
or other disposition of the Property be conducted, Lender shall, subject to
applicable law, cause such sales or dispositions to be conducted
simultaneously, or successively, on the same day, or at such different days or
times and in such order as Lender may designate, and no such sale shall
terminate or otherwise affect the lien of this Security Instrument on any part
of the Property not sold until all the Debt has been paid in full.&#160; In the event Lender elects to dispose of the
Property through more than one sale, except as otherwise provided by applicable
law, Borrower agrees to pay the costs and expenses of each such sale and of any
judicial proceedings wherein such sale may be made;</font></h4>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; institute
an action, suit or proceeding in equity for the specific performance of any
covenant, condition or agreement contained herein, in the Note, the Loan
Agreement or in the other Loan Documents;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; recover
judgment on the Note either before, during or after any proceedings for the
enforcement of this Security Instrument or the other Loan Documents;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; apply
for the appointment of a receiver, trustee, liquidator or conservator of the
Property, without notice and without regard for the adequacy of the security
for the Debt and without regard for the solvency of Borrower, any guarantor,
indemnitor with respect to the Loan or of any Person, liable for the payment of
the Debt;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the
license granted to Borrower under Section 1.2 hereof shall be revoked and
Lender may upon written notice enter into or upon the Property, either personally
or</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">by its agents, nominees or attorneys and dispossess Borrower and its
agents and servants therefrom, without liability for trespass, damages or
otherwise and exclude Borrower and its agents or servants wholly therefrom, and
take possession of all books, records and accounts relating thereto and
Borrower agrees to surrender possession of the Property and of such books,
records and accounts to Lender upon demand, and thereupon Lender may (i) use,
operate, manage, control, insure, maintain, repair, restore and otherwise deal
with all and every part of the Property and conduct the business thereat; (ii)
complete any construction on the Property in such manner and form as Lender
deems advisable; (iii) make alterations, additions, renewals, replacements and
improvements to or on the Property; (iv) exercise all rights and powers of
Borrower with respect to the Property, whether in the name of Borrower or
otherwise, including, without limitation, the right to make, cancel, enforce or
modify Leases, obtain and evict tenants, and demand, sue for, collect and
receive all Rents of the Property and every part thereof; (v) require Borrower
to pay monthly in advance to Lender, or any receiver appointed to collect the
Rents, the fair and reasonable rental value for the use and occupation of such
part of the Property as may be occupied by Borrower; (vi) require Borrower to
vacate and surrender possession of the Property to Lender or to such receiver
and, in default thereof, Borrower may be evicted by summary proceedings or
otherwise; and (vii) apply the receipts from the Property to the payment of the
Debt, in such order, priority and proportions as Lender shall deem appropriate
in its sole discretion after deducting therefrom all expenses (including
reasonable attorneys&#146; fees) incurred in connection with the aforesaid
operations and all amounts necessary to pay the Taxes, Other Charges, insurance
and other expenses in connection with the Property, as well as just and
reasonable compensation for the services of Lender, its counsel, agents and
employees;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; exercise
any and all rights and remedies granted to a secured party upon default under
the Uniform Commercial Code, including, without limiting the generality of the
foregoing:&#160; (i) the right to take
possession of the Fixtures, the Equipment and the Personal Property, or any
part thereof, and to take such other measures as Lender may deem necessary for
the care, protection and preservation of the Fixtures, the Equipment and the
Personal Property, and (ii) request Borrower at its expense to assemble the
Fixtures, the Equipment and the Personal Property and make it available to
Lender at a convenient place acceptable to Lender.&#160; Any notice of sale, disposition or other
intended action by Lender with respect to the Fixtures, the Equipment and/or
the Personal Property sent to Borrower in accordance with the provisions hereof
at least five (5) days prior to such action, shall constitute commercially
reasonable notice to Borrower;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; apply
any sums then deposited or held in escrow or otherwise by or on behalf of
Lender in accordance with the terms of the Loan Agreement, this Security
Instrument or any other Loan Document to the payment of the following items in
any order in its uncontrolled discretion:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Interest on the unpaid principal
balance of the Note;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Amortization of the unpaid principal
balance of the Note;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Taxes and Other Charges;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Insurance Premiums;</font></h4>


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<h4 style="font-weight:normal;margin:0pt 0pt .0001pt 72.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All other sums payable pursuant to
the Note, the Loan Agreement, this Security Instrument and the other Loan
Documents, including without limitation advances made by Lender pursuant to the
terms of this Security Instrument;</font></h4>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; pursue
such other remedies as Lender may have under applicable law; or</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; apply
the undisbursed balance of any Net Sale Proceeds to the Deficiency Deposit,
together with interest thereon, to the payment of the Debt in such order,
priority and proportions as Lender shall deem to be appropriate in its
discretion.</font></h3>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event of a sale,
by foreclosure, power of sale or otherwise, of less than all of Property, this
Security Instrument shall continue as a lien and security interest on the
remaining portion of the Property unimpaired and without loss of priority.</font></p>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>APPLICATION OF PROCEEDS</u>.&#160; The purchase money, proceeds and avails of
any disposition of the Property, or any part thereof, or any other sums
collected by Lender pursuant to the Note, this Security Instrument or the other
Loan Documents, shall be applied by Lender to the payment of the Debt in such
order of priority and proportions as Lender in its discretion shall deem
proper, to the extent consistent with law and the other Loan Documents.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>RIGHT TO CURE DEFAULTS</u>.&#160; Upon the occurrence and during the
continuance of any Event of Default, Lender may remedy such Event of Default in
such manner and to such extent as Lender may deem necessary to protect the
security hereof, but without any obligation to do so and without notice to or
demand on Borrower, and without releasing Borrower from any obligation hereunder.&#160; Lender is authorized to enter upon the
Property for such purposes, or appear in, defend, or bring any action or
proceeding to protect its interest in the Property or to foreclose this
Security Instrument or collect the Debt, and the cost and expense thereof
(including reasonable attorneys&#146; fees to the extent permitted by law), with
interest as provided in this <u>Section 7.3</u>, shall constitute a portion of
the Debt and shall be due and payable to Lender upon demand.&#160; All such costs and expenses incurred by
Lender in remedying such Event of Default or such failed payment or act or in
appearing in, defending, or bringing any such action or proceeding shall bear
interest at the Default Rate, for the period after notice from Lender that such
cost or expense was incurred to the date of payment to Lender.&#160; All such costs and expenses incurred by
Lender together with interest thereon calculated at the Default Rate shall be
deemed to constitute a portion of the Debt and be secured by this Security
Instrument and the other Loan Documents and shall be immediately due and
payable upon demand by Lender therefor.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>ACTIONS AND PROCEEDINGS</u>.&#160; Lender has the right to appear in and defend
any action or proceeding brought with respect to the Property and to bring any
action or proceeding, in the name and on behalf of Borrower, which Lender, in
its discretion, decides should be brought to protect its interest in the
Property.</font></h2>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>RECOVERY OF SUMS REQUIRED TO BE PAID</u>.&#160; Lender shall have the right from time to time
to take action to recover any sum or sums which constitute a part of the Debt
as the same become due, without regard to whether or not the balance of the
Debt shall be due, and without prejudice to the right of Lender thereafter to
bring an action of foreclosure, or any other action, for a default or defaults
by Borrower existing at the time such earlier action was commenced.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>EXAMINATION OF BOOKS AND RECORDS</u>.&#160; At reasonable times and upon reasonable
notice, Lender, its agents, accountants and attorneys shall have the right to
examine the records, books, management and other papers of Borrower which
reflect upon its financial condition, at the Property or at any office
regularly maintained by Borrower where the books and records are located.&#160; Lender and its agents shall have the right to
make copies and extracts from the foregoing records and other papers.&#160; In addition, at reasonable times and upon reasonable
prior notice, Lender, its agents, accountants and attorneys shall have the
right to examine and audit the books and records of Borrower pertaining to the
income, expenses and operation of the Property during reasonable business hours
at any office of Borrower where the books and records are located.&#160; This <u>Section 7.6</u> shall apply
throughout the term of the Note and without regard to whether an Event of
Default has occurred or is continuing.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>OTHER RIGHTS, ETC.</u></font></h2>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
failure of Lender to insist upon strict performance of any term hereof shall
not be deemed to be a waiver of any term of this Security Instrument.&#160; Borrower shall not be relieved of Borrower&#146;s
obligations hereunder by reason of (i) the failure of Lender to comply with any
request of Borrower or any guarantor or indemnitor with respect to the Loan to
take any action to foreclose this Security Instrument or otherwise enforce any
of the provisions hereof or of the Note or the other Loan Documents, (ii) the
release, regardless of consideration, of the whole or any part of the Property,
or of any person liable for the Debt or any portion thereof, or (iii) any
agreement or stipulation by Lender extending the time of payment or otherwise
modifying or supplementing the terms of the Note, this Security Instrument or
the other Loan Documents.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; It
is agreed that the risk of loss or damage to the Property is on Borrower, and
Lender shall have no liability whatsoever for decline in value of the Property,
for failure to maintain the Policies, or for failure to determine whether
insurance in force is adequate as to the amount of risks insured.&#160; Possession by Lender shall not be deemed an
election of judicial relief, if any such possession is requested or obtained,
with respect to any Property or collateral not in Lender&#146;s possession.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Upon
an Event of Default and during the continuance thereof, Lender may resort for
the payment of the Debt to any other security held by Lender in such order and
manner as Lender, in its discretion, may elect.&#160;
Upon an Event of Default and during the continuance thereof, Lender may
take action to recover the Debt, or any portion thereof, or to enforce any
covenant hereof without prejudice to the right of Lender thereafter to
foreclose this Security Instrument. &#160;The
rights of Lender under this Security Instrument shall be separate, distinct and
cumulative and none shall be given effect to the exclusion of the others.&#160; No act of Lender shall be construed as an
election to proceed under any one provision herein to the</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 18.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">exclusion of any other provision.&#160;
Lender shall not be limited exclusively to the rights and remedies
herein stated but shall be entitled to every right and remedy now or hereafter
afforded at law or in equity.</font></h3>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>RIGHT TO RELEASE ANY PORTION OF THE PROPERTY</u>.&#160; Lender may release any portion of the
Property for such consideration as Lender may require without, as to the
remainder of the Property, in any way impairing or affecting the lien or
priority of this Security Instrument, or improving the position of any
subordinate lienholder with respect thereto, except to the extent that the
obligations hereunder shall have been reduced by the actual monetary
consideration, if any, received by Lender for such release, and may accept by
assignment, pledge or otherwise any other property in place thereof as Lender
may require without being accountable for so doing to any other
lienholder.&#160; The provisions of Sections
15.4 (Release of Units) and 15.5 (Release of Facilities) of the Loan Agreement
are hereby incorporated in this Security Agreement.&#160; This Security Instrument shall continue as a
lien and security interest in the remaining portion of the Property.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>RECOURSE AND CHOICE OF REMEDIES</u>.&#160; Notwithstanding any other provision of this
Security Instrument or the Loan Agreement, including, without limitation,
Section 21.1 of the Loan Agreement, Lender and other Indemnified Parties (as
hereinafter defined) are entitled to enforce the obligations of Borrower, any
guarantor and indemnitor contained in the Loan Agreement without first
resorting to or exhausting any security or collateral and without first having
recourse to the Note or any of the Property, through foreclosure, exercise of a
power of sale or acceptance of a deed in lieu of foreclosure or otherwise.&#160; Notwithstanding the foregoing, nothing herein
shall inhibit or prevent Lender from foreclosing or exercising a power of sale
pursuant to this Security Instrument or exercising any other rights and remedies
pursuant to the Loan Agreement, the Note, this Security Instrument and the
other Loan Documents, whether simultaneously with foreclosure proceedings or in
any other sequence.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>RIGHT OF ENTRY</u>.&#160; Upon reasonable prior notice to Borrower,
Lender and its agents shall have the right to enter and inspect the Property at
all reasonable times.&#160; Upon such entry,
Lender and its agents shall not unreasonably interfere with the operation,
construction and safety&#160; of the Property.</font></h2>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 8 -
[INTENTIONALLY OMITTED]</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 9 -
INDEMNIFICATION</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>GENERAL INDEMNIFICATION</u>.&#160; Borrower shall, at its sole cost and expense,
protect, defend, indemnify, release and hold harmless the Indemnified Parties
from and against any and all claims, suits, liabilities (including, without
limitation, strict liabilities), actions, proceedings, obligations, debts,
damages, losses, reasonable costs, expenses, fines, penalties, charges, fees,
judgments, awards, amounts paid in settlement, punitive damages, of whatever
kind or nature (including but not limited to reasonable attorneys&#146; fees and
other costs of defense) (collectively, the &#147;<b><u style="font-weight:bold;">Losses</u></b>&#148;) imposed upon or incurred by or asserted against
any Indemnified Parties and directly or indirectly arising out of or in any way
relating to any one or more of the following:&#160;
(a) ownership of this Security Instrument, the Property or any interest </font></h2>


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<h2 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">therein or receipt of any Rents; (b) any amendment to, or restructuring
of, the Debt, and the Note, the Loan Agreement, this Security Instrument, or
any other Loan Documents; (c) any and all lawful action that may be taken by
Lender in connection with the enforcement of the provisions of this Security
Instrument or the Loan Agreement or the Note or any of the other Loan
Documents, whether or not suit is filed in connection with same, or in
connection with Borrower, any guarantor or indemnitor and/or any partner, joint
venturer or shareholder thereof becoming a party to a voluntary or involuntary
federal or state bankruptcy, insolvency or similar proceeding; (d) any
accident, injury to or death of persons or loss of or damage to property
occurring in, on or about the Property or any part thereof or on the adjoining
sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways;
(e) any use, nonuse or condition in, on or about the Property or any part
thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent
parking areas, streets or ways; (f) any failure on the part of Borrower to
perform or be in compliance with any of the terms of this Security Instrument;
(g) performance of any labor or services or the furnishing of any materials or
other property in respect of the Property or any part thereof; (h) the failure
of any person to file timely with the Internal Revenue Service an accurate Form
1099-B, Statement for Recipients of Proceeds from Real Estate, Broker and
Barter Exchange Transactions, which may be required in connection with this
Security Instrument, or to supply a copy thereof in a timely fashion to the
recipient of the proceeds of the transaction in connection with which this
Security Instrument is made; (i) any failure of the Property to be in
compliance with any Legal Requirements; (j) the enforcement by any Indemnified
Party of the provisions of this Article 9; (k) any and all claims and demands
whatsoever which may be asserted against Lender by reason of any alleged
obligations or undertakings on its part to perform or discharge any of the
terms, covenants, or agreements contained in any Lease; (1) the payment of any
commission, charge or brokerage fee to anyone claiming through Borrower which
may be payable in connection with the funding of the Loan; or (m) any material
misrepresentation made by Borrower in this Security Instrument or any other
Loan Document; <em style="font-style:normal;text-decoration:underline;"><u>provided</u></em>, <em style="font-style:normal;text-decoration:underline;"><u>however</u></em>, Borrower shall
not indemnify any Indemnified Party from any loss or expense arising from such
Indemnified Party&#146;s willful misconduct, illegal acts, fraud or gross
negligence.&#160; Any amounts payable to
Lender by reason of the application of this Section 9.1 shall become due and
payable upon ten (10) Business Days written notice and shall bear interest at
the Default Rate from the date of such notice from Lender until paid.&#160; For purposes of this Article 9, the term &#147;<b><u style="font-weight:bold;">Indemnified Parties</u></b>&#148; means Lender and
any Person who is or will have been involved in the origination of the Loan,
any Person who is or will have been involved in the servicing of the Loan
secured hereby, any Person in whose name the encumbrance created by this
Security Instrument is or will have been recorded, persons and entities who may
hold or acquire or will have held a full or partial interest in the Loan
secured hereby (including, but not limited to, investors or prospective
investors in the Securities, as well as custodians, trustees and other fiduciaries
who hold or have held a full or partial interest in the Loan secured hereby for
the benefit of third parties) as well as the respective directors, officers,
shareholders, partners, employees, agents, servants, representatives,
contractors, subcontractors, affiliates, subsidiaries, participants, successors
and assigns of any and all of the foregoing (including but not limited to any
other Person who holds or acquires or will have held a participation or other
full or partial interest in the Loan, whether during the term of the Loan or as
a part of or following a foreclosure of the Loan and including, but not limited
to, any successors by merger, consolidation or acquisition of all or a
substantial portion of Lender&#146;s assets and business).</font></h2>


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<h2 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>MORTGAGE AND/OR INTANGIBLE TAX</u>.&#160; Borrower shall, at its sole cost and expense,
protect, defend, indemnify, release and hold harmless the Indemnified Parties
from and against any and all Losses imposed upon or incurred by or asserted
against any Indemnified Parties and directly or indirectly arising out of or in
any way relating to any tax on the making and/or recording of this Security
Instrument, the Note or any of the other Loan Documents, but excluding any
income, franchise or other similar taxes.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>ERISA INDEMNIFICATION</u>.&#160; Borrower shall, at its sole cost and expense,
protect, defend, indemnify, release and hold harmless the Indemnified Parties
from and against any and all Losses (including, without limitation, reasonable
attorneys&#146; fees and costs incurred in the investigation, defense, and
settlement of Losses incurred in correcting any prohibited transaction or in
the sale of a prohibited loan, and in obtaining any individual prohibited
transaction exemption under ERISA that may be required in connection with the
Loan, in Lender&#146;s sole discretion) that Lender may incur, directly or
indirectly, as a result of a default under Section 18.2 of the Loan Agreement.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>DUTY TO DEFEND; ATTORNEYS&#146; FEES AND OTHER FEES
AND EXPENSES</u>.&#160; If any of the
Indemnified Parties claims indemnification hereunder, such Indemnified Party
shall promptly notify Borrower of the nature and basis of the claim or legal or
administrative proceeding giving rise to such claim or indemnification (each,
an &#147;<u>Indemnified Claim</u>&#148;).&#160; After
notice by the Indemnified Party, Borrower shall defend such Indemnified Party
(if requested by any Indemnified Party, in the name of the Indemnified Party)
by attorneys and other professionals reasonably approved by the Indemnified
Party and shall have the right to negotiate and enter into and/or consent to
any settlement, subject to the prior approval of the Indemnified Party (which
approval shall not be unreasonably withheld), provided that (x) such approval
shall not be required in connection with any settlement which includes any
unconditional release of the Indemnified Party and all related actions for all
liability for which the Indemnified Party is seeking indemnification and (y)
there is no admission of wrongdoing on the part of the Indemnified Party.&#160; If Borrower has assumed the defense of any
action brought against the Indemnified Parties, then the Indemnified Parties
shall not settle such action without the consent of Borrower.&#160; Notwithstanding the foregoing, the
Indemnified Parties may engage their own attorneys and other professionals to
defend or assist them in the event the defense as conducted by Borrower is not
proceeding or being conducted in a satisfactory manner or that a conflict of
interest exists between any of the parties represented by Borrower&#146;s counsel in
such action or proceeding; <u>provided,</u>  <u>however</u>, (x) that so long as
no Event of Default exists, the Indemnified Parties shall provide Borrower with
fifteen (15) days prior written notice of any determination pursuant to this <u>Section
9.4</u> (unless the Indemnified Parties determine, in their sole discretion,
that their interest may be adversely affected prior to the expiration of such
notice period, in which case, the Indemnified Parties may take immediate action
and send written notice to Borrower thereafter); and (y) shall not enter into
any settlement of such a proceeding without the consent of Borrower, which
consent shall not be unreasonably withheld, conditioned or delayed.&#160; Borrower shall not be liable for the expenses
of more than one such separate counsel unless an Indemnified Party shall have
reasonably concluded that there may be legal defenses available to it that are
different from or additional to those available to another Indemnified Party.&#160; Upon demand, Borrower shall pay or, in the
sole and absolute discretion of the Indemnified Parties, reimburse, the
Indemnified Parties for the payment of reasonable fees and </font></h2>


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<h2 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">disbursements of attorneys, engineers, environmental consultants,
laboratories and other professionals in connection therewith.</font></h2>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 10 - WAIVERS</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>WAIVER OF COUNTERCLAIM</u>.&#160; To the extent permitted by applicable law,
Borrower hereby waives the right to assert a counterclaim, other than a
mandatory or compulsory counterclaim, in any action or proceeding brought
against it by Lender arising out of or in any way connected with this Security
Instrument, the Loan Agreement, the Note, any of the other Loan Documents, or
the Obligations.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>MARSHALLING AND OTHER MATTERS</u>.&#160; To the extent permitted by applicable law,
Borrower hereby waives the benefit of all appraisement, valuation, stay,
extension, reinstatement and redemption laws now or hereafter in force and all
rights of marshalling in the event of any sale hereunder of the Property or any
part thereof or any interest therein.&#160;
Further, Borrower hereby expressly waives any and all rights of
redemption from sale under any order or decree of foreclosure of this Security
Instrument on behalf of Borrower, and on behalf of each and every person acquiring
any interest in or title to the Property subsequent to the date of this
Security Instrument and on behalf of all persons to the extent permitted by
applicable law.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>WAIVER OF NOTICE</u>.&#160; To the extent permitted by applicable law and
except as provided in the Loan Agreement, Borrower shall not be entitled to any
notices of any nature whatsoever from Lender except with respect to matters for
which this Security Instrument or the Loan Documents specifically and expressly
provide for the giving of notice by Lender to Borrower and except with respect
to matters for which Lender is required by applicable law to give notice, and
Borrower hereby expressly waives the right to receive any notice from Lender
with respect to any matter for which this Security Instrument or the Loan
Agreement does not specifically and expressly provide for the giving of notice
by Lender to Borrower.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>WAIVER OF STATUTE OF LIMITATIONS</u>.&#160; To the extent permitted by applicable law,
Borrower hereby expressly waives and releases to the fullest extent permitted
by law, the pleading of any statute of limitations as a defense to payment of
the Debt or performance of its Other Obligations.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>SURVIVAL</u>.&#160; The indemnifications made pursuant to <u>Section
9.3</u> herein shall in no way be impaired by: (i) any satisfaction, release or
other termination of this Security Instrument, any assignment or other transfer
of all or any portion of this Security Instrument or Lender&#146;s interest in the
Property (but, in such case, shall benefit both Indemnified Parties and any
assignee or transferee), (ii) any exercise of Lender&#146;s rights and remedies
pursuant hereto including but not limited to foreclosure or acceptance of a
deed or assignment of lease in lieu of foreclosure, (iii) any exercise of any
rights and remedies pursuant to the Loan Agreement, the Note or any of the
other Loan Documents, (iv) any transfer of all or any portion of the Property
(whether by Borrower or by Lender following foreclosure or acceptance of a deed
or assignment of lease in lieu of foreclosure or at any other time), (v) any
amendment to this Security Instrument, the Loan Agreement, the Note or the other
Loan Documents, and (vi) any</font></h2>


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<h2 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">act or omission that might otherwise be construed as a release or
discharge of Borrower from the obligations pursuant hereto.</font></h2>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 11 - EXCULPATION</font></h1>

<p style="margin:12.0pt 0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The provisions of Section
22.14 of the Loan Agreement are hereby incorporated by reference into this
Security Instrument to the same extent and with the same force as if fully set
forth herein.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 12 - NOTICES</font></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All notices or other written communications hereunder
shall be delivered in accordance with Article XXIII of the Loan Agreement.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 13 - APPLICABLE
LAW</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 13.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>GOVERNING
LAW</u>.&#160; <b>(A)</b>&#160; <b>THIS SECURITY INSTRUMENT WAS NEGOTIATED IN THE STATE
OF NEW YORK, AND MADE BY BORROWER AND ACCEPTED BY LENDER IN THE STATE OF NEW
YORK, AND THE PROCEEDS OF THE NOTE SECURED HEREBY WERE DISBURSED FROM THE STATE
OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE
PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS,
INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS SECURITY INSTRUMENT AND THE
OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK TO CONTRACTS MADE AND PERFORMED IN SUCH
STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS) AND ANY APPLICABLE LAW
OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES (I) THE PROVISIONS
FOR THE CREATION, PERFECTION, PRIORITY AND ENFORCEMENT OF THE LIENS AND
SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN
DOCUMENTS WITH RESPECT TO THE PROPERTY (OTHER THAN THAT DESCRIBED IN SUBPARAGRAPH
II BELOW) SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE
IN WHICH THE PROPERTY AND FIXTURES ARE LOCATED AND (II) WITH RESPECT TO THE
PERFECTION, PRIORITY AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS
CREATED BY THIS SECURITY INSTRUMENT AND THE OTHER LOAN DOCUMENTS IN PROPERTY
WHOSE PERFECTION AND PRIORITY IS COVERED BY ARTICLE 9 OF THE UCC (INCLUDING,
WITHOUT LIMITATION, THE ACCOUNTS), THE LAW OF THE JURISDICTION APPLICABLE IN
ACCORDANCE WITH SECTIONS 9-301 THROUGH 9-307 OF THE UCC AS IN EFFECT IN THE
STATE OF HAWAII SHALL GOVERN.</b></font></h2>

<h5 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(B)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; ANY
LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR
RELATING TO THIS SECURITY INSTRUMENT MAY AT LENDER&#146;S OPTION BE INSTITUTED IN
ANY FEDERAL</font></b></h5>


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<h5 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></h5>

<h5 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">OR
STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION
5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND BORROWER AND LENDER EACH
WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR
FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER AND
LENDER EACH HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN
ANY SUIT, ACTION OR PROCEEDING.</font></b></h5>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 13.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>USURY LAWS</u>.&#160; Notwithstanding anything to the contrary, (a)
all agreements and communications between Borrower and Lender are hereby and
shall automatically be limited so that, after taking into account all amounts
deemed interest, the interest contracted for, charged or received by Lender
shall never exceed the maximum lawful rate or amount, (b) in calculating
whether any interest exceeds the lawful maximum, all such interest shall be
amortized, prorated, allocated and spread over the full amount and term of all
principal indebtedness of Borrower to Lender, and (c) if through any
contingency or event, Lender receives or is deemed to receive interest in
excess of the lawful maximum, any such excess shall be deemed to have been
applied toward payment of the principal of any and all then outstanding
indebtedness of Borrower to Lender, or if there is no such indebtedness, shall
immediately be returned to Borrower.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 13.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>PROVISIONS SUBJECT TO APPLICABLE LAW</u>.&#160; All rights, powers and remedies provided in
this Security Instrument may be exercised only to the extent that the exercise
thereof does not violate any applicable provisions of law and are intended to
be limited to the extent necessary so that they will not render this Security
Instrument invalid, unenforceable or not entitled to be recorded, registered or
filed under the provisions of any applicable law.&#160; If any term of this Security Instrument or
any application thereof shall be invalid or unenforceable, the remainder of
this Security Instrument and any other application of the term shall not be
affected thereby.</font></h2>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 14 - DEFINITIONS</font></h1>

<p style="margin:12.0pt 0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All capitalized terms not
defined herein shall have the respective meanings set forth in the Loan
Agreement.&#160; Unless the context clearly
indicates a contrary intent or unless otherwise specifically provided herein,
words used in this Security Instrument may be used interchangeably in singular
or plural form and the word &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Borrower</u></b></font>&#148; shall mean &#147;each Borrower and any
subsequent owner or owners of the Property or any part thereof or any interest
therein,&#148; the word &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Lender</u></b></font>&#148; shall mean &#147;Lender and any subsequent holder
of the Note,&#148; the word &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Note</u></b></font>&#148; shall mean &#147;the Note and any other evidence of
indebtedness secured by this Security Instrument,&#148; the word &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>Property</u></b></font>&#148;
shall include any portion of the Property and any interest therein, and the
phrases &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>attorneys&#146;
fees</u></b></font>&#148;, &#147;<b><u style="font-weight:bold;">l<font style="font-weight:bold;text-decoration:underline;"><b><u>egal fees</u></b></font></u></b>&#148;
and &#147;<font style="font-weight:bold;text-decoration:underline;"><b><u>counsel
fees</u></b></font>&#148; shall include any and all reasonable attorneys&#146;, paralegal
and law clerk fees and disbursements, including, but not limited to, fees and
disbursements at the pre-trial, trial and appellate levels incurred or paid by
Lender in protecting its interest in the Property, the Leases and the Rents and
enforcing its rights hereunder.</font></p>


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<h1 align="center" style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 15 -
MISCELLANEOUS PROVISIONS</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>NO ORAL CHANGE</u>.&#160; This Security Instrument, and any provisions
hereof, may not be modified, amended, waived, extended, changed, discharged or
terminated orally or by any act or failure to act on the part of Borrower or
Lender, but only by an agreement in writing signed by the party against whom
enforcement of any modification, amendment, waiver, extension, change,
discharge or termination is sought.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>SUCCESSORS AND ASSIGNS</u>.&#160; This Security Instrument shall be binding
upon and inure to the benefit of Borrower and Lender and their respective
successors and assigns forever.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>INAPPLICABLE PROVISIONS</u>.&#160; If any term, covenant or condition of the
Loan Agreement, the Note or this Security Instrument is held to be invalid,
illegal or unenforceable in any respect, the Loan Agreement, the Note and this
Security Instrument shall be construed without such provision.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>HEADINGS, ETC.</u>&#160; The headings and captions of various Sections
of this Security Instrument are for convenience of reference only and are not
to be construed as defining or limiting, in any way, the scope or intent of the
provisions hereof.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>NUMBER AND GENDER</u>.&#160; Whenever the context may require, any
pronouns used herein shall include the corresponding masculine, feminine or
neuter forms, and the singular form of nouns and pronouns shall include the
plural and vice versa.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>ENTIRE AGREEMENT</u>.&#160; The Note, the Loan Agreement, this Security
Instrument and the other Loan Documents constitute the entire understanding and
agreement between Borrower and Lender with respect to the transactions arising
in connection with the Debt and supersede all prior written or oral
understandings and agreements between Borrower and Lender with respect
thereto.&#160; Borrower hereby acknowledges
that, except as incorporated in writing in the Note, the Loan Agreement, this
Security Instrument and the other Loan Documents, there are not, and were not,
and no persons are or were authorized by Lender to make, any representations,
understandings, stipulations, agreements or promises, oral or written, with
respect to the transaction which is the subject of the Note, the Loan
Agreement, this Security Instrument and the other Loan Documents.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>LIMITATION ON LENDER&#146;S RESPONSIBILITY</u>.&#160; No provision of this Security Instrument
shall operate to place any obligation or liability for the control, care,
management or repair of the Property upon Lender, nor shall it operate to make
Lender responsible or liable for any waste committed on the Property by the
tenants or any other Person, or for any dangerous or defective condition of the
Property, or for any negligence in the management, upkeep, repair or control of
the Property resulting in loss or injury or death to any tenant, licensee,
employee or stranger.&#160; Nothing herein
contained shall be construed as constituting Lender a &#147;mortgagee in possession.&#148;</font></h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 15.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>JOINT AND SEVERAL</u>.&#160; If more than one Person has executed this
Security Instrument as &#147;Borrower,&#148; the representations, covenants, warranties
and obligations of all such Persons hereunder shall be joint and several.</h2>


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<h1 align="center" style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;punctuation-wrap:simple;text-align:center;text-autospace:none;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;punctuation-wrap:simple;text-align:center;text-autospace:none;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 16 - <u>ADDITIONAL LEASEHOLD MORTGAGE
PROVISIONS</u></font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In addition to the representations
set forth herein, Borrower hereby represents that: no term, covenant or
provision of the Ground Lease prohibits or imposes a limitation upon the grant
and demise of the Mortgage, nor precludes, limits, conflicts with or interferes
with the powers, rights and remedies granted to Lender hereunder or thereunder.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In addition to the covenants set
forth herein, Borrower hereby covenants:</font></h2>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; to
promptly pay, without any allowance for grace periods, all rent, additional
rent and other sums or charges required to be paid by the lessee under the
Ground Lease;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; to
promptly and faithfully observe, perform and comply with all the terms,
covenants and provisions of the Ground Lease on its part to be observed,
performed and complied with, at the times set forth therein, without allowance
for grace periods, if any;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; to
not do, permit, suffer or refrain from doing anything as a result of which
there could be a default under or breach of any of the terms of the Ground
Lease; and</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; not
to cancel or terminate the Ground Lease.</font></h4>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The lien of the Mortgage shall extend
to cover all of Borrower&#146;s respective rights and remedies under or pursuant to
11 U.S.C. &#167; 365(h) including, without limitation, all of Borrower&#146;s rights to
remain in possession of the leasehold interest granted under the Ground Lease.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall not, without Lender&#146;s
prior written consent, elect to treat the leasehold encumbered by the Mortgage
as terminated under 11 U.S.C. &#167; 365(h)(1).&#160;
Any such election made without Lender&#146;s prior written consent shall be
null and void and, at Lender&#146;s election, shall constitute a substantial and
material default hereunder.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower hereby unconditionally
assigns, transfers and sets over to Lender all of Borrower&#146;s respective right,
title and interest in and to any claim for the payment of damages arising from
any rejection of the Ground Lease under the Bankruptcy Code (11 U.S.C. &#167; 101 <u>et</u>
<u>seq</u>.) (the &#147;<u>Bankruptcy Code</u>&#148;).&#160;
Lender shall have the right to proceed in its own name or in the name of
Borrower (for which purpose Borrower hereby appoints Lender as its
attorney-in-fact, which appointment shall be coupled with an interest and
irrevocable) in respect of any claim, suit, action or proceeding relating to
the rejection of such leasehold including, without limitation, the right to
file and prosecute, to the exclusion of Borrower, any proofs of claim,
complaints, motions, applications, notices and other documents in any case
concerning the lessor of such leasehold under the Bankruptcy Code.&#160; This assignment constitutes a present,
irrevocable and unconditional assignment and shall continue in effect until all
of the indebtedness and obligations secured hereby shall have been satisfied
and discharged in full.&#160; Any amounts
received by Lender as damages arising out of the rejection of such leasehold
shall be applied first</font></h2>


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<h2 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">to all costs
and expenses of Lender (including, without limitation, actual out-of-pocket
attorneys&#146; fees (including on appeal)) incurred in connection with the exercise
of any of its rights or remedies under this subsection, and then in accordance
with Section 2(c) hereof.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If pursuant to 11 U.S.C. &#167; 365(h)(1)
Borrower seeks to offset against rent reserved under the Ground Lease, the
amount of any damages caused by the non-performance by the lessor of the Ground
Lease of any of such lessor&#146;s obligations under the Ground Lease after the
rejection by such lessor of such leasehold under the Bankruptcy Code, Borrower
shall, prior to effecting such offset, notify Lender of its intent so to do,
setting forth the amounts proposed to be so offset and the basis therefor.&#160; Lender shall have the right to object to all
or any part of such offset, and in the event of such objection Borrower shall
not effect any offset of the amounts so objected to by Lender.&#160; Neither Lender&#146;s failure to object as
aforesaid nor any objection or other communication between Lender and Borrower
relating to such offset shall constitute an approval of any such offset by
Lender.&#160; Borrower shall indemnify and
save Lender harmless from and against any and all claims, demands, actions,
suits, proceedings, damages, losses, costs and expenses of every nature
whatsoever (including, without limitation, actual out-of-pocket attorneys&#146; fees
(including on appeal)) arising from or relating to any offset by Borrower
against the rent reserved in the Ground Lease.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If any action, proceeding, motion or
notice shall be commenced or filed in respect of Borrower or the Mortgaged
Property in connection with any case under the Bankruptcy Code (other than
those actions or proceedings under the Bankruptcy Code commenced or filed with
respect to the fee estate of the Premises so long as Borrower&#146;s leasehold
interest in the Mortgaged Premises is not negatively impacted by such actions
or proceedings), Lender shall have the option, to the exclusion of Borrower,
exercisable upon notice from Lender to Borrower, to conduct and control any
such litigation with counsel of Lender&#146;s choice.&#160; Lender may proceed in its own name or in the
name of Borrower in connection with any such litigation (for which purpose
Borrower hereby appoints Lender as its attorney-in-fact, which appointment shall
be coupled with an interest and irrevocable), and Borrower agrees to execute
any and all powers, authorizations, consents and other documents required by
Lender in connection therewith.&#160; Borrower
shall, upon demand, pay to Lender all costs and expenses (including actual
out-of-pocket attorneys&#146; fees) paid or incurred by Lender in connection with
the prosecution or conduct of any such proceedings.&#160; Any such costs or expenses not paid by
Borrower as aforesaid shall be secured by the lien of the Mortgage and shall be
added to the principal amount of the indebtedness secured hereby.&#160; Without the prior written consent of Lender,
Borrower shall not in any such case under the Bankruptcy Code commence any
action, suit, proceeding or case, or file any application or make any motion,
in respect of the leasehold encumbered by the Mortgage.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall promptly after
obtaining knowledge thereof notify Lender of any filing by or against the
lessor of the leasehold encumbered by the Mortgage of a petition under the
Bankruptcy Code.&#160; Borrower shall
thereafter forthwith deliver to Lender copies of any notices, summonses,
pleadings or other papers in connection with any such petition and any
proceedings relating thereto.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If there shall be filed by or against
Borrower a petition under the Bankruptcy Code, and Borrower shall determine to
reject its leasehold interest pursuant to</font></h2>


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<h2 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 365(a)
of the Bankruptcy Code, Borrower shall give Lender not less than ten (10) days&#146;
prior notice of the date on which Borrower shall apply to the bankruptcy court
for authority to reject such leasehold.&#160;
Lender shall have the right, but not the obligation, to serve upon
Borrower within such ten-day period a notice stating that: (i) Lender demands
that Borrower assume and assign such leasehold and the Ground Lease to Lender
pursuant to Section 365 of the Bankruptcy Code; and (ii) Lender covenants to
cure or provide adequate assurance of prompt cure of all defaults and provide
adequate assurance of future performance under the Ground Lease.&#160; If Lender serves upon Borrower the notice
described in the preceding sentence, Borrower shall not seek to reject the
leasehold and shall comply with the demand provided for in clause (i) of the
preceding sentence within thirty (30) days after the notice shall have been
given, subject to the performance by Lender of the covenant provided for in
clause (ii) of the preceding sentence.</font></h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;text-indent:72.0pt;vertical-align:baseline;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 16.10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>IF AT ANY TIME THAT ANY PORTION OF THE LOAN IS OUTSTANDING AND IS
SECURED BY THE MORTGAGE, BORROWER ACQUIRES FEE TITLE TO ALL OR ANY PORTION OF
THE LEASEHOLD ENCUMBERED BY THIS MORTGAGE OR IF BORROWER ACQUIRES ALL OR ANY
PORTION OF ANY OF THE LESSOR&#146;S INTERESTS UNDER THE GROUND LEASE: (A) NO PORTION
OF THE LEASEHOLD SHALL BE MERGED INTO THE FEE INTERESTS OR THE INTERESTS IN THE
GROUND LEASE SO ACQUIRED BY BORROWER, AND THE GROUND LEASE AND THE LEASEHOLD
SHALL BE PRESERVED AND SHALL MAINTAIN THEIR CHARACTER AND IDENTITY AS SEPARATE,
DISTINCT AND DISCRETE FROM THE FEE INTERESTS RELATIVE TO THE PROPERTY; (B) TO
THE EXTENT NECESSARY TO CREATE A FIRST PRIORITY SECURITY INTEREST IN THE FEE
PROPERTY, THE LIEN OF THIS MORTGAGE SHALL BE EXTENDED, SPREAD AND ATTACH TO AND
ENCUMBER SUCH FEE INTEREST, ON THE TERMS AND CONDITIONS HEREIN SET FORTH WITH RESPECT
TO OTHER, SIMILAR INTERESTS ENCUMBERED HEREBY, WITH THE SAME RIGHTS AND
OBLIGATIONS ATTENDANT THERETO AND (C) BORROWER SHALL HAVE EXECUTED AND
DELIVERED TO LENDER SUCH DOCUMENTATION AS REQUESTED BY LENDER TO CONFIRM THE
LIEN OF THIS SECURITY INSTRUMENT ON SUCH FEE INTEREST.</b></h2>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 17 -
STATE-SPECIFIC PROVISIONS</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 17.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>PRINCIPALS OF CONSTRUCTION</u>.&#160; In the event of any inconsistencies between
the terms and conditions of this <u>Article 17</u> and the other terms and
conditions of this Security Instrument, the terms and conditions of this <u>Article
17</u> shall control and be binding.</font></h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 17.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>FIXTURE FILING
PROVISION</u>.&#160; Upon recording
this Security Instrument in the real property records, this Security Instrument
shall be effective as a financing statement filed as a fixture filing.&#160; In addition, a carbon, photographic or other
reproduction of this Security Instrument and/or any financing statement
relating thereto shall be sufficient for filing and/or recording as a financing
statement.&#160; The filing of any other
financing statement relating to any personal property rights or interests
described herein shall not be construed to diminish any right or priority
hereunder.</h2>


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<h2 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 17.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>INTEREST RATE</u>.&#160; Borrower agrees to pay an effective rate of
interest equal to (i) the Applicable Interest Rate, and (ii) the additional
rate, if any, resulting from any charge or fee in the nature of interest paid
or to be paid by Borrower in connection with the Note, this Security Instrument
or any Loan Document or other document executed and delivered by Borrower to
Lender in connection with the indebtedness evidenced by the Note.&#160; The total liability of Borrower for the
payment of interest under the Note and this Security Instrument shall not
exceed the applicable limit imposed by the usury laws of the State of New
York.&#160; If Lender receives interest in an
amount which exceeds such limit, such excess amount shall be applied instead to
the reduction of the unpaid principal balance and not to the payment of
principal and lawful interest, the surplus shall be remitted to Borrower by
Lender, and Borrower hereby agrees to accept such remittance.</h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 17.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Lender&#146;s
Remedies</u>.&#160; Lender shall have all of
the remedies provided under Chapter 667 and Article 9 of Chapter 490, Hawaii
Revised Statutes, as amended.</font></h2>

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<p style="margin:0pt 0pt .0001pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, THIS SECURITY INSTRUMENT has been executed by
Borrower as of the day and year first above written.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --><b>BORROWER:</b></p>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="57%" colspan="8" valign="top" style="padding:0pt .7pt 0pt 0pt;width:57.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KAPALUA BAY, LLC,</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="57%" colspan="8" valign="top" style="padding:0pt .7pt 0pt 0pt;width:57.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Delaware limited liability company</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="3%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
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  <td width="0%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kapalua Bay Holdings, LLC,</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="3%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="0%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Delaware limited liability company,</font></p>
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  <td width="3%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="0%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="52%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its Managing Member</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="3%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="0%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="3%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="0%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
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  <td width="47%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MLP KB Partner LLC,</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="0%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="47%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Hawaii limited liability company,</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="3%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="0%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its Managing Member</font></p>
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  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="3%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="0%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="47%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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 <tr style="page-break-inside:avoid;">
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="0%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Maui Land &amp; Pineapple Company,</font></p>
  </td>
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  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="0%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Inc., a Hawaii corporation,</font></p>
  </td>
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  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="0%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Managing Member</font></p>
  </td>
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  <td width="100%" colspan="9" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="100%" colspan="9" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="44%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="1%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:47.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ ROBERT WEBBER</font></p>
  </td>
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  <td width="44%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="6%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="1%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:47.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">R. WEBBER</font></p>
  </td>
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  <td width="44%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="6%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
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  <td width="1%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="47%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:47.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CFO</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="1%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="47%" colspan="2" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:47.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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  <td width="44%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="6%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
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  <td width="1%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:47.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ RYAN CHURCHILL</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="1%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:47.58%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;RYAN
  CHURCHILL</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="1%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:47.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VICE PRESIDENT/COMMUNITY</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.44%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:47.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;DEVELOPMENT</font></p>
  </td>
 </tr>
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  <td width="324" style="border:none;"></td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>a06-16299_1ex10d3.htm
<DESCRIPTION>EX-10
<TEXT>
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<head>






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<body lang="EN-US">

<div>

<p align="right" style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.3</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">PROMISSORY NOTE</font></u></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="69%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:69.84%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->$370,000,000.00</p>
  </td>
  <td width="30%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.16%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New York, New York<br>
  July 14, 2006</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 6.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FOR VALUE RECEIVED, <b>KAPALUA BAY,
LLC</b>, a Delaware limited liability company, having an address at c/o&nbsp;Maui
Land &amp; Pineapple Company, Inc., 120 Kane Street, Kapalua, Maui, Hawaii
96732 (&#147;<i>Borrower</i>&#148;),
hereby unconditionally promises to pay to the order of <b>LEHMAN
BROTHERS HOLDINGS INC</b>.,&#160; a
Delaware corporation, having an address at 399 Park Avenue, New York, New York
10022 (&#147;<i>Lender</i>&#148;),
as payee, at its office set forth above or at such other place as the holder
hereof may from time to time designate in writing, the principal sum of THREE
HUNDRED SEVENTY MILLION and 00/100 DOLLARS ($370,000,000.00), or so much
thereof as is advanced pursuant to the Loan Agreement (hereinafter defined) in
lawful money of the United States of America with interest thereon to be
computed on the unpaid principal balance from time to time outstanding at the
Applicable Rate or, if applicable, the Default Rate, and to be paid in accordance
with the terms of this Note and that certain Construction Loan Agreement dated
the date hereof between Borrower and Lender (the &#147;<i>Loan
Agreement</i>&#148;).&#160; All capitalized
terms not defined herein shall have the respective meanings set forth in the
Loan Agreement.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE I</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PAYMENT
TERMS</font></b></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower agrees to pay the principal sum of
this Note and interest on the outstanding principal balance of this Note in
accordance with this Note and the Loan Agreement.&#160; The outstanding principal balance of this Note
may only be prepaid in accordance with the Loan Agreement.&#160; The outstanding principal balance of this
Note, all accrued and unpaid interest thereon and all other amounts due
hereunder and under the Mortgage and the other Loan Documents shall be due and
payable on the Maturity Date or such other date on which by acceleration or
otherwise the principal sum of this Note becomes due and payable in accordance
with the Loan Agreement.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interest on the outstanding principal balance
of this Note shall accrue at the Applicable Rate and shall be calculated as
provided in Section 5.1(f) of the Loan Agreement.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On or before 3:00 PM (New York time) on each
Payment Date, Borrower shall make payments of interest due and payable
hereunder by deposit of immediately available funds to such account as Lender
may designate from time to time.</font></h2>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE II</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEFAULT
AND ACCELERATION</font></b></h1>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Debt shall without notice become immediately due
and payable at the option of Lender if any payment required in this Note is not
paid on or prior to the date when due or if</font></p>

<br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">not paid on the Maturity
Date or on the happening of any other Event of Default which continues beyond
applicable notice and grace periods.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE III</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEFAULT
INTEREST</font></b></h1>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower hereby agrees that upon the occurrence and
during the continuance of an Event of Default, Lender shall be entitled to
receive and Borrower shall pay interest on the entire unpaid principal sum at
the Default Rate.&#160; The Default Rate shall
be computed from the occurrence of the Event of Default until the earlier of
the date upon which the Event of Default is cured or waived or the date upon
which the Debt is paid in full.&#160; Interest
calculated at the Default Rate shall be added to the Debt, and shall be deemed
secured by the Mortgage and the other Loan Documents.&#160; This clause, however, shall not be construed
as an agreement or privilege to extend the date of the payment of the Debt, nor
as a waiver of any other right or remedy accruing to Lender by reason of the
occurrence and continuance of any Event of Default.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE IV</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LOAN
DOCUMENTS</font></b></h1>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Note is secured by the Mortgage and the other
Loan Documents.&#160; All of the terms,
covenants and conditions contained in the Loan Agreement, the Mortgage and the
other Loan Documents are hereby made part of this Note to the same extent and
with the same force as if they were fully set forth herein.&#160; In the event of a conflict or inconsistency
between the terms of this Note and the Loan Agreement, the terms and provisions
of the Loan Agreement shall govern.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE V</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SAVINGS
CLAUSE</font></b></h1>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding anything to the contrary, (a)&nbsp;all
agreements and communications between Borrower and Lender are hereby and shall
automatically be limited so that, after taking into account all amounts deemed
interest, the interest contracted for, charged or received by Lender shall
never exceed the maximum legal rate, (b)&nbsp;in calculating whether any
interest exceeds the maximum legal rate, all such interest shall be amortized,
prorated, allocated and spread over the full amount and term of all outstanding
principal indebtedness with respect to the Loan to Borrower by Lender, and
(c)&nbsp;if through any contingency or event, Lender receives or is deemed to
receive interest in excess of the maximum legal rate, any such excess shall be
deemed to have been applied to the outstanding principal amount of the Loan,
with any excess refunded to Borrower.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE VI</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NO ORAL
CHANGE</font></b></h1>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Note may not be modified, amended, waived,
extended, changed, discharged or terminated orally or by any act or failure to
act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt 2.7pt;page-break-after:avoid;text-align:center;text-indent:-2.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE VII</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt 2.7pt;page-break-after:avoid;text-align:center;text-indent:-2.7pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WAIVERS</font></b></h1>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as otherwise provided in the Loan Agreement,
Borrower and all others who may become liable for the payment of all or any
part of the Debt do hereby severally waive presentment and demand for payment,
notice of dishonor, notice of intention to accelerate, notice of acceleration,
protest and notice of protest and non-payment and all other notices of any
kind.&#160; No release of any security for the
Debt or extension of time for payment of this Note or any installment hereof,
and no alteration, amendment or waiver of any provision of this Note, the Loan
Agreement or the other Loan Documents made by agreement between Lender or any
other Person shall release, modify, amend, waive, extend, change, discharge,
terminate or affect the liability of Borrower, and any other Person who may
become liable for the payment of all or any part of the Debt.&#160; No notice to or demand on Borrower shall be
deemed to be a waiver of the obligation of Borrower or of the right of Lender
to take further action without further notice or demand as provided for in this
Note.&#160; If Borrower is a partnership, the
agreements herein contained shall remain in force and applicable,
notwithstanding any changes in the individuals comprising the partnership, and
the term &#147;Borrower,&#148; as used herein, shall include any alternate or successor
partnership, but any predecessor partnership shall not thereby be released from
any liability.&#160; If Borrower is a
corporation, the agreements contained herein shall remain in full force and
applicable notwithstanding any changes in the shareholders comprising, or the
officers and directors relating to, the corporation, and the term &#147;Borrower&#148; as
used herein, shall include any alternative or successor corporation, but any
predecessor corporation shall not be relieved of liability hereunder.&#160; If Borrower is a limited liability company,
the agreements herein contained shall remain in force and applicable,
notwithstanding any changes in the individuals comprising the members thereof,
and the term &#147;Borrower,&#148; as used herein, shall include any alternate or
successor limited liability company, but any predecessor limited liability
company shall not thereby be released from any liability hereunder.&#160; Nothing in this <u>Article VII</u> shall be
construed as a consent to, or a waiver of, any prohibition or restriction on
transfers of interests in such partnership, limited liability company or
corporation, which may be set forth in the Loan Agreement or any of the other
Loan Documents.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE VIII</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TRANSFER</font></b></h1>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to and in accordance with the Loan Agreement,
upon the transfer of this Note, Borrower hereby waiving notice of any such
transfer, Lender may deliver all the collateral mortgaged, granted, pledged or
assigned pursuant to the Loan Documents, or any part thereof, to the transferee
who shall thereupon become vested with all the rights herein or under
applicable Laws given to Lender with respect thereto, and Lender shall
thereafter forever be relieved and fully discharged from any liability or
responsibility in the matter arising after the date of transfer, provided that
Lender shall retain all rights hereby given to it and obligations hereunder
with respect to any liabilities and the collateral not so transferred.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE IX</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXCULPATION</font></b></h1>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Loan shall be non-recourse to Borrower and its
respective officers, directors, employees, members, partners and Affiliates
(collectively, the &#147;<u>Exculpated Parties</u>&#148;), and accordingly, Lender shall
not enforce the liability and obligation of Borrower to perform and observe the
obligations contained in this Note and the other Loan Documents by an action or
proceeding wherein a money judgment shall be sought against Borrower or any of
the other Exculpated Parties, except that Lender may bring a foreclosure
action, an action for specific performance or any other appropriate action or
proceeding to enable Lender to enforce and realize upon this Note and the other
Loan Documents, and the interests in the Project and any other collateral given
to Lender pursuant to the Mortgage or any of the other Loan Documents; <u>provided</u>,
<u>however</u>, that, except as specifically provided in this <u>Article IX</u>,
any judgment in any such action or proceeding shall be enforceable against
Borrower only to the extent of Borrower&#146;s interest in the Project and in any
other collateral given to Lender pursuant to the Mortgage or any of the other
Loan Documents.&#160; Lender, by accepting
this Note and the other Loan Documents, agrees that it shall not sue for, seek
or demand any deficiency judgment against Borrower or the Exculpated Parties in
any such action or proceeding, under, by reason of or in connection with this
Note or the other Loan Documents.&#160; The
provisions of this <u>Article IX</u> shall not, however: (i) constitute a
waiver, release or impairment of any obligation evidenced or secured by this
Note or the other Loan Documents; (ii) impair the right of Lender to name
Borrower as a party defendant in any action or suit for foreclosure and sale
under the Mortgage; (iii) affect the validity or enforceability of any guaranty
or indemnity made in connection with this Note or the other Loan Documents
against the party having made the same; (iv) impair the right of Lender to
obtain the appointment of a receiver; (v) impair the enforcement of the
assignment of leases and rents in favor of Lender; (vi) impair the right of
Lender to bring suit with respect to fraud or intentional misrepresentation by
Borrower or any other person or entity in connection with this Note or the
other Loan Documents; or (vii) affect the validity or enforceability of the
Environmental Indemnity or limit the liability of Borrower or any other party
thereunder.</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nothing in this <u>Article IX</u> shall be deemed to
be a waiver of any right which Lender may have under Section 506(a), 506(b),
1111(b) or any other provisions of the Bankruptcy Code to file a claim for the
full amount of<b> </b>the Debt or to require that all
collateral</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">shall continue to secure
all of the Debt in accordance with this Note and the other Loan Documents.</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding the foregoing provisions of this <u>Article
IX</u> or any other provision in the Loan Documents, Borrower shall be fully
liable for, and shall indemnify and defend Lender from and against any actual
loss, cost, liability, judgment, claim, damage or expense sustained, suffered
or </font>incurred by Lender
(including, without limitation, reasonable attorneys&#146; fees and expenses)
arising out of or attributable or relating to:</p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; fraud or intentional
misrepresentation by Borrower, Borrower Principals or any of the Exculpated
Parties in connection with the Loan;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the gross negligence or willful
misconduct of Borrower, Borrower Principals or any Guarantor;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the physical waste or willful
destruction of the Project or any part thereof which is attributable to the
acts or omissions of Borrower, Borrower Principals or any of the Exculpated
Parties;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the breach of provisions in the Loan
Agreement concerning Environmental Laws and Hazardous Material, including any
obligation to indemnify Lender with respect to such Environmental Laws or
Hazardous Material;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the removal of any portion of the
Personal Property in violation of the Loan Documents (other than fixtures,
furniture and equipment in the ordinary course of business, or as otherwise
permitted under the Loan Documents);</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the misapplication, misappropriation
or conversion by Borrower in violation of the Loan Documents of (A) any
insurance proceeds paid by reason of any loss, damage or destruction to the
Project; (B) any awards or other amounts received in connection with the
condemnation of all or a portion of the Project; or (C) rents, issues, profits,
proceeds, security deposits, or Contract Deposits (as defined in the Loan
Agreement);</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any financial information concerning
Borrower, Borrower Principals or any of the Exculpated Parties delivered to
Lender by Borrower, Borrower Principals or any of the Exculpated Parties
proving to be fraudulent in any material respect of the financial condition of
Borrower, Borrower Principals or any of the Exculpated Parties;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; any unapplied security deposits
collected with respect to the Project which are not delivered to Lender upon a
foreclosure of the Project or action in lieu thereof in accordance with the
terms of the Loan Documents;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ix)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower&#146;s failure to permit on-site
inspections of the Project&#160; in accordance
with the Loan Documents or to provide financial statements pertaining to the
Project as required by the Loan Agreement, unless, in either case, such failure
is cured within five (5) days after a second notice therefor is delivered to
Borrower;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower&#146;s failure to comply with
the single-purpose entity provisions of the Loan Documents;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Project or any part thereof
becoming an asset in (A) a voluntary bankruptcy or insolvency proceeding or (B)
an involuntary bankruptcy or insolvency</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">5</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">proceeding
(unless such proceeding is dismissed within ninety (90) days after the
commencement thereof) where Lender reasonably determines that Borrower
(including Borrower&#146;s employees, partners, directors, Affiliates, Member,
Guarantor, Guarantor&#146;s members or Borrower Principals) has colluded with any
Persons to cause the filing of the same (other than an involuntary bankruptcy
or insolvency proceeding commenced or approved in writing by Lender);</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; mechanic&#146;s, materialmen&#146;s and other
similar liens and encumbrances against the Project or any portion thereof to
the extent that Borrower had sufficient funds to discharge same or the work
being the subject matter of such liens was not approved of by Lender or
otherwise permitted by the Loan Documents;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xiii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower&#146;s failure to timely pay taxes
to the extent sufficient funds were available to Borrower to pay same from the
operating revenue of the Project;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xiv)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Intentionally Deleted</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower&#146;s failure to deliver an
estoppel certificate to Lender pursuant to the Loan Agreement unless such
failure is cured within five (5) days after a second notice therefor is
delivered to Borrower;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xvi)&#160;&#160;&#160;&#160;&#160;&#160;&#160; any amendment or modification to the
organizational documents of Borrower or Borrower Principals, as the case may
be, without obtaining Lender&#146;s prior written consent therefor or as is
otherwise permitted under the Loan Documents;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xvii)&#160;&#160;&#160;&#160;&#160;&#160; any amendment, modification or
termination of the Ground Lease without obtaining Lender&#146;s prior written
consent therefor or as is otherwise permitted under the Loan Documents;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xviii)&#160;&#160;&#160;&#160;&#160; any breach of Article XVIII of the Loan
Agreement;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xix)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any breach of Section 7.2 of the Loan
Agreement; and</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xx)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Intentionally Deleted;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt 36.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xxi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; failure to comply (to the extent
sufficient cash was available from the operating revenue of the Property to
effect compliance) with known and material legal requirements.</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The liabilities listed in
clauses (i) through (xxi) of this Paragraph are collectively known as the &#147;<u>Recourse
Obligations</u>&#148;.</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of this Note,
the term &#147;<u>Borrower Principal(s)</u>&#148; shall mean each of&#160; Guarantor, Member, MLP KB Partner LLC, a
Hawaii limited liability company, ER Kapalua Investors Fund, LLC, a Delaware
limited liability company, and MH Kapalua Venture, LLC, a Delaware limited
liability company.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">6</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE X</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">GOVERNING
LAW; SUBMISSION TO JURISDICTION</font></b></h1>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THIS NOTE WAS NEGOTIATED IN THE STATE OF NEW YORK,
AND MADE BY BORROWER AND ACCEPTED BY LENDER IN THE STATE OF NEW YORK, AND THE
PROCEEDS OF THIS NOTE WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE
THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE
UNDERLYING TRANSACTION EMBODIED HEREBY.&#160;
IN ALL RESPECTS, INCLUDING, WITHOUT LIMITATION, MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, THIS NOTE AND THE OBLIGATIONS ARISING HEREUNDER SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD
TO PRINCIPLES OF CONFLICT OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES
OF AMERICA.&#160; TO THE FULLEST EXTENT
PERMITTED BY LAW, BORROWER AND, BY ITS ACCEPTANCE HEREOF, LENDER HEREBY
UNCONDITIONALLY AND IRREVOCABLY WAIVE ANY CLAIM TO ASSERT THAT THE LAW OF ANY
OTHER JURISDICTION GOVERNS THIS NOTE AND THIS NOTE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO
SECTION&nbsp;5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.</font></b></p>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:20.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TO THE
EXTENT PERMITTED BY APPLICABLE LAW, ANY LEGAL SUIT, ACTION OR PROCEEDING
AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS NOTE MAY, AT THE
OPTION OF LENDER, BE INSTITUTED IN ANY FEDERAL COURT SITTING IN THE STATE OF
HAWII OR STATE COURT SITTING IN THE ISLAND AND COUNTY OF MAUI, HAWAII, OR NEW
YORK COUNTY, NEW YORK, AND BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR
HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT,
ACTION OR PROCEEDING.</font></b></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XI</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOTICES</font></b></h1>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All notices or other written communications hereunder
shall be delivered in accordance with Article XXIII of the Loan Agreement.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE XII</font></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TRIAL BY
JURY</font></b></h1>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:72.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">BORROWER AND, BY ITS ACCEPTANCE OF THIS NOTE,
LENDER EACH AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF</font></b></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">7</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 6.0pt;text-align:left;text-indent:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">RIGHT BY JURY, AND WAIVE ANY
RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR
HEREAFTER EXIST WITH REGARD TO THIS NOTE OR ANY CLAIM, COUNTERCLAIM OR OTHER
ACTION ARISING IN CONNECTION HEREWITH.&#160;
THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY
BY BORROWER AND, BY ITS ACCEPTANCE OF THIS NOTE, LENDER, AND IS INTENDED TO
ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A
TRIAL BY JURY WOULD OTHERWISE ACCRUE.&#160;
EITHER PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN
ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY THE OTHER.</font></b></p>

<p align="center" style="margin:0pt 0pt 6.0pt;text-align:center;text-indent:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[SIGNATURE
PAGE TO FOLLOW]</font></b></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">8</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div style="font-family:Times New Roman;">
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, THIS SECURITY INSTRUMENT has been executed by
Borrower as of the day and year first above written.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="28%" colspan="6" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.28%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlHTMLTableLeft --><!-- SET mrlNoTableShading --><b>BORROWER:</b></p>
  </td>
  <td width="25%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:25.0%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="28%" colspan="6" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.28%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="25%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:25.0%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" colspan="6" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KAPALUA BAY, LLC,</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:25.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" colspan="6" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Delaware limited liability company</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:25.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="48%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kapalua Bay Holdings, LLC,</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Delaware
  limited liability company,</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its Managing
  Member</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="44%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MLP KB Partner LLC,</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Hawaii limited
  liability company,</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its Managing
  Member</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.18%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="39%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Maui Land &amp; Pineapple Company,<br>
  Inc., a Hawaii corporation,</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Managing Member</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="44%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:44.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ ROBERT WEBBER</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="44%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:44.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;R. WEBBER</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="44%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:44.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CFO</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="44%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:44.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;/S/ RYAN CHURCHILL</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="44%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:44.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RYAN CHURCHILL</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="44%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:44.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VICE PRESIDENT/COMMUNITY</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:44.78%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DEVELOPMENT</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="349" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="20" style="border:none;"></td>
  <td width="29" style="border:none;"></td>
  <td width="5" style="border:none;"></td>
  <td width="32" style="border:none;"></td>
  <td width="111" style="border:none;"></td>
  <td width="187" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>a06-16299_1ex10d4.htm
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<TEXT>
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<body lang="EN-US">

<div>

<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
10.4</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">COMPLETION GUARANTY</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">COMPLETION GUARANTY</font></b>,
dated as of July 14, 2006 (this &#147;<u>Guaranty</u>&#148;), made by <b>MAUI LAND &amp; PINEAPPLE COMPANY, INC.</b>, a
Hawaii Corporation, having an address at 120 Kane Street, Kapalua, Maui, Hawaii
96732 (&#147;<u>ML&amp;P</u>&#148;); <b>THE RITZ-CARLTON
DEVELOPMENT COMPANY, INC.</b>, a Delaware corporation, having an office
at 6649 Westwood Boulevard, Suite 500, Orlando, Florida 32821 (&#147;<u>Ritz-Carlton</u>&#148;);
and <b>EXCLUSIVE RESORTS DEVELOPMENT COMPANY,
LLC</b>, a Delaware limited liability company, having an address at 1530
16<font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>&#160;Street, Suite 500, Denver, Colorado 80202&#160; (&#147;<u>Exclusive Resorts</u>&#148;; ML&amp;P, Ritz
Carlton and Exclusive Resorts being referred to herein individually as a &#147;<u>Guarantor</u>&#148;
and collectively as &#147;<u>Guarantors</u>&#148;), in favor of <b>LEHMAN BROTHERS HOLDINGS INC.</b>, a Delaware
corporation, having an office at 399 Park Avenue, New York, New York 10022 (&#147;<u>Lender</u>&#148;).</p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-indent:0pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">W I T N E S S E T H:</font></u></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS,</font></b> Lender is
concurrently herewith making a loan to KAPALUA BAY, LLC, a Delaware limited
liability company (&#147;<u>Borrower</u>&#148;), in the maximum principal amount of THREE
HUNDRED SEVENTY MILLION AND 00/100 DOLLARS ($370,000,000.00) (the &#147;<u>Loan</u>&#148;)
secured by a mortgage on certain real property and improvements more
particularly described on <u>Exhibits A-1 and A-2</u> hereto (the &#147;<u>Real
Property</u>&#148;);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS,</font></b> the Loan
(i) has been made in accordance with the terms of a construction loan
agreement, dated as of the date hereof, between Borrower and Lender (the &#147;<u>Loan
Agreement</u>&#148;; capitalized terms used herein and not otherwise defined shall
have the meanings ascribed thereto in the Loan Agreement), (ii) is evidenced by
the Note and (iii) is secured by the Mortgage (the Loan Agreement, the Note,
the Mortgage and the other documents and instruments executed by Borrower or
Guarantor and delivered in connection with the Loan being collectively referred
to herein as the &#147;<u>Loan Documents</u>&#148;);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>, Guarantor
shall derive substantial economic benefit from the Loan; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS,</font></b> as a
material condition to making the Loan, Lender requires that Guarantor, and
Guarantor has agreed, to guaranty the Guaranteed Obligations (hereinafter
defined).</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOW, THEREFORE,</font></b> in
consideration of the foregoing and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Guarantor agrees as
follows:</p>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each
Guarantor, severally, hereby absolutely and unconditionally guarantees to
Lender that if Borrower fails to complete the Construction in accordance with
the terms and conditions of the Loan Agreement, or an Event of Default occurs,
Guarantor shall:</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:104.4pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; subject to the provisions of <u>Section
3</u> below, cause to be performed, constructed, erected, installed and fully
completed, free and clear of liens for labor or materials, the Improvements and
all other work contemplated or required to be completed pursuant to the Loan
Documents, all in accordance with the terms and conditions of the Loan
Documents on or before the Completion Date, time being of the essence;</font></h2>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:104.4pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; fully reimburse Lender for any and
all sums actually expended by Lender to pay or discharge any liens for labor or
materials entered or filed against the Real Property or the Project, including,
without limitation, any and all costs, damages, expenses and reasonable
attorneys&#146; fees that Lender may suffer or incur by reason thereof;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:104.4pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; fully reimburse Lender for any and
all sums actually expended by Lender for or toward the completion of the
Project (including Hard Costs and Soft Costs) in excess of the undisbursed
principal balance of the Loan in accordance with the terms and conditions of
the Loan Documents as a result of the failure by Borrower or Guarantor to
prosecute the Construction diligently and complete the same on or before the
Completion Date; and</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:104.4pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; fully indemnify, defend and hold
Lender harmless from and against any and all actual costs, claims, actions,
causes of action, liabilities, expenses or losses of whatsoever kind or nature,
including, without limitation, reasonable attorney&#146;s fees and court costs,
resulting or arising from any failure by Borrower or Guarantor (1)&#160; to prosecute the construction of the Project
pursuant to the Loan Agreement, or (2) to complete the Project on or before the
Completion Date (collectively, &#147;<u>Losses</u>&#148;).</font></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
liabilities of Guarantor under this Section shall not be limited by the amount
of the Loan, but shall be determined solely by the cost of completion of the
Construction and the performance of the other undertakings set forth in this
Section.</font></p>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding anything to the contrary contained herein, in no event
shall (i) ML&amp;P be liable for an amount in excess of fifty one percent (51%)
of the sums due to Lender hereunder, (ii) Ritz-Carlton be liable for an amount
in excess of thirty-four percent (34%) of the sums due to Lender hereunder or
(iii) Exclusive Resorts be liable for an amount in excess of fifteen percent
(15%) of the sums due to Lender hereunder.</font></h2>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If
Guarantor undertakes to complete the Improvements in accordance with the
provisions of <u>Section 1(a)</u> above, Lender shall make advances to
Guarantor of the undisbursed portion of the Loan allocated to the costs of
Construction, upon Guarantor&#146;s satisfaction of the conditions to the making of
advances set forth in the Loan Agreement (including, without limitation, the
condition requiring that there be no Event of Default by Borrower) and delivery
of a Requisition executed by Borrower and Guarantor to Lender; provided,
however, that as a condition to making an advance to Guarantor, Guarantor shall
not be obligated to cure Events of Default other than (a) monetary Events of
Default (provided that failure to pay any amounts due after an acceleration
shall not be deemed a monetary Event of Default for this purpose), (b) Events
of Default set forth in clauses 20.1(g), (h), (j), (k), (l), and (m) of the
Loan Agreement, (c) due to a Guarantor&#146;s or Borrower&#146;s failure to provide
financial statements in accordance with the Loan Documents and (d) due to
fraud.&#160; Guarantor shall not be obligated
to continue to pursue completion of the Improvements during any period that
Lender has stopped funding advances of the Loan, provided however that in no
event shall Guarantor&#146;s liability under this Guaranty be deemed terminated or
waived until this Guaranty has been terminated in accordance with <u>Section 8</u>
hereof.&#160; All Loan proceeds disbursed by
Lender shall be used only for the Budget Line Items for which such proceeds
were disbursed, and Guarantor shall not have the right to reallocate Budget
Line Items except as expressly permitted under the</font></h1>


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<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Loan Agreement.&#160; If Guarantor undertakes to complete the
Improvements as provided above, Guarantor shall comply with all of the
requirements of the Loan Documents relating to the Construction, including,
without limitation, the obligation to make any Deficiency Deposit required
under the Loan Agreement.&#160; If Guarantor
fails to comply with such requirements, after the expiration of any applicable
notice and cure periods set forth in the Loan Documents, Lender shall have no
further obligation to disburse to Guarantor the undisbursed portion of the Loan
allocated to the costs of Construction and if Lender then exercises its right
under Section 21.1 of the Loan Agreement to take possession of the Project and
complete the Construction, the provisions of <u>Section 3</u> of this Guaranty
shall apply.&#160; Any portion of the Loan
disbursed to Guarantor pursuant to this Section shall constitute an advance to
Borrower under the Note and become part of the Debt.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Notwithstanding
the provisions of <u>Section 2</u> above, if Lender exercises its right under
Section 21.1 of the Loan Agreement to take possession of the Project and
complete the Construction in accordance with the Loan Documents upon any
Guarantor&#146;s failure to promptly comply with the provisions of <u>Section 1(a)</u>
above, subject to any changes to the Plans and Specifications that may be
required by applicable law or are otherwise defective, and to use the
undisbursed portion of the Loan (or, if the Loan has been discharged, an amount
equal to the undisbursed principal balance of the Loan as of the date Lender
takes possession), Guarantor shall not have the right to complete the
Improvements, but shall remain liable for all other obligations under this
Guaranty, including, without limitation, the obligation to make any Deficiency
Deposit.&#160; Nothing contained in this
Section, however, shall require Lender to advance all of the undisbursed
portion of the Loan (or equivalent amount thereof if the Loan has been
discharged) before requiring Guarantor to pay to Lender any Deficiency Deposit
required hereunder.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Guarantor
hereby absolutely and unconditionally guarantees to Lender that if at any time
the Loan is not &#147;In Balance&#148; as required under Section 12.1 of the Loan
Agreement, Guarantor shall pay to Lender the Deficiency Deposit required for
the Loan to be &#147;In Balance&#148; within twenty (20) days after written request for
such Deficiency Deposit has been made by Lender to Guarantor.&#160; Guarantor&#146;s obligation under this <u>Section
4</u> to pay any Deficiency Deposit required to be paid under the Loan
Agreement shall be an obligation contemporaneous with Borrower&#146;s obligation to
pay same, and Guarantor waives any right to receive notice demanding payment of
any Deficiency Deposit.&#160; Guarantor waives
any right to require or compel Lender, prior to exercising its rights
hereunder, to first proceed against Borrower for payment of any Deficiency
Deposit.&#160; The liabilities of Guarantor
under this <u>Section 4</u> shall not be limited by the amount of the Loan, but
shall be determined solely by the amount of Deficiency Deposits required to
keep the Loan &#147;In Balance&#148; as determined by Lender in accordance with the Loan
Agreement.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
payment, compliance and performance obligations guaranteed by Guarantor
pursuant to <u>Sections 1</u> through <u>4</u> above are hereinafter
collectively referred to as the &#147;<u>Guaranteed Obligations</u>&#148;.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Guarantor
hereby waives: (a) notice of acceptance of this Guaranty by Lender and of
presentment, demand, protest, notice of protest and of dishonor, notice of
default and, except for the notices set forth herein, all other notices of
every kind or nature now or</font></h1>


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<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">hereafter provided by agreement
or available at law; (b) the pleading of any statute of limitations as a
defense to the obligations hereunder; and (c) any right to require or compel
Lender, prior to exercising its rights hereunder to first proceed against
Borrower or any security for the Loan, or to pursue any other remedy available
to Lender.&#160; Lender&#146;s failure to exercise,
or delay in exercising, any right or power hereunder shall not operate as a
waiver thereof, nor shall any single or partial exercise by Lender of any
right, remedy or power hereunder preclude any other or future exercise of any
other right, remedy or power.&#160; Guarantor
acknowledges that Lender may seek recovery of the Guaranteed Obligations from
Guarantor with the same force and effect as if Guarantor were primary obligor
under the Note and the other Loan Documents.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Guarantor
further agrees that the validity of this Guaranty and the obligations of
Guarantor hereunder shall in no way be terminated, affected or impaired by
reason of: (a) the assertion by Lender of any rights or remedies which it may
have under or with respect to the Note or the other Loan Documents against any
Person obligated thereunder or against the owner of the Project; (b) any
failure to file or record any of the Loan Documents or to take or perfect any
security intended to be provided thereby; (c) the release or exchange of the
Real Property or any other collateral for the Loan; provided that this Guaranty
shall not, without the prior consent of the Principals, cover or pertain to any
Losses attributable to such released collateral and arising from and after the
release of such released or exchanged collateral; (d) the commencement of a
case under the Bankruptcy Code by or against any Person obligated under the
Note or the other Loan Documents; or (e) any payment made on the Debt or any
other indebtedness arising under the Note or the other Loan Documents, whether
made by Borrower or Guarantor or any other Person, which is required to be
refunded pursuant to any bankruptcy or insolvency law; it being understood that
no payment so refunded shall be considered as a payment of any portion of the
Debt, nor shall it have the effect of reducing the liability of Guarantor
hereunder.&#160; It is further understood that
if Borrower shall have taken advantage of, or be subject to the protection of,
any provision of the Bankruptcy Code, the effect of which is to prevent or
delay Lender from taking any remedial action against Borrower, including the
exercise of any option Lender has to declare the Debt due and payable on the
happening of any default or event by which, under the terms of the Loan
Documents, the Debt shall become due and payable, Lender may, as against
Guarantor, nevertheless, declare the Guaranteed Obligations due and payable and
enforce any and all of its rights and remedies provided for herein.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Guarantor
further agrees (a) that this Guaranty shall remain and continue in full force
and effect, notwithstanding any modification, extension or renewal of the Note
or any of the other Loan Documents and (b) that Lender shall not be under a
duty to protect, secure or insure any security or lien provided by the Loan
Documents or other collateral for the Loan.&#160;
This Guaranty shall terminate upon the earlier to occur of (i) complete
payment of the Debt, or (ii) issuance of a final certificate of occupancy for
all components of the Project and payment of all amounts then due and owing by
Guarantor under this Guaranty.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any indebtedness of Borrower to Guarantor now or
hereafter existing (including, without limitation, any rights of subrogation
Guarantor may have as a result of any payment under this Guaranty), together
with any interest thereon, shall be, and such</font></h1>


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<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">indebtedness is
hereby, deferred, postponed and subordinated to the prior payment in full of the
Debt.&#160; Until payment in full of the Debt
(and including interest accruing on the Note after the commencement of a
proceeding by or against Borrower under the Bankruptcy Code which interest the
parties agree shall remain a claim that is prior and superior to any claim of
Guarantor notwithstanding any contrary practice, custom or ruling in cases
under the Bankruptcy Code generally), Guarantor agrees not to accept any
payment or satisfaction of any kind of indebtedness of Borrower to Guarantor
(except under the Marketing Agreements, that certain Technical Services
Agreement dated September 1, 2004 between Borrower and Ritz-Carlton, that
certain Project Development Management Agreement dated October 1, 2004, between
Borrower and Ritz-Carlton and that certain Entitlement Services Letter
Agreement dated August 16, 2005 between Borrower and Kapalua Land Company) and
hereby assigns such indebtedness to Lender, including the right to file proof
of claim and to vote thereon in connection with any such proceeding under the
Bankruptcy Code, including the right to vote on any plan of reorganization.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Guarantor
hereby indemnifies Lender from and against any and all claims, losses, damages
and liabilities growing out of or resulting from this Guaranty (including, without
limitation, enforcement of this Guaranty), except claims, losses, damages or
liabilities resulting from Lender&#146;s gross negligence and willful
misconduct.&#160; Guarantor will upon written
demand pay to Lender the amount of any and all actual expenses, including the
reasonable fees and expenses of its counsel and of any experts and agents,
which Lender may incur in connection with (1) any amendment to this Guaranty,
(2) the administration of this Guaranty, (3) the exercise or enforcement of any
of the rights of Lender under this Guaranty, or (4) the failure by Guarantor to
perform or observe any of the provisions of this Guaranty.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To induce Lender to execute the
Loan Documents and to make the Loan and perform its obligations thereunder,
each Guarantor, in respect of itself, severally, hereby represents and warrants
to Lender as follows:</font></h1>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Guarantor is and always has been a
duly organized and validly existing limited liability company or corporation,
as the case may be, duly organized or incorporated under the laws of the state
of its formation or incorporation, as the case may be.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Guarantor has full power and
authority to execute, deliver and perform this Guaranty, and such execution,
delivery and performance have been duly authorized by all requisite action on
the part of Guarantor.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No consent, approval or authorization
of or declaration, registration or filing with any Governmental Authority or
nongovernmental Person, including any creditor, partner, or member of
Guarantor, is required in connection with the execution, delivery and
performance of this Guaranty that has not been obtained or waived.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The execution, delivery and
performance of this Guaranty will not constitute a breach or default under any
other material agreement to which Guarantor is a party or may be bound.</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; There is no default under this
Guaranty, or any of the other Loan Documents, nor any condition which, after
notice or the passage of time or both, would constitute a default or an Event
of Default under said documents.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Guarantor is solvent, and no
bankruptcy, reorganization, insolvency or similar proceeding under any state or
federal law with respect to Guarantor has been initiated.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither Guarantor nor any Person
holding a direct or indirect interest in Borrower or Guarantor, as the case may
be, is (or will be) a person with whom Lender is restricted from doing business
under OFAC (including Persons named on OFAC&#146;s Specially Designated and Blocked
Persons list) or under any statute, executive order (including the September
24, 2001, Executive Order Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism), or other
governmental action and is not and shall not knowingly engage in any dealings
or transactions or otherwise be associated with such Persons.&#160; In addition, Guarantor hereby agrees to
provide Lender with any additional information that Lender deems necessary from
time to time in order to ensure compliance with all Laws concerning money
laundering and similar activities.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Guarantor has disclosed to Lender all
material facts and has not failed to disclose any material fact that could
cause any representation or warranty made herein to be materially misleading.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ix)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each of the representations and
warranties made by Guarantor herein or in any of the other Loan Documents is
true, complete and correct in all material respects as of the date made.</font></h3>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [Intentionally Deleted].</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The provisions of Article 23 of the
Loan Agreement are hereby incorporated by reference, except that all references
to &#147;Borrower&#148; therein shall be deemed to be &#147;Guarantor&#148; and Guarantor&#146;s address
set forth in the first paragraph of this Guaranty shall be its address for
service of process.&#160; All notices under
this Guaranty shall be provided to all Guarantors and Lender.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Guaranty constitutes the
entire agreement between Guarantor and Lender with respect to the matters
referred to herein, and no modification or waiver of any of the terms hereof
shall be effective unless in writing, signed by all parties hereto.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Guaranty shall inure to the
benefit of Lender and any subsequent holder of the Loan Documents and shall
bind Guarantor and its respective heirs, successors and assigns.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Guaranty shall be governed by
the internal laws of the State of New York.</font></h1>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">6</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>SUBMISSION TO JURISDICTION</u>.&#160; WITH RESPECT TO ANY SUIT, ACTION OR
PROCEEDINGS RELATING TO THIS GUARANTY (EACH, A &#147;<u>PROCEEDING</u>&#148;), GUARANTORS
IRREVOCABLY (A) SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF ANY STATE COURT
SITTING IN THE ISLAND AND COUNTY OF MAUI, HAWAII, FEDERAL COURT SITTING IN THE
STATE OF HAWAII, OR STATE OR FEDERAL COURT SITTING IN NEW YORK COUNTY, NEW
YORK, AND (B) WAIVE ANY OBJECTION WHICH THEY MAY HAVE AT ANY TIME TO THE LAYING
OF VENUE OF ANY PROCEEDING BROUGHT IN ANY SUCH COURT, WAIVES ANY CLAIM THAT ANY
PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND FURTHER WAIVE THE
RIGHT TO OBJECT, WITH RESPECT TO SUCH PROCEEDING, THAT SUCH COURT DOES NOT HAVE
JURISDICTION OVER SUCH PARTY.&#160; NOTHING IN
THIS GUARANTY SHALL PRECLUDE LENDER FROM BRINGING A PROCEEDING IN ANY OTHER
JURISDICTION NOR WILL THE BRINGING OF A PROCEEDING IN ANY ONE OR MORE
JURISDICTIONS PRECLUDE THE BRINGING OF A PROCEEDING IN ANY OTHER
JURISDICTION.&#160; GUARANTORS FURTHER AGREE
AND CONSENT THAT, IN ADDITION TO ANY METHODS OF SERVICE OF PROCESS PROVIDED FOR
UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY PROCEEDING IN ANY STATE
COURT SITTING IN THE ISLAND AND COUNTY OF MAUI, HAWAII, FEDERAL COURT SITTING
IN THE STATE OF HAWAII, OR STATE OR FEDERAL COURT SITTING IN NEW YORK COUNTY,
NEW YORK, MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT
REQUESTED, DIRECTED TO GUARANTORS AT THE ADDRESSES INDICATED ABOVE, AND SERVICE
SO MADE SHALL BE COMPLETE UPON RECEIPT; EXCEPT THAT IF GUARANTORS SHALL REFUSE
TO ACCEPT DELIVERY, SERVICE SHALL BE DEEMED COMPLETE FIVE (5) DAYS AFTER THE
SAME SHALL HAVE BEEN SO MAILED.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u style="font-weight:bold;">Non-Waiver</u></b>.&#160; Neither failure nor delay on Lender&#146;s part in
insisting upon strict performance of any term, condition, covenant or agreement
or exercising any right, power, remedy or privilege hereunder, shall operate as
or constitute a waiver thereof, nor shall a single or partial exercise thereof
preclude any other future exercise, or the exercise of any other right, power,
remedy or privilege.&#160; By way of example,
and not by way of limitation, by accepting payment after the due date of any
amount payable under this Guaranty, Lender shall not be deemed to have waived
any right either to require prompt payment when due of all other amounts due
under this Guaranty, or to declare a default for failure to effect prompt
payment of any such other amount.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No consent by Borrower shall be
required for any assignment or reassignment of Lender&#146;s rights under this
Guaranty to any assignee of Lender&#146;s interest in the Note or any part
thereof.&#160; All references to &#147;Lender&#148;
hereunder shall be deemed to include such successors and assigns of Lender.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Wherever possible, each provision of
this Guaranty shall be interpreted in such manner as to be effective and valid
under applicable Laws, but if any provision of this Guaranty shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating
the remainder of such provision or the remaining provisions of this Guaranty.</font></h1>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">7</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>TO
THE FULLEST EXTENT PERMITTED BY LAW, GUARANTORS HEREBY IRREVOCABLY WAIVE TRIAL
BY JURY IN ANY ACTION, COUNTERCLAIM OR JUDICIAL PROCEEDING BROUGHT BY BORROWER
OR LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT
OF, RELATED TO, OR IN CONNECTION WITH THIS INSTRUMENT, THE LOAN, THE LOAN
DOCUMENTS, AND ANY ACTS OR OMISSIONS OF GUARANTORS IN CONNECTION THEREWITH.</b></font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Guaranty may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same guaranty.</font></h1>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-indent:0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">[The next page is the signature page]</font></i></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">8</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF,
Guarantor has duly executed and delivered this Guaranty as of the date of this
Guaranty.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->MAUI LAND &amp; PINEAPPLE
  COMPANY,<br>
  INC.,</p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Hawaii
  corporation</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:43.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ ROBERT WEBBER</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:43.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">R. WEBBER</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:43.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CFO</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THE RITZ-CARLTON DEVELOPMENT<br>
  COMPANY, INC., a Delaware corporation</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:43.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ WILLIAM T. PHILLIPS</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:43.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:43.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WILLIAM T. PHILLIPS</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:43.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:43.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VICE-PRESIDENT</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXCLUSIVE RESORTS DEVELOPMENT<br>
  COMPANY, LLC, a Delaware limited<br>
  liability company</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:43.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ TODD HARRIS</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:43.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:43.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TODD HARRIS</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:43.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:43.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SVP Member Services</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


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<p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.5</font></b></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">RECOURSE GUARANTY</font></u></b></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This <b>RECOURSE</b>  <b>GUARANTY</b>,
dated as of July&nbsp;14, 2006 (this &#147;<u>Guaranty</u>&#148;), made by <b>MAUI LAND &amp; PINEAPPLE COMPANY, INC.</b>, a
Hawaii Corporation, having an address at 120 Kane Street, Kapalua, Maui, Hawaii
96732 (&#147;<u>ML&amp;P</u>&#148;); <b>THE RITZ-CARLTON
DEVELOPMENT COMPANY, INC.</b>, a Delaware corporation, having an office
at 6649 Westwood Boulevard, Suite 500, Orlando, Florida 32821 (&#147;<u>Ritz-Carlton</u>&#148;);
and <b>EXCLUSIVE RESORTS DEVELOPMENT COMPANY,
LLC</b>, a Delaware limited liability company, having an address at 1530
16</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>&#160;Street, Suite 500, Denver, Colorado 80202 (&#147;<u>Exclusive
Resorts</u>&#148;; ML&amp;P, Ritz Carlton and Exclusive Resorts being referred to
herein individually as a &#147;<u>Principal</u>&#148; and collectively as &#147;<u>Principals</u>&#148;),
in favor of <b>LEHMAN BROTHERS HOLDINGS INC.</b>,
a Delaware corporation, having an office at 399 Park Avenue, New York, New York
10022 (&#147;<u>Lender</u>&#148;).</p>

<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">W I T N E S S E T H</font></u></b>:</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS,</font></b>
Lender is concurrently herewith making a loan to KAPALUA BAY, LLC, a Delaware
limited liability company (&#147;<u>Borrower</u>&#148;), in the maximum principal amount
of THREE HUNDRED SEVENTY MILLION and 00/100 DOLLARS ($370,000,000.00) (the &#147;<u>Loan</u>&#148;)
secured by a mortgage on certain real property and improvements more
particularly described on <u>Exhibits A-1 and A-2</u> attached hereto (the &#147;<u>Real
Property</u>&#148;);</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS,</font></b>
the Loan (i) has been made in accordance with the terms of a construction loan
agreement, dated as of the date hereof, between Borrower and Lender (the &#147;<u>Loan
Agreement</u>&#148;; capitalized terms used herein and not otherwise defined shall
have the meanings ascribed thereto in the Loan Agreement), (ii) is evidenced by
the Note and (iii) is secured by the Mortgage (the Loan Agreement, the Note,
the Mortgage and the other documents and instruments executed by Borrower or
Principal or delivered in connection with the Loan being collectively referred
to herein as the &#147;<u>Loan Documents</u>&#148;);</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS,</font></b>
except as hereinafter set forth, Lender&#146;s recourse under the Loan Documents is
limited to Borrower&#146;s interest in and to the Project and the other collateral
given as security under the Mortgage and the other Loan Documents;</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS,</font></b>
Borrower is personally liable for the Recourse Obligations;</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>,
Principal shall derive substantial economic benefit from the Loan; and</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS,</font></b>
as a material condition to making the Loan, Lender requires that Principal, and
Principal has agreed, to guaranty the Recourse Obligations.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOW,
THEREFORE,</font></b> in consideration of the foregoing and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Principal agrees as follows:</p>

<h1 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each Principal, severally, hereby absolutely and
unconditionally guaranties the prompt satisfaction and discharge of any and all
of the Recourse Obligations, without defense, offset, counterclaim or right of
subrogation, each of which is hereby waived.</font></h1>

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Guaranty is and shall be construed as a continuing, absolute and
unconditional guaranty of payment, and not as a guaranty of collection.&#160; It is expressly understood and agreed that
this is a continuing guaranty and that the obligations of Principal hereunder
are and shall be absolute under any and all circumstances, without regard to
the validity, regularity or enforceability of the Note (excluding the Recourse
Obligations) or the other Loan Documents, a true copy of each of which
documents Principal hereby acknowledges having received and reviewed.</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding anything to the contrary contained
herein, in no event shall (i) ML&amp;P be liable for an amount in excess of
fifty one percent (51%) of the sums due to Lender hereunder, (ii) Ritz-Carlton
be liable for an amount in excess of thirty-four percent (34%) of the sums due
to Lender hereunder or (iii) Exclusive Resorts be liable for an amount in
excess of fifteen percent (15%) of the sums due to Lender hereunder.</font></p>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Principal hereby waives: (a) notice
of acceptance of this Guaranty by Lender and of presentment, demand, protest,
notice of protest and of dishonor, notice of default and, except for the
notices set forth herein, all other notices of every kind or nature now or hereafter
provided by agreement or available at law; (b) the pleading of any statute of
limitations as a defense to the obligations hereunder; and (c) any right to
require or compel Lender, prior to exercising its rights hereunder to first
proceed against Borrower or any security for the Loan, or to pursue any other
remedy available to Lender.&#160; Lender&#146;s
failure to exercise, or delay in exercising, any right or power hereunder shall
not operate as a waiver thereof, nor shall any single or partial exercise by Lender
of any right, remedy or power hereunder preclude any other or future exercise
of any other right, remedy or power.&#160;
Principal acknowledges that Lender may seek recovery of the Recourse
Obligations from Principal with the same force and effect as if Principal were
primary obligor under the Note and the other Loan Documents.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Principal further agrees that the validity of this
Guaranty and the obligations of Principal hereunder shall in no way be
terminated, affected or impaired by reason of: (a) the assertion by Lender of
any rights or remedies which it may have under or with respect to the Note or
the other Loan Documents against any person obligated thereunder or against the
owner of the Project; (b) any failure to file or record any of the Loan Documents
or to take or perfect any security intended to be provided thereby; (c) the
release or exchange of the Real Property or any other collateral for the Loan;
provided that this Guaranty shall not, without the prior consent of Principals,
cover or pertain to any Recourse Obligations that relate to such released or
exchanged portion of the collateral arising from and after the release of such
released or exchanged collateral; (d) the commencement of a case under the
Bankruptcy Code by or against any Person obligated under the Note or the other
Loan Documents; or (e) any payment made on the Debt, whether made by Borrower
or Principal or any other Person, which is required to be refunded pursuant to
the Bankruptcy Code; it being understood that no payment so refunded shall be
considered as a payment in reduction of the Debt, nor shall it have the effect
of reducing the liability of Principal hereunder.&#160; It is further understood that if Borrower
shall have taken advantage of, or be subject to the protection of, any
provision of the Bankruptcy Code, the effect of which is to prevent or delay
Lender from taking any remedial action against Borrower, including the exercise
of any option Lender has to declare the Debt due and payable on the happening
of any default or event by which, under the terms of the Loan Documents, the
Debt shall become due and payable, Lender may, as against Principal,
nevertheless, declare the</font></h1>

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Recourse Obligations due
and payable and enforce any and all of its rights and remedies provided for
herein.</font></p>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Principal further agrees: (a) that
this Guaranty shall remain and continue in full force and effect,
notwithstanding any modification, extension or renewal of the Note or any of
the other Loan Documents; (b) that Lender shall not be under a duty to protect,
secure or insure any security or lien provided by the Loan Documents or other
collateral for the Loan; and (c) that other indulgence or forbearance may be
granted under any or all of the Loan Documents, without notice to or further
consent of Principal.&#160; This Guaranty
shall terminate upon the complete payment of the Debt and fulfillment of any
outstanding obligations of Principals under this Guaranty.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as may be permitted under
the Loan Agreement, Principal will not convey, transfer or assign, directly or
indirectly, any portion of the Mortgaged Property of any nature, whether real,
personal or mixed, tangible or intangible, or any interest therein, for less
than full and fair consideration.&#160; Nothing
herein shall be construed to prohibit any dividend or distribution of earnings
in the ordinary course of Principal&#146;s business.</font></h1>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any indebtedness of Borrower to
Principal now or hereafter existing (including, without limitation, any rights
of subrogation Principal may have as a result of any payment by Principal under
this Guaranty), together with any interest thereon, shall be, and such
indebtedness is hereby, deferred, postponed and subordinated to the prior
payment in full of the Debt.&#160; Until payment
in full of the Debt (and including interest accruing on the Note after the
commencement of a proceeding by or against Borrower under the Bankruptcy Code
which interest the parties agree shall remain a claim that is prior and
superior to any claim of Principal notwithstanding any contrary practice,
custom or ruling in cases under the Bankruptcy Code generally), Principal
agrees not to accept any payment or satisfaction of any kind of indebtedness of
Borrower to Principal, (except under the Marketing Agreements, t</font>hat certain Technical Services Agreement
dated September 1, 2004, between Borrower and Ritz-Carlton, that certain
Project Development Management Agreement dated October 1, 2004, between
Borrower and Ritz-Carlton and that certain Entitlement Services Letter
Agreement between Borrower and Kapalua Land Company dated August 16, 2005).&#160; Further, if Principal shall now or at any
time in the future comprise more than one person, firm or corporation,
Principal agrees that until such payment in full of the Debt: (a) no one of
them shall accept payment from the others by way of contribution on account of
any payment made hereunder by such party to Lender; (b) no one of them will
take any action to exercise or enforce any rights to such contribution; and (c)
if any one of them should receive any payment, satisfaction or security for any
indebtedness of Borrower to any Principal or for any contribution by the others
of them for payment made hereunder by the recipient to Lender, such payment,
satisfaction or security shall be delivered to Lender in the form received,
endorsed or assigned as may be appropriate for application on account of, or as
security for, the Debt and until so delivered shall be held in trust for Lender
as security for the Debt.</h1>

<h1 style="font-weight:normal;margin:0pt 0pt .0001pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Principal hereby indemnifies
Lender from and against any and all claims, losses, damages and liabilities
growing out of or resulting from this Guaranty (including, without limitation,
enforcement of this Guaranty), except claims, losses, damages or liabilities
resulting from Lender&#146;s gross negligence and willful misconduct.&#160; Principal will upon written</font></h1>

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">demand pay to Lender the amount of any and all actual expenses,
including the reasonable fees and expenses of its counsel and of any experts
and agents, which Lender may incur in connection with (1) any amendment to this
Guaranty, (2) the administration of this Guaranty, (3) the exercise or
enforcement of any of the rights of Lender under this Guaranty, or (4) the
failure by Principal to perform or observe any of the provisions of this
Guaranty.</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:avoid;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To
induce Lender to execute the Loan Documents and to make the Loan and perform
its obligations thereunder, each Principal, in respect of itself, severally,
hereby represents and warrants to Lender in respect of itself as follows:</font></h1>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Principal is and always has been a
duly organized and validly existing limited liability company or corporation,
as the case may be, duly organized or incorporated under the laws of the state
of its formation or incorporation, as the case may be.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Principal has full power and authority
to execute, deliver and perform this Guaranty, and such execution, delivery and
performance have been duly authorized by all requisite action on the part of
Principal.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No consent, approval or authorization
of or declaration, registration or filing with any Governmental Authority or
nongovernmental Person, including any creditor, partner, or member of
Principal, is required in connection with the execution, delivery and
performance of this Guaranty that has not been obtained or waived.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The execution, delivery and
performance of this Guaranty will not constitute a breach or default under any
other material agreement to which Principal is a party or may be bound.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; There is no default under this
Guaranty, or any of the other Loan Documents, nor any condition which, after
notice or the passage of time or both, would constitute a default or an Event
of Default under said documents.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Principal is solvent, and no
bankruptcy, reorganization, insolvency or similar proceeding under any state or
federal law with respect to Principal has been initiated.</font></h3>

<p style="margin:0pt 0pt .0001pt 54.0pt;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither Principal nor any Person
holding a direct or indirect interest in Borrower or Principal, as the case may
be, is (or will be) a person with whom Lender is restricted from doing business
under OFAC (including Persons named on OFAC&#146;s Specially Designated and Blocked
Persons list) or under any statute, executive order (including the September
24, 2001, Executive Order Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism), or other
governmental action and is not and shall not knowingly engage in any dealings
or transactions or otherwise be associated with such Persons.&#160; In addition, Principal hereby agrees to
provide Lender with any additional information that Lender deems necessary from
time to time in order to ensure compliance with all Laws concerning money
laundering and similar activities.</font></p>

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Principal has disclosed to Lender all
material facts and has not failed to disclose any material fact that could
cause any representation or warranty made herein to be materially misleading.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt 54.0pt;page-break-after:avoid;text-indent:54.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ix)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each of the representations and
warranties made by Principal herein or in any of the other Loan Documents is
true, complete and correct in all material respects as of the date made.</font></h3>

<p style="margin:0pt 0pt .0001pt 3.6pt;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [Intentionally Deleted].</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The provisions of Article 23 of the
Loan Agreement are hereby incorporated by reference, except that all references
to &#147;Borrower&#148; therein shall be deemed to be &#147;Principal&#148; and Principal&#146;s address
set forth in the first paragraph of this Guaranty shall be its address for
service of process.&#160; All notices under
this Guaranty shall be provided to all Principals and Lender.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Guaranty constitutes the
entire agreement between Principal and Lender with respect to the matters
referred to herein, and no modification or waiver of any of the terms hereof
shall be effective unless in writing, signed by all parties hereto.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Guaranty shall inure to the
benefit of Lender and any subsequent holder of the Loan Documents and shall
bind Principal and its respective heirs, successors and assigns.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt 3.6pt;page-break-after:auto;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Guaranty shall be governed by
the internal laws of the State of New York.</font></h1>

<p style="margin:0pt 0pt .0001pt 3.6pt;text-indent:64.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>SUBMISSION TO JURISDICTION</u>.&#160; WITH RESPECT TO ANY SUIT, ACTION OR
PROCEEDINGS RELATING TO THIS GUARANTY (EACH, A &#147;<u>PROCEEDING</u>&#148;), GUARANTORS
IRREVOCABLY (A) SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF ANY STATE COURT
SITTING IN THE ISLAND AND COUNTY OF MAUI, HAWAII, FEDERAL COURT SITTING IN THE
STATE OF HAWAII, OR STATE OR FEDERAL COURT SITTING IN NEW YORK COUNTY, NEW
YORK, AND (B) WAIVE ANY OBJECTION WHICH THEY MAY HAVE AT ANY TIME TO THE LAYING
OF VENUE OF ANY PROCEEDING BROUGHT IN ANY SUCH COURT, WAIVES ANY CLAIM THAT ANY
PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND FURTHER WAIVE THE
RIGHT TO OBJECT, WITH RESPECT TO SUCH PROCEEDING, THAT SUCH COURT DOES NOT HAVE
JURISDICTION OVER SUCH PARTY.&#160; NOTHING IN
THIS GUARANTY SHALL PRECLUDE LENDER FROM BRINGING A PROCEEDING IN ANY OTHER
JURISDICTION NOR WILL THE BRINGING OF A PROCEEDING IN ANY ONE OR MORE
JURISDICTIONS PRECLUDE THE BRINGING OF A PROCEEDING IN ANY OTHER
JURISDICTION.&#160; GUARANTORS FURTHER AGREE
AND CONSENT THAT, IN ADDITION TO ANY METHODS OF SERVICE OF PROCESS PROVIDED FOR
UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY PROCEEDING IN ANY STATE
COURT SITTING IN THE ISLAND AND COUNTY OF MAUI, HAWAII, FEDERAL COURT SITTING
IN THE STATE OF HAWAII, OR STATE OR FEDERAL COURT</font></p>

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SITTING IN NEW YORK COUNTY, NEW YORK,&#160;
MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED,
DIRECTED TO GUARANTORS AT THE ADDRESSES INDICATED ABOVE, AND SERVICE SO MADE
SHALL BE COMPLETE UPON RECEIPT; EXCEPT THAT IF GUARANTORS SHALL REFUSE TO
ACCEPT DELIVERY, SERVICE SHALL BE DEEMED COMPLETE FIVE (5) DAYS AFTER THE SAME
SHALL HAVE BEEN SO MAILED.</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt .0001pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [Intentionally Deleted].</font></p>

<p style="margin:0pt 0pt .0001pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Process in any suit, action or
proceeding of the nature referred to in <u>Section 14</u> hereof may be served:
(a) by registered or certified mail, postage prepaid, to Principal at the
address set forth above or to such other address of which Principal shall have
given Lender written notice; or (b) if Principal shall not have made an
appearance within twenty one (21) days after service in accordance with clause
(a) of this Section, by hand delivery to the agent identified in <u>Section 15</u>
hereof, or such successor agent as shall have been identified in accordance
with <u>Section 15</u> hereof.&#160; Nothing
in this Section shall affect the Lender&#146;s right to serve process in any manner
permitted by law, or limit Lender&#146;s right to bring proceedings against
Principal in the courts of any other jurisdiction.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If Principal shall advance or become
obligated to pay any sums in respect of the Recourse Obligations as provided
herein, or if for any reason whatsoever Borrower or any subsequent owner of the
Real Property is now or shall hereafter become indebted to Principal, Principal
agrees that the amount of such sums and of such indebtedness and all interest
thereon shall at all times be subordinate as to lien, time of payment and in
all other respects to all sums, including principal and interest and other
amounts, at any time owing to Lender under the Loan Documents.&#160; For so long as this Agreement shall remain in
force and effect, Principal shall not exercise any such right of subrogation in
or under the Loan Documents, or any right to participate in any way therein, or
in the right, title or interest of Lender in or to the Real Property.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u style="font-weight:bold;">Non-Waiver</u></b>.&#160; Neither failure nor delay on Lender&#146;s part in
insisting upon strict performance of any term, condition, covenant or agreement
or exercising any right, power, remedy or privilege hereunder, shall operate as
or constitute a waiver thereof, nor shall a single or partial exercise thereof
preclude any other future exercise, or the exercise of any other right, power,
remedy or privilege.&#160; By way of example,
and not by way of limitation, by accepting payment after the due date of any
amount payable under this Guaranty, Lender shall not be deemed to have waived
any right either to require prompt payment when due of all other amounts due
under this Guaranty, or to declare a default for failure to effect prompt
payment of any such other amount.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No consent by Borrower shall be
required for any assignment or reassignment of Lender&#146;s rights under this
Guaranty to any assignee of Lender&#146;s interest in the Note or any part
thereof.&#160; All references to &#147;Lender&#148;
hereunder shall be deemed to include such successors and assigns of Lender.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Wherever possible, each provision of
this Guaranty shall be interpreted in such manner as to be effective and valid
under applicable Laws, but if any provision of this Guaranty shall be
prohibited by or invalid under applicable law, such provision shall be</font></h1>

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Guaranty.</font></p>

<p style="margin:0pt 0pt .0001pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt .0001pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; TO THE FULLEST EXTENT PERMITTED BY
LAW, GUARANTORS HEREBY IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION,
COUNTERCLAIM OR JUDICIAL PROCEEDING BROUGHT BY BORROWER OR LENDER INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR IN
CONNECTION WITH THIS INSTRUMENT, THE LOAN, THE LOAN DOCUMENTS, AND ANY ACTS OR
OMISSIONS OF GUARANTORS IN CONNECTION THEREWITH.</font></p>

<p style="margin:0pt 0pt .0001pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt .0001pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Guaranty may be executed in any
number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same guaranty.</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">[The next page is the signature
page]</font></i></p>

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, Principal has duly executed and delivered this
Guaranty as of the date of this Guaranty.</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;font-family:Times New Roman;">
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlHTMLTableLeft --><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="341" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:255.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MAUI LAND &amp; PINEAPPLE COMPANY, INC.,</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="341" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:255.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Hawaii corporation</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="300" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="248" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:186.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ ROBERT WEBBER</font></p>
  </td>
  <td width="52" valign="top" style="padding:0pt .7pt 0pt 0pt;width:38.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="248" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:186.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">R. WEBBER</font></p>
  </td>
  <td width="52" valign="top" style="padding:0pt .7pt 0pt 0pt;width:38.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="248" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:186.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CFO</font></p>
  </td>
  <td width="52" valign="top" style="padding:0pt .7pt 0pt 0pt;width:38.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="300" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="341" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:255.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THE RITZ-CARLTON DEVELOPMENT<br>
  COMPANY, INC., a Delaware corporation</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="341" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:255.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="248" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:186.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ WILLIAM T. PHILLIPS</font></p>
  </td>
  <td width="52" valign="top" style="padding:0pt .7pt 0pt 0pt;width:38.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="300" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="248" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:186.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WILLIAM T. PHILLIPS</font></p>
  </td>
  <td width="52" valign="top" style="padding:0pt .7pt 0pt 0pt;width:38.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="300" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="248" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:186.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VICE-PRESIDENT</font></p>
  </td>
  <td width="52" valign="top" style="padding:0pt .7pt 0pt 0pt;width:38.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="300" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="341" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:255.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXCLUSIVE
  RESORTS DEVELOPMENT<br>
  COMPANY, LLC, a Delaware limited liability<br>
  company</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="341" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:255.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="248" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:186.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ TODD HARRIS</font></p>
  </td>
  <td width="52" valign="top" style="padding:0pt .7pt 0pt 0pt;width:38.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="300" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="248" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:186.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TODD HARRIS</font></p>
  </td>
  <td width="52" valign="top" style="padding:0pt .7pt 0pt 0pt;width:38.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="300" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="330" valign="top" style="padding:0pt .7pt 0pt 0pt;width:247.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="248" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:186.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SVP Member Services</font></p>
  </td>
  <td width="52" valign="top" style="padding:0pt .7pt 0pt 0pt;width:38.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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