Environmental Indemnification Agreement

Exhibit 10(iii)


ENVIRONMENTAL INDEMNIFICATION AGREEMENT

This Environmental Indemnification Agreement (this " Agreement" ) is made and entered into effective for all purposes as of the 20th day of November, 2003, by the parties signatory hereto or to an Accession Agreement (as hereinafter defined) (collectively, the " Indemnitor" whether one or more), to and for the benefit of BANK OF MONTREAL, CHICAGO BRANCH as Administrative Agent (the " Administration Agent" ), FLEET NATIONAL BANK, as Syndication Agent (the " Syndication Agent" ), HARRIS NESBITT CORP., as Co-Arranger and Co-Book Manager (the " First Arranger" ), FLEET SECURITIES, INC., as Co-Arranger and Co-Book Manager (the " Second Arranger" ), and the banks and other lenders named in the Credit Agreement herein described (the " Banks" ).


INTRODUCTION


WHEREAS, this Agreement is given in connection with that Senior Unsecured Credit Agreement dated as of November 20, 2003 (" Credit Agreement" ), among LASALLE HOTEL OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (the " BORROWER" ), Administrative Agent, Syndication Agent, First Arranger, Second Arranger and the banks and other lenders party thereto (collectively the " Banks" ) pursuant to which the Banks are making, subject to future advances, loans (and issuing letters of credit) in an amount up to $215,000,000, which amount may be increased under certain conditions to $300,000,000 (collectively, the " Loans'" ) to Borrower as more specifically described therein;


WHEREAS, the Borrower and Subsidiaries of the Borrower now or hereafter will own certain Hotel Properties which include without limitation the Initial Properties, the Future Properties, the Permitted Non-Eligible Prop ...