EXHIBIT 10.6

U.S. $40,000,000

SUBORDINATE UNSECURED TERM LOAN AGREEMENT

Dated as of January 10th, 2003

Among

MERISTAR H & R OPERATING COMPANY, L.P.

as the Borrower,

LEHMAN COMMERCIAL PAPER, INC.

as Administrative Agent,

LEHMAN BROTHERS, INC.

as Lead Arranger and Book Runner,

LEHMAN BROTHERS, INC.

as Lender,

AND

VARIOUS OTHER LENDERS

 

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ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
    1    
Section 1.01 Certain Defined Terms
    1    
Section 1.02 Computation of Time Periods
    26    
Section 1.03 Accounting Terms; Changes in GAAP
    26    
Section 1.04 Intentionally Deleted
    27    
Section 1.05 Miscellaneous
    27  
ARTICLE II THE ADVANCES
    27    
Section 2.01 The Advance
    27    
Section 2.02 Notes
    27    
Section 2.03 Fees
    27    
Section 2.04 Intentionally Deleted
    28    
Section 2.05 Repayment of Advances on Maturity Date; Extension
    28    
Section 2.06 Interest, Late Payment Fee
    28    
Section 2.07 Prepayments
    29    
Section 2.08 Breakage Costs
    30    
Section 2.09 Increased Costs
    30    
Section 2.10 Payments and Computations
    31    
Section 2.11 Taxes
    33    
Section 2.12 Illegality
    35    
Section 2.13 Eurodollar Rate Unascertainable
    36    
Section 2.14 Determination of Leverage Ratio and Senior Leverage Ratio
    36    
Section 2.15 Lender Replacement
    36    
Section 2.16 Sharing of Payments, Etc
    37    
Section 2.17 Agreement to Subordinate
    38  
ARTICLE III CONDITIONS OF LENDING
    38    
Section 3.01 Conditions Precedent to the Initial Advance
    38  
ARTICLE IV REPRESENTATIONS AND WARRANTIES
    40    
Section 4.01 Existence; Qualification; Partners; Subsidiaries
    40    
Section 4.02 Partnership and Corporate Power
    41    
Section 4.03 Authorization and Approvals
    41    
Section 4.04 Enforceable Obligations
    41    
Section 4.05 Financial Statements
    42  

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Section 4.06 True and Complete Disclosure
    42    
Section 4.07 Litigation
    42    
Section 4.08 Use of Proceeds
    42    
Section 4.09 Investment Company Act
    43    
Section 4.10 Taxes
    43    
Section 4.11 Pension Plans
    43    
Section 4.12 Insurance
    44    
Section 4.13 No Burdensome Restrictions; No Defaults
    44    
Section 4.14 Environmental Condition
    44    
Section 4.15 Legal Requirements, Zoning
    45    
Section 4.16 Existing Indebtedness and Interest Rate Agreements; Solvency
    46    
Section 4.17 Leasing Arrangements
    46    
Section 4.18 Management Agreements
    46    
Section 4.19 Intercompany Agreement
    46    
Section 4.20 Franchise Agreements
    47    
Section 4.21 Owned Hospitality Properties
    47    
Section 4.22 Approved Inter-Company Indebtedness
    47    
Section 4.23 Insurance Business
    47    
Section 4.24 Permitted Housing Business Leasing
    50  
ARTICLE V AFFIRMATIVE COVENANTS
    50    
Section 5.01 Compliance with Laws
    50    
Section 5.02 Preservation of Existence; Separateness, Etc.
    50    
Section 5.03 Payment of Taxes, Etc
    51    
Section 5.04 Visitation Rights; Lender Meeting
    52    
Section 5.05 Reporting Requirements
    52    
Section 5.06 Maintenance of Property
    55    
Section 5.07 Insurance
    55    
Section 5.08 Use of Proceeds
    56    
Section 5.09 Intentionally Deleted
    56    
Section 5.10 New Subsidiaries
    56    
Section 5.11 Insurance Business
    56    
Section 5.12 Interest Rate Agreements
    56  

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ARTICLE VI NEGATIVE COVENANTS
    57    
Section 6.01 Liens, Etc
    57    
Section 6.02 Indebtedness
    58    
Section 6.03 Agreements Restricting Distributions From Subsidiaries
    59    
Section 6.04 Restricted Payments
    59    
Section 6.05 Fundamental Changes; Asset Dispositions
    60    
Section 6.06 Investments and other Property
    61    
Section 6.07 Affiliate Transactions
    62    
Section 6.08 Sale or Discount of Receivables
    62    
Section 6.09 Material Documents
    62    
Section 6.10 No Further Negative Pledges
    62  
ARTICLE VII FINANCIAL COVENANTS
    63    
Section 7.01 Interest Coverage Ratio
    63    
Section 7.02 Senior Interest Coverage Ratio
    63    
Section 7.03 Leverage Ratio
    63    
Section 7.04 Senior Leverage Ratio
    64    
Section 7.05 Maintenance of Net Worth
    64  
ARTICLE VIII EVENTS OF DEFAULT; REMEDIES
    65    
Section 8.01 Events of Default
    65    
Section 8.02 Optional Acceleration of Maturity; Other Actions
    68    
Section 8.03 Automatic Acceleration of Maturity
    68    
Section 8.04 Intentionally Deleted
    68    
Section 8.05 Non-exclusivity of Remedies
    69    
Section 8.06 Right of Set-off
    69  
ARTICLE IX AGENCY AND ISSUING BANK PROVISIONS
    69    
Section 9.01 Authorization and Action
    69    
Section 9.02 Administrative Agent’s Reliance, Etc
    70    
Section 9.03 Each Agent and Its Affiliates
    70    
Section 9.04 Lender Credit Decision
    70    
Section 9.05 Indemnification
    71    
Section 9.06 Successor Agent
    71  
ARTICLE X MISCELLANEOUS
    72  

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Section 10.01 Amendments, Etc.
    72    
Section 10.02 Notices, Etc
    73    
Section 10.03 No Waiver; Remedies
    74    
Section 10.04 Costs and Expenses
    74    
Section 10.05 Binding Effect
    74    
Section 10.06 Lender Assignments and Participations
    74    
Section 10.07 Indemnification
    77    
Section 10.08 Execution in Counterparts
    78    
Section 10.09 Survival of Representations, Indemnifications, etc
    78    
Section 10.10 Severability
    78    
Section 10.11 Usury Not Intended
    78    
Section 10.12 GOVERNING LAW
    79    
Section 10.13 CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL
    79    
Section 10.14 Knowledge of Borrower
    81    
Section 10.15 Lenders Not in Control
    81    
Section 10.16 Headings Descriptive
    81    
Section 10.17 Time is of the Essence
    81    
Section 10.18 Intentionally Deleted
    81    
Section 10.19 Judgment Currency
    81    
Section 10.20 No Consequential Damages
    81  

EXHIBITS:

          Exhibit A   -   Form of Note Exhibit B   -   Form of Adjustment Report
Exhibit C   -   Form of Assignment and Acceptance Exhibit D   -   Form of
Compliance Certificate Exhibit F   -   Form of Guaranty

SCHEDULES:

          Schedule 1.01(a)   -   Commitments Schedule 1.01(b)   -   Approved
Inter-Company Indebtedness Schedule 1.01(c)   -   Non-Pledged Ownership
Interests Schedule 1.01(d)   -   Existing Owned Hospitality Property Investments
Schedule 1.01(e)   -   Existing Management Agreements

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          Schedule 1.01(f)   -   Existing Participating Leases Schedule 1.01(g)
  -   Guarantors Schedule 1.01(i)   -   Specified Acquirer Schedule 4.01   -  
Subsidiaries Schedule 4.07   -   Litigation Schedule 4.14   -   Environmental
Condition Schedule 4.15   -   Legal Requirements; Zoning; Utilities; Access
Schedule 4.16   -   Existing Indebtedness and Interest Rate Agreements
Schedule 4.21   -   Owned Hospitality Properties Schedule 4.23(a)   -  
Insurance Companies, Insurance Licenses and Deposited Securities
Schedule 4.23(e)   -   Insurance Contracts and Reinsurance Contracts
Schedule 4.24   -   Permitted Housing Business Leasing Schedule 5.07   -  
Required Insurance Coverage

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SUBORDINATE UNSECURED TERM LOAN AGREEMENT

     THIS SUBORDINATE UNSECURED TERM LOAN AGREEMENT (this “Agreement”), dated as
of January 10th, 2003 (the “Closing Date”), is among MERISTAR H & R OPERATING
COMPANY, L.P., a Delaware limited partnership, as the Borrower; LEHMAN
COMMERCIAL PAPER, INC., as the Administrative Agent; LEHMAN BROTHERS, INC., as
Sole Lead Arranger and Book Runner; LEHMAN BROTHERS, INC., as Lender; and the
Various Other Lenders (as defined below).

PRELIMINARY STATEMENTS:

     WHEREAS, the Borrower desires that the Lenders extend certain credit
facilities, the proceeds of which will be used for the purposes set forth in
Section 4.08;

     WHEREAS, the Lenders have agreed to extend such credit facilities as more
specifically described in this Agreement;

     NOW, THEREFORE, in consideration of the foregoing recitals and the
provisions contained in this Agreement, the parties hereto do hereby agree as
follows:

ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS

     Section 1.01 Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (unless otherwise indicated,
such meanings to be equally applicable to both the singular and plural forms of
the terms defined):

     “Accession Agreement” means an Accession Agreement in the form attached
respectively to the Guaranty as Annex 1 thereto, which agreement causes the
Person executing and delivering the same to the Administrative Agent to become a
party, respectively, to the Guaranty.

     “Additional Designated Senior Indebtedness” means, for the Parent and its
Subsidiaries, Senior Indebtedness of the Parent and its Subsidiaries (a) which
is incurred after the Closing Date, (b) for which the gross proceeds are equal
to or greater than $90,000,000 but do not exceed $113,000,000, (c) which does
not have a maturity date earlier than six (6) months after the Maturity Date, as
the Maturity Date have been extended, (d) which does not cause a Default or
Event of Default to occur, and (e) for which the Net Cash Proceeds are used to
repay the Senior Obligations and the Obligations to the extent required by and
in accordance with the terms of the Senior Credit Facility and this Agreement,
respectively.

     “Adjusted EBITDA” means, for any Person or Hospitality Property, as
applicable, for any Rolling Period, the EBITDA of such Person or Hospitality
Property, as applicable, for such Rolling Period plus non-cash employee
compensation up to $2,000,000 per Fiscal Year in the aggregate commencing with
the 2002 Fiscal Year, and other non-cash items of such Person or Hospitality
Property, as applicable, for such Rolling Period; provided that for any
Hospitality Property the aggregate FF&E Reserves for such Rolling Period in
respect of such Hospitality

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Property shall be subtracted from such Hospitality Property’s EBITDA in
determining such Hospitality Property’s Adjusted EBITDA; provided further that
if the Parent or any of its Subsidiaries during such Rolling Period or in the
period from the end of such Rolling Period to the Status Reset Date which occurs
in the Fiscal Quarter following such Rolling Period either (a) sells, disposes
of or terminates any Permitted Property Agreements or (b) sells or disposes of
any Investments or Non-Replaced Property with an Investment Amount in excess of
$1,000,000, the EBITDA arising from such Permitted Property Agreement,
Investment, or Non-Replaced Property, as applicable, for the applicable Rolling
Period shall be excluded from the calculation of Adjusted EBITDA; and provided
further if the Parent or any of its Subsidiaries during such Rolling Period or
in the period from the end of such Rolling Period to the Status Reset Date which
occurs in the Fiscal Quarter following such Rolling Period either (a) purchases
or acquires any Permitted Property Agreements or (b) purchases or acquires any
Investments or Non-Replaced Property with an Investment Amount in excess of
$1,000,000, the EBITDA arising from such Permitted Property Agreement,
Investment, or Non-Replaced Property, as applicable, for the applicable Rolling
Period on a pro forma basis shall be included in the calculation of Adjusted
EBITDA; and provided further that the Adjusted EBITDA for the Parent and its
Subsidiaries for the Rolling Periods ending on the dates set forth in the
following chart will for purposes of the financial covenants contained in
Article VII be increased by the applicable amount set forth next to the ending
date of each such Rolling Period:

          Ending Date of Rolling Period   Adjusted EBITDA Adjustment

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September 30, 2002
  $ 5,000,000  
December 31, 2002
  $ 3,750,000  
March 31, 2003
  $ 2,500,000  
June 30, 2003
  $ 1,250,000  

     “Adjusted Net Worth” means, for the Parent as of any date, the sum of (a)
the Parent’s Net Worth on such date plus (b) the minority interest reflected as
a liability on the Parent’s balance sheet on such date determined in accordance
with GAAP (excluding that portion of the minority interest attributable to
Ownership Interests in any Subsidiary of the Borrower which is not a Guarantor).

     “Adjustment Event” has the meaning set forth in Section 2.14(a).

     “Adjustment Report” means a certificate of the Borrower in substantially
the form of the attached Exhibit B.

     “Administrative Agent” means Lehman Commercial Paper, Inc. in its capacity
as Administrative Agent for the Lenders pursuant to Article IX and any successor
Administrative Agent appointed pursuant to Section 9.06.

     “Administrative Agent Fee Letter” means the letter agreement dated as of
January 10th, 2003, among the Borrower, the Parent, and the Administrative
Agent, as the same may be amended, modified, supplemented or replaced.

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     “Advance” means the advance by a Lender to the Borrower of its Commitment
pursuant to Section 2.01.

     “Affected Lender” has the meaning set forth in Section 2.15(a).

     “Affiliate” means, as to any Person, any other Person that, directly or
indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such Person or any Subsidiary of such Person. The
term “control” (including the terms “controlled by” or “under common control
with”) means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a Person, whether through
ownership of a Control Percentage, by contract or otherwise.

     “Agreement” has the meaning given such term in the initial paragraph of
this agreement.

     “Applicable Lending Office” means, with respect to each Lender, (a) in the
case of a Base Rate Portion, such Lender’s Domestic Lending Office, (b) in the
case of a Eurodollar Portion, such Lender’s Eurodollar Lending Office, and (c)
in the case of any other notice or request under the Credit Documents, the
office of such Lender specified as its “Credit Contact” in the questionnaire
such Lender provided to the Administrative Agent, or such other office of such
Lender as such Lender may from time to time specify to the Borrower and the
Administrative Agent.

     “Applicable Margin” means, with respect to any Loan Portion at any date,
the applicable percentage per annum set forth below:

          Base Rate   Eurodollar Portion   Portion

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7.50%     8.50 %

     “Approved Fund” means any fund that invests in commercial loans which is
advised or managed by an investment advisor which has total assets under
management in excess of $250,000,000.

     “Approved Inter-Company Indebtedness” means the Indebtedness described on
Schedule 1.01(b), which Indebtedness (a) may not exceed $50,000,000 without the
approval of the Administrative Agent and may not exceed $52,500,000 without the
approval of the Required Lenders, (b) is unsecured, (c) is subordinated to the
Senior Obligations and to the Obligations, in a manner acceptable to the
Administrative Agent, and (d) is Collateral for the Senior Credit Facility.

     “Approved Inter-Company Indebtedness Loan Documents” means the documents
described on Schedule 1.01(b), together with any additional promissory notes
evidencing Approved Inter-Company Indebtedness.

     “Approved Management Agreement” means a management agreement by and between
a Person, as owner, and Borrower or Borrower’s Subsidiary or Unconsolidated
Entity, as manager,

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in substantially the form of an Existing Management Agreement, a form which does
not include materially adverse provisions which are not customary for management
agreements of Hospitality Properties or such other form as is approved by the
Senior Administrative Agent, or, if the Senior Credit Facility has been repaid
in full and has been terminated, the Administrative Agent, in writing (which
approval shall not be unreasonably withheld).

     “Approved Participating Lease” means a lease (except for a Ground Lease) by
and between a Person, as lessor, and Borrower or Borrower’s Subsidiary, as
lessee, in substantially the form of an Existing Participating Lease, a form
which does not include materially adverse provisions which are not customary for
participating leases of Hospitality Properties or such other form as is approved
by the Senior Administrative Agent, or, if the Senior Credit Facility has been
repaid in full and has been terminated, the Administrative Agent, in writing
(which approval shall not be unreasonably withheld).

     “Asset Disposition” means any conveyance, exchange, transfer, or assignment
of any Investment or Non-Replaced Property by the Borrower or a Guarantor to a
Person other than the Borrower or a Guarantor.

     “Assignment and Acceptance” means an assignment and acceptance entered into
by a Lender and an Eligible Assignee, and accepted by the Administrative Agent,
in substantially the form of the attached Exhibit C.

     “Base Rate” shall mean for any day, a rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to the higher of (a) the Prime Rate in
effect on such day and (b) the Federal Funds Rate in effect on such day plus 1/2
of 1%. For purposes hereof: “Prime Rate” shall mean the prime lending rate as
set forth on the British Banking Association Telerate Page 5 (or such other
comparable page as may, in the opinion of the Administrative Agent, replace such
page for the purpose of displaying such rate), as in effect from time to time.
The Prime Rate is a reference rate and does not necessarily represent the lowest
or best rate actually available. The Administrative Agent or any Lender may make
commercial loans or other loans at rates of interest at, above or below the
Prime Rate. Changes in the Base Rate due to a change in the Prime Rate or the
Federal Funds Rate shall be effective as of the opening of business on the
effective day of such change in the Prime Rate or the Federal Funds Rate,
respectively.

     “Base Rate Portion” shall mean the portion of the Loan being maintained at
a rate of interest based upon the Base Rate

     “Beverage Entity” means any Subsidiary or Unconsolidated Entity of the
Parent for which substantially all of such Person’s Property is directly related
to the sale of beverages at a Hospitality Property, and “Beverage Entities”
means all such Persons.

     “Borrower” means MeriStar H & R Operating Company, L.P., a Delaware limited
partnership.

     “Borrowing” means the borrowing consisting of the simultaneous Advance of
the entire Facility Amount made by each Lender pursuant to Section 2.01(a) on
the Closing Date.

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     “Business Day” means (a) with respect to a Base Rate Portion, a day of the
year on which banks are not required or authorized to close in New York, New
York, and (b) with respect to a Eurodollar Portion, a day of the year on which
banks are not required or authorized to close in New York, New York, or London,
England.

     “Capital Expenditure” means any payment made directly or indirectly for the
purpose of acquiring or constructing fixed assets, real property, improvements,
equipment, or other personal property, or for replacements or substitutions
therefore or additions thereto, which in accordance with GAAP would be
capitalized in the fixed asset accounts of such Person making such expenditure,
including, without limitation, amounts paid or payable for such purpose under
any conditional sale or other title retention agreement or under any Capital
Lease, but excluding repairs or maintenance of any Hospitality Property in the
normal and ordinary course of business in keeping with the past practices of the
Borrower, IHC or the Parent.

     “Capital Lease” means, for any Person, any lease of any Property (whether
real, personal or mixed) by that Person as lessee which, in accordance with
GAAP, is or should be accounted for as a capital lease on the balance sheet of
that Person.

     “Capitalization Event” means any sale or issuance by the Parent or any of
its Subsidiaries of equity securities except for the issuance of the Borrower’s
limited partnership interests in accordance with the provisions of Section 6.05.

     “Capitalized Lease Obligations” means, as to any Person, the capitalized
amount of all obligations of such Person or any of its Subsidiaries under
Capitalized Leases, as determined on a consolidated basis in conformity with
GAAP.

     “CERCLA” means the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, all rules and regulations and requirements
thereunder in each case as now or hereafter in effect.

     “Change in Control” means for any Person a change in ownership or control
of such Person effected through either of the following transactions:

       (a) any Person or related group of Persons (other than such Person or an
Affiliate of such Person) directly or indirectly acquires beneficial ownership
(within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as
amended) of (i) securities possessing more than fifty percent (50%) of the total
combined voting power of such Person’s outstanding securities, or (ii) with
respect to the Parent or the Borrower after the date which is January 31, 2003,
securities (excluding securities held by CGLH Partners I LP and CGLH Partners II
LP as of the Closing Date and any transferee of such securities) possessing more
than thirty five percent (35%) of the total combined voting power of such
Person’s outstanding securities; or

       (b) excluding with respect to the Parent those changes to the Parent’s
Board of Directors that occur as part of the consummation of the Merger, there
is a change in the composition of such Person’s Board of Directors over a period
of thirty-six (36) consecutive months (or less) such that a majority of Board
members (rounded up to the

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  nearest whole number) ceases, by reason of one or more proxy contests for the
election of Board members, to be comprised of individuals who either (i) have
been Board members continuously since the beginning of such period or (ii) have
been elected or nominated for election as Board members during such period by at
least a majority of the Board members described in clause (i) who were still in
office at the time such election or nomination was approved by the Board.

     “Closing Date” has the meaning given such term in the initial paragraph of
this agreement.

     “Code” means the Internal Revenue Code of 1986, as amended, and any
successor statute.

     “Collateral” has the meaning given such term in the Senior Credit Facility.

     “Commitment” means, for each Lender, the amount set opposite such Lender’s
name on Schedule 1.01(a) as its Commitment, as the same may be reduced as a
result of prepayment of principal in accordance with the terms of this
Agreement.

     “Compliance Certificate” means a certificate of the Borrower in
substantially the form of the attached Exhibit D.

     “Consolidated” refers, with respect to any Person, to the consolidation of
the accounts of such Person with such Person’s Subsidiaries in accordance with
GAAP.

     “Control Percentage” means, with respect to any Person, the percentage of
the outstanding capital stock of such Person having ordinary voting power which
gives the direct or indirect holder of such stock the power to elect a majority
of the Board of Directors of such Person.

     “Controlled Group” means all members of the controlled group of
corporations and all trades (whether or not incorporated) under common control
which, together with the Borrower, are treated as a single employer under
Section 414 of the Code.

     “Credit Documents” means this Agreement, the Notes, the Guaranties, the Fee
Letter, the Administrative Agent Fee Letter, and each other agreement,
instrument or document executed by the Borrower or any of its Subsidiaries at
any time in connection with this Agreement.

     “Default” means (a) an Event of Default or (b) any event or condition which
with notice or lapse of time or both would, unless cured or waived, become an
Event of Default.

     “Defaulting Lender” means any Lender which has wrongfully refused or failed
to fund its portion of any unreimbursed payment under Section 9.05, or notified
in writing the Borrower or the Administrative Agent that such Lender does not
intend to comply with its obligations under this Agreement.

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     “Designated Redemption Indebtedness” means Indebtedness in the amount of
approximately $1,310,000 in the form of Mandatorily Redeemable Stock consisting
of 392,157 Preferred Units in the Borrower held by CapStar Management Company,
LLC which are redeemable at the option of the Unit holder pursuant to the
partnership agreement of Borrower on or after April 1, 2004 for, at the option
of the holder, cash in the amount of $3.34 per unit or the equivalent in common
stock of the Parent; provided that without the written consent of the Required
Lenders and the Senior Required Lenders the Parent and the Borrower will not
modify the documentation creating or evidencing the “Designated Redemption
Indebtedness” in any manner which would increase the amount of such Indebtedness
or accelerate the time at which such Person is obligated to repay such
Indebtedness.

     “Dollars” and “$” means lawful money of the United States of America.

     “Domestic Lending Office” means, with respect to any Lender, the office of
such Lender specified as its “Operations Contact” for Base Rate Portions in the
questionnaire such Lender provided to the Administrative Agent, or such other
office of such Lender as such Lender may from time to time specify to the
Borrower and the Administrative Agent.

     “EBITDA” means for any Person or Hospitality Property, as applicable, for
any period for which such amount is being determined, an amount equal to (a) the
Net Income for such Person or Hospitality Property, as applicable, for such
period plus (b) to the extent deducted in determining Net Income, Interest
Expense, income taxes, depreciation, and amortization, as determined on a
Consolidated basis in accordance with GAAP plus (c) to the extent deducted in
determining Net Income, deductions for minority interest attributable to the
Ownership Interests in the Borrower not owned (directly or indirectly) by the
Parent.

     “Effective Date” means the date all of the conditions precedent set forth
in Section 3.01 have been satisfied.

     “Eligible Assignee” means any of the following approved by those Persons
who have approval rights pursuant to the provisions of Section 10.06, which
approval will not be unreasonably withheld: (a) a commercial bank organized
under the laws of the United States, or any State thereof, and having primary
capital of not less than $250,000,000 (b) a commercial bank organized under the
laws of any other country which is a member of the Organization for Economic
Cooperation and Development and having primary capital (or its equivalent) of
not less than $250,000,000 (or its Dollar Equivalent), (c) an investment bank
organized under the laws of the United States, or any State thereof, and having
total assets in excess of $5,000,000,000, (d) an insurance company, finance
company or financial institution (whether a corporation, partnership, trust or
other Person) organized under the laws of the United States, or any state
thereof, and having total assets in excess of $5,000,000,000, (e) any Approved
Fund, (f) any “accredited investor” (as defined in Regulation D of the
Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder) which has total assets in excess of $100,000,000, (g) a Lender, and
(h) an Affiliate of the respective assigning Lender, without approval of any
Person except as set forth in Section 10.06, but otherwise meeting the
eligibility requirements of (a), (b), (c), (d), (e) or (f) above.

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     “Environment” or “Environmental” shall have the respective meanings set
forth in 42 U.S.C. §9601(8), as amended.

     “Environmental Claim” means any third party (including governmental
agencies and employees) action, lawsuit, claim, demand, regulatory action or
proceeding, order, decree, consent agreement or notice of potential or actual
responsibility or violation (including claims or proceedings under the
Occupational Safety and Health Acts or similar laws or requirements relating to
health or safety of employees) which seeks to impose liability under any
Environmental Law.

     “Environmental Law” means all Legal Requirements arising from, relating to,
or in connection with the Environment, health, or safety, including without
limitation CERCLA, relating to (a) pollution, contamination, injury,
destruction, loss, protection, cleanup, reclamation or restoration of the air,
surface water, groundwater, land surface or subsurface strata, or other natural
resources; (b) solid, gaseous or liquid waste generation, treatment, processing,
recycling, reclamation, cleanup, storage, disposal or transportation;
(c) exposure to pollutants, contaminants, hazardous, medical, infectious, or
toxic substances, materials or wastes; (d) the safety or health of employees; or
(e) the manufacture, processing, handling, transportation, distribution in
commerce, use, storage or disposal of hazardous, medical, infectious, or toxic
substances, materials or wastes.

     “Environmental Permit” means any permit, license, order, approval or other
authorization under Environmental Law.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

     “Eurocurrency Liabilities” has the meaning assigned to that term in
Regulation D of the Federal Reserve Board (or any successor), as in effect from
time to time.

     “Eurodollar Lending Office” means, with respect to any Lender, the office
or offices of such Lender specified as its “Operations Contact” for each
Eurodollar Portion in the questionnaire such Lender provided to the
Administrative Agent, or such other office of such Lender as such Lender may
from time to time specify to the Borrower and the Administrative Agent for its
Eurodollar Portion.

     “Eurodollar Portion” shall mean the portion of the Loan made and/or being
maintained at a rate of interest calculated by reference to the Eurodollar Rate.
The entire Loan shall be a Eurodollar Portion unless one of the events described
in Section 2.12 has occurred.

     “Eurodollar Rate” means, for the Interest Period for a Eurodollar Rate
Portion, an interest rate per annum (rounded upward to the nearest whole
multiple of 1/16 of 1% per annum) equal to the rate per annum at which deposits
in Dollars are offered to prime banks in the London interbank market at 11:00
a.m. (London time) two Business Days before the first day of such Interest
Period as shown on the display designated “British Banker’s Association Interest
Settlement Rates” on Telerate at Page 3750 or Page 3740, or such other page or
pages as may replace such pages on Telerate for purposes of displaying such
rate, and for a period of one (1)

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month; provided, however, that if such rate is not available on Telerate then
such offered rate shall be otherwise independently determined by Administrative
Agent from an alternate, substantially similar source available to
Administrative Agent or shall be calculated by Administrative Agent by a
substantially similar methodology as that theretofore used to determine such
offered rate in Telerate.

     “Eurodollar Rate Reserve Percentage” shall mean, on any day, that
percentage (expressed as a decimal fraction) which is in effect on such date, as
provided by the Federal Reserve System for determining the maximum reserve
requirements generally applicable to financial institutions regulated by the
Federal Reserve Board comparable in size and type to the Administrative Agent
(including, without limitation, basic, supplemental, marginal and emergency
reserves) under Regulation D with respect to Eurocurrency Liabilities, or under
any similar or successor regulation with respect to Eurocurrency Liabilities (or
other category of liabilities which includes deposits by reference to which the
interest rate on a Eurodollar Portion is determined or any category or
extensions of credit which includes loans by a non-United States office of the
Administrative Agent to United States residents). Each determination by the
Administrative Agent of the Eurodollar Rate Reserve Percentage, shall, in the
absence of manifest error, be conclusive and binding upon the Borrower.

     “Event of Default” has the meaning set forth in Section 8.01.

     “Exchange Act” means the Securities Exchange Act of 1934,15 U.S.C., as
amended, and the rules and regulations promulgated thereunder.

     “Existing Management Agreements” means the management agreements listed on
Schedule 1.01(e).

     “Existing Owned Hospitality Property Investments” means the Owned
Hospitality Property Investments set forth on Schedule 1.01(d) and other Owned
Hospitality Property Investments in which the Borrower’s direct or indirect
ownership in such Owned Hospitality Property Investment is equal to or less than
twenty percent (20%) of the total ownership in such Owned Hospitality Property
Investment.

     “Existing Participating Leases” means the participating leases set forth on
Schedule 1.01(f).

     “Facility Amount” means $40,000,000.00.

     “Federal Funds Rate” means, for any period, a fluctuating interest rate per
annum equal for each day during such period to the weighted average of the rates
on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers, as published for such day (or, if such
day is not a Business Day, for the next preceding Business Day) by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day which
is a Business Day, the average of the quotations for any such day on such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

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     “Federal Reserve Board” means the Board of Governors of the Federal Reserve
System or any of its successors.

     “Fee Letter” means the letter agreement dated as of January 10th, 2003,
among the Borrower, the Parent, and Lehman Brothers Inc.

     “FelCor” means FelCor Lodging Limited Partnership.

     “FF&E Reserve” means, for any Hospitality Property for any period, a
reserve equal to four percent (4%) of gross revenues from such Hospitality
Property for such period, excluding, however, from such calculation for such
Hospitality Property the gross revenues generated by the office, retail and
garage portions of such Hospitality Property.

     “Financial Statements” means the financial statements of Parent and its
Subsidiaries dated as of September 30, 2002.

     “Fiscal Quarter” means each of the three-month periods ending on March 31,
June 30, September 30 and December 31.

     “Fiscal Year” means the twelve-month period ending on December 31.

     “Fund,” “Trust Fund,” or “Superfund” means the Hazardous Substance Response
Trust Fund, established pursuant to 42 U.S.C. §9631 (1988) and the Post-closure
Liability Trust Fund, established pursuant to 42 U.S.C. §9641 (1988), which
statutory provisions have been amended or repealed by the Superfund Amendments
and Reauthorization Act of 1986, and the “Fund,” “Trust Fund,” or “Superfund”
that are now maintained pursuant to 42 U.S.C. §9507.

     “GAAP” means United States generally accepted accounting principles as in
effect from time to time, applied on a basis consistent with the requirements of
Section 1.03.

     “Governmental Authority” means any foreign governmental authority, the
United States of America, any state of the United States of America and any
subdivision of any of the foregoing, and any agency, department, commission,
board, authority or instrumentality, bureau or court having jurisdiction over
any Lender, the Parent, the Borrower, any Subsidiaries of the Borrower or the
Parent or any of their respective Properties.

     “Governmental Proceedings” means any action or proceedings by or before any
Governmental Authority, including, without limitation, the promulgation,
enactment or entry of any Legal Requirement.

     “Ground Lease” means a lease by and between a Person, as lessor, and
Borrower or Borrower’s Subsidiary, as lessee, where the term of such lease is in
excess of twenty (20) years.

     “Guarantor” means each of the Parent, each Subsidiary of the Parent (except
the Permitted Other Subsidiaries, the Beverage Entities, Flagstone Hospitality
Management LLC, and certain other non-Material Subsidiaries which are prohibited
from acting as a Guarantor because of joint venture agreements, organizational
documents and other contractual

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arrangements to which such non-Material Subsidiary is a party and which are in
effect on the Closing Date, in each case as approved by the Administrative
Agent) existing as of the Closing Date, and any future Material Subsidiary, and
“Guarantors” means all of such Persons. The Guarantors on the Closing Date are
identified on Schedule 1.01(g).

     “Guaranty” means one or more Guaranty and Contribution Agreements in
substantially the form of the attached Exhibit F executed by the Guarantors,
evidencing the joint and several guaranty by the signatories thereto of the
obligations of Borrower in respect of the Credit Documents, and any future
guaranty and contribution agreement executed to secure the Obligations, as any
of such agreements may be amended hereafter in accordance with the terms of such
agreements.

     “Hazardous Substance” or “Hazardous Material” means the substances
identified as such pursuant to CERCLA and those regulated under any other
Environmental Law, including without limitation pollutants, contaminants,
petroleum, petroleum products, radio nuclides, radioactive materials, and
medical and infectious waste.

     “Hazardous Waste” means the substances regulated as such pursuant to any
Environmental Law.

     “Hospitality Management Business” shall mean the management, operation or
leasing as lessee of any Hospitality Property, including timeshare sales and
brokerage, and the operation of any Permitted Housing Business.

     “Hospitality Property” shall mean a full service or limited service hotel
or resort, a condominium or timeshare resort, an extended stay property, or a
conference center, and other facilities incidental to, or in support of such
property, including without limitation, restaurants and other food-service
facilities, golf facilities or other entertainment facilities or club,
conference or meeting facilities and intellectual property related thereto;
provided that such property shall not include any casino or other gaming
property (even if only a part of a Hospitality Property) or senior living
property.

     “Improvements” for any Owned Hospitality Property means all buildings,
structures, fixtures, tenant improvements and other improvements of every kind
and description now or hereafter located in or on or attached to the Land for
such Owned Hospitality Property; and all additions and betterments thereto and
all renewals, substitutions and replacements thereof.

     “Indebtedness” means (without duplication), at any time and with respect to
any Person, (a) indebtedness of such Person for borrowed money (whether by loan
or the issuance and sale of debt securities) or for the deferred purchase price
of property or services purchased (other than amounts constituting trade
payables or bank drafts arising in the ordinary course of business); (b)
indebtedness of others in the amount which such Person has directly or
indirectly assumed or guaranteed or otherwise provided credit support therefor
or for which such Person is liable as a partner of such Person; (c) indebtedness
of others in the amount secured by a Lien on assets of such Person, whether or
not such Person shall have assumed such indebtedness unless the validity of such
Lien is being contested in good faith and with due diligence by appropriate

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proceedings, provided that such Lien is subordinate to the Liens created by the
Senior Security Documents and such Person shall have delivered a bond or other
security acceptable to the Senior Administrative Agent or, if the Senior Credit
Facility has been repaid in full and has been terminated, the Administrative
Agent, equal to 125% of the contested amount; (d) obligations of such Person in
respect of letters of credit, acceptance facilities, or drafts or similar
instruments issued or accepted by banks and other financial institutions for the
account of such Person (other than trade payables or bank drafts arising in the
ordinary course); (e) obligations of such Person under Capital Leases; (f) all
obligations, contingent or otherwise, of such Person under any synthetic lease,
tax retention operating lease, off balance sheet loan or similar off balance
sheet financing arrangement if the transaction giving rise to such obligation
(1) is considered indebtedness for borrowed money for U.S. federal income tax
purposes but is classified as an operating lease under GAAP and (2) does not
(and is not required pursuant to GAAP to) appear as a liability on the balance
sheet of such Person; (g) all obligations of such Person to purchase, redeem,
retire, defease or otherwise make any payment in respect of any Mandatorily
Redeemable Stock issued by such Person or any other Person, valued at the
greater of its voluntary or involuntary liquidation preference plus accrued and
unpaid dividends; (h) all obligations of such Person in respect of any take-out
commitment or forward equity commitment (excluding, in the case of the Borrower
and its Subsidiaries, any such obligation that can be satisfied solely by the
issuance of Ownership Interests (other than Mandatorily Redeemable Stock)); and
(i) to the extent treated as a liability under GAAP, obligations under interest
rate swap agreements, interest rate cap agreements, interest rate collar
agreements or other similar agreements or arrangements designed to protect
against fluctuations in interest rates; provided that “Indebtedness” shall not
include (i) any Indebtedness related to the Parent’s or the Parent’s
Subsidiary’s Investment with respect to the St. Louis Radisson Hotel which is
non-recourse to the Parent, the Borrower and their respective Subsidiaries
except for the Ownership Interests in the Unconsolidated Entity which owns such
hotel and (ii) any Designated Redemption Indebtedness.

     “Insurance Annual Statement” means the annual statutory financial
statements of each Insurance Company required to be filed with the insurance
commissioner (or similar Governmental Authority) of its jurisdiction of
incorporation, which statement shall be in the form required by the jurisdiction
of incorporation of such Insurance Company or, if no specific form is so
required, in the form of financial statements permitted by such insurance
commissioner (or such similar Governmental Authority) to be used for filing
annual statutory financial statements and shall contain the type of information
permitted by such insurance commissioner (or such similar Governmental
Authority) to be disclosed therein, together with all exhibits or schedules
filed therewith.

     “Insurance Contract” means each outstanding insurance contract of each
Insurance Company.

     “Insurance Company” means each of the Borrower, the Parent or their
respective Subsidiaries that is or acts as an insurance company or provides a
guaranty for a Person acting as an insurance company.

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     “Insurance License” means any license, certificate of authority, permit or
other authorization which is required to be obtained from any Governmental
Authority in connection with the operation, ownership or transaction of
insurance business.

     “Insurance Reserve Liabilities” means all reserves and other liabilities
with respect to insurance and for claims and benefits incurred but not reported.

     “Insurance Surplus” means an estimate of the amount by which an insurance
plan’s assets exceed its expected current and future liabilities, including the
amount expected to be needed to fund future benefit payments.

     “Intercompany Agreement” means the Intercompany Agreement dated as of
August 3, 1998, by and among the Parent, the Borrower, MHC, and MHC OP, as
amended by Amendment to Intercompany Agreement dated as of January 1, 2001, and
as may be further amended in accordance with the provisions of this Agreement.

     “Intercompany Indebtedness Subordination Agreement” shall mean that certain
Subordination Agreement dated the date hereof between IHC Holdings Inc. and
Administrative Agent on behalf of the Lenders with respect to the Approved Inter
Company Indebtedness, as such agreement may be amended, modified, supplemented
or restated from time to time.

     “Intercreditor Agreement” means that Intercreditor Agreement dated as of
the Closing Date between the Senior Administrative Agent for the benefit of the
Senior Lenders under the Senior Credit Facility and the Administrative Agent for
the benefit of the Lenders, as the same may be modified or amended from time to
time.

     “Interest Coverage Ratio” means, as of the end of any Rolling Period, a
ratio of (a) the Parent’s Adjusted EBITDA to (b) the Parent’s Interest Expense,
for such Rolling Period.

     “Interest Expense” means, for any Person for any period for which such
amount is being determined, the total interest expense (including that properly
attributable to Capital Leases in accordance with GAAP) and all charges incurred
with respect to letters of credit determined on a Consolidated basis in
conformity with GAAP, plus capitalized interest of such Person and its
Subsidiaries, minus, for such periods for which all or a portion of such period
occurred prior to the date of the Merger, all interest income earned for such
period by such Person and its Subsidiaries prior to the date of the Merger
determined on a Consolidated basis in conformity with GAAP.

     “Interest Period” shall mean a one month period, provided that:

       (i) the first Interest Period shall commence on the Closing Date and end
on February 1, 2003;

       (ii) the second Interest Period shall commence on February 1, 2003 and
each Interest Period occurring thereafter shall commence on the date on which
the next preceding Interest Period expires;

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       (iii) each Interest Period shall expire on the first calendar day of the
immediately succeeding calendar month;

       (iv) no Interest Period shall extend beyond the Maturity Date; and

       (v) Interest shall accrue from and including the first day of an Interest
Period to but excluding the last day of such Interest Period.

     “Interest Rate Agreements” means any interest rate swap agreement, interest
rate cap agreement, interest rate collar agreement or other similar agreement or
arrangement pertaining to the fluctuations in interest rates.

     “Investment” means, with respect to any Person, (a) any loan or advance to
any other Person, (b) the ownership, purchase or other acquisition of any
Ownership Interests or Ownership Interest Equivalents in any other Person, (c)
any joint venture or partnership with, or any capital contribution to, or other
investment in, any other Person, (d) any Capital Expenditure, and (e) any
payment, whether capitalized or not, to acquire a management agreement or lease
(including, without limitation, any Permitted Property Agreement or Permitted
Housing Agreement).

     “Investment Amount” means (a) for any Owned Hospitality Property the sum of
(i) the aggregate purchase price paid by the Borrower or its Subsidiary for such
Owned Hospitality Property, and (ii) the actual cost of any Capital Expenditures
for such Owned Hospitality Property made by the Borrower or its Subsidiaries
after the acquisition of such Owned Hospitality Property, and (b) for any other
Investment or Property the aggregate purchase price paid by the Borrower or its
Subsidiary for such other Investment or Property. The Investment Amount shall
include any Ownership Interests or Ownership Interest Equivalents used to
purchase such Investment at their fair market value at the time of purchase;
provided that any such Ownership Interests or Ownership Interest Equivalents
which are convertible into the Parent’s common stock shall be valued at the
price at which they could be exchanged into the Parent’s common stock assuming
such exchange occurred on the date of acquiring such Investment.

     “Land” for any Owned Hospitality Property means the real property upon
which the Owned Hospitality Property is located, together with all rights, title
and interests appurtenant to such real property, including without limitation
all rights, title and interests to (a) all strips and gores within or adjoining
such property, (b) the streets, roads, sidewalks, alleys, and ways adjacent
thereto, (c) all of the tenements, hereditaments, easements, reciprocal easement
agreements, rights-of-way and other rights, privileges and appurtenances
thereunto belonging or in any way pertaining thereto, (d) all reversions and
remainders, (e) all air space rights, and all water, sewer and wastewater
rights, (e) all mineral, oil, gas, hydrocarbon substances and other rights to
produce or share in the production of anything related to such property, and
(f) all other appurtenances appurtenant to such property, including without
limitation, any now or hereafter belonging or in anywise appertaining thereto.

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     “Legal Requirement” means any law, statute, ordinance, decree, requirement,
order, judgment, rule, regulation (or official interpretation of any of the
foregoing) of, and the terms of any license or permit issued by, any
Governmental Authority.

     “Lenders” means the lenders listed on Schedule 1.01(a) and each Eligible
Assignee that shall become a party to this Agreement pursuant to Section 10.06,
and “Lender” means any such Person.

     “Leverage Ratio” means the ratio on any date of (a) the Parent’s Total
Indebtedness on such date to (b) the Parent’s Adjusted EBITDA for the Rolling
Period immediately preceding such date.

     “Lien” means any mortgage, deed of trust, lien, pledge, charge, security
interest, encumbrance or other type of preferential arrangement to secure or
provide for the payment of any obligation of any Person, whether arising by
contract, operation of law or otherwise (including, without limitation, the
interest of a vendor or lessor under any conditional sale agreement, Capital
Lease or other title retention agreement).

     “Liquid Investments” means:

       (a) direct obligations of, or obligations the principal of and interest
on which are unconditionally guaranteed by, the United States;

       (b) (i) negotiable or nonnegotiable certificates of deposit, time
deposits, or other similar banking arrangements maturing within 180 days from
the date of acquisition thereof (“bank debt securities”), issued by (A) any
Senior Lender with a Senior Revolving Commitment under the Senior Credit
Facility or (B) any other bank or trust company which has a combined capital
surplus and undivided profit of not less than $250,000,000 or the Dollar
Equivalent thereof, if at the time of deposit or purchase, such bank debt
securities are rated not less than “A” (or the then equivalent) by the rating
service of S&P or of Moody’s, and (ii) commercial paper issued by (A) any Senior
Lender with a Senior Revolving Commitment under the Senior Credit Facility or
(B) any other Person if at the time of purchase such commercial paper is rated
not less than “A-2” (or the then equivalent) by the rating service of S&P or not
less than “P-2” (or the then equivalent) by the rating service of Moody’s, or
upon the discontinuance of both of such services, such other nationally
recognized rating service or services, as the case may be, as shall be selected
by the Borrower with the consent of the Senior Administrative Agent, or, if the
Senior Credit Facility has been repaid in full and has been terminated, the
Administrative Agent,

       (c) repurchase agreements relating to investments described in clauses
(a) and (b) above with a market value at least equal to the consideration paid
in connection therewith, with any Person who regularly engages in the business
of entering into repurchase agreements and has a combined capital surplus and
undivided profit of not less than $250,000,000 or the Dollar Equivalent thereof,
if at the time of entering into

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  such agreement the debt securities of such Person are rated not less than “A”
(or the then equivalent) by the rating service of S&P or of Moody’s; and

       (d) such other instruments (within the meaning of New York’s Uniform
Commercial Code) as the Borrower may request and the Senior Administrative Agent
or, if the Senior Credit Facility has been repaid in full and has been
terminated, the Administrative Agent, may approve in writing, which approval
will not be unreasonably withheld.

     “Loan” means the aggregate Advance made to the Borrower pursuant to this
Agreement.

     “Loan Amount” means, at any given time, the outstanding principal balance
of the Loan.

     “Loan Portion” shall mean the Base Rate Portion and the Eurodollar Portion
of the Loan.

     “Mandatorily Redeemable Stock” means, with respect to any Person, any
Ownership Interest of such Person which by the terms of such Ownership Interest
(or by the terms of any security into which it is convertible or for which it is
exchangeable or exercisable), upon the happening of any event or otherwise
(a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation
or otherwise (other than an Ownership Interest which is redeemable solely in
exchange for common stock or Ownership Interests Equivalent thereof), (b) is
convertible into or exchangeable or exercisable for Indebtedness or Mandatorily
Redeemable Stock, or (c) is redeemable at the option of the holder thereof, in
whole or in part (other than an Ownership Interest which is redeemable solely in
exchange for common stock or Ownership Interests Equivalent thereof), in each
case on or prior to the Maturity Date, as such date may be extended pursuant to
the terms of Section 2.05(b).

     “Margin Stock” shall have the meaning provided in Regulation U.

     “Material Adverse Change” shall mean a material adverse change (a) in the
business, property, condition (financial or otherwise), prospects or results of
operations of the Borrower, the Parent and the other Guarantors taken as a
whole, in each case since September 30, 2002, or (b) in the validity or
enforceability of this Agreement or any of the other Credit Documents or the
rights or remedies of the Administrative Agent or the Lenders hereunder or
thereunder.

     “Material Subsidiary” means any Subsidiary of the Parent having assets or
annual revenues in excess of $1,000,000.

     “Material Unconsolidated Entity” means any Unconsolidated Entity of the
Parent for which the Investment Amount is in excess of $1,000,000.

     “Maturity Date” means January 31, 2006, as the same shall be extended
pursuant to Section 2.05.

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     “Maximum Rate” means the maximum nonusurious interest rate under applicable
law.

     “MHC” means MeriStar Hospitality Corporation, a Maryland corporation.

     “MHC Indebtedness” means the Subordinate Indebtedness owed by the Borrower
and the Borrower’s Subsidiaries to MHC OP pursuant to that certain Revolving
Credit Agreement dated as of August 3, 1998, as amended by an amendment dated as
of February 27, 2000, a second amendment dated as of January      , 2002, a
third amendment dated as of July 31, 2002, and a fourth amendment dated as of
August 15, 2002, each between Borrower and MHC OP.

     “MHC OP” means MeriStar Hospitality Operating Partnership, L.P., a Delaware
limited partnership.

     “MHRI” means MeriStar Hotels & Resorts, Inc., a Delaware corporation prior
to the Merger with IHC.

     “Minimum Net Worth” means, with respect to the Parent, at any time, the sum
of $75,000,000 plus (a) 75% of the aggregate net proceeds or value received by
the Parent or any of its Subsidiaries after the date of this Agreement in
connection with any Capitalization Events taken as a whole, including without
limitation in connection with the acquisition of any Investment or other
Property, plus (b) to the extent a positive number, 75% of the aggregate Net
Income of the Parent and the Parent’s Subsidiaries for the period from and
including July 1, 2002 to the date of testing, on a Consolidated basis, minus
(c) an amount equal to the lesser of (i) $25,000,000 or (ii) the sum of (A) the
Parent’s write-off under GAAP of the Parent’s or the Parent’s Subsidiary’s
Investment with respect to the St. Louis Radisson Hotel up to a maximum
write-off of $11,500,000 and (B) the aggregate amount of all of the Parent’s
write-offs under GAAP of intangible assets that occur after March 31, 2002.

     “Moody’s” means Moody’s Investor Service Inc.

     “Multiemployer Plan” means a “multiemployer plan” as defined in Section
4001(a)(3) of ERISA to which the Parent, the Borrower or any member of the
Controlled Group is making or accruing an obligation to make contributions.

     “Net Cash Proceeds” means (a) the aggregate cash proceeds (including,
without limitation, insurance proceeds) received by the Parent, the Borrower or
any of their respective Subsidiaries (as applicable) in connection with any
Indebtedness incurred on or after the Closing Date (excluding the Obligations
and the incurrence of other Indebtedness which does not trigger a Repayment
Event), Asset Disposition or Capitalization Event, minus (b) the reasonable
expenses of such Person in connection with such Indebtedness incurrence, Asset
Disposition or Capitalization Event, minus (c) to the extent that assets
disposed of in connection with an Asset Disposition secure Indebtedness
permitted pursuant to the provisions of Section 6.02(a), the amount of such
Indebtedness which is required to be repaid pursuant to the terms of such
Indebtedness in connection with such Asset Disposition, as reasonably evidenced
by the Borrower to the Senior Administrative Agent and the Administrative Agent
minus (d) any amounts required to be paid under the Senior Credit Facility.

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     “Net Income” means, for any Person or Hospitality Property, as applicable,
for any period for which such amount is being determined, the net income or net
loss of such Person (on a Consolidated basis) or Hospitality Property, as
applicable, after taxes, as determined on a Consolidated basis in accordance
with GAAP, excluding, however, (a) non-recurring expenses incurred in connection
with the Merger and (b) extraordinary items, including but not limited to
(i) any net gain or loss during such period arising from the sale, exchange, or
other disposition of capital assets (such term to include all fixed assets and
all securities) other than in the ordinary course of business, and (ii) any
write-up or write-down of assets.

     “Net Worth” means, for any Person, stockholders equity of such Person
determined in accordance with GAAP.

     “Non-Defaulting Lender” shall mean and include each Lender other than a
Defaulting Lender.

     “Non-Replaced Property” means any Property owned by the Borrower or any of
the Guarantors which (a) was used in the ownership, operation or management of
any Hospitality Property, (b) has been conveyed, exchanged, transferred, or
assigned by the Borrower or a Guarantor to a Person other than the Borrower or a
Guarantor, (c) has not been replaced in the ordinary course of business by
Property of equal or better quality, and (d) was not included within the
definition of “Investments”.

     “Note” means a promissory note of the Borrower payable to the order of any
Lender in substantially the form of the attached Exhibit A, evidencing
indebtedness of the Borrower to such Lender, and “Notes” means all such Notes.

     “Obligations” means all payment, performance and other obligations,
liabilities and indebtedness of every nature of Borrower and the Guarantors from
time to time owing to Administrative Agent or any Lender in connection with this
Agreement, the Note, or any other Credit Documents.

     “Owned Hospitality Property” means a Hospitality Property owned by the
Parent or one of the Parent’s Subsidiaries or leased by the Parent or one of the
Parent’s Subsidiaries pursuant to a Ground Lease.

     “Owned Hospitality Property Investments” shall mean Investments in Owned
Hospitality Properties or in Persons for which Hospitality Properties are
substantially all of such Person’s Property.

     “Ownership Interests” means shares of stock, other securities, partnership
interests, member interests, beneficial interests or other interests in any
Person, whether voting or non-voting, and participations or other equivalents
(regardless of how designated) of or in a Person.

     “Ownership Interest Equivalents” means all securities (other than Ownership
Interests) convertible into or exchangeable for Ownership Interests and all
warrants, options or other rights to purchase or subscribe for any Ownership
Interests, whether or not presently convertible, exchangeable or exercisable.

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     “Parent” means Interstate Hotels & Resorts, Inc. (fka MeriStar Hotels &
Resorts, Inc.), a Delaware corporation, the surviving entity of the merger of
Interstate Hotels and Resorts, Inc., into MHRI pursuant to the Merger.

     “PBGC” means the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.

     “Permitted Asset Disposition” means an Asset Disposition which (a) occurs
at a time in which no Default has occurred and is continuing, and (b) would not
cause a Default to occur upon the consummation of such Asset Disposition.

     “Permitted Encumbrances” means the Liens permitted to exist pursuant to
Section 6.01.

     “Permitted Hazardous Substances” means (a) Hazardous Substances, petroleum
and petroleum products which are (i) used in the ordinary course of business and
in typical quantities for a Hospitality Property and (ii) generated, used and
disposed of in accordance with all Legal Requirements and good industry
practice, and (b) non-friable asbestos to the extent (i) that no applicable
Legal Requirements require removal of such asbestos from the Hospitality
Property and (ii) such asbestos is encapsulated in accordance with all
applicable Legal Requirements and such reasonable operations and maintenance
program as may be required by the Senior Administrative Agent or, if the Senior
Credit Facility has been repaid in full and has been terminated, the
Administrative Agent.

     “Permitted Housing Agreements” means leases of Units as part of the
Permitted Housing Business (a) by the Borrower and its Subsidiaries to third
parties and (b) by third parties to the Borrower and its Subsidiaries.

     “Permitted Housing Business” means the business of leasing Units,
subleasing such Units to another Person and providing ancillary services to such
Person in connection with such Units; provided that without the written consent
of the Senior Required Lenders or, if the Senior Credit Facility has been repaid
in full and has been terminated, the Administrative Agent, the Borrower and the
Borrower’s Subsidiaries shall not enter into new leases of Units or extend the
term of existing leases of Units where the leases cause the Borrower to violate
any of the Permitted Housing Business Leasing Guidelines.

     “Permitted Housing Business Leasing Guidelines” means the requirement that
the Borrower and the Borrower’s Subsidiaries not lease Units or renew the lease
of Units if, upon consummation of such lease or renewal, (a) the aggregate
number of Units which have a term which exceeds 1 year is equal to or greater
than 700, (b) the aggregate number of Units which have a term which exceeds 5
years is equal to or greater than 400, and (c) the Borrower’s and the Borrower’s
Subsidiaries’ aggregate lease obligations for the leases of Units outside the
United States, Canada and Western Europe exceeds 15% of the Borrower’s and the
Borrower’s Subsidiaries’ aggregate lease obligations for Units without the
consent of the Senior Required Lenders or, if the Senior Credit Facility has
been repaid in full and has been terminated, the Administrative Agent.

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     “Permitted Housing Company” means a Person which is primarily in the
Permitted Housing Business and which is approved by the Senior Required Lenders
or, if the Senior Credit Facility has been repaid in full and has been
terminated, the Administrative Agent.

     “Permitted New Investments” means the following Investments made after the
Closing Date:

       (a) (i) to acquire Permitted Property Agreements and (ii) in Persons for
which Permitted Property Agreements are substantially all of such Person’s
Property, which Persons become Subsidiaries of the Borrower;

       (b) (i) in Persons for which Permitted Property Agreements are
substantially all of such Person’s Property, which Persons do not become
Subsidiaries of the Borrower, (ii) to acquire Permitted Housing Agreements, and
(iii) in Persons which are primarily in the Permitted Housing Business; provided
that the aggregate amount of such Investments, excluding any such Investments
existing as of the Effective Date, shall not exceed $15,000,000;

       (c) in Owned Hospitality Property Investments; provided that (i) the
aggregate Investment Amount in Owned Hospitality Property Investments, excluding
the Investment Amount in Existing Owned Hospitality Property Investments, shall
not at any time exceed $50,000,000, (ii) at least five (5) Business Days prior
to acquiring an Owned Hospitality Property the Borrower shall have delivered to
the Senior Administrative Agent or, if the Senior Credit Facility has been
repaid in full and has been terminated, the Administrative Agent, the Property
Information for such Owned Hospitality Property (except that for the Pittsburgh
Property the Borrower need only provide (A) current Property Information for
those items set forth in paragraphs (b), (c), (e) and (g) of the definition of
“Property Information” and (B) the most recent, but not current Property
Information for those items set forth in paragraphs (a), (d), and (f) of the
definition of “Property Information”), (iii) any Ground Lease for an Owned
Hospitality Property must be financable in the reasonable opinion of the Senior
Administrative Agent or, if the Senior Credit Facility has been repaid in full
and has been terminated, the Administrative Agent, and (iv) no more than twenty
percent (20%) of the hotel rooms in the applicable Hospitality Property may be
subject to a timeshare regime;

       (d) Investments in Persons who provide services to, among other
Hospitality Properties, Hospitality Properties for which Borrower or one of
Borrower’s Subsidiaries has or will enter into a Permitted Property Agreement
and/or Owned Hospitality Property Investments; provided that the aggregate
amount of all such Investments in Persons which provide such services shall not
exceed $10,000,000; and

       (e) Investments which (i) are not otherwise covered by one of the
preceding clauses (a)-(d) and (ii) are in Persons whose primary business is not
the Hospitality Management Business; provided that the aggregate amount of the
Investments in such Persons shall not exceed $5,000,000.

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For purposes of this definition, if in connection with the acquisition of
Permitted Property Agreements an Owned Hospitality Property Investment is also
made or acquired and the Borrower’s direct or indirect ownership in such Owned
Hospitality Property Investment exceeds twenty percent (20%) of the total
ownership in such Owned Hospitality Property Investment, then a reasonable
portion of the Investment Amount for such Investment shall be attributed to such
Owned Hospitality Property Investment and counted toward the $50,000,000
limitation set forth in the foregoing clause (c). If such ownership percentage
is equal to or less than twenty percent (20%), then such Investment shall be
deemed to have been made under the foregoing clause (a) or (b), as applicable.
Notwithstanding anything in this definition to the contrary, Permitted New
Investments shall not include any Capital Expenditures made pursuant to the
provisions of Section 6.06(e) or Restricted Payments. Notwithstanding anything
in this Agreement to the contrary, (a) the Borrower shall have until the date
thirty (30) days following the Closing Date to deliver the Environmental Report
for the Pittsburgh Property, and (b) if such Environmental Report discloses any
material Release, Environmental Claim, or violation of Environmental Law, then
the Borrower shall cause such Release, Environmental Claim, or violation of
Environmental Law to be remediated in accordance with the provisions of the
Environmental Indemnity within thirty (30) days of delivery of such
Environmental Report.

     “Permitted Non-Recourse Unconsolidated Entity Indebtedness” means
Indebtedness of an Unconsolidated Entity which (i) is incurred by an
Unconsolidated Entity to acquire a Hospitality Property or Hospitality
Management Business or refinance such acquisition Indebtedness, and (ii) is
non-recourse to the Parent, the Borrower and their respective Subsidiaries
except for the Interests in such Unconsolidated Entity.

     “Permitted Other Indebtedness” means:

       (a) the Senior Credit Facility;

       (b) Indebtedness which (i) is incurred by a Permitted Other Subsidiary to
(A) acquire an Owned Hospitality Property Investment which qualifies as a
Permitted New Investment, (B) refinance Indebtedness (including Permitted Owned
Hospitality Property Obligations) incurred to acquire a Permitted New
Investment, or (C) finance the Pittsburgh Property, where the Indebtedness
incurred does not exceed 70% of the Investment Amount for such Permitted New
Investment or Pittsburgh Property, as applicable, and (ii) is non-recourse to
the Parent, the Borrower and their respective subsidiaries except for the
Property of or the Ownership Interests in such Permitted Other Subsidiary and
customary recourse “carve-outs”;

       (c) Additional Designated Senior Indebtedness;

       (d) Intentionally Deleted;

       (e) Indebtedness of Interstate/Dallas GP, LLC and Interstate/Dallas
Partnership, LP (the “Dallas Pledgors”) to FelCor in the amount of approximately
$4,170,000, secured by the interests of the Dallas Pledgors in FCH/IHC Hotels,
LP.;

       (f) Permitted Non-Recourse Unconsolidated Entity Indebtedness;

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       (g) Approved Inter-Company Indebtedness; and

       (h) minority Ownership Interests reflected on the Parent’s financial
statements as Indebtedness.

     “Permitted Other Subsidiary” means a Subsidiary of the Parent which (a) is
a single-purpose Person, (b) has never been a Guarantor under the Senior Credit
Facility or a Guarantor, nor owned any Collateral, and (c) only owns Permitted
New Investments acquired in whole or in part with the proceeds of Indebtedness
excluding the proceeds of the Senior Credit Facility and other Property
ancillary to such Permitted New Investments.

     “Permitted Owned Hospitality Property Obligations” means Senior Obligations
incurred in making an Investment in an Owned Hospitality Property or the
Ownership Interests in a Subsidiary which owns an Owned Hospitality Property
which pursuant to the terms of this Agreement is required to be Collateral under
the Senior Credit Facility; provided that with respect to the Pittsburgh
Property the “Permitted Owned Hospitality Property Obligations” shall be deemed
to be the greater of (a) $5,000,000 and (b) the Net Cash Proceeds from the
incurrence of the Permitted Other Indebtedness to be secured by the Pittsburgh
Property.

     “Permitted Property Agreements” means (a) Existing Management Agreements
and Existing Participating Leases and (b) Approved Management Agreements or
Approved Participating Leases related to Hospitality Properties entered into
after the Closing Date.

     “Person” means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association, limited
liability company, joint venture or other entity, or a government or any
political subdivision or agency thereof or any trustee, receiver, custodian or
similar official.

     “Pittsburgh Property” means the Pittsburgh, Pennsylvania Airport Residence
Inn (Park Lane).

     “Plan” means an employee benefit plan (other than a Multiemployer Plan)
maintained for employees of the Parent, the Borrower or any member of the
Controlled Group and covered by Title IV of ERISA or subject to the minimum
funding standards under Section 412 of the Code.

     “Prescribed Forms” means such duly executed form(s) or statement(s), and in
such number of copies, which may, from time to time, be prescribed by law and
which, pursuant to applicable provisions of (a) an income tax treaty between the
United States and the country of residence of the Lender providing the form(s)
or statement(s), (b) the Code, or (c) any applicable rule or regulation under
the Code, permit the Borrower to make payments hereunder for the account of such
Lender free of (or, upon written request of the Borrower specifying the
applicable form, at a reduced rate of) deduction or withholding of income or
similar taxes (except for any deduction or withholding of income or similar
taxes as a result of any change in or in the interpretation of any such treaty,
the Code or any such rule or regulation).

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     “Property” of any Person means any property or assets (whether real,
personal, or mixed, tangible or intangible) of such Person, including without
limitation, the Permitted Property Agreements, the Permitted Housing Agreements,
and all Owned Hospitality Properties.

     “Pro Rata Share” means, at any time with respect to any Lender, the ratio
(expressed as a percentage) of (a) such Lender’s outstanding Commitment to (b)
the outstanding Loan Amount.

     “Register” has the meaning set forth in paragraph (c) of Section 10.06.

     “Regulation U” shall mean Regulation U of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor to all
or a portion thereof. “Reinsurance Contract” means each outstanding reinsurance,
coinsurance and other similar contract of each Insurance Company.

     “Related Fund” means, with respect to any Approved Fund, any other Approved
Fund that invests in commercial loans which is advised or managed by the same
investment advisor as such Approved Fund.

     “Release” shall have the meaning set forth in CERCLA or under any other
Environmental Law.

     “Repayment Event” means the incurrence of any Indebtedness on or after the
Closing Date by the Parent, the Borrower or one of their respective Subsidiaries
(excluding (a) the Obligations, (b) Indebtedness incurred under clause (a) or
clause (b) of the definition of “Permitted Other Indebtedness” which is not
incurred to refinance Permitted Owned Hospitality Property Obligations), a
Capitalization Event, or an Asset Disposition or the payment to the Borrower or
one of the Borrower’s Subsidiaries of a termination payment under a Permitted
Property Agreement or a Permitted Housing Agreement after the Closing Date,
except for Asset Dispositions or any such termination payments for which the
aggregate Net Cash Proceeds do not exceed $1,000,000 in any calendar year.

     “Reportable Event” means any of the events set forth in Section 4043(b) of
ERISA.

     “Required Lenders” means Non-Defaulting Lenders the sum of whose
outstanding Commitments represent at least 51% of the outstanding Loan Amount.

     “Response” shall have the meaning set forth in CERCLA or under any other
Environmental Law.

     “Responsible Officer” means the Chief Executive Officer, President,
Executive Vice President, Chief Financial Officer or Treasurer of any Person,
or, with respect to a partnership, the general partner of such Person.

     “Restricted Payment” means (a) any direct or indirect payment, prepayment,
redemption, purchase, or deposit of funds or Property for the payment (including
any sinking fund or defeasance), prepayment, redemption or purchase of any
Indebtedness not permitted by this Agreement, the Senior Credit Facility or any
Subordinate Indebtedness, and (b) the making by

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any Person of any dividends or other distributions (in cash, property, or
otherwise) on, or payment for the purchase, redemption or other acquisition of,
any Ownership Interests of such Person, other than dividends or distributions
payable in such Person’s Ownership Interests.

     “Rolling Period” means, as of any date, the four Fiscal Quarters ending
immediately preceding such date.

     “S&P” means Standard & Poor’s Ratings Group, a division of McGraw-Hill,
Inc., or any successor thereof.

     “SAP” means, with respect to each Insurance Company, the statutory
accounting practices prescribed or permitted by the insurance commissioner (or
other similar Governmental Authority) in the jurisdiction of such Insurance
Company for the preparation of Insurance Annual Statements and other financial
reports by insurance companies of the same type in effect from time to time,
applied in a manner consistent with those used in preparing the SAP Financial
Statements.

     “Second Amendment to the Senior Credit Facility” means that certain Second
Amendment to Senior Secured Credit Agreement dated as of January 10, 2003
between Borrower, the Senior Administrative Agent and the Senior Lenders.

     “SAP Financial Statements” means the audited annual and unaudited quarterly
convention statements filed with the domiciliary state insurance departments of
each Insurance Company.

     “Senior Administrative Agent” means the Administrative Agent as defined in
the Senior Credit Facility.

     “Senior Commitment” means the Commitment as defined in the Senior Credit
Facility.

     “Senior Credit Facility” mean that certain Senior Secured Credit Agreement
dated as of July 31, 2002, in the maximum amount of $113,000,000.00, as amended
by that certain First Amendment to Senior Secured Credit Agreement dated as of
August 15, 2002, among Meristar H & R Operating Company, L.P. as the Borrower,
Société Générale as Administrative Agent, SG Cowen Securities Corporation as
Joint Lead Arranger and Book Runner, Salomon Smith Barney Inc. as Joint Lead
Arranger, Book Runner, and Co-Syndication Agent, Lehman Brothers, Inc. as Joint
Lead Arranger, Book Runner, and Co-Syndication Agent, Credit Lyonnais New York
Branch as Documentation Agent, and various other lenders, and as further amended
by the Second Amendment to Senior Credit Facility, as the same may be further
amended, modified, supplemented, restated, replaced or refinanced from time to
time.

     “Senior Indebtedness” means Total Indebtedness minus the sum of (a)
Subordinate Indebtedness and (b) the outstanding principal balance of this
Agreement.

     “Senior Interest Coverage Ratio” means, as of the end of any Rolling
Period, a ratio of (a) the Parent’s Adjusted EBITDA to (b) the Parent’s Interest
Expense pertaining to Senior Indebtedness, for such Rolling Period.

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     “Senior Leverage Ratio” means the ratio on any date of (a) the Parent’s
Senior Indebtedness on such date to (b) the Parent’s Adjusted EBITDA for the
Rolling Period immediately preceding such date.

     “Senior Lenders” mean the Lenders as defined in the Senior Credit Facility.

     “Senior Obligations” means the Obligations as defined in the Senior Credit
Facility.

     “Senior Security Documents” means the Security Documents as defined in the
Senior Credit Facility.

     “Senior Required Lenders” means the Required Lenders as defined in the
Senior Credit Facility.

     “Senior Revolving Maturity Date” means the Revolving Maturity Date as
defined in the Senior Credit Facility.

     “SG Cowen “ means SG Cowen Securities Corporation.

     “Specified Acquirer” means the Person listed on Schedule 1.01(i).

     “Specified Change of Control Event” means that Specified Acquirer or a
Subsidiary or parent of Specified Acquirer either (a) directly or indirectly
acquires beneficial ownership (within the meaning of Rule 13d-3 under the
Securities Exchange Act of 1934, as amended) of securities possessing more than
fifty percent (50%) of the total combined voting power of MHC’s outstanding
securities or (b) otherwise merges with MHC.

     “SSB” means Salomon Smith Barney Inc.

     “Status Reset Date” means the date following the end of any Fiscal Quarter
which is the earlier of (a) the 50th day following the end of such Fiscal
Quarter and (b) the date which is 5 days following the delivery of the reports
and other documents required by (i) the provisions of Section 5.05(a) for such
Fiscal Quarter (except for the Fiscal Quarter which ends on the date the Fiscal
Year ends) or (ii) the provisions of Section 5.05(b) for the Fiscal Quarter
which ends on the date the Fiscal Year ends; provided that the documents
contemplated by the preceding clause (ii) shall never be deemed delivered prior
to the 40th day following the end of the Fiscal Year.

     “Subordinate Indebtedness” means Indebtedness of the Borrower, the Parent
and their respective Subsidiaries which (a) shall not mature, become payable or
require the payment of any principal amount thereof (or any amount in lieu
thereof) or be mandatorily redeemable, pursuant to a sinking fund or otherwise
redeemable at the option of the holder thereof, in any case in whole or in part,
before the date that is 91 days after the Maturity Date and (b) shall be junior
and subordinate to the Senior Obligations and the Obligations and subject to an
intercreditor agreement or subordination provisions which is acceptable to the
Senior Administrative Agent and the Administrative Agent, respectively.

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     “Subsidiary” means, with respect to any Person, at any date, any other
Person in whom such Person holds an Investment and whose financial results would
be consolidated under GAAP with the financial results of such Person if such
statements were prepared as of such date.

     “Telerate” means the Telerate System.

     “Termination Event” means (a) the occurrence of a Reportable Event with
respect to a Plan, as described in Section 4043 of ERISA and the regulations
issued thereunder (other than a Reportable Event not subject to the provision
for 30-day notice to the PBGC under such regulations), (b) the withdrawal of the
Borrower or any of the Controlled Group from a Plan during a plan year in which
it was a “substantial employer” as defined in Section 4001(a)(2) of ERISA,
(c) the giving of a notice of intent to terminate a Plan under Section 4041(c)
of ERISA, (d) the institution of proceedings to terminate a Plan by the PBGC, or
(e) any other event or condition which constitutes grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any
Plan.

     “Total Indebtedness” of any Person means the sum of the following (without
duplication): (a) all Indebtedness of such Person and its Subsidiaries on a
Consolidated basis, plus (b) such Person’s and such Person’s Subsidiaries’
Unconsolidated Entity Percentage of Indebtedness of such Person’s and such
Person’s Subsidiaries’ Unconsolidated Entities, plus (c) to the extent not
already included in the calculation of either of the preceding clauses (a) or
(b), the aggregate amount of letters of credit for which such Person or any of
its Subsidiaries would have a direct or contingent obligation to reimburse the
issuers of such letters of credit upon a drawing under such letters of credit,
minus (d) to the extent included in the calculation of either of the preceding
clauses (a), (b), or (c), the amount of any minority interests.

     “Unconsolidated Entity” means, with respect to any Person, at any date, any
other Person in whom such Person holds an Investment and whose financial results
would not be consolidated under GAAP with the financial results of such Person
if such statements were prepared as of such date.

     “Unconsolidated Entity Percentage” means, for any Person, with respect to a
Person’s Unconsolidated Entity, the percentage of such Unconsolidated Entity’s
Indebtedness for which recourse may be made against such Person.

     “Units” means apartment or condominium units.

     “Wyndham” means Wyndham International, Inc.

     Section 1.02 Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including” and the words “to” and “until” each
means “to but excluding”.

     Section 1.03 Accounting Terms; Changes in GAAP.

       (a) All accounting terms not specifically defined in this Agreement shall
be construed in accordance with GAAP applied on a consistent basis.

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       (b) Unless otherwise indicated, all financial statements of the Borrower
and the Parent, all calculations for compliance with covenants in this
Agreement, and all calculations of any amounts to be calculated under the
definitions in Section 1.01 shall be based upon the Consolidated accounts of the
Borrower, the Parent and their respective Subsidiaries (as applicable) in
accordance with GAAP.

       (c) If any changes in accounting principles after March 31, 2002 required
by GAAP or the Financial Accounting Standards Board of the American Institute of
Certified Public Accountants or similar agencies results in a change in the
method of calculation of, or affects the results of such calculation of, any of
the financial covenants, standards or terms found in this Agreement, then the
parties shall enter into and diligently pursue negotiations in order to amend
such financial covenants, standards or terms so as to equitably reflect such
change, with the desired result that the criteria for evaluating the financial
condition of Borrower and its Subsidiaries (determined on a Consolidated basis)
shall be the same after such change as if such change had not been made.

     Section 1.04 Intentionally Deleted.

     Section 1.05 Miscellaneous. Article, Section, Schedule and Exhibit
references are to Articles and Sections, of and Schedules and Exhibits, to this
Agreement, unless otherwise specified.

ARTICLE II
THE ADVANCE

     Section 2.01 The Advance.

       (a) Advance. Subject to the terms and conditions set forth in this
Agreement, each Lender severally agrees to make an Advance to the Borrower on
the Closing Date, in an aggregate amount equal to such Lender’s Commitment, so
that the entire Facility Amount shall be advanced on the Closing Date. No amount
of such Advance or of the Loan that has been repaid may be reborrowed.

     Section 2.02 Notes.

       (a) Notes. The indebtedness of the Borrower to each Lender resulting from
the Advance of the Loan Amount on the Closing Date shall be evidenced by a Note
of the Borrower payable to the order of such Lender in substantially the form of
Exhibit A.

     Section 2.03 Fees.

       (a) Administrative Agent’s Fees. The Borrower agrees to pay to the
Administrative Agent for its benefit the fees set forth in the Administrative
Agent Fee Letter as and when the same are due and payable pursuant to the terms
of the Administrative Agent Fee Letter.

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       (b) Other Fees. The Borrower agrees to pay to Lehman Brothers Inc. for
its benefit the fees set forth in the Fee Letter as and when the same are due
and payable pursuant to the terms of the Fee Letter.

     Section 2.04 Intentionally Deleted.

     Section 2.05 Repayment of Advances on Maturity Date; Extension.

       (a) The Borrower shall repay the outstanding principal amount of the Loan
on the Maturity Date.

       (b) If Borrower has extended the original Senior Revolving Maturity Date
pursuant to Section 2.05(b) of the Senior Credit Facility, then the initial
Maturity Date shall be automatically extended, whether or not a Default or an
Event of Default exists and is continuing, without any further action on the
part of the Borrower, Administrative Agent, Senior Administrative Agent or any
other party, for an additional one-year period to January 31, 2007. Borrower
shall have no right, and the Lenders shall have no obligation to extend the
Maturity Date in connection with any extension of the maturity date under any
Additional Designated Senior Indebtedness or any other Senior Indebtedness
except the Senior Credit Facility.

     Section 2.06 Interest, Late Payment Fee. Subject to the terms of the
Intercreditor Agreement, the Borrower shall pay interest on the unpaid principal
amount of the Loan made by each Lender from the date of the Advance until such
principal amount shall be paid in full, at the following rates per annum:

       (a) Base Rate Portions. If any Loan Portion is a Base Rate Portion, a
rate per annum (computed on the actual number of days elapsed, including the
first day and excluding the last, based on a 365 day year) equal at all times to
the lesser of (i) the Base Rate in effect from time to time plus the Applicable
Margin and (ii) the Maximum Rate, payable in arrears on the first Business Day
of each calendar month and on the date such Base Rate Portion shall be paid in
full, provided that during the continuance of an Event of Default, Base Rate
Portions shall bear interest at a rate per annum equal at all times to the
lesser of (i) the rate required to be paid on such Base Rate Portion had such
Event of Default not occurred plus three percent (3%) and (ii) the Maximum Rate.

       (b) Eurodollar Portion. If any Loan Portion is a Eurodollar Portion, a
rate per annum (computed on the actual number of days elapsed, including the
first day and excluding the last, based on a 360 day year) equal at all times
during the Interest Period for such Eurodollar Portion to the lesser of (i) the
Eurodollar Rate for such Eurodollar Portion for such Interest Period plus the
Applicable Margin and (ii) the Maximum Rate, payable in arrears on the first
Business Day of each calendar month, and on the date such Eurodollar Portion
shall be paid in full, provided that during the continuance of an Event of
Default, Eurodollar Portions shall bear interest at a rate per annum equal at
all times to the lesser of (i) the rate required to be paid on such Advance had
such Event of Default not occurred plus three percent (3%) and (ii) the Maximum
Rate.

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       (c) Usury Recapture. In the event the rate of interest chargeable under
this Agreement or the Notes at any time is greater than the Maximum Rate, the
unpaid principal amount of the Notes shall bear interest at the Maximum Rate
until the total amount of interest paid or accrued on the Notes equals the
amount of interest which would have been paid or accrued on the Notes if the
stated rates of interest set forth in this Agreement had at all times been in
effect. In the event, upon payment in full of the Notes, the total amount of
interest paid or accrued under the terms of this Agreement and the Notes is less
than the total amount of interest which would have been paid or accrued if the
rates of interest set forth in this Agreement had, at all times, been in effect,
then the Borrower shall, to the extent permitted by applicable law, pay the
Administrative Agent for the account of the Lenders an amount equal to the
difference between (i) the lesser of (A) the amount of interest which would have
been charged on the Notes if the Maximum Rate had, at all times, been in effect
and (B) the amount of interest which would have accrued on the Notes if the
rates of interest set forth in this Agreement had at all times been in effect
and (ii) the amount of interest actually paid or accrued under this Agreement on
the Notes. In the event the Lenders ever receive, collect or apply as interest
any sum in excess of the Maximum Rate, such excess amount shall, to the extent
permitted by law, be applied to the reduction of the principal balance of the
Notes, and if no such principal is then outstanding, such excess or part thereof
remaining shall be paid to the Borrower.

       (d) Other Amounts Overdue. If any amount payable under this Agreement
other than the Advances is not paid when due and payable, including without
limitation, accrued interest and fees, then such overdue amount shall accrue
interest hereon due and payable on demand at a rate per annum equal to the
Adjusted Base Rate plus three percent (3%), from the date such amount became due
until the date such amount is paid in full.

       (e) Late Payment Fee. Subject to the provisions of Section 10.11, if any
interest payable under this Agreement is not paid when due and payable (after
taking into account any applicable grace period), then the Borrower will pay to
the Lenders contemporaneously with the payment of such past due interest a late
payment fee equal to an amount equal to the product of (i) such overdue interest
times (ii) four percent (4%).

     Section 2.07 Prepayments.

       (a) Right to Prepay. The Borrower shall have no right to prepay any
principal amount of any Advance except as provided in this Section 2.07.

       (b) Optional Prepayments. After the repayment in full and termination of
the Senior Credit Facility, or prior thereto, to the extent permitted under the
terms of the Intercreditor Agreement or if Senior Administrative Agent consents,
in writing, the Borrower may elect to prepay all or any part of the Loan, after
giving by 12:00 a.m. (New York, New York time) (i) in the case of Eurodollar
Portions, at least three (3) Business Days’, or (ii) in case of Base Rate
Portions, at least one (1) Business Day’s prior written notice to the
Administrative Agent, stating the proposed date and aggregate principal

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  amount of such prepayment, and if applicable, the relevant Interest Period for
the Loan Portion to be prepaid. If any such notice is given, the Borrower shall
prepay the Loan in an amount equal to the amount specified in such notice, and
shall also pay accrued interest to the date of such prepayment on the principal
amount prepaid and amounts, if any, required to be paid pursuant to Section 2.08
as a result of such prepayment being made on such date; provided, however, that
each partial prepayment shall be in an aggregate principal amount not less than
$500,000 and in integral multiples of $100,000.

       (c) Mandatory Prepayments.

       (i) Repayment Event. Upon the occurrence of any Repayment Event, the
Borrower shall prepay a portion of the Loan on the Business Day the Net Cash
Proceeds from such Repayment Event are received by the Borrower or the Parent,
as applicable, in an amount equal to the lesser of (A) the amount of the
outstanding principal balance of the Loan on such Business Day and (B) 100% of
the Net Cash Proceeds of such Repayment Event. Such prepayments shall be applied
(A) first, to interest as provided in Section 2.07(c)(ii), and (B) second, to
the outstanding principal balance.

       (ii) Accrued Interest. Each prepayment pursuant to this Section 2.07(c)
shall be accompanied by accrued interest on the amount prepaid to the date of
such prepayment and amounts, if any, required to be paid pursuant to
Section 2.08 as a result of such prepayment being made on such date.

       (d) Effect of Notice. All notices given pursuant to this Section 2.07
shall be irrevocable and binding upon the Borrower.

     Section 2.08 Breakage Costs. If (a) any payment of principal of any
Eurodollar Portion is made other than on the last day of the Interest Period for
such Eurodollar Portion as a result of any payment pursuant to Section 2.07 or
the acceleration of the maturity of the Notes pursuant to Article VIII or
otherwise; or (b) the Borrower fails to make a principal or interest payment
with respect to any Eurodollar Portion on the date such payment is due and
payable, the Borrower shall, within 10 days of any written demand sent by any
Lender to the Borrower through the Administrative Agent, pay to the
Administrative Agent for the account of such Lender any amounts (without
duplication of any other amounts payable in respect of breakage costs) required
to compensate such Lender for any additional losses, out-of-pocket costs or
expenses which it may reasonably incur as a result of such payment or
nonpayment, including, without limitation, any loss, cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by
any Lender to fund or maintain such Advance.

     Section 2.09 Increased Costs.

       (a) Eurodollar Portions. If, due to either (i) the introduction of or any
change in or in the interpretation of any law or regulation (except with respect
to Taxes or Other Taxes) following the date of this Agreement or (ii) the
compliance with any guideline or request from any central bank or other
Governmental Authority (whether or not having

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  the force of law) not complied with prior to the date of this Agreement, there
shall be any increase in the cost to any Lender of agreeing to make or making,
funding or maintaining Eurodollar Portions (including, without limitation,
(A) additional interest to compensate such Lender for reserve costs actually
incurred by such Lender associated with Eurocurrency Liabilities, such
additional interest to be calculated by subtracting (1) the Eurodollar Rate for
such Lender’s Pro Rata Share of the Eurodollar Portion from (2) the rate
obtained by dividing such applicable interest rate for such Eurodollar Portion
(excluding the Applicable Margin) by a percentage equal to one minus the
applicable Eurodollar Rate Reserve Percentage of such Lender for such Interest
Period), then the Borrower shall from time to time, upon demand by such Lender
(with a copy of such demand to the Administrative Agent), immediately pay to the
Administrative Agent for the account of such Lender additional amounts (without
duplication of any other amounts payable in respect of increased costs)
sufficient to compensate such Lender for such increased cost; provided, however,
that, before making any such demand, each Lender agrees to use commercially
reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Applicable Lending Office if the making
of such a designation would avoid the need for, or reduce the amount of, such
increased cost and would not, in the reasonable judgment of such Lender, be
otherwise disadvantageous to such Lender (except that no Lender shall be
required to redesignate its Applicable Lending Office to avoid the incurrence of
increased costs associated with additional interest required to be paid by the
Borrowers to any Lender in connection with reserve costs attributable to
Eurocurrency Liabilities). A certificate as to the amount of such increased cost
and detailing the calculation of such cost submitted to the Borrower and the
Administrative Agent by such Lender at the time such Lender demands payment
under this Section shall be conclusive and binding for all purposes, absent
manifest error.

       (b) Capital Adequacy. If any Lender determines in good faith that
compliance with any law or regulation or any guideline or request from any
central bank or other Governmental Authority (whether or not having the force of
law) implemented or effective after the date of this Agreement affects or would
affect the amount of capital required or expected to be maintained by such
Lender and that the amount of such capital is increased by or based upon the
existence of such Lender’s Pro Rata Share of the Loan, then, upon 30 days prior
written notice by such Lender (with a copy of any such demand to the
Administrative Agent), the Borrower shall immediately pay to the Administrative
Agent for the account of such Lender, from time to time as specified by such
Lender, additional amounts (without duplication of any other amounts payable in
respect of increased costs) sufficient to compensate such Lender, in light of
such circumstances, to the extent that such Lender reasonably determines such
increase in capital to be allocable to the existence of such Lender’s commitment
to lend under this Agreement. A certificate as to such amounts and detailing the
calculation of such amounts submitted to the Borrower and the Administrative
Agent by such Lender shall be conclusive and binding for all purposes, absent
manifest error.

     Section 2.10 Payments and Computations.

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       (a) Payment Procedures. Except if otherwise set forth herein, the
Borrower shall make each payment under this Agreement and under the Notes not
later than 12:00 a.m. (New York, New York time) on the day when due to the
Administrative Agent at the location referred to in the Notes (or such other
location as the Administrative Agent shall designate in writing to the Borrower)
in same day funds without set-off, deduction or counterclaim. Except for amounts
payable solely to the Administrative Agent, or a specific Lender pursuant to
Section 2.06(b), 2.08, 2.09, 2.11, or 2.12, but after taking into account
payments effected pursuant to Section 10.04, the Administrative Agent will on
the same day cause to be distributed like funds relating to the payment of
principal, interest or fees ratably to the Lenders in accordance with, in the
case of a payment made in respect of a Borrowing, each Lender’s Share, for the
account of their respective Applicable Lending Offices, and like funds relating
to the payment of any other amount payable to any Lender for the account of its
Applicable Lending Office, in each case to be applied in accordance with the
terms of this Agreement.

       (b) Computations. All computations of interest based on the Base Rate
shall be made by the Administrative Agent on the basis of a year of 365 days and
all computations of fees and interest based on the Eurodollar Rate shall be made
by the Administrative Agent on the basis of a year of 360 days, in each case for
the actual number of days (including the first day, but excluding the last day)
occurring in the period for which such interest or fees are payable. Each
determination by the Administrative Agent of an interest rate shall be
conclusive and binding for all purposes, absent manifest error.

       (c) Non-Business Day Payments. Whenever any payment shall be stated to be
due on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or fees, as the case may be;
provided, however, that if such extension would cause payment of interest on or
principal of Eurodollar Portions to be made in the next following calendar
month, such payment shall be made on the next preceding Business Day.

       (d) Administrative Agent Reliance. Unless the Administrative Agent shall
have received written notice from the Borrower prior to the date on which any
payment is due to the Lenders that the Borrower will not make such payment in
full, the Administrative Agent may assume that the Borrower has made such
payment in full to the Administrative Agent on such date and the Administrative
Agent may, in reliance upon such assumption, cause to be distributed to each
Lender on such date an amount equal to the amount then due such Lender. If and
to the extent the Borrower shall not have so made such payment in full to the
Administrative Agent, each Lender shall repay to the Administrative Agent
forthwith on demand such amount distributed to such Lender, together with
interest, for each day from the date such amount is distributed to such Lender
until the date such Lender repays such amount to the Administrative Agent, at
the Federal Funds Rate for each such day.

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       (e) Application of Payments. Unless otherwise specified in Section 2.07
hereof, whenever any payment received by the Administrative Agent under this
Agreement is insufficient to pay in full all amounts then due and payable under
this Agreement and the Notes, such payment shall be distributed and applied by
the Administrative Agent and the Lenders in the following order: first, to the
payment of fees and expenses due and payable to the Administrative Agent under
and in connection with this Agreement or any other Credit Document; second, to
the payment of all expenses due and payable under Section 2.11(c), ratably among
the Lenders in accordance with the aggregate amount of such payments owed to
each such Lender; third, to the payment of all other fees due and payable under
Section 2.03; and fourth, to the payment of the interest accrued on and the
principal amount of all of the other Notes and regardless of whether any such
amount is then due and payable, ratably among the Lenders in accordance with the
aggregate accrued interest plus the aggregate principal amount owed to such
Lender.

       (f) Register. The Administrative Agent shall record in the Register the
Commitment and the Advances from time to time of each Lender and each repayment
or prepayment in respect to the principal amount of such Advances of each
Lender. Any such recordation shall be conclusive and binding on the Borrower and
each Lender, absent manifest error; provided however, that failure to make any
such recordation, or any error in such recordation, shall not affect the
Borrower’s obligations hereunder in respect of such Advances.

     Section 2.11 Taxes.

       (a) No Deduction for Certain Taxes. Any and all payments by the Borrower
shall be made, in accordance with Section 2.10, free and clear of and without
deduction for any and all present or future taxes, levies, imposts, deductions,
charges or withholdings, and all liabilities with respect thereto, excluding,
(i) in the case of each Lender and the Administrative Agent, taxes imposed on
its income, and franchise taxes imposed on it, by the jurisdiction under the
laws of which such Lender or the Administrative Agent (as the case may be) is
organized or carries on business (other than as a result of a connection arising
primarily from the Lender or the Administrative Agent (as the case may be)
having executed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement) or any political subdivision or taxing
authority of such jurisdictions (all such nonexcluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities being hereinafter referred to
as “Taxes”) and, (ii) in the case of each Lender, Taxes by the jurisdiction of
such Lender’s Applicable Lending Office or any political subdivision of such
jurisdiction. If the Borrower shall be required by law to deduct any Taxes from
or in respect of any sum payable to any Lender or the Administrative Agent,
(i) the sum payable shall be increased as may be necessary so that, after making
all required deductions (including deductions applicable to additional sums
payable under this Section 2.11), such Lender or the Administrative Agent (as
the case may be) receives an amount equal to the sum it would have received had
no such deductions been made; provided, however, that if the Borrower’s
obligation to deduct or withhold Taxes is caused solely by such Lender’s or the
Administrative Agent’s failure to

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  provide the forms described in paragraph (e) of this Section 2.11 and such
Lender or the Administrative Agent could have provided such forms or if such
Lender or the Administrative Agent (as the case may be) fails to comply with
Section 2.11(g), no such increase shall be required; (ii) the Borrower shall
make such deductions; and (iii) the Borrower shall pay the full amount deducted
to the relevant taxation authority or other authority in accordance with
applicable Legal Requirements.

       (b) Other Taxes. In addition, the Borrower agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes, charges
or similar levies which arise from any payment made or from the execution,
delivery or registration of, or otherwise with respect to, this Agreement, the
Notes, or the other Credit Documents (hereinafter referred to as “Other Taxes”).

       (c) Indemnification. The Borrower will indemnify each Lender and the
Administrative Agent for the full amount of Taxes or Other Taxes (including,
without limitation, any Taxes or Other Taxes imposed by any Governmental
Authority on amounts payable under this Section 2.11) paid by such Lender or the
Administrative Agent (as the case may be) and any liability (including interest
and expenses) arising therefrom or with respect thereto, whether or not such
Taxes or Other Taxes were correctly or legally asserted. Each payment required
to be made by the Borrower in respect of this indemnification shall be made to
the Administrative Agent for the benefit of any party claiming such
indemnification within 30 days from the date the Borrower receives written
demand detailing the calculation of such amounts therefor from the
Administrative Agent on behalf of itself as Administrative Agent, or any such
Lender. If any Lender, or the Administrative Agent, receives a refund, offset,
credit or deduction in respect of any Taxes or Other Taxes paid by the Borrower
under this paragraph (c), such Lender, or the Administrative Agent, as the case
may be, shall promptly pay to the Borrower the Borrower’s share of such refund,
offset, credit or deduction, received by or credited to the Lender, or the
Administrative Agent, as the case may be, (reduced by any Taxes imposed on the
Lender, or the Administrative Agent, as the case may be, by reason of the
receipt, accrual or payment of such refund, offset, credit or deduction).

       (d) Evidence of Tax Payments. The Borrower will pay prior to delinquency
all Taxes and Other Taxes payable in respect of any payment. Within 30 days
after the date of any payment of Taxes, the Borrower will furnish to the
Administrative Agent, at its address referred to in Section 10.02, the original
or a certified copy of a receipt evidencing payment of such Taxes or Other
Taxes.

       (e) Foreign Lender Withholding Exemption. Each Lender that is not
incorporated under the laws of the United States of America or a state thereof
agrees that it will deliver to the Borrower and the Administrative Agent on the
date of this Agreement or upon the effectiveness of any Assignment and
Acceptance two duly completed copies of the Prescribed Forms, as the case may
be, certifying in each case that such Lender is entitled to receive payments
under this Agreement and the Notes payable to it, without deduction or
withholding of any United States federal income taxes. Each Lender which
delivers to the Borrower and the Administrative Agent a Prescribed Form

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  further undertakes to deliver to the Borrower and the Administrative Agent on
or before the date that any such form expires or becomes obsolete or after the
occurrence of any event requiring a change in the most recent form previously
delivered by it to the Borrower and the Administrative Agent two further copies
of a replacement Prescribed Form. If an event (including without limitation any
change in treaty, law or regulation) has occurred prior to the date on which any
delivery required by the preceding sentence would otherwise be required which
renders all such forms inapplicable or which would prevent any Lender from duly
completing and delivering any such letter or form with respect to it and such
Lender advises the Borrower and the Administrative Agent that it is not capable
of receiving payments without any deduction or withholding of United States
federal income tax, and in the case of a Prescribed Form establishing an
exemption from, or a reduced rate of, United States backup withholding tax, such
Lender shall not be required to deliver such forms. The Borrower shall withhold
tax at the rate and in the manner required by the laws of the United States with
respect to payments made to a Lender failing to timely provide the Prescribed
Forms.

       (f) Nothing in this Section 2.11 shall require any Lender or the
Administrative Agent to make available any of its tax returns (or any other
information that it deems to be confidential or proprietary, in its sole
discretion).

       (g) If any Lender claims any additional amounts payable pursuant to this
Section 2.11, then such Lender (as the case may be) shall use its reasonable
efforts (consistent with its internal policy and legal and regulatory
restrictions) to change the jurisdiction of its Applicable Lending Office if the
making of such a change would avoid the need for, or reduce the amount of, any
such additional amounts that would be payable or may thereafter accrue and would
not be otherwise disadvantageous to such Lender.

     Section 2.12 Illegality. If any Lender shall notify the Administrative
Agent and the Borrower that the introduction of or any change in or in the
interpretation of any Legal Requirement makes it unlawful, or that any central
bank or other Governmental Authority asserts that it is unlawful for such Lender
or its Applicable Lending Office to perform its obligations under this Agreement
or to maintain Lender’s Pro Rata Share of any Eurodollar Portion of such Lender
then outstanding hereunder, then, notwithstanding anything herein to the
contrary, if demanded by such Lender by notice to the Borrower and the
Administrative Agent no later than 12:00 a.m. (New York, New York time), (a) if
not prohibited by Legal Requirement to maintain such Eurodollar Portion for the
duration of the Interest Period, on the last day of such Interest Period or (b)
if prohibited by Legal Requirement to maintain such Eurodollar Portion for the
duration of the Interest Period, on the second Business Day following its
receipt of such notice from such Lender, the affected Eurodollar Portion of such
Lender then outstanding shall automatically become a Base Rate Portion and
Borrower shall pay the amount, if any, required to be paid pursuant to Section
2.08 as a result of such conversion being made on such date. Each Lender agrees
to use commercially reasonable efforts (consistent with its internal policies
and legal and regulatory restrictions) to designate a different Applicable
Lending Office if the making of such designation would avoid the effect of this
paragraph and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender.

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     Section 2.13 Eurodollar Rate Unascertainable.

       (a) In the event that Administrative Agent shall have determined (which
determination shall be conclusive and binding upon Borrower absent manifest
error) that by reason of circumstances affecting the interbank eurodollar
market, adequate and reasonable means do not exist for ascertaining the
Eurodollar Rate, then Administrative Agent shall forthwith give notice by
telephone of such determination, to Borrower at least one (1) Business Day prior
to the last day of the related Interest Period, with a written confirmation of
such determination promptly thereafter. If such notice is given, the Loan shall
convert to a Base Rate Portion and shall bear interest at the Base Rate plus the
Applicable Margin beginning on the first day of the next succeeding Interest
Period. If, pursuant to the terms of this Section 2.13, the Loan is a Base Rate
Portion and Administrative Agent shall determine (which determination shall be
conclusive and binding upon Borrower absent manifest error) that the event(s) or
circumstance(s) which resulted in such conversion shall no longer be applicable,
Administrative Agent shall give notice thereof to Borrower by telephone of such
determination, confirmed in writing, to Borrower as soon as reasonably
practical, but in no event later than one (1) Business Day prior to the last day
of the then current Interest Period. If such notice is given, the Loan shall
convert to a Eurodollar Portion and shall bear interest at the Eurodollar Rate
plus the Applicable Margin beginning on the first day of the next succeeding
Interest Period.

     Section 2.14 Determination of Leverage Ratio and Senior Leverage Ratio. In
addition to the determination of the Leverage Ratio and the Senior Leverage
Ratio in a Compliance Certificate, the Leverage Ratio and the Senior Leverage
Ratio shall be determined by the Administrative Agent, as follows:

       (a) Adjustments. Following each making, acquisition or disposition by the
Parent or its Subsidiary of an Investment or any Non-Replaced Property with an
Investment Amount in excess of $5,000,000 or the incurrence by the Parent or its
Subsidiary of additional Indebtedness (excluding any Obligations) in excess of
$5,000,000 (an “Adjustment Event”), and the Administrative Agent’s receipt of an
Adjustment Report with respect thereto, the Administrative Agent shall adjust
the Leverage Ratio and the Senior Leverage Ratio accordingly.

       (b) Notice of Leverage Ratio and Senior Leverage Ratio Change. Promptly
following any date the Leverage Ratio and the Senior Leverage Ratio is
determined in accordance with the preceding paragraph, the Administrative Agent
shall give notice to the Lenders and the Borrower of the new Leverage Ratio and
Senior Leverage Ratio.

     Section 2.15 Lender Replacement.

       (a) Right to Replace. The Borrower shall have the right to replace each
Lender either (i) affected by a condition under Section 2.09, 2.11, or 2.12 for
more than 60 days or (ii) that refuses to consent to a proposed change, waiver,
discharge or termination with respect to this Agreement which has been approved
by 51% or more of the Non-Defaulting Lenders entitled to vote on such proposed
change, waiver, discharge

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  or termination, as (and to the extent) provided in Section 10.01 (each such
affected or non-consenting Lender, an “Affected Lender”) in accordance with the
procedures in this Section 2.15 and provided that no reduction of the total
Commitments occurs as a result thereof.

       (b) Replacement Allocation.

       (i) Upon the occurrence of any condition permitting the replacement of a
Lender, the Administrative Agent in its sole discretion shall have the right to
reallocate the amount of the Commitments of the Affected Lenders, including
without limitation to Persons which are not already party to this Agreement but
which qualify as Eligible Assignees, which election shall be made by written
notice within 30 days after the date such condition occurs.

       (ii) If the aggregate amount of the reallocated Commitments is less than
the Commitments of the Affected Lenders, (A) the respective Commitments of the
Lenders which have received such reallocated Commitments shall be increased by
the respective amounts of their proposed reallocations, and (B) the Borrower
shall have the right to add additional Lenders which are Eligible Assignees to
this Agreement to replace such Affected Lenders, which additional Lenders would
have aggregate Commitments no greater than those of the Affected Lenders minus
the amounts of the Commitments already reallocated.

       (iii) Notwithstanding any provision in this Section 2.15 to the contrary,
no Lender except for an Affected Lender may have such Lender’s Commitment
increased or decreased pursuant to the provisions of this Section 2.15 without
such Lender’s written consent.

       (c) Procedure. Any assumptions of Commitments pursuant to this
Section 2.15 shall be (i) made by the purchasing Lender or Eligible Assignee and
the selling Lender entering into an Assignment and Assumption and by following
the procedures in Section 10.06 for adding a Lender. In connection with the
reallocation of the Commitments of any Lender pursuant to the foregoing
paragraph (b), each Lender with a reallocated Commitment shall purchase from the
Affected Lenders at par such Lender’s Pro Rata Share, of the outstanding Loan
Amount.

     Section 2.16 Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off or otherwise) on account of the Advances made by it in excess of its Pro
Rata Share, as applicable, of payments or collateral on account of the Advances
obtained by all the Lenders, such Lender shall notify the Administrative Agent
and forthwith purchase from the other Lenders such participations in the
Advances, as applicable, made by them as shall be necessary to cause such
purchasing Lender to share the excess payment or benefits of such collateral or
proceeds ratably in accordance with the requirements of this Agreement with each
of them; provided, however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each Lender
shall be rescinded and such Lender shall repay to the purchasing Lender the

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purchase price to the extent of such Lender’s ratable share (according to the
proportion of (a) the amount of the participation sold by such Lender to the
purchasing Lender as a result of such excess payment to (b) the total amount of
such excess payment) of such recovery, together with an amount equal to such
Lender’s ratable share (according to the proportion of (a) the amount of such
Lender’s required repayment to the purchasing Lender to (b) the total amount of
all such required repayments to the purchasing Lender) of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount
so recovered. The Borrower agrees that any Lender so purchasing a participation
from another Lender pursuant to this Section 2.16 may, to the fullest extent
permitted by Legal Requirement, unless and until rescinded as provided above,
exercise all its rights of payment (including the right of set-off) with respect
to such participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation.

     Section 2.17 Agreement to Subordinate. Administrative Agent and the Lenders
agree that Indebtedness for Borrowings under this Agreement represented by the
Notes shall be subordinated in right of payment, to the extent and in the manner
provided in the Intercreditor Agreement, to the prior payment in full of the
Senior Credit Facility. The Administrative Agent and the Lenders further agree
that in connection with any replacement or refinancing of the Senior Credit
Facility or any Additional Designated Senior Indebtedness which is permitted by
this Agreement, it shall enter into a new intercreditor or subordination
agreement on terms substantially similar to the Intercreditor Agreement.

ARTICLE III
CONDITIONS OF LENDING

     Section 3.01 Conditions Precedent to the Initial Advance. The obligation of
each Lender to make the initial Advance of the Loan Amount hereunder is subject
to the following conditions precedent being satisfied on or prior to January 10,
2003:

       (a) Documentation. The Administrative Agent shall have received
counterparts of this Agreement executed by the Borrower and the Lenders, and the
following duly executed by all the parties thereto, in form and substance
satisfactory to the Administrative Agent, and, with respect to this Agreement,
all Guaranties and Environmental Indemnities, in sufficient copies for each
Lender:

       (i) the Notes, and the Guaranties;

       (ii) The Intercreditor Agreement.

       (iii) a certificate from a Responsible Officer of the Parent on behalf of
the Borrower dated as of the Closing Date stating that as of the Closing Date
(A) all representations and warranties of the Borrower set forth in this
Agreement and the Credit Documents are true and correct in all material
respects; (B) no Default has occurred and is continuing; (C) the conditions in
this Section 3.01 have been met or waived in writing; and (D) to the best of the
Borrower’s knowledge there

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  are no claims, defenses, counterclaims or offsets against the Lenders under
the Credit Documents;

       (iv) a certificate of the Secretary or an Assistant Secretary of the
Parent on behalf of the Borrower and each corporation that is either a Guarantor
or a general partner or manager of a Guarantor dated as of the date of this
Agreement certifying as of the Closing Date (A) the names and true signatures of
officers or authorized representatives of the Parent and such other Persons
authorized to sign the Credit Documents to which such Person is a party in the
capacity therein indicated, (B) resolutions of the Board of Directors or the
members of the Parent and such other Persons with respect to the transactions
herein contemplated, and (C) a true and correct copy of the Intercompany
Agreement;

       (v) (A) one or more favorable written opinions of DeCampo, Diamond & Ash,
special counsel for the Borrower, the Parent, and their Subsidiaries, in a form
reasonably acceptable to the Administrative Agent, in each case dated as of the
Closing Date and with such changes as the Administrative Agent may approve, and
(B) such other legal opinions as either of the Administrative Agent shall
reasonably request, in each case dated as of the Closing Date and with such
changes as the Administrative Agent may approve, provided that in the
Administrative Agent’s discretion certain legal opinions related to Guarantors
which are domiciled outside the United States may not be required;

       (vi) a Compliance Certificate dated as of the Closing Date reflecting for
the financial tests covered therein the financial performance for the Borrower
for the Rolling Period ended September 30, 2002;

       (vii) the Second Amendment to the Senior Credit Facility;

       (viii) the Inter-Company Indebtedness Subordination Agreement with
respect to Approved Inter-Company Indebtedness; and

       (ix) such other documents, governmental certificates, agreements, lien
searches as the Administrative Agent may reasonably request.

       (b) Prepayment of MHC Indebtedness. Borrower shall have delivered
evidence satisfactory to the Administrative Agent that (i) the proceeds of the
Loan to be advanced are, together with the sums permitted to be paid by Borrower
pursuant to the Second Amendment to the Senior Credit Facility, sufficient to
prepay the MHC Indebtedness in full and that the MHC indebtedness shall be
terminated upon such prepayment and (ii) Borrower has paid such sums described
in the preceding clause (i) to MHC OP.

       (c) Representations and Warranties. The representations and warranties
contained in Article IV hereof, the Guaranties shall be true and correct in all
material respects.

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       (d) Certain Payments. The Borrower shall have paid the fees required to
be paid as of the execution of this Credit Agreement pursuant to (i) the Fee
Letter and (ii) the Administrative Agent Fee Letter.

       (e) Compliance with Senior Credit Facility. Borrower shall have delivered
evidence reasonably satisfactory to the Administrative Agent that all of the
conditions precedent to the effectiveness of the Second Amendment to the Senior
Credit Facility (including, without limitation, the payment of all required
fees) have been complied with.

ARTICLE IV
REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants as follows:

     Section 4.01 Existence; Qualification; Partners; Subsidiaries.

       (a) The Borrower is a limited partnership duly organized, validly
existing, and in good standing under the laws of Delaware and in good standing
and qualified to do business in each jurisdiction where its ownership or lease
of property or conduct of its business requires such qualification, except where
the failure to so qualify would not cause a Material Adverse Change to the
Borrower.

       (b) The Parent is a corporation duly organized, validly existing, and in
good standing under the laws of Delaware and in good standing and qualified to
do business in each jurisdiction where its ownership or lease of property or
conduct of its business requires such qualification, except where the failure to
so qualify would not cause a Material Adverse Change to the Parent.

       (c) The Parent is duly listed on the New York Stock Exchange, Inc. and
the Parent has timely filed all reports required to be filed by it with the New
York Stock Exchange, Inc. and the Securities and Exchange Commission.

       (d) The Parent owns approximately 97% of the partnership interest in the
Borrower and is the sole general partner of the Borrower.

       (e) The entire authorized capital stock of the Parent consists of
(i) 50,000,000 shares of Parent common stock of which approximately 20,127,000
shares of Parent common stock are duly and validly issued and outstanding, fully
paid and nonassessable as of December 31, 2002 and (ii) 1,000,000 shares of
Parent preferred stock of which no shares are issued or outstanding.

       (f) Each Subsidiary of the Borrower is a limited partnership, general
partnership or limited liability company duly organized, validly existing, and
in good standing under the laws of its jurisdiction of formation and in good
standing and qualified to do business in each jurisdiction where conduct of its
business requires such qualification, except where the failure to so qualify
would not cause a Material Adverse Change to such Subsidiary. Except for the
Beverage Entities and the Dissolving

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  Subsidiaries, the Parent has no Subsidiaries on the date of this Agreement
other than the Borrower and the Subsidiaries listed on the attached
Schedule 4.01, and Schedule 4.01 lists the jurisdiction of formation, and the
address of the principal office of each such Subsidiary existing on the date of
this Agreement. As of the date of this Agreement, the Parent or the Borrower
owns, directly or indirectly, at least the percentage interests in each such
Subsidiary listed on the attached Schedule 4.01.

       (g) Except for those Material Subsidiaries domiciled in a jurisdiction
outside the United States, each of the Borrower, the Parent and each of the
Material Subsidiaries is domiciled in the State of Delaware.

       (h) There has been no material change in any of the organizational
documents of Borrower, Parent or any Guarantor since July 31, 2002.

     Section 4.02 Partnership and Corporate Power. The execution, delivery, and
performance by the Borrower and each Guarantor of the Credit Documents to which
it is a party and the consummation of the transactions contemplated hereby and
thereby (a) are within such Persons’ partnership, limited liability company and
corporate powers, as applicable, (b) have been duly authorized by all necessary
corporate, limited liability company and partnership action, as applicable,
(c) do not contravene (i) such Person’s certificate or articles, as the case may
be, of incorporation or by-laws, operating agreement or partnership agreement,
as applicable, or (ii) any law or any contractual restriction binding on or
affecting any such Person, the contravention of which could reasonably be
expected to cause a Material Adverse Change, and (d) will not result in or
require the creation or imposition of any Lien prohibited by this Agreement. At
the time of each Borrowing, such Borrowing and the use of the proceeds of such
Borrowing will be within the Borrower’s partnership powers, will have been duly
authorized by all necessary partnership action, (a) will not contravene (i) the
Borrower’s partnership agreement or (ii) any law or any contractual restriction
binding on or affecting the Borrower (including without limitation, the Senior
Credit Facility), the contravention of which could reasonably be expected to
cause a Material Adverse Change, and (b) will not result in or require the
creation or imposition of any Lien prohibited by this Agreement.

     Section 4.03 Authorization and Approvals. No authorization or approval or
other action by, and no notice to or filing with, any Governmental Authority is
required for the due execution, delivery and performance by the Borrower or any
Guarantor of the Credit Documents to which it is a party or the consummation of
the transactions contemplated thereby. At the time of each Borrowing, no
authorization or approval or other action by, and no notice to or filing with,
any Governmental Authority will be required for such Borrowing or the use of the
proceeds of such Borrowing the absence of which could reasonably be expected to
cause a Material Adverse Change.

     Section 4.04 Enforceable Obligations. This Agreement, the Notes, and the
other Credit Documents to which the Borrower is a party have been duly executed
and delivered by the Borrower; each Guaranty and the other Credit Documents to
which each Guarantor and the Parent is a party have been duly executed and
delivered by such Guarantor. Each Credit Document is the legal, valid, and
binding obligation of the Borrower, the Parent, and each

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Guarantor which is a party to it enforceable against the Borrower, the Parent,
and each such Guarantor in accordance with its terms, except as such
enforceability may be limited by any applicable bankruptcy, insolvency,
reorganization, moratorium, or similar law affecting creditors’ rights generally
and by general principles of equity (whether considered in proceeding at law or
in equity).

     Section 4.05 Financial Statements. The respective Consolidated balance
sheets, statements of operations, shareholders’ equity and cash flows of Parent
and its Subsidiaries contained in its Financial Statements, and the
corresponding financial statements for the Parent and its Subsidiaries, fairly
present the financial condition in all material respects and reflects the
Indebtedness of such Person and such Person’s Subsidiaries on a Consolidated
basis as of the dates indicated in the Financial Statements and the respective
results of the operations for the periods indicated, and such balance sheets and
statements were prepared in accordance with GAAP, subject to year-end
adjustments. Since the date of such statements, no Material Adverse Change has
occurred.

     Section 4.06 True and Complete Disclosure. No representation, warranty, or
other statement made by the Borrower (or on behalf of the Borrower) in this
Agreement or any other Credit Document contains any untrue statement of a
material fact or omits to state any material fact necessary to make the
statements contained therein not misleading in light of the circumstances in
which they were made as of the date of this Agreement. There is no fact known to
any Responsible Officer of the Borrower or the Parent on the date of this
Agreement that has not been disclosed to the Administrative Agent which could
reasonably be expected to cause a Material Adverse Change. All projections,
estimates, and financial information furnished by the Borrower and/or the Parent
or on behalf of the Borrower were prepared on the basis of assumptions, data,
information, tests, or conditions believed to be reasonable at the time such
projections, estimates, and pro forma financial information were furnished. No
representation, warranty or other statement made in Parent’s latest 10K, 10Q or
annual report or the Registration Statements contains any untrue statement of
material fact or omits to state any material fact necessary to make the
statements contained therein not misleading in light of the circumstances in
which they were made as of the date same were made. Borrower and/or Parent has
made all filings required by the Exchange Act.

     Section 4.07 Litigation. Except as set forth in the attached Schedule 4.07,
there is no pending or, to the best knowledge of the Borrower, threatened
investigation, action or proceeding affecting the Borrower or the Parent or any
of their respective Subsidiaries by or before any court, Governmental Authority
or arbitrator either (a) in which in Borrower’s good faith judgment the
anticipated loss is over $500,000 (provided that with respect to the giving of
this representation after the date of this Agreement, the representation shall
only be deemed to apply to those matters for which Administrative Agent would
have been entitled to notice under Section 5.05(k)) or (b) which in Borrower’s
good faith judgment would result in criminal penalties against the Parent, the
Borrower or their respective Subsidiaries which could reasonably be expected to
cause a Material Adverse Change.

     Section 4.08 Use of Proceeds.

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       (a) Advances. The proceeds of the Advance shall be used by the Borrower
for the repayment of the MHC Indebtedness on the Closing Date.

       (b) Regulations. No proceeds of the Loan will be used to purchase or
carry any Margin Stock or be used in violation of Regulations T, U or X of the
Federal Reserve Board, as the same is from time to time in effect, and all
official rulings and interpretations thereunder or thereof. The Borrower is not
engaged in the business of extending credit for the purpose of purchasing or
carrying Margin Stock.

     Section 4.09 Investment Company Act. Neither the Borrower, the Parent nor
any of their respective Subsidiaries is an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

     Section 4.10 Taxes. All federal, state, local and foreign tax returns,
reports and statements required to be filed (after giving effect to any
extension granted in the time for filing) by the Parent, the Borrower, their
respective Subsidiaries, or any member of a Controlled Group have been filed
with the appropriate governmental agencies in all jurisdictions in which such
returns, reports and statements are required to be filed, and where the failure
to file could reasonably be expected to cause a Material Adverse Change, except
where contested in good faith and by appropriate proceedings; and all taxes and
other impositions due and payable (which are material in amount) have been
timely paid prior to the date on which any fine, penalty, interest, late charge
or loss (which are material in amount) may be added thereto for non-payment
thereof except where contested in good faith and by appropriate proceedings. As
of the date of this Agreement, neither the Parent, the Borrower, any of their
respective Subsidiaries nor any member of a Controlled Group has given, or been
requested to give, a waiver of the statute of limitations relating to the
payment of any federal, state, local or foreign taxes or other impositions. None
of the Property owned by the Parent, the Borrower, any of their respective
Subsidiaries or any other member of a Controlled Group is Property which the
Parent, the Borrower, any of their respective Subsidiaries or any member of a
Controlled Group is required to be treated as being owned by any other Person
pursuant to the provisions of Section 168(f)(8) of the Code. Proper and accurate
amounts have been withheld by the Parent, the Borrower, their respective
Subsidiaries and all members of each Controlled Group from their employees for
all periods to comply in all material respects with the tax, social security and
unemployment withholding provisions of applicable federal, state, local and
foreign law. Timely payment of all material sales and use taxes required by
applicable law have been made by the Parent, the Borrower, their respective
Subsidiaries and all other members of each Controlled Group, the failure to
timely pay of which could reasonably be expected to cause a Material Adverse
Change. The amounts shown on all tax returns to be due and payable have been
paid in full or adequate provision therefor is included on the books of the
appropriate members of the applicable Controlled Group.

     Section 4.11 Pension Plans. All Plans are in compliance in all material
respects with all applicable provisions of ERISA. No Termination Event has
occurred with respect to any Plan, and each Plan has complied with and been
administered in all material respects in accordance with applicable provisions
of ERISA and the Code. No “accumulated funding deficiency” (as

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defined in Section 302 of ERISA) has occurred and there has been no excise tax
imposed under Section 4971 of the Code. No Reportable Event has occurred with
respect to any Multiemployer Plan, and to the Borrower’s actual knowledge each
Multiemployer Plan has complied with and been administered in all material
respects with applicable provisions of ERISA and the Code. Neither the Borrower,
nor any member of a Controlled Group has had a complete or partial withdrawal
from any Multiemployer Plan for which there is any material withdrawal
liability. As of the most recent valuation date applicable thereto, neither the
Borrower nor any member of a Controlled Group has received notice that any
Multiemployer Plan is insolvent or in reorganization.

     Section 4.12 Insurance. The Borrower and each of its Subsidiaries carry the
insurance required pursuant to the provisions of Section 5.07.

     Section 4.13 No Burdensome Restrictions; No Defaults.

       (a) Except in connection with Indebtedness which is either (i) permitted
pursuant to the provisions of Section 6.02, or (ii) being repaid with the
proceeds of the initial Borrowing, neither the Borrower nor any of its
Subsidiaries is a party to any indenture, loan or credit agreement. Neither the
Borrower, the Parent nor any of their respective Subsidiaries is a party to any
agreement or instrument or subject to any charter or corporate restriction or
provision of applicable law or governmental regulation which could reasonably be
expected to cause a Material Adverse Change. Neither the Borrower, nor the
Parent, nor their respective Subsidiaries has entered into or suffered to exist
any agreement (other than the Senior Credit Facility, this Agreement and the
Credit Documents and as set forth in the Permitted Property Agreements and the
Permitted Housing Agreements) (i) prohibiting the creation or assumption of any
Lien upon the Properties of the Parent, the Borrower or any of their respective
Subsidiaries (except for Properties of and Ownership Interests in the Permitted
Other Subsidiaries), whether now owned or hereafter acquired, or (ii) requiring
an obligation to be secured if some other obligation is or becomes secured.

       (b) Neither the Borrower, the Parent nor any of their Subsidiaries is in
default under or with respect to any contract or agreement which could
reasonably be expected to cause a Material Adverse Change. Neither the Borrower,
the Parent nor any of their Subsidiaries has received any notice of default
under any material contract or agreement which is continuing and which, if not
cured, could reasonably be expected to cause a Material Adverse Change.

       (c) No Default has occurred and is continuing (or with respect to the
giving of this representation after the date of this Agreement, as otherwise
disclosed to the Administrative Agent in writing after the date of this
Agreement and prior to the date such representation is deemed given).

     Section 4.14 Environmental Condition.

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       (a) Except as disclosed in Schedule 4.14 (or with respect to the giving
of this representation after the date of this Agreement, as otherwise disclosed
to the Administrative Agent in writing after the date of this Agreement and
prior to the date such representation is deemed given), to the knowledge of the
Borrower, the Borrower, the Parent and their respective Subsidiaries (i) have
obtained all Environmental Permits material for the operation of their
respective Properties and the conduct of their respective businesses; (ii) have
been and are in material compliance with all terms and conditions of such
Environmental Permits and with all other requirements of applicable
Environmental Laws; (iii) have not received notice of any violation or alleged
violation of any Environmental Law or Environmental Permit; and (iv) are not
subject to any actual or contingent Environmental Claim.

       (b) Except as disclosed in Schedule 4.14, to the knowledge of Borrower,
no Property which is presently or previously owned or operated by the Borrower,
the Parent or of any of their respective present or former Subsidiaries,
wherever located, (i) has been placed on or proposed to be placed on the
National Priorities List, the Comprehensive Environmental Response Compensation
Liability Information System list, or their state or local analogs, or have been
otherwise investigated, designated, listed, or identified as a potential site
for removal, remediation, cleanup, closure, restoration, reclamation, or other
response activity under any Environmental Laws which could reasonably be
expected to cause a Material Adverse Change; (ii) is subject to a Lien, arising
under or in connection with any Environmental Laws, that attaches to any
revenues or to any Property operated by the Borrower, the Parent or any of their
respective Subsidiaries, wherever located; (iii) has been the site of any
Release, use or storage of Hazardous Substances or Hazardous Wastes from present
or past operations except for Permitted Hazardous Substances, which Permitted
Hazardous Substances have not caused at the site or at any third-party site any
condition that has resulted in or could reasonably be expected to result in the
need for Response or (iv) none of the Improvements are constructed on land
designated by any Governmental Authority having land use jurisdiction as
wetlands.

     Section 4.15 Legal Requirements, Zoning. Except as set forth on Schedule
4.15 attached hereto, the current use and operation of each Property which is
presently owned or operated by the Borrower, the Parent or of any of their
respective Subsidiaries, wherever located, (a) constitutes a legal use under
applicable zoning regulations (as the same may be modified by special use
permits or the granting of variances) and (b) complies in all material respects
with all Legal Requirements, and does not violate in any material respect any
material approvals, material restrictions of record or any material agreement
affecting any such Property (or any portion thereof) except for non-legal use or
non-compliance which in the aggregate would not cause a Material Adverse Change.
The Borrower, the Parent and their respective Subsidiaries possess all
certificates of public convenience, authorizations, permits, licenses, patents,
patent rights or licenses, trademarks, trademark rights, trade names rights and
copyrights (collectively “Permits”) required by Governmental Authority to own or
operate Properties, as applicable, the Properties they own or operate, except
for those Permits that if not obtained would not cause a Material Adverse
Change. The Borrower, the Parent and their respective Subsidiaries own and
operate their business in material compliance with all applicable Legal
Requirements except for non-compliance which in the aggregate would not cause a
Material Adverse Change.

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     Section 4.16 Existing Indebtedness and Interest Rate Agreements; Solvency.

       (a) Except for the Obligations, the only Indebtedness or Interest Rate
Agreements of the Borrower or any of its Subsidiaries existing as of the
Effective Date is the Senior Credit Facility and those set forth on
Schedule 4.16 attached hereto. No “default” or “event of default”, however
defined, has occurred and is continuing under the Senior Credit Facility or any
such Indebtedness or Interest Rate Agreement (or with respect to the giving of
this representation after the date of this Agreement, as otherwise disclosed to
the Administrative Agent in writing after the date of this Agreement and prior
to the date such representation is deemed given).

       (b) To the best of the Borrower’s knowledge, (i) the fair value and
present fair saleable value on a going concern basis of the Property of the
Parent, the Borrower and their respective Subsidiaries, on a Consolidated basis,
exceeds the amount that will be required to pay the probable liabilities of such
Persons, on a Consolidated basis, on their Indebtedness, as such Indebtedness
becomes absolute and matured, (ii) the Parent, the Borrower and their respective
Subsidiaries, on a Consolidated basis, will have sufficient cash flow to enable
them to pay their debts as they mature, and (iii) the Parent, the Borrower and
their respective Subsidiaries, on a Consolidated basis, are able to pay their
Indebtedness as it matures in the normal course of business.

     Section 4.17 Leasing Arrangements. The only material leases for which
either the Borrower or a Guarantor is a lessee are the Existing Participating
Leases and office leases. The Existing Participating Leases are in full force
and effect; no monetary defaults by the Borrower or any Guarantor, or to the
actual knowledge of the Borrower by any other party thereto, exist thereunder;
and no other defaults by the Borrower or any Guarantor, or to the actual
knowledge of the Borrower by any other party thereto, exist thereunder which
could reasonably be expected to cause a Material Adverse Change (or with respect
to the giving of this representation after the date of this Agreement, as
otherwise disclosed to the Administrative Agent in writing after the date of
this Agreement and prior to the date such representation is deemed given).

     Section 4.18 Management Agreements. The only management agreements for
which either the Borrower or a Guarantor is a manager are the Existing
Management Agreements. The Existing Management Agreements are in full force and
effect; no monetary defaults by the Borrower or any Guarantor, or to the actual
knowledge of the Borrower by any other party thereto, exist thereunder; and no
other defaults by the Borrower or any Guarantor, or to the actual knowledge of
the Borrower by any other party thereto, exist thereunder which could reasonably
be expected to cause a Material Adverse Change (or with respect to the giving of
this representation after the date of this Agreement, as otherwise disclosed to
the Administrative Agent in writing after the date of this Agreement and prior
to the date such representation is deemed given). The Existing Management
Agreements with MHC and MHC’s Subsidiaries do not provide for any performance
standards for the year 2002.

     Section 4.19 Intercompany Agreement. The Intercompany Agreement is in full
force and effect and no material defaults by the Borrower or any Guarantor, or
to the actual knowledge of the Borrower by any other party thereto, exist
thereunder (or with respect to the giving of this

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representation after the date of this Agreement, as otherwise disclosed to the
Administrative Agent in writing after the date of this Agreement and prior to
the date such representation is deemed given).

     Section 4.20 Franchise Agreements. The only franchise agreements or license
agreements to which the Borrower or a Guarantor are a party are those certain
agreements disclosed to the Administrative Agent in writing. Any such franchise
and license agreements are in full force and effect and no material defaults by
the Borrower or any Subsidiary exist thereunder (or with respect to the giving
of this representation after the date of this Agreement, as otherwise disclosed
to the Administrative Agent in writing after the date of this Agreement and
prior to the date such representation is deemed given).

     Section 4.21 Owned Hospitality Properties. Except as set forth on
Schedule 4.21 attached hereto, neither the Borrower, the Parent nor of any of
their respective Subsidiaries owns any Owned Hospitality Properties; provided
that such Persons do own Ownership Interests in Unconsolidated Entities which
own Owned Hospitality Properties. None of the Owned Hospitality Properties have
been or are subject to a condemnation proceeding or a casualty which
individually or in the aggregate could cause a Material Adverse Change.

     Section 4.22 Approved Inter-Company Indebtedness. The only inter-company
Indebtedness between the Parent, the Borrower and any of their respective
Subsidiaries is the Approved Inter-Company Indebtedness. The Approved
Inter-Company Indebtedness Loan Documents listed on Schedule 1.01(b) are all of
the documents evidencing or securing the Approved Inter-Company Indebtedness or
executed by the applicable parties in connection with the Approved Inter-Company
Indebtedness. The Borrower has provided the Administrative Agent with a true,
correct and complete copy of the Approved Inter-Company Indebtedness Loan
Documents and such documents have not been amended or modified except as set
forth in Schedule 1.01(b). The outstanding amount of the Approved Inter-Company
Indebtedness as of the date hereof is set forth on Schedule 1.01(b).

     Section 4.23 Insurance Business.

       (a) Insurance Companies, Insurance Licenses and Deposited Securities.
Each Insurance Company as of July 31, 2002, is listed in Schedule 4.23(a).
Schedule 4.23(a) hereto lists, as of July 31, 2002, all of the jurisdictions in
which each Insurance Company holds a Insurance License and is authorized to
transact insurance business as of the Closing Date and the line or lines of
insurance in which each Insurance Company is engaged. No Insurance License held
by any Insurance Company, the loss of which could reasonably be expected to
cause a Material Adverse Change, is the subject of a proceeding for suspension
or revocation. To the knowledge of the Borrower, the Parent or any of their
respective Subsidiaries, there is not a sustainable basis for such suspension or
revocation, and no such suspension or revocation has been threatened by any
Governmental Authority. Each of the Insurance Companies has filed all reports,
statements, documents, registrations, filings or submissions required to be
filed by it with any applicable Governmental Authority, which filings conform in
all material respects to any applicable Legal Requirements, except where the
failure to so file or conform could

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  not, individually or in the aggregate, be reasonably expected to cause a
Material Adverse Change. Schedule 4.23(a) sets forth a true, correct and
complete listing of all securities deposited with state insurance departments
and other Governmental Authority, which deposits have been completed in
accordance with the schedule of deposits set forth in each Insurance Company’s
September 30, 2002 Insurance Annual Statement. There have been no changes in or
additions to the information set forth on Schedule 4.23(c) since July 31, 2002
or September 30, 2002, as applicable, that could reasonably be expected to cause
a Material Adverse Change.

       (b) SAP Financial Statements, Examination Reports and Loss Runs. The
Borrower has previously delivered to the Administrative Agent for distribution
to each of the Lenders true and complete copies of the SAP Financial Statements
as filed with the domiciliary state insurance departments of each Insurance
Company as of and for the years ended December 31, 2001, 2000 and 1999, prepared
in compliance with GAAP. Each of the SAP Financial Statements fairly presents in
all material respects the results of operations of the applicable Insurance
Company for the period therein set forth, in each case in accordance with SAP.
The schedules included in the SAP Financial Statements, when considered in
relation to the basic statutory financial statements included therein, present
fairly in all material respects the information shown therein. Each of the SAP
Financial Statements was correct in all material respects when filed and did not
omit to state any material facts required to be stated or necessary in order to
make the SAP Financial Statements not misleading.

       (c) Investment Portfolios. The Borrower has previously delivered to the
Administrative Agent for distribution to each of the Lenders true and complete
lists as of December 31, 2001 of all assets held in the investment portfolios of
the Insurance Companies. None of the investments included in such investment
portfolios is in default with respect to the payment of principal, interest or
dividends thereon or is materially impaired. All such investments comply with
all applicable Legal Requirements except for non-compliance which in the
aggregate would not cause a Material Adverse Change. Each Insurance Company owns
assets which qualify as admitted assets under applicable state insurance Legal
Requirements in an amount at least equal to the sum of all of its Insurance
Reserve Liabilities and minimum statutory capital and Insurance Surplus
reflected on the latest SAP Financial Statements.

       (d) Insurance Reserve Liabilities and Adequate Provisions. All Insurance
Reserve Liabilities as established or reflected in the SAP Financial Statements
(i) were determined in accordance with generally accepted actuarial standards
consistently applied, (ii) are fairly stated in accordance with sound actuarial
principles, (iii) are based on actuarial assumptions that are in accordance with
those called for by the relevant Insurance Contract and the related Reinsurance
Contract and (iv) meet in all material respects the requirements of all
applicable insurance Legal Requirements. Adequate provision for such Insurance
Reserve Liabilities has been made (under generally accepted actuarial principles
consistently applied) to cover the total amount of all reasonably anticipated
matured and unmatured benefits, dividends, claims and other liabilities of the
Insurance Companies under all Insurance Contracts and Reinsurance Contracts on
the

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  date of such SAP Financial Statement based on then current information that
forms a reasonable basis for such determination. Each of the Insurance Companies
owns assets that qualify as legal reserve assets under applicable insurance
Legal Requirements in an amount at least equal to all of such Insurance
Company’s Insurance Reserve Liabilities. Adequate provision has been made for
all estimated losses, settlements, costs and expenses from pending suits,
actions and proceedings contemplated by the SAP Financial Statements.

       (e) Insurance Contracts and Reinsurance Contracts. Each outstanding
Insurance Contract issued, reinsured or underwritten by an Insurance Company as
of July 31, 2002 is listed in Schedule 4.23(e), together with the maximum amount
payable by an Insurance Company thereunder. All outstanding Reinsurance
Contracts with respect to such Insurance Contracts as of July 31, 2002 are
listed in Schedule 4.23(e), together with the maximum amount payable by an
Insurance Company thereunder. All Insurance Contracts, Reinsurance Contracts and
any and all marketing materials are, to the extent required under applicable
Legal Requirements, on forms approved by the insurance regulatory authority of
the jurisdiction where issued or filed and have not been objected to by such
authority within the period provided for objection and have been filed or
registered as required with all other applicable Governmental Authorities. As to
premium rates established by each Insurance Company and required to be filed or
approved, the premiums charged comply with the applicable Legal Requirements. In
addition, there is no pending or, to the knowledge of the Borrower, the Parent
or any of their respective Subsidiaries, threatened charge by any insurance
regulatory authority that any of the Insurance Companies has violated, nor any
pending or, to the knowledge of the Borrower, the Parent or any of their
respective Subsidiaries, threatened investigation by any insurance regulatory
authority with respect to possible violations of, any applicable Legal
Requirements where such violations would, individually or in the aggregate,
cause a Material Adverse Change. All Insurance Contracts and Reinsurance
Contracts have been marketed, sold and issued in compliance with all applicable
Legal Requirements, except as could not reasonably be expected to cause a
Material Adverse Change, including, without limitation, in compliance with
(i) all applicable prohibitions against “redlining” or withdrawal of business
lines, (ii) all applicable requirements relating to the disclosure of the nature
of insurance products as policies of insurance and (iii) all applicable
requirements relating to insurance product projections and illustrations. There
have been no changes in or additions to the information set forth in Schedule
4.23(e) that could reasonably be expected to cause Material Adverse Change.

       (f) Payment of Benefits. All benefits payable with respect to each
Insurance Contract by a Insurance Company or, to the knowledge of the Borrower,
the Parent or any of their respective Subsidiaries, by any other person that is
a party to or bound by such Insurance Contract, have in all material respects
been paid in accordance with the terms of such Insurance Contract. All benefits
payable with respect to each Reinsurance Contract, have in all material respects
been paid in accordance with the terms of such Reinsurance Contract.

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       (g) Notice of Likely Defaults. No Insurance Company has received any
written, or to the knowledge of the Borrower, the Parent or any of their
respective Subsidiaries, oral information that would cause it to believe that
the financial condition of any other party to any Insurance Contract or
Reinsurance Contract is so impaired as to be reasonably likely to result in a
default by such party under such contract which could reasonably be expected to
cause a Material Adverse Change.

     Section 4.24 Permitted Housing Business Leasing. Schedule 4.24 sets forth a
true and accurate summary of the Units currently leased by the Parent and the
Parent’s Subsidiaries’ as of July 31, 2002, together with (a) a description of
the market for such Units, (b) the breakdown of whether the term of the
applicable lease of such Units is less than or equal to 1 year, greater than 1
year but less than 5 years, or equal to or greater than 5 years, and (c) the
occupancy level by market for such Units as of the Effective Date. There have
been no changes in or additions to the information set forth in Schedule 4.24
that could reasonably be expected to cause Material Adverse Change.

ARTICLE V
AFFIRMATIVE COVENANTS

     So long as any Note or any amount under any Credit Document shall remain
unpaid, the Borrower agrees to comply with the following covenants.

     Section 5.01 Compliance with Laws. The Borrower will comply, and cause the
Parent and each of its Subsidiaries to comply, in all material respects with all
Legal Requirements.

     Section 5.02 Preservation of Existence; Separateness, Etc.

       (a) The Borrower will preserve and maintain, and cause each of its
Subsidiaries to preserve and maintain, its partnership, limited liability
company or corporate (as applicable) existence, rights, franchises and
privileges in the jurisdiction of its formation, and qualify and remain
qualified, and cause each such Subsidiary to qualify and remain qualified, as a
foreign partnership, corporation or limited liability company, as applicable in
each jurisdiction in which qualification is necessary or desirable in view of
its business and operations or the ownership of its properties, and, in each
case, where failure to qualify or preserve and maintain its rights and
franchises could reasonably be expected to cause a Material Adverse Change.

       (b) The Parent common stock shall at all times be duly listed on the New
York Stock Exchange, Inc. and (ii) the Parent shall timely file all reports
required to be filed by it with the New York Stock Exchange, Inc. and the
Securities and Exchange Commission.

       (c) The Borrower shall cause the Permitted Other Subsidiaries which have
Indebtedness to, (i) maintain financial statements, accounting records and other
corporate records and other documents separate from all non-Permitted Other
Subsidiaries, (ii) maintain their own bank accounts in their own name, separate
from all non-Permitted Other Subsidiaries, (iii) pay their own expenses and
other liabilities from their own assets

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  and incur (or endeavor to incur) obligations to other Persons based solely
upon their own assets and creditworthiness and not upon the creditworthiness of
each other or any other Person, and (iv) file their own tax returns or, if part
of a consolidated group, join in the consolidated tax return of such group as a
separate member thereof.

       (d) The Borrower shall, and shall cause the Permitted Other Subsidiaries
which have Indebtedness to, take all actions necessary to keep such Permitted
Other Subsidiaries, separate from the Borrower and the Borrower’s other
Subsidiaries, including, without limitation, (i) the taking of action under the
direction of the Board of Directors, members or partners, as applicable, of such
Permitted Other Subsidiaries and, if so required by the Certificate of
Incorporation or the Bylaws, operating agreement or partnership agreement, as
applicable, of such Permitted Other Subsidiaries or by any Legal Requirement,
the approval or consent of the stockholders, members or partners, as applicable,
of such Permitted Other Subsidiaries, (ii) the preparation of corporate,
partnership or limited liability company minutes for or other appropriate
evidence of each significant transaction engaged in by such Permitted Other
Subsidiaries, (iii) the observance of separate approval procedures for the
adoption of resolutions by the Board of Directors or consents by the partners,
as applicable, of such Permitted Other Subsidiaries, on the one hand, and of the
Borrower and the Borrower’s other Subsidiaries, on the other hand, and
(iv) preventing the cash, cash equivalents, credit card receipts or other
revenues of the Hospitality Properties owned by such Permitted Other
Subsidiaries or any other assets of such Permitted Other Subsidiaries from being
commingled with the cash, cash equivalents, credit card receipts or other
revenues collected by the Borrower or the Borrower’s other Subsidiaries.

       (e) The Borrower shall take all steps reasonably necessary to avoid
(i) misleading any other Person as to the identity of the entity with which such
Person is transacting business or (ii) implying that the Borrower is, directly
or indirectly, absolutely or contingently, responsible for the Indebtedness or
other obligations of the Permitted Other Subsidiaries or any other Person.

     Section 5.03 Payment of Taxes, Etc. The Borrower will pay and discharge,
and cause each of its Subsidiaries to pay and discharge, before the same shall
become delinquent (a) all taxes, assessments and governmental charges or levies
imposed upon it or upon its income or profits or Property that are material in
amount, prior to the date on which penalties attach thereto and (b) all lawful
claims that are material in amount which, if unpaid, might by Legal Requirement
become a Lien upon its Property; provided, however, that neither the Borrower
nor any such Subsidiary shall be required to pay or discharge any such tax,
assessment, charge, levy, or claim (a) which is being contested in good faith
and by appropriate proceedings, (b) with respect to which reserves in conformity
with GAAP have been provided, (c) such charge or claim does not constitute and
is not secured by any choate Lien on any portion of any Owned Hospitality
Property and no portion of any Owned Hospitality Property is in jeopardy of
being sold, forfeited or lost during or as a result of such contest, (d) neither
the Administrative Agent nor any Lender could become subject to any civil fine
or penalty or criminal fine or penalty, in each case as a result of non-payment
of such charge or claim and (e) such contest does not, and could not reasonably
be expected to, result in a Material Adverse Change.

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     Section 5.04 Visitation Rights; Lender Meeting. Subject to the rights of
the owners of the Hospitality Properties for which there are Permitted Property
Agreements, at any reasonable time and from time to time and so long as any
visit or inspection will not unreasonably interfere with the Borrower’s or any
of its Subsidiary’s operations, upon reasonable notice, the Borrower will permit
the Administrative Agent and any Lender or any of its agents or representatives
thereof, to examine and make copies of and abstracts from the records and books
of account of, and visit and inspect at its reasonable discretion the Properties
owned or operated by the Borrower and any of its Subsidiaries, to discuss the
affairs, finances and accounts of such Persons with any of their respective
officers or directors. Without in any way limiting the foregoing, the Borrower
will, upon the request of the Administrative Agent, participate in a meeting
with the Administrative Agent and the Lenders once during each calendar year to
be held at the Borrower’s office in the District of Columbia or Dallas, Texas
(or such other location as may be agreed to by the Borrower and the
Administrative Agent) at such time as may be agreed to by the Borrower and the
Administrative Agent.

     Section 5.05 Reporting Requirements. The Borrower will furnish to the
Administrative Agent, with respect to those items set forth in clauses (a)-(c)
and (i), and each Lender:

       (a) Quarterly Financials. As soon as available and in any event not later
than 50 days after the end of each Fiscal Quarter of the Parent (except for the
Fiscal Quarter which ends on the date the Fiscal Year ends), the unaudited
Consolidated balance sheets of the Parent and its Subsidiaries as of the end of
such quarter and the related unaudited statements of income, shareholders’
equity and cash flows of the Parent and its Subsidiaries for such Fiscal Quarter
and the period commencing at the end of the previous year and ending with the
end of such Fiscal Quarter, and the corresponding figures as at the end of, and
for, the corresponding periods in the preceding Fiscal Year, all duly certified
with respect to such statements (subject to year-end audit adjustments) by a
Responsible Officer of the Parent as having been prepared in accordance with
GAAP, together with (i) a Compliance Certificate duly executed by a Responsible
Officer of the Parent; provided that the Parent’s Total Indebtedness used to
calculate the Leverage Ratio and the Senior Leverage Ratio in such Compliance
Certificate shall be the Parent’s Total Indebtedness as of the Status Reset Date
during the Fiscal Quarter in which such Compliance Certificate was delivered,
and (ii) a report certified by a Responsible Officer of the Parent setting forth
for each Hospitality Property owned or operated by the Parent or any of its
Subsidiaries as of the end of such Fiscal Quarter the Adjusted EBITDA for such
Hospitality Property for the Rolling Period then ended, both in total and by
Fiscal Quarter for such Rolling Period; provided that for those Hospitality
Properties for which the Parent or any of its Subsidiaries is only a manager,
the Borrower shall only be obligated to use the Borrower’s commercially
reasonable efforts to provide the information required by this clause (ii) and
shall not be obligated to disclose any confidential information.

       (b) Annual Financials. As soon as available and in any event not later
than 95 days after the end of each Fiscal Year of the Parent, a copy of the
Consolidated balance sheets of the Parent and its Subsidiaries as of the end of
such Fiscal Year and the related Consolidated statements of income,
shareholders’ equity and cash flows of the Parent and

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  its Subsidiaries for such Fiscal Year, and the corresponding figures as at the
end of, and for, the preceding Fiscal Year, and audited and certified by KPMG,
L.L.P. or other independent certified public accountants of nationally
recognized standing reasonably acceptable to the Administrative Agent in an
opinion, without qualification as to the scope, and including, if requested by
the Administrative Agent, any management letters delivered by such accountants
to the Parent in connection with such audit, together with (i) the documents
required in clauses (i) and (ii) of the preceding Section 5.05(a) and (ii) a
certificate duly executed by a Responsible Officer of the Parent which reflects
in detail reasonably acceptable to the Administrative Agent the financial
performance of the applicable Person related to the financial covenants
contained in the documentation for any Permitted Other Indebtedness. As soon as
available and in any event not later than 50 days after the end of each Fiscal
Year of the Parent, the Borrower will furnish to the Administrative Agent a
draft Compliance Certificate duly executed by a Responsible Officer of the
Parent for such end of Fiscal Year financial statements.

       (c) Securities Law Filings. Promptly and in any event within 15 days
after the sending or filing thereof, copies of all proxy material, reports and
other information which the Borrower, the Parent or any of their respective
Subsidiaries sends to or files with the United States Securities and Exchange
Commission or sends to all of the shareholders of the Parent or partners of the
Borrower.          (d) Defaults. As soon as possible and in any event within
five days after the occurrence of each Default known to a Responsible Officer of
the Parent, the Borrower or any of their respective Subsidiaries, a statement of
an authorized financial officer or Responsible Officer of the Borrower setting
forth the details of such Default and the actions which the Borrower has taken
and proposes to take with respect thereto.          (e) ERISA Notices. As soon
as possible and in any event (i) within 30 days after the Parent, the Borrower
or any of a Controlled Group knows to know that any Termination Event described
in clause (a) of the definition of Termination Event with respect to any Plan
has occurred, (ii) within 10 days after the Parent, the Borrower or any of a
Controlled Group knows that any other Termination Event with respect to any Plan
has occurred, a statement of the Chief Financial Officer of the Parent
describing such Termination Event and the action, if any, which the Parent, the
Borrower or such member of such Controlled Group proposes to take with respect
thereto; (iii) within 10 days after receipt thereof by the Parent, the Borrower
or any of a Controlled Group from the PBGC, copies of each notice received by
the Parent, the Borrower or any such member of such Controlled Group of the
PBGC’s intention to terminate any Plan or to have a trustee appointed to
administer any Plan; and (iv) within 10 days after receipt thereof by the
Parent, the Borrower or any member of a Controlled Group from a Multiemployer
Plan sponsor, a copy of each notice received by the Parent, the Borrower or any
member of such Controlled Group concerning the imposition or amount of
withdrawal liability pursuant to Section 4202 of ERISA.    
     (f) Environmental Notices. Promptly upon the knowledge of any Responsible
Officer of the Borrower of receipt thereof by the Borrower or any of its
Subsidiaries, a

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  copy of any form of notice, summons or citation received from the United
States Environmental Protection Agency, or any other Governmental Authority
concerning (i) violations or alleged violations of Environmental Laws, which
seeks to impose liability therefor, (ii) any action or omission on the part of
the Parent or the Borrower or any of their present or former Subsidiaries in
connection with Hazardous Waste or Hazardous Substances which, based upon
information reasonably available to the Borrower, could reasonably be expected
to cause a Material Adverse Change or an Environmental Claim in excess of
$1,000,000, (iii) any notice of potential responsibility under CERCLA, or
(iv) concerning the filing of a Lien upon, against or in connection with the
Parent, Borrower, their present or former Subsidiaries, or any of their leased,
owned or operated Property, wherever located.          (g) Other Governmental
Notices or Actions. Promptly and in any event within five Business Days after
receipt thereof by the Parent, Borrower or any of their respective Subsidiaries,
(i) a copy of any notice, summons, citation, or proceeding seeking to adversely
modify in any material respect, revoke, or suspend any license, permit, or other
authorization from any Governmental Authority, which action could reasonably be
expected to cause a Material Adverse Change, and (ii) any revocation or
involuntary termination of any license, permit or other authorization from any
Governmental Authority, which revocation or termination could reasonably be
expected to cause a Material Adverse Change.          (h) Reports Affecting the
Leverage Ratio and the Senior Leverage Ratio. On or prior to the 15th day
following any Adjustment Event, an Adjustment Report with respect to such
Adjustment Event.          (i) Press Releases. Promptly and in any event within
5 days after the sending or releasing thereof, copies of all press releases or
other releases of information to the public by the Borrower, the Parent or any
of their respective Subsidiaries or releases of information to the Parent’s
shareholders.          (j) Corporate Activity. Promptly following any merger or
dissolution of any Subsidiary of the Borrower which is permitted hereunder or
event which would make any of the representations in Section 4.01-4.04 untrue,
notice thereof.          (k) Material Litigation. As soon as possible and in any
event within five days of any Responsible Officer of the Borrower, the Parent or
any of their respective Subsidiaries having knowledge thereof, notice of any
litigation, claim or any other event which could reasonably be expected to cause
a Material Adverse Change.          (l) Operating Information. As soon as
available and in any event not later than 50 days after the end of each Fiscal
Quarter of the Parent, the Borrower shall provide the Administrative Agent (for
distribution to the Lenders) liquidity, cash flow and summary operating
information for such fiscal month and detailed information related to the
Borrower’s Permitted Housing Business and Permitted Property

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  Agreements, with all such information prepared by the Borrower in a form
reasonably satisfactory to the Required Lenders.          (m) Insurance
Information. As soon as available and in any event not later than 95 days after
the end of each Fiscal Year of the Parent, the Borrower shall provide the
Administrative Agent copies of the unaudited Insurance Annual Statement of each
Insurance Company, certified by a Responsible Officer of the Parent as fairly
presenting the financial condition and results of operations of such Insurance
Company in accordance with SAP consistently applied throughout the periods
reflected therein. As soon as available and in any event not later than 50 days
after the end of each Fiscal Quarter of the Parent, the Borrower shall provide
the Administrative Agent with a schedule of the Insurance Contracts and
Reinsurance Contracts existing as of the last day of such Fiscal Quarter,
together with the maximum amount payable by the Insurance Company thereunder.
Within 10 days of request by the Administrative Agent, the most recent
examination reports and loss run sheets of the Insurance Companies.    
     (n) Budget. On or prior to January 31st of each Fiscal Year, the Borrower
shall provide the Administrative Agent (for distribution to the Lenders) an
operating budget for the Parent and its Subsidiaries on a Consolidated basis for
such Fiscal Year, including without limitation pro forma balance sheet, income
statement, cash flow and financial covenant compliance.          (o) Other
Information. Such other information respecting the business or Properties, or
the condition or operations, financial or otherwise, of the Borrower, the Parent
or any of their respective Subsidiaries, as any Lender through the
Administrative Agent may from time to time reasonably request.

     Section 5.06 Maintenance of Property. The Borrower will, and will cause
each of the Parent and its Subsidiaries to (a) maintain their Owned Hospitality
Properties in a manner consistent for Hospitality Properties and related
property of the same quality and character and shall keep or cause to be kept
every part thereof and its other properties in good condition and repair,
reasonable wear and tear excepted, and make all reasonably necessary repairs,
renewals or replacements thereto as may be reasonably necessary to conduct the
business of the Borrower and its Subsidiaries, (b) not knowingly or willfully
permit the commission of waste or other injury, or the occurrence of pollution,
contamination or any other condition in, on or about any of their Owned
Hospitality Properties, (c) substantially maintain and repair each of their
Owned Hospitality Properties as required by any franchise agreement, license
agreement, management agreement or ground lease for such Owned Hospitality
Property, and (d) perform such Person’s obligations under the Permitted Property
Agreements and the Permitted Housing Agreements to which such Person is a party
except where the non-performance thereof in the aggregate would not reasonably
be expected to cause a Material Adverse Change.

     Section 5.07 Insurance. The Borrower will maintain, and cause each of its
Subsidiaries to maintain, the insurance required pursuant to Schedule 5.07.

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     Section 5.08 Use of Proceeds. The proceeds of the Loan shall be used by the
Borrower for the purposes set forth in Section 4.08.

     Section 5.09 Intentionally Deleted.

     Section 5.10 New Subsidiaries. Except with respect to a Permitted Other
Subsidiary that has incurred or issued Permitted Other Indebtedness, within ten
(10) Business Days after either (a) the date that any Subsidiary of the Parent
that was not a Material Subsidiary becomes a Material Subsidiary, or (b) the
purchase by the Parent or any of its Subsidiaries of the Ownership Interests of
any Person, which purchase results in such Person becoming a Material Subsidiary
the Parent shall, in each case, cause (i) such Material Subsidiary to execute
and deliver to the Administrative Agent a Guaranty or an Accession Agreement and
(ii) the Persons who are party to the documents delivered pursuant to the
provisions of this Section 5.10 to provide such evidence of authority to enter
into such documents as the Administrative Agent may reasonably request.

     Section 5.11 Insurance Business.

       (a) The Borrower will cause each of the Insurance Companies to (i) carry
on and conduct its business only in substantially the same manner and in
substantially the same fields of enterprise as it is presently conducted,
(ii) only engage in the insurance business or the business of a holding company
owning entities engaged in the insurance business or the business of insurance
or reasonably incidental activities, (iii) do all things necessary to renew,
extend and continue in effect all Insurance Licenses which may at any time and
from time to time be necessary for each Insurance Company to conduct business in
compliance with all applicable Legal Requirements, including, if applicable, the
filing of all appropriate Insurance Annual Statements and SAP Financial
Statements; provided, that each Insurance Company may withdraw from one or more
states (other than its state of domicile) as an admitted insurer if such
withdrawal is determined by the Insurance Company’s Board of Directors to be in
the best interest of the Insurance Companies and could not reasonably be
expected to cause a Material Adverse Change.

       (b) The Borrower will not permit the Insurance Surplus, as of the last
day of each Fiscal Quarter, to be less than that required by applicable Legal
Requirements. The Borrower will not permit the maximum amount payable by all
Insurance Companies under Insurance Contracts or Reinsurance Contracts, as of
the last day of each Fiscal Quarter, to be greater than $10,000,000.

     Section 5.12 Interest Rate Agreements. From the Closing Date until the
Maturity Date, the Borrower shall cause the Parent to obtain and thereafter
maintain Interest Rate Agreements reasonably satisfactory to the Administrative
Agent, sufficient to ensure that 50% of the Parent’s Total Indebtedness,
measured as of each day during such period, shall be covered by such Interest
Rate Agreements or shall have a fixed rate of interest. Any Interest Rate
Agreements for the Parent shall be provided by either a Senior Lender (to the
extent permitted under and as provided in the Senior Credit Facility or a bank
or other financial institution whose long-term debt rating is equal to or
greater than “A”.

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ARTICLE VI
NEGATIVE COVENANTS

     So long as any Note or any amount under any Credit Document shall remain
unpaid, or any Lender shall have any Commitment, the Borrower agrees to comply
with the following covenants.

     Section 6.01 Liens, Etc. The Borrower, the Parent and their respective
Subsidiaries will not create, assume, incur or suffer to exist, any Lien on or
in respect of any of its Property whether now owned or hereafter acquired, or
assign any right to receive income, except that the Borrower and its
Subsidiaries may create, incur, assume or suffer to exist Liens:

       (a) securing the Senior Obligations under the Senior Credit Facility in
accordance with its terms or the obligations under any Additional Designated
Senior Indebtedness;          (b) for taxes, assessments or governmental charges
or levies on Property of the Borrower or any Guarantor to the extent not
required to be paid pursuant to Sections 5.03;          (c) imposed by law (such
as landlords’, carriers’, warehousemen’s and mechanics’ liens or otherwise
arising from litigation) (i) which are being contested in good faith and by
appropriate proceedings, (ii) with respect to which reserves in conformity with
GAAP have been provided, (iii) which have not resulted in any Collateral being
in jeopardy of being sold, forfeited or lost during or as a result of such
contest, (iv) neither the Administrative Agent nor any Lender could become
subject to any civil fine or penalty or criminal fine or penalty, in each case,
as a result of non-payment of such charge or claim and (v) such contest does
not, and could not reasonably be expected to, result in a Material Adverse
Change;          (d) on leased personal property to secure solely the lease
obligations associated with such property;          (e) on the Property of or
Ownership Interests in a Permitted Other Subsidiary securing Indebtedness set
forth in paragraph (b) of the definition of “Permitted Other Indebtedness”
incurred by such Permitted Other Subsidiary to the extent such Indebtedness is
permitted pursuant to the provisions of Section 6.02;          (f) on the
Ownership Interests in an Unconsolidated Entity securing Permitted Non-Recourse
Unconsolidated Entity Indebtedness incurred by such Unconsolidated Entity;    
     (g) granted to the owner of a Hospitality Property subject to a Permitted
Property Agreement on the accounts receivable, inventory, cash or other property
owned by the Borrower or the Borrower’s Subsidiary in connection with such
Hospitality Property;

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       (h) on the Collateral (or on other assets of the Parent and its
Subsidiaries which are approved by the Senior Administrative Agent as additional
security for the Senior Obligations) to secure Additional Designated Senior
Indebtedness, provided that such Liens (i) also secure the Senior Obligations on
an equal and ratable basis with such Indebtedness, and (ii) if not already
granted by the Senior Security Document, then are granted pursuant to
documentation (including documentation granting Liens to secure the Senior
Obligations on an equal and ratable basis) reasonably acceptable to the Senior
Administrative Agent and the Borrower; and          (i) easements, rights of
way, covenants, restrictions, zoning and similar restrictions and other similar
charges or encumbrances not interfering with the ordinary conduct of the
business of the Borrower or its Subsidiaries and which do not detract materially
from the value of any of the Owned Hospitality Properties to which they attach
or impair materially the use thereof by the Borrower or the Borrower’s
Subsidiaries.

     Section 6.02 Indebtedness. The Borrower, the Parent and their respective
Subsidiaries will not incur or permit to exist any Indebtedness other than the
Obligations and the following:

       (a) Permitted Other Indebtedness in an amount that does not cause a
breach at any time of the covenants contained in Article VII;    
     (b) Capital Leases for Personal Property;          (c) Interest Rate
Agreements; provided that (i) such agreements shall be unsecured except as
provided in the Senior Credit Facility and the Senior Security Documents,
(ii) the dollar amount of indebtedness subject to such agreements and the
indebtedness subject to Interest Rate Agreements in the aggregate shall not
exceed the sum of the amount of the Senior Commitments and the amount of the
other Indebtedness of the Borrower or its Affiliates which bears interest at a
variable rate, and (iii) the agreements shall be at such interest rates and
otherwise in form and substance reasonably acceptable to the Senior
Administrative Agent or, if the Senior Credit Facility has been repaid in full
and has been terminated, the Administrative Agent;          (d) Any of the
following Indebtedness incurred by the Parent or the Borrower:

       (i) guaranties in connection with Permitted Other Indebtedness secured by
an Owned Hospitality Property or interest in a Person owning a Hospitality
Property of (A) if the Hospitality Property is subject to a ground lease, the
payment of rent and performance of obligations under such ground lease, (B) real
estate taxes relating to such Hospitality Property, and (C) capital reserves
required under such Indebtedness;          (ii) customary indemnities for acts
of malfeasance, misappropriation and misconduct and an environmental indemnity
for the lender under Indebtedness permitted under this Agreement;

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       (iii) guaranties of franchise and license agreements in connection with
Hospitality Properties; and          (iv) guaranties of obligations of the
Parent’s Subsidiaries or Unconsolidated Entities with respect to Permitted
Property Agreements and Permitted Housing Agreements; and

       (e) extensions, renewals and refinancing of any of the Indebtedness
specified in paragraphs (a)-(d) above so long as the principal amount of such
Indebtedness is not thereby increased.

     Section 6.03 Agreements Restricting Distributions From Subsidiaries. The
Borrower will not, nor will it permit any of its Subsidiaries (other than
Permitted Other Subsidiaries) to, enter into any agreement (other than a Credit
Document) which limits distributions to or any advance by any of the Borrower’s
Subsidiaries to the Borrower.

     Section 6.04 Restricted Payments. Neither the Parent, nor the Borrower, nor
any of their respective Subsidiaries, will make any Restricted Payment, except
that:

       (a) provided that no Default has occurred and is continuing or would
result therefrom, the Borrower shall be entitled to make cash distributions to
its partners, including the Parent, which distributions for partners other than
the Parent and the Parent’s Subsidiaries do not in the aggregate in any Fiscal
Year exceed $100,000;          (b) a Subsidiary of the Borrower may make a
Restricted Payment to the Borrower;          (c) the limited partners of the
Borrower shall be entitled to exchange limited partnership interests in the
Borrower for the Parent’s common stock;          (d) the Parent or the Borrower
shall be entitled to make a one-time payment to Wyndham of approximately
$450,000 to redeem Wyndham’s interest in Interstate Hotels, LLC;    
     (e) provided that no Default has occurred and is continuing or would result
therefrom, the Parent or the Borrower shall be entitled to make payments to
repay the Designated Redemption Indebtedness if such Person is contractually
obligated to make such repayment at such time;          (f) the Borrower shall
be entitled to issue limited partnership interests in the Borrower in exchange
for Ownership Interests in Subsidiaries and Unconsolidated Entities to the
extent such Investment is permitted pursuant to the provisions of Section 6.06;
         (g) provided that no monetary Default or Default in the covenants set
forth in Article VII has occurred and is continuing or would result therefrom,
then the Borrower shall be entitled to pay (i) interest, but not principal
(except only as permitted by clause

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  (ii) of this subsection (g)), of Subordinate Indebtedness permitted pursuant
to this Agreement, and (ii) principal of Approved Inter-Company Indebtedness;
provided that any such principal payments (A) are made to a Guarantor, (B) are
either retained by such Guarantor or distributed to the Borrower, the Parent or
another Guarantor and (C) are used in accordance with the provisions of this
Agreement; and          (h) provided that (i) no monetary Default or Default in
the covenants set forth in Article VII has occurred and is continuing or would
result therefrom, (ii) on the date of such Restricted Payment after taking into
account such Restricted Payment (A) the Leverage Ratio shall be less than 4.50
to 1.00 and (B) the Senior Leverage Ratio shall be less than 2.75 to 1.00, and
(iii) no Material Adverse Change has occurred, the Parent shall be entitled to
repurchase up to $5,000,000 in the aggregate of the Parent’s currently
outstanding common stock. Within ten (10) Business Days of any such Restricted
Payments in the aggregate reaching increments of $250,000 (i.e. $250,000,
$500,000, $750,000) the Borrower shall execute and deliver to the Administrative
Agent an Adjustment Report dated as of the date of reaching such Restricted
Payment increment which takes into account such Restricted Payments. To the
extent that the Parent reaches multiple $250,000 increments over any ten (10)
Business Day period, then an Adjustment Report need only be provided as of the
date of the reaching of the last such $250,000 increment in such ten
(10) Business Day period. In addition, any Compliance Certificate delivered by
the Borrower shall state the dollar amount of such Restricted Payments made in
the Rolling Period covered by such Compliance Certificate and the amount of all
such Restricted Payments in the aggregate.

     Section 6.05 Fundamental Changes; Asset Dispositions. Neither the Parent,
the Borrower, nor any of their respective Subsidiaries (other than the Permitted
Other Subsidiaries), will (a) merge or consolidate with or into any other
Person, unless (i) a Guarantor is merged into the Borrower and the Borrower is
the surviving Person or a Subsidiary (other than a Permitted Other Subsidiary
which has Indebtedness other than the Obligations) is merged into any Subsidiary
(other than a Permitted Other Subsidiary which has Indebtedness other than the
Obligations), and (ii) immediately after giving effect to any such proposed
transaction no Default would exist; (b) sell, transfer, or otherwise dispose of
all or any of such Person’s material Property except for a Permitted Asset
Disposition, or dispositions or replacements of personal property in the
ordinary course of business; (c) enter into, as lessor, a lease (other than a
lease which qualifies as a Permitted Asset Disposition) of all or substantially
all of any Owned Hospitality Property with any Person without the consent of the
Administrative Agent; (d) sell or otherwise dispose of any material Ownership
Interests of any Subsidiary (except for a Permitted Other Subsidiary or a sale
which qualifies as a Permitted Asset Disposition); (e) except for
(i) Capitalization Events for which the consideration is principally cash or
cash equivalents and for which the Net Cash Proceeds are applied in accordance
with the provisions of Section 2.07(c) and (ii) the issuance of limited
partnership interests in the Borrower in exchange for Ownership Interests in
Subsidiaries and Unconsolidated Entities to the extent permitted pursuant to the
provisions of Section 6.04, materially alter the corporate, capital or legal
structure of any such Person (except for a Permitted Other Subsidiary);
(f) enter into any forward sales of the Parent common stock or Ownership
Interests in the Borrower; (g) liquidate, wind-up or dissolve itself (or suffer
any liquidation or dissolution) provided that nothing herein shall prohibit the
Borrower

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from dissolving any Subsidiary which has no assets on the date of dissolution,
(h) enter into any leases of Property or management agreements for any Property
except (1) Permitted Property Agreements, (2) Permitted Housing Agreements,
(3) leases of office space for the use of the Parent’s and the Parent’s
Subsidiaries’ employees, and (4) the leases of personal property permitted by
this Agreement or (i) materially alter the character of their respective
businesses from that conducted as of the date of this Agreement or otherwise
engage in any material business activity outside of the Hospitality Management
Business.

     Section 6.06 Investments and other Property. Neither the Parent, the
Borrower, nor any of their respective Subsidiaries, shall acquire by purchase or
otherwise any Investments or other Property, except the following:

       (a) investments or Properties owned by such Persons as of the Closing
Date;          (b) Liquid Investments;          (c) trade and customer accounts
receivable which are for goods furnished or services rendered in the ordinary
course of business and are payable in accordance with customary trade terms, and
receivables purchased in connection with the acquisition of an Owned Hospitality
Property;          (d) Investments in Permitted New Investments or Subsidiaries
making Permitted New Investments;          (e) other assets, including Capital
Expenditures, acquired or made in the ordinary course of (i) owning the Parent’s
and the Parent’s Subsidiaries’ existing Investments and Properties and any
Permitted New Investments and (ii) operating a Hospitality Management Business;
and          (f) loans to employees of the Parent or its Subsidiaries which in
the aggregate do not exceed $100,000.

Notwithstanding the foregoing, neither the Borrower, nor the Parent, nor their
respective Subsidiaries shall make an Investment, acquire any other Property, or
enter into any Permitted Property Agreement or Permitted Housing Agreement which
would (a) cause a Default, (b) cause or result in the Borrower or the Parent
failing to comply with any of the financial covenants contained herein, or
(c) cause or result in the aggregate Adjusted EBITDA in any Rolling Period
derived from all Permitted Property Agreements, Permitted Housing Agreements or
other Investments related to Hospitality Properties which are not full-service
or limited service hotels to exceed 35% of the Parent’s Adjusted EBITDA for such
Rolling Period. In addition, neither the Borrower, nor the Parent, nor their
respective Subsidiaries shall enter into any agreements to purchase Investments
or other Property, unless with respect to such purchase such Person at all times
has available sources of funds equal to pay in full the cost of the purchase of
such Investments or other Property (to the extent that the payment of such cost
of purchase constitutes a recourse obligation of the Parent, the Borrower or its
Subsidiary), which available sources of funds may include Advances to the extent
that the Borrower may borrow the same for the purposes required or other
Indebtedness permitted by the terms of this Agreement.

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     Section 6.07 Affiliate Transactions. Except for certain liquor license
agreements, the Borrower will not, and will not permit any of its Subsidiaries
to, make, directly or indirectly: (a) any transfer, sale, lease, assignment or
other disposal of any assets to any Affiliate of the Borrower which is not a
Guarantor or any purchase or acquisition of assets from any such Affiliate
except for purchases of new personal property (i) which in any calendar year do
not exceed $1,000,000 in the aggregate and (ii) for which the sales price is the
actual cost to the party selling; or (b) any arrangement or other transaction
directly or indirectly with or for the benefit of any such Affiliate (including
without limitation, guaranties and assumptions of obligations of an Affiliate),
other than in the ordinary course of business and at market rates.

     Section 6.08 Sale or Discount of Receivables. The Borrower will not, and
will not permit any of its Subsidiaries to, directly or indirectly, sell with
recourse, or discount or otherwise sell for less than the face value thereof,
any of its notes or accounts receivable.

     Section 6.09 Material Documents. The Borrower will not, nor will it permit
any of its Subsidiaries to (a) amend the Borrower’s partnership agreement in any
material respect, (b) admit a new general partner to the Borrower, (c) enter
into any termination or material modification or amendment of Permitted Property
Agreements which singly or in the aggregate could reasonably be expected to
cause a Material Adverse Change, (d) enter into any modification or amendment of
any of the Permitted Property Agreements with MHC or MHC’s Subsidiaries which
would provide in any such Permitted Property Agreements performance standards
for the year 2002, or (e) modify the Approved Inter-Company Indebtedness Loan
Documents in any way that is materially adverse to the Lenders.

     Any termination, modification or amendment prohibited under this Section
6.09 without the Required Lender’s written consent shall, to the extent
permitted by applicable law, be void and of no force and effect.

     Section 6.10 No Further Negative Pledges. Neither the Borrower, nor the
Parent, nor their respective Subsidiaries shall enter into or suffer to exist
any agreement (other than the Senior Credit Facility, this Agreement and the
Credit Documents and as set forth in the Permitted Property Agreements and the
Permitted Housing Agreements) (a) prohibiting the creation or assumption of any
Lien upon the Properties of the Parent, the Borrower or any of their respective
Subsidiaries (except for Properties of and Ownership Interests in the Permitted
Other Subsidiaries), whether now owned or hereafter acquired, or (b) requiring
an obligation to be secured if some other obligation is or becomes secured;
provided that in connection with the incurrence of Additional Designated Senior
Indebtedness, the Parent and its Subsidiaries may enter into such agreements
which (y) are in form and substance acceptable to the Senior Administrative
Agent in its reasonable discretion, and (z) would require that assets of the
Parent and its Subsidiaries which secure the Senior Obligations also secure on
an equal and ratable basis such Additional Designated Senior Indebtedness.

[REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

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ARTICLE VII
FINANCIAL COVENANTS

     So long as any Note or any amount under any Credit Document shall remain
unpaid, unless the Required Lenders shall otherwise consent in writing, the
Borrower agrees to comply and cause the Parent and the Parent’s Subsidiaries to
comply with the following covenants:

     Section 7.01 Interest Coverage Ratio. The Parent shall maintain at the end
of each Rolling Period (a) for the Rolling Period ending on September 30, 2002,
an Interest Coverage Ratio of not less than 1.75 to 1.0, (b) for the Rolling
Periods ending on December 31, 2002 through September, 2003, an Interest
Coverage Ratio of not less than 2.25 to 1.00, and (c) for any Rolling Period
thereafter, an Interest Coverage Ratio of not less than 2.50 to 1.00.

     Section 7.02 Senior Interest Coverage Ratio. The Parent shall maintain at
the end of each Rolling Period (a) for the Rolling Period ending on September
30, 2002, a Senior Interest Coverage Rating of not less than 3.00 to 1.00 and
(b) for any Rolling Period thereafter, a Senior Interest Coverage Ratio of not
less than 3.50 to 1.00.

     Section 7.03 Leverage Ratio. (a) The Parent shall not on any date permit
the Leverage Ratio to exceed during the applicable period indicated in the
following chart the amount set forth in such chart for such period:

         

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

Beginning Date of Applicable Period   Ending Date of Applicable Period  
Leverage Ratio

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

Closing Date   The day immediately prior to the Status Reset Date during the
Fiscal Quarter commencing October 1, 2002   6.00 to 1.00

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

The Status Reset
Date during the
Fiscal Quarter
commencing October
1, 2002   The day immediately prior to the Status Reset Date during the Fiscal
Quarter commencing January 1, 2003   5.50 to 1.00

--------------------------------------------------------------------------------

 

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--------------------------------------------------------------------------------

The Status Reset
Date during the
Fiscal Quarter
commencing January
1, 2003   The day immediately prior to the Status Reset Date during the Fiscal
Quarter commencing July 1, 2003   5.25 to 1.00

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

The Status Reset Date during the Fiscal Quarter commencing July 1, 2003   The
day immediately prior to the Status Reset Date during the Fiscal Quarter
commencing October 1, 2003   4.75 to 1.00

--------------------------------------------------------------------------------

 

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--------------------------------------------------------------------------------

The Status Reset
Date during the
Fiscal Quarter
commencing October
1, 2003   The day immediately prior to the Status Reset Date during the Fiscal
Quarter commencing January 1, 2004   4.50 to 1.00

--------------------------------------------------------------------------------

 

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--------------------------------------------------------------------------------

The Status Reset
Date during the
Fiscal Quarter
commencing January
1, 2004   No ending date   4.00 to 1.00

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

       (a) For so long as the Senior Credit Facility is outstanding, a breach of
the covenant set forth in this Section 7.03 shall not be an Event of Default
unless such breach exists on two consecutive Status Reset Dates.

     Section 7.04 Senior Leverage Ratio. The Parent shall not on any date permit
the Senior Leverage Ratio to exceed during the applicable period indicated in
the following chart the amount set forth in such chart for such period:

         

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

Beginning Date of Applicable Period   Ending Date of Applicable Period   Senior
Leverage Ratio

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

Closing Date   The day immediately prior to the Status Reset Date during the
Fiscal Quarter commencing January 1, 2003   4.00 to 1.00

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

The Status Reset Date during the Fiscal Quarter commencing January 1, 2003   The
day immediately prior to the Status Reset Date during the Fiscal Quarter
commencing January 1, 2004   3.25 to 1.00

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

The Status Reset Date during the Fiscal Quarter commencing January 1, 2004   No
ending date   2.50 to 1.00

--------------------------------------------------------------------------------

 

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--------------------------------------------------------------------------------

     Section 7.05 Maintenance of Net Worth. The Parent shall at all times
maintain an Adjusted Net Worth of not less than the Minimum Net Worth.

     Section 7.06 Waivers. Notwithstanding the foregoing, in the event that the
financial covenants in the Senior Credit Facility are modified or amended, or
compliance with such financial covenants are waived, by the Senior Lenders, and
such modification, amendment or

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waiver results in financial covenants under the Senior Credit Facility that are
less onerous than the financial covenants contained in this Article VII , the
Administrative Agent and the Lenders shall be deemed to have modified or
amended, or waived compliance with, the applicable financial covenants contained
in this Article VII to conform to the financial covenants as modified, amended
or waived under the Senior Credit Facility for so long as such modification,
amendment or waiver is in effect or the Senior Credit Facility is outstanding.

ARTICLE VIII
EVENTS OF DEFAULT; REMEDIES

     Section 8.01 Events of Default. The occurrence of any of the following
events shall constitute an “Event of Default” under any Credit Document:

       (a) Principal Payment. The Borrower or any Guarantor shall fail to pay
any principal of any Note when the same becomes due and payable as set forth in
this Agreement;          (b) Interest or Other Obligation Payment. The Borrower
or any Guarantor shall fail to pay any interest on any Note or any fee or other
amount payable hereunder or under any other Credit Document when the same
becomes due and payable as set forth in this Agreement or such other Credit
Document, as applicable, provided however that the Borrower and the Guarantors
will have a grace period of five (5) days after the payments covered by this
Section 8.01(b) becomes due and payable for the first two defaults of such
Persons collectively under this Section 8.01(b) in every calendar year;    
     (c) Representations and Warranties. Any representation or warranty made or
deemed to be made (i) by the Borrower in this Agreement or in any other Credit
Document, (ii) by the Borrower (or any of its officers) in connection with this
Agreement or any other Credit Document, or (iii) by any Guarantor in any Credit
Document shall prove to have been incorrect in any material respect when made or
deemed to be made;          (d) Covenant Breaches. (i) The Borrower shall fail
to perform or observe any covenant contained in Section 5.02, Article VI or
Article VII of this Agreement, (ii) the Borrower shall fail to perform or
observe, or shall fail to cause any Guarantor to perform or observe any covenant
in any Credit Document beyond any notice and/or cure period for such default
expressly provided in such Credit Document or (iii) the Borrower or any
Guarantor shall fail to perform or observe any term or covenant set forth in any
Credit Document which is not covered by clause (i) or (ii) above or any other
provision of this Section 8.01, in each case if such failure shall remain
unremedied for thirty (30) days after the earlier of the date written notice of
such default shall have been given to the Borrower or such Guarantor by the
Administrative Agent or any Lender or the date a Responsible Officer of the
Borrower or any Guarantor has actual knowledge of such default, unless such
default in this clause (iii) cannot be cured in such thirty (30) day period and
the Borrower is diligently proceeding to cure such default, in which event the
cure period shall be extended to ninety (90) days; provided that the Borrower
shall not be

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  entitled to more than the aforementioned thirty (30) day period to cure a
default under Section 5.09 of this Agreement;          (e) Cross-Defaults. With
respect to any Indebtedness of the Borrower, the Parent or any of their
respective Subsidiaries, including, without limitation, the Senior Credit
Facility (but excluding Indebtedness evidenced by the Notes) which is
outstanding in a principal amount of at least $5,000,000 individually or when
aggregated with all such Indebtedness of the Borrower, the Parent or any of
their respective Subsidiaries any of the following:

       (i) any such Indebtedness shall be declared to be due and payable, or
required to be prepaid (other than by a regularly scheduled required
prepayment), prior to the stated maturity thereof,          (ii) such Person
shall fail to pay any principal of or premium or interest of any of such
Indebtedness (whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise), and such failure shall continue after the applicable grace
period, if any, specified in the agreement or instrument relating to such
Indebtedness, or          (iii) any other event shall occur or condition shall
exist under any agreement or instrument relating to such Indebtedness, and shall
continue after the applicable grace period, if any, specified in such agreement
or instrument, if the effect of such event or condition is to permit the holders
of such Indebtedness to accelerate the maturity of such Indebtedness;

       (f) Insolvency. The Borrower, the Parent or any of their respective
Material Subsidiaries shall generally not pay its debts as such debts become
due, or shall admit in writing its inability to pay its debts generally, or
shall make a general assignment for the benefit of creditors; or any proceeding
shall be instituted by or against the Borrower, the Parent or any of their
respective Material Subsidiaries seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of debtors, or
seeking the entry of an order for relief or the appointment of a receiver,
trustee or other similar official for it or for any substantial part of its
property and, in the case of any such proceeding instituted against the
Borrower, the Parent or any of their respective Material Subsidiaries, either
such proceeding shall remain undismissed for a period of 60 days or any of the
actions sought in such proceeding shall occur; or the Borrower, the Parent or
any of their respective Material Subsidiaries shall take any corporate action to
authorize any of the actions set forth above in this paragraph (f);    
     (g) Judgments. Any judgment or order for the payment of money in excess of
$2,500,000 or the Dollar Equivalent thereof (reduced for purposes of this
paragraph for the amount in respect of such judgment or order that a reputable
insurer has acknowledged being payable under any valid and enforceable insurance
policy) shall be

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  rendered against the Borrower, the Parent or any of their respective
Subsidiaries which, within 30 days from the date such judgment is entered, shall
not have been discharged or execution thereof stayed pending appeal;    
     (h) ERISA. (i) Any Person shall engage in any “prohibited transaction” (as
defined in Section 406 of ERISA or Section 4975 of the Code) involving any Plan,
(ii) any “accumulated funding deficiency” (as defined in Section 302 of ERISA),
whether or not waived, shall exist with respect to any Plan, (iii) a Reportable
Event shall occur with respect to, or proceedings shall commence to have a
trustee appointed, or a trustee shall be appointed, to administer or to
terminate, any Plan, which Reportable Event or commencement of proceedings or
appointment of a trustee is likely to result in the termination of such Plan for
purposes of Title IV of ERISA, unless such Reportable Event, proceedings or
appointment are being contested by the Borrower in good faith and by appropriate
proceedings, (iv) any Plan shall terminate for purposes of Title IV of ERISA,
(v) the Borrower or any member of a Controlled Group shall incur any liability
in connection with a withdrawal from a Multiemployer Plan or the insolvency
(within the meaning of Section 4245 of ERISA) or reorganization (within the
meaning of Section 4241 of ERISA) of a Multiemployer Plan, unless such liability
is being contested by the Borrower in good faith and by appropriate proceedings,
or (vi) any other event or condition shall occur or exist, with respect to a
Plan; and in each case in clauses (i) through (vi) above, such event or
condition, together with all other such events or conditions, if any, could
subject the Borrower or any Guarantor to any tax, penalty or other liabilities
in the aggregate exceeding $10,000,000;          (i) Guaranty. Any provision of
any Guaranty shall for any reason cease to be valid and binding on any Guarantor
or any Guarantor shall so state in writing;          (j) Intentionally Deleted;
         (k) Parent Common Stock; Repayment Event. The Parent at any time
hereafter fails to (i) cause the Parent common stock to be duly listed on the
New York Stock Exchange, Inc. and (ii) file timely all reports required to be
filed by the Parent with the New York Stock Exchange, Inc. and the Securities
and Exchange Commission and, with respect to a failure under clause (ii), such
failure remains uncured on the date which is the earlier of (A) the date 30 days
following the initial occurrence of such failure and (B) the date specified by
the New York Stock Exchange, Inc. or the Securities and Exchange Commission as
the date such failure needs to be cured by. Upon the receipt by the Parent of
any Net Cash Proceeds from a Repayment Event, (a) the Parent fails to
immediately make a capital contribution or advance to the Borrower or a
Subsidiary of the Borrower in the aggregate amount of such Net Cash Proceeds, or
otherwise apply the Net Cash Proceeds from such Repayment Event in accordance
with the provisions of this Agreement or (b) the Borrower fails to apply such
Net Cash Proceeds in accordance with the provisions of this Agreement;    
     (l) Change in Ownership or Management. Any of the following occur without
the written consent of the Required Lenders: (i) a Change in Control occurs for
either the

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  Parent or the Borrower; (ii) the Parent and any wholly-owned Subsidiary of the
Parent collectively owns less than 70% of the legal or beneficial interest in
the Borrower; (iii) unless a Specified Change of Control Event shall have
occurred, the Parent and MHC shall cease to have at least 3 of the same
individuals serving on their respective Boards of Directors; or (iv) unless a
Specified Change of Control Event shall have occurred, the Parent and MHC shall
cease to have at least one (1) individual serving as a Responsible Officer of
the Parent and MHC, and, within 120 days following such occurrence for any
reason, another person acceptable to the Required Lenders in their sole
discretion is not employed as a Responsible Officers by the Parent and MHC; or  
       (m) Permitted Property Agreements. Any of the following occur: (i)
sufficient Permitted Property Agreements shall for any reason cease to be valid
and binding on MHC, MHC OP or other Person party thereto, or MHC, MHC OP or such
other Person party thereto shall so state in writing, that it could reasonably
be expected to cause a Material Adverse Change; or (ii) a default by the Parent,
the Borrower or any of their respective Subsidiaries shall occur under
sufficient Permitted Property Agreements that such default could reasonably be
expected to cause a Material Adverse Change.

     Section 8.02 Optional Acceleration of Maturity; Other Actions. If any Event
of Default (other than an Event of Default pursuant to paragraph (f) of
Section 8.01) shall have occurred and be continuing, then, and in any such
event,

       (a) the Administrative Agent (i) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrower, declare the
obligation of each Lender to make Advances to be terminated, whereupon the same
shall forthwith terminate, and (ii) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrower, declare the Notes,
all interest thereon, and all other amounts payable under this Agreement to be
forthwith due and payable, whereupon the Notes, all such interest, and all such
amounts shall become and be forthwith due and payable in full, without
presentment, demand, protest or further notice of any kind (including, without
limitation, any notice of intent to accelerate or notice of acceleration), all
of which are hereby expressly waived by the Borrower, and

       (b) the Administrative Agent shall at the request of, or may with the
consent of, the Required Lenders proceed to enforce its rights and remedies
under the Credit Documents for the ratable benefit of the Lenders by appropriate
proceedings.

     Section 8.03 Automatic Acceleration of Maturity. If any Event of Default
pursuant to paragraph (f) of Section 8.01 shall occur, the obligation of each
Lender to make Advances and shall immediately and automatically be terminated
and the Notes, all interest on the Notes, and all other amounts payable under
this Agreement shall immediately and automatically become and be due and payable
in full, without presentment, demand, protest or any notice of any kind
(including, without limitation, any notice of intent to accelerate or notice of
acceleration), all of which are hereby expressly waived by the Borrower.

     Section 8.04 Intentionally Deleted.

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     Section 8.05 Non-exclusivity of Remedies. No remedy conferred upon the
Administrative Agent or the Lenders is intended to be exclusive of any other
remedy, and each remedy shall be cumulative of all other remedies existing by
contract, at law, in equity, by statute or otherwise.

     Section 8.06 Right of Set-off.

       (a) Upon (i) the occurrence and during the continuance of any Event of
Default pursuant to paragraph (f) of Section 8.01 or (ii) the making of the
request or the granting of the consent, if any, specified by Section 8.02 to
authorize the Administrative Agent to declare the Notes and any other amount
payable hereunder due and payable pursuant to the provisions of Section 8.02 or
the automatic acceleration of the Notes and all amounts payable under this
Agreement pursuant to Section 8.03, each Lender and Affiliate thereof is hereby
authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any
time owing by such Lender or any Affiliate thereof to or for the credit or the
account of the Borrower against any and all of the obligations of the Borrower
now or hereafter existing under this Agreement, the Note held by such Lender,
and the other Credit Documents, irrespective of whether or not such Lender shall
have made any demand under this Agreement, such Note, or such other Credit
Documents, and although such obligations may be unmatured. Each Lender agrees to
promptly notify the Borrower after any such set-off and application made by such
Lender or its Affiliate, provided that the failure to give such notice shall not
affect the validity of such set-off and application. The rights of each Lender
under this Section are in addition to any other rights and remedies (including,
without limitation, other rights of set-off) which such Lender may have.

       (b) The Borrower waives any right of set-off, defense or counterclaim the
Borrower has or may have against any Lender to apply any amounts owed the
Borrower by such Lender or any Affiliate thereof against the Obligations
hereunder.

ARTICLE IX
AGENCY AND ISSUING BANK PROVISIONS

     Section 9.01 Authorization and Action. Each Lender hereby appoints and
authorizes the Administrative Agent to take such action as Administrative Agent
on its behalf and to exercise such powers under this Agreement and the other
Credit Documents as are delegated to the Administrative Agent by the terms
hereof and of the other Credit Documents, together with such powers as are
reasonably incidental thereto. As to any matters not expressly provided for by
this Agreement or any other Credit Document (including, without limitation,
enforcement or collection of the Notes), the Administrative Agent shall not be
required to exercise any discretion or take any action, but shall be required to
act or to refrain from acting (and shall be fully protected in so acting or
refraining from acting) upon the instructions of the Required Lenders, and such
instructions shall be binding upon all Lenders and all holders of Notes;
provided, however, that the Administrative Agent shall not be required to take
any action which exposes the Administrative Agent to personal liability or which
is contrary to this Agreement, any other

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Credit Document, or applicable law. The functions of the Administrative Agent
are administerial in nature and in no event shall the Administrative Agent have
a fiduciary or trustee relation in respect of any Lender by reason of this
Agreement or any other Credit Document. Within five (5) Business Days of the
Administrative Agent receiving actual knowledge (without any duty to
investigate) of a Default, the Administrative Agent will provide written notice
of such Default to the Lenders.

     Section 9.02 Administrative Agent’s Reliance, Etc. Neither the
Administrative Agent nor any of its directors, officers, agents or employees
shall be liable for any action taken or omitted to be taken (including such
Person’s own negligence) by it or them under or in connection with this
Agreement or the other Credit Documents, except for its or their own gross
negligence or willful misconduct. Without limitation of the generality of the
foregoing, the Administrative Agent: (a) may treat the payee of any Note as the
holder thereof until the Administrative Agent receives written notice of the
assignment or transfer thereof signed by such payee and in form satisfactory to
the Administrative Agent; (b) may consult with legal counsel (including counsel
for the Borrower), independent public accountants and other experts selected by
it and shall not be liable for any action taken or omitted to be taken in good
faith by it in accordance with the advice of such counsel, accountants or
experts; (c) makes no warranty or representation to any Lender and shall not be
responsible to any Lender for any statements, warranties or representations made
in or in connection with this Agreement or the other Credit Documents; (d) shall
not have any duty to ascertain or to inquire as to the performance or observance
of any of the terms, covenants or conditions of this Agreement or any other
Credit Document on the part of the Borrower, the Parent or their respective
Subsidiaries or to inspect the property (including the books and records) of the
Borrower, the Parent or their respective Subsidiaries; (e) shall not be
responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any other
Credit Document other than with respect to the Administrative Agent’s execution
of the documents to which the Administrative Agent is a party; and (f) shall
incur no liability under or in respect of this Agreement or any other Credit
Document by acting upon any notice, consent, certificate or other instrument or
writing (which may be by telecopier, telegram, cable or telex) believed by it to
be genuine and signed or sent by the proper party or parties.

     Section 9.03 Each Agent and Its Affiliates. With respect to its Commitment,
the Advances made by it and the Notes issued to it, the Administrative Agent
shall have the same rights and powers under this Agreement as any other Lender
and may exercise the same as though it were not an Agent. The term “Lender” or
“Lenders” shall, unless otherwise expressly indicated, include the
Administrative Agent in its individual capacity as a Lender. The Administrative
Agent, the Lenders and their respective Affiliates may accept deposits from,
lend money to, act as trustee under indentures of, and generally engage in any
kind of business with, the Borrower or any of its Subsidiaries, and any Person
who may do business with or own securities of the Borrower or any such
Subsidiary, all as if the Administrative Agent were not an Administrative Agent
hereunder or the Lenders were not Lenders hereunder and without any duty to
account therefor to the Lenders.

     Section 9.04 Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender and

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based on the financial statements referred to in Section 4.07 and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement.

     Section 9.05 Indemnification. The Lenders severally agree to indemnify the
Administrative Agent, (to the extent not reimbursed by the Borrower), according
to its Pro Rata Share from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be imposed on, incurred
by, or asserted against the Administrative Agent, in any way relating to or
arising out of this Agreement or any action taken or omitted by the
Administrative Agent, under this Agreement or any other Credit Document
(including the Administrative Agent’s own negligence), provided that no Lender
shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Administrative Agent’s gross negligence or willful
misconduct. Without limitation of the foregoing, each Lender agrees to reimburse
the Administrative Agent promptly upon demand for its Pro Rata Share of any
out-of-pocket expenses (including counsel fees) incurred by the Administrative
Agent in connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement or any other Credit Document, to the
extent that the Administrative Agent is not reimbursed for such expenses by the
Borrower.

     Section 9.06 Successor Agent. The Administrative Agent, may resign at any
time by giving written notice thereof to the Lenders and the Borrower and may be
removed at any time with cause by the Required Lenders upon receipt of written
notice from the Required Lenders to such effect. Upon receipt of notice of any
such resignation or removal, the Required Lenders shall have the right to
appoint a successor Administrative Agent. If no successor Administrative Agent
shall have been so appointed, and shall have accepted such appointment, within
30 days after the retiring Administrative Agent’s giving of notice of
resignation or the Required Lenders’ removal of the retiring Administrative
Agent, then the retiring Administrative Agent, may, on behalf of the Lenders and
the Borrower, appoint a successor Administrative Agent, which shall be a
commercial bank meeting the financial requirements of an Eligible Assignee. Upon
the acceptance of any appointment as Administrative Agent, by a successor
Administrative Agent, such successor Administrative Agent, shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent, and the retiring Administrative Agent,
shall be discharged from its duties and obligations under this Agreement and the
other Credit Documents. After any retiring Administrative Agent’s resignation or
removal hereunder as Administrative Agent, the provisions of this Article IX
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was such Administrative Agent, under this Agreement and the other
Credit Documents.

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ARTICLE X
MISCELLANEOUS

     Section 10.01 Amendments, Etc.

       (a) No amendment or waiver of any provision of this Agreement, the Notes,
or any other Credit Document, nor consent to any departure by the Borrower or
any Guarantor therefrom, shall in any event be effective unless the same shall
be in writing and signed by the Administrative Agent, as specified in the
particular provisions of the Credit Documents, and the Borrower, and then such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no amendment shall:
(i) increase the aggregate Commitments of the Lenders, (ii) reduce the principal
of, or interest on, the Notes or any fees or other amounts payable hereunder or
under any other Credit Document or otherwise release the Borrower from any
Obligations, (iii) postpone any date fixed for any payment of principal of, or
interest on, the Notes or any fees or other amounts payable hereunder,
(iv) amend this Section 10.01, (v) amend the definition of “Required Lenders”,
or (vi) release the Parent or any Subsidiary of the Parent or the Borrower
having Property or annual revenues in excess of $7,500,000 from its obligations
under the Guaranty except as contemplated by the provisions of Section 5.09, and
provided, further, that no amendment, waiver or consent shall, unless in writing
and signed by the Administrative Agent, in addition to the Lenders required
above to take such action, affect the rights or duties of the Administrative
Agent, under this Agreement or any other Credit Document.

       (b) In addition, none of the following decisions shall be made without
the prior written consent of the Required Lenders:

       (i) release any Guarantor (except the Parent or any Subsidiary of the
Parent or the Borrower having Property or annual revenues in excess of
$7,500,000) from its obligations under any of the Guaranties except as
contemplated by the provisions of Section 5.09, provided that the Administrative
Agent can, if no Default then exists, release any Subsidiary of the Borrower
which no longer is a party to any Permitted Property Agreement or any Permitted
Housing Agreement or no longer owns any Investments or other Property;    
     (ii) any (A) determination to send notice to the Borrower of, or otherwise
declare, an Event of Default pursuant to Section 8.01 of this Agreement,
(B) determination to accelerate the Obligations pursuant to Section 8.02 of this
Agreement, (C) exercise of remedies under any Credit Document;    
     (iii) any waiver or any amendment to the financial covenants contained in
Article VII of this Agreement or any definitions used therein;          (iv) any
amendment of any of the definitions that are used in the definition of “Leverage
Ratio” or “Senior Leverage Ratio;”

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       (v) any other material waiver or modification of the Credit Documents not
referred to in this Section 10.01, provided that if within ten (10) Business
Days of the Administrative Agent’s approval of a non-material waiver or
modification of the Credit Documents the Required Lenders object in writing to
such waiver or modification, then such waiver or modification shall then not be
effective and shall be subject to the written consent of the Required Lenders;
and          (vi) any amendment of any other provision of a Credit Document
which expressly requires the consent of the Required Lenders.

       (c) Any amendment to a covenant of the Parent or any of its Subsidiaries
or amendment to a definition shall require the Borrower’s written consent.

       (d) If, in connection with any proposed change, waiver, discharge or
termination to any of the provisions of this Agreement which requires unanimous
consent of the Lenders the consent of 51% or more of the Non-Defaulting Lenders
entitled to vote on such proposed change, waiver, discharge or termination is
obtained but the consent of one or more of such other Lenders whose consent is
required is not obtained, then the Borrower shall have the right, so long as all
non-consenting Lenders whose individual consent is required are treated as
described below, to replace each such non-consenting Lender or Lenders with one
or more Eligible Assignees pursuant to Section 2.15 so long as at the time of
such replacement, each such Eligible Assignee consents to the proposed change,
waiver, discharge or termination, provided further, that in any event the
Borrower shall not have the right to replace a Lender solely as a result of the
exercise of such Lender’s rights (and the withholding of any required consent by
such Lender) to increase any of such Lender’s Commitments.

       (e) Notwithstanding the foregoing, the Administrative Agent and the
Borrower (without the consent of any other Lender) may enter into amendments of
any Credit Document solely with respect to corrections of formal defects not
having any economic impact.

     Section 10.02 Notices, Etc. All notices and other communications shall be
in writing (including telecopy or telex) and mailed, telecopied, telexed, hand
delivered or delivered by a nationally recognized overnight courier, (a) if to
the Borrower, at its address at 1010 Wisconsin Avenue, N.W., Washington, D.C.
20007, Attn: Mr. John Emery; (b) if to any Lender, at its Applicable Lending
Office; (c) if to the Administrative Agent, at its address at 399 Park Avenue,
8th floor, New York, new York 10022, Attention Mr. Thomas Buffa, Telephone :
(212) 526- 5153, Facsimile: (646) 758-4672; or, (d) as to each party, at such
other address or teletransmission number as shall be designated by such party in
a written notice to the other parties. All such notices and communications
shall, when mailed, telecopied, telexed or hand delivered or delivered by
overnight courier, be effective three days after deposited in the mails, when
telecopy transmission is completed, when confirmed by telex answer-back or when
delivered, respectively, except that notices and communications to the
Administrative Agent pursuant to Article II or Article IX shall not be effective
until received by the Administrative Agent.

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     Section 10.03 No Waiver; Remedies. No failure on the part of any Lender, or
any Agent, to exercise, and no delay in exercising, any right hereunder or under
any Note shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or the
exercise of any other right. The remedies provided in this Agreement and the
other Credit Documents are cumulative and not exclusive of any remedies provided
by law.

     Section 10.04 Costs and Expenses. The Borrower agrees to pay on demand all
out-of-pocket costs and expenses of the Administrative Agent in connection with
the preparation, execution, delivery, due diligence, administration,
modification and amendment of this Agreement, the Notes and the other Credit
Documents and syndication of the Obligations including, without limitation, (a)
the reasonable fees and out-of-pocket expenses of counsel for the Administrative
Agent, and (b) all reasonable out-of-pocket costs and expenses, if any, of the
Administrative Agent, and each Lender (including, without limitation, reasonable
counsel fees and expenses of the Administrative Agent, and each Lender) in
connection with the enforcement (whether through negotiations, legal proceedings
or otherwise) of this Agreement and the other Credit Documents, and (d) to the
extent not included in the foregoing, the costs of any local counsel, travel
expenses, and any title or Uniform Commercial Code search costs, any flood plain
search costs, insurance consultant costs and other costs usual and customary in
connection with a credit facility of this type.

     Section 10.05 Binding Effect. This Agreement shall become effective when it
shall have been executed by the Borrower and the Administrative Agent, and when
the Administrative Agent shall have, as to each Lender, either received a
counterpart hereof executed by such Lender or been notified by such Lender that
such Lender has executed it and thereafter shall be binding upon and inure to
the benefit of the Borrower, the Administrative Agent, and each Lender and their
respective successors and assigns, except that the Borrower shall not have the
right to assign its rights or delegate its duties under this Agreement or any
interest in this Agreement without the prior written consent of each Lender.

     Section 10.06 Lender Assignments and Participations.

       (a) Assignments. Any Lender may assign to one or more banks or other
entities all or any portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Commitment, its Pro Rata
Share of the Loan Amount owing to it, and the Notes held by it; provided,
however, that:

       (i) each such assignment shall be of a constant, and not a varying,
percentage of all of such Lender’s rights and obligations under this Agreement,

       (ii) the amount of the resulting Commitments of the assigning Lender
(unless it is assigning all its Commitments) and the assignee Lender pursuant to
each such assignment (determined as of the date of the Assignment and Acceptance
with respect to such assignment) shall in no event be less than $5,000,000 in
total, shall in no event be less than $1,000,000 for each Class assigned and
shall be an integral multiple of $1,000,000,

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       (iii) each such assignment shall be to an Eligible Assignee,

       (iv) the parties to each such assignment shall execute and deliver to the
Administrative Agent, for its acceptance and recording in the Register, an
Assignment and Acceptance, together with the Notes subject to such assignment,

       (v) the Administrative Agent shall consent to such assignment, which
consent shall not be unreasonably withheld or delayed, and

       (vi) each Eligible Assignee (other than an Eligible Assignee which is an
Affiliate of the assigning Lender) shall pay to the Administrative Agent a
$3,500 administrative fee; provided that, in the case of contemporaneous
assignments by a Lender to more than one Related Fund (which Related Funds are
not then Lenders hereunder), only a single $3,500 such fee shall be payable for
all such contemporaneous assignments.

Upon such execution, delivery, acceptance and recording, from and after the
effective date specified in each Assignment and Acceptance, which effective date
shall be at least three Business Days after the execution thereof or earlier
such earlier date as agreed to by the Administrative Agent, (A) the assignee
thereunder shall be a party hereto for all purposes and, to the extent that
rights and obligations hereunder have been assigned to it pursuant to such
Assignment and Acceptance, have the rights and obligations of a Lender hereunder
and (B) such Lender thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights and be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all or the remaining
portion of such Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto). Notwithstanding anything herein to the
contrary, (i) any Lender may assign or pledge, as collateral or otherwise, any
of its rights under the Credit Documents to any Federal Reserve Bank and
(ii) any Lender that is an Approved Fund or Related Fund may, without the
consent of the Administrative Agent or the Borrower, pledge all or any portion
of its Advances and Notes to any trustee for, or any other representative of,
holders of obligations owed, or securities issued, by such Approved Fund or
Related Fund, as security for such obligations or securities; provided that
(A) any foreclosure or similar action by such trustee or representative shall be
subject to the provisions of this Section 10.06(a) concerning assignments,
including without limitation the requirement that any assignee of such Notes and
Advances must qualify as an Eligible Assignee and (B) such Lender shall not
require such trustee’s or representative’s consent to any matter under this
Agreement, except (1) for a change in the principal amount of any Note which has
been so pledged, reductions in fees or interest, or extending the Maturity Date
except as permitted in this Agreement or (2) as otherwise consented to by the
Administrative Agent.

       (b) Term of Assignments. By executing and delivering an Assignment and
Acceptance, the Lender thereunder and the assignee thereunder confirm to and
agree with each other and the other parties hereto as follows: (i) other than as
provided in such Assignment and Acceptance, such Lender makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations

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  made in or in connection with this Agreement or the execution, legality,
validity, enforceability, genuineness, sufficiency of value of this Agreement or
any other instrument or document furnished pursuant hereto; (ii) such Lender
makes no representation or warranty and assumes no responsibility with respect
to the financial condition of the Borrower or the Guarantors or the performance
or observance by the Borrower or the Guarantors of any of their obligations
under this Agreement or any other instrument or document furnished pursuant
hereto; (iii) such assignee confirms that it has received a copy of this
Agreement, together with copies of the financial statements referred to in
Sections 4.06 and 5.05, if applicable, and such other documents and information
as it has deemed appropriate to make its own credit analysis and decision to
enter into such Assignment and Acceptance; (iv) such assignee will,
independently and without reliance upon the Administrative Agent, such Lender or
any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement; (v) such assignee appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement as are delegated to the
Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto; and (vi) such assignee agrees that it will
perform in accordance with their terms all of the obligations which by the terms
of this Agreement are required to be performed by it as a Lender.

       (c) The Register. The Administrative Agent shall maintain at its address
referred to in Section 10.02 a copy of each Assignment and Acceptance delivered
to and accepted by it and a register for the recordation of the names and
addresses of the Lenders and the Commitments of, and principal amount of the
Advances owing to, each Lender from time to time (the “Register”). The entries
in the Register shall be conclusive and binding for all purposes, absent
manifest error, and the Borrower, the Administrative Agent, and the Lenders may
treat each Person whose name is recorded in the Register as a Lender hereunder
for all purposes of this Agreement. The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to
time upon reasonable prior notice.

       (d) Procedures. Upon its receipt of an Assignment and Acceptance executed
by a Lender and an Eligible Assignee, together with the Note or Notes subject to
such assignment, the Administrative Agent shall, if such Assignment and
Acceptance has been completed and is in substantially the form of the attached
Exhibit C, (i) accept such Assignment and Acceptance, (ii) record the
information contained therein in the Register, and (iii) give prompt notice
thereof to the Borrower. Within five Business Days after its receipt of such
notice, the Borrower, at its own expense, shall execute and deliver to the
Administrative Agent in exchange for the surrendered Note or Notes, a new Note
or Notes payable to the order of such Eligible Assignee in amount equal to,
Commitment and the Pro Rata Shares of the Loan Amount assumed by it pursuant to
such Assignment and Acceptance, and if the assigning Lender has retained any
Commitment hereunder, a new Note or Notes payable to the order of such Lender in
an amount equal to, respectively, the Commitments and the Pro Rata Shares of
outstanding Loan Amount retained by it hereunder. Such new Notes shall be dated
the date of the original Notes

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  executed pursuant to this Agreement and shall otherwise be in substantially
the form of the attached Exhibit A.

       (e) Participations. Each Lender may sell participations to one or more
banks or other entities in or to all or a portion of its rights and obligations
under this Agreement (including, without limitation, all or a portion of its
Commitments, the Pro Rata Shares of the Loan Amount owing to it, and the Notes
held by it); provided, however, that (i) such Lender’s obligations under this
Agreement (including, without limitation, its Commitments to the Borrower
hereunder) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iii) such Lender shall remain the holder of any such Notes for all purposes of
this Agreement, (iv) the Borrower, the Administrative Agent, and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement,
(v) such Lender shall not require the participant’s consent to any matter under
this Agreement, except for change in the principal amount of any Note in which
the participant has an interest, reductions in fees or interest, or extending
the Maturity Date except as permitted in this Agreement, and (vi) such Lender
shall give prompt notice to the Borrower of each such participation sold by such
Lender. The Borrower hereby agrees that participants shall have the same rights
under Sections 2.08, 2.09, 2.11(c), and 10.07 hereof as the Lender to the extent
of their respective participations.

       (f) Confidentiality. Each Lender agrees to preserve the confidentiality
of any confidential information relating to the Parent, the Borrower and their
respective Subsidiaries received by Lender; provided that each Lender may
furnish any such confidential information in the possession of such Lender from
time to time to (i) assignees and participants (including prospective assignees
and participants), (ii) its attorneys, accountants, regulators, the National
Association of Insurance Commissioners, governmental authorities and any
self-governing organization to which is a member, (iii) any direct or indirect
contractual counterparty to such Lender in swap agreements or such contractual
counterparty’s professional advisor and (iv) the Related Funds, Affiliates,
directors, partners, officers, employees of such Person or its Affiliates or
Related Funds; provided that, prior to any such disclosure, such Person shall
agree in writing to preserve the confidentiality of any confidential information
relating to the Borrower and its Subsidiaries received by it from or on behalf
of such Lender.

     Section 10.07 Indemnification. The Borrower shall indemnify the
Administrative Agent, the Lenders (including any lender which was a Lender
hereunder prior to any full assignment of its Commitment), any assignees and
participants permitted hereunder, and each affiliate thereof and their
respective directors, officers, employees and agents from, and discharge,
release, and hold each of them harmless against, any and all losses,
liabilities, claims or damages to which any of them may become subject, insofar
as such losses, liabilities, claims or damages arise out of or result from (i)
any actual or proposed use by the Borrower or any Affiliate of the Borrower of
the proceeds of any Advance, (ii) any breach by the Borrower or any Guarantor of
any provision of this Agreement or any other Credit Document, (iii) any
investigation, litigation or other proceeding (including any threatened
investigation or proceeding) relating to the foregoing,

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or (iv) any Environmental Claim or requirement of Environmental Laws concerning
or relating to the present or previously-owned or operated properties, or the
operations or business, of the Borrower or any of its Subsidiaries, and the
Borrower shall reimburse the Administrative Agent, and each Lender, and each
affiliate thereof and their respective directors, officers, employees and
agents, upon demand for any reasonable out-of-pocket expenses (including legal
fees) incurred in connection with any such investigation, litigation or other
proceeding; and expressly including any such losses, liabilities, claims,
damages, or expense incurred by reason of such indemnified Person’s own
negligence, but excluding any such losses, liabilities, claims, damages or
expenses incurred by reason of the gross negligence or willful misconduct of the
Person to be indemnified.

     Section 10.08 Execution in Counterparts. 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.

     Section 10.09 Survival of Representations, Indemnifications, etc. All
representations and warranties contained in this Agreement or made in writing by
or on behalf of the Borrower in connection herewith shall survive the execution
and delivery of this Agreement and the Credit Documents, the making of the
Advances and any investigation made by or on behalf of the Lenders, none of
which investigations shall diminish any Lender’s right to rely on such
representations and warranties. All obligations of the Borrower provided for in
Sections 2.08, 2.09, 2.11(c), 9.05 and 10.07 shall survive any termination of
this Agreement and repayment in full of the Obligations.

     Section 10.10 Severability. In case one or more provisions of this
Agreement or the other Credit Documents shall be invalid, illegal or
unenforceable in any respect under any applicable law, the validity, legality
and enforceability of the remaining provisions contained herein or therein shall
not be affected or impaired thereby.

     Section 10.11 Usury Not Intended. It is the intent of the Borrower and each
Lender in the execution and performance of this Agreement and the other Credit
Documents to contract in strict compliance with applicable usury laws, including
conflicts of law concepts, governing the Advances of each Lender including such
applicable laws of the State of New York and the United States of America from
time to time in effect. In furtherance thereof, the Lenders and the Borrower
stipulate and agree that none of the terms and provisions contained in this
Agreement or the other Credit Documents shall ever be construed to create a
contract to pay, as consideration for the use, forbearance or detention of
money, interest at a rate in excess of the Maximum Rate and that for purposes
hereof “interest” shall include the aggregate of all charges which constitute
interest under such laws that are contracted for, charged or received under this
Agreement; and in the event that, notwithstanding the foregoing, under any
circumstances the aggregate amounts taken, reserved, charged, received or paid
on the Advances, include amounts which by applicable law are deemed interest
which would exceed the Maximum Rate, then such excess shall be deemed to be a
mistake and each Lender receiving same shall credit the same on the principal of
its Notes (or if such Notes shall have been paid in full, refund said excess to
the Borrower). In the event that the maturity of the Notes is accelerated by
reason of any election of the holder thereof resulting from any Event of Default
under this Agreement or otherwise, or in

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the event of any required or permitted prepayment, then such consideration that
constitutes interest may never include more than the Maximum Rate and excess
interest, if any, provided for in this Agreement or otherwise shall be canceled
automatically as of the date of such acceleration or prepayment and, if
theretofore paid, shall be credited on the applicable Notes (or, if the
applicable Notes shall have been paid in full, refunded to the Borrower). In
determining whether or not the interest paid or payable under any specific
contingencies exceeds the Maximum Rate, the Borrower and the Lenders shall to
the maximum extent permitted under applicable law amortize, prorate, allocate
and spread in equal parts during the period of the full stated term of the Notes
all amounts considered to be interest under applicable law at any time
contracted for, charged, received or reserved in connection with the
Obligations. The provisions of this Section shall control over all other
provisions of this Agreement or the other Credit Documents which may be in
apparent conflict herewith.

     Section 10.12 GOVERNING LAW. THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS
SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED, AND ANY DISPUTE BETWEEN THE
BORROWER, THE ADMINISTRATIVE AGENT, ANY LENDER, OR ANY INDEMNITEE ARISING OUT
OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED
BETWEEN THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER CREDIT
DOCUMENTS, AND WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE
RESOLVED IN ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING, WITHOUT LIMITATION,
SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW, BUT OTHERWISE WITHOUT REGARD TO
THE CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF NEW YORK.

     Section 10.13 CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL.

       (A) EXCLUSIVE JURISDICTION. EXCEPT AS PROVIDED IN SUBSECTION (B), EACH OF
THE PARTIES HERETO AGREES THAT ALL DISPUTES AMONG THEM ARISING OUT OF, CONNECTED
WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN
CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS WHETHER
ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED EXCLUSIVELY
BY STATE OR FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK, BUT THE PARTIES HERETO
ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT
LOCATED OUTSIDE OF NEW YORK, NEW YORK. EACH OF THE PARTIES HERETO WAIVES IN ALL
DISPUTES BROUGHT PURSUANT TO THIS SUBSECTION (A) ANY OBJECTION THAT IT MAY HAVE
TO THE LOCATION OF THE COURT CONSIDERING THE DISPUTE.

       (B) OTHER JURISDICTIONS. THE BORROWER AGREES THAT ANY AGENT, ANY LENDER
OR ANY INDEMNITEE SHALL HAVE THE RIGHT TO PROCEED AGAINST THE BORROWER OR ITS
PROPERTY IN A

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  COURT IN ANY LOCATION TO ENABLE SUCH PERSON TO (1) OBTAIN PERSONAL
JURISDICTION OVER THE BORROWER OR (2) ENFORCE A JUDGMENT OR OTHER COURT ORDER
ENTERED IN FAVOR OF SUCH PERSON. THE BORROWER AGREES THAT IT WILL NOT ASSERT ANY
PERMISSIVE COUNTERCLAIMS IN ANY PROCEEDING BROUGHT BY SUCH PERSON TO ENFORCE A
JUDGMENT OR OTHER COURT ORDER IN FAVOR OF SUCH PERSON. THE BORROWER WAIVES ANY
OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT IN WHICH SUCH PERSON HAS
COMMENCED A PROCEEDING DESCRIBED IN THIS SUBSECTION (B).

       (C) SERVICE OF PROCESS. THE BORROWER WAIVES PERSONAL SERVICE OF ANY
PROCESS UPON IT AND IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY WRITS,
PROCESS OR SUMMONSES IN ANY SUIT, ACTION OR PROCEEDING BY THE MAILING THEREOF BY
ANY AGENT OR THE LENDERS BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO
THE BORROWER ADDRESSED AS PROVIDED HEREIN. NOTHING HEREIN SHALL IN ANY WAY BE
DEEMED TO LIMIT THE ABILITY OF ANY AGENT OR THE LENDERS TO SERVE ANY SUCH WRITS,
PROCESS OR SUMMONSES IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. THE
BORROWER IRREVOCABLY WAIVES ANY OBJECTION (INCLUDING, WITHOUT LIMITATION, ANY
OBJECTION OF THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS) WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH
ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH IN ANY
JURISDICTION SET FORTH ABOVE.

       (D) WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES
ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING
IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED TO OR
INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH. EACH OF THE PARTIES HERETO AGREES AND CONSENTS THAT ANY
SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A
COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

       (E) WAIVER OF BOND. THE BORROWER WAIVES THE POSTING OF ANY BOND OTHERWISE
REQUIRED OF ANY PARTY HERETO IN

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  CONNECTION WITH ANY JUDICIAL PROCESS OR PROCEEDING TO REALIZE ON THE
COLLATERAL ENFORCE ANY JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF SUCH
PARTY, OR TO ENFORCE BY SPECIFIC PERFORMANCE, TEMPORARY RESTRAINING ORDER,
PRELIMINARY OR PERMANENT INJUNCTION, THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT.

       (F) ADVICE OF COUNSEL. EACH OF THE PARTIES REPRESENTS TO EACH OTHER PARTY
HERETO THAT IT HAS DISCUSSED THIS AGREEMENT AND, SPECIFICALLY, THE PROVISIONS OF
THIS SECTION 10.13 AND SECTION 10.20, WITH ITS COUNSEL.

     Section 10.14 Knowledge of Borrower. For purposes of this Agreement,
“knowledge of the Borrower” means the actual knowledge of any of the executive
officers and all other Responsible Officers of the Parent.

     Section 10.15 Lenders Not in Control. None of the covenants or other
provisions contained in the Credit Documents shall or shall be deemed to, give
the Lenders the rights or power to exercise control over the affairs and/or
management of the Borrower, any of its Subsidiaries or any Guarantor, the power
of the Lenders being limited to the right to exercise the remedies provided in
the Credit Documents; provided, however, that if any Lender becomes the owner of
any Ownership Interests in any Person, whether through foreclosure or otherwise,
such Lender shall be entitled (subject to requirements of law) to exercise such
legal rights as it may have by being owner of such Ownership Interests in such
Person.

     Section 10.16 Headings Descriptive. The headings of the several Sections
and paragraphs of the Agreement are inserted for convenience only and shall not
in any way affect the meaning or construction of any provision of this
Agreement.

     Section 10.17 Time is of the Essence. Time is of the essence under the
Credit Documents.

     Section 10.18 Intentionally Deleted.

     Section 10.19 Judgment Currency. The obligations of the Borrowers hereunder
and under the Notes to make payments in Dollars, shall not be discharged or
satisfied by any tender or recovery pursuant to any judgment expressed in or
converted into any currency other than Dollar.

     Section 10.20 No Consequential Damages. NOTWITHSTANDING ANYTHING CONTAINED
TO THE CONTRARY IN ANY OTHER PROVISION OF THIS AGREEMENT, EACH PERSON PARTY
HERETO FOR ITSELF AND ON BEHALF OF ITS AFFILIATES AGREES THAT THE RECOVERY OF
ANY DAMAGES SUFFERED OR INCURRED AS A RESULT OF ANY BREACH BY ANY PERSON OF ANY
OF ITS REPRESENTATIONS, WARRANTIES OR OBLIGATIONS UNDER THIS AGREEMENT OR ANY
OTHER CREDIT DOCUMENT SHALL BE LIMITED TO THE ACTUAL DAMAGES SUFFERED OR
INCURRED AS A RESULT OF THE BREACH BY THE BREACHING PARTY OF ITS

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REPRESENTATIONS, WARRANTIES OR OBLIGATIONS HEREUNDER OR UNDER ANY OTHER CREDIT
DOCUMENT AND IN NO EVENT SHALL THE BREACHING PARTY BE LIABLE TO ANY
NON-BREACHING PARTY FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR
PUNITIVE DAMAGES (INCLUDING, WITHOUT LIMITATION, ANY DAMAGES ON ACCOUNT OF LOST
PROFITS OR OPPORTUNITIES OR LOST OR DELAYED PRODUCTION) SUFFERED OR INCURRED BY
THE NON-BREACHING PARTY AS A RESULT OF THE BREACH BY THE BREACHING PARTY OF ANY
OF ITS REPRESENTATIONS, WARRANTIES OR OBLIGATIONS HEREUNDER OR UNDER ANY OTHER
CREDIT DOCUMENT.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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SIGNATURE PAGE OF SUBORDINATE UNSECURED TERM LOAN AGREEMENT

     EXECUTED as of the date first referenced above.

          BORROWER:     MERISTAR H & R OPERATING COMPANY, L.P.     By:     
Interstate Hotels & Resorts, Inc. (fka MeriStar Hotels & Resorts, Inc.), its
general partner     By:  

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  Name:  

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  Title:  

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SIGNATURE PAGE OF SENIOR SECURED CREDIT AGREEMENT

        LEHMAN COMMERCIAL PAPER INC.     By:  

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  Name:  

--------------------------------------------------------------------------------

  Title:  

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SIGNATURE PAGE OF SENIOR SECURED CREDIT AGREEMENT

        LEHMAN BROTHERS INC.     By:  

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  Name:  

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  Title:  

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EXHIBIT A

FORM OF NOTE

              $           ,2003    

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

   

     For value received, the undersigned MeriStar H & R Operating Company, L.P.,
a Delaware limited partnership, as the Borrower, hereby promises to pay to the
order of           , as the Lender, the principal amount of and
               /100 Dollars ($           ), together with interest on the unpaid
principal amount of this Note from the date advanced until such principal amount
is paid in full, at such interest rates, and at such times, as are specified in
the Credit Agreement.

     This Note is one of the Notes referred to in, and is entitled to the
benefits of, and is subject to the terms of, the Subordinate Unsecured Term Loan
Agreement dated as of January 10, 2003 (as the same may be amended or modified
from time to time, the “Credit Agreement”), among the Borrower, the Lenders,
Lehman Commercial Paper, Inc., as Administrative Agent, and Lehman Brothers,
Inc., as Lead Arranger and Book Runner. Capitalized terms used in this Note that
are defined in the Credit Agreement and not otherwise defined in this Note have
the meanings assigned to such terms in the Credit Agreement. The Credit
Agreement, among other things, contains provisions for acceleration of the
maturity of this Note upon the happening of certain events stated in the Credit
Agreement and for prepayments of principal prior to the maturity of this Note
upon the terms and conditions specified in the Credit Agreement.

     Both principal and interest are payable in Dollars, the lawful money of the
United States of America, to the Administrative Agent at 745 Seventh Avenue,
16th Floor, New York, New York 10019, Fax No. 212-526-6643, Phone No.
212-526-6590, Attn: Diane Albanese, (or at such other location or address as may
be specified by the Administrative Agent to the Borrower) in same day funds
without set-off, deduction or counterclaim. The Lender shall record all payments
of principal made under this Note, but no failure of the Lender to make such
recordings shall affect the Borrower’s repayment obligations under this Note.

     Except as specifically provided in the Credit Agreement, the Borrower
hereby waives presentment, demand, protest, notice of intent to accelerate,
notice of acceleration, and any other notice of any kind. No failure to
exercise, and no delay in exercising, any rights hereunder on the part of the
holder of this Note shall operate as a waiver of such rights.

 

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     This Note shall be governed by, and construed and enforced in accordance
with, the laws of the state of New York.

                  MERISTAR H & R OPERATING COMPANY, L.P.                   By:  
Interstate Hotels & Resorts, Inc. (fka
MeriStar Hotels & Resorts, Inc.), its
general partner                       By:  

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                      Name:  

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                      Title:  

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EXHIBIT B

FORM OF ADJUSTMENT REPORT

     This Adjustment Report (“Adjustment Report”) is executed this      day of
     , 20     and is prepared pursuant to Section 2.14 of that certain
Subordinate Unsecured Term Loan Agreement (as amended or modified from time to
time, the “Credit Agreement”) between MERISTAR H & R OPERATING COMPANY, L.P., a
Delaware limited partnership (the “Borrower”); LEHMAN COMMERCIAL PAPER, INC., as
the Administrative Agent, LEHMAN BROTHERS, INC., as Lead Arranger and Book
Runner; and the other lenders party thereto. Capitalized terms used herein but
not otherwise defined herein shall have the meanings specified by the Agreement.

     This Report is issued following the [making, acquisition, disposition or
incurrence] by the [Parent, Borrower or its Subsidiary] (the “Adjustment Event”)
of the following Investment or Indebtedness:

     Pursuant to Section 2.14 of the Credit Agreement, following each making,
acquisition or disposition by the Parent or its Subsidiary of an Investment with
an Investment Amount in excess of $5,000,000 or the incurrence by the Parent or
its Subsidiary of additional Indebtedness (excluding any Obligations) in excess
of $5,000,000, the Leverage Ratio and the Senior Leverage Ratio shall be
adjusted accordingly.

                      The Investment Amount for the Investment is:   $

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                          The Leverage Ratio for the Parent, prior to the
Adjustment Event is set forth in 3 below, based on the ratio of:                
          1.   Parent’s Total Indebtedness as of the immediately preceding
Status Reset Date:   $                

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                          2.   Adjusted EBITDA of Parent and the Parent’s
Subsidiaries
(on a Consolidated basis) for the preceding Rolling Period:   $                

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                          3.   Ratio of 1 to 2 above:                    

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                          The Leverage Ratio for the Parent, immediately
following the Adjustment Event is set forth in 3 below, based on the ratio of:  
                        1.   Parent’s Total Indebtedness as of the date of the
Adjustment
Event taking into account the Adjustment Event:   $                

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                          2.   Adjusted EBITDA of Parent and the Parent’s
Subsidiaries
(on a Consolidated basis) for the preceding Rolling Period:   $                

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                          3.   Ratio of 1 to 2 above:                    

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     Required by the Agreement:

 

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          Beginning Date of   Ending Date of     Applicable Period   Applicable
Period   Leverage Ratio

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Closing Date   The day immediately prior to the Status Reset Date during the
Fiscal Quarter commencing October 1, 2002   5.50 to 1.00

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The Status Reset
Date during the Fiscal Quarter commencing October 1, 2002   The day immediately
prior to the Status Reset Date during the Fiscal Quarter commencing January 1,
2003   5.00 to 1.00

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The Status Reset
Date during the Fiscal Quarter commencing January 1, 2003   The day immediately
prior to the Status Reset Date during the Fiscal Quarter commencing July 1, 2003
  4.75 to 1.00

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The Status Reset Date during the Fiscal Quarter commencing July 1, 2003   The
day immediately prior to the Status Reset Date during the Fiscal Quarter
commencing October 1, 2003   4.25 to 1.00

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The Status Reset
Date during the Fiscal Quarter commencing October 1, 2003   The day immediately
prior to the Status Reset Date during the Fiscal Quarter commencing January 1,
2004   4.00 to 1.00

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The Status Reset
Date during the Fiscal Quarter commencing January 1, 2004   No ending date  
3.50 to 1.00

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                      The Senior Leverage Ratio for the Parent, prior to the
Adjustment Event   is set forth in 3 below, based on the ratio of:       1.  
Parent’s Senior Indebtedness as of the immediately preceding Status Reset Date:
  $            

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      2.   Adjusted EBITDA of Parent and the Parent’s Subsidiaries (on a
Consolidated basis) for the preceding Rolling Period:   $            

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      3.   Ratio of 1 to 2 above:                

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      The Senior Leverage Ratio for the Parent, immediately following the
Adjustment Event is set forth in 3 below, based on the ratio of:       1.  
Parent’s Senior Indebtedness as of the date of the Adjustment Event taking into
account the Adjustment Event:   $            

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      2.   Adjusted EBITDA of Parent and the Parent’s Subsidiaries (on a
Consolidated basis) for the preceding Rolling Period:   $            

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      3.   Ratio of 1 to 2 above:                

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     Required by the Agreement:

          Beginning Date of   Ending Date of     Applicable Period   Applicable
Period   Senior Leverage Ratio

--------------------------------------------------------------------------------

Closing Date   The day immediately prior to the Status Reset Date during the
Fiscal Quarter commencing January 1, 2003   4.00 to 1.00

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The Status Reset
Date during the Fiscal Quarter commencing January 1, 2003   The day immediately
prior to the Status Reset Date during the Fiscal Quarter commencing January 1,
2004   3.25 to 1.00

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The Status Reset
Date during the Fiscal Quarter commencing January 1, 2004   No ending date  
2.50 to 1.00

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     The Borrower has caused this Adjustment Report to be executed this      
day of      , 20     .

                  MERISTAR H & R OPERATING COMPANY, L.P.                   By:  
Interstate Hotels & Resorts, Inc. (fka
MeriStar Hotels & Resorts, Inc.), its
general partner                       By:  

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        Name:  

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        Title:  

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EXHIBIT C

FORM OF ASSIGNMENT AND ACCEPTANCE

DATED _______, 20___

     Reference is made to the Subordinate Unsecured Term Loan Agreement dated as
of January [10], 2003 (as the same may be amended or modified from time to time,
the “Credit Agreement”) among MeriStar H & R Operating Company, L.P., a Delaware
limited partnership (the “Borrower”), the Lenders; LEHMAN COMMERCIAL PAPER,
INC., as the Administrative Agent, LEHMAN BROTHERS, INC., as Lead Arranger and
Book Runner; and the other lenders party thereto. Capitalized terms not
otherwise defined in this Assignment and Acceptance shall have the meanings
assigned to them in the Credit Agreement.

     Pursuant to the terms of the Credit Agreement,      (“Assignor”) wishes to
assign and delegate certain of its rights and obligations under the Credit
Agreement. Therefore, Assignor,      (“Assignee”), and the Administrative Agent
agree as follows:

1.   As of the Effective Date (as defined below), the Assignor hereby sells and
assigns and delegates to the Assignee, and the Assignee hereby purchases and
assumes from the Assignor, without recourse to the Assignor and without
representation or warranty except for the representations and warranties
specifically set forth in clauses (i)-(v) of Section 2, a [     ] %1 interest in
and to all of the Assignor’s rights and obligations under the Credit Agreement
in connection with Assignor’s Commitment, the Advance owing to the Assignor, and
the Note held by the Assignor (if Assignor possesses a Note)].   2.   The
Assignor (i) represents and warrants that, prior to executing this Assignment
and Acceptance, its Commitment is $     and the aggregate outstanding principal
amount of the Loan owed to it by the Borrower is $     ; (ii) represents and
warrants that it is the legal and beneficial owner of the interest being
assigned by it hereunder and that such interest is free and clear of any adverse
claim; (iv) makes no representation or warranty and assumes no responsibility
with respect to any statements, warranties, or representations made in or in
connection with the Credit Agreement or any other Credit Document or the
execution, legality, validity, enforceability, genuineness, sufficiency, or
value of the Credit Agreement or any other Credit Document or any other
instrument or document furnished pursuant thereto; (v) makes no representation
or warranty and assumes no responsibility with respect to the financial
condition of the Borrower or any Guarantor or the performance or observance by
the Borrower or any Guarantor of any of its obligations under the Credit
Agreement or any other Credit Document or any other instrument or document
furnished pursuant thereto; [and (vi) attaches the Note referred to in paragraph
1 above and requests that the Administrative Agent exchange such note for a new
Note, dated      ]. 200     in the principal amount of $     , payable to the
order of the Assignee.   3.   The Assignee (i) confirms that it has received a
copy of the Credit Agreement, together with copies of the financial statements
referred to in Section 5.05 thereof and such other documents and

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    1 Specify percentage in no more than 5 decimal points.

 

--------------------------------------------------------------------------------

 

    information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Acceptance; (ii) agrees that it will,
independently and without reliance upon the Administrative Agent or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Credit Agreement or any other Credit Document; (iii) appoints
and authorizes the Administrative Agent to take such action as administrative
agent on its behalf and to exercise such powers under the Credit Agreement and
any other Credit Document as are delegated to the Administrative Agent by the
terms thereof, together with such powers as are reasonably incidental thereto;
(iv) agrees that it will perform in accordance with their terms all of the
obligations which by the terms of the Credit Agreement or any other Credit
Document are required to be performed by it as a Lender; (v) specifies as its
Domestic Lending Office, Eurodollar Lending Office and credit contact address
the offices set forth beneath its name on the signature pages hereof;
(vi) attaches the forms prescribed by the Internal Revenue Service of the United
States certifying as to the Assignee’s status for purposes of determining
exemption from United States withholding taxes with respect to all payments to
be made to the Assignee under the Credit Agreement and its Notes or such other
documents as are necessary to indicate that all such payments are subject to
such rates at a rate reduced by an applicable tax treaty2, and (viii) represents
that it is an Eligible Assignee.   4.   The effective date for this Assignment
and Acceptance shall be      (the “Effective Date”)3 and following the execution
of this Assignment and Acceptance, the Administrative Agent will record it in
the Register pursuant to Section 10.06 of the Credit Agreement.   5.   Upon such
recording, and as of the Effective Date, (i) the Assignee shall be a party to
the Credit Agreement for all purposes, and, to the extent provided in this
Assignment and Acceptance, have the rights and obligations of a Lender
thereunder and (ii) the Assignor shall, to the extent provided in this
Assignment and Acceptance, relinquish its rights (other than rights against the
Borrower pursuant to Sections 2.09, 2.11(c) and 9.07 of the Credit Agreement,
which shall survive this assignment) and be released from its obligations under
the Credit Agreement.   6.   Upon such recording, from and after the Effective
Date, the Administrative Agent shall make all payments under the Credit
Agreement and the Notes in respect of the interest assigned hereby (including,
without limitation, all payments of principal, interest, and commitment fees) to
the Assignee. The Assignor and Assignee shall make all appropriate adjustments
in payments under the Credit Agreement and the Notes for periods prior to the
Effective Date directly between themselves.   7.   This Assignment and
Acceptance shall be governed by, and construed and enforced in accordance with,
the laws of the State of New York.

     The parties hereto have caused this Assignment and Acceptance to be duly
executed as of the date first above written.

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    2 If the Assignee is organized under the laws of a jurisdiction outside the
United States.       3 See Section 10.06. Such date shall be at least three
Business Days after the execution of this Assignment and Acceptance.

 

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                [ASSIGNOR]               By:
Name:
Title:  

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              Address:  

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              Attention:
Telecopy:
Telephone:  

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                [ASSIGNEE]               By:
Name:
Title:  

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              Domestic Lending Office:               Address:  

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              Attention:
Telecopy:
Telephone:  

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              Eurodollar Lending Office:               Address:  

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              Attention:
Telecopy:
Telephone:  

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              Credit Contact Address:               Address:  

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              Attention:
Telecopy:
Telephone:  

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              Société Générale,
as Administrative Agent               By:
Name:
Title:  

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                Address:   2001 Ross Avenue
Suite 4900
Dallas, Texas 75201               Attention: Thomas K. Day
Telecopy: (214) 979-2727
Telephone: (24) 979-2777

 

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EXHIBIT D

FORM OF COMPLIANCE CERTIFICATE

     This Compliance Certificate is executed this      of      , 200     and is
prepared pursuant to that certain Subordinate Unsecured Term Loan Agreement (as
amended or modified from time to time, the “Agreement”) between MERISTAR H & R
OPERATING COMPANY, L.P., a Delaware limited partnership (the “Borrower”); LEHMAN
COMMERCIAL PAPER, INC., as the Administrative Agent, LEHMAN BROTHERS, INC., as
Lead Arranger and Book Runner; and the other lenders party thereto. Capitalized
terms used herein but not otherwise defined herein shall have the meanings
specified by the Agreement.

1.   Representations, Covenants, Defaults: Borrower hereby certifies to the
Administrative Agent and the Lenders, effective as of the date of execution of
this Compliance Certificate, as follows:

  1.1   Covenants. All covenants of Borrower set forth in Articles V and VI of
the Agreement required to be performed as of the date hereof have been performed
and maintained in all material respects, and such covenants continue to be
performed and maintained as of the execution date of this certificate, except as
follows:     1.2   Representations and Warranties. All representations and
warranties of Borrower set forth in Article IV of the Agreement are true and
correct in all material respects as of the execution date of this certificate,
except as follows:     1.3   Event of Default. There exists no Event of Default
except as follows:

2.   Operating Covenants. Borrower hereby certifies to the Administrative Agent
and the Lenders that the amounts and calculations made hereunder pursuant to
Article VII of the Agreement are true and correct.

  2.1   Interest Coverage Ratio (Section 7.01 of the Agreement).

    The Interest Coverage Ratio for the Parent, for the Rolling Period ending on
     , 200     is as set forth in (c) below, based on the ratio of:

                                        (a)   Parent’s Adjusted EBITDA (on a
Consolidated basis):   $                

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                          (b)   Parent’s Interest Expense:   $                

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                          (c)   Ratio of (a) to (b) above:                    

--------------------------------------------------------------------------------

   

      Required by the Agreement:         The Parent shall maintain at the end of
each Rolling Period (a) for the Rolling Period ending on September 30, 2002, an
Interest Coverage Ratio of not less than 1.75 to 1.00, (b) for the Rolling
Periods ending on December 31, 2002 through September, 2003, an Interest
Coverage Ratio of not less than 2.25 to 1.00, and (c)

 

--------------------------------------------------------------------------------

 

      for any Rolling Period thereafter, an Interest Coverage Ratio of not less
than 2.50 to 1.00.     2.2   Senior Interest Coverage Ratio (Section 7.02 of the
Agreement).         The Senior Interest Coverage Ratio for the Parent, for the
Rolling Period ending on      , 200     , is as set forth in (c) below, based on
the ratio of:

                      (a)   Parent’s Adjusted EBITDA (on a Consolidated basis):
  $                    

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                                (b)   Parent’s Interest Expense pertaining to
Senior Indebtedness:   $                  

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                                (c)   Ratio of (a) to (b) above:                
       

--------------------------------------------------------------------------------

     

      Required by the Agreement:         The Parent shall maintain at the end of
each Rolling Period, (a) for the Rolling Period ending on September 30, 2002, a
Senior Interest Coverage Ratio of not less than 3.00 to 1.00 and (b) for any
Rolling Period thereafter, a Senior Interest Coverage Ratio of not less than
3.50 to 1.00.     2.3   Leverage Ratio (Section 7.03 of the Agreement).        
The Leverage Ratio for the Parent, as of      , 200     (the Status Reset Date
for the current Fiscal Quarter) based on the Parent’s Total Indebtedness as of
such Status Reset Date and the Parent’s Adjusted EBITDA for the Rolling Period
ending on      , 200     , is set forth in (c) below, based on the         ratio
of:

                      (a)   Parent’s Total Indebtedness:   $                    

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                                (b)   Parent’s Adjusted EBITDA (on a
Consolidated basis):   $                  

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                                (c)   Ratio of (a) to (b) above:                
       

--------------------------------------------------------------------------------

     

 

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     Required by the Agreement:

          Beginning Date of   Ending Date of     Applicable Period   Applicable
Period   Leverage Ratio

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Closing Date   The day immediately prior to the Status Reset Date during the
Fiscal Quarter commencing October 1, 2002   6.00 to 1.00

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The Status Reset
Date during the Fiscal Quarter commencing October 1, 2002   The day immediately
prior to the Status Reset Date during the Fiscal Quarter commencing January 1,
2003   5.50 to 1.00

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The Status Reset
Date during the Fiscal Quarter commencing January 1, 2003   The day immediately
prior to the Status Reset Date during the Fiscal Quarter commencing July 1, 2003
  5.25 to 1.00

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The Status Reset Date during the Fiscal Quarter commencing July 1, 2003   The
day immediately prior to the Status Reset Date during the Fiscal Quarter
commencing October 1, 2003   4.75 to 1.00

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The Status Reset
Date during the Fiscal Quarter commencing October 1, 2003   The day immediately
prior to the Status Reset Date during the Fiscal Quarter commencing January 1,
2004   4.50 to 1.00

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The Status Reset
Date during the Fiscal Quarter commencing January 1, 2004   No ending date  
4.00 to 1.00

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  2.4   Senior Leverage Ratio (Section 7.04 of the Agreement).         The
Senior Leverage Ratio for the Parent, as of      , 200      (the Status Reset
Date for the current Fiscal Quarter) based on the Parent’s Total Indebtedness as
of such Status Reset Date and the Parent’s Adjusted EBITDA for the Rolling
Period ending on      , 200     , is set forth in (c) below, based on the      
  ratio of:

                      (a)   Parent’s Senior Indebtedness:   $                

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        (b)   Parent’s Adjusted EBITDA (on a Consolidated basis):   $          
     

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                      (c)   Ratio of (a) to (b) above:                    

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     Required by the Agreement:

          Beginning Date of   Ending Date of     Applicable Period   Applicable
Period   Senior Leverage Ratio

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Closing Date   The day immediately prior to the Status Reset Date during the
Fiscal Quarter commencing January 1, 2003   4.00 to 1.00

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The Status Reset
Date during the Fiscal Quarter commencing January 1, 2003   The day immediately
prior to the Status Reset Date during the Fiscal Quarter commencing January 1,
2004   3.25 to 1.00

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The Status Reset
Date during the Fiscal Quarter commencing January 1, 2004   No ending date  
2.50 to 1.00

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  2.5   Maintenance of Net Worth (Section 7.05 of the Agreement).         The
Adjusted Net Worth for the Parent, as of the Rolling Period ending on      ,
200     , is as set forth in (d) below, based on the sum of:

                      (a)   Parent’s Net Worth (determined in accordance with
GAAP):   $                

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                        (b)   minority interest of Parent (determined in
accordance with GAAP):   $                

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                          (c)   Sum of (a) and (b) above:   $              

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                          The Minimum Net Worth for the Parent, as of the
Rolling Period ending on _____________, 200__, is as set forth in (e) below,
based upon the total of (a) plus (b) plus (c) minus (d):                        
  (a)   $75,000,000                               (b)   75% of the aggregate net
proceeds received by the Parent or any of its Subsidiaries after the date of the
Agreement in connection with any Capitalization Events taken as a whole,
including without limitation in connection with the acquisition of any
Investment or other Property:   $                

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                      (c)   to the extent a positive number, 75% of the
aggregate Net Income of the Parent and the Parent’s Subsidiaries for the period
from and including July 1, 2002 to the date of testing, on a Consolidated basis:
  $              

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                          (d)   an amount equal to the lesser of (i) $25,000,000
or (ii) the sum of (A) the Parent’s write-off under GAAP of the Parent’s or the
Parent’s Subsidiary’s Investment with respect to the St. Louis Radisson Hotel up
to a maximum write-off of $11,500,000 and (B) the aggregate amount of all of the
Parent’s write-offs under GAAP of intangible assets that occur after June 30,
2002:   $                

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                        (e)   The sum of (a) plus (b) plus (c) minus (d):   $  
               

--------------------------------------------------------------------------------

   

      Required by the Agreement:         The Parent shall at all times maintain
an Adjusted Net Worth of not less than the Minimum Net Worth.     2.6  
Insurance Business (Section 5.11 of the Agreement).

                          The maximum amount payable by all Insurance Companies
under Insurance Contracts or Reinsurance Contracts, as of the Rolling Period
ending on      , 200     , is:   $                

--------------------------------------------------------------------------------

   

      Required by the Agreement:         The Borrower will not permit the
maximum amount payable by all Insurance Companies under Insurance Contracts or
Reinsurance Contracts, as of the last day of each Fiscal Quarter, to be greater
than $10,000,000.

3.   Other Covenants. Borrower hereby certifies to the Administrative Agent and
the Lenders, effective as of the Rolling Period ending      , 200     , that the
following amounts and calculations made pursuant to the Agreement are true and
correct:

  3.1   Investments and other Property (Section 6.06 of the Agreement)        
Required by the Agreement:         Neither the Parent, the Borrower, nor any of
their respective Subsidiaries, shall acquire by purchase or otherwise any
Investments or other Property, except as provided in Section 6.06 of the
Agreement.

     Attach schedule for any transaction or Investment not in compliance with
Section 6.06.

  3.2   Indebtedness (Section 6.02 of the Agreement)         Required by the
Agreement:

 

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      The Borrower, the Parent and their respective Subsidiaries will not incur
or permit to exist any Indebtedness other than as provided in Section 6.02 of
the Agreement.

          Attach schedule for any Indebtedness not in compliance with
Section 6.02.

4.   RECONCILIATION TO PUBLISHED FINANCIAL STATEMENTS

 

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     EXECUTED as of the date first referenced above.

                  BORROWER:                   MERISTAR H & R OPERATING COMPANY,
L.P.                   By:   Interstate Hotels & Resorts, Inc. (fka
MeriStar Hotels & Resorts, Inc.), its
general partner                       By:  

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        Name:  

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        Title:  

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SCHEDULE 1.01(A)

Commitments

          LENDER   TOTAL COMMITMENT

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Lehman Brothers Inc.
  $ 40,000,000.00  

 

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SCHEDULE 1.01(B)

Approved Inter-Company Indebtedness

IHC Holdings, Inc. loans (unsecured inter-company lending arrangements):

       Loan Agreement, dated as of September 10, 1999 (the “IHC Loan
Agreement”), among IHC Holdings, Inc., as lender, Interstate Hotels Corporation,
Interstate Hotels Company, Crossroads Hospitality Management Company and certain
other designated subsidiaries, as borrowers. Currently the borrowers (including
the other designated borrowers) are:

  •   Interstate Hotels Corporation (no amounts outstanding);     •   Interstate
Hotels Company (no amounts outstanding);     •   Crossroads Hospitality
Management Company (no amounts outstanding);

•   Interstate Property Corporation ($375,000 principal amount outstanding as of
3/28/01);   •   Interstate Partner Corporation ($12,000,000 principal amount
outstanding as of 3/28/01);   •   Interstate Pittsburgh Hotel Holdings, LLC
($5,700,000 principal amount outstanding as of 3/28/01).

 

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SCHEDULE 1.01(C)

Non-Pledged Ownership Interests

                          % Ownership/         Owner of Interest   Entity Owned
  Amount   Hotel   Comments

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MeriStar H & R Operating Company, L.P.   MIP Lessee, LP   9.5% (Limited)   See
Note 1   Partnership Agreement restricts pledge of partnership interest.        
          MeriStar H & R Operating Company, L.P.   IP GP, Inc.   100%   See Note
1   Amended & Restated Certificate of Incorporation prohibits pledge            
      MeriStar H & R Operating Company, L.P.   MIP GP, LLC   99%   See Note 1  
Operating Agreement prohibits pledging of membership interest except to lender
is making a loan secured in whole or in part by a mortgage/deed of trust on a
property.                   MIP GP, Inc.   MIP GP, LLC   1%   See Note 1  
Operating Agreement prohibits pledging of membership interest except to lender
is making a loan secured in whole or in part by a mortgage/deed of trust on a
property.                   MIP GP, LLC   MIP Lessee, LP   0.5% (General)   See
Note 1   Partnership Agreement restricts pledge of partnership interest.        
          CapStar BK Company, L.L.C.   BoyStar Ventures, L.P.   9%
(Subordinated)   Holiday Inn Minneapolis West - St. Louis Park, MN   Partnership
Agreement restricts transfer of partnership interest.                   MeriStar
Management Company, L.L.C.   S.D. Bridgeworks, LLC   10%   Hilton Garden Inn -
San
Diego, CA   Operating Agreement makes transfer of any member’s interest subject
to provisions of entity’s loan documents with entity’s lender; Loan Agreement
requires lender’s prior consent to any pledge of member’s interest in entity    
              MeriStar Laundry, LLC   Anchorage Linen
Service, a Joint
Venture   35%   Hotel Laundry
Business - Anchorage, AK   Any transfer of interest in joint venture requires
the consent of the other joint venturer.

 

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                          % Ownership/         Owner of Interest   Entity Owned
  Amount   Hotel   Comments

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                Partnership
Agreement requires: MeriStar Preston Center, L.L.C.   Park Cities Hotel, LP  
$500,000 Preferred
Interest   Hilton Garden Inn -
Dallas,
TX   (1) owner of MeriStar’s limited partnership interest to be an affiliate of
the Management Company or any permitted assignee of the Management Company under
the MeriStar Management Agreement, and (2) any pledge agreement must provide
that if pledging partner defaults under pledge agreement, remaining partners are
provided notice and opportunity to purchase, without recourse, pledging
partner’s loan from the pledging partner’s lender at a cash price equal to the
outstanding principal amount, all unpaid interest accrued and any other sums due
thereon.                                     MeriStar Management Company, L.L.C.
  Orchard Park Associates, L.P.   $150,000   Comfort Suites
Norwich,
CT   Loan Documents                   Interstate/Dallas Partnership, L.P.  
FCH/IHC Hotels, L.P.   49.5% LP   See Note 2 below   Partnership Agreement
restricts pledge of partnership interest.                       FCH/IHC Leasing,
L.P.   49.5% LP   See Note 3 below   Partnership Agreement restricts pledge of
partnership interest.                   Interstate/Dallas GP, LLC   FCH/IHC
Hotels, L.P.   0.5% GP   See Note 2 below   Partnership Agreement restricts
pledge of partnership interest.                       FCH/IHC Leasing, L.P.  
0.5% GP   See Note 3 below   Partnership Agreement restricts pledge of
partnership interest.                   Interstate Property Partnership, L.P.  
Interconn Ponte Vedra Company, L.L.C.   10% LP   Marriott at Sawgrass
Ponte Vedra, FL
  Operating Agreement restricts disposition of membership interest.            
      Interstate Houston Partner, L.P.   MRI Houston Hospitality, L.P.   25% LP
  Residence Inn by
Marriott
Houston
Astrodome/Medical
Center
Houston, TX   Partnership Agreement restricts pledge of partnership interest.  
                Interstate Investment
Corporation   CGLH-IHC Fund I, L.P.   .5% GP   Lehman Investment
Fund   Partnership Agreement restricts pledge of partnership interest.          
       

 

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                          % Ownership/         Owner of Interest   Entity Owned
  Amount   Hotel   Comments

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Interstate Property Partnership, L.P.   CGLH-IHC Fund I, L.P.   36.875% LP  
Lehman Investment
Fund   Partnership Agreement restricts pledge of partnership interest.          
        Interstate Manchester Company, L.L.C.   CNL-IHC Partners, L.P.   15% LP
  1) Courtyard by
Marriott
Hartford/Manchester
Manchester, CT
2) Residence Inn
by Marriott
Hartford/Manchester
Manchester, CT   Partnership Agreement restricts pledge of partnership interest.
                  [Interstate Hotels & Resorts, Inc.]   IHC II, LLC   99.99%  
1) Harrisburg Marriott Harrisburg, PA
2) Philadelphia
Marriott West —
Philadelphia, PA
3) Indian River
Plantation Marriott —
Stuart, FL
4) Houston Marriott
Greenspoint —
Houston, TX
5) Atlanta Marriott
North Central —
Atlanta, GA   Operating Agreement prohibits pledging of membership interest.

Notes:

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1.   MIP Lessee, LP is the lessee of the following hotel properties:
Sheraton Anchorage Hotel — Anchorage, AK
Radisson Hotel San Diego — San Diego, CA
Newark-Fremont Hilton Hotel — Newark, CA
Sheraton City Centre Hotel — Iowa City, IA
Radisson Resort & Spa — Scottsdale, AZ
Trumbull Marriott Hotel — Trumbull, CT
Hilton Minneapolis-St. Paul Airport Hotel — Bloomington, MN
Milwaukee Wyndham Hotel — Milwaukee, WI
Embassy Suites Philadelphia Airport — Philadelphia, PA
Embassy Suites Walnut Creek — Walnut Creek, CA   2.   FCH/IHC Hotels, LP owns
interests in the entities that own the following hotel properties:
Fairfield Inn Scottsdale Downtown — Scottsdale, AZ
Fairfield Inn Atlanta Downtown — Atlanta, GA
Courtyard by Marriott Atlanta Downtown — Atlanta, GA
Fairfield Inn Dallas/Stemmons Freeway — Dallas, TX
Courtyard by Marriott Houston/Galleria — Houston, TX
Fairfield Inn Houston/Galleria — Houston, TX
Fairfield Inn Houston/I-10 East — Houston, TX
Hampton Inn Houston/I-10 East — Houston, TX   3.   FCH/IHC Leasing, LP owns
interests in the entities that lease the following hotel properties:
Fairfield Inn Scottsdale Downtown — Scottsdale, AZ
Fairfield Inn Atlanta Downtown — Atlanta, GA
Courtyard by Marriott Atlanta Downtown — Atlanta, GA
Fairfield Inn Dallas/Stemmons Freeway — Dallas, TX
Courtyard by Marriott Houston/Galleria — Houston, TX
Fairfield Inn Houston/Galleria — Houston, TX

 

--------------------------------------------------------------------------------

 

    Fairfield Inn Houston/I-10 East — Houston, TX
Hampton Inn Houston/I-10 East — Houston, TX

 

--------------------------------------------------------------------------------

 

SCHEDULE 1.01(D)

Existing Owned Hospitality Property Investments

              Owner of Interest   Entity Owned   % Ownership/
Amount   Hotel

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

Interstate Property Partnership, L.P.   Interstate Pittsburgh Hotel
Holdings, L.L.C.   100%   Residence Inn by Marriott
Pittsburgh Airport
North Fayette, PA               Interstate Houston Partner, L.P.   MRI Houston
Hospitality,
L.P.   25% LP   Residence Inn by Marriott
Houston Astrodome/
Medical Center
Houston, TX               Interstate Dallas GP, LLC   FCH/IHC Hotels, L.P.  
0.5% GP   See Note 1                   FCH/IHC Leasing, L.P.   0.5% GP   See
Note 1               Interstate/Dallas Partnership, L.P.   FCH/IHC Hotels, L.P.
  49.5% LP   See Note 2                   FCH/IHC Leasing, L.P.   49.5% LP   See
Note 2

Notes:

--------------------------------------------------------------------------------

1.   Subsidiaries of FCH/IHC Hotels, L.P. own the following hotel properties:
Fairfield Inn Scottsdale Downtown — Scottsdale, AZ
Fairfield Inn Atlanta Downtown — Atlanta, GA
Courtyard by Marriott Atlanta Downtown — Atlanta, GA
Fairfield Inn Dallas/Stemmons Freeway — Dallas, TX
Courtyard by Marriott Houston/Galleria — Houston, TX
Fairfield Inn Houston/Galleria — Houston, TX
Fairfield Inn Houston/I-10 East — Houston, TX
Hampton Inn Houston/I-10 East — Houston, TX   2.   Subsidiaries of FCH/IHC
Leasing, L.P. lease the following hotel properties:
Fairfield Inn Scottsdale Downtown — Scottsdale, AZ
Fairfield Inn Atlanta Downtown — Atlanta, GA
Courtyard by Marriott Atlanta Downtown — Atlanta, GA
Fairfield Inn Dallas/Stemmons Freeway — Dallas, TX
Courtyard by Marriott Houston/Galleria — Houston, TX
Fairfield Inn Houston/Galleria — Houston, TX
Fairfield Inn Houston/I-10 East — Houston, TX
Hampton Inn Houston/I-10 East — Houston, TX

 

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SCHEDULE 1.01(E)

Existing Management Agreements

1.   Master Fee Agreement, dated as of January 1, 2001, between MeriStar Hotel
Lessee, Inc., MeriStar SPE Leasing Corp., MeriStar SPE California Corp.,
MeriStar SPE Colorado Corp., MeriStar SPE North Carolina Corp., MeriStar SPE
Wisconsin Corp. and MeriStar Management Company, L.L.C. (“MMC”).   2.   Hotel
Management Agreement, dated as of October 14, 1999, between MIP Lessee, LP, and
MMC, with respect to the Sheraton Anchorage Hotel, located at 401 East 6th
Avenue, Anchorage, AK.   3.   Hotel Management Agreement, dated as of January 1,
2001, by and between RFS Leasing II, Inc. and Flagstone Hospitality Management
LLC (“Flagstone”), with respect to Sheraton Hotel – Birmingham South, located at
8 Perimeter Park Drive, Birmingham, AL.   4.   Hotel Management Agreement, dated
as of January 1, 2001, between MeriStar Hotel Lessee, Inc., and MMC, with
respect to the Sheraton Mesa Hotel, located at 200 N. Centennial Way, Mesa, AZ,
as amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   5.   Hotel Management Agreement, dated as of January 1, 2001,
between MeriStar Hotel Lessee, Inc., as Owner, and MMC, as Operator, with
respect to the Crowne Plaza Phoenix, located at 2532 W. Peoria Avenue, Phoenix,
AZ, as amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   6.   Hotel Management Agreement, dated as of January 1, 2001,
between MeriStar Hotel Lessee, Inc., as Owner, and MMC, as Operator, with
respect to the Embassy Suites International Airport, located at 7051 S. Tucson
Blvd., Tucson, AZ, as amended by that certain Amendment to Management Agreement,
dated as of January 1, 2002.   7.   Hotel Management Agreement, dated as of
November 30, 1999, between Triple Tree Corporation and MMC, with respect to
Radisson Poco Diablo Resort, located at 1752 South Highway 179, Sedona, AZ.   8.
  Hotel Management Agreement, dated December 14, 1999, between Champion
Investment Corporation and MMC, with respect to Hilton East Tucson, located at
7600 East Broadway, Tucson, AZ.   9.   Hotel Management Agreement, dated as of
March 31, 1999, between MIP Lessee, LP and MMC, with respect to Radisson Resort
& Spa Scottsdale, located at 7171 North Scottsdale Road, Scottsdale, AZ.   10.  
Hotel Management Agreement, dated as of December 24, 1999, between Massachusetts
Mutual Like Insurance Company and MMC, with respect to Hilton Phoenix Airport,
located at 2435 South 47th Street, Phoenix, AZ.

 

--------------------------------------------------------------------------------

 

11.   Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Chandler,
located at 7333 West Detroit Street, Chandler, AZ.   12.   Hotel Management
Agreement, dated as of January 1, 2001, by and between RFS Leasing II, Inc. and
Flagstone, with respect to Homewood Suites Chandler, located at 7373 West
Detroit Street, Chandler, AZ.   13.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc., and MMC, with respect to
the Courtyard by Marriott Century City, located at 10320 W. Olympic Blvd.,
Century City, CA, as amended by that certain Amendment to Management Agreement,
dated as of January 1, 2002.   14.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar SPE California Corp., and MMC, with respect to
the Courtyard by Marriott Marina del Rey, located at 13480 Maxella Avenue,
Marina del Rey, CA.   15.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to the Hilton
Port of Los Angeles/San Pedro, located at 2800 Via Cabrillo Marina, San Pedro,
CA, as amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   16.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar SPE California Corp., and MMC, with respect to the Hilton
Irvine/Orange County Airport, located at 18800 MacArthur Blvd., Irvine, CA.  
17.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE California Corp., and MMC, with respect to the Hilton Sacramento Arden West,
located at 2200 Harvard Street, Sacramento, CA.   18.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and
MMC, with respect to the Los Angeles Marriott Downtown, located at 333. S.
Figueroa Street, Los Angeles, CA, as amended by that certain Amendment to
Management Agreement, dated as of January 1, 2002.   19.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and
MMC, with respect to the Doral Palm Springs Resort, located at 67-967 Vista
Chino, Cathedral City, CA, as amended by that certain Amendment to Management
Agreement, dated as of January 1, 2002.   20.   Hotel Management Agreement,
dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and MMC, with
respect to the Wyndham Hotel San Jose, located at 1350 North 1st Street, San
Jose, CA, as amended by that certain Amendment to Management Agreement, dated as
of January 1, 2002.   21.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar SPE California Corp., and MMC, with respect to the Crowne
Plaza San Jose, located at 282 Almaden Blvd., San Jose, CA.

 

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22.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE California Corp., and MMC, with respect to the Sheraton Fisherman’s Wharf
Hotel, located at 2500 Mason Street, San Francisco, CA.   23.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and
MMC, with respect to the Hilton Monterey, located at 1000 Aguajito Road,
Monterey, CA, as amended by that certain Amendment to Management Agreement,
dated as of January 1, 2002.   24.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to
the Santa Barbara Inn, located at 901 East Cabrillo Blvd., Santa Barbara, CA, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   25.   Hotel Management Agreement, dated as of June 10, 1998,
between SD Bridgeworks, LLC and MMC, with respect to Hilton San Diego – Gaslamp
Quarter, located at 401 K Street, San Diego, CA, as amended by that certain
First Amendment to Hotel Management Agreement, dated as of July 20, 1998.   26.
  Hotel Management Agreement, dated      , between      and MMC, with respect to
Quality Suites John Wayne Airport Santa Ana, located at 2701 Hotel Terrace
Drive, Santa Ana, CA.   27.   Hotel Management Agreement, dated December 27,
1993, between Dr. Michael Perley and MMC, with respect to Residence Inn
Orange/Disneyland, located at 3101 West Chapman Avenue, Orange, CA.   28.  
Hotel Management Agreement, dated as of March 31, 1999, between MIP Lessee, LP
and MMC, with respect to Radisson Hotel San Diego, located at 1433 Camino Del
Rio South, San Diego, CA.   29.   Hotel Management Agreement, dated as of
December 1, 1999, between MIP Lessee, LP and MMC with respect to Hilton
Newark/Fremont, located at 3990 Balentine Drive, Newark, CA.   30.   Hotel
Management Agreement, dated as of April 27, 2000, between MIP Lessee, LP and MMC
with respect to Embassy Suites Walnut Creek, located at 1345 Treat Boulevard,
Walnut Creek, CA.   31.   Hotel Management Agreement, dated March 16, 1999,
between Wave Crest Resorts, LLC and MMC, with respect to Hilton Garden Inn
Carlsbad Beach, 6450 Carlsbad Boulevard, Carlsbad, CA.   32.   Hotel Management
Agreement, dated as of January 1, 2001, by and between RFS Leasing II, Inc. and
Flagstone, with respect to Sheraton Hotel Bakersfield, located at 5101
California Avenue, Bakersfield, CA.

 

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33.   Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Sheraton San Jose/Milpitas,
located at 1801 Barber Lane, Milpitas, CA.   34.   Hotel Management Agreement,
dated as of January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone,
with respect to Beverly Heritage Hotel, located at 1820 Barber Lane, Milpitas,
CA.   35.   Hotel Management Agreement, dated as of January 1, 2001, by and
between RFS Leasing II, Inc. and Flagstone, with respect to Four Points by
Sheraton Pleasanton, located at 5115 Hopyard Road, Pleasanton, CA.   36.   Hotel
Management Agreement, dated as of January 1, 2001, by and between RFS Leasing
II, Inc. and Flagstone, with respect to Residence Inn Sacramento, located at
1530 Howe Avenue, Sacramento, CA.   37.   Hotel Management Agreement, dated as
of January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone, with
respect to Hilton Fisherman’s Wharf, located at 2620 Jones Street, San
Francisco, CA.   38.   Hotel Management Agreement, dated as of January 1, 2001,
by and between RFS Leasing II, Inc. and Flagstone, with respect to Sheraton
Hotel Sunnyvale, located at 1100 North Mathilda Avenue, Sunnyvale, CA.   39.  
Hotel Management Agreement, dated as of January 1, 2001, by and between RFS
Leasing II, Inc. and Flagstone, with respect to Residence Inn Torrance, located
at 3701 Torrance Blvd., Torrance, CA.   40.   Hotel Management Agreement, dated
as of January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone, with
respect to Doubletree Hotel Del Mar, located at 11915 El Camino Real, San Diego,
CA.   41.   Hotel Management Agreement, dated as of January 1, 2001, between
MeriStar Hotel Lessee, Inc. and MMC, with respect to the Holiday Inn Garden of
the Gods, located at 505 Popes Bluff Trail, Colorado Springs, CO, as amended by
that certain Amendment to Management Agreement, dated as of January 1, 2002.  
42.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Colorado Corp., and MMC, with respect to the Sheraton Colorado Springs
Hotel, located at 2886 South Circle Drive, Colorado Springs, CO.   43.   Hotel
Management Agreement, dated as of January 1, 2001, between MeriStar SPE Colorado
Corp., and MMC, with respect to the Embassy Suites Denver South, located at
10250 E. Costilla Avenue, Englewood, CO.   44.   Hotel Management Agreement,
dated as of January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone,
with respect to Hampton Inn Northwest/I-70 Denver, located at 4685 Quebec
Street, Denver, CO.

 

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45.   Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Southwest
Denver, located at 3605 South Wadsworth Blvd., Lakewood, CO.   46.   Hotel
Management Agreement, dated October 23, 1996, between Orchard Park Associates,
L.P. and MMC (as successor-in-interest to CapStar Management Company, L.P.),
with respect to Comfort Suites Norwich, located at 275 Otrobando Avneue,
Norwich, CT.   47.   Hotel Management Agreement, dated as of May 26, 1999,
between MIP Lessee, LP and MMC, with respect to Marriot Trumbull, located at 180
Hawley Lane, Trumbull, CT.   48.   Hotel Management Agreement, dated as of March
     , 2000, between Campus Associates Limited Partnership and MMC, with respect
to Nathan Hale Inn & Conference Center at the University of Connecticut, located
at P.O. Box 364, Storrs, CT.   49.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to
the Doubletree Hotel Bradley International Airport, located at 16 Ella Grasso
Turnpike, Windsor Locks, CT, as amended by that certain Amendment to Management
Agreement, dated as of January 1, 2002.   50.   Hotel Management Agreement,
dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and MMC, with
respect to the Hilton Hartford, located at 315 Trumbull Street, Hartford, CT, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   51.   Hotel Management Agreement, dated as of May 1, 2001,
between MeriStar Hotel Lessee, Inc. and MMC, with respect to the Ramada Plaza
Hotel Shelton, located at 780 Bridgeport Avenue, Shelton, CT, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.   52.  
Hotel Management Agreement, dated as of December 1, 2001, between MeriStar Hotel
Lessee, Inc. and MMC, with respect to Ramada Plaza Meriden, located at 275
Research Parkway, Meriden, CT, as amended by that certain Amendment to
Management Agreement, dated as of January 1, 2002.   53.   Hotel Management
Agreement, dated as of January 1, 2001, by and between RFS Leasing II, Inc. and
Flagstone, with respect to Residence Inn Wilmington, located at 240 Chapman
Road, Newark, DE.   54.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to the
Georgetown Inn, located at 1310 Wisconsin Ave, N.W., Washington, DC, as amended
by that certain Amendment to Management Agreement, dated as of January 1, 2002.
  55.   Hotel Management Agreement, dated as of January 1, 2001, between
MeriStar Hotel Lessee, Inc. and MMC, with respect to the Hilton Washington
Embassy Row, located at

 

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    2015 Massachusetts Avenue, N.W., Washington, DC, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.   56.   Hotel
Management Agreement, dated as of January 1, 2001, between MeriStar Hotel
Lessee, Inc. and MMC, with respect to The Latham Hotel Georgetown, located at
3000 M Street, N.W., Washington, DC, as amended by that certain Amendment to
Management Agreement, dated as of January 1, 2002.   57.   Hotel Management
Agreement, dated January 1, 1994, between Newco Management Company and MMC, with
respect to Best Western New Hampshire Suites, located at 1121 New Hampshire
Avenue, NW, Washington, DC.   58.   Hotel Management Agreement, dated June 30,
1997, between Massachusetts Mutual Life Insurance Company and MMC, with respect
to Crowne Plaza Hotel Washington, located at 1001 14th Street, NW, Washington,
DC.   59.   Hotel Management Agreement, dated as of December 23, 1998, between
Franklin Fourteen, L.L.C. and MMC, with respect to Hilton Garden Inn Washington,
located at 815 14th Street, NW (Franklin Square), Washington, DC.   60.   Hotel
Management Agreement, dated as of April 24, 2001, between Whitewood, LLC and
MMC, with respect to The Churchill Hotel, located at 1914 Connecticut Avenue,
N.W., Washington, DC.   61.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to the Sheraton
Safari Hotel, located at 12205 Apopka Vineland Road, Lake Buena Vista, FL, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   62.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to the Courtyard
by Marriott Walt Disney World Village, located at 1805 Hotel Plaza Blvd., Lake
Buena Vista, FL, as amended by that certain Amendment to Management Agreement,
dated as of January 1, 2002.   63.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to
the Radisson Universal Hotel, located at 5780 Major Blvd., Orlando, FL, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   64.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to the Hilton
Cocoa Beach, located at 1550 N. Atlantic Avenue, Cocoa Beach, FL, as amended by
that certain Amendment to Management Agreement, dated as of January 1, 2002.  
65.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Hilton Clearwater, located at
400 Mandalay Avenue, Clearwater, FL, as amended by that certain Amendment to
Management Agreement, dated as of January 1, 2002.

 

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66.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Doubletree Hotel Westshore,
located at 4500 W. Cypress St., Tampa, FL, as amended by that certain Amendment
to Management Agreement, dated as of January 1, 2002.   67.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and
MMC, with respect to the Holiday Inn Ft. Lauderdale, located at 999 Ft.
Lauderdale Beach Blvd., Ft. Lauderdale, FL, as amended by that certain Amendment
to Management Agreement, dated as of January 1, 2002.   68.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and
MMC, with respect to the Holiday Inn Madeira Beach, located at 15208 Gulf Blvd.,
Madeira Beach, FL, as amended by that certain Amendment to Management Agreement,
dated as of January 1, 2002.   69.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to
the Ramada Inn Clearwater, located at 521 S. Gulfview Blvd., Clearwater, FL, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   70.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to the Howard
Johnson Resort Key Largo, located at 102400 Overseas Highway, Key Largo, FL, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   71.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to The Westin
Beach Resort Key Largo, located at 97000 S. Overseas Highway, Key Largo, FL, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   72.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc., as Owner, and MMC, as Operator, with
respect to the South Seas Resort, located at 5400 Plantation Road, Captiva, FL,
as amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   73.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc., as Owner, and MMC, as Operator, with
respect to the Radisson Suites Beach Resort, located at 600 South Collier Blvd.,
Marco Island, FL, as amended by that certain Amendment to Management Agreement,
dated as of January 1, 2002.   74.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to
the Safety Harbor Resort & Spa, located at 105 North Bayshore Drive, Safety
Harbor, FL, as amended by that certain Amendment to Management Agreement, dated
as of January 1, 2002.   75.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc., as Owner, and MMC, as
Operator, with respect to the Sanibel Inn, located at

 

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    937 East Gulf Drive, Sanibel Island, FL, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.   76.   Hotel
Management Agreement, dated as of January 1, 2001, between MeriStar Hotel
Lessee, Inc. and MMC, with respect to The Dunes Golf & Tennis Club, located at
949 Sandcastle Road, Sanibel Island, FL, as amended by that certain Amendment to
Management Agreement, dated as of January 1, 2002.   77.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and
MMC, with respect to the Seaside Inn, located at 541 East Gulf Drive, Sanibel
Island, FL, as amended by that certain Amendment to Management Agreement, dated
as of January 1, 2002.   78.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to
the Song of the Sea, located at 863 East Gulf Drive, Sanibel Island, FL, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   79.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc. and MMC, with respect to the Sundial
Beach Resort, located at 1451 Middle Gulf Drive, Sanibel Island, FL, as amended
by that certain Amendment to Management Agreement, dated as of January 1, 2002.
  80.   Hotel Management Agreement, dated as of January 1, 2001, between
MeriStar Hotel Lessee, Inc. and MMC, with respect to the Best Western Sanibel
Island, located at 3287 West Gulf Drive, Sanibel Island, FL, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.   81.  
Hotel Management Agreement, dated January      , 1999, between AGL Investments
No. 2 Limited Partnership and MMC, with respect to Doubletree Hotel Palm Beach
Gardens, located at 4431 PGA Boulevard, Palm Beach Gardens, FL.   82.   Hotel
Management Agreement, dated as of November 30, 2001, between BeachBoy, LLC and
MMC, with respect to Best Western Pink Shell Resort, located at 275 Estero
Boulevard, Ft. Myers Beach, FL.   83.   Hotel Management Agreement, dated as of
January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone, with respect
to Hampton Inn Ft. Lauderdale, located at 720 E. Cypress Creek, Ft. Lauderdale,
FL.   84.   Hotel Management Agreement, dated as of      , 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Residence Inn Orlando,
located at 7975 Canada Avenue, Orlando, FL.   85.   Hotel Management Agreement,
dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and MMC, with
respect to the Doubletree Guest Suites Atlanta, located at 2780 Windy Ridge
Parkway, Atlanta, GA, as amended by that certain Amendment to Management
Agreement, dated as of January 1, 2002.

 

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86.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to The Westin Atlanta Airport, located
at 4736 Best Road, Atlanta, GA, as amended by that certain Amendment to
Management Agreement, dated as of January 1, 2002.   87.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and
MMC, with respect to the Wyndham Garden Marietta, located at 1775 Parkway Place,
N.W., Marietta, GA, as amended by that certain Amendment to Management
Agreement, dated as of January 1, 2002.   88.   Hotel Management Agreement,
dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and MMC, with
respect to the Jekyll Inn, located at 975 North Beachview Drive, Jekyll Island,
GA, as amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   89.   Hotel Management Agreement, dated as of January 1,
2001, by and between RFS Leasing II, Inc. and Flagstone, with respect to Comfort
Inn Marietta Atlanta, located at 2100 Northwest Parkway, Marietta, GA.   90.  
Hotel Management Agreement, dated as of January 1, 2001, by and between RFS
Leasing II, Inc. and Flagstone, with respect to Residence Inn Perimeter West
Atlanta, located at 6096 Barfield Road, Atlanta, GA.   91.   Hotel Management
Agreement, dated as of      , between Broadmoor Joint Venture and MMC (as
successor to American General Hospitality, Inc.), with respect to Courtyard by
Marriott Boise, located at 222 South Broadway Avenue, Boise, ID.   92.   Hotel
Management Agreement, dated as of January 1, 2001, between MeriStar Hotel
Lessee, Inc. and MMC, with respect to the Holiday Inn Chicago O’Hare
International, located at 5440 North River Road, Rosemont, IL, as amended by
that certain Amendment to Management Agreement, dated as of January 1, 2002.  
93.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Radisson Hotel Arlington
Heights, located at 75 West Algonquin Road, Arlington Heights, IL, as amended by
that certain Amendment to Management Agreement, dated as of January 1, 2002.  
94.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Radisson Hotel & Suites Chicago
Downtown, located at 160 East Huron Street, Chicago, IL, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.   95.  
Hotel Management Agreement, dated as of January 1, 2001, between MeriStar Hotel
Lessee, Inc. and MMC, with respect to the Radisson Hotel Schaumburg, located at
1725 East Algonquin Road, Schaumburg, IL, as amended by that certain Amendment
to Management Agreement, dated as of January 1, 2002.

 

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96.   Hotel Management Agreement, dated March 10, 2000, between AGL Investments
No. 17 Limited Partnership and MMC, with respect to Doral Chicago (f/k/a Nordic
Hills Resort & Conference Center), located at 1401 Nordic Road, Itasca, IL.  
97.   Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn Express
Arlington Heights, located at 2120 South Arlington Heights Road, Arlington
Heights, IL.   98.   Hotel Management Agreement, dated as of January 1, 2001, by
and between RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn
Crystal Lake, located at 800 South Route 31, Crystal Lake, IL.   99.   Hotel
Management Agreement, dated as of January 1, 2001, by and between RFS Leasing
II, Inc. and Flagstone, with respect to Holiday Inn Express Downers Grove,
located at 3031 Finley Road, Downers Grove, IL.   100.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and
MMC, with respect to the Doubletree Guest Suites, located at 11355 North
Meridian, Carmel, IN, as amended by that certain Amendment to Management
Agreement, dated as of January 1, 2002.   101.   Hotel Management Agreement,
dated as of      , 2000, between Massachusetts Mutual Life Insurance Company and
MMC, with respect to Omni Hotel Indianapolis North, located at 8181 North
Shadeland Avenue, Indianapolis, IN.   102.   Hotel Management Agreement, dated
as of January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone, with
respect to Hampton Inn Airport, located at 5601 Fortune Circle West,
Indianapolis, IN.   103.   Hotel Management Agreement, dated as of March 31,
1999, between MIP Lessee, LP and MMC, with respect to Sheraton Hotel Iowa City,
located at 210 South Dubuque Street, Iowa City, IA.   104.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and
MMC, with respect to the Seelbach Hilton Louisville, located at 500 Fourth
Avenue, Louisville, KY, as amended by that certain Amendment to Management
Agreement, dated as of January 1, 2002.   105.   Hotel Management Agreement,
dated as of January 1, 2001, between MeriStar SPE Leasing Corp. and MMC, with
respect to the Radisson Plaza Hotel, located at 369 West Vine Street, Lexington,
KY.   106.   Hotel Management Agreement, dated as of January 10, 1996, between
DJONT Operations, L.L.C. and MMC (as successor to American General Hospitality,
Inc.), with respect to Hilton Suites of Lexington Green, located at 245
Lexington Green Circle, Lexington, KY.

 

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107.   Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn Southwest
Louisville, located at 4110 Dixie Highway, Louisville, KY.   108.   Hotel
Management Agreement, dated as of January 1, 2001, between MeriStar Hotel
Lessee, Inc. and MMC, with respect to the Hotel Maison dé Villé, located at 727
Rue Toulouse, New Orleans, LA, as amended by that certain Amendment to
Management Agreement, dated as of January 1, 2002.   109.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar SPE Leasing Corp. and
MMC, with respect to the Holiday Inn Select New Orleans Airport, located at 2929
Williams Blvd., New Orleans, LA.   110.   Hotel Management Agreement, dated as
of January 1, 2001, between MeriStar SPE Leasing Corp. and MMC, with respect to
the Hilton Lafayette & Towers, located at 1521 West Pinhook Road, Lafayette, LA.
  111.   Hotel Management Agreement, dated as of      , between      and MMC,
with respect to Quality Inn Bossier City, located at 4300 Industrial Drive,
Bossier City, LA.   112.   Hotel Management Agreement, dated as of January 1,
2001, by and between RFS Leasing II, Inc. and Flagstone, with respect to Holiday
Inn Central Lafayette, located at 2032 North Evangeline Thruway, Lafayette, LA.
  113.   Management Agreement, dated as of December 16, 2002, between LHO New
Orleans One Lessee, LLC and MeriStar Management Company, L.L.C., with respect to
the New Orleans Grande Hotel, located at 614 Canal Street, New Orleans, LA.  
114.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to Radisson Hotel Annapolis, located at
210 Holiday Court, Annapolis, MD, as amended by that certain Amendment to
Management Agreement, dated as of January 1, 2002.   115.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and
MMC, with respect to Radisson Hotel Cross Keys, located at 5100 Falls Road,
Baltimore, MD, as amended by that certain Amendment to Management Agreement,
dated as of January 1, 2002.   116.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc., as Owner, and MMC, as
Operator, with respect to Sheraton Columbia Hotel, located at 10207 Wincopin
Circle, Columbia, MD, as amended by that certain Amendment to Management
Agreement, dated as of January 1, 2002.   117.   Hotel Management Agreement,
dated as of March 21, 1995, between Congressional Plaza Hotel, Inc. and MMC,
with respect to Ramada Inn Rockville-Congressional Park, located at 1775
Rockville Pike, Rockville, MD.

 

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118.   Hotel Management Agreement, dated as of June 1, 2000, between Laurel
Suite Limited Partnership and MMC, with respect to Comfort Suites Laurel Lakes,
located at 14402 Laurel Lakes Place, Laurel, MD.   119.   Hotel Management
Agreement, dated as of October 29, 1997, between BWI Hotel Associated Limited
Partnership and MMC (successor-in-interest to CapStar Management Company, L.P.),
as amended by that certain Amendment to Hotel Management Agreement, dated as of
     , 2000, with respect to Microtel Inn & Suites at BWI Airport, located at
1170 Winterson Road, Linthicum, MD.   120.   Country Club Management Agreement,
dated as of March 19, 2001, between Swan Point Yacht & Country Club, Inc. and
MMC d/b/a Doral® Golf, with respect to Swan Point Yacht and Country Club,
located at 11550 Swan Point Boulevard, Issue, MD.   121.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and
MMC, with respect to the Hilton Metro Airport & Suites, located at 8600 Wickham
Road, Romulus, MI, as amended by that certain Amendment to Management Agreement,
dated as of January 1, 2002.   122.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar SPE Leasing Corp. and MMC, with respect to the
Hilton Grand Rapids Airport, located at 4747 28th Street, S.E., Grand Rapids,
MI.   123.   Hotel Management Agreement, dated as of October 31, 2000, between
Corporate Property Associates 5 – A California Limited Partnership (CPA:5),
Corporate Property Associates 6 – A California Limited Partnership (CPA:6),
jointly and severally, and MMC, with respect to Holiday Inn Alpena, located at
1000 U.S. 23 North, Alpena, MI.   124.   Hotel Management Agreement, dated as of
October 31, 2000, between Corporate Property Associates 5 – A California Limited
Partnership (CPA:5), Corporate Property Associates 6 – A California Limited
Partnership (CPA:6), jointly and severally, and MMC, with respect to Holiday Inn
Petoskey, located at 1444 U.S. 131 South, Petoskey, MI.   125.   Hotel
Management Agreement, dated as of October 31, 2000, between between Corporate
Property Associates 6 – A California Limited Partnership (CPA:6), Corporate
Property Associates 7 – A California Limited Partnership (CPA:7), jointly and
severally, and MMC, with respect to Holiday Inn Detroit West Livonia, located at
17123 Laurel Park Drive North, Livonia, MI.   126.   Hotel Management Agreement,
dated as of January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone,
with respect to Residence Inn Ann Arbor, located at 800 Victors Way, Ann Arbor,
MI.   127.   Hotel Management Agreement, dated as of January 1, 2001, by and
between RFS Leasing II, Inc. and Flagstone, with respect to Courtyard by
Marriott Flint, located at 5205 Gateway Center, Flint, MI.

 

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128.   Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn Gateway Center,
located at 5353 Gateway Center, Flint, MI.   129.   Hotel Management Agreement,
dated as of March 31, 1999, between MIP Lessee, LP and MMC, with respect to
Hilton Minneapolis/St. Paul Airport, located at 3800 East 80th Street,
Bloomington, MN.   130.   Hotel Management Agreement, dated as of November 30,
2001, between Minneapolis Leasing, L.L.C. and MMC, with respect to the Holiday
Inn Minneapolis West, located at 9970 Wayzata Blvd., St. Louis Park, MN.   131.
  Hotel Management Agreement, dated as of January 1, 2001, by and between RFS
Leasing II, Inc. and Flagstone, with respect to Hampton Inn Airport, located at
4201 West 80th Street, Bloomington, MN.   132.   Hotel Management Agreement,
dated as of January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone,
with respect to Holiday Inn Express Bloomington, located at 814 East 79th
Street, Bloomington, MN.   133.   Hotel Management Agreement, dated as of
January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone, with respect
to Hampton Inn Minnetonka, located at 10420 Wayzata Blvd., Minnetonka, MN.  
134.   Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Hattiesburg,
located at 4301 Hardy Street, Hattiesburg, MS.   135.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc. and
MMC, with respect to the Holiday Inn Sports Complex, located at 4011 Blue Ridge
Cut-off, Kansas City, MO, as amended by that certain Amendment to Management
Agreement, dated as of January 1, 2002.   136.   Hotel Management Agreement,
dated as of      , between CapStar Hallmark Company, L.L.C. and MMC, with
respect to Radisson Hotel & Suites Downtown, located at 200 North 4th Street,
St. Louis, MO.   137.   Hotel Management Agreement, dated as of November 30,
2001, between Boykin Kansas City, L.L.C and MMC, with respect to Doubletree
Hotel Kansas City, located at 1301 Wyandotte Street, Kansas City, MO.   138.  
Hotel Management Agreement, dated as of January 1, 2001, by and between RFS
Leasing II, Inc. and Flagstone, with respect to Sheraton Hotel Clayton Plaza,
located at 7730 Bonhomme Avenue, Clayton, MO.   139.   Hotel Management
Agreement, dated as of January 1, 2001, by and between RFS Leasing II, Inc. and
Flagstone, with respect to Residence Inn Kansas City, located at 2975 Main
Street – Union Hill, Kansas City, MO.

 

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140.   Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Airport I-80
Lincoln, located at 1301 West Bond Circle, Lincoln, NE.   141.   Hotel
Management Agreement, dated as of January 1, 2001, by and between RFS Leasing
II, Inc. and Flagstone, with respect to Hampton Inn Westroads Mall Omaha,
located at 9720 West Dodge Road, Omaha, NE.   142.   Hotel Management Agreement,
dated as of December 1, 2001, between MeriStar Hotel Lessee, Inc. and MMC, with
respect to St. Tropez Hotel, located at 455 East Harmon Avenue, Las Vegas, NV,
as amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002. (Note: Scheduled to be terminated on or before January 15,
2003.)   143.   Hotel Management Agreement, dated as of January 1, 2001, between
MeriStar Hotel Lessee, Inc., and MMC, with respect to the Courtyard by Marriott
Meadowlands, located at 455 Harmon Meadow Blvd., Secaucus, NJ, as amended by
that certain Amendment to Management Agreement, dated as of January 1, 2002.  
144.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to The Westin Morristown, located at 2
Whippany Road, Morristown, NJ, as amended by that certain Amendment to
Management Agreement, dated as of January 1, 2002.   145.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc., and
MMC, with respect to the Doral Forrestal Hotel & Conference Center, located at
100 College Road, Princeton, NJ, as amended by that certain Amendment to
Management Agreement, dated as of January 1, 2002.   146.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar SPE Leasing Corp., and
MMC, with respect to the Somerset Marriott Hotel, located at 110 Davidson
Avenue, Somerset, NJ.   147.   Hotel Management Agreement, dated as of May 1,
2001, between MeriStar Hotel Lessee, Inc., and MMC, with respect to the Sheraton
Crossroads Hotel, located at Crossroads Corporate Center, Mahwah, NJ, as amended
by that certain Amendment to Management Agreement, dated as of January 1, 2002.
  148.   Hotel Management Agreement, dated as of May 24, 2000, between Household
Commercial Financial Services, Inc. and MMC with respect to Comfort Inn West
Atlantic City, located at 7095 Black Horse Pike, West Atlantic City, NJ.   149.
  Hotel Management Agreement, dated as of January 1, 2001, between MeriStar SPE
Leasing Corp., and MMC, with respect to the Doubletree Hotel Albuquerque,
located at 201 Marquette NW, Albuquerque, NM.   150.   Hotel Management
Agreement, dated as of January 1, 2001, MeriStar Hotel Lessee, Inc., and MMC,
with respect to the Wyndham Hotel Albuquerque, located at 2910 Yale Blvd.,

 

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    S.E., Albuquerque, NM, as amended by that certain Amendment to Management
Agreement, dated as of January 1, 2002.   151.   Hotel Management Agreement,
dated as of January 1, 2001, MeriStar Hotel Lessee, Inc., and MMC, with respect
to the Radisson Hotel Rochester Airport, located at 175 Jefferson Road,
Rochester, NY, as amended by that certain Amendment to Management Agreement,
dated as of January 1, 2002.   152.   Hotel Management Agreement, dated as of
January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone, with respect
to Residence Inn Fishkill, located at 14 Schuyler Boulevard, Fishkill, NY.  
153.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Courtyard by Marriott Durham,
located at 1815 Front Street, Durham, NC, as amended by that certain Amendment
to Management Agreement, dated as of January 1, 2002.   154.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc., and
MMC, with respect to the Hilton Durham, located at 3800 Hillsborough Road,
Durham, NC, as amended by that certain Amendment to Management Agreement, dated
as of January 1, 2002.   155.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar SPE North Carolina Corp., and MMC, with
respect to the Sheraton Airport Plaza Hotel, located at 3315 I-85 Billy Graham
Parkway, Charlotte, NC.   156.   Hotel Management Agreement, dated as of
January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone, with respect
to Holiday Inn Burlington, located at 2444 Maple Avenue, Burlington, NC.   157.
  Hotel Management Agreement, dated as of January 1, 2001, MeriStar Hotel
Lessee, Inc., and MMC, with respect to the Hilton Toledo, located at 3100
Glendale Avenue, Toledo, OH, as amended by that certain Amendment to Management
Agreement, dated as of January 1, 2002.   158.   Hotel Management Agreement,
dated as of January 1, 2001, MeriStar Hotel Lessee, Inc., and MMC, with respect
to the Radisson Hotel Cleveland Southwest, located at 7230 Engle Road,
Middleburg Heights, OH, as amended by that certain Amendment to Management
Agreement, dated as of January 1, 2002.   159.   Hotel Management Agreement,
dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc., and MMC, with
respect to The Westin Oklahoma City, located at One North Broadway, Oklahoma
City, OK, as amended by that certain Amendment to Management Agreement, dated as
of January 1, 2002.   160.   Hotel Management Agreement, dated as of January 1,
2001, by and between RFS Leasing II, Inc. and Flagstone, with respect to Hampton
Inn Oklahoma City Airport, located at 1905 South Meridian Avenue, Oklahoma City,
OK.

 

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161.   Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Tulsa, located
at 3209 South 79th Avenue, Tulsa, OK.   162.   Hotel Management Agreement, dated
as of January 1, 2001, between MeriStar Hotel Lessee, Inc., and MMC, with
respect to Crowne Plaza Portland, located at 14811 Kruse Oaks Blvd., Lake
Oswego, OR, as amended by that certain Amendment to Management Agreement, dated
as of January 1, 2002.   163.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc., and MMC, with respect to
the Holiday Inn Select Bucks County, located at 4700 Street Road, Trevose, PA,
as amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   164.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc., and MMC, with respect to the Sheraton
Great Valley Hotel, located at 707 Lancaster Pike, Frazer, PA, as amended by
that certain Amendment to Management Agreement, dated as of January 1, 2002.  
165.   Hotel Management Agreement, effective date February 1, 1993, between HFC
Commercial Realty, Inc., Center Realty, Inc. and COM Realty, Inc., and MMC, with
respect to Sheraton Hotel Bucks County, located at 400 Oxford Valley Road,
Langhorne, PA.   166.   Hotel Management Agreement, dated as of January 1, 2001,
between MeriStar SPE Leasing Corp., and MMC, with respect to the Embassy Suites
Center City, located at 1776 Ben Franklin Parkway, Philadelphia, PA.   167.  
Hotel Management Agreement, dated as of June 27, 2000, between MIP Lessee, LP
and MMC, with respect to Embassy Suites Philadelphia International Airport,
located at 9000 Bartram Avenue, Philadelphia, PA.   168.   Hotel Management
Agreement, dated as of      , 2000, between HJ & VJ, LLC and MMC, with respect
to Staybridge Suites Lehigh Valley Airport, located at 1811 Airport Road,
Allentown, PA.   169.   Hotel Management Agreement, dated as of      , 2001,
between HJ & VJ, LLC and MMC, with respect to Hilton Garden Inn Lehigh Valley
Airport, located at 1787 Airport Road, Allentown, PA.   170.   Hotel Management
Agreement, dated as of      , 2001, by and between RFS Leasing II, Inc. and
Flagstone, with respect to MainStay Suites Pittsburgh, located at 1000 Park Lane
Drive, Pittsburgh, PA.   171.   Hotel Management Agreement, dated as of
January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone, with respect
to Residence Inn Providence, located at 500 Kilvert Street, Warwick, RI.

 

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172.   Amended and Restated Hotel Management Agreement, dated as of December 2,
1996, between FMH, L.P. and MMC (successor-in-interest to CapStar Management
Company, L.P.) with respect to The Westin Francis Marion, located at 387 King
Street, Charleston, SC.   173.   Hotel Management Agreement, dated as of
February 19, 1998, between Newco Management Company, as agent for Whitney
Properties, L.P., and MMC, with respect to The Whitney Hotel, located at 700
Woodrow Street, Columbia, SC.   174.   Hotel Management Agreement, dated as of
September 2, 1999, between Poinsett Hotel Company, LLC and MMC, with respect to
The Westin Poinsett, located at 220 South Main Street, Greenville, SC.   175.  
Hotel Management Agreement, dated as of January 1, 2001, by and between RFS
Leasing II, Inc. and Flagstone, with respect to Holiday Inn Coliseum, located at
630 Assembly Street, Columbia, SC.   176.   Hotel Management Agreement, dated as
of January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone, with
respect to Comfort Inn Carowinds, located at 3725 Avenue of the Carolinas, Ft.
Mill, SC.   177.   Hotel Management Agreement, dated as of      , 2001, by and
between RFS Leasing II, Inc. and Flagstone, with respect to MainStay Suites
Greenville, located at 2671 Dry Pocket Road, Greenville, SC.   178.   Hotel
Management Agreement, dated as of February      , 2001, between West End Hotel
Partners, LLC and MMC, with respect to Stadium Club Marriott at Vanderbilt
University, located at 2525 West End, Nashville, TN.   179.   Hotel Management
Agreement, dated as of January 1, 2001, by and between RFS Leasing II, Inc. and
Flagstone, with respect to Hampton Inn Walnut Grove Memphis, located at 33
Humphrey Center Drive, Memphis, TN.   180.   Hotel Management Agreement, dated
as of      , 2001, by and between RFS Leasing II, Inc. and Flagstone, with
respect to MainStay Suites Brentwood, located at 107 Brentwood Blvd., Brentwood,
TN.   181.   Hotel Management Agreement, dated as of January 1, 2001, between
MeriStar Hotel Lessee, Inc., and MMC, with respect to the Holiday Inn DFW
Airport West, located at 3005 Airport Freeway, Bedford, TX, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.   182.  
Hotel Management Agreement, dated as of January 1, 2001, between MeriStar Hotel
Lessee, Inc., and MMC, with respect to the Holiday Inn Select DFW Airport South,
located at 4440 West Airport Freeway, Irving, TX, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.

 

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183.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Hilton Austin North & Towers,
located at 6000 Middle Fiskville Road, Austin, TX, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.   184.   Hotel
Management Agreement, dated as of January 1, 2001, between MeriStar SPE Leasing
Corp., and MMC, with respect to the Hilton Houston Westchase & Towers, located
at 9999 Westheimer, Houston, TX.   185.   Hotel Management Agreement, dated as
of January 1, 2001, between MeriStar Hotel Lessee, Inc., and MMC, with respect
to the Hilton Midland & Towers, located at 117 West Wall Avenue, Midland, TX, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   186.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar SPE Leasing Corp., and MMC, with respect to the Hilton
Arlington, located at 2401 East Lamar Blvd., Arlington, TX.   187.   Hotel
Management Agreement, dated as of January 1, 2001, between MeriStar SPE Leasing
Corp., and MMC, with respect to the Doubletree Hotel Austin, located at 6505
I-35 North, Austin, TX.   188.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc., and MMC, with respect to
the Sheraton Houston Hotel Brookhollow, located at 3000 North Loop West,
Houston, TX, as amended by that certain Amendment to Management Agreement, dated
as of January 1, 2002.   189.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc., and MMC, with respect to
the Sheraton Dallas Hotel Brookhollow, located at 1241 West Mockingbird Lane,
Dallas, TX, as amended by that certain Amendment to Management Agreement, dated
as of January 1, 2002   190.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc., and MMC, with respect to
the Radisson Hotel Dallas, located at 1893 West Mockingbird Lane, Dallas, TX, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   191.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc., and MMC, with respect to the
Renaissance Hotel North Dallas, located at 4099 Valley View Lane, Dallas, TX, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   192.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar SPE Leasing Corp., and MMC, with respect to the Houston
Marriott Hotel West Loop by the Galleria, located at 1750 West Loop South,
Houston, TX.   193.   Management Agreement, dated as of March 29, 1995, between
DJONT Operations, L.L.C. and MMC (as successor to American General Hospitality,
Inc.), with respect to

 

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    the Embassy Suites Hotel Love Field, located at 3880 West Northwest Highway,
Dallas, TX.   194.   Hotel Management Agreement, dated as of January 1, 2001, by
and between RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn
Express I-35 Airport Austin, located at 7622 I-35 North, Austin, TX.   195.  
Hotel Management Agreement, dated as of January 1, 2001, by and between RFS
Leasing II, Inc. and Flagstone, with respect to Residence Inn River Plaza,
located at 1701 South University Drive, Ft. Worth, TX.   196.   Hotel Management
Agreement, dated as of January 1, 2001, by and between RFS Leasing II, Inc. and
Flagstone, with respect to TownePlace Suites Ft. Worth, located at 4200
International Plaza, Ft. Worth, TX.   197.   Hotel Management Agreement, dated
as of January 1, 2001, by and between RFS Leasing II, Inc. and Flagstone, with
respect to Hampton Inn Hobby Airport Houston, located at 8620 Airport Boulevard,
Houston, TX.   198.   Hotel Management Agreement, dated as of January 1, 2001,
by and between RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn
Laredo, located at 7903 San Dario, Laredo, TX.   199.   Hotel Management
Agreement, dated as of January 1, 2001, by and between RFS Leasing II, Inc. and
Flagstone, with respect to Residence Inn Tyler, located at 3303 Troup Highway,
Tyler, TX.   200.   Hotel Management Agreement, dated as of January 1, 2001,
between MeriStar Hotel Lessee, Inc., and MMC, with respect to the Hilton Salt
Lake City Airport, located at 5151 Wiley Post Way, Salt Lake City, UT, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   201.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc., and MMC, with respect to the Radisson
Hotel Old Town, located at 901 North Fairfax Street, Alexandria, VA, as amended
by that certain Amendment to Management Agreement, dated as of January 1, 2002.
  202.   Hotel Management Agreement, dated as of January 1, 2001, between
MeriStar Hotel Lessee, Inc., and MMC, with respect to the Holiday Inn & Suites
Historic District, located at 625 First Street, Alexandria, VA, as amended by
that certain Amendment to Management Agreement, dated as of January 1, 2002.  
203.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Hilton Arlington & Towers,
located at 950 North Stafford Street, Arlington, VA, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.

 

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204.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Hilton Crystal City at National
Airport, located at 2399 Jefferson Davis Highway, Arlington, VA, as amended by
that certain Amendment to Management Agreement, dated as of January 1, 2002.  
205.   Hotel Management Agreement, dated as of February      , 2000, between
National Hospitality Corporation and MMC, with respect to the Sheraton National
Hotel, located at 900 South Orme Street, Arlington, VA.   206.   Hotel
Management Agreement, dated as of December 5, 2000, between JBG/Rockwood Gateway
Plaza Operator, L.L.C. and MMC, with respect to the Sheraton Reston Hotel,
located at 11810 Sunrise Valley Drive, Reston, VA.   207.   Hotel Management
Agreement, dated as of January 1, 2001, between MeriStar Hotel Lessee, Inc., and
MMC, with respect to the Hilton Bellevue, located at 100 112th Avenue, N.E.,
Bellevue, WA, as amended by that certain Amendment to Management Agreement,
dated as of January 1, 2002.   208.   Hotel Management Agreement, dated as of
     , between      and MMC, with respect to Holiday Inn Beckley, located at
1924 Harper Road, Beckley, WV.   209.   Hotel Management Agreement, dated as of
January 1, 2001, between MeriStar Hotel Lessee, Inc., and MMC, with respect to
the Holiday Inn Madison, located at 3841 East Washington Avenue, Madison, WI, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   210.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar SPE Wisconsin Corp., and MMC, with respect to the Crowne
Plaza Madison, located at 4402 East Washington Avenue, Madison, WI.   211.  
Hotel Management Agreement, dated as of February 2, 2000, between MIP Lessee, LP
and MMC, with respect to Wyndham Milwaukee Center, 139 Kilbourn Avenue,
Milwaukee, WI.   212.   Hotel Management Agreement, dated as of January 1, 2001,
by and between RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn
Express Mayfair Mall-Milwaukee, located at 11111 West North Avenue, Wauwatosa,
WI.   213.   Hotel Management Agreement, dated as of January 1, 2001, between
MeriStar Hotel Lessee, Inc., and MMC, with respect to the Holiday Inn Calgary
Airport, located at 1250 McKinnon Drive, N.E., Calgary, Alberta, Canada, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.   214.   Hotel Management Agreement, dated as of January 1,
2001, between MeriStar Hotel Lessee, Inc., and MMC, with respect to the Holiday
Inn Metrotown, located at 4405 Central Blvd., Burnaby, British Columbia, Canada,
as amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.

 

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215.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Sheraton Guildford Hotel,
located at 15269 104th Avenue, Surrey, British Columbia, Canada, as amended by
that certain Amendment to Management Agreement, dated as of January 1, 2002.  
216.   Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Ramada Vancouver Centre,
located at 898 West Broadway, Vancouver, British Columbia, Canada, as amended by
that certain Amendment to Management Agreement, dated as of January 1, 2002.  
217.   Hotel Management Agreement, dated as of April 15, 1999, among Crystal
Square Development Corp., Crystal Square Management Inc., TYBA Crystal
Investment Corp., Dong Ah Canada Development Corp., MeriStar Management
(Vancouver Metrotown) Ltd., and MMC, with respect to Hilton Vancouver Metrotown,
located at 6083 McKay Avenue, Burnaby, British Columbia, Canada.   218.  
Management Consulting Agreement, dated August 6, 2001, between American Ski
Company and certain of its subsidiaries and MMC, with respect to: (a) Steamboat
Grand Resort Hotel & Conference Center, located at 2300 Mount Werner Circle,
Steamboat Springs, CO; (b) Sunday River Grand Summit Hotel & Conference Center,
located at Sunday River Resort, Sunday River Access Road, Bethel, ME;
(c) Sugarloaf/USA Resort & Conference Center, located at Sugarloaf, Rural Route
One, Carrabassett Valley, ME (d) Attitash Resort, Grand Summit Hotel and
Conference Center, Route 302, Bartlett, NH; (e) The Canyons Resort, located at
4000 The Canyons Resort Drive, Park City, UT; (f) Killington Resort & Conference
Center, located at 225 East Mountain Road, Killington, VT; (g) Mount Snow
Resort, located at 89 Mountain Road, West Dover, VT.   219.   Services
Agreement, dated as of December 21, 2001, between United Golf LLC and MMC, with
respect to (i) Blackhawk Golf Club, St. Charles, IL, (ii) Cleghorn Plantation
Golf Club, Rutherfordton, NC (iii) Lake Breeze Golf Club, Winneconne, WI and
(iv) Serenoa Golf Club, Sarasota, FL.

MANAGEMENT AGREEMENTS WITH CROSSROADS MANAGEMENT AND INTERSTATE HOTELS

1.   Management Agreement, dated October 30, 1996, between City Square
Associates, LLC and Interstate Hotels Company (“Interstate”), as amended by that
certain First Amendment to Management Agreement, dated March 24, 1999, with
respect to The Lexington Hotel, located at 4000 North Central Avenue, Phoenix,
AZ.   2.   Management Agreement, dated January 1, 2001, between FCH/Interstate
Leasing, L.L.C. and Crossroads Hotel Management Company, L.L.C. (“Crossroads”)
with respect to Fairfield Inn by Marriott Downtown Scottsdale, located at 5101
N. Scottsdale Road, Scottsdale, AZ.   3.   Management Agreement, dated as of
January 1, 2001 with ENN Leasing Company, Inc. (“Equity”) and Crossroads, with
respect to Hampton Inn Scottsdale-Old Town, located at 4415 N. Civic Center
Plaza, Scottsdale, AZ.

 

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4.   Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company II, LLC and Crossroads, with respect to Residence Inn by Marriott
Tucson, located at 6477 East Speedway Boulevard, Tucson, AZ.   5.   Management
Agreement, dated December 19, 1997, between Pacifica Hotel and Conference Center
Partnership and Interstate, with respect to Radisson Los Angeles Westside,
located at 6161 Centinela Avenue, Culver City, CA.   6.   Management Agreement,
dated May 1, 1995, between Connecticut General Life Insurance Company and
Interstate Hotels LLC, as amended by that certain Letter Amendment to Management
Agreement, dated December 11, 1995, as further amended by that certain Amendment
to Management Agreement, dated April 6, 1999, with respect to Marriott’s Laguna
Cliff Resort (Dana Point), located at 25135 Park Lantern, Dana Point, CA 92629.
  7.   Management Agreement, dated June 30, 1995, between Today’s IV, Inc. and
Interstate Hotels, LLC, as amended by that certain Letter Agreement, dated
December 15, 1995, as further amended by that certain Letter Agreement, dated
October 24, 1997, that certain Amendment to Management Agreement, dated
August 10, 1999, and that certain Letter Agreement November 18, 2001, with
respect to The Westin Bonaventure, located at 404 S. Figueroa Street, Los
Angeles, CA.   8.   Food and Beverage Operations Management Agreement, dated as
of June 30, 1995, between FIT Investment Corporation d/b/a FIT Texas Investment
Corporation and Interstate Hotels, LLC, with respect to The Westin Bonaventure,
located at 404 S. Figueroa Street, Los Angeles, CA.   9.   Management Agreement
dated as of August 11, 2000, between Amcor Investments and Crossroads, with
respect to Hampton Inn Milpitas, located at 215 Barber Court, Milpitas, CA.  
10.   Operation Agreement, dated September 29, 1997, between HMC/Interstate
Ontario, LP and Interstate Hotels LLC, as amended by that certain Consent,
Assignment and Assumption and Amendment of Operation Agreement, dated
December 31, 1998, with respect to the Marriott Ontario Airport, located 2200
East Holt Boulevard, Ontario, CA.   11.   Management Agreement, dated
December 14, 1998, between Today’s VI, LLC and Interstate Hotels Company, as
amended by that certain Letter Agreement re: Amendment to Management Agreement,
dated November 18, 2001, with respect to Ontario Amerisuites Hotel, located at
4760 East Mills Circle, Ontario, CA.   12.   Operation Agreement, dated
December 15, 1994, between Host Marriott, L.P. and Interstate Hotels, LLC, as
amended by that certain First Amendment to Operation Agreement, dated
November 1, 1996, as further amended by that certain Second Amendment to
Operation Agreement, dated January 31, 1997, and that certain Consent,
Assignment and Assumption and Amendment of Operation Agreement December 31,
1998, with respect to the Marriott Fisherman’s Wharf, located at 1250 Columbus
Avenue, San Francisco, CA.

 

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13.   Management Agreement, dated May 30, 1992, between Today’s Hotel
Corporation and Interstate Hotels LLC, as amended by that certain Letter
Agreement re: Amendment to Management Agreement, dated November 18, 2001, as
further amended by that certain Second Amendment to Management Agreement, dated
September 14, 2001, and that certain Second Addendum to Management Agreement and
Related Agreements, dated August      2000, with respect to the Holiday Inn San
Francisco Golden Gateway, located at 1500 Van Ness Avenue, San Francisco, CA.  
14.   Management Agreement, dated as of July 24, 2001, between SSF Investments,
LLC and Crossroads, with respect to the Comfort Suites South San Francisco,
located at 121 East Grand Avenue, South San Francisco, CA.   15.   Management
Agreement, dated December 15, 1995, between Interstone/CGL WC Partners, LP and
Interstate Hotels, LLC, as amended by that certain Side Letter re: sale of
hotels, dated December 28, 1995, as further amended by that certain Letter
Notice, dated January 1, 1999, that certain Cash Flow Letter, dated January 1,
1999, that certain Cash Flow Letter dated May 12, 1999, and that certain Letter
re: Interstone/CGL WC Partners, LP, dated January 1, 1999, with respect to the
Marriott Warner Center, located at 21850 Oxnard Street, Woodland Hills, CA.  
16.   Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company IV, LLC and Crossroads, with respect to the Hampton Inn Denver/Aurora,
located at 1500 South Abilene, Aurora, CO.   17.   Management Agreement, dated
as of January 1, 2001, between Equity and Crossroads, with respect to the
Hampton Inn Colorado Springs/I-25 North, located at 7245 Commerce Center Drive,
Colorado Springs, CO.   18.   Management Agreement, dated as of February 12,
1999, between Colorado Springs Hotel Partners, LLC and Crossroads with respect
to the Hilton Garden Inn Colorado Springs, located at 1810 Briargate Parkway,
Colorado Springs, CO.   19.   Management Agreement, dated as of January 1, 2001,
between Equity and Crossroads, with respect to Residence Inn by Marriott
Colorado Springs, located at 3880 North Academy Boulevard, Colorado Springs, CO.
  20.   Management Agreement dated as of April 25, 2002, between Briad Lodging
Group Danbury, LLC and Crossroads Hospitality Management Company, with respect
to the Spring Hill Suites Danbury, located at 30 Old Ridgebury Road, Danbury,
Connecticut.   21.   Management Agreement, dated November 19, 2001, between CY
Manchester Tenant Corporation and Crossroads, with respect to the Courtyard By
Marriott Hartford/Manchester, located at 225 Slater Street, Manchester, CT.  
22.   Management Agreement, dated November 19, 2001, between RI Manchester
Tenant Corporation and Crossroads, with respect to the Residence Inn by Marriott
Hartford/Manchester, located at 210 Hale Road, Manchester, CT.

 

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23.   Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Hampton Inn Meriden, located at 10 Bee Street,
Meriden, CT 06450.   24.   Management Agreement, dated as of January 1, 2001,
between Equity and Crossroads, with respect to the Hampton Inn Milford, located
at 129 Plains Road, Milford, CT.   25.   Management Agreement, dated as of
January 1, 2001, between Orange Hotel Development, LP and Crossroads, as
assigned pursuant to that certain Assignment and Assumption of Management
Agreement dated January 1, 2001, with respect to the Courtyard by Marriott
Orange, located at 136 Marsh Hill Road, Orange, CT.   26.   Management
Agreement, dated as of August      , 2002, between FCLC Shleton, LLC and
Crossroads Hospitality Management Company, with respect to the AmeriSuites Hotel
Shelton, 695 Bridgeport Avenue, Shelton, CT.   27.   Management Agreement, dated
July 24, 2001, between Delaware Hotel Associates, L.P. and Crossroads with
respect to the Holiday Inn Select Wilmington, located at 630 Naamans Road,
Claymont, DE.   28.   Management Agreement April 16, 2001, between AGL
Investments No. 3 Limited Partnership and Interstate Hotels Company, as amended
by that certain Addendum to Management Agreement April 16, 2001, with respect to
the Washington Terrace Hotel (f/k/a Washington Park Terrace Doubletree Hotel),
located at 1515 Rhode Island Avenue NW, Washington, DC.   29.   Amended and
Restated Management Agreement, dated January 1, 2001, between Massachusetts
Mutual Life Insurance Company and Interstate Hotel Company, with respect to the
Sheraton Biscayne Bay Hotel, located at 495 Brickell Ave., Miami, FL.   30.  
Management Agreement, dated May 22, 1985, between Crocker Center Associates III,
Ltd. and      , as amended by that certain Amendment to Management Agreement,
December 20, 1994, and as further amended by that certain First Amendment to
Management Agreement, November 8, 1985; Third Amendment to Management Agreement
January 17, 2001; Extensions of Management Agreement May 1998 through August 31,
1999, with respect to the Marriott Boca Raton Hotel, located at 5150 Town Center
Circle, Boca Raton, FL.   31.   Management Agreement, dated December 21, 1996,
between Don Cesar Resort Hotel Ltd. and Interstate Hotels, LLC, as amended by
that certain First Amendment to Management Agreement, dated January 14, 1997,
and as further amended by that certain letter agreement, dated April 6, 1999,
and that certain letter agreement, dated February 8, 2002, with respect to the
Don Cesar Resort Hotel & Spa, located at 3400 Gulf Boulevard, St. Pete Beach,
FL.   32.   Primary Management Agreement, dated as of June 10, 1999, between
Wyndham International Operating Partnership, LP and IHC II, LLC; Submanagement
Agreement, dated as of June 10, 1999, between IHC II, LLC and Marriott, both
with respect to the Marriott Indian River Plantation, located at 555 N.E. Ocean
Blvd., Stuart, FL.

 

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33.   Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company I, LLC and Crossroads, with respect to the Comfort Inn Jacksonville
Beach, located at 1515 North 1st Street, Jacksonville, FL.   34.   Management
Agreement, dated as of January 1, 2001, between with ENN Leasing Company I, LLC
and Crossroads, with respect to the Hampton Inn Jacksonville/Orange Park,
located at 6135 Youngerman Circle, Jacksonville, FL.   35.   Management
Agreement, dated March 13, 1998, between Kendall Resort Hotel Limited
Partnership and Crossroads, as supplemented by that certain Pre-Opening
Activities Agreement, dated March 13, 1998, with respect to the Radisson Suites
Kendall, located at 9100 N. Kendall Drive, Miami, FL.   36.   Management
Agreement February 20, 2002, effective April 1, 2002, as amended April 29, 2002,
Holiday Inn Key West Beachside, located at 3841 N. Roosevelt Blvd., Key West, FL
(Notice of termination of this agreement pending sale of the hotel has been
received).   37.   Management Agreement October 20, 2000, between Maingate
Hospitality, L.P. and Interstate Hotels Company, as amended by that certain
Amendment, dated February 21, 2002, with respect to the Renaissance Worldgate
Hotel, located at 3011 Maingate Lane, Kissimmee, FL.   38.   Management
Agreement, dated October 25, 1988, between Teachers Retirement System of the
State of Illinois and Interstate Hotels LLC, as amended by that certain
Amendment to Management Agreement, dated September 26, 2001, with respect to the
Marriott Orlando Airport, located at 7499 Augusta National Drive, Orlando, FL.  
39.   Management Agreement, dated January 31, 2002, between Ganesh Hospitality
Inc. and Crossroads, with respect to the Best Western Universal Orlando, located
at 3618 Vineland Road, Orlando, FL.   40.   Management Agreement January 31,
2002, between Sita Resorts and Crossroads, with respect to the Comfort Inn
International, located at 8134 International Drive, Orlando, FL.   41.  
Management Agreement January 15, 2001, between Universal Towers Construction,
Inc. and Interstate Hotels Company, with respect to the Crowne Plaza Orlando,
located at 7800 Universal Blvd., Orlando, FL.   42.   Management Agreement,
dated as of January 1, 2001, between Equity and Crossroads, with respect to the
Homewood Suites Orlando Convention Center, located at 8745 International Drive,
Orlando, FL.   43.   Management Agreement, dated December 8, 2000, between
Interconn Ponte Vedra Company, LLC and Interstate Hotels Company, with respect
to the Marriott at Sawgrass, located at 1000 PGA Tour Boulevard, Ponte Vedra
Beach, FL.

 

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44.   Management Agreement, dated January 1, 2001, between FCH/Interstate
Leasing, L.L.C. and Crossroads, as assigned pursuant to that certain Assignment
and Assumption of Agreements re: Lease and Management Agreement, dated March 26,
2001, with respect to the Fairfield Inn Atlanta/Downtown, located at 175
Piedmont Avenue NE, Atlanta, GA.   45.   Primary Management Agreement, dated as
of June 10, 1999, by and between Wyndham International Operating Partnership, LP
and IHC II, LLC; Submanagement Agreement, dated as of June 10, 1999, by and
between IHC II, LLC and Marriott, both with respect to the Marriott
Atlanta/North Central, located at 2000 Century Blvd., N.E., Atlanta, GA.   46.  
Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Hampton Inn Atlanta/Northlake, located at 3400
Northlake Parkway, Atlanta, GA.   47.   Management Agreement, dated as of
January 1, 2001, between Equity and Crossroads, with respect to the Homewood
Suites Augusta, located at 1049 Stevens Creek Road, Augusta, GA.   48.  
Management Agreement, dated as of January 1, 2001, between ENN Leasing Company
I, LLC and Crossroads, with respect to the Hampton Inn Columbus Airport, located
at 5585 Whitesville Road, Columbus, GA.   49.   Management Agreement, dated
January 31, 2000, between Forward One, LLC and Interstate Hotels Company; Food
and Beverage Operations Management Agreement January 31, 2000, as amended by
that certain Letter Agreement, dated November 18, 2001, both with respect to the
Renaissance Ilikai Waikiki Hotel, located at 1777 Ala Moana Blvd., Honolulu, HI.
  50.   Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect o the Boise Residence Inn by Marriott, located at 1401
S. Lusk Ave., Boise, ID.   51.   Management Agreement, dated as of January 1,
2001, between Equity and Crossroads, with respect to the Homewood Suites Chicago
Downtown, located at 40 East Grand, Chicago, IL.   52.   Management Agreement,
dated as of January 1, 2001, between State and Grand Hotel Partners LLC and
Interstate Hotels, LLC, with respect to the Hilton Garden Inn Chicago Downtown
North, located at Ten East Grand Avenue, Chicago, IL; Management Services
Agreement, dated as of January 1, 2001, between the same parties with respect to
the same party.   53.   Management Agreement, dated as of January 1, 2001, with
ENN Leasing Company I, LLC and Crossroads, Hampton Inn Chicago/Naperville,
located at 1087 Diehl Road, Naperville, IL.

 

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54.   Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company I, LLC and Crossroads, with respect to the Hampton Inn Indianapolis
Northeast/Castleton, located at 6817 East 82nd Street, Indianapolis, IN.   55.  
Management Agreement, dated as of January 1, 2001, between ENN Leasing Company
II, LLC and Crossroads, with respect to the Hampton Inn Kansas City/Overland
Park, located 10591 Metcalf Frontage Road, Overland Park, KS.   56.   Management
Agreement, dated as of January 1, 2001 with ENN Leasing Company I, LLC and
Crossroads, with respect to the Hampton Inn Louisville East (I-64), located at
1902 Embassy Square Boulevard, Louisville, KY.   57.   Management Agreement
dated February 20, 2002, between HIM Portland, LLC and Crossroads, with respect
to the Portland Travelodge, located at 1200 Brighton Avenue, Portland, ME.   58.
  Management Agreement, dated as of January 1, 2001, between ENN Leasing Company
IV, LLC and Crossroads, with respect to the Hampton Inn Baltimore/Glen Burnie,
located at 6617 Gov. Ritchie Highway, Glen Burnie, MD.   59.   Management
Agreement, dated January 18, 1984, between Charles Square Cambridge LLC and
Cambridge Hotel Associates, as amended by that certain First Amendment to
Management Agreement, dated June 18, 1999, Letter Agreement dated December 4,
1991; Assignment of Owner’s Interest dated August 9, 2001, with respect to The
Charles Hotel, located at One Bennett Street, Cambridge, MA.   60.   Management
Agreement, dated January 1, 2001, between Syracuse/Westborough Hotel Associates
and Crossroads, as assigned pursuant to that certain Assignment and Assumption
of Management Agreement, dated January 1, 2001, with respect to the Westborough
Courtyard by Marriott, located at 3 Technology Drive, Westborough, MA.   61.  
Management Agreement, dated as of January 1, 2001, between ENN Leasing Company
I, LLC and Crossroads, with respect to the Hampton Inn Ann Arbor South, located
at 925 Victors Way, Ann Arbor, MI.   62.   Management Agreement, dated as of
January 1, 2001, between ENN Leasing Company III, LLC and Crossroads, with
respect to the Hampton Inn Detroit/Madison Heights, located at 32420 Stephenson
Highway, Madison Heights, MI.   63.   Management Agreement April 1, 2002,
between Massachusetts Mutual Life Insurance Company and Interstate Hotels
Company, with respect to the Marriott at Eagle Crest, located at 1275 S. Huron
Street, Ypsilanti, MI.   64.   Management Agreement, dated as of January 1,
2001, between ENN Leasing Company II, LLC and Crossroads, with respect to the
Residence Inn by Marriott Minneapolis/St. Paul, located at 3040 Eagandale Place,
Eagan, MN.

 

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65.   Management Agreement, dated September 4, 1997, between Lakeland Income
Properties, LLC and Crossroads, as amended by letter, dated January 14, 1999, as
further amended by that certain Amendment to Management Agreement, dated as of
June 29, 2001, with respect to the Jackson Sleep Inn, located at 4351 Lakeland
Drive, Jackson, MS.   66.   Management Agreement, dated as of      , 2002,
between Oxford Asset Partners, LLC and Crossroads Hospitality Management
Company, with respect to the Downtown Inn of Oxford, located in Oxford, MS.  
67.   Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company II, LLC and Crossroads, with respect to the Hampton Inn Kansas City
Airport, located at 11212 North Newark Circle, Kansas City, MO.   68.  
Management Agreement, dated April 6, 1990, between Maryville Center Joint
Venture and Interstate Hotels Corporation, as amended by that certain Amendment
to Management Agreement, dated March 18, 1997, with respect to the Marriott St.
Louis West, located at 660 Maryville Centre Drive, St. Louis, MO.   69.  
Management Agreement, dated as of January 1, 2001, between ENN Leasing Company
IV, LLC and Crossroads, with respect to the Hampton Inn St. Louis/Westport,
located at 2454 Old Dorsett Road, Maryland Heights, MO.   70.   Management
Agreement, dated as of January 1, 2001, between Maryville Center CBM Joint
Venture and Crossroads, as assigned pursuant to that certain Assignment and
Assumption of Management Agreement, January 1, 2001, with respect to the
Courtyard by Marriott St. Louis/Maryville, located at 511 Maryville University
Drive, St. Louis, MO.   71.   Management Agreement, dated as of January 1, 2001,
between ENN Leasing Company I, LLC and Crossroads, with respect to the Residence
Inn by Marriott Omaha Central, located at 6990 Dodge Street, Omaha, NE.   72.  
Management Agreement, dated May 20, 2002, between Cal-Neva Lodge, Inc. and
Interstate Hotels Company, with respect to the Cal-Neva Resort, Spa & Casino,
located at 2 Stateline Road, Crystal Bay, NV.   73.   Management Agreement,
dated as of April 25, 2002, between Briad Lodging Group Cranbury, LLC and
Crossroads Hospitality Management Company, with respect to Residence Inn by
Marriott Cranbury, located at 2662 Route 130 Cranbury, NJ.   74.   Management
Agreement, dated as of April 25, 2002, between Briad Lodging Group Franklin, LLC
and Crossroads Hospitality Management Company, with respect to Residence Inn by
Marriott Franklin, located at 37 World Fair Drive, Somerset, NJ.   75.  
Management Agreement, dated as of January 1, 2001, between ENN Leasing Company
I, LLC and Crossroads, with respect to the Residence Inn by Marriott Princeton,
located at 4225 Route 1, P.O. Box 8388, Princeton, NJ.

 

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76.   Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company II, LLC and Crossroads, with respect to the Residence Inn by Marriott
Tinton Falls, located at 90 Park Road, Tinton Falls, NJ.   77.   Management
Agreement, dated as of May 15, 2000, between Vail Mansion LLC and Interstate
Hotels Company, as amended by that certain Amendment, dated as of August 17,
2001, with respect to The Inn at Vail Mansion, located in Morristown, NJ.   78.
  Management Agreement, dated as of September 16, 2002, between CNL GA Tenant
Corp. and Crossroads Hospitality Management Company, with respect to the
Courtyard by Marriott Edison-Raritan Center, located at 3105 Woodbridge
Boulevard, Edison, NJ.   79.   Management Agreement, dated as of January 1,
2001, between ENN Leasing Company IV, LLC and Crossroads, with respect to the
Hampton Inn Albany – Wolf Road, located at 10 Ulenski Drive, Albany, NY.   80.  
Management Agreement, dated May 14, 1997, between Med Inn Centers of America,
LLC and Crossroads, with respect to The Pillars Hotel, located at 125 High
Street, Buffalo, NY.   81.   Management Agreement, dated March 31, 1995, between
University Inn Corporation and Crossroads, as amended by letter, dated
August 31, 1995, Canton Best Western University Inn, located at 90 East Main
Street, Canton, NY.   82.   Management Agreement, dated as of October 5, 2001,
between Briad Lodging Group Hauppauge, LLC and Crossroads Hospitality Management
Company, as amended by that certain First Amendment to Management Agreement,
dated as of April 25, 2002, with respect to Residence Inn Long Island/
Hauppauge/Islandia, located at 850 Veterans Memorial Highway, Hauppauge, NY.  
83.   Management Agreement January 11, 2000, between Granite JFK LLC and
Crossroads, as supplemented by Letter re: Loan Amount and Terms, dated
January 11, 2000, as amended by Letter, dated March 20, 2000, with respect to
the Courtyard by Marriott JFK International Airport, located at 145-11 North
Conduit Avenue, Jamaica, NY.   84.   Management Agreement, dated June 20, 1996,
between Granite Park LLC and Crossroads, as assigned pursuant to that certain
Assignment and Assumption of Agreements July 31, 1997, with respect to the Times
Square South Courtyard by Marriott, located at 114 West 40th Street, New York,
NY.   85.   Management Agreement, dated October 10, 1995, between Jetport Hotel
Corporation and Crossroads, as amended by that certain Amendment to Management
Agreement, dated January 1, 1998, as further amended by that certain Second
Amendment to Management Agreement, dated May 27, 1999, and that certain Third
Amendment to Management Agreement, dated December 31, 2000, with respect to the
Comfort Inn Murray Hill, located at 42 West 35th Street, New York, NY.

 

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86.   anagement Agreement, dated August 21, 2000, between Massachusetts Mutual
Life Insurance Company and Interstate Hotels Company, with respect to The Muse
Hotel, located at 130 West 46th Street New York, NY.   87.   Management
Agreement June 6, 2001, between Unigroup Hotel LLC and Crossroads, as
supplemented by that certain Pre-Opening Activities Agreement June 1, 2001, with
respect to the Best Western New York City, located at 522 West 38th Street, New
York, NY.   88.   Management Agreement, dated as of June 27, 2001, between H.
Park Central Hotel and Interstate Hotels Company, as amended by that certain
First Amendment dated January 1, 2002, with respect to the Park Central Hotel,
located at 870 Seventh Avenue, New York, NY.   89.   Management Agreement, dated
February 21, 1997, between Roosevelt Hotel Corporation, N.V. and Interstate
Hotels LLC, as amended by that certain Amendment to Management Agreement, dated
February 22, 1997, as further amended by that certain First Amendment of
Management Agreement, dated July 21, 1997, with respect to The Roosevelt Hotel,
located at 45 East 45th Street, New York, NY.   90.   Management Agreement,
dated as of January 1, 2001, between Equity and Crossroads, with respect to the
Hampton Inn Chapel Hill, located at 1740 US15 and Highway 501, Chapel Hill, NC.
  91.   Operation Agreement, dated January 5, 1995, between Host Marriott, L.P.
and Interstate Hotels, LLC, as amended by that certain First Amendment to
Operation Agreement, dated December 29, 1999, with respect to the Marriott
Charlotte Executive Park, located at 5700 Westpark Drive, Charlotte, NC.   92.  
Management Agreement, dated as of January 1, 2001, ENN Leasing Company I, LLC
and Crossroads, with respect to the Hampton Inn Fayetteville/I-95, located at
1922 Cedar Creek Road, Fayetteville, NC.   93.   Management Agreement, dated as
of January 1, 2001, between ENN Leasing Company I, LLC and Crossroads, with
respect to the Hampton Inn Gastonia, located at 1859 Remount Road, Gastonia, NC.
  94.   Management Agreement, dated November 28, 2001, between Raleigh Prism One
Limited Partnership and Interstate Hotels Company, with respect to the Sheraton
Raleigh Capital Center Hotel, located at 421 South Salisbury Street, Raleigh,
NC.   95.   Management Agreement, dated as of January 1, 2001, between Equity
and Crossroads, with respect to the Holiday Inn Express Wilkesboro, located at
1700 Winkler Street, Wilkesboro, NC.   96.   Management Agreement, dated as of
January 1, 2001, between ENN Leasing Company I, LLC and Crossroads, with respect
to the Holiday Inn Winston-Salem, located at 2008 S. Hawthorne Road,
Winston-Salem, NC.

 

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97.   Management Agreement, dated as of May 4, 1999, between Wyndham
International Operating Partnership, L.P. and Crossroads, with respect to the
Courtyard by Marriott Cleveland East, located at 3695 Orange Place, Beachwood,
OH.   98.   Management Agreement dated as of April 1, 2002, effective April 25,
2002, between 5901 Pfeiffer Road Hotel and Suites, LLC and Crossroads, with
respect to the Clarion Hotel & Suites Cincinnati/ Blue Ash, located at 5901
Pfeiffer Road, Blue Ash, OH.   99.   Management Agreement, dated as of March 25,
1997, between 1460 Ninth Street Associates Limited Partnership and Crossroads,
with respect to the Hampton Inn Cleveland Downtown, located at 1460 E. 9th
Street, Cleveland, OH.   100.   Management Agreement, dated as of January 1,
2001, between ENN Leasing Company I, LLC and Crossroads, with respect to the
Hampton Inn Cleveland/Westlake, located at 29690 Detroit Road, Westlake, OH.  
101.   Management Agreement, dated as of July 10, 1998, between Connecticut
General Life Insurance Company and      , as amended by that certain Amendment
to Management Agreement, dated December 31, 1999, as further amended by that
certain Second Amendment to Management Agreement December 31, 2002, with respect
to the Embassy Suite Columbus, located at 2700 Corporate Exchange Drive,
Columbus, OH.   102.   Management Agreement, dated as of January 1, 2001,
between ENN Leasing Company III, LLC and Crossroads, with respect to the Hampton
Inn Columbus/Dublin, located at 3920 Tuller Road, Dublin, OH.   103.  
Management Agreement, dated as of January 1, 2001, between with ENN Leasing
Company II, LLC and Crossroads, with respect to the Homewood Suites Cincinnati
North, located at 2670 East Kemper Road, Sharonville, OH.   104.   Management
Agreement, dated November 19, 1999, supplemented by that certain Supplement to
Management Agreement, dated January      , 2001, as amended by that certain
Amendment to Management Agreement, dated May      , 2001, and that certain
Amendment, dated April 11, 2002, and effective May 1, 2002, with respect to the
Quartz Mountain Resort, located at Route #1, Box 37, Lone Wolf, OK.   105.  
Management Agreement, dated as of January 1, 2001, between with ENN Leasing
Company IV, LLC and Crossroads, with respect to the Residence Inn by Marriott
Oklahoma City, located 4361 West Reno, Oklahoma City, OK.   106.   Operation
Agreement, dated February 10, 1997, between HMC/Interstate Waterford, L.P. and
     , as amended by that certain Consent, Assignment and Assumption and
Amendment of Operation Agreement, dated December 31, 1998, with respect to The
Waterford Hotel, located at 6300 Waterford Boulevard, Oklahoma City, OK.   107.
  Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Residence Inn by Marriott Portland Downtown,
located at 1710 NE Multnomah St., Portland, OR.

 

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108.   Primary Management Agreement, dated as of June 10, 1999, between Wyndham
International Operating Partnership, LP and IHC II, LLC; Submanagement
Agreement, dated as of June 10, 1999, between IHC II, LLC and Marriott, both
with respect to the Marriott Harrisburg, located at 4650 Lindle Road,
Harrisburg, PA.   109.   Management Agreement, dated November 2, 2001, between
Tanjabal Inc. and Crossroads, with respect to the Fairfield Inn Harrisburg/New
Cumberland, located at 175 Beacon Hill Blvd., New Cumberland, PA.   110.  
Management Agreement dated January 23, 2002, between Lancaster County Convention
Center Authority and      , with respect to the Lancaster County Convention
Center, to be located in Downtown Lancaster, PA.   111.   Management Agreement,
dated January 5, 2001, between Penn Square Partners and      , as amended by
that certain First Amendment to Management Agreement, dated July 11, 2001, with
respect to the Marriott Lancaster Hotel, to be located at Two East King Street,
Lancaster, PA.   112.   Management Agreement September 22, 1997, between
Majestic Holdings, LLC and Crossroads, wit respect to the Holiday Inn
Philadelphia Airport, located at 45 Industrial Highway, Philadelphia, PA.   113.
  Primary Management Agreement, dated as of June 10, 1999, between Wyndham
International Operating Partnership, LP and IHC II, LLC; Submanagement
Agreement, dated as of June 10, 1999, between IHC II, LLC and Marriott, both
with respect to the Marriott Philadelphia West, located at 111 Crawford Avenue,
West Conshohocken, PA.   114.   Management Agreement November 1, 1999, between
Interstate Pittsburgh Hotel Holdings, LLC and Crossroads, with respect to the
Residence Inn by Marriott Pittsburgh Airport, located at 1500 Park Lane, North
Fayette Township, PA.   115.   Management Agreement, July 28, 2000, between
Three Marquis Partners and Crossroads, with respect to the Pittsburgh Country
Inn & Suites, located at 5311 Campbells Run Road, Pittsburgh, Pennsylvania.  
116.   Management Agreement March 25, 1998, between Schenley Center Associates
LP and Crossroads, as amended by that certain First Amendment to Management
Agreement, dated September 29, 1998, as supplemented by that certain Pre-Opening
Activities Agreement, dated March 25, 1998, with respect to the Residence Inn by
Marriott Pittsbrugh/Oakland, located at 3896 Bigelow Blvd., Pittsburgh, PA.  
117.   Management Agreement, dated as of January 1, 2001, between State College
BBQ/Concord Joint Venture and Crossroads, with respect to the Hampton Inn State
College, located at 1101 East College Avenue, State College, PA.   118.  
Management Agreement, dated as of January 1, 2001, between ENN Leasing Company
IV, LLC and Crossroads, with respect to the Hampton Inn Scranton at Montage
Mountain, located at Montage Mountain Rd. & David St., Scranton, PA.

 

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119.   Management Agreement, dated April l, 2000, between FFC/Providence Hotel
Partnership and Crossroads, with respect to the Courtyard by Marriott Downtown
Providence, located at 32 Exchange Terrace, Providence, RI.   120.   Management
Agreement, dated as of January 1, 2001, between ENN Leasing Company IIII, LLC
and Crossroads, with respect to the Hampton Inn Charleston Airport/Coliseum,
located at 4701 Saul White Blvd., North Charleston, SC.   121.   Management
Agreement, dated as of January 1, 2001, between Equity and Crossroads, with
respect to the Hampton Inn Columbia/I-26 Airport Area, located at 1094 Chris
Drive, West Columbia, SC.   122.   Management Agreement, dated August 18, 1996,
between Massachusetts Mutual Life Insurance Company and      , as amended by
that certain Amendment to Management Agreement, dated January 1, 1994, with
respect to the Marriott Memphis Hotel, located at 2625 Thousand Oaks Boulevard,
Memphis, TN.   123.   Management Agreement, dated as of January 1, 2001, between
Equity and Crossroads, with respect to the Comfort Inn Arlington South, located
at 121 East I-20, Arlington, TX.   124.   Management Agreement, dated as of
January 1, 2001, between ENN Leasing Company, I, LLC and Crossroads, with
respect to the Hampton Inn Austin North, located at 7619 IH-35N, Austin, TX.  
125.   Management Agreement, dated as of October 3, 2000, between LB Beaumont
LLC and Crossroads, with respect to the Hilton Beaumont, located at 2335 I-10
South, Beaumont, TX.   126.   Management Agreement, dated as of January 1, 2001,
between ENN Leasing Company I, LLC and Crossroads, with respect to the Hampton
Inn College Station, located at 320 Texas Avenue South, College Station, TX.  
127.   Management Agreement, dated January 1, 2001, between FCH/Interstate
Leasing, L.L.C. and Crossroads, as assigned pursuant to that certain Assignment
and Assumption of Agreements re: Lease and Management Agreement, dated March 26,
2001, with respect to the Fairfield Inn by Marriott Dallas/Stemmons Freeway,
located at 1575 Regal Row at Stemmons Freeway, Dallas, TX.   128.   Management
Agreement, dated as of August 18, 2000, between MRI Houston Hospitality, L.P.
and Crossroads, with respect to the Residence Inn by Marriott Houston
Astrodome/Medical Center, located at 7710 S. Main St., Houston, TX.   129.  
Management Agreement, dated September 28, 2000, between HHG Partners, LLC and
Crossroads, with respect to the Hilton Garden Inn Houston/Bush Intercontinental
Airport, located at 15400 John F. Kennedy Boulevard, Houston, TX 77032.   130.  
Management Agreement, dated January 1, 2001, between FCH/Interstate Leasing,
L.L.C. and Crossroads, as assigned pursuant to that certain Assignment and
Assumption of

 

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    Agreements re: Lease and Management Agreement, dated March 26, 2001, with
respect to the Courtyard by Marriott Houston/Galleria, located at 3131 West Loop
South, Houston, TX.   131.   Management Agreement, dated January 1, 2001,
between FCH/Interstate Leasing, L.L.C. and Crossroads, as assigned pursuant to
that certain Assignment and Assumption of Agreements re: Lease and Management
Agreement, dated March 26, 2001, with respect to the Fairfield Inn
Houston/Galleria, located at 3131 West Loop South, Houston, TX.   132.  
Management Agreement, dated January 1, 2001, between FCH/Interstate Leasing,
L.L.C. and Crossroads, as assigned pursuant to that certain Assignment and
Assumption of Agreements re: Lease and Management Agreement, dated March 26,
2001, with respect to the Fairfield Inn Houston/I-10 East, located at 10155 I-10
East Freeway, Houston, TX.   133.   Management Agreement, dated January 1, 2001,
between FCH/Interstate Leasing, L.L.C. and Crossroads, as assigned pursuant to
that certain Assignment and Assumption of Agreements re: Lease and Management
Agreement, dated March 26, 2001, with respect to the Hampton Inn Houston/I-10
East, located at 828 Mercury Drive, Houston, TX.   134.   Management Agreement,
dated as of September 4, 2002, between HI Galleria Tenant Corporation and
Crossroads Hospitality Management Company, with respect to the Hampton Inn
Houston Near the Galleria, located at 4500 Post Oak Highway, Houston, TX.   135.
  Primary Management Agreement, dated as of June 10, 1999, between Wyndham
International Operating Partnership, LP and IHC II, LLC; Submanagement
Agreement, dated as of June 10, 1999, between IHC II, LLC and Marriott, both
with respect to the Marriott Houston/Greenspoint, located at 255 N. Sam Houston
Parkway East, Houston, TX.   136.   Management Agreement, dated as of January 1,
2001, between Equity and Crossroads, with respect to the Hampton Inn San Antonio
Downtown, , located at 414 Bowie Street, San Antonio, TX.   137.   Management
Agreement, dated as of January 1, 2001, between ENN Leasing Company III, LLC and
Crossroads, with respect to the Comfort Inn Rutland/Trolley Square, located at
19 Allen Street, Rutland, VT.   138.   Management Agreement, dated as of
January 1, 2001, between ENN Leasing Company IV, LLC and Crossroads, with
respect to the Hampton Inn Norfolk Naval Base, located at 8501 Hampton Blvd.,
Norfolk, VA.   139.   Management Agreement, dated May 30, 1992, between Today’s
Hotel Seattle Corporation and Interstate Hotels, LLC, as amended by that certain
First Amendment to Management Agreement, dated July 8, 1992, as further amended
by that certain Second Amendment to Management Agreement, dated August 18, 1992,
that certain Third Amendment to Management Agreement, dated November      ,
1992, and that certain Fourth Amendment to Management Agreement, dated
September 14, 2001, and by letter,

 

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    dated November 18, 2001, with respect to the Crowne Plaza Seattle, located
at 1113 Sixth Avenue, Seattle, WA.   140.   Management Agreement, dated as of
January 1, 2001, between with Equity and Crossroads, with respect to Homewood
Suites Seattle Downtown, located at 206 Western Avenue West, Seattle, WA.   141.
  Management Agreement, dated as of January 1, 2001, between ENN Leasing Company
IV, LLC and Crossroads, with respect to the Hampton Inn Beckley, located at 110
Harper Park Drive, Beckley, WV.   142.   Management Agreement and Addendum,
dated as of January 1, 2001, between Equity and Crossroads, with respect to the
Holiday Inn Bluefield, located at Route 460, Bluefield, WV.   143.   Management
Agreement, dated as of January 1, 2001, between Equity and Crossroads, with
respect to the Hampton Inn Morgantown, located at 1053 Van Voorhis Road,
Morgantown, WV.   144.   Management Agreement, dated January 5, 2000, between
Platinum Properties LLC and      , as assigned pursuant to that certain
Assignment and Assumption dated August 8, 2001, with respect to the Radisson
Morgantown Hotel, located at University Avenue, Morgantown, WV.   145.  
Management Agreement and Addendum, dated as of January 1, 2001, between Equity
and Crossroads, with respect to the Holiday Inn Oak Hill, located 340 Oyler
Avenue, Oak Hill, WV.   146.   Management Agreement, dated December 29, 1993,
between Singdeer Investments Limited and      , as amended by that certain First
Amendment to Management Agreement, dated November 15, 1999, with respect to the
Toronto Colony Hotel, located at 89 Chestnut Street, Toronto, Ontario, Canada.  
147.   Operation Agreement January 29, 1996, between HMC AP Canada Inc. and
     , as amended by that certain Consent, Assignment and Assumption and
Amendment of Operation Agreement, dated December 31, 1998, with respect to the
Toronto Delta Meadowvale, located at 6750 Mississauga Road, Mississauga,
Ontario, Canada.   148.   Management Agreement, dated February 9, 1998, between
Hotel da Praia-Gestao e Exploracao de Hoteis and Interstate Hotels Corporation,
with respect to the Marriott Praia d’el Rey Hotel, located at Plots 78 and 79,
Praia d’el Rey Golf & Country Club, Vale de Janeles Obidos, Portugal.   149.  
Management Agreement and Memorandum, dated December 7, 2001, between 1,000 Y
graluxservice and      , with respect to a hotel property to be located at
Gagarina Street, Khanti-Mansiisk, Russia.

 

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150.   Management Agreement, dated October 3, 1994, between Mospromstoi, Inc.
and      with respect to the Moscow Marriott Grand Hotel, located at 26
Tverskaya Street, Moscow, Russia.   151.   Management Agreement, dated
September 6, 1997, between Mospromstoi, Inc. and Interstate Hotels Corporation
with respect to Moscow Marriott Royal Hotel (f/k/a The Westin Astoria and
Aurora-Lux), located at 11/20 Petrovka Street, Moscow, Russia.   152.  
Management Agreement, dated April      , 1995, between Mospromstoi, Inc. and
Interstate Hotels Corporation, with respect to the Moscow Marriott Tverskaya
(f/k/a Colony Tverskaya), located at 34 First Tverskaya Yamskaya St., Moscow,
Russia.   153.   Management Agreement, dated June 14, 2001, between Eco Phoenix
Holding, PLC and Interstate Hotels Corporation, supplemented by that certain
Pre-Opening Consulting Services Agreement, dated July 25, 2001, that certain
Technical Services Agreement, dated July 25, 2001, with respect to the Courtyard
by Marriott St. Petersburg, located at 4 Goncharnaya Street, St. Petersburg,
Russia 193036 RF.   154.   Management Agreement dated as of December 4, 2000,
between UAB Baltic Mansion Hotels and Interstate Hotels Company, as amended by
that certain Letter, dated December 4, 2000, as further amended by that certain
Letter dated December 5, 2000, with respect to Marriott Vilnius, located at A.
Gostavto & Gyneju Streets, Vilnius, Lithuania.

 

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SCHEDULE 1.01(F)

Existing Participating Leases

Doubletree Norfolk-Norfolk, VA – Hotel Lease Agreement, dated as of December 15,
1994, between Military Circle Hotel Limited Partnership and CapStar Hotels of
Norfolk, Inc., as amended by that certain First Amendment to Hotel Lease
Agreement, dated as of December 31, 1997, as assigned by CapStar Hotels of
Norfolk, Inc. to MeriStar H & R Operating Company, L.P. pursuant to that certain
Assignment of Lease, dated as of January 1, 1999, as further amended by that
certain Second Amendment to Hotel Lease Agreement, dated as of            .

 

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SCHEDULE 1.01(G)

Guarantors

Interstate Hotels & Resorts, Inc.
MeriStar Management Company, L.L.C.
MeriStar AGH Company, L.L.C.
CapStar Winston Company, L.L.C.
CapStar BK Company, L.L.C.
CapStar KCII Company, L.L.C.
CapStar Wyandotte Company, L.L.C.
CapStar St. Louis Company, L.L.C.
MeriStar Laundry, LLC
MeriStar Preston Center, L.L.C.
MeriStar Management (Canmore) Ltd.
MeriStar Management (Vancouver-Metrotown) Ltd.
MeriStar HGI Company, L.L.C.
MeriStar Storrs Company, L.L.C.
MeriStar Vacations, L.L.C.
The Net Effect Strategic Alliance, LLC
MeriStar Flagstone, LLC
BridgeStreet Corporate Housing Worldwide, Inc.
BridgeStreet Maryland, LLC
BridgeStreet Minneapolis, LLC
BridgeStreet Midwest, LLC
BridgeStreet Arizona, LLC
BridgeStreet Nevada, LLC
BridgeStreet Texas, L.P.
BridgeStreet Southwest, LLC
BridgeStreet Ohio, LLC
BridgeStreet California, LLC
BridgeStreet Colorado, LLC
BridgeStreet North Carolina, LLC
BridgeStreet Raleigh, LLC
BridgeStreet Canada, Inc.
BridgeStreet Accommodations, Ltd.
BridgeStreet Accommodations London Limited
Loryt(1), Ltd.
BridgeStreet Wardrobe Place Limited
Apalachee Bay SAS
Interstate Property Corporation

Interstate Property Partnership, L.P.
Interstate Partner Corporation
Interstate Investment Corporation
Interstate Hotels Company
Interstate Member, Inc.

 

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Northridge Holdings, Inc.
Crossroads Hospitality Management Company
IHC Holdings, Inc.
Interstate Hotels, LLC
Interstate/Dallas GP, LLC
Interstate/Dallas Partnership, L.P.
Interstate Pittsburgh Hotel Holdings, LLC
Interstate Manchester Company, L.L.C.
Interstate Houston Partner, L.P.
Interstate/KP Holding Corporation
Interstate Kissimmee Partner, L.P.
Continental Design and Supplies Company, L.L.C.
IHC Moscow Services, L.L.C.
PAH-Hilltop GP, LLC
Hilltop Equipment Leasing Company, L.P.
PAH-Cambridge Holdings, LLC
Crossroads Hospitality Company, L.L.C.
IHC International Development (U.K.), L.L.C.
Northridge Insurance Company
Colony Hotels and Resorts Company
IHC Services Company, L.L.C.
Crossroads Hospitality Tenant Company, L.L.C.
IHC/Moscow Corporation
Future Financing Member Corporation
Crossroads Memphis Financing Corporation
Crossroads Memphis Financing II Corporation
Crossroads/Memphis Partnership, L.P.
Crossroads/Memphis Company, L.L.C.
Crossroads Future Company, L.L.C.
Crossroads Future Financing Company, L.L.C.
Crossroads/Memphis Financing Company, L.L.C.
Crossroads/Memphis Financing Company II, L.L.C.

 

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SCHEDULE 1.01(I)

Specified Acquirer

FelCor.

 

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SCHEDULE 4.01

Subsidiaries

              Subsidiary   Jurisdiction   Principal Place of Business  
Ownership Interest

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MeriStar H & R Operating Company, L.P.   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   1% Interstate Hotels & Resorts, Inc. (GP)
93.4% Interstate Hotels & Resorts, Inc. (LP)
1% CapStar Management Company, L.L.C. (LP)
4.6% : Other Third-Party Limited Partners MeriStar Management Company, L.L.C  
Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% MeriStar H & R Operating Company, L.P.
1% Interstate Hotels & Resorts, Inc MeriStar AGH Company, L.L.C   Delaware  
1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% MeriStar H & R Operating Company, L.P. CapStar
Winston Company, L.L.C   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% MeriStar H & R Operating Company, L.P.
1% Interstate Hotels & Resorts, Inc. CapStar BK Company, L.L.C   Delaware   1010
Wisconsin Avenue, N.W.
Washington, DC 20007   99% MeriStar H & R Operating Company, L.P.
1% MeriStar AGH Company, L.L.C. (GP) CapStar KCII Company, L.L.C   Delaware  
1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% MeriStar H & R Operating Company, L.P.
1% Interstate Hotels & Resorts, Inc CapStar Wyandotte Company, L.L.C   Missouri
  1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% CapStar KCII Company, L.L.C. CapStar St. Louis
Company, L.L.C   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% MeriStar H & R Operating Company, L.P.
1% Interstate Hotels & Resorts, Inc. MIP GP Inc.   Delaware   1010 Wisconsin
Avenue, N.W.
Washington, DC 20007   100% MeriStar H & R Operating Company, L.P. MIP GP, LLC  
Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% MeriStar H & R Operating Company, L.P.
1% MIP GP Inc. MeriStar Laundry, LLC   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% MeriStar H & R Operating Company, L.P.
1% Interstate Hotels & Resorts, Inc. MeriStar Preston Center, L.L.C   Delaware  
1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% MeriStar H & R Operating Company, L.P.

 

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              Subsidiary   Jurisdiction   Principal Place of Business  
Ownership Interest

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MeriStar Management (Canmore) Ltd.   British Columbia
Canada   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% MeriStar Management Company, L.L.C. MeriStar
Management (Vancouver-Metrotown) Ltd.   British Columbia
Canada   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% MeriStar Management Company, L.L.C. MeriStar HGI
Company, L.L.C   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% MeriStar H & R Operating Company, L.P. MeriStar
Storrs Company, L.L.C   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% MeriStar H & R Operating Company, L.P.
1% Interstate Hotels & Resorts, Inc. MeriStar Vacations, L.L.C   Delaware   1010
Wisconsin Avenue, N.W.
Washington, DC 20007   100% MeriStar H & R Operating Company, L.P. The NetEffect
Strategic Alliance, LLC   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% MeriStar H & R Operating Company, L.P. MeriStar
Flagstone, LLC   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% MeriStar H & R Operating Company, L.P. Flagstone
Hospitality Management LLC   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   51% MeriStar Flagstone LLC
(Balance of Interest to be acquired) BridgeStreet Corporate Housing Worldwide,
Inc.   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels & Resorts, Inc. BridgeStreet
Maryland, LLC   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% BridgeStreet Corporate Housing Worldwide, Inc.
BridgeStreet Minneapolis, LLC   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% BridgeStreet Corporate Housing Worldwide, Inc.
BridgeStreet Midwest, LLC   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% BridgeStreet Corporate Housing Worldwide, Inc.
BridgeStreet Arizona, LLC   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% BridgeStreet Corporate Housing Worldwide, Inc.

 

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              Subsidiary   Jurisdiction   Principal Place of Business  
Ownership Interest

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BridgeStreet Nevada, LLC   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% BridgeStreet Corporate Housing Worldwide, Inc.
BridgeStreet Texas, L.P.   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% BridgeStreet Nevada, LLC
1% BridgeStreet Arizona, LLC BridgeStreet Southwest, LLC   Delaware   1010
Wisconsin Avenue, N.W.
Washington, DC 20007   100% BridgeStreet Corporate Housing Worldwide, Inc.
BridgeStreet Ohio, LLC   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% BridgeStreet Corporate Housing Worldwide, Inc.
BridgeStreet California, LLC   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% BridgeStreet Corporate Housing Worldwide, Inc.
BridgeStreet Colorado, LLC   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% BridgeStreet Corporate Housing Worldwide, Inc.
BridgeStreet North Carolina, LLC   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% BridgeStreet Corporate Housing Worldwide, Inc.
BridgeStreet Raleigh, LLC   North Carolina   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% BridgeStreet Corporate Housing Worldwide, Inc.
BridgeStreet Canada, Inc.   Canada   1000 Yonge Street, Suite 301 Toronto,
Ontario, Canada   100% BridgeStreet Corporate Housing Worldwide, Inc.
BridgeStreet Accommodations, Ltd.   United Kingdom   Compass House,
22 Redan Place, 6th Floor,
London, England   100% BridgeStreet Corporate Housing Worldwide, Inc.
BridgeStreet Accommodations
London, Limited   United Kingdom   Compass House,
22 Redan Place, 6th Floor,
London, England   99% BridgeStreet Accommodations, Inc.
1% BridgeStreet Accommodations, Ltd. Loryt(1) Limited   United Kingdom   Compass
House,
22 Redan Place, 6th Floor,
London, England   100% BridgeStreet Accommodations, Ltd. BridgeStreet Wardrobe
Place Limited   United Kingdom   Compass House,
22 Redan Place, 6th Floor,
London, England   100% BridgeStreet Accommodations, Ltd. Apalachee Bay SAS  
France   21 Rue de Madrid
Paris, France   100% BridgeStreet Accommodations, Ltd.

 

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              Subsidiary   Jurisdiction   Principal Place of Business  
Ownership Interest

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Interstate Hotels Company   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels & Resorts, Inc. Crossroads
Hospitality
Management Company   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels & Resorts, Inc. Northridge
Holdings, Inc.   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels & Resorts, Inc. IHC Holdings, Inc.
  Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Northridge Holdings, Inc. Interstate Hotels, LLC  
Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   98.3373% Northridge Holdings, Inc.
1.6627% PAH-Interstate Holdings, Inc. Northridge Insurance Company   Cayman
Islands       100% Interstate Hotels, LLC Interstate Property Corporation  
Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels & Resorts, Inc. Interstate Partner
Corporation   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels & Resorts, Inc. Interstate/KP
Holding Corporation   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Partner Corporation Interstate Property
Partnership, L.P.   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% Interstate Partner Corporation (LP)
1% Interstate Property Corporation (GP) Interstate Pittsburgh Hotel Holdings,
L.L.C   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Property Partnership, L.P. Interstate
Manchester Company, L.L.C   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Property Partnership, L.P. Interstate
Houston Partner, L.P.   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% Interstate Property Partnership, L.P.(LP)
1% Interstate Property Corporation (GP)

 

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              Subsidiary   Jurisdiction   Principal Place of Business  
Ownership Interest

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Interstate Kissimmee Partner, L.P.   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% Interstate/KP Holding Corporation (LP)
1% Interstate Property Corporation (GP) Interstate/Dallas Partnership, L.P.  
Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% Interstate Property Partnership, L.P. (LP)
1% Interstate Property Corporation (GP) Interstate/Dallas GP, L.L.C   Delaware  
1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Property Corporation IHC II, LLC  
Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99.99% MeriStar H & R Operating Company, L.P.
.01% Marriott Hotel Services, Inc. Interstate Investment Corporation   Delaware
  1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels & Resorts, Inc. Interstate Member,
Inc.   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels & Resorts, Inc. IHC Moscow
Services, L.L.C   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels, LLC IHC Services Company, L.L.C  
Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels, LLC Continental Design and
Supplies Company, L.L.C   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% Interstate Hotels, LLC
1% Interstate Member, Inc. PAH-Hilltop GP, LLC   Delaware   1010 Wisconsin
Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels, LLC Hilltop Equipment Leasing
Company, L.P.   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% PAH-Hilltop GP, LLC (GP)
1% Interstate Member, Inc. (LP) PAH-Cambridge Holdings, LLC   Delaware   1010
Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels, LLC

 

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              Subsidiary   Jurisdiction   Principal Place of Business  
Ownership Interest

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IHC International Development (UK), L.L.C   Delaware   1010 Wisconsin Avenue,
N.W.
Washington, DC 20007   100% Interstate Hotels, LLC Crossroads Hospitality
Company, L.L.C   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% Interstate Hotels, LLC
1% Interstate Member, Inc. Colony Hotels and Resorts Company   Delaware   1010
Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels LLC Crossroads Hospitality Tenant
Company, L.L.C   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% Crossroads Hospitality Company, L.L.C.
1% Interstate Member, Inc. Crossroads/Memphis Company, L.L.C   Delaware   1010
Wisconsin Avenue, N.W.
Washington, DC 20007   99% Crossroads Hospitality Company, L.L.C.
1% Interstate Member, Inc.
Crossroads/Memphis Partnership, L.P.   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   GP: 83.2329% Crossroads Memphis Company, L.L.C.
LP: 16.7671% Crossroads Hospitality Company, L.L.C. Crossroads/Memphis Financing
Company, L.L.C   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Crossroads/Memphis Partnership, L.P.
Crossroads/Memphis Financing Company II, L.L.C   Delaware   1010 Wisconsin
Avenue, N.W.
Washington, DC 20007   100% Crossroads/Memphis Partnership, L.P. Crossroads
Future Company, L.L.C   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   99% Crossroads Hospitality Company, L.L.C.
1% Interstate Member, Inc. Crossroads Future Financing Company, L.L.C   Delaware
  1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Crossroads Future Company, L.L.C. Future Financing
Member Corporation   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels & Resorts, Inc. Crossroads/Memphis
Financing Corporation   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels & Resorts, Inc.

 

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              Subsidiary   Jurisdiction   Principal Place of Business  
Ownership Interest

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Crossroads/Memphis
Financing II Corporation   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels & Resorts, Inc. IHC/Moscow
Corporation   Delaware   1010 Wisconsin Avenue, N.W.
Washington, DC 20007   100% Interstate Hotels, LLC

 

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SCHEDULE 4.07

Litigation

1.   Park Cities Hotel LP v. MeriStar Management Co. LLC; District Court of
Dallas County, TX, No. 01-08447.       This action was commenced on October 5,
2001 and alleges mismanagement and breach of contract. A counterclaim was filed
in late October, alleging breach of contract for failure to pay management fees
and reimbursable expenses, and an action by MeriStar to seek repayment of its
loan.   2.   Review by Office of Federal Contract Compliance Programs (OFCCP)  
    Interstate’s corporate office has been involved in an Office of Federal
Contract Compliance Programs (OFCCP) corporate management review since December
1999. The OFCCP has deemed Interstate to be a federal government contractor
because some of Interstate’s hotels have contracts with the government that
exceed $50,000. The OFCCP requested substantial information regarding
compensation for property officials selected by the corporate office,
specifically, General Managers, Directors of Sales, and Controllers for various
hotels throughout the country.       In October 2001, the OFCCP made its
preliminary findings of the review, and determined that the Agency has
compensation “concerns” regarding for certain women and minorities in the GM,
DOS and Controller positions at a sampling of hotels. The OFCCP proposed salary
adjustments, back pay and interest payments to 46 individuals totaling
1.8 million dollars. In November 2001, the OFCCP issued a formal Notice of
Violation outlining their position.       In December 2002, the OFCCP
recommended enforcement by the Department of Labor Solicitor’s office and has
forwarded the case file to the Solicitor’s office for its review. At this time
no Administrative Complaint has been issued by the Solicitor’s office.
Interstate’s counsel has contacted the Solicitor’s office to engage them in
discussion about the resolution of this matter.   3.   Interstate Hotels
Corporation (Stanley H. Trezevant, Jr. v. Interstate Hotels Corporation,
Interstate Hotels Corporation #112, Interstate Inns, Inc., Massachusetts Mutual
Life Insurance Company, Interstate/Memphis Associates, Ltd., Milton Fine, Milton
Fine Associates, and Inter Intermass Memphis Associates, filed August 1, 1994).
      The plaintiff was a partner with affiliates of the Company in a
partnership (the, “Partnership”) that developed the Memphis Marriott and
ultimately became a joint venture partner with Massachusetts Mutual Life
Insurance Company (“Mass Mutual”). In 1991, the joint venture could not meet its
cash obligations. When the Partnership failed to fulfill its contribution
obligations, Mass Mutual exercised its fights reader the joint venture agreement
to take over the Partnership’s interest in the hotel. The plaintiff claims that
representatives of the Company made representations to him to the effect that he
would not be required to make capital contributions and, instead, capital
contributions

 

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    would be made on his behalf by the Company or its affiliates. The plaintiff
also claims that the Company and its affiliates charged excessive management
fees for managing the hotel and has received reimbursement for certain expenses
which the plaintiff alleges were improper, In February, 2001, the judge in this
case granted Mass Mutual’s motion for summary judgment and dismissed all claims
pending against Mass Mutual. Pending Trezevant’s appeal of that summary
judgment. Mass Mutual participated in a mediation in August, 2001 and settled
all of the appealed claims. The Company has engaged Glanker Brown to represent
the Company and its affiliates in this matter, and, despite the Company’s
participation in the August, 2001 mediation, the claim against the Company
remain outstanding. In addition, pursuant to that certain Distribution
Agreement, dated as of June 18, 1999, by and among Patriot American Hospitality,
Inc., (now known as Wyndham International, Inc.), Wyndham International, Inc.
(“Wyndham”), Interstate Hotels, LLC and Interstate Hotels Corporation, Wyndham
agreed to indemnify the Company for up to $500,000 of costs, expenses,
judgments, settlements and attorneys’ fees in connection with this matter.   4.
  Crossroads Hospitality Company, LLC.       The owner of the Surfcomber Hampton
Inn in Miami Beach, Florida has filed with the American Arbitration Association
a Demand for Arbitration alleging a breach of hotel management agreement which
the owner terminated effective September 30, 1999. On August 8, 2000, Crossroads
finally received a specific description of the plaintiff’s claims, alleging
claims for breach of the management agreement as well as for lost business,
including damages of approximately $1.6 million of which more than $1,000,000 is
alleged as lost profits. The owner alleges that, among other things, Crossroads
(a) failed to properly market the hotel; (b) committed egregious accounting and
management errors; and (c) wrongfully retained a termination fee. Crossroads’
initial response to the claims was filed August 28, 2000. Crossroads considers
these claims to be invalid and frivolous and intends to vigorously defend them.
The arbitration panel has heard approximately six weeks of argument and
testimony, and recently entered an award in which the panel (x) did not award to
either party attorneys’ fees as the prevailing party and (y) directed Crossroads
to return to the owner of the hotel the $50,000 termination fee retained by
Crossroads at the time the owner terminated the management agreement. In
response to this, Crossroads has petitioned the Florida Circuit Court (11th
Circuit) to vacate the award by the arbitration panel and grant to Crossroads
attorneys’ fees and expenses on the basis that Crossroads prevailed on the
substantial issues in the dispute.   5.   Crossroads/Memphis Partnership, LP
Carla J. Manley (Executrix of the Estate of Kim N. Fisher) v. Damon’s, et al.  
    To comply with Pennsylvania liquor licensing requirements,
Crossroads/Memphis Partnership, L.P, was a joint venturer with an unaffiliated
franchisee of Damon’s, Inc. (which operates a Damon’s restaurant adjacent to the
Hampton Inn). The plaintiff has sued for damages arising out of the wrongful
death of a pedestrian who was struck and killed by an intoxicated driver who was
allegedly served alcoholic beverages by the Damon’s franchise. Although all of
the Crossroads entities named in the complaint are

 

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    entitled to indemnification from the Damon’s franchisee and insurance
coverage for the claim, a punitive damages claim exists.   6.   Sawgrass Country
Inn and Suites:       On            , 2002, Sawgrass Hotel Partners, Ltd. filed
a complaint in Florida Circuit Court (11th Judicial Circuit) against Crossroads
Hospitality Company, L.L.C. and Interstate Hotels Corporation relating to the
Sawgrass Country Inn and Suites. The action alleges, inter alia, breach of
contract, breach of fiduciary duty, negligent misrepresentation and breach of
implied covenant of good faith and fair dealing. Crossroads and Interstate have
jointly moved the Circuit Court to dismiss the complaint on the bases of both
substantive and procedural defects. The motion is still pending.

 

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SCHEDULE 4.14

Environmental Condition

None.

 

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SCHEDULE 4.15

Legal Requirements; Zoning; Utilities; Access

None.

 

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SCHEDULE 4.16

Existing Indebtedness and Interest Rate Agreements

1.   Promissory Note, dated      , made by Interstate/Dallas GP, LLC and
Interstate/Dallas Partnership, LP (the “Dallas Pledgors”) in favor of FelCor
Lodging Limited Partnership, in the original principal amount of $4,170,000, and
secured by a pledge of the interests of the Dallas Pledgors in FCH/IHC Hotels,
LP.   2.   IHC Holdings, Inc. loans (unsecured inter-company lending
arrangements):       Loan Agreement, dated as of September 10, 1999 (the “IHC
Loan Agreement”), among IHC Holdings, Inc., as lender, Interstate Hotels
Corporation, Interstate Hotels Company, Crossroads Hospitality Management
Company and certain other designated subsidiaries, as borrowers. Currently the
borrowers (including the other designated borrowers) are:

  •   Interstate Hotels Corporation (no amounts outstanding);     •   Interstate
Hotels Company (no amounts outstanding);     •   Crossroads Hospitality
Management Company (no amounts outstanding);

  •   Interstate Property Corporation ($375,000 principal amount outstanding as
of 3/28/01);     •   Interstate Partner Corporation ($12,000,000 principal
amount outstanding as of 3/28/01);     •   Interstate Pittsburgh Hotel Holdings,
LLC ($5,700,000 principal amount outstanding as of 3/28/01).

3.   Interest Rate Agreements:

  •   Sociètè Gènèrale, New York Branch, dated April 10, 2002 – Notional Amount:
$30,000,000.     •   Credit Lyonnais New York, dated September 17, 2002 –
Notional Amount: $40,000,000.

 

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SCHEDULE 4.21

Owned Hospitality Properties

Pittsburgh Airport Residence Inn by Marriott
1500 Park Lane
North Fayette Township, Pennsylvania 15275

 

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SCHEDULE 4.23(A)

Insurance Companies, Insurance Licenses and Deposited Securities

Northridge Insurance Company, a Cayman Islands corporation

  •   Jurisdictions in which Northridge holds a license to transact business:
Cayman Islands only.     •   Lines of insurance in which it is engaged: see
Schedule 4.23(e).     •   Securities deposited with state insurance departments
and other governmental authorities: None.

 

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SCHEDULE 4.23(E)

Insurance Contracts and Reinsurance Contracts

      Policy Type   Limit

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Garagekeepers’ Physical Damage   $250,000 Automobile Physical Damage  
$1 million Innkeepers Liability DIC   $1 million Employment Practices Liability
  $25,000 per claim; $250,000 per year Financial Indemnity   $650,000 Property
Insurance   $1,700,000 Punitive Damages   $1 million

 

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SCHEDULE 4.24

Permitted Housing Business Leasing

                                      Equal to   Greater   Equal to            
or less   than 1 year   or Greater             than   but less   than        
Market Name   1 year   than 5   5 years   Total

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Austin
    158       —       —       158  
Baltimore
    180       7       —       187  
Charlotte
    151       7       —       158  
Chicago
    188       19       —       207  
Cincinnati
    152       2       —       154  
Cleveland
    145       8       —       153  
Columbus
    159       —       —       159  
Dallas
    126       —       —       126  
Detroit
    80       1       —       81  
Louisville
    91       —       —       91  
Memphis
    166       —       —       166  
Milwaukee
    71       2       —       73  
Minneapolis
    144       6       —       150  
National Accounts
    198       —       —       198  
Network Partners
    153       —       —       153  
New York
    88       3       —       91  
Pittsburgh
    122       1       —       123  
Project Team
    36       1       —       37  
Raleigh
    108       —       —       108  
Sunnyvale
    32       —       —       32  
Washington, D.C
    365       1       —       366  
Toronto, Canada
    290       55       65       410  
Bristol, UK
    26       11       —       37  
London, UK
    138       159       60       357  
Manchester, UK
    31       7       —       38  
Newcastle, UK
    64       3       —       67  
South, UK
    90       4       —       94  
Paris, France
    —       25       —       25  
 
   

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    3,552       322       125       3,999  
 
   

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SECTION 5.07

Insurance

     (a)  Insurance Policies Required. While any obligation of the Borrower or
any Guarantor under any Credit Document remains outstanding, the Borrower shall
procure and maintain or shall cause to be procured and maintained continuously
in effect policies of insurance in form and amounts and issued by companies,
associations or organizations licensed to do business in the states the
Hospitality Properties are located, with a Best’s Rating of no less than A-, XI
and otherwise satisfactory to the Administrative Agent covering such casualties,
risks, perils, liabilities and other hazards required by the Administrative
Agent. All original policies, or certificates thereof, and endorsements and
renewals thereof shall be delivered to and retained by the Administrative Agent
unless the Administrative Agent waives this requirement in writing. Without
limiting the generality of the foregoing, the Borrower shall provide or cause to
be provided the following types of insurance coverage:

       i. until repayment of the Notes and satisfaction of all obligations under
the Credit Documents: (i) for Owned Hospitality Properties only, property
insurance on an “all risks” (or “special form”) full replacement cost basis
without deduction for depreciation (or fire, extended coverage and difference in
conditions basis), including flood, earthquake (for any Hospitality Property
located in the State of California, or in any other location that, according to
determination by a Governmental Authority, has an above average risk of seismic
activity) and sinkhole coverages in an amount equal to the replacement cost of
the Improvements (except for earthquake insurance which for each required
Hospitality Property shall be in an amount which is equal to or greater than the
maximum probable loss determined pursuant to a written report by a seismic
engineer, which report and engineer are acceptable to the Administrative Agent,
provided, however, that the aggregate amount of such earthquake insurance
coverage and the deductibles thereunder may be modified at the request of the
Borrower based upon industry standards, subject to approval of the
Administrative Agent); (ii) Commercial General Liability Insurance (including
contractual liability, owners and contractors protective coverages, products &
completed operations, personal & advertising injury liability, fire damage legal
liability and alienated premises coverage) and Comprehensive Auto Liability
Insurance in a minimum amount of $25,000,000 each occurrence; (iii) Statutory
Workers’ Compensation and Employer’s Liability Insurance in the minimum amounts
of $500,000 each accident, $500,000 each employee - disease, $500,000 policy
limit - disease; and (iv) for Owned Hospitality Properties only, Rent loss
insurance against loss of income by reason of any hazard covered under the
insurance required under this subparagraph (a) in an amount sufficient to avoid
any co-insurance penalty, but in any event for not less than one (1) year’s
income from all sources from the Hospitality Property. Each such policy of
property insurance shall contain a replacement cost endorsement and such other
endorsements as are sufficient to prevent the Borrower, the Administrative Agent
and/or the Borrower’s Subsidiaries from becoming a co-insurer with respect to
such buildings and improvements.

       ii. During the renovation or expansion of any Hospitality Property the
Borrower will (i) additionally provide: for Owned Hospitality Properties only,
Builder’s

 

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  Risk Insurance on an “all risks” (or “special form”) and non-reporting basis
including flood, earthquake (if required pursuant to the provisions of and in
the amount stated in clause (a)) and sinkhole coverages, and also including
stored materials and materials while in transit, and (ii) in addition to the
Statutory Workers’ Compensation and Employer’s Liability Insurance required of
the Borrower in the foregoing paragraph i, require each contractor and or
subcontractor who may have occasion to be at the job site to provide evidence of
Statutory Workers’ Compensation and Employer’s Liability Insurance in the
minimum amounts of $100,000 each accident, $100,000 each employee - disease,
$100,000 policy limit - disease.

       iii. Such additional insurance as may be reasonably required by the
Administrative Agent from time to time in the event that any Hospitality
Property is exposed to hazards and risks with respect to which the
Administrative Agent deems the existing insurance inadequate to properly protect
its interests.

     All policies of liability insurance shall name the Administrative Agent,
the Lenders and their respective directors, officers, representatives, agents
and employees (the “Lenders’ Parties”) as additional insureds. The Borrower
shall furnish the Administrative Agent with a certified copy of an original or a
certificate of insurance of all policies of insurance required. All policies or
certificates, as the case may be, of insurance shall set forth the coverage, the
limits of liability, the name of the carrier, the policy number, and the period
of coverage. In addition, all policies of insurance required under the terms
hereof shall contain an endorsement or agreement by the insurer that any loss
shall be payable in accordance with the terms of such policy notwithstanding any
act or negligence of the Borrower, or any other party holding under any such
Person which might otherwise result in a forfeiture of said insurance and the
further agreement of the insurer waiving all rights of setoff, counterclaim or
deductions against the Borrower. At least 15 days prior to the expiration of
each required policy, the Borrower shall deliver to the Administrative Agent
evidence of the renewal or replacement of such policy, continuing such insurance
in the form as required by this Agreement. All such policies shall contain a
provision that notwithstanding any contrary agreement between the Borrower and
the applicable insurance company, such policies will not be canceled, allowed to
lapse without renewal, surrendered or amended (which provision shall include any
reduction in the scope or limits of coverage) without at least 15 days’ prior
written notice to the Administrative Agent.