Exhibit 10.5.2
AMENDMENT NO. 2
          AMENDMENT NO. 2, dated as of July 2, 2008 (this “Amendment”), by and
among INTERSTATE OPERATING COMPANY, LP, a Delaware limited partnership (the
“Borrower”), LEHMAN COMMERCIAL PAPER INC., as Administrative Agent (the
“Administrative Agent”), and the Lenders party hereto to the Credit Agreement
(as defined below).
WITNESSETH:
          WHEREAS, the Borrower, the Administrative Agent, Lehman Brothers Inc.
as sole lead arranger and sole bookrunner, Société Générale, as syndication
agent, Calyon New York Branch and Merrill Lynch Capital, a division of Merrill
Lynch Business Financial Services, Inc. as co-documentation agents and the
Lenders have entered into that certain Senior Secured Credit Agreement, dated as
of March 9, 2007 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”);
          WHEREAS, the Borrower has requested certain amendments to the Credit
Agreement as more specifically set forth below;
          WHEREAS, the Administrative Agent and the Lenders have agreed, subject
to the terms and conditions hereinafter set forth, to amend the Credit Agreement
as set forth below.
          NOW, THEREFORE, in consideration of the foregoing, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:
          1. Defined Terms. Capitalized terms used and not otherwise defined
herein shall have the meanings ascribed to such terms in the Credit Agreement.
          2. Amendments. Effective as of the Amendment No. 2 Effective Date (as
defined in Section 3 of this Amendment) and subject to the terms and conditions
set forth herein, the Credit Agreement is hereby amended as follows:
          (a) Section 1.01 (Certain Defined Terms) of the Credit Agreement is
hereby amended by inserting the following definitions in the appropriate
alphabetical order:
          ““Amendment No. 2”” means the Amendment No. 2, dated as of July 2,
2008 by and among the Borrower, the Administrative Agent and the Lenders party
thereto.”
          ““Amendment No. 2 Effective Date”” means the Amendment No. 2 Effective
Date as defined in Amendment No. 2 to this Agreement.”
          (b) The definition of “Sliver Investments” in Section 1.01 (Certain
Defined Terms) of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:
     ““Sliver Investments” shall mean debt and equity investments in
partnerships, companies or limited liability companies (a) for which the
Borrower’s direct or indirect ownership interest is less than 50% and (b) that
own hospitality properties for which the Borrower or its wholly-owned subsidiary
will have a Customary Property Agreement; provided, that, with respect to
Investments of up to $25,000,000 in the aggregate, such Customary Property
Agreement may be held by an entity which is not a wholly owned subsidiary of
Borrower or of a Subsidiary of Borrower.”

 

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          3. Conditions to Effectiveness of this Amendment. This Amendment shall
become effective as of the date (the “Amendment No. 2 Effective Date”) each of
the following conditions precedent shall have been satisfied:
          (a) The Administrative Agent shall have received on or prior to the
Amendment No. 2 Effective Date each of the following, each dated the Amendment
No. 2 Effective Date unless otherwise indicated or agreed to by the
Administrative Agent and in form and substance satisfactory to the
Administrative Agent:
          (i) this Amendment, executed by the Borrower, the Administrative Agent
and the Required Lenders under the Credit Agreement; and
          (ii) such additional documentation as the Administrative Agent or the
Lenders may reasonably require.
          (b) There shall have been paid to the Administrative Agent, for the
account of itself and the Lenders, as applicable, all expenses (including
reasonable expenses of counsel) due and payable on or before the Amendment No. 2
Effective Date.
          4. Representations and Warranties. The Borrower hereby represents and
warrants to the Administrative Agent and the Lenders, on and as of the date
hereof, that:
          (a) (i) The Borrower has taken all necessary action to authorize the
execution, delivery and performance of this Amendment, (ii) this Amendment has
been duly executed and delivered by the Borrower and (iii) this Amendment is the
legal, valid and binding obligation of the Borrower, enforceable against it in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles.
          (b) After giving effect to this Amendment, each of the representations
and warranties made by any Loan Party in or pursuant to the Credit Documents is
true and correct in all material respects on and as of the date hereof, as if
made on and as of such date, except to the extent such representations and
warranties expressly relate to an earlier date, in which case such
representations and warranties are true and correct in all material respects as
of such earlier date.
          (c) After giving effect to this Amendment, no Default or Event of
Default has occurred and is continuing as of the date hereof.
          5. Reaffirmation.
          (a) Each Loan Party hereby consents to the execution, delivery and
performance of this Amendment and agrees that each reference to the Credit
Agreement in the Credit Documents shall, on and after the Amendment No. 2
Effective Date, be deemed to be a reference to the Credit Agreement as amended
by this Amendment.
          (b) Each Loan Party hereby acknowledges and agrees that, after giving
effect to this Amendment, all of its respective obligations and liabilities
under the Credit Documents to which it is a party are reaffirmed, and remain in
full force and effect.
          6. Continuing Effect. Except as expressly set forth in this Amendment,
all of the terms and provisions of the Credit Agreement are and shall remain in
full force and effect and the

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Borrower shall continue to be bound by all of such terms and provisions. The
Amendment provided for herein is limited to the specific provisions of the
Credit Agreement specified herein and shall not constitute an amendment of, or
an indication of the Administrative Agent’s or the Lenders’ willingness to amend
or waive, any other provisions of the Credit Agreement or the same sections for
any other date or purpose. This Amendment is a Credit Document.
          7. Expenses. The Borrowers agree to pay and reimburse the
Administrative Agent for all its reasonable out-of-pocket costs and expenses
incurred in connection with the negotiation, preparation, execution and delivery
of this Amendment, and other documents prepared in connection herewith, and the
transactions contemplated hereby, including, without limitation, reasonable fees
and disbursements and other charges of counsel to the Administrative Agent
relating to the Amendment.
          8. Choice of Law. THIS AGREEMENT 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, 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; PROVIDED THAT THE
PERFECTION OF THE LIENS OF THE ADMINISTRATIVE AGENT ON THE COLLATERAL AND THE
EXERCISE OF REMEDIES AGAINST THE COLLATERAL SHALL BE GOVERNED BY, CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE APPLICABLE JURISDICTION.
          9. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties and separate counterparts, each of which
when so executed and delivered, shall be deemed an original, and all of which,
when taken together, shall constitute one and the same instrument. Delivery of
an executed counterpart of a signature page to this Amendment by facsimile or
e-mail shall be effective as delivery of a manually executed counterpart of this
Amendment.
          10. Integration. This Amendment, together with the other Credit
Documents, incorporates all negotiations of the parties hereto with respect to
the subject matter hereof and is the final expression and agreement of the
parties hereto with respect to the subject matter hereof.
          11. Severability. In case any provision in this Amendment shall be
invalid, illegal or unenforceable, such provision shall be severable from the
remainder of this Amendment and the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.
          12. 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

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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.
[Signature Pages Follow]

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          IN WITNESS WHEREOF, the parties have entered into this Amendment as of
the date first above written.

            BORROWER:

INTERSTATE OPERATING COMPANY, LP,
a Delaware Limited partnership

By: Interstate Hotels & Resorts, Inc.,
its general partner         By:   /s/ Bruce Riggins         Name:   Bruce
Riggins        Title:   Chief Financial Officer     

[Signature Page to Amendment No. 2]

 

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            LEHMAN COMMERCIAL PAPER INC.,
as a Lender and as Administrative Agent
      By:   /s/ Craig Malloy         Name:   Craig Malloy        Title:  
Authorized Signatory     

[Signature Page to Amendment No. 2]

 

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          IN WITNESS WHERE, the parties have acknowledged and agreed upon this
Amendment as of the date first written above.

            GUARANTORS:

INTERSTATE HOTELS & RESORTS, INC.
a Delaware corporation
      By:   /s/ Bruce Riggins         Name:   Bruce Riggins        Title:  
Chief Financial Officer     

[Signature Page to Amendment No. 2]

 

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            INTERSTATE HOTELS COMPANY
a Delaware corporation

INTERSTATE PARTNER CORPORATION
a Delaware corporation

INTERSTATE PROPERTY CORPORATION
a Delaware corporation

NORTHRIDGE HOLDINGS, INC.
a Delaware corporation

INTERSTATE MEMBER INC.
a Delaware corporation

CROSSROADS HOSPITALITY MANAGEMENT COMPANY
a Delaware corporation

INTERSTATE MANAGEMENT SERVICES, INC.
a Delaware corporation

SUNSTONE HOTEL PROPERTIES, INC.
a Colorado corporation
      By:   /s/ Bruce Riggins         Name:   Bruce Riggins        Title:  
Chief Financial Officer     

[Signature Page to Amendment No. 2]

 

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            INTERSTATE BATON ROUGE, LLC
a Delaware limited liability company

INTERSTATE TESORO, LLC
a Delaware limited liability company

INTERSTATE CLEVELAND, LLC
a Delaware limited liability company

INTERSTATE SAWGRASS, LLC
a Delaware limited liability company

INTERSTATE DURHAM, LLC
a Delaware limited liability company

IHR DEVELOPMENT GROUP, LLC
a Delaware limited liability company

INTERSTATE INVESTMENTS I, LLC
a Delaware limited liability company

INTERSTATE INDIA, LLC
a Delaware limited liability company

INTERSTATE INDIA INVESTMENTS, LLC
a Delaware limited liability company

INTERSTATE ECONOMY INVESTMENT, LLC
a Delaware limited liability company

INTERSTATE HARTE GP, LLC
a Delaware limited liability company

INTERSTATE TRADING, LLC
a Delaware limited liability company

INTERSTATE MAHWAH, LLC
a Delaware limited liability company

INTERSTATE FRAZER, LLC
a Delaware limited liability company

INTERSTATE LATHAM, LLC
a Delaware limited liability company

INTERSTATE LAFAYETTE, LLC
a Delaware limited liability company

INTERSTATE DEVELOPMENT GROUP II, LLC
a Delaware limited liability company
                       

[Signature Page to Amendment No. 2]

 

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            INTERSTATE INVEST, LLC
a Delaware limited liability company

INTERSTATE MEXICO MANAGEMENT, LLC
a Delaware limited liability company

INTERSTATE MEXICO PROPERTIES, LLC
a Delaware limited liability company

INTERSTATE ATLANTA AIRPORT, LLC
a Delaware limited liability company

INTERSTATE CONCORD HOLDINGS, LLC
a Delaware limited liability company

INTERSTATE CONCORD, LLC
a Delaware limited liability company

IHR/PH INVESTMENT, LLC
a Delaware limited liability company

By: Interstate Operating Company, LP, its Member

By: Interstate Hotels & Resorts, Inc., its general partner
      By:   /s/ Bruce Riggins         Name:   Bruce Riggins        Title:  
Chief Financial Officer     

[Signature Page to Amendment No. 2]

 

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            INTERSTATE MANAGEMENT COMPANY, LLC
a Delaware limited liability company

CAPSTAR ST. LOUIS COMPANY, L.L.C.
a Delaware limited liability company

MERISTAR STORRS COMPANY, LLC
a Delaware limited liability company

INTERSTATE CROSS KEYS, LLC
a Delaware limited liability company

INTERSTATE HOTEL MANAGEMENT SYSTEM, LLC
a Delaware limited liability company

By: Interstate Operating Company, LP, its Member

By: Interstate Hotels & Resorts, Inc., its general partner
      By:   /s/ Bruce Riggins         Name:   Bruce Riggins        Title:  
Chief Financial Officer        INTERSTATE PROPERTY PARTNERSHIP, L.P.
a Delaware limited partnership

By: Interstate Property Corporation, its general partner
      By:   /s/ Bruce Riggins         Name:   Bruce Riggins        Title:  
Chief Financial Officer        INTERSTATE MANCHESTER COMPANY, L.L.C.
a Delaware limited liability company

By: Interstate Property Partnership, L.P., its member

By: Interstate Property Corporation, its general partner
      By:   /s/ Bruce Riggins         Name:   Bruce Riggins        Title:  
Chief Financial Officer     

[Signature Page to Amendment No. 2]

 

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            INTERSTATE HOTELS, LLC
a Delaware limited liability company

By: Northridge Holdings, Inc., its member
      By:   /s/ Bruce Riggins         Name:   Bruce Riggins        Title:  
Chief Financial Officer        CONTINENTAL DESIGN & SUPPLIES COMPANY, L.L.C.
a Delaware limited liability company

By: Interstate Member, Inc., its member
      By:   /s/ Bruce Riggins         Name:   Bruce Riggins        Title:  
Chief Financial Officer        CROSSROADS HOSPITALITY COMPANY, L.L.C.
a Delaware limited liability company

By: Interstate Hotels, LLC, its managing member

By: Northridge Holdings, Inc., its member
      By:   /s/ Bruce Riggins         Name:   Bruce Riggins        Title:  
Chief Financial Officer        IHC HOLDINGS, INC.
a Delaware corporation
      By:   /s/ Bruce Riggins         Name:   Bruce Riggins        Title:  
Chief Financial Officer     

[Signature Page to Amendment No. 2]

 

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            NORTHRIDGE INSURANCE COMPANY
a corporation organized under the laws of the Cayman Islands
      By:   /s/ Bruce Riggins         Name:   Bruce Riggins        Title:  
Chief Financial Officer        MERISTAR MANAGEMENT (VANCOUVER-METROTOWN) LTD.
a British Columbia (Canada) corporation
      By:   /s/ Bruce Riggins         Name:   Bruce Riggins        Title:  
Chief Financial Officer     

[Signature Page to Amendment No. 2]

 

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            Royal Bank of Canada
as a Lender
      By:   /s/ Jake Sigmund         Name:   Jake Sigmund        Title:  
Authorized Signatory     

[Signature Page to Amendment No. 2]

 

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            CALYON NEW YORK BRANCH
as a Lender
      By:   /s/ Jason Chrein         Name:   Jason Chrein        Title:  
Director              By:   /s/ David Bowers         Name:   David Bowers       
Title:   Managing Director     

[Signature Page to Amendment No. 2]

 

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            Wachovia Bank, N.A.
as a Lender
      By:   /s/ Jeri A Fellerman         Name:   Jeri A Fellerman       
Title:   Senior Vice President     

[Signature Page to Amendment No. 2]

 

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            Société Générale,
as a Lender
      By:   /s/ Jerry Parisi         Name:   Jerry Parisi        Title:  
Managing Director     

[Signature Page to Amendment No. 2]

 

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            Bank of America, N.A.
as a Lender
      By:   /s/ Michael D. Brannan         Name:   Michael D. Brannan       
Title:   Senior Vice President     

[Signature Page to Amendment No. 2]