Document:

REGISTRATION RIGHTS AGREEMENT

 

 EXHIBIT 10.84

FORM OF REGISTRATION RIGHTS
AGREEMENT

 

EXHIBIT B

FORM OF

REGISTRATION RIGHTS AGREEMENT

     
THIS REGISTRATION RIGHTS AGREEMENT (the
“Agreement”) is dated as
of                     2004,
by and among CNL HOSPITALITY PROPERTIES, INC., a Maryland
corporation (the “Company”), and CNL REAL
ESTATE GROUP, INC., a Florida corporation, and JAMES M.
SENEFF, JR., ROBERT A. BOURNE, C. BRIAN STRICKLAND, THOMAS J.
HUTCHISON, III, JOHN A. GRISWOLD, PAUL H. WILLIAMS and
BARRY A. N. BLOOM (collectively, the
“Stockholders”).

RECITALS

     
WHEREAS, pursuant to an Agreement and Plan of
Merger among the Company, CNL Hospitality Properties Acquisition
Corp., a Florida corporation and wholly-owned subsidiary of the
Company (“CHPAC”), CNL Hospitality Corp., a
Florida corporation (the “Advisor”), and the
Stockholders of the Advisor, dated
[                     ],
2004 (the “Merger Agreement”), the Stockholders
received
[                     ]
common shares (the “Common Shares”),
$0.01 par value, of the Company (the “Common
Stock”), in exchange for
[                     ]%
of the outstanding shares of capital stock of the Advisor;

     
WHEREAS, in connection with the Merger Agreement,
the Stockholders have each entered into a Lock-Up Agreement
(defined below) dated the date hereof with the Company with
respect to the Common Shares;

     
WHEREAS, the Stockholders have been granted
certain registration rights with respect to the Common Shares,
subject to the Lock-Up Agreement; and

     
WHEREAS, the Company and the Stockholders desire
to set forth the rights and obligations of the parties with
respect to such registration rights.

     
NOW, THEREFORE, in consideration of the premises
and the mutual covenants and agreements herein contained and
other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

AGREEMENT

     
1. Certain Definitions. As used in
this Agreement, the following terms shall have the following
meanings:

     
“Common
Shares” shall have the meaning
set forth in the first paragraph of the Recitals.

     
“Common
Stock” shall have the meaning set
forth in the first paragraph of the Recitals.

     
“Company”
shall mean CNL Hospitality Properties, Inc., a Maryland
corporation.

     
“Demand Registration
Request” shall have the meaning
set forth in Section 4.1 hereof.

     
“Demand Registration
Rights” shall mean the rights of
the Holders to request registration of their Registrable
Securities in accordance with the provisions of Section 4
hereof.

     
“Demanding
Holders” shall have the meaning
set forth in Section 4.1 hereof.

     
“Filing
Notice” shall have the meaning
set forth in Section 3.1 hereof.

     
“Holders”
shall mean the Stockholders or any Permitted Transferee of a
Stockholder, and, with respect to a Permitted Transferee, only
if such Stockholder has granted rights under this Agreement to
such Permitted Transferee; and “Holder” shall mean any
one of them.

     
“Lock-Up
Agreement” means the letter
agreement, dated as of the date hereof, by and between each of
the Stockholders and the Company, substantially in the form
attached hereto as Annex I, whereby each of the

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Stockholders has agreed to certain restrictions
on the sale and transfer of the Common Shares beneficially owned
by him or it.

     
“Merger”
shall mean the merger of the Advisor with and into CHPAC with
CHPAC as the surviving corporation in the merger, upon the terms
and subject to the conditions of the Merger Agreement and in
accordance with the Florida Business Corporation Act.

     
“Permitted
Transferee” shall have the
meaning set forth in Section 2 hereof.

     
“Piggyback Registration
Rights” shall mean the rights of
the Holders, in accordance with the provisions of Section 3
hereof, to have their Registrable Securities included in any
Registration Statement filed by the Company with respect to the
sale of Common Shares or filed by any other shareholders of the
Company.

     
“Prospectus”
means the prospectus included in any Registration Statement, as
amended or supplemented by any prospectus supplement with
respect to the terms of the offering of any of the Registrable
Securities covered by such Registration Statement and by all
other amendments and supplements to the prospectus, including
post-effective amendments and all material incorporated by
reference in such prospectus.

     
“Registrable
Securities” means all of the
Common Shares and shall include all shares of Common Stock
received by the Holders with respect to the Common Shares
pursuant to a stock split, stock dividend or other
recapitalization of the Company. For the purposes of this
Agreement, such shares of Common Stock shall cease to be
Registrable Securities on the Rule 144 Eligibility Date or,
if earlier, on such date on which (a) a Registration
Statement covering such shares has been declared effective and
such shares have been disposed of pursuant to such effective
Registration Statement, or (b) all of the Registrable
Securities are eligible for sale (other than pursuant to
Rule 904 of the Securities Act), in the opinion of counsel
to the Company, in a single transaction or multiple transactions
exempt from the registration and prospectus delivery
requirements of the Securities Act, so that all transfer
restrictions with respect to such shares and all restrictive
legends with respect to the certificates evidencing such shares
are or may be removed upon the consummation of such sale.

     
“Registration
Period” shall mean the period
commencing on the date the Merger is effective and ending at the
earlier of (i) such time as no Holder owns any Registrable
Securities or (ii) the Rule 144 Eligibility Date;
provided that nothing herein shall affect the Stockholders’
obligations to comply with the terms of the Lock-Up Agreement.

     
“Registration
Statement” means any registration
statement filed by the Company under the Securities Act that
covers any of the Registrable Securities, including the
Prospectus, any amendments and supplements to such registration
statement, including post-effective amendments, and all exhibits
thereto and all material incorporated by reference in such
registration statement.

     
“Rule 144 Eligibility
Date” means the date on which all
Common Shares issued by the Company to the Stockholders in the
Merger and the other Common Shares defined as Registrable
Securities herein may be sold under Rule 144 of the
Securities Act by each holder within three months of such date
within the volume limitations of Rule 144 (e).

     
“SEC”
shall mean the Securities and Exchange Commission.

     
“Securities
Act” shall mean the Securities
Act of 1933, as amended.

     
“Selling Holder
Information” shall mean
information either furnished in writing by or on behalf of a
Selling Holder for use in the Registration Statement or
Prospectus.

     
“Selling
Holders” when used with respect
to a Registration Statement, shall mean those Holders whose
Registrable Securities are included in a Registration Statement
pursuant to an exercise by such Holders of their Piggyback
Registration Rights or their Demand Registration Rights.

     
“Stockholders”
shall have the meaning set forth in the Preamble hereof.

     
“Underwriter(s)”
shall mean any one or more investment banking or brokerage firms
to or through which the Holders or the Company, as the case may
be, may offer and sell Registrable Securities pursuant to a
transaction requiring the filing of a Registration Statement
under the Securities Act, including one or more of

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such firms who shall manage such public offering
through such Underwriters and that are referred to herein as
“Managing Underwriter(s).”

     
2.     Permitted
Transferees.

     
Any Stockholder may transfer any of the
Registrable Securities held by such Stockholder, (i) to the
spouse, siblings or issue or spouses of siblings or issue of
such Stockholder; (ii) to a trust or custodial account for
the sole benefit of such Stockholder or the spouse, siblings or
issue or spouses of siblings or issue of such Stockholder,
(iii) to a partnership, limited liability company or other
entity, the majority and controlling equity owners of which are
a Stockholder or the spouse, siblings or issue or spouses of
siblings or issue of such Stockholder or any trust referred to
in clause (ii) above; (iv) to the personal
representative of a Stockholder upon the death of such
Stockholder for the purposes of administration of such
Stockholder’s estate or upon the incompetency of such
Stockholder for the purposes of the protection and management of
such Stockholder’s assets, but such personal representative
may not transfer such Registrable Securities other than as
permitted under this Agreement; (v) to a charitable
foundation (subject to receipt by the Stockholder of written
approval from the Company, such approval not to be unreasonably
withheld); (vi) to the Company; or (vii) to any other
Stockholder or to any of the transferees referred to in
clause (i), (ii) or (iii) above, for the benefit
of such other Stockholder (any of the foregoing, a
“Permitted Transferee”); provided,
however, that if such transfer is to be effected to a
Permitted Transferee (other than to the Company) within
12 months after the effective time of the Merger, such
Permitted Transferee shall have executed and delivered to the
Company a Lock-Up Agreement prior to such transfer.

     
3.     Piggyback
Registration Rights.

     
3.1.     If the Company
proposes to file a registration statement under the Securities
Act with respect to any proposed public offering by the Company
or by any holders of Common Stock (i) prior to the
Registration Period, and the Company reasonably expects such
registration statement to be declared effective during the
Registration Period, or (ii) during the Registration
Period, the Company shall, not later than 30 days prior to
the proposed date of filing of such registration statement with
the SEC under the Securities Act, give written notice (a
“Filing Notice”) of the proposed filing to each
Holder, which notice shall describe in detail the proposed
registration and distribution (including those jurisdictions
where registration under the securities or blue sky laws is
intended) . During the Registration Period, each Holder may
elect, by written notice to the Company (which notice shall
specify the aggregate number of Registrable Securities proposed
to be offered and sold by such Holder pursuant to such
Registration Statement, the identity of the proposed seller
thereof, and a general description of the manner in which such
person intends to offer and sell such Registrable Securities)
given within 15 days after receipt of the Filing Notice
from the Company, to have any or all of the Registrable
Securities owned by such Holder included in such Registration
Statement, and the Company shall include such Registrable
Securities in such Registration Statement. If the Managing
Underwriter(s) or Underwriters (in the case of an underwritten
registration) or the Company (in the case of a nonunderwritten
registration covering a primary offering by the Company) should
reasonably object to the exercise of the Piggyback Registration
Rights with respect to such Registration Statement, then in the
discretion of the Company, either:

		
	 	     
    (a) the Registrable Securities of the
    Selling Holders shall nevertheless be included in such
    Registration Statement subject to the condition that the Selling
    Holders may not offer or sell their Registrable Securities
    included therein for a period of up to 90 days after the
    initial effective date of such Registration Statement, whereupon
    the Company shall be obligated to file one or more
    post-effective amendments to such Registration Statement to
    permit the lawful offer and sale of such Registrable Securities
    for a reasonable period thereafter beginning at the end of such
    lock-up period and continuing for such period, not exceeding
    120 days, as may be necessary for the Selling Holders,
    Underwriters and selling agents to dispose of such Registrable
    Securities; or
    
	 
	 	     
    (b) if the Managing Underwriter(s) (in the
    case of an underwritten registration) or the Company (in the
    case of a nonunderwritten registration covering a primary
    offering by the Company) should reasonably determine that the
    inclusion of such Registrable Securities, notwithstanding the
    provisions of the preceding clause (i), would materially
    and adversely affect the offering contemplated in such
    

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    Registration Statement, and based on such
    determination recommends inclusion in such Registration
    Statement of fewer or none of the Registrable Securities of the
    Holders, then (x) if the Managing Underwriter(s) or the
    Company, as applicable, recommends the inclusion of fewer
    Registrable Securities, the number of Registrable Securities of
    the Holders included in such Registration Statement shall be
    reduced pro-rata among such Holders (based upon the number of
    Registrable Securities requested to be included in the
    registration), or (y) if the Managing Underwriter(s) or the
    Company, as applicable, recommends the inclusion of none of such
    Registrable Securities, none of the Registrable Securities of
    the Holders shall be included in such Registration Statement.
    

     
3.2.     Unless
otherwise required by law, rule or regulation, if Registrable
Securities owned by Holders who have made the election provided
in Section 3.1 are included in such Registration Statement,
the Company shall bear and pay all fees, costs, and expenses
incident to such inclusion, including, without limitation,
registration fees, exchange listing fees and expenses, legal
fees of Company counsel (including blue sky counsel), printing
costs and costs of any regular audits or accounting fees. Each
Selling Holder shall pay all underwriting discounts and
commissions with respect to its Registrable Securities included
in the Registration Statement, as well as fees or disbursements
of counsel, accountants or other advisors for the Selling Holder
and all internal overhead and other expenses of the Selling
Holder or transfer taxes.

     
3.3.     The rights of
the Holders under this Section 3 are solely piggyback in
nature, and nothing in this Section 3 shall prevent the
Company from reversing a decision to file a Registration
Statement or from withdrawing any such Registration Statement
before it has become effective.

     
3.4.     The Holders
shall have the right, at any time during the Registration
Period, to exercise their Piggyback Registration Rights pursuant
to the provisions of this Section 3 on any number of
occasions that the Company shall determine to file a
registration statement.

     
3.5.     The Piggyback
Registration Rights granted pursuant to this Section 3
shall not apply to (a) a registration relating solely to
employee stock option, purchase or other employee plans,
(b) a registration related solely to a dividend
reinvestment plan or (c) a registration on Form S-4 or
Form S-8 or any successor Forms thereto.

     
3.6.     In the event
that there is a reduction in the number of Registrable
Securities to be included in a registration statement to which
Holders have exercised Piggyback Registration Rights, the
Company shall so advise all Holders participating that the
number of securities of Registrable Securities that may be
included in the registration shall be reduced pro rata among
such Holders (based on the number of Registrable Securities
requested to be included in the registration); provided,
however, that the percentage of the reduction of such
Registrable Securities shall be no greater than the percentage
reduction of securities of other selling securityholders who
also have exercised piggyback registration rights pursuant to
agreements other than this Agreement, as such percentage
reductions shall be determined in the good faith judgment of the
Company, which determination shall be based on the advice of the
Managing Underwriter of the offering to the extent the offering
is an underwritten offering. If Holders have exercised Piggyback
Registration Rights with respect to a registration statement
which is being filed as a result of the exercise of demand
registration rights by other securityholders, the
securityholders exercising their demand registration rights
shall have the right, in the event of any reduction of
securities covered by such registration statement, to have all
of their registrable securities included in such registration
statement before inclusion of any Registrable Securities of
Holders exercising their Piggyback Registration Rights.
Notwithstanding the foregoing, prior to any reduction of the
number of Registrable Securities of Holders exercising Piggyback
Registration Rights hereunder, the Company shall first exclude
securities held by persons not having any contractual
registration rights.

     
3.7.     The underwriter
in any registration referred to in this Section 3 shall be
chosen by the Company in its sole discretion, except in the case
of any registration made at the request of a third party holding
demand registration rights, in which case the underwriter will
be selected as provided in any agreement relating to such demand
registration rights.

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4.     Demand
Registration Rights.

     
4.1.     In addition to,
and not in lieu of, the Piggyback Registration Rights set forth
under Section 3, at any time after the effective date of
the Merger and during the Registration Period, any Holder may
deliver to the Company a written request (a “Demand
Registration Request”) that the Company register any or
all of the Registrable Securities owned by such Demanding
Holders (as hereinafter defined) (provided that the aggregate
offering price of all such Registrable Securities actually
included in the Demand Registration equals $10.0 million or
more), and any other Holders that may elect to be included
pursuant to Section 4.2 hereof, under the Securities Act
and the state securities or blue sky laws of any jurisdiction
designated by such Selling Holders (subject to Section 9),
subject to the provisions of this Section 4. The requisite
Holders making such demand are sometimes referred to herein as
the “Demanding Holders.” The Company shall, as
soon as practicable following the Demand Registration Request,
prepare and file a Registration Statement (on the then
appropriate form or, if more than one form is available, on the
appropriate form selected by the Company) with the SEC under the
Securities Act, covering such number of the Registrable
Securities as the Selling Holders request to be included in such
Registration Statement and to take all necessary steps to have
such Registrable Securities qualified for sale under state
securities or blue sky laws. The Company shall use its best
efforts to file such Registration Statement no later than
90 days following the Demand Registration Request. Further,
the Company shall use its commercially reasonable efforts to
have such Registration Statement declared effective by the SEC
(within the meaning of the Securities Act) as soon as
practicable thereafter and shall take all necessary action
(including, if required, the filing of any supplements or
post-effective amendments to such Registration Statement) to
keep such Registration Statement effective to permit the lawful
sale of such Registrable Securities included thereunder for the
period set forth in Section 6 hereof, subject, however, to
the further terms and conditions hereof.

     
4.2.     No later than
10 days after the receipt of the Demand Registration
Request, the Company shall notify all Holders who have not
joined in such request of the proposed filing, and such Holders
may, if they desire to sell any Registrable Securities owned by
them, by notice in writing to the Company given within
15 days after receipt of such notice from the Company,
elect to have all or any portion of their Registrable Securities
included in the Registration Statement.

     
4.3.     The Holders, in
the aggregate, may only exercise the Demand Registration Rights
granted pursuant to this Section 4 two times. The Company
shall only be required to file one Registration Statement (as
distinguished from supplements or pre-effective or
post-effective amendments thereto) in response to the exercise
by the Demanding Holders of their Demand Registration Rights
pursuant to the provisions of this Section 4.

     
4.4.     In the event
that preparation of a Registration Statement is commenced by the
Company in response to the exercise by the Demanding Holders of
the Demand Registration Right, but such Registration Statement
is not filed with the SEC, either at the request of the Company
or at the request of the Demanding Holders, for any reason, the
Demanding Holders shall not be deemed to have exercised a Demand
Registration Right pursuant to this Section 4, except that,
if such Registration Statement is not filed after the
commencement of preparation thereof at the request of the
Demanding Holders, then the Selling Holders whose Registrable
Securities were proposed to be included therein shall be
required to bear the fees, expenses and costs incurred in
connection with the preparation thereof.

     
4.5.     In the event
that any Registration Statement filed by the Company with the
SEC pursuant to the provisions of this Section 4 is
withdrawn prior to the completion of the sale or other
disposition of the Registrable Securities included thereunder,
then the following provisions, whichever are applicable, shall
govern:

		
	 	     
    (a) If such withdrawal is effected at the
    request of the Company for any reason other than the failure of
    all the Selling Holders to comply with their obligations
    hereunder with respect to such registration, then the filing
    thereof by the Company shall be excluded in determining whether
    the Holders have exercised their Demand Registration Rights
    hereunder with respect to the filing of such Registration
    Statement.
    

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    (b) If such withdrawal is effected at the
    request of the Selling Holders, then the filing thereof by the
    Company shall be deemed an exercise of a Demand Registration
    Right with respect to the filing of such Registration Statement.
    

     
4.6.     The Company
shall bear and pay all fees, costs and expenses incident to such
Registration Statement and incident to keeping it effective and
in compliance with all federal and state securities laws, rules,
and regulations for the period set forth in Section 6
hereof (including, without limitation, registration fees, blue
sky qualification fees (subject to Section 9), exchange
listing fees and expenses, legal fees of Company counsel
(including blue sky counsel), printing costs, costs of any
regular audits and accounting fees). Each Selling Holder shall
pay fees or disbursements of counsel, accountants or other
advisors for the Selling Holder and any underwriting discounts
and commissions with respect to its Registrable Securities and
any internal, overhead and other expenses of the Selling Holders
or transfer taxes.

     
4.7.     Whenever a
decision or election is required to be made hereunder by the
Demanding Holders or the Selling Holders, such decision or
election shall be made by a vote of holders of a majority of the
Registrable Securities owned by such Demanding Holders or
Selling Holders, as the case may be.

     
4.8.     (a) If the
Managing Underwriter(s) in the case of an underwritten
registration should reasonably determine that the inclusion of
all Registrable Securities requested to be included in any
Registration Statement would materially and adversely affect the
offering contemplated in a Registration Statement, and based on
such determination recommends inclusion in such Registration
Statement of fewer or none of the Registrable Securities of the
Holders, then (x) if the Managing Underwriter(s) recommends
the inclusion of fewer Registrable Securities, the number of
Registrable Securities of the Holders included in such
Registration Statement shall be reduced pro-rata among such
Holders (based upon the number of Registrable Securities
requested to be included in the registration), or (y) if
the Managing Underwriter(s) recommends the inclusion of none of
such Registrable Securities, none of the Registrable Securities
of the Holders shall be included in such Registration Statement
(and the request for registration shall not count for purposes
of Section 4.3 hereof).

     
(b) In the event that there is a reduction
in the number of Registrable Securities to be included in a
registration statement to which Holders have exercised Demand
Registration Rights, the Company shall so advise all Holders
participating that the number of securities of Registrable
Securities that may be included in the registration shall be
reduced pro rata among such Holders (based on the number of
Registrable Securities requested to be included in the
registration); provided, however, that the percentage of
the reduction of such Registrable Securities shall be no greater
than the percentage reduction of securities of other selling
securityholders who also have exercised demand registration
rights pursuant to agreements other than this Agreement, as such
percentage reductions shall be determined in the good faith
judgment of the Company based on the advice of the Managing
Underwriter of the offering in the case of any underwritten
offering.

     
(c) In the event that there is a limitation
on the number of securities which may be covered by such
Registration Statement, the Selling Holders shall have the right
with respect to any such Registration Statement filed as a
result of their Demand Registration Request to include their
Registrable Securities prior to the inclusion of the Company in
the case of any inclusion of shares of Common Stock for sale for
its own account and any other securityholder exercising
piggyback registration rights.

     
4.9.     The Selling
Holders shall have the right, with respect to any Registration
Statement to be filed as a result of a Demand Registration
Request, to determine whether such registration shall be
underwritten or not and to select any such underwriter, provided
such underwriter is satisfactory to the Company, which consent
shall not be unreasonably withheld.

     
5.     Information to
be Furnished. In the event any of the Registrable Securities
are to be included in a Registration Statement under
Section 3 or 4, the Selling Holders and the Company shall
furnish the following information and documents:

     
5.1.     The Selling
Holders shall furnish to the Company all information required by
the Securities Act to be furnished by sellers of securities for
inclusion in the Registration Statement, together with all such
other information which the Selling Holders have or can
reasonably obtain and which may reasonably be required

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by the Company in order to have such Registration
Statement become effective and such Registrable Securities
qualified for sale under applicable state securities laws.

     
5.2.     The Company,
before filing a Registration Statement, amendment or supplement
thereto (including all exhibits), will furnish copies of such
documents to legal counsel selected by the Selling Holders. In
addition, the Company shall make available for inspection by any
Selling Holder or by any Underwriter, attorney or other agent of
any Selling Holder or Underwriter all information reasonably
requested by such persons. All non-publicly available
information provided to any Selling Holder, Underwriter or any
attorney or agent of any Selling Holder or Underwriter shall be
kept strictly confidential by such Selling Holder, Underwriter
or attorney or agent of such Selling Holder or Underwriter so
long as such information remains nonpublic.

     
5.3.     The Company
shall promptly notify each Selling Holder and each Selling
Holder shall promptly notify the Company, upon discovery by
either of them of the occurrence of any event which renders any
Prospectus then being circulated among prospective purchasers
misleading because such Prospectus contains an untrue statement
of a material fact or omits to state a material fact necessary
to make the statements made, in light of the circumstances in
which they were made, not misleading, and the Company will amend
or supplement the Prospectus so that it does not contain any
material misstatements or omissions and deliver the number of
copies of such amendments or supplements to each Selling Holder
as each Selling Holder may request. Until such time as such
Prospectus is so amended or supplemented, each Selling Holder
shall cease use thereof.

     
6.     Registration
to Be Kept Effective. In connection with any registration of
Registrable Securities pursuant to this Agreement, the Company
shall, at its expense, keep effective and maintain such
registration and any related qualification of Registrable
Securities under state securities laws for such period not
exceeding 120 days or such shorter period as may be
necessary for the Selling Holders, Underwriters and selling
agents to dispose of such Registrable Securities, from time to
time to amend or supplement the Prospectus used in connection
therewith to the extent necessary to comply with applicable
laws, and to furnish to such Selling Holders such number of
copies of the Registration Statement, the Prospectus
constituting a part thereof, and any amendment or supplement
thereto as such Selling Holders may reasonably request in order
to facilitate the disposition of the registered Registrable
Securities.

     
7.     Conditions to
Company’s Obligations. The obligations of the Company
to cause the Registrable Securities owned by the Holders to be
registered under the Act are subject to each of the following
limitations, conditions and qualifications:

		
	 	     
    (a) The Company shall be entitled to
    postpone for a reasonable period of time not to exceed four
    (4) months the filing of any Registration Statement
    otherwise required to be prepared and filed by it pursuant to
    Section 4 hereof, if, in the good faith opinion of the
    Company’s Board of Directors, the Company determines that
    such registration and offering would materially interfere with
    any proposal or plan to engage in any financing, acquisition,
    corporate reorganization or other material transaction involving
    the Company or any of its subsidiaries, and the Company promptly
    gives the Holders written notice including a general explanation
    of such determination; provided that the Company shall not delay
    such action pursuant to this sentence more that once in any
    12-month period. If the Company shall so postpone the filing of
    a Registration Statement, the Selling Holders shall have the
    right to withdraw the Demand Registration Request by giving
    written notice to the Company within 30 days after receipt
    of the notice of postponement (and, in the event of such
    withdrawal, such Demand Registration Request shall not be
    counted for purposes of the Demand Registration Requests to
    which the Holders are entitled pursuant to Section 4.3
    hereof).
    
	 
	 	     
    (b) The Company shall not be required to
    file any Registration Statement pursuant to this Agreement in
    connection with a Demand Registration Request made less than
    90 days after the effective date of any Registration
    Statement filed by the Company (other than a registration filed
    on Form S-8 or any successor form thereto.
    

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    (c) The Company may require, as a condition
    to fulfilling its obligations to register the Registrable
    Securities under Sections 3 or 4 hereof, that the Selling
    Holders execute reasonable and customary indemnification
    agreements for the benefit of the Underwriters of the
    registration; provided, however, a Selling Holder shall
    not be required to indemnify the Underwriters except with
    respect to Selling Holder information.
    
	 
	 	     
    (d) The Company shall not be required to
    fulfill any registration obligations under this Agreement, if
    the Company provides the Holders with an opinion of counsel
    reasonably acceptable to such Holders stating that the Holders
    are free to sell in the manner proposed by them all of the
    Registrable Securities that they desired to register without
    registering such Registrable Securities or such Registrable
    Securities can be sold under Rule 144 of the Securities
    Act, or otherwise without registration in the open market in
    compliance with the Securities Act.
    
	 
	 	     
    (e) The Company shall not be obligated to
    file any Registration Statement pursuant to this Agreement in
    connection with a Demand Registration Request at any time if the
    Company would be required to include financial statements
    audited as of any date other than the end of its fiscal year,
    unless the Selling Holder(s) agree to pay the cost of any such
    additional audit.
    

     
8.     Exchange
Listing. In the event any Registrable Securities are
included in a Registration Statement under Section 3 or 4
hereof, the Company will exercise commercially reasonable
efforts to cause all such Registrable Securities to be listed on
the New York Stock Exchange or listed on any other
exchange(s) on which the shares of Common Stock are then listed
or quoted in any U.S. inter-dealer quotation system in
which the shares of Common Stock are then quoted.

     
9.     Registration
Under State Securities Laws. The Company shall use its
commercially reasonable efforts to register or qualify any
Registrable Securities included in a Registration Statement
pursuant to Section 3 or 4 hereof under state
“blue sky” or similar securities laws in such
jurisdictions as the Selling Holders reasonably request and to
take such other action as may be reasonably necessary to enable
the Selling Holders to sell their shares of Registrable
Securities in the jurisdictions where such registration or
qualification was made, provided that the Company shall not be
required to qualify to do business in any jurisdiction in which
it is not so qualified or to execute a general consent to
service of process in any jurisdiction in which it has not
executed such a consent.

     
10.     Indemnification.

     
10.1.     The Company
shall indemnify and hold each Selling Holder, its partners,
officers, directors and agents (including sales agents and
Underwriters) and each person, if any, who controls (within the
meaning of the Securities Act or the Exchange Act) the Selling
Holder or any of the foregoing, harmless to the maximum extent
permitted by law, from and against any loss, claim, liability,
damage or expense (including attorneys’ fees and
disbursements of only one firm of counsel selected by the
Selling Holders) resulting from a claim that any Registration
Statement, Prospectus or amendment thereof or supplement
thereto, which includes Registrable Securities to be sold by
such Selling Holder, contains an untrue statement of a material
fact or omits to state a material fact necessary in order to
make the statements made, in light of the circumstances under
which they were made, not misleading, unless such claim is based
upon Selling Holder Information or resulting from the Selling
Holder’s failure to deliver a current Prospectus as
required under the Securities Act; and each such Selling Holder
will indemnify and hold harmless the Company, its directors,
officers and agents and each person, if any, who controls
(within the meaning of the Securities Act or the Exchange Act)
the Company against any loss, claim, liability, damage or
expense (including attorneys’ fees) resulting from any such
claim relating to Selling Holder Information.

     
10.2.     Promptly after
receipt by an indemnified party under this Section 10 of
notice of the commencement of any action, such indemnified party
shall, if a claim in respect thereof is to be made against the
indemnifying party under this Section 10, notify the
indemnifying party in writing of the commencement thereof; but
the omission so to notify the indemnifying party shall not
relieve it from any liability which it may have to any
indemnified party under this Section 10 or otherwise to the
extent such omission did not actually and materially prejudice
the indemnifying party. In case any such action is brought
against any indemnified

A-B-8

 

party, and it notifies the indemnifying party of
the commencement thereof, the indemnifying party will be
entitled to participate therein, and to the extent that it may
elect by written notice delivered to the indemnified party
promptly after receiving the aforesaid notice from such
indemnified party, to assume the defense thereof, with counsel
reasonably satisfactory to such indemnified party; provided,
however, if the defendants in any such action include both
the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there
exists a conflict of interest between the indemnifying party and
any indemnified party or that there may be legal defenses
available to it and/or other indemnified parties which are
different from or additional to, and inconsistent or in conflict
with, those available to the indemnifying party, the indemnified
party or parties shall have the right to select separate counsel
to assert such legal defenses and to otherwise participate in
the defense of such action on behalf of such indemnified party
or parties. Upon receipt of notice from the indemnifying party
to such indemnified party of its election so to assume the
defense of such action and approval by the indemnified party of
counsel, the indemnifying party will not be liable to such
indemnified party under this Section 10 for any legal or
other expenses subsequently incurred by such indemnified party
in connection with the defense thereof unless (i) the
indemnified party shall have employed separate counsel in
accordance with the proviso to the preceding sentence,
(ii) the indemnifying party shall not have employed counsel
reasonably satisfactory to the indemnified party to represent
the indemnified party within a reasonable time after notice of
commencement of action, or (iii) the indemnifying party has
authorized the employment of counsel for the indemnified party
at the expense of the indemnifying party; and except that, if
clause (i) or (iii) is applicable, such liability
shall be only in respect of the counsel referred to in such
clause (i) or (iii). No settlement of an action against any
party under this Section 10 shall bind the other party
unless such other party agrees in writing to the terms of such
settlement (which agreement will not be unreasonably withheld).

     
10.3.     The obligation
of the indemnifying party to indemnify the indemnified party
under this Section 10 shall, in each case, be in addition
to any liability which the indemnifying party may otherwise have
hereunder or otherwise at law or in equity.

     
10.4.     If the
indemnification provided for in this Section 10 from the
indemnifying party is applicable in accordance with its terms
but for any reasons is held to be unavailable to an indemnified
party hereunder in respect of any losses, claims, damages,
liabilities or expenses referred to therein, then the
indemnifying party, in lieu of indemnifying such indemnified
party, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages,
liabilities or expenses in such proportion as is appropriate to
reflect the relative faults of the indemnifying party and
indemnified party in connection with the actions which resulted
in such losses, claims, damages, liabilities or expenses, as
well as any other relevant equitable considerations. The
relative faults of such indemnifying party and indemnified party
shall be determined by reference to, among other things, whether
any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission to
state a material fact, has been made by, or relates to
information supplied by, such indemnifying party or indemnified
party, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such
action. The amount paid or payable by a party as a result of the
losses, claims, damages, liabilities and expenses referred to
above shall be deemed to include, subject to the limitations set
forth in Section 10.1 and 10.2 hereof, any legal or other
fees or expenses reasonably incurred by such party in connection
with any investigation or proceeding.

     
The parties hereto agree that it would not be
just and equitable if contribution pursuant to this
Section 10.4 were determined by pro rata allocation or by
any other method of allocation which does not take account of
the equitable considerations referred to in the immediately
preceding paragraph. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any
person.

     
11.     Rule 144.
The Company covenants that it shall file any reports required to
be filed by it under the Exchange Act and the rules and
regulations adopted by the SEC thereunder, and that it shall
take such further action as any Holder of Registrable Securities
may reasonably request, all to the extent required from time to
time to enable such Holder to sell the Registrable Securities
without registration under the Securities Act within the
limitation of the exemptions provided by (a) Rule 144
under the Securities Act, as such rule may be amended from time
to time, or (b) any similar rule or regulation adopted by
the SEC. The Company shall,

A-B-9

 

upon the request of any holder of Registrable
Securities, deliver to such Holder a written statement as to
whether it has complied with such requirements.

     
12.     Miscellaneous.

     
12.1.     Amendments
and Waivers. Subject to Section 12.2, this Agreement
may be modified or amended only by a writing signed by the
Company and each of the Stockholders, and, to the extent a
permitted transfer has occurred pursuant to Section 2
hereof, its Permitted Transferee.

     
12.2.     Third Party
Beneficiaries. Subject to the next sentence of this
Section 12.2, there shall be no third party beneficiaries
of the rights and benefits of this Agreement, which rights and
benefits shall accrue only to the benefit of the parties hereto.
Any Permitted Transferee shall be a third party beneficiary or
intended beneficiary to the agreement made hereunder by a
Stockholder so long as such Stockholder has granted rights under
this Agreement to the Permitted Transferee and such transferee
has agreed in writing to be bound by this Agreement and the
Lock-Up Agreement.

     
12.3.     No
Waiver. No failure to exercise and no delay in exercising,
on the Company’s or the Holders’ part, of any right,
power or privilege hereunder shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, power or
privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.
The rights and remedies herein provided are cumulative and not
exclusive of any rights or remedies provided by law.

     
12.4.     Survival of
Agreements. All agreements, representations and warranties
contained herein or made in writing by or on behalf of the
Company in connection with the transactions contemplated hereby
shall survive the execution and delivery of this Agreement.

     
12.5.     Limitation
of Registration Rights. Nothing contained in this Agreement
shall create any obligation on behalf of the Company to register
under the Securities Act any securities which are not shares of
Common Stock.

     
12.6.     Binding
Effect and Benefits. This Agreement shall be binding upon
and shall inure to the benefit of the Company and the Holders
and their respective successors and permitted assigns. Without
limiting the generality of the foregoing, each Holder’s
registration rights granted hereunder shall be transferable to
and exercised by any Permitted Transferee of Registrable
Securities.

     
12.7.     Entire
Agreement. This Agreement, together with the Lock-Up
Agreement, constitute the full and entire understanding and
agreement between the parties with regard to the subjects hereof
and thereof and supersedes any prior understandings, agreements
or representations by or among the parties, written or oral, to
the extent they relate in any way to such subject matter.

     
12.8.     Separability
of Provisions. In case any provision of this Agreement shall
be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way
be affected or impaired thereby.

     
12.9.     Notices.
All notices, requests, consents and other communications
hereunder shall be in writing and shall be by telecopy,
facsimile transmission (confirmed by U.S. mail), telegraph,
hand delivery or mailed by certified or registered mail postage
prepaid, returned receipt requested, to the addresses set forth
below or to such other address as any party may advise the other
party in a written notice given in accordance with this Section.

     
If to the Company:

     
CNL Hospitality Properties, Inc.

     
CNL Center at City Commons

     
450 South Orange Avenue

     
Orlando, FL 32801

     
Attn.: Thomas J. Hutchison, III

A-B-10

 

		
	 	
    With a copy (which shall not constitute notice
    pursuant to this Section 12.9) to:
    

     
Greenberg Traurig, LLP

     
The MetLife Building

     
200 Park Avenue

     
New York, NY 10166

     
Attention: Judith D. Fryer, Esq.

     
Facsimile: (212) 805-9330

     
Hogan & Hartson, L.L.P.

     
555 Thirteenth Street, N. W.

     
Washington, D. C. 20004

     
Attn: J. Warren Gorrell, Jr., Esq.

     
Facsimile: (202) 637-5910

     
If to the Holders:

		
	 	
    To the respective addresses set forth in the
    records of the Company
    

     
Any notice or other communication so addressed
and so mailed shall be deemed to have been given when duly
delivered or sent.

     
12.10.     Governing
Law; Construction. This Agreement shall be governed by and
construed in accordance with the laws of the State of
New York, without giving effect to the conflict of laws
provisions thereof. The descriptive headings of the several
sections and subsections hereof are for convenience only and
shall not control or affect the meaning of construction of any
of the provisions hereof.

     
12.11.     Counterparts.
This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original, but all of
which together shall constitute a single original instrument.

A-B-11

 

     
IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year first above
written.

		
	 	
    The Company:
    
	 	
    CNL HOSPITALITY PROPERTIES, INC.
    
	 
	 	
    By: 

    
	 
	 	
    Title: 

    
	 
	 	
    Stockholders:
    
	 	
    CNL REAL ESTATE GROUP, INC.
    
	 
	 	
    By: 

    
	 
	 	
    Title: 

    

		
	 	
    

	 	
    James M. Seneff, Jr.
    

		
	 	
    

	 	
    Robert A. Bourne
    

		
	 	
    

	 	
    C. Brian Strickland
    
	 
	 	
     
    
	 	
    

	 	
    Thomas J. Hutchison, III
    

		
	 	
    

	 	
    John A. Griswold
    

		
	 	
    

	 	
    Paul H. Williams
    

		
	 	
    

	 	
    Barry A. N. Bloom
    

A-B-12

 

ANNEX I

FORM OF LOCKUP LETTER

CNL HOSPITALITY
PROPERTIES, INC.

COMMON STOCK

[Name of Stockholder]

                    ,
2004

Dear                    :

     
This Lock-Up Letter Agreement is being delivered
to you pursuant to that certain Registration Rights Agreement
(the “Registration Rights Agreement”) by and
among CNL Hospitality Properties, Inc. (the
“Company”), and CNL Real Estate
Group, Inc., a Florida corporation, and James M.
Seneff, Jr., Robert A. Bourne, C. Brian Strickland, Thomas
J. Hutchison, III, John A. Griswold, Paul H. Williams and
Barry A. N. Bloom (collectively, the
“Stockholders”). Capitalized terms used in this
letter but not defined have the meanings assigned to such terms
in the Registration Rights Agreement.

     
1. Lock-Up and Transfer Limitation.
The undersigned Stockholder shall not directly or indirectly
Transfer (as defined in paragraph 3 of this letter agreement),
contract or agree to Transfer or publicly announce any intention
to Transfer any shares of Common Stock it may now or later own
of record or beneficially (collectively, “Stockholder
Shares”) at any time prior to the six (6) month
anniversary of the date of the Registration Rights Agreement. In
addition, the undersigned Stockholder shall not directly or
indirectly Transfer, contract or agree to Transfer or publicly
announce any intention to Transfer any Stockholder Shares in
excess of 50% of the total number of its Common Shares received
under the Merger Agreement between such six (6) month
anniversary and the one (1) year anniversary of the date of
the Registration Rights Agreement. The lock-up and transfer
limitations described in this paragraph 1 are in addition to any
other restrictions on transfer of the Stockholder Shares that
may apply under the Registration Rights Agreement or this letter
agreement.

     
2. General Holdback. In addition to
and not in lieu of the restrictions on Transfer of the
Stockholder Shares set forth in paragraph 1 above, the
undersigned Stockholder shall not, for a period of 14 days
prior to and 90 days after the date of any final prospectus
relating to an effective registration statement filed by the
Company with the SEC (or such longer periods as the applicable
underwriter or the Company may reasonably request)
(collectively, the “Holdback Period”), directly
or indirectly Transfer, contract or agree to Transfer or
publicly announce any intention to Transfer any Stockholder
Shares, any securities convertible into or exercisable or
exchangeable for shares of Common Stock and any warrants or
other rights to purchase or otherwise acquire shares of Common
Stock. The foregoing sentence shall not apply to (a) the
registration of or sale of any Common Stock pursuant to a
Registration Statement filed in accordance with the Registration
Rights Agreement, (b) bona fide gifts of such securities,
provided that the recipient thereof agrees in writing
with the underwriters or the Company, as applicable, to be bound
by the terms of this letter agreement or (c) dispositions
to any trust for the direct or indirect benefit of the
undersigned Stockholder and/or the immediate family of the
undersigned Stockholder, provided that the trustee agrees
in writing with the Company to be bound by the terms of this
letter agreement and otherwise if a permitted transferee of the
subject securities. If (i) the Company issues an earnings
release or material news, or a material event relating to the
Company occurs, during the last 17 days of the Holdback
Period, or (ii) prior to the expiration of the Holdback
Period, the Company announces that it will release earnings
results during the 16-day period beginning on the last day of
the Holdback Period, the restrictions imposed by this paragraph
2 shall continue to apply until the expiration of the 18-day
period beginning on the issuance of the earnings release or the
occurrence of the material news or material event; provided,
however, that this sentence shall not apply if any research
published or distributed by any underwriter of the Company would
be compliant under Rule 139 of the Securities Act and the
Company’s securities are actively traded as defined in
Rule 101(c)(1) of Regulation M of the Exchange Act.

 

     
3. Definition of Transfer. For all
purposes of this letter agreement, “Transfer”
shall mean (i) any sale, offer to sell, hypothecation,
pledge, grant of an option to purchase or acquire and any other
disposition of any securities; (ii) establishing or
increasing a put equivalent position or liquidating or
decreasing a call equivalent position within the meaning of
Section 16 of the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder,
with respect to any securities; and (iii) entering into any
swap or other arrangement that transfers to another, in whole or
in part, any of the economic consequences of ownership of any
securities, whether any such transaction is to be settled by
delivery of such securities or other securities, in cash or
otherwise.

     
4. Counterparts. This letter
agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, but all of which
together shall constitute a single original instrument.

     
5. Incorporation of Miscellaneous
Provisions of the Registration Rights Agreement. The
provisions of Sections 12.2, 12.3 and 12.6 through 12.10 of
the Registration Rights Agreement are hereby incorporated by
reference into this letter agreement as if set forth at length
herein.

[SIGNATURE PAGE FOLLOWS]

 

     
If the terms of this Lock-Up Letter Agreement
reflect your understanding of our agreements with respect to its
subject matter, please indicate your agreement and acceptance of
the same by countersigning this letter in the space below and
returning the signed copy to the Company.

		
	 	
    Yours very truly,
    
	 
	 	
    CNL HOSPITALITY PROPERTIES, INC.
    

			
	 	By: 	

		
	 	
    

	 	
    Name: 

			
	 	Title:	

Accepted and agreed as of the date

first written above:

[Stockholder]<PAGE>

                                                                   EXHIBIT 10.85

                             THOMAS J. HUTCHISON III
                              EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT AGREEMENT (the "Agreement") is entered into by and between
CNL HOSPITALITY PROPERTIES, INC., a Maryland corporation (hereinafter referred
to as the "Company"), and THOMAS J. HUTCHISON III (hereinafter referred to as
the "Executive") and is effective as of the Effective Date hereinbelow defined
at Section 7.19.

      WHEREAS, the Agreement and Plan of Merger (the "Agreement and Plan of
Merger") dated April __, 2004, between the Company; CNL HOSPITALITY PROPERTIES
ACQUISITION CORP., a Maryland corporation and wholly owned subsidiary of the
Company; CNL HOSPITALITY CORP., a Florida corporation (the "Advisor"); and the
principal stockholders of the Advisor contemplates that the Company enter into
an employment agreement with the Executive;

      WHEREAS, the Company wishes to offer employment to the Executive, and the
Executive wishes to accept such offer, on the terms set forth below;

      Accordingly, the parties hereto agree as follows:

      1. Term. The Company hereby employs the Executive, and the Executive
hereby accepts such employment for an initial term commencing as of the
Effective Date and ending on December 31, 2007, unless sooner terminated in
accordance with the provisions of Section 4 or Section 5 (the period during
which the Executive is employed hereunder being hereinafter referred to as the
"Term"). The Term shall be subject to automatic one- (1-) year renewals unless
either party hereto notifies the other, in accordance with Section 7.6, of
non-renewal at least ninety (90) days prior to the end of any such Term.

      2. Duties. The Executive, in his capacity as Chief Executive Officer and a
member of the Board of Directors of the Company (the "Board") shall faithfully
perform for the Company the duties of said office and shall perform such other
duties of an executive, managerial or administrative nature as shall be
specified and designated from time to time by the Board (including the
performance of services for, and serving on the Board of Directors of, any
subsidiary of the Company without any additional compensation). The Executive
shall devote substantially all of the Executive's business time and effort to
the performance of the Executive's duties hereunder, provided that in no event
shall this sentence prohibit the Executive from performing personal and
charitable activities and any other activities approved by the Board, so long as
such activities do not interfere with the Executive's duties for the Company.

      3. Compensation.

            3.1 Salary. The Company shall pay the Executive during the Term a
salary at the rate of $925,000 per annum (the "Annual Salary"), in accordance
with the customary payroll practices of the Company applicable to senior
executives generally. Annual Salary may be increased annually on January 1 of
each year commencing in 2006 by an amount as may be

<PAGE>

approved by the Board or the Compensation Committee of the Board of Directors
(the "Compensation Committee"), with such increase to be effective on the date
salary increases are effective for employees of the Company generally and, upon
such increase, the increased amount shall thereafter be deemed to be the Annual
Salary.

            3.2 Bonus. The Executive will be eligible to participate in the
Company's annual bonus program (the "Bonus Plan"), the terms of which will be
established by the Executive Compensation Committee of the Company; provided,
however, at a minimum, Executive shall be eligible for such bonus compensation
as is set forth on Attachment A attached hereto and made a part hereof by this
reference.

            3.3 Benefits - In General. The Executive shall be permitted during
the Term to participate in any group life, hospitalization or disability
insurance plans, health programs, pension and profit sharing plans and similar
benefits that may be available to other senior executives of the Company
generally, on the same terms as may be applicable to such other executives
(except as otherwise provided in this Section 3), in each case to the extent
that the Executive is eligible under the terms of such plans or programs.

            3.4 Paid Time Off. The Executive shall be entitled to no fewer than
twenty-five (25) days of paid time off per year.

            3.5 Automobile. The Company will provide the Executive a monthly
allowance of $1,000 for the use of an automobile. At the option of the Company,
in lieu of providing such allowance, the Company will provide the Executive with
an automobile of suitable standard to the Executive's position.

            3.6 Disability Benefits and Life Insurance. To the extent the
Company's group life and disability insurance plans do not provide this level of
benefits, the Executive shall be entitled to additional benefits so that his
long-term disability coverage provides benefits (to continue for such period as
is provided in the applicable disability plan or program, as amended from time
to time, and with waiting periods and pre-existing condition exceptions waived
to the extent such coverage is available on commercially reasonable terms) equal
seventy-five percent (75%) of his Annual Salary in the case of a covered
disability and life insurance coverage provides benefits with a face amount
equal to two (2) times his Annual Salary up to a maximum of One Million and
No/00 Dollars ($1,000,000.00) of life insurance.

            3.7 Expenses. The Company shall pay or reimburse the Executive for
all ordinary and reasonable out-of-pocket expenses actually incurred (and, in
the case of reimbursement, paid) by the Executive during the Term in the
performance of the Executive's services under this Agreement; provided that the
Executive submits such expenses in accordance with the policies applicable to
senior executives of the Company generally.

      4. Termination upon Death or Disability. If the Executive dies during the
Term, the obligations of the Company to or with respect to the Executive shall
terminate in their entirety except as otherwise provided under this Section 4 or
under Section 5.2. If the Executive becomes eligible for disability benefits
under the Company's long-term disability plans and arrangements (or, if none
apply, would have been so eligible under the most recent plan or arrangement),
the

                                       2
<PAGE>

Company shall have the right, to the extent permitted by law, to terminate the
employment of the Executive upon at least ninety (90) days written notice to the
Executive; provided that the Company will have no right to terminate the
Executive's employment if, in the opinion of a qualified physician reasonably
acceptable to the Company, it is reasonably certain that the Executive will be
able to resume the Executive's duties on a regular full-time basis within ninety
(90) days of the date the Executive receives notice of such termination. Upon
death or other termination of employment by virtue of disability, (i) the
Executive (or the Executive's estate or beneficiaries in the case of the death
of the Executive) shall have no right to receive any compensation or benefit
hereunder on and after the effective date of the termination of employment other
than Annual Salary and other benefits (but excluding any bonuses except as
provided in the Bonus Plan or in clause (ii) below) earned and accrued under
this Agreement prior to the date of termination (and excluding reimbursement
under this Agreement for expenses incurred prior to the date of termination);
(ii) the Executive (or the Executive's estate or beneficiaries in the case of
the death of the Executive) shall be entitled to a cash payment equal to the
Executive's Annual Salary (as in effect on the effective date of such
termination) payable no later than thirty (30) days after such termination;
(iii) all of the Executive's outstanding and unvested Founder's Stock (as
defined in Attachment A), and all of the Executive's unvested options to acquire
shares of Company stock shall immediately vest and such options shall remain
exercisable by Executive, or, in the case of death, by the beneficiaries of
Executive's estate, for one (1) year following such termination (or, if shorter,
the balance of the regular term of the options); (iv) Executive's outstanding
and unvested Incentive Stock (as defined in Attachment A) that would vest in the
calendar year of such termination shall, subject to the approval of the
Compensation Committee, become vested; and (v) this Agreement shall otherwise
terminate upon such death or other termination of employment and there shall be
no further rights with respect to the Executive hereunder (except as provided in
Section 7.15). The payments to be made above shall be in addition to, rather
than in lieu of, the entitlement of Executive or his estate to any other
insurance or benefit proceeds as a result of his death or disability.

      5. Certain Terminations of Employment.

            5.1 Termination for Cause; Termination of Employment by the
Executive Without Good Reason.

                  (a) For purposes of this Agreement, "Cause" shall mean:

                        (i) the Executive's (A) conviction for (or pleading nolo
            contendere to) any felony, or a misdemeanor involving moral
            turpitude, or (B) indictment for any felony or misdemeanor involving
            moral turpitude, if such indictment is not discharged or otherwise
            resolved within eighteen (18) months;

                        (ii) the Executive's commission of an act of fraud,
            theft or dishonesty related to the performance of the Executive's
            duties hereunder;

                        (iii) the willful and continuing failure or habitual
            neglect by the Executive to perform the Executive's duties
            hereunder;

                        (iv) any material violation by the Executive of the
            covenants

                                       3
<PAGE>

            contained in Section 6; or

                        (v) the Executive's willful and continuing material
            breach of this Agreement.

Notwithstanding the foregoing, if there exists (without regard to this sentence)
an event or condition that constitutes Cause under clause (iii) or (v) above,
the Executive shall have thirty (30) days from his receipt of such notice of
such event or condition to cure such event or condition and, if the Executive
does so, such event or condition shall not constitute Cause hereunder.

                  (b) For purposes of this Agreement, "Good Reason" shall mean,
unless otherwise consented to by the Executive:

                        (i) the material reduction of the Executive's authority,
            duties and responsibilities, or the assignment to the Executive of
            duties materially inconsistent with the Executive's position or
            positions with the Company and its subsidiaries;

                        (ii) a reduction in Annual Salary of the Executive
            except in connection with a reduction in compensation generally
            applicable to senior management employees of the Company;

                        (iii) the failure by the Company to obtain an agreement
            in form and substance reasonably satisfactory to the Executive from
            any successor to the business of the Company to assume and agree to
            perform this Agreement; or

                        (iv) the Company's material and willful breach of this
            Agreement.

                        (v) a requirement by the Company that Executive's work
            location be moved more than fifty (50) miles of the Company's
            principal place of business in Orlando, Florida.

                        (vi) the occurrence of a "change of control" of the
            Company. For purposes of this Section, "change of control" shall
            mean the sale to an independent third party or group of independent
            third parties of (i) more than fifty percent (50%) of the issued and
            outstanding equity securities of the Company and the voting power
            under normal circumstances to elect a majority of the Company's
            Board of Directors (whether by merger, consolidation, sale or
            transfer of the Company's equity securities); or (ii) all or
            substantially all of the Company's assets determined on a
            consolidated basis.

For purposes of this Agreement, a good faith determination of "Good Reason" made
by the Executive shall be conclusive. Notwithstanding the foregoing, if there
exists (without regard to this sentence) an event or condition that constitutes
Good Reason under clause (i), (ii) or (iv) above, the Company shall have thirty
(30) days from the date on which the Executive gives the notice thereof to cure
such event or condition and, if the Company does so, such event or condition
shall not constitute Good Reason hereunder.

                                       4
<PAGE>

                  (c) The Company may terminate the Executive's employment
hereunder for Cause. If the Company terminates the Executive for Cause, (i) the
Executive shall have no right to receive any compensation or benefit hereunder
on and after the effective date of the termination of employment other than
Annual Salary and other benefits (but excluding any bonuses except as provided
in the Bonus Plan) earned and accrued under this Agreement prior to the
effective date of the termination of employment (and Executive shall be entitled
to reimbursement under this Agreement for expenses incurred prior to the
effective date of the termination of employment); and (ii) this Agreement shall
otherwise terminate upon such termination of employment and the Executive shall
have no further rights hereunder (except as provided in Section 7.15)

                  (d) The Executive may terminate his employment without Good
Reason. If the Executive terminates the Executive's employment with the Company
without Good Reason: (i) the Executive shall have no right to receive any
compensation or benefit hereunder on and after the effective date of the
termination of employment other than Annual Salary and other benefits (but
excluding any bonuses except as provided in the Bonus Plan) earned and accrued
under this Agreement prior to the effective date of the termination of
employment (and Executive shall be entitled to reimbursement under this
Agreement for expenses incurred prior to the effective date of the termination
of employment); and (ii) this Agreement shall otherwise terminate upon such
termination of employment and the Executive shall have no further rights
hereunder (except as provided in Section 7.15).

            5.2 Termination Without Cause; Termination for Good Reason;
Non-renewal of Employment Agreement. The Company may terminate the Executive's
employment at any time for any reason or no reason and the Executive may
terminate the Executive's employment with the Company for Good Reason. If the
Company or the Executive terminates the Executive's employment and such
termination is not described in Section 4 or Section 5.1 or if the Company, for
any reason, does not renew this Agreement at the expiration of its Term and
Executive's employment terminates, (i) other than as set forth in this Section
5.2, the Executive shall have no right to receive any compensation or benefit
hereunder on and after the effective date of the termination of employment other
than Annual Salary and other benefits (but excluding any bonuses except as
provided in the Bonus Plan and clause (ii) below) earned and accrued under this
Agreement prior to the effective date of the termination of employment (and
Executive shall be entitled to reimbursement under this Agreement for expenses
incurred prior to the effective date of the termination of employment); (ii) the
Executive shall receive (A) cash payments equal to two (2) times the sum of (w)
the Executive's Annual Salary (as in effect on the effective date of such
termination) plus (x) the average of the Executive's Annual Bonus actually
earned for the two of the last three full fiscal years that would result in the
highest average ("Average Annual Bonus"), payable in equal installments over the
period that corresponds to the period during which the covenants provided in
Section 6.1(a) hereof are to be applicable in accordance with the Company's
usual and customary payroll practices, commencing on the first payday following
Executive's termination, provided, however, that in the event the termination of
employment is in connection with the Company not renewing this Agreement, such
payments shall equal the sum of (y) the Executive's Annual Salary (as in effect
on the effective date of such termination) plus (z) the Executive's Average
Annual Bonus, payable in equal installments over a twelve (12) month period in
accordance with the Company's usual and customary payroll practices, commencing
on the first payday following Executive's termination provided, further, that if
the covenants

                                       5
<PAGE>

provided in Section 6.1(a) are not applicable, in a single lump sum within five
(5) days of termination of employment; and (B) for a period of one (1) year
after termination of employment such continuing health benefits (including any
medical, vision or dental benefits), under the Company's health plans and
programs applicable to senior executives of the Company generally as the
Executive would have received under this Agreement (and at such costs to the
Executive) as would have applied in the absence of such termination or
expiration (but not taking into account any post-termination increases in Annual
Salary that may otherwise have occurred without regard to such termination and
that may have favorably affected such benefits) it being expressly understood
and agreed that nothing in this clause (ii) (B) shall restrict the ability of
the Company to amend or terminate such plans and programs from time to time in
its sole discretion; provided, however, that the Company shall in no event be
required to provide such coverage after such time as the Executive becomes
entitled to receive health benefits from another employer or recipient of the
Executive's services (and provided, further, that such entitlement shall be
determined without regard to any individual waivers or other arrangements);
(iii) all of the Executive's outstanding and unvested Founder's Stock (as
defined in Attachment A), and unvested options to acquire shares of Company
stock shall immediately vest and such options shall remain exercisable by
Executive, or, in the case of death, by the beneficiaries of Executive's estate,
for one (1) year following such termination (or, if shorter, the balance of the
regular term of the options); (iv) Executive's outstanding and unvested
Incentive Stock (as defined in Attachment A) that would vest in the calendar
year of such termination shall, subject to the approval of the Compensation
Committee, become vested; and (v) this Agreement shall otherwise terminate upon
such termination of employment and the Executive shall have no further rights
hereunder (except as provided in Section 7.15).

      6. Covenants of the Executive.

            6.1 Covenant Against Competition; Other Covenants. The Executive
acknowledges that (i) the principal business of the Company is the acquisition,
development and ownership of interests in hotel and resort properties including
full service hotels and resorts, limited service hotels, extended stay hotels
and upper upscale and luxury resorts (such business, and any and all other
businesses that after the date hereof, and from time to time during the Term,
become material with respect to the Company's then-overall business, herein
being collectively referred to as the "Business"); (ii) the Company knows of a
limited number of persons who have developed the Company's Business; (iii) the
Company's Business is, in part, national in scope; (iii) the Executive's work
for the Company and its subsidiaries (and the predecessors of either) has given
and will continue to give the Executive access to the confidential affairs and
proprietary information of the Company and to "trade secrets", as defined in
Section 688.002(4) of the Florida Statutes, the Company and its subsidiaries;
(v) the covenants and agreements of the Executive contained in this Section 6
are essential to the business and goodwill of the Company; and (vi) the Company
would not have entered into this Agreement but for the covenants and agreements
set forth in this Section 6. In light of the foregoing, during the Term and (i)
in the case of a termination by the Company for Cause, a termination by the
Company without Cause, a termination by the Executive without Good Reason or a
termination of Executive's employment after non-renewal of this Agreement, for a
period of one (1) year, (ii) in the case of a termination by the Executive with
Good Reason as defined in Section 5.1(b)(vi) hereof, for a period of two (2)
years and (iii) as to Section 6.1(b) and (d), at any time during and after the
Executive's employment with the Company and its subsidiaries (and the
predecessors of either),

                                       6
<PAGE>

            (a) The Executive shall not, directly or indirectly, own, manage,
control or participate in the ownership, management, or control of, or be
employed or engaged by or otherwise affiliated or associated as an employee,
employer, consultant, agent, principal, partner, stockholder, corporate officer,
director or in any other individual or representative capacity, engage or
participate in any business with assets in excess of $500 million that is in
competition in any manner whatsoever with the Business of the Company in any
state or country or other jurisdiction in which the Company conducts its
Business; provided, however, that, notwithstanding the foregoing, (i) the
Executive may own or participate in the ownership of any entity which he owned
or managed or participated in the ownership or management of prior to the
Effective Date hereof which ownership, management or participation has been
disclosed to the Company; and (ii) the Executive may invest in securities of any
entity, solely for investment purposes and without participating in the business
thereof, if (A) such securities are traded on any national securities exchange
or the National Association of Securities Dealers, Inc. Automated Quotation
System, (B) the Executive is not a controlling person of, or a member of a group
which controls, such entity and (C) the Executive does not, directly or
indirectly, own one percent (1%) or more of any class of securities of such
entity.

                  (b) The Executive shall keep secret and retain in strictest
confidence, and shall not use for his benefit or the benefit of others, except
in connection with the business and affairs of the Company and its affiliates,
all confidential matters relating to the Company's Business and the business of
any of its affiliates and to the Company and any of its affiliates, learned by
the Executive heretofore or hereafter directly or indirectly from the Company or
any of its subsidiaries (or any predecessor of either) (the "Confidential
Company Information"), including, without limitation, information with respect
to the Business and any aspect thereof, profit or loss figures, and the
Company's or its affiliates, (or any of their predecessors) properties, and
shall not disclose such Confidential Company information to anyone outside of
the Company except with the Company's express written consent and except for
Confidential Company Information which (i) at the time of receipt or thereafter
becomes publicly known through no wrongful act of the Executive; (ii) is clearly
obtainable in the public domain; (iii) was not acquired by the Executive in
connection with the Executive's employment or affiliation with the Company; (iv)
was not acquired by the Executive from the Company or its representatives or
from a third-party who has an agreement with the Company not to disclose such
information; or (v) is required to be disclosed by rule of law or by order of a
court or governmental body or agency.

                  (c) The Executive shall not, without the Company's prior
written consent, directly or indirectly, (i) knowingly solicit or encourage to
leave the employment or other service of the Company or any of its affiliates,
any employee thereof or hire (on behalf of the Executive or any other person or
entity) any employee who has left the employment or other service of the Company
or any of its affiliates (or any predecessor of either) within one (1) year of
the termination of such employee's or independent contractor's employment or
other service with the Company and its affiliates; or (ii) whether for the
Executive's own account or for the account of any other person, firm,
corporation or other business organization, intentionally interfere with the
Company's or any of its affiliates, relationship with, or endeavor to entice
away from the Company or any of its affiliates, any person who during the
Executive's employment with the Company and its affiliates (or the predecessors
of either) is or was a customer or client of the Company or any of its
affiliates (or any predecessor of either).

                                       7
<PAGE>

                  (d) All memoranda, notes, lists, records, property and any
other tangible product and documents (and all copies thereof) made, produced or
compiled by the Executive or made available to the Executive concerning the
Business of the Company and its affiliates shall be the Company's property and
shall be delivered to the Company at any time on request.

            6.2 Rights and Remedies upon Breach. The Executive acknowledges and
agrees that any breach by him of any of the provisions of Section 6.1 (the
"Restrictive Covenants") would result in irreparable injury and damage for which
money damages would not provide an adequate remedy. Therefore, if the Executive
breaches, or threatens to commit a breach of, any of the Restrictive Covenants,
the Company and its affiliates shall have the right and remedy to have the
Restrictive Covenants specifically enforced (without posting bond and without
the need to prove damages) by any court having equity jurisdiction, including,
without limitation, the right to an entry against the Executive of restraining
orders and injunctions (preliminary, mandatory, temporary and permanent) against
violations, threatened or actual, and whether or not then continuing, of such
covenants. This right and remedy shall be in addition to, and not in lieu of,
any other rights and remedies available to the Company and its affiliates under
law or in equity (including, without limitation, the recovery of damages). The
existence of any claim or cause of action by the Executive, whether predicated
on this Agreement or otherwise, shall not constitute a defense to the
enforcement of the Restrictive Covenants. The Company has the right to cease
making the payments provided in Section 5.2 in the event of a material breach of
any of the Restrictive Covenants.

      7. Other Provisions.

            7.1 Severability. The Executive acknowledges and agrees that (i) the
Executive has had an opportunity to seek advice of counsel in connection with
this Agreement; and (ii) the Restrictive Covenants are reasonable in
geographical and temporal scope and in all other respects. If it is determined
that any of the provisions of this Agreement, including, without limitation, any
of the Restrictive Covenants, or any part thereof, is invalid or unenforceable,
the remainder of the provisions of this Agreement shall not thereby be affected
and shall be given full affect, without regard to the invalid portions.

            7.2 Duration and Scope of Covenants. If any court or other decision
maker of competent jurisdiction determines that any of the Executive's covenants
contained in this Agreement, including, without limitation, any of the
Restrictive Covenants, or any part thereof, are unenforceable because of the
duration or geographical scope of such provision, then, after such determination
has become final and unappealable, the duration or scope of such provision, as
the case may be, shall be reduced so that such provision becomes enforceable
and, in its reduced form, such provision shall then be enforceable and shall be
enforced.

            7.3 Enforceability of Restrictive Covenants; Jurisdictions. The
Company and the Executive intend to and hereby confer jurisdiction to enforce
the Restrictive Covenants upon the courts of any jurisdiction within the
geographical scope of the Restrictive Covenants. If the courts of any one or
more of such jurisdictions hold the Restrictive Covenants wholly unenforceable
by reason of breadth of scope or otherwise it is the intention of the Company
and the Executive that such determination not bar or in any way affect the
Company's right, or the right of

                                       8
<PAGE>

any of its affiliates, to the relief provided above in the courts of any other
jurisdiction within the geographical scope of such Restrictive Covenants, as to
breaches of such Restrictive Covenants in such other respective jurisdictions,
such Restrictive Covenants as they relate to each jurisdiction's being, for this
purpose, severable, diverse and independent covenants, subject, where
appropriate, to the doctrine of res judicata.

            7.4 Arbitration. Except with regard to Section 6, all disputes
between the parties or any claims concerning the performance, breach,
construction or interpretation of this Agreement, or in any manner arising out
of this Agreement, shall be submitted to binding arbitration in accordance with
the Commercial Arbitration Rules, as amended from time to time, of the American
Arbitration Association (the "AAA"), which arbitration shall be carried out in
the manner set forth below:

            (a)   Within fifteen (15) days after written notice by one party to
                  the other party of its demand for arbitration, which demand
                  shall set forth the name and address of its designated
                  arbitrator, the other party shall appoint its designated
                  arbitrator and so notify the demanding party. Within fifteen
                  (15) days thereafter, the two arbitrators so appointed shall
                  appoint the third arbitrator. If the two appointed arbitrators
                  cannot agree on the third arbitrator, then the AAA shall
                  appoint an independent arbitrator as the third arbitrator. The
                  dispute shall be heard by the arbitrators within ninety (90)
                  days after appointment of the third arbitrator. The decision
                  of any two (2) or all three (3) of the arbitrators shall be
                  binding upon the parties without any right of appeal. The
                  decision of the arbitrators shall be final and binding upon
                  the Company, its successors and assigns, and upon Executive,
                  his heirs, personal representatives, and legal
                  representatives.

            (b)   The arbitration proceedings shall take place in Orlando,
                  Florida, and the judgment and determination of such
                  proceedings shall be binding on all parties. Judgment upon any
                  award rendered by the arbitrators may be entered into any
                  court having competent jurisdiction without any right of
                  appeal.

            (c)   Each party shall pay its or his own expenses of arbitration,
                  and the expenses of the arbitrators and the arbitration
                  proceeding shall be shared equally. However, if in the opinion
                  of a majority of the arbitrators, any claim or defense was
                  unreasonable, the arbitrators may assess, as part of their
                  award, all or any part of the arbitration expenses of the
                  other party (other than attorneys' fees which are covered in
                  Section 7.5 below) and of the arbitrators and the arbitration
                  proceeding.

            7.5 Attorneys' Fees. In the event of any legal proceeding (including
an arbitration proceeding) relating to this Agreement or any term or provision
thereof, the losing party shall be responsible to pay or reimburse the
prevailing party for all reasonable attorneys' fees incurred by the prevailing
party in connection with such proceeding.

            7.6 Notices. Any notice or other communication required or permitted

                                       9
<PAGE>

hereunder shall be in writing and shall be delivered personally, telegraphed,
telexed, sent by facsimile transmission or sent by certified, registered or
express mail, postage prepaid. Any such notice shall be deemed given when so
delivered personally, telegraphed, telexed or sent by facsimile transmission or,
if mailed, five days after the date of deposit in the United States mails as
follows:

                                    (i)  If to the Company, to:

                                         CNL Hospitality Properties, Inc.
                                         CNL Center at City Commons
                                         450 South Orange Avenue
                                         Orlando, Florida  32801
                                         Attention: James M. Seneff, Jr.
                                         Facsimile: (212) 805-9330

                                         with a copy in either case to:

                                         Greenberg Traurig, LLP
                                         The MetLife Building

                                         200 Park Avenue
                                         New York, NY 10166
                                         Attention: Judith D. Fryer, Esq.
                                         Facsimile: (212) 805-9330

                                    (ii) If to the Executive, to:

                                         Thomas J. Hutchison III
                                         9832 Lake Louise Drive
                                         Windermere, Florida 34786

                                         with a copy in either case to:

                                         Baker & Hostetler LLP
                                         SunTrust Center
                                         200 South Orange Avenue, Suite 2300
                                         Orlando, Florida 32802
                                         Attention: G. Thomas Ball, Esq.
                                         Facsimile: (407) 841-0168

Any such person may by notice given in accordance with this Section to the other
parties hereto designate another address or person for receipt by such person of
notices hereunder.

                                       10
<PAGE>

            7.7 Entire Agreement. This Agreement contains the entire agreement
between the parties with respect to the subject matter hereof and supersedes all
prior agreements, written or oral, with the Company or its subsidiaries (or any
predecessor of either).

            7.8 Waivers and Amendments. This Agreement may be amended,
superseded, canceled, renewed or extended, and the terms hereof may be waived,
only by a written instrument signed by the parties or, in the case of a waiver,
by the party waiving compliance. No delay on the part of any party in exercising
any right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any waiver on the part of any party of any such right, power or privilege
nor any single or partial exercise of any such right, power or privilege,
preclude any other or further exercise thereof or the exercise of any other such
right, power or privilege.

            7.9 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAW.

            7.10 Assignment. This Agreement, and the Executive's rights and
obligations hereunder, may not be assigned by the Executive; any purported
assignment by the Executive in violation hereof shall be null and void. In the
event of any sale, transfer or other disposition of all or substantially all of
the Company's assets or business, whether by merger, consolidation or otherwise,
the Company may assign this Agreement and its rights hereunder.

            7.11 Withholding. The Company shall be entitled to withhold from any
payments or deemed payments any amount of withholding required by law. No other
taxes, fees, impositions, duties or other charges or offsets of any kind shall
be deducted or withheld from amounts payable hereunder, unless otherwise
required by law.

            7.12 No Duty to Mitigate. The Executive shall not be required to
mitigate damages or the amount of any payment provided for under this Agreement
by seeking other employment or otherwise, nor will any payments hereunder be
subject to offset in the event the Executive does mitigate.

            7.13 Binding Effect. This Agreement shall be binding upon and inure
to the benefit of the parties and their respective successors, permitted
assigns, heirs, executors and legal representatives.

            7.14 Counterparts. This Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered
shall be an original but all such counterparts together shall constitute one and
the same instrument. Each counterpart may consist of two copies hereof each
signed by one of the parties hereto.

            7.15 Survival. Anything contained in this Agreement to the contrary
notwithstanding, the provisions of Sections 5, 6, 7.3, 7.4, 7.5, 7.11, and 7.12
and the other provisions of this Section 7 (to the extent necessary to
effectuate the survival of Sections 5, 6 , 7.3, 7.4, 7.11, and 7.12) shall
survive the termination of this Agreement and any termination of the Executive's
employment hereunder.

            7.16 Existing Agreements. Executive represents to the Company that
the

                                       11
<PAGE>

Executive is not subject or a party to any employment or consulting agreement,
non-competition covenant or other agreement, covenant or understanding which
might prohibit the Executive from executing this Agreement or limit the
Executive's ability to fulfill the Executive's responsibilities hereunder.

            7.17 Headings. The headings in this Agreement are for reference only
and shall not affect the interpretation of this Agreement.

            7.18 Parachute Provisions. If any amount payable to or other benefit
receivable by the Executive pursuant to this Agreement is deemed to constitute a
Parachute Payment (as defined below), alone or when added to any other amount
payable or paid to or other benefit receivable or received by the Executive
which is deemed to constitute a Parachute Payment (whether or not under an
existing plan, arrangement or other agreement), and would result in the
imposition on the Executive of an excise tax under Section 4999 of the Internal
Revenue Code of 1986, as amended, then, in addition to any other benefits to
which the Executive is entitled under this Agreement, the Executive shall be
paid by the Company an amount in cash equal to the sum of the excise taxes
payable by the Executive by reason of receiving Parachute Payments plus the
amount necessary to put the Executive in the same after-tax position (taking
into account any and all applicable federal, state and local excise, income or
other taxes at the highest applicable rates on such Parachute Payments and on
any payments under this Section 7.18) as if no excise taxes had been imposed
with respect to Parachute Payments. The amount of any payment under this Section
7.18 shall be computed by a certified public accounting firm mutually and
reasonably acceptable to the Executive and the Company, the computation expenses
of which shall be paid by the Company. "Parachute Payment" shall mean any
payment deemed to constitute a "parachute payment" as defined in Section 280G of
the Internal Revenue Code of 1986, as amended.

            7.19 Effective Date. The Effective Date of this Agreement is the
effective date of the merger between the Company and the Advisor contemplated in
the Agreement and Plan of Merger as determined by applicable law.

      IN WITNESS WHEREOF, the parties hereto have signed their names as of the
day and year set forth below.

                               CNL HOSPITALITY PROPERTIES, INC.:

                               By: /s/ James M. Seneff, Jr.

                               Name: James M. Seneff, Jr.

                               Title: Chairman, CNL Hospitality Properties, Inc.

                               Date: 04/30/04

                               EXECUTIVE:

                               /s/ Thomas J. Hutchison, III

                               Date: April 29, 2004

                                       12
<PAGE>

                             THOMAS J. HUTCHISON III
                              EMPLOYMENT AGREEMENT

                                 ATTACHMENT "A"
                                  (As Amended)

      A. BONUS COMPENSATION

      1. Annual Bonus Compensation. Executive shall be eligible to participate
the Bonus Plan during the term of this Agreement. Executive's bonus will be
subject to Executive's achievement of performance criteria established annually
by the Compensation Committee:

            1.1. For Threshold level, Executive shall receive 50% of his Annual
Salary as bonus compensation.

            1.2. For Target level, Executive shall receive 100% of his Annual
Salary as bonus compensation.

            1.3. For Maximum level, Executive shall receive 175% of his Annual
Salary as bonus compensation.

Any bonus compensation in excess of 125% of Executive's Annual Salary will be
paid in shares of the Company's common stock. Executive's performance criteria
shall be established annually by the Compensation Committee. For each year,
Executive's bonus, if any, will be paid to Executive in a lump sum on or before
ninety (90) days after the end of such fiscal year.

      2. Withholding. All amounts payable to Executive hereunder shall be
subject to all required federal or state income tax withholding by Company.

B. OTHER BENEFITS AND PAYMENTS

      1. Travel. Executive shall be entitled to use any private airplane owned
or leased by the Company when traveling on Company business. If for any reason
such private airplane is not available for such travel, Executive shall use
travel arrangements that are in accordance with the Company's policy on travel
by senior management. Executive shall be entitled to personal use of any such
airplane on a plane and space availability basis (personal use to be additional
compensation to Executive).

      2. Use of Hotel Properties. Executive shall be entitled to use the
Company's hotel and resort properties for business and personal purposes in
accordance with the policies approved by the Board relating to the use of hotel
and resort properties by senior management and members of the Board.

      3. Incentive Stock. Subject to the approval of the 2004 Omnibus Long-Term
Plan at the Company's 2004 annual meeting of stockholders, as an incentive
bonus, shares of the Company's common stock ("Incentive Stock") shall be granted
to the Executive in accordance

                                       13
<PAGE>

with the following:

            3.1. Incentive Stock shall be granted to the Executive in reward for
the Executive's service and achievement of certain performance criteria, which
performance criteria shall be established and determined by the Compensation
Committee.

            3.2. A total of 1,050,000 shares of Incentive Stock shall be granted
in the form of deferred stock. Two and nine-tenths percent (2.9%) of the shares
of Incentive Stock shall be granted and released to the Executive if he is
continuously employed by the Company from the Effective Date through December
31, 2004, five and seven-tenths percent (5.7%) of the shares of Incentive Stock
shall be granted and released to the Executive if he is continuously employed by
the Company from the Effective Date through December 31, 2005, five and
seven-tenths percent (5.7%) of the shares of Incentive Stock shall be granted
and released to the Executive if he is continuously employed by the Company from
the Effective Date through December 31, 2006, and five and seven-tenths percent
(5.7%) of the shares of Incentive Stock shall be granted and released to the
Executive if he is continuously employed by the Company from the Effective Date
through December 31, 2007. The remaining shares of Incentive Stock shall be
granted and released based on the achievement of performance criteria over
semi-annual, annual and cumulative performance periods ending December 31, 2007,
as determined by the Compensation Committee.

      4. Founder's Stock. Subject to the approval of the 2004 Omnibus Long-Term
Plan at the Company's 2004 annual meeting of stockholders, an allocation of
400,000 shares of the Company's common stock in the initial public offering of
the Company (the "Founder's Stock") shall be granted to the Executive no later
than the closing of the initial public offering of Company stock and the right
to dispose of such stock shall vest in three (3) equal installments on each of
the first three anniversaries of the Effective Date (or earlier as provided in
the Agreement) if Executive has been continuously employed by the Company from
the Effective Date to such anniversary provided that all other rights with
respect to such stock (including the right to vote and the right to receive
dividends) shall vest immediately (subject to forfeiture if the unvested shares
are forfeited on termination of employment, except as otherwise provided in the
Agreement.)

                                       14
<PAGE>

      IN WITNESS OF THE PARTIES AGREEMENT TO THIS ATTACHEMENT "A" (AS AMENDED),
the parties hereto have signed their names as of the day and year set forth
below.

                                        CNL HOSPITALITY PROPERTIES, INC.:

                                        By: ____________________________________

                                        Name: __________________________________

                                        Title: _________________________________

                                        Date: __________________________________

                                        EXECUTIVE:

                                        ________________________________________

                                        Date: __________________________________

                                       15

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