Document:

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                                                                    EXHIBIT 10.3

                   REAL ESTATE SALE AND NON-COMPETE AGREEMENT

                          REGARDING CERTAIN PROPERTIES

      THIS REAL ESTATE SALE AND NON-COMPETE AGREEMENT REGARDING CERTAIN
PROPERTIES ("Agreement") is made and entered into this ___ day of __________,
2005, by and between John Q. Hammons Hotels Two, L.P., a Delaware limited
partnership ("Seller"), the Revocable Trust of John Q. Hammons, dated December
28, 1989, as amended and restated ("Buyer") and John Q. Hammons, of Springfield,
Missouri ("Hammons").

                                   WITNESSETH:

      WHEREAS, Seller is the owner of fee simple title to certain parcels of
undeveloped real estate, as further referenced and described below; and

      WHEREAS, subject to certain restrictions on the development of such
parcels by Buyer, Seller desires to sell to Buyer and Buyer desires to purchase
from Seller one of such parcels of real estate; and

      WHEREAS, Buyer is interested in obtaining an option to purchase the other
parcel, and Seller is willing to grant to Buyer an option to purchase such
parcel, subject to the same restrictions and upon the terms and conditions set
forth herein;

      NOW, THEREFORE, in consideration of the promises and the mutual
undertakings and the agreements set forth herein, the parties agree as follows:

1. Sale of Property. Subject to the other provisions of this Agreement, Seller
agrees to sell and convey to Buyer by special warranty deed ("Deed") and Buyer
agrees to purchase from Seller in the manner provided herein, one (1)
undeveloped parcel of real property, as more particularly described on Exhibit A
attached hereto (the "Omaha Parcel").

2. Purchase Price. The purchase price for the Omaha Parcel shall be its fair
market value at the Closing hereof, as determined by a mutually acceptable
independent and recognized appraiser with experience appraising commercial
properties comparable to the Omaha Parcel (the "Omaha Price"); provided,
however, that if the Omaha Price is more than Two Million and 00/100 Dollars
($2,000,000), Buyer may terminate this Agreement solely as it applies to the
Omaha Parcel, without further liability of either party hereunder.

3. Method of Payment of Purchase Price. At the Closing, the Omaha Price shall be
paid by Buyer to Seller in cash or immediately available funds.

4. Title Matters. No later than thirty (30) days prior to Closing, Seller shall
cause to be provided to Buyer an acceptable title insurance commitment ("Title
Commitment") for the Omaha Parcel, issued by a title company to be chosen by
Buyer (the "Title Company"), in which the Title Company shall commit to issue an
ALTA form owner's policy of title insurance ("Owner's Policy"), showing Buyer as
the prospective named insured, showing the policy

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amount as the Omaha Price, and showing the status of Seller's title. Buyer shall
have a period of ten (10) days ("Objection Period") following Buyer's receipt of
the Title Commitment in which to examine the Title Commitment and, prior to the
expiration of the Objection Period, shall advise Seller of any objections
("Title Objections") Buyer may have to Seller's title as shown in the Title
Commitment. Seller shall then have a period of five (5) days in which to notify
Buyer in writing of those Title Objections it elects to cure. In the event
Seller elects to cure less than all of the Title Objections, Buyer shall have
the right to terminate this Agreement with respect to the Omaha Parcel by giving
Seller written notice thereof within five (5) business days of its receipt of
Seller's notice, and thereafter neither party shall have any further obligation
hereunder with respect to the Omaha Parcel. In the event Buyer does not
terminate this Agreement with respect to the Omaha Parcel, Seller shall have
until three (3) days prior to the Closing ("Cure Period") in which to cure the
Title Objections it has elected to cure. In the event Seller is unable or
unwilling to cure all of the Title Objections during the Cure Period, and Buyer
has not agreed in writing to waive the uncured Title Objections, this Agreement
shall terminate as to the Omaha Parcel and thereafter neither party shall have
any further obligation hereunder with respect to the Omaha Parcel. Promptly
following the Closing, Seller will cause to be issued to Buyer an Owner's Policy
in an amount equal to the Omaha Price, insuring fee simple title to the Omaha
Parcel in Buyer, subject only to those title exceptions or requirements
contained in the Title Commitment to which Buyer does not object or those title
exceptions which Buyer has otherwise waived (collectively "Permitted
Exceptions").

5. Closing. Closing shall be conditioned upon and subject to, and shall take
place at the Title Company or other mutually agreed upon location concurrent
with the Closing as defined in and contemplated by that certain Amended and
Restated Transaction Agreement by and among JD Holdings, LLC, JQH Acquisition,
LLC, John Q. Hammons, Buyer, and Hammons, Inc. dated June 2, 2005, (the
"Transaction Agreement"). Should Closing not occur as provided in the
Transaction Agreement, this Agreement shall terminate and be of no further force
and effect, and the parties shall have no further liability hereunder except as
otherwise may be specifically provided in accordance with the Transaction
Agreement. Closing by Buyer shall be further conditioned upon the Omaha Parcel
being in substantially the same condition as existing as of the date hereof,
with no materially adverse change in zoning or other development or land use
restrictions applicable to the Omaha Parcel, in each case not caused or
requested by Buyer as a controlling entity of Seller. At Closing, the following
shall occur:

      A. Seller's Deliveries. At Closing, Seller shall cause to be delivered to
      Buyer the following items (all documents will be duly executed and
      acknowledged where required):

            (1) The Deed conveying to Buyer insurable title to the Omaha Parcel
            in an amount at least equal to the Omaha Price (subject only to the
            Permitted Exceptions), and possession of the Omaha Parcel;

            (2) An Owner's Affidavit reasonably satisfactory to Seller and the
            Title Company;

            (3) Such other documentation, approvals or certificates as may be
            reasonably required by the Title Company to issue its Owner's Policy
            in favor of Buyer in an amount at least equal to the Omaha Price.

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      B. Buyer's Deliveries. Buyer shall pay the Omaha Price (as adjusted based
      on the prorations hereunder) to Seller by wire transfer to Title Company
      of immediately available funds as required by the Title Company, and such
      other documents, approvals, and/or certificates as may be requested by the
      Title Company.

      C. Costs. Sellers and Buyer shall each pay one-half (1/2) of all closing
      costs, including the Title Commitment, the Closing fee charged by the
      Title Company, the appraisal fee, the premium of the standard Owner's
      Policy, all premiums and costs associated with any special endorsements to
      the standard Owner's Policy (if any), and the costs of recording the Deeds
      conveying titles to the Omaha Parcel to Buyer; provided, however, that
      each party shall pay their separate legal fees. Additionally, any other
      expenses, charges and fees of the Closing not specifically allocated
      herein shall be divided and paid equally between the parties.

6. Possession; Prorations. Possession of the Omaha Parcel will be delivered to
Buyer on the date of Closing. All ad valorem real estate taxes, annual
installments of special assessments, and other city, county, state and school
taxes and other assessments or impositions levied on or affecting the Omaha
Parcel, including, without limitation, any association assessments (collectively
"Real Estate Taxes") for the calendar year in which the Closing occurs shall be
prorated to the date of Closing; provided, if the Real Estate Taxes for such
calendar year are not known as of the date of Closing, the proration shall be
computed using the best evidence and information available.

7. Option to Purchase Cary Parcel. Seller hereby grants to Buyer the exclusive
option to purchase (the "Option") one (1) undeveloped parcel of real property as
more particularly described on Exhibit B attached hereto (the "Cary Parcel"), at
a purchase price equal to the fair market value, as determined as of the date of
exercise of the Option by a mutually acceptable independent and recognized
appraiser with experience appraising commercial properties comparable to the
Cary Parcel (the "Cary Price"). This option may be exercised by Buyer at any
time within one (1) year from and after the date of Closing with respect to the
Omaha Parcel (as defined above) upon giving Seller written notice of Buyer's
intent to exercise such option (the "Option Notice"). The terms and conditions
of purchase shall be customary and substantially the same as set forth herein
with respect to the Omaha Parcel, with closing to occur on a mutually agreed
date no earlier than thirty (30) days and no later than sixty (60) days from and
after the date of the giving of the Option Notice. Should Buyer fail to timely
give Seller an Option Notice prior to the expiration of the Option Term, then
this Option shall automatically expire and neither party shall have any further
liability to the other party with respect to the Cary Parcel. Buyer is hereby
authorized to prepare and record with the appropriate recording office in which
the Cary Parcel is located, a Memorandum of Option Agreement, in customary form
and substance, as reasonably approved by Seller, and referencing this Option and
the Option Term, and Seller agrees to reasonably cooperate with and execute a
counterpart of such Memorandum of Option Agreement.

8. Default; Remedy. In the event that either party fails to perform such party's
obligations hereunder (except as excused by the other's default), the party
claiming default shall make written demand for performance upon the defaulting
party. If the defaulting party fails to comply with such written demand within
five (5) days after receipt of such notice to perform, the

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non-defaulting party shall have the option to: (a) waive such default; (b)
terminate this Agreement or (c) seek specific performance hereunder. The rights
and remedies specified in this paragraph shall be the exclusive rights and
remedies available to the parties hereunder.

9. Non-Compete Agreement. For valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Buyer and Hammons hereby covenant
and agree that during the Non-Compete Term (as defined below) as applicable to
each of the Cary Parcel and the Omaha Parcel, respectively, neither Buyer nor
Hammons, directly or indirectly through any Affiliates (as defined below), shall
develop on either of such properties any hotel, motel, guest rental time-share
project, "condo" hotels, or similar nightly rental hospitality project, unless
otherwise permitted in accordance with that certain Development Restriction
Agreement by and among Buyer, John Q. Hammons and their Affiliates, on the one
hand, and John Q. Hammons Hotels, L.P. ("JQH, LP:), Seller, and their
Affiliates, on the other hand, dated as of the date hereof. An "Affiliate" of
Buyer or Hammons for purposes of this Agreement shall have the same meaning
ascribed to such term in the Development Restriction Agreement. The term of this
non-compete agreement (the "Non-Compete Term") shall commence upon Closing and
shall survive thereafter and continue and remain in effect for each of the Omaha
Parcel and the Cary Parcel, as applicable, until, but shall then expire with
respect to each applicable parcel, upon the earliest to occur of one or more of
the following events:

      A. As to both the Omaha Parcel and the Cary Parcel, in the event that the
      Preferred Redemption Price (as defined below) has not been paid in full to
      the holders of Hammons Preferred Units, other than the Required Holders
      (each as defined below), or the proceeds from any liquidation of JQH, LP
      (or any successor thereto) are not fully distributed, in each case by the
      Liquidation Completion Deadline, in accordance with the terms and
      conditions of Section 13.2 of that certain Fourth Amended and Restated
      Agreement of Limited Partnership of [John Q. Hammons Hotels], L.P., dated
      as of the date hereof, as amended, supplemented or otherwise modified from
      time to time in accordance with its terms (the "Partnership Agreement").
      "Preferred Redemption Price," "Hammons Preferred Units," "Required
      Holders" and "Liquidation Completion Deadline" shall have the meanings
      accorded to such terms in the Partnership Agreement.

      B. As to the applicable parcel noted below, upon the sale, assignment,
      transfer or other disposition, in a single transaction or a series of
      transactions of the following properties or of any direct or indirect
      ownership interest in the entity that holds title to such properties, as
      applicable, so that as a result of which sale, assignment, transfer or
      other disposition, such property is no longer owned by the Seller or JQH,
      LP, or a subsidiary of Seller or JQH, LP that is directly or indirectly
      owned 50% or more (in terms of voting securities or other voting ownership
      or partnership interest) by Seller or JQH, LP:

            (1) With respect to the Omaha Parcel, the Embassy Suites Omaha (Old
            Market), 555 S. 10th Street, Omaha, Nebraska 68102; or

            (2) With respect to the Cary Parcel, the Embassy Suites Hotel
            Raleigh-Durham/Research Triangle East, 201 Harrison Oaks Boulevard,
            Cary, North Carolina 27513.

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10. Representations and Warranties.

      A. Representations of Seller.

            (1) Seller is a Delaware Limited Partnership, duly and validly
            organized and is validly existing in good standing as a limited
            partnership under the laws of that state, with full power and
            authority to enter into and perform its obligations hereunder;

            (2) Seller has full right, title, authority and capacity to execute
            and perform this Agreement and to consummate all of the transactions
            contemplated herein;

      B. Representations of Buyer. Buyer hereby represents and warrants as of
      the date hereof that Buyer has full right, authority and capacity to
      execute and perform this Agreement and to consummate all of the
      transactions contemplated herein, and the individual of Buyer who executes
      and delivers this Agreement and all documents to be delivered to Seller
      hereunder is and will be duly authorized to do so.

11. Confidential Information. Each party to this Agreement agrees to keep the
terms of this Agreement and all information furnished to such party or obtained
by such party (other than matters of public record in information generally
available to the public) confidential, and not to reveal them to third parties
(other than each party's legal counsel, accountants, inspectors and other
consultants, or as may be required or advisable to comply with laws, rules, or
regulations of applicable governing authorities or pursuant to any agreements
existing to which either party is bound), prior to the date of Closing.

12. Condition of Omaha Parcel. Seller makes no representation or warranty of any
kind, express or implied, with respect to the Omaha Parcel, the same, except as
specifically provided herein, being sold "AS IS, WHERE IS, WITH ALL FAULTS." By
execution hereof, Buyer represents and warrants to Seller that Buyer is an
experienced, sophisticated Buyer of real estate, with knowledge and experience
sufficient to enable it to evaluate the merits and risks of the sale, and that
it is represented by knowledgeable and experienced legal counsel of its own
choosing, and agrees that, except as specifically provided in this Agreement,
neither Seller, nor its agents or representatives, has made, and that Buyer has
not relied upon, any representation or warranty of any kind which is not
expressly set forth or provided for herein in connection with the sale of the
Omaha Parcel or Buyer's actual purchase thereof pursuant hereto, Buyer having
elected to rely instead entirely upon its prior knowledge and inspection of the
Omaha Parcel pursuant to the terms of this Agreement.

13. Miscellaneous.

      A. Brokerage. Buyer and Seller each represent and warrant to each other
      that they have not engaged the services of any broker, sales agent or real
      estate consultants in connection with this Agreement or the transaction
      contemplated hereby and that no other person or entity can properly claim
      a right to a real estate commission, real estate finder's fee, real estate
      acquisition fee, or other real estate brokerage type compensation
      (collectively "Real Estate Compensation") based upon the acts of that
      party with respect to the transaction contemplated by this Agreement. Each
      party hereto agrees to

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      indemnify and defend the other against and to hold the other harmless from
      any and all costs, loss, liability or expense (including attorneys' fees)
      resulting from any claim for Real Estate Compensation by any person or
      entity based upon such party's acts. The indemnity contained in this
      provision shall survive the closing of the transaction contemplated by
      this Agreement.

      B. Notices. Any notice pursuant hereto shall be given in writing by (i)
      personal delivery, or (ii) expedited delivery service with proof of
      delivery, or (iii) United States Mail, postage prepaid, registered or
      certified mail, return receipt requested, or (iv) telefacsimile
      transmission (provided that such telefacsimile transmission is confirmed
      by expedited delivery service or by mail in the manner previously
      described), sent to the intended addressee at the address set forth below,
      and shall be deemed to have been given either at the time of personal
      delivery or, in the case of expedited delivery service or mail, as of the
      date of first attempted delivery at the address or, in the case of
      telefacsimile transmission, upon receipt. Any such notices may be under
      the signature of the Seller's or Buyer's (as the case may be) agent,
      attorney, or representative.

SELLER'S ADDRESS FOR NOTICE:              BUYER'S ADDRESS FOR NOTICE:

      John Q. Hammons Hotels, LP                John Q. Hammons
      Attn: ______________                      300 John Q. Hammons Parkway
      300 John Q. Hammons Parkway               Springfield, Missouri 65806
      Suite 900                                 Telephone: (417) - 864-4300
      Springfield, MO 65806                     Facsimile: (417)-873-3511

With a copy to:                           With a copy to:

                                                Blackwell Sanders Peper Martin,
      ___________________________               LLP
                                                Attn: Gary Gilson
      ___________________________               David C. Agee
                                                4801 Main Street, Suite 1000
      ___________________________               Kansas City, Missouri 64112
                                                Telephone: (816)-983-8000
                                                Facsimile: (816)-983-8080

      C. Entire Agreement. This Agreement constitutes the entire understanding
      between Buyer and Seller with respect to the properties described herein,
      except for those separate agreements referenced herein, to the extent of
      their applicable provisions. This Agreement cannot be amended except in
      writing executed by Buyer and Seller.

      D. Binding Effect. This Agreement will inure to the benefit of and bind
      the respective successors, heirs, legal representatives, legatees and
      assigns of the parties hereto.

      E. Execution. This Agreement has been executed by the parties on the dates
      set forth below their respective signatures.

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      F. Governing Law. This Agreement is to be governed by the laws of the
      state of Delaware, except to the extent the laws of the jurisdiction in
      which the Omaha Parcel and Cary Parcel, respectively, shall otherwise
      apply to issues involving real estate.

      G. Assignment. Neither party may assign its rights and obligations under
      this Agreement, except with consent of the other party.

      H. Severability. If any term or provision of this Agreement shall, to any
      extent, be invalid or unenforceable, the remainder of this Agreement shall
      not be affected thereby and each such term and provision hereof shall be
      valid and enforceable to the fullest extent permitted by law.

      I. Counterparts; Facsimile. This Agreement may be executed in two or more
      counterparts, each of which shall be deemed an original, but together they
      shall constitute one and the same Agreement. This Agreement may be
      executed and delivered by facsimile.

      J. Jurisdiction; Service of Process. Any action or proceeding seeking
      to enforce any provision of, or based on any right arising out of, this
      Agreement shall be brought against any of the parties only in the Courts
      of the State of Delaware or, if it has or can acquire jurisdiction, in the
      United States District Court for the District of Delaware, and each of the
      parties consents to the exclusive jurisdiction of such courts (and of the
      appropriate appellate courts) in any such action or proceeding and waives
      any objection to venue laid therein. Process in any action or proceeding
      referred to in the preceding sentence may be served on any party anywhere
      in the world.

      L. WAIVER OF JURY TRIAL. EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT
      ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR ANY OF THE
      TRANSACTION AGREEMENTS IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
      ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY
      RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY
      OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT AND ANY OF THE
      AGREEMENTS DELIVERED IN CONNECTION HEREWITH (INCLUDING, WITHOUT
      LIMITATION, THE TRANSACTION AGREEMENTS) OR THE TRANSACTIONS CONTEMPLATED
      HEREBY OR THEREBY. EACH PARTY HERETO CERTIFIES AND ACKNOWLEDGES THAT (1)
      NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
      EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
      LITIGATION, SEEK TO ENFORCE SUCH WAIVERS, (2) IT UNDERSTANDS AND HAS
      CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS, (3) IT MAKES SUCH WAIVERS
      VOLUNTARILY AND (4) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
      AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
      13.K.

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      IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be
effective as of the date first set forth above.

SELLER                                   BUYER

By: ______________________________       By: ______________________________

Name: ____________________________       Name: ____________________________

Title: ___________________________       Title: ___________________________

Date: ____________________________       Date: ____________________________

HAMMONS

By: ______________________________

Name: ____________________________

Title: ___________________________

Date: ____________________________

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<PAGE>

                                    EXHIBIT A

                         OMAHA PARCEL LEGAL DESCRIPTION

Lots 5 through 8, inclusive, Block 134, Original City of Omaha, as surveyed,
platted and recorded in Omaha, Douglas County, Nebraska, together with (i) all
improvements constructed or located on the land, (ii) all easements, reciprocal
operating and easement agreements and other rights benefiting or appurtenant to
the land and any right, title, or interest of Seller in and to adjacent or
contiguous strips, gores, streets, alleys, or rights-of-way, any reversionary
rights attributable to the land, and (iii) any right, title and interest in and
to that certain Redevelopment Agreement that was approved by the City of Omaha
by Ordinance No. 35581, to the extent the same is assignable.

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                                    EXHIBIT B

                          CARY PARCEL LEGAL DESCRIPTION

All of Tract No. 6, consisting of 9.0282 acres, more or less, as shown on a plat
by Bass, Nixon & Kennedy, Inc., G. Scott Wilson, Registered Land Surveyor,
entitled "SUBDIVISION PLAT PROPERTY OF SAS INSTITUTE INC.," dated October 19,
1995, and recorded in Wake County, North Carolina Registry in book of Maps 1996,
Page 476, reference being made to said plat for a more complete description.

                                       10<PAGE>

                                                                    EXHIBIT 10.4

                         CHATEAU DISTRIBUTION AGREEMENT

                                  BY AND AMONG

                              JQH ACQUISITION LLC,

                             JQH MERGER CORPORATION,

                               ATRIUM HOTELS, LLC,

                          JOHN Q. HAMMONS HOTELS, L.P.,

                        JOHN Q. HAMMONS HOTELS TWO, L.P.,

     JOHN Q. HAMMONS, AS TRUSTEE OF THE REVOCABLE TRUST OF JOHN Q. HAMMONS,
                DATED DECEMBER 28, 1989, AS AMENDED AND RESTATED

                                       AND

                                CHATEAU LAKE, LLC

                        Dated as of ______________, 2005

<PAGE>

                         CHATEAU DISTRIBUTION AGREEMENT

      THIS CHATEAU DISTRIBUTION AGREEMENT ("Agreement") is made as of
___________, 2005, by and among JQH Acquisition LLC, a Delaware limited
liability company ("Parent"), JQH Merger Corporation, a Delaware corporation
("Merger Sub"), Atrium GP, LLC, a Delaware limited liability company ("Atrium"),
John Q. Hammons Hotels, L.P., a Delaware limited partnership ("JQH LP"), John Q.
Hammons Hotels Two, L.P., a Delaware limited partnership ("Hotels Two"), John Q.
Hammons, as Trustee of the Revocable Trust of John Q. Hammons, dated December
28, 1989, as amended and restated ("JQH Trust"), and Chateau Lake, LLC, a
Missouri limited liability company ("Chateau Lake").

      WHEREAS, in connection with the Amended and Restated Transaction
Agreement, dated as of June 14, 2005, by and among John Q. Hammons ("JQH"), JQH
Trust, Hammons, Inc., a Missouri corporation, JD Holdings, LLC ("JDH") and
Parent, the parties hereto desire that Hotels Two, the sole member of Chateau
Lake, convey to JQH Trust all of the limited liability company interests in
Chateau Lake held by Hotels Two, constituting 100% of the membership interests
in Chateau Lake (the "LLC Interests"), in exchange for the cancellation of
certain limited partnership interests in JQH LP held by JQH Trust;

      WHEREAS, the LLC Interests shall be transferred as soon as practicable
after the effective date of the proposed merger (the "Proposed Merger") of
Merger Sub and John Q. Hammons Hotels, Inc., a Delaware corporation ("JQH,
Inc.");

      WHEREAS, Hotels Two and Chateau Lake are subject to that certain
Indenture, dated as of May 21, 2002, among JQH LP, John Q. Hammons Hotels
Finance Corporation III, a Missouri corporation, and Wachovia Bank, National
Association (the "Trustee"), governing the outstanding mortgage bonds of JQH LP
(the "Indenture"); and

      WHEREAS, Chateau Lake is the owner of that certain leasehold in real
property known as Chateau on the Lake Resort and Convention Center, located at
415 North State Highway 265, Branson, Taney County, Missouri (the "Property"),
encumbered by that certain loan from Bear Stearns Commercial Mortgage Inc., a
New York corporation ("Lender"), to Chateau Lake (the "Loan"), secured by, among
other things, that certain Amended and Restated Leasehold Deed of Trust,
Security Agreement and Fixture Filing dated January 6, 2005, granted by Chateau
Lake and JQH for the benefit of the Lender (the "Security Instrument") and
evidenced by that certain Promissory Note in the original principal amount of
$31,000,000, dated as of January 7, 2005, made by Chateau Lake to the order of
Lender (the "Note").

      NOW, THEREFORE, in consideration of the mutual covenants herein contained
and for other good and valuable consideration given and received by each party,
receipt of which is hereby acknowledged, the parties hereto agree as follows.

<PAGE>

                                   ARTICLE I
                            THE CHATEAU LAKE TRANSFER

      1.1 Transfer. Subject to the terms and conditions of this Agreement, at
the Closing (as defined below), Parent shall cause Hotels Two to transfer the
LLC Interests to JQH Trust.

      1.2 Consideration. In consideration for (a) the transfer of the LLC
Interests to JQH Trust and (b) the distribution of certain assets and related
liabilities by JQH, Inc. and JQH LP to JQH Hotels Management, LLC, a Delaware
limited liability company ("JQHHM"), as set forth in that certain Management
Assets and Obligations Distribution Agreement, dated as of the date hereof,
among Parent, JQH, Inc., JQH LP and JQHHM, limited partnership interests of JQH
LP owned by JQH Trust will be transferred by JQH Trust to JQH LP and canceled in
an amount equal to the total number of limited partnership interests of JQH LP
owned by JQH Trust multiplied by a fraction, the numerator of which is 20 and
the denominator of which is 348 (the "Canceled LP Interests").

      1.3 Closing. The transfer provided for in this Agreement (the "Closing")
will take place at the offices of Kaye Scholer LLP, 425 Park Avenue, New York,
New York 10022, immediately following the satisfaction or waiver of each of the
conditions set forth in Article II hereof, or at such other time and place as
may be agreed to by the parties hereto. Such time and date are referred to in
this Agreement as the "Closing Date."

      1.4 Closing Obligations. At the Closing (a) Hotels Two shall execute and
deliver to JQH Trust a membership interest assignment pursuant to which Hotels
Two shall assign the LLC Interests to JQH Trust, (b) JQH Trust shall execute and
deliver to JQH LP a partnership interest assignment pursuant to which JQH Trust
shall transfer to JQH LP the Canceled LP Interests for cancellation, (c) JQH LP
shall cancel the Canceled LP Interests, which shall cease to be issued and
outstanding and (d) JQH Trust shall assume Chateau Lake's existing debt
obligations.

                                   ARTICLE II
                              CONDITIONS TO CLOSING

      2.1 General Conditions. The obligations of the parties to effect the
Closing shall be subject to the following conditions unless waived in writing by
the parties:

            (a) The Proposed Merger shall have been consummated.

            (b) Since June 14, 2005, there must not have been commenced, or
      threatened specifically in writing from a source all parties to this
      Agreement reasonably deem credible, any action or legal proceeding by an
      unaffiliated third party (i) involving any challenge to, or seeking
      damages or other relief in connection with, any of the transactions
      contemplated by this Agreement, or (ii) that may have the effect of
      preventing, delaying, making illegal or otherwise interfering with any of
      the transactions contemplated by this Agreement.

<PAGE>

      2.2 Conditions Precedent to Obligation of Parent, Merger Sub, Hotels Two
and Chateau Lake. Parent's, Merger Sub's, Hotels Two's and Chateau Lake's
obligation to consummate the transactions contemplated by this Agreement is
subject to the satisfaction on or prior to the Closing Date of each condition
precedent listed below, any of which may be waived by Parent, Merger Sub, Hotels
Two and Chateau Lake:

            (a) All of JQH Trust's representations and warranties in this
      Agreement must have been accurate in all material respects as of the date
      of this Agreement and must be accurate in all material respects as of the
      Closing Date as if made on the Closing Date.

            (b) All of the covenants and obligations that JQH Trust is required
      to perform or to comply with pursuant to this Agreement at or prior to the
      Closing must have been duly performed and complied with in all material
      respects.

      2.3 Conditions Precedent to Obligation of JQH Trust. JQH Trust's
obligation to consummate the transactions contemplated by this Agreement is
subject to the satisfaction on or prior to the Closing Date of each condition
precedent listed below, any of which may be waived by JQH Trust:

            (a) All of Parent's and Merger Sub's representations and warranties
      in this Agreement must have been accurate in all material respects as of
      the date of this Agreement and must be accurate in all material respects
      as of the Closing Date as if made on the Closing Date.

            (b) All of the covenants and obligations that Parent, Merger Sub,
      Hotels Two, JQH LP and Chateau Lake are required to perform or to comply
      with pursuant to this Agreement at or prior to the Closing must have been
      duly performed and complied with in all material respects.

                                  ARTICLE III
                                   COVENANTS

      3.1 Delivery of Officers' Certificate and Appraisal Report. On or prior to
the Closing Date, JQH LP shall deliver, and Parent and Merger Sub shall cause
JQH LP to deliver, to the Trustee an officers' certificate in accordance with
the terms and conditions of the Indenture stating that the transactions
contemplated by this Agreement are permitted under the terms of the Indenture
and setting forth the basis upon which the fair market value of the LLC
Interests was computed, which shall be primarily based upon the Appraisal Report
of HVS International dated December 7, 2004 to be submitted to the Trustee with
such officers' certificate.

      3.2 Alternative Transfer Option. In the event the transactions
contemplated by this Agreement cannot be effectuated as described herein, the
parties hereto agree to pursue any other commercially reasonable alternative
course of action to transfer the LLC Interests to JQH Trust that may be
permitted under the Indenture, the Security Instrument, the Loan, the
organizational documents of the relevant parties and any other document
requiring consent or restricting the transfer of the LLC Interests.

<PAGE>

      3.3 Commercially Reasonable Efforts. Each of the parties hereto shall use
their respective commercially reasonable efforts to take or cause to be taken
all appropriate action, do or cause to be done all things necessary, proper or
advisable, and execute and deliver such documents and other papers, as may be
required to satisfy the conditions to Closing set forth in Article II hereof
prior to the effective date of the Proposed Merger and otherwise carry out the
provisions of this Agreement and consummate and make effective the transactions
contemplated by this Agreement, when possible in a manner intended to mitigate
the income tax liabilities of the parties.

      3.4 Sub-Lease of the Property. In the event that the transactions
contemplated by this Agreement have not been consummated within three (3) months
from the effective date of the Proposed Merger, at the election of JQH Trust, in
its sole and absolute discretion, the parties hereto agree that the Ground Lease
Agreement by and between JQH Trust and Chateau Lake, dated February 27, 1996, as
amended (the "Ground Lease") shall be subleased to a JQH Trust affiliate (the
"Sublease") under a triple net lease with no additional rent payable until the
termination of the Indenture and/or the conditions to Closing set forth in
Article II are satisfied, at which time the transactions contemplated hereby
shall be consummated; provided, that any such Sublease does not violate the
Indenture, the Loan, the Security Instrument or any other material contract to
which any of Chateau Lake, JQH LP or Hotels Two is a party or by which any of
them or any of their respective assets are bound. The terms and conditions of
any such Sublease shall be structured to transfer the economic and legal
incidents of owning the LLC Interests to JQH Trust; provided, that (a) the
Sublease shall permit Chateau Lake to (i) directly make all required payments of
principal and interest on the Loan and to pay its other debt service
obligations, and (ii) reserve up to 5% of its gross revenue as a general capital
reserve, and (b) JQH Trust shall reimburse Chateau Lake for all of its
out-of-pocket costs and expenses (excluding those costs and expenses set forth
in Sections 3.6 and 6.2) incurred in connection with the Ground Lease and the
Property.

      3.5 Net Working Capital Adjustment.

            (a) Net Working Capital Schedule. As soon as practicable but in no
      event later than 30 days after the Closing Date, JQH Trust shall prepare
      and deliver to Parent an unaudited balance sheet (the "Closing Balance
      Sheet") of Chateau Lake as of the close of business on the Closing Date.
      The Closing Balance Sheet shall be prepared in accordance with U.S.
      generally accepted accounting principles ("GAAP") and consistent with
      Chateau Lake's past practices. Simultaneously with the delivery of the
      Closing Balance Sheet, JQH Trust shall also prepare and deliver to Parent
      a schedule (the "Net Working Capital Schedule") setting forth JQH Trust's
      calculation of Net Working Capital (as defined below) as of the Closing
      Date derived from the Closing Balance Sheet, together with related
      supporting schedules, calculations and documentation. As used herein, "Net
      Working Capital" means the excess of (i) all of the Current Assets (as
      defined below) of Chateau Lake, over (ii) all of the Current Liabilities
      (as defined below) of Chateau Lake. As used herein "Current Assets" means
      (i) all of the current assets of Chateau Lake, which shall include the
      assets that would be classified as current assets under GAAP, and (ii) the

<PAGE>

      amount of the FF&E Reserve set forth on the Closing Balance Sheet. As used
      herein, "Current Liabilities" means all of the current liabilities of
      Chateau Lake, which shall include the liabilities that would be classified
      as current liabilities under GAAP, but excluding the current portion of
      long-term debt.

            (b) Dispute. Within 30 days following receipt by Parent of the Net
      Working Capital Schedule, Parent shall deliver written notice (the "Notice
      of Disagreement") to JQH Trust of any dispute Parent has with respect to
      the preparation or content of the Net Working Capital Schedule. The Notice
      of Disagreement must describe in reasonable detail the items contained in
      the Net Working Capital Schedule that Parent disputes and the basis for
      any such disputes. If Parent does not notify JQH Trust of a dispute with
      respect to the Net Working Capital Schedule within such 30-day period,
      such Net Working Capital Schedule will be final, conclusive and binding on
      the parties. In the event a Notice of Disagreement is delivered to JQH
      Trust, Parent and JQH Trust shall negotiate in good faith to resolve such
      dispute. If Parent and JQH Trust, notwithstanding such good faith effort,
      fail to resolve such dispute within 14 days after Parent delivers a Notice
      of Disagreement, then Parent and JQH Trust jointly shall engage a "Big
      Four" accounting firm (the "Accountants") to resolve such dispute. Parent
      and JQH Trust shall use reasonable efforts to cause the Accountants to
      render a written decision resolving the matters submitted to the
      Accountants within 30 days of the making of such submission. Parent and
      JQH Trust shall share equally the fees and expenses of the Accountants.
      All determinations made by the Accountants will be final, conclusive and
      binding on the parties. Any final, conclusive and binding resolution of
      the Net Working Capital set forth on the Net Working Capital Schedule made
      pursuant to this Section 3.5(b) is referred to herein as the "Final Net
      Working Capital."

            (c) Payment. Within 10 days of the determination of the Final Net
      Working Capital, (i) if the Final Net Working Capital is less than $0
      ("Target Net Working Capital"), then Parent shall pay to JQH Trust an
      amount in cash equal to the excess of the Target Net Working Capital over
      the Final Net Working Capital, and (ii) if the Final Net Working Capital
      is greater than the Target Net Working Capital, then JQH Trust shall pay
      to Parent an amount in cash equal to the excess of the Final Working
      Capital over the Target Net Working Capital.

      3.6 Expenses. Parent and JQH Trust shall share equally the amount of all
closing costs and expenses associated with the transactions contemplated by this
Agreement, including, without limitation, all (a) sales, use, transfer and
documentary taxes, (b) recording and filing fees, (c) mortgage transfer or
assumption fees, (d) title policy costs and (e) title insurance costs.

                                   ARTICLE IV
                   REPRESENTATIONS AND WARRANTIES OF JQH TRUST

      JQH Trust hereby represents and warrants as follows:

<PAGE>

      4.1 Organization and Authority. JQH Trust is validly existing under the
laws of JQH Trust's jurisdiction of creation, and the trustee executing this
Agreement on behalf of JQH Trust has all requisite trust power and authority to
execute and deliver this Agreement and to consummate the transactions
contemplated by this Agreement. This Agreement has been duly authorized by all
necessary trust action of JQH Trust, and this Agreement constitutes a valid and
legally binding obligation of JQH Trust, enforceable against JQH Trust in
accordance with its terms.

      4.2 No Material Violation. The execution and delivery by JQH Trust of this
Agreement and the other agreements contemplated by this Agreement to be entered
into by JQH Trust at Closing do not, and the consummation of the transactions
contemplated hereby and thereby and compliance with the terms hereof and thereof
will not (a) conflict with, or result in any material violation of or default
(or an event which, with notice or lapse of time or both, would constitute a
default) under (i) any provision of the organizational documents of JQH Trust,
or (ii) any order or law applicable to JQH Trust or the property or assets of
JQH Trust or (b) give rise to any right of termination, cancellation or
acceleration under, or result in the creation of any lien, mortgage, pledge,
security interest, claim or other type of charge or encumbrance of any kind
("Lien") upon any of the properties of JQH Trust under, any material contract to
which JQH Trust is a party or by which it or any assets of it may be bound. No
consent or approval is required to be obtained or made by or with respect to JQH
Trust in connection with the consummation of the transactions contemplated
hereby, other than the consent of the Lender that may be required under the
Security Instrument and the Note. Immediately prior to the effective time of the
Merger, the transactions contemplated by this Agreement will not result in a
violation of or default (or an event which, with notice or lapse of time or
both, would constitute a default) under the Indenture.

      4.3 Title. JQH Trust is the record owner of 14,597,706 limited partnership
interests in JQH LP and the beneficial owner of all of the limited partnership
interests in JQH LP to be canceled pursuant to the terms of this Agreement.
Hammons, Inc. is the record owner of 1,446,194 limited partnership interests in
JQH LP. The Canceled LP Interests will be free and clear of all Liens as of the
Closing.

      4.4 Restricted Payments. JQH LP has not, and as of the effective date of
the Proposed Merger will not have, made any Restricted Payments (as defined in
the Indenture) in reliance on Section 4.07(b)(5) of the Indenture.

                                   ARTICLE V
             REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB

      Each of Parent and Merger Sub hereby jointly and severally represents and
warrants as follows:

      5.1 Organization and Authority. Parent is a limited liability company duly
organized and validly existing in good standing under the laws of the State of
Delaware. Merger Sub is a corporation duly organized and validly existing in
good standing under the laws of the State of Delaware. Each of Parent and Merger
Sub has all requisite

<PAGE>

limited liability company or corporate (as the case may be) power and authority
to execute and deliver this Agreement and to consummate the transactions
contemplated by this Agreement. This Agreement has been duly authorized by all
necessary limited liability company or corporate, as the case may be, action of
Parent and Merger Sub, and this Agreement constitutes a valid and legally
binding obligation of each of Parent and Merger Sub, enforceable against Parent
and Merger Sub in accordance with its terms.

                                   ARTICLE VI
                               GENERAL PROVISIONS

      6.1 Amendment; Termination. This Agreement may only be amended or
terminated by written consent of all the parties hereto.

      6.2 Expenses. Except as set forth in Sections 3.4 and 3.6, all fees,
commissions and other expenses incurred by the parties in connection with the
negotiation of this Agreement and in preparing to consummate the transactions
contemplated hereby, including the fees and expenses of their respective counsel
and other advisors, will be borne by the party incurring such fee, commission or
expense.

      6.3 Execution in Counterparts. This Agreement may be executed in two or
more counterparts, each of which will be deemed an original and all of which
together will be considered one and the same agreement.

      6.4 Governing Law. This Agreement will be governed by the laws of the
State of Delaware, without regard to conflicts of laws principles.

      6.5 Notices. Any notices or other communications required or permitted
under this Agreement must be given in writing and shall be deemed to have been
duly given if delivered (i) by hand (including by reputable overnight courier),
(ii) by mail (certified mail, return receipt requested) or (iii) by telecopy
facsimile transmission (receipt of which is confirmed):

            If to JQH Trust:

                  John Q. Hammons
                  300 John Q. Hammons Parkway,
                  Suite 900
                  Springfield, Missouri 65806
                  Telephone: (417) 873-3595
                  Facsimile: (417) 873-3511

            with a copy to (which shall not constitute notice):

                  Blackwell Sanders Peper Martin LLP
                  4801 Main Street, Suite 1000
                  Kansas City, Missouri 64112
                  Attn: Gary D. Gilson, Esq. and
                        David C. Agee, Esq.
                  Telephone: (816) 983-8000

<PAGE>

                  Facsimile: (816) 983-8080

            If to Parent, Merger Sub, Atrium, JQH LP, Hotels Two or Chateau
      Lake:

                  JQH Acquisition LLC
                  Carnegie Hall Tower
                  152 West 57th Street, 56th Floor
                  New York, New York  10019
                  Attn: Jonathan D. Eilian
                  Telephone: (212) 884-8827
                  Facsimile: (212) 884-8753

            with a copy to (which shall not constitute notice):

                  Kaye Scholer LLC
                  Three First National Plaza
                  41st Floor
                  70 West Madison Street
                  Chicago, Illinois 60602-4231
                  Attn: Gary R. Silverman, Esq.
                  Telephone: (312) 583-2530
                  Facsimile: (312) 583-2330

Any party may change the person or address for service upon it or delivery of
notices or other communications to it under this Agreement by delivering notice
of such change to the other party in accordance with this Section 6.5.

      6.6 Titles and Headings. Titles and headings to Articles and Sections
herein are inserted for convenience of reference only and are not intended to be
a part of or to affect the meaning or interpretation of this Agreement.

      6.7 Assignment and Modification. No party hereto may assign their rights
or obligations hereunder without the prior written consent of the other parties.
This Agreement may be amended, modified or supplemented only by a written
instrument executed by each of the parties hereto. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors, permitted assigns, legal representatives, heirs and legatees.

      6.8 Waiver. The waiver by any party hereto of a breach of any provision of
this Agreement will not operate or be construed as a waiver of any subsequent
breach, whether or not similar.

      6.9 Severability. This Agreement will be deemed severable and the
invalidity or unenforceability of any term or provision hereof will not affect
the validity or enforceability of this Agreement or of any other term or
provision hereof.

      6.10 Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY
CONTROVERSY WHICH MAY ARISE UNDER THIS

<PAGE>

AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE
IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT AND ANY OF THE AGREEMENTS DELIVERED IN CONNECTION
HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY
CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE SUCH WAIVER, (B) IT UNDERSTANDS
AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVER, (C) IT MAKES SUCH WAIVER
VOLUNTARILY AND (D) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATION IN THIS SECTION 6.10.

      6.11 Jurisdiction; Service of Process. Any action or proceeding seeking to
enforce any provision of, or based on any right arising out of, this Agreement
shall be brought against any of the parties only in the Courts of the State of
Delaware or, if it has or can acquire jurisdiction, in the United States
District Court for the District of Delaware, and each of the parties consents to
the exclusive jurisdiction of such courts (and of the appropriate appellate
courts) in any such action or proceeding and waives any objection to venue laid
therein. Process in any action or proceeding referred to in the preceding
sentence may be served on any party anywhere in the world.

                            [SIGNATURE PAGES FOLLOW]

<PAGE>

      IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement, or caused this Agreement to be duly executed and delivered on their
behalf, as of the date first above written.

                                         JOHN Q. HAMMONS, AS TRUSTEE OF THE
                                         REVOCABLE TRUST OF JOHN Q. HAMMONS,
                                         DATED DECEMBER 28, 1989, AS AMENDED
                                         AND RESTATED

                                         By:___________________________________
                                         Name: John Q. Hammons
                                         Title: Trustee

                                         JOHN Q. HAMMONS HOTELS, L.P., a
                                         Delaware limited partnership

                                         By: JOHN Q. HAMMONS HOTELS,
                                             INC., a Delaware corporation

                                         By:___________________________________
                                         Name:_________________________________
                                         Title:________________________________

<PAGE>

                                         JOHN Q. HAMMONS HOTELS TWO, L.P., a
                                         Delaware limited partnership

                                         By: JOHN Q. HAMMONS HOTELS, L.P., a
                                             Delaware limited partnership

                                             By: JOHN Q. HAMMONS
                                                 HOTELS, INC., a Delaware
                                                 corporation

                                         By:___________________________________
                                         Name:_________________________________
                                         Title:________________________________

                                         JQH ACQUISITION LLC, a Delaware
                                         limited liability company

                                         By:___________________________________
                                         Name:_________________________________
                                         Title:________________________________

                                         JQH MERGER CORPORATION, a Delaware
                                         corporation

                                         By:___________________________________
                                         Name:_________________________________
                                         Title:________________________________

                                         ATRIUM HOTELS, LLC, a Delaware limited
                                         liability company

                                         By:___________________________________
                                         Name:_________________________________
                                         Title:________________________________

<PAGE>
\
                                         CHATEAU LAKE, LLC, a Missouri limited
                                         liability company

                                         By: JOHN Q. HAMMONS HOTELS
                                             TWO, L.P., a Delaware limited
                                             partnership

                                             By: JOHN Q. HAMMONS
                                                 HOTELS, L.P., a Delaware
                                                 limited partnership

                                                 By: JOHN Q. HAMMONS HOTELS,
                                                     INC., a Delaware
                                                     corporation

                                         By:___________________________________
                                         Name:_________________________________
                                         Title:________________________________

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