Document:

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                                                                 EXHIBIT 10(iii)
                              PAGELAB NETWORK, INC.

                              EMPLOYMENT AGREEMENT

This Employment Agreement is made this 30th day of October, 1999 by and between
PAGELAB NETWORK, INC., a Minnesota corporation (hereinafter the "Company") and
ANDREW DEAN HYDER, a Minnesota resident (hereinafter "Mr. Hyder" or "Employee").

         WHEREAS, Employee possesses certain unique skills, talents, contacts,
judgement and knowledge of development of software technology, web and Internet
applications and operations; and

         WHEREAS, in order to avail itself of these unique qualities possessed
by the Employee, the Company desires to employ the Employee according to the
terms and conditions of this Agreement; and

         WHEREAS, The Employee desires to be assured of a secure tenure with the
Company, duties and responsibilities commensurate with Employee's education,
experience, background and salary, bonus, incentive compensation and other
benefits and perquisites at levels that reflect the Employee's anticipated
future contributions to the Company;

         NOW, THEREFORE, in consideration of the premises and mutual covenants
hereinafter set forth, the Employee and Company agree as follows:

         1.   EMPLOYMENT AND DUTIES. Mr. Hyder is hereby employed as President
              and Chief Executive Officer of the Company. Mr. Hyder shall
              perform such duties and services consistent with his position,
              including, but not limited to, executive, administrative, software
              program development, supervisory or other services that the
              Company may specify from time to time and be subject to direction
              and control of the Company's Board of Directors. In furtherance of
              the foregoing, Mr. Hyder hereby agrees to devote his best skill,
              efforts and capabilities to the aforesaid duties and
              responsibilities and other reasonable duties and responsibilities
              assigned to him from time to time consistent with the Employee's
              position as President and Chief Executive Officer.

         2.   TERM. The term of Mr. Hyder's employment under this Agreement
              shall commence on the date above written and shall continue until
              the fifth (5th) anniversary of the date of this Agreement unless
              sooner terminated pursuant to Paragraph 8 herein ("Initial Term").
              Following the expiration of the Initial Term, Mr. Hyder's
              employment hereunder shall be automatically extended for
              additional one (1) year periods ("Renewal Terms") unless either
              party shall notify the other party in writing ninety (90) days
              prior to the expiration of the Initial Term or any Renewal Term of
              such party's intention not to extend the term of this Agreement.

         3.   COMPENSATION. During the Initial Term and any Renewal Terms
              hereunder, the Company shall pay Mr. Hyder at the annual rate of
              not less than Sixty Thousand and No/100 Dollars ($60,000) or such
              higher annual rate as may from time to time be approved by the
              Board of Directors of the Company; such salary to be paid in
              substantially equal regular periodic payments in accordance with
              the Company's regular payroll practices.

         4.   BONUS. During the Initial Term and any Renewal Term hereunder Mr.
              Hyder shall be entitled to an annual bonus calculated and payable
              as set forth in Exhibit A attached hereto and made a part hereof.
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         5.   OTHER BENEFITS. During the Initial Term and any Renewal Term
              hereunder the Company shall provide Employee with the following
              benefits:

                A.  VACATION - For the 2000 calendar year and each subsequent
                    calendar year that begins during the Initial Term or any
                    Renewal Term hereunder Mr. Hyder shall be entitled to four
                    (4) weeks paid vacation. Employee consistent with his duties
                    and obligations shall reasonably determine the time or times
                    at which such vacation is to be taken under this Agreement.
                    The Company encourages all employees to take vacation on a
                    current basis. Accordingly, any vacation days with respect
                    to a calendar year that are unused as of the last day of
                    such calendar year shall be carried forward and accrue, to a
                    maximum of four weeks.

                B.  LIFE INSURANCE - The Company shall purchase a life insurance
                    policy on the life of Mr. Hyder in the amount of One Million
                    and No/100 Dollars ($1,000,000). The Company shall be the
                    owner of the policy and shall be the beneficiary of Five
                    Hundred Thousand and No/100 Dollars ($500,000) and the
                    Employee may designate the beneficiary of the balance. The
                    Board of Directors shall have discretion to increase the
                    amount of this insurance on terms identical to this initial
                    amount.

                C.  FRINGE BENEFITS - The Company shall provide such fringe
                    benefits as are customary for the office of President and
                    CEO including, but not limited to group medical, dental,
                    life and disability insurance, automobile allowance or
                    vehicle. Benefits will also include full participation in
                    any employee stock option and stock bonus award program,
                    matching employee savings program and pension programs,
                    which may be adopted by the Board of Directors and approved
                    by the Shareholders.

                D.  TRAVEL - The duties of President & CEO often require
                    accompanying travel by the Employee's spouse. During the
                    Initial Term and each Renewal Term hereunder, Mr. Hyder is
                    authorized to airline tickets and related expenses for his
                    spouse for Three (3) trips in business or first class. Any
                    trips beyond Three (3) in any year shall be submitted to the
                    Chairman of the Board of Directors for approval.

         6.   EXPENSE REIMBURSEMENT. During the Initial Term and any Renewal
              Term hereunder, the Company shall reimburse Mr. Hyder for all
              reasonable and necessary expenses incurred or paid by the Employee
              in carrying out his duties under this Agreement. The Employee
              shall present to the Company from time to time an itemized account
              of such expenses in a form and with receipts to enable the Company
              to audit such accounts.

         7.   CONFIDENTIALITY OF COMPANY INFORMATION. Except as permitted or
              directed by The Company's Board of Directors during the term of
              Mr. Hyder's employment hereunder, or at any time thereafter, he
              shall not divulge, furnish or make accessible to anyone or use in
              any way (other than in the ordinary course of the business of the
              Company) any confidential information, trade secret or proprietary
              information of the Company which he may have, acquire or become
              acquainted with during the period of his employment, whether
              developed by him or by others. Mr. Hyder acknowledges that the
              above described knowledge or information constitutes a unique and
              valuable asset of the Company and that any disclosure or other use
              of same would be wrongful and would cause irreparable harm to the
              Company. Mr. Hyder agrees to refrain from any acts or omissions
              that would reduce the value of such knowledge or information to
              the Company. The foregoing obligations of confidentiality shall
              not apply to any knowledge or information which is now published
              or subsequently becomes publicly known, other than as a direct or
              indirect breach of this Agreement or breach of a confidentiality
              obligation owed to the Company by a third party. Employee agrees
              that it would be difficult to compensate the Company for damages
              for any violation of this Agreement. Accordingly, Employee
              specifically agrees that the Company shall be entitled to
              temporary and permanent injunctive relief to enforce the
              provisions of this Agreement and that such relief may be granted
              without the necessity of proving

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              actual damages. This provision with respect to injunctive relief
              shall not, however, diminish the right of the Company to claim and
              recover damages in addition to injunctive relief. This paragraph 7
              shall survive the termination of this Agreement and Mr. Hyder's
              employment.

         8.   CONTRACT CONFIDENTIALITY. Mr. Hyder and the Company are hereby
              restrained from discussing any provisions of this Agreement with
              any person(s) not a party to this Agreement, except to the extent
              necessary and required to meet full disclosure requirements of the
              Securities and Exchange Commission or otherwise required by law or
              appropriate authority.

         9.   TERMINATION. Notwithstanding any contrary provisions herein
              contained, the employment of Mr. Hyder pursuant to this Agreement
              shall be terminated prior to the expiration of the Initial Term or
              any Renewal Term hereof as specified in the following provisions
              provided, however, such termination shall not affect his
              obligations under Paragraph 7 hereof:

                A.  DEATH - Mr. Hyder's employment hereunder shall be terminated
                    forthwith in the event of his death.

                B.  SICKNESS OR DISABILITY - In the event that Employee is
                    unable to perform his duties hereunder for a continuous
                    period of six (6) months or more due to sickness or
                    disability, either party shall have the right to terminate
                    Employee's employment hereunder forthwith.

                C.  BY COMPANY, FOR CAUSE - The Company may terminate Employee
                    "for cause" following thirty (30 days written notice
                    specifying the nature of such cause and providing Employee
                    thirty (30) days from the date of such notice to cure the
                    stated cause or deficiency. For purposes of this Agreement
                    the term "for cause" shall be defined as gross negligence,
                    gross misconduct, or willful malfeasance in connection with
                    Employees duties hereunder.

                D.  BY COMPANY, WITHOUT CAUSE - The Company may terminate
                    Employee hereunder without cause after the expiration of the
                    initial five (5) year period of the Initial Term hereof by
                    providing Employee ninety (90) day's advance written notice.
                    The Company shall be liable to the Employee for severance
                    compensation of not less than three (3) years base salary
                    and benefits, as well as immediate vesting of all options
                    previously extended, plus full participation in any pension
                    and matching employee savings plan for the three year
                    severance period. Employee shall also be entitled to all
                    bonus payments during the severance period, as defined in
                    Exhibit A. Severance compensation may be paid in either a
                    lump sum or over the three year period, as agreed upon at
                    the time of termination.

                E.  BY EMPLOYEE - Mr. Hyder may terminate his employment
                    hereunder voluntarily by providing the Company with ninety
                    (90) days written notice.

                F.  CESSATION OF BUSINESS - Employee's employment hereunder
                    shall terminate and all obligations and covenants of the
                    Company and Employee hereunder shall terminate in the event
                    the Company shall cease doing business for any reason.

         10.  NON-COMPETITION. In the event Mr. Hyder is terminated "for cause"
              (as herein defined) or voluntarily elects to terminate his
              employment with the Company during the Initial Term or any Renewal
              Term hereunder, he shall not, for a period of one (1) year from
              such termination, compete directly or indirectly with the Company
              or for customers of the Company by rendering services to any
              organization, whether a sole proprietorship, corporation,
              partnership or other entity which is in a business similar to or
              in competition with the business of the Company. In the event the
              Company elects not to renew the Initial Term or additional Renewal
              Terms hereunder, Mr. Hyder shall not compete with the Company for
              any customer of the Company in existence at the time of such
              termination for a period of six (6) months from the date of such
              termination.

         11.  SEVERABLE PROVISIONS. Each provision of this Agreement is intended
              to be severable. If any provision hereof is illegal or invalid for
              any reason, such illegality or invalidity shall not affect the
              validity of the remainder of this Agreement.
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         12.  ASSIGNMENT. No assignment of this Agreement or of any right
              accruing under this Agreement shall be made, in whole or in part,
              by Mr. Hyder without the written consent of the Company.

         13.  ENTIRE AGREEMENT. This Agreement contains the entire understanding
              of the parties hereto with respect to the transactions
              contemplated hereby and supersedes all prior agreements and
              understandings between the parties with respect to such subject
              matter.

         14.  MODIFICATION. This Agreement may be modified by the parties hereto
              by written Supplemental Agreement.

         15.  NOTICES. All notices, objections, demands, or other communications
              required or permitted to be given or served under this Agreement
              shall be in writing and shall be deemed to be duly given and
              delivered in person or deposited in the United States mail,
              postage prepaid, for mailing by certified or registered mail,
              return receipt requested, as follows:

                A.  EMPLOYEE - In the case of Mr. Hyder, to his last address as
                    shown on the records of the Company; or

                B.  COMPANY - In the case of the Company, to its registered
                    office in the State of Minnesota.

         16.  MINNESOTA LAW. This Agreement shall be construed and enforced in
              accordance with the laws of the State of Minnesota with venue in
              Hennepin County.

IN WITNESS WHEREOF, the parties have hereunto set their hands on the date above
written.

PAGELAB NETWORK, INC.

BY: _______________________________________
ITS: CHAIRMAN

EMPLOYEE

BY: _______________________________
    ANDREW DEAN HYDER

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                                    EXHIBIT A

                                BONUS CALCULATION

              During the Initial Term and any Renewal Term under the Employment
Agreement, beginning with the year 2000, Mr. Hyder shall be entitled to a bonus
equal to Two Percent (2%) of Employer's pre-tax income, as determined for
federal income tax purposes. This bonus shall be payable to Mr. Hyder within
one-hundred-twenty (120) days of the end of Employer's fiscal year.<PAGE>   1
                                                                 Exhibit 10.25.1

                        FIRST AMENDMENT TO LOAN AGREEMENT

         THIS FIRST AMENDMENT TO LOAN AGREEMENT (this "First Amendment") is made
as of the 15th day of December, 2000, by INTERSTATE PITTSBURGH HOTEL HOLDINGS,
L.L.C., a Delaware limited liability company (the "Borrower") and PNC BANK,
NATIONAL ASSOCIATION, a national banking association (the "Bank").

                              W I T N E S S E T H:

         WHEREAS, pursuant to the terms of a Loan Agreement dated as of February
14, 2000 by and between Borrower and the Bank (the "Loan Agreement"), the Bank
had agreed to provide a term loan to Borrower in a principal amount not to
exceed SEVEN MILLION FIVE HUNDRED SIXTY THOUSAND AND 00/100 DOLLARS ($7,560,000)
(the "Loan"), as evidenced by a certain Mortgage Note dated as of February 14,
2000, executed and delivered by the Borrower to the Bank, (the "Note") (all
capitalized terms used herein shall have the meanings ascribed thereto in the
Loan Agreement unless defined to the contrary herein); and

         WHEREAS, INTERSTATE HOTELS CORPORATION, a Maryland corporation
("Guarantor") executed and delivered to the Bank a certain Agreement of Guaranty
and Suretyship (Payment) dated as of February 14, 2000 (the "Guaranty") as
security for the Loan; and

         WHEREAS, the Guarantor and the Bank have agreed to make certain
amendments to the Guaranty and have executed and entered into a First Amendment
to and Confirmation of Agreement of Guaranty and Suretyship (Payment), of even
date herewith, in order to modify certain financial covenants with respect to
the Guarantor (the Guaranty as amended by the First Amendment to and
Confirmation of Agreement of Guaranty and Suretyship (Payment) is hereinafter
referred to as the "Amended Guaranty"); and

         WHEREAS, simultaneous with the execution and delivery of the Amended
Guaranty, Borrower and the Bank have agreed to make certain amendments to the
Loan Agreement in order to reflect the provisions of the Amended Guaranty upon
the terms and conditions hereinafter set forth.

         NOW, THEREFORE, the parties hereto, for good and valuable
consideration, the receipt and sufficiency thereof being hereby acknowledged,
and intending to be legally bound hereby, covenant and agree as follows:

         1. The definition of "Debt Multiple Ratio" set forth in Section 1.1 of
the Loan Agreement is hereby deleted in its entirety.

         2. The definition of "EBITDA" set forth in Section 1.1 of the Loan
Agreement is hereby deleted in its entirety and replaced as follows:

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         "EBITDA" shall mean, for any period of determination with respect to
Guarantor, Guarantor's net income after minority interest, plus Guarantors
portion of depreciation and amortization, plus other non-cash losses, plus
Guarantor's portion of Interest Expense or interest income, as the case may be,
plus income taxes, less non-cash gains, as each one of the foregoing is
determined in accordance with GAAP, provided however, that EBITDA shall also
include pro forma adjustments for any tangible or intangible assets acquired
with Indebtedness. Such pro forma adjustments shall utilize the previous twelve
(12) month's Net Operating Income with respect to the asset in the calculation
of the Pro forma Permanent Loan Debt Service Coverage Ratio.

         3. The following definitions are hereby added to Section 1.1 of the
Loan Agreement as follows:

                  "Pro forma Debt Service" shall mean, for any period of
determination the sum of all principal and interest payments that would be
payable over a twelve (12) month period with respect to the Total Debt based
upon a twenty-five (25) year mortgage-style amortization of the Total Debt,
assuming an interest rate per annum (based on a year of twelve equal months)
equal to the greater of (i) two and three-quarters percent (2 3/4%) above the
Treasury Rate or (ii) eight and one-half percent (8 1/2%) per annum.

                  "Pro forma Permanent Loan Debt Service Coverage Ratio" shall
mean the ratio of EBITDA to Pro forma Debt Service.

         4. Section 4.22 (ii) of the Loan Agreement is hereby deleted in its
entirety and the following language is inserted in lieu thereof:

                  (ii) Pro forma Permanent Loan Debt Service Coverage Ratio. The
Pro forma Permanent Loan Debt Service Coverage Ratio with respect to the
Guarantor shall be at least 1.30 to 1.00.

         5. Except as specifically modified herein, the Loan Agreement is hereby
ratified and confirmed and shall remain in full force and effect. The Loan
Agreement as amended by this First Amendment shall continue to be evidenced or
secured by the Loan Documents and nothing contained herein shall affect the
priority of any lien or security interest securing the Note and Loan Agreement
as amended by this First Amendment. All references to the "Loan Agreement"
contained in the Loan Documents shall be deemed to refer to and include the Loan
Agreement as amended by this First Amendment.

         6. This First Amendment is to be construed and enforced in all respects
in accordance with the laws of the Commonwealth of Pennsylvania, without regard
to the principles of conflicts of laws.

         7. This First Amendment is binding upon and shall inure to the benefit
of the parties hereto and their respective successors and assigns.

         8. The Borrower hereby represents and warrants to Bank that, (a) no
Event of Default has occurred and is continuing on the date of execution hereof,
and (b) the Borrower has no set-off claim or other defense with respect to its
obligations under the Loan Agreement or any

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of the Loan Documents and (c) all representations and warranties contained in
the Loan Documents are true and correct and are hereby confirmed.

         9. This First Amendment may be executed in any number of counterparts
each of which, when so executed, shall be deemed an original, but all such
counterparts shall constitute but one and the same instrument.

                               [REMAINDER OF PAGE
                            LEFT INTENTIONALLY BLANK]

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         IN WITNESS WHEREOF, the Bank and Borrower have duly executed this First
Amendment to Loan Agreement as of the day and year first above written.

WITNESS/ATTEST:                         INTERSTATE PITTSBURGH HOTEL HOLDINGS,
                                        L.L.C., a Delaware limited liability
                                        company

                                        By: Interstate Property Partnership,
                                            L.P., a Delaware limited
                                            partnership, sole member

                                            By: Interstate Property Corporation,
                                                a Delaware corporation, General
                                                Partner

   /s/  Patricia S. Mahlstedt           By:  /s/  J. William Richardson
--------------------------------             ----------------------------
       Assistant Secretary              Name:   J. William Richardson
                                        Title:  Vice President

WITNESS/ATTEST:                         PNC BANK, NATIONAL ASSOCIATION, a
                                        national banking association

         /s/ L. Ishne                   By:  /s/ Randall Cornelius
--------------------------------             ----------------------------
       Vice President                        By:  Randall Cornelius
                                             Title: Assistant Vice President

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