Document:

Exhibit 10.16

    
      

    
                            

    Exhibit
      10.16

     

    MARCEL
      VERBAAS

    EMPLOYMENT
      AGREEMENT

     

    THIS
      EMPLOYMENT AGREEMENT (the “Agreement”)
      is
      entered into by and between CNL HOTELS & RESORTS, INC., a Maryland
      corporation formerly known as CNL Hospitality Properties, Inc. (hereinafter
      referred to as the “Company”),
      and
      MARCEL VERBAAS (hereinafter referred to as the “Executive”)
      and is
      effective as of the Effective Date hereinbelow defined at Section 7.19.

     

    WHEREAS,
      the Company has entered into an Amended and Restated Agreement and Plan of
      Merger among the Company, CNL Hotels & Resorts Acquisition, LLC, a Florida
      limited liability company all of the membership interests of which are owned
      by
      the Company (“CHPAC”),
      CNL
      Hospitality Properties Acquisition Corp., a Florida corporation and wholly-owned
      subsidiary of the Company, CNL Hospitality Corp., a Florida corporation (the
      “Advisor”),
      the
      Stockholders identified therein (which includes Executive), and CNL Financial
      Group, Inc., a Florida corporation (the "Merger
      Agreement"),
      pursuant to which the Advisor would be merged with and into CHPAC pursuant
      to
      the terms and conditions of the Merger Agreement (the “Merger”);

     

    WHEREAS,
      the execution and delivery of this Agreement by the Executive was an inducement
      to the Company and CHPAC to enter into the Merger Agreement and to consummate
      the Merger;

     

    and
      

     

    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, 2009, unless sooner terminated in accordance with the provisions
      of
      Section 4 (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 the notice provisions of Section
      7.6, of non-renewal at least ninety (90) days prior to the end of any such
      Term
      (a “Non-Renewal”).

     

    2. Duties.
      The
      Executive, in his capacity as Chief Investment Officer of the Company, 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 Chief Executive Officer
      and
      the Board of Directors of the Company (the “Board”). Such duties may include,
      without limitation, 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
      the following activities do not interfere with the Executive’s duties to the
      Company and provided that the following activities do not violate the
      Executive’s covenant against competition as described at Section 6 hereof,
      during the Term, the Executive may perform personal, charitable and other
      business activities, including, without limitation, serving as a member of
      one
      or more boards of directors of charitable or other professional organizations,
      and, serve on the boards of directors of other business organizations that
      are
      not engaged in any aspect of the lodging industry, provided, however, that
      service on the boards of directors of other business organizations would require
      consent of the Board . 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3. Compensation.

     

    3.1 Salary.
      The
      Company shall pay the Executive during the Term a salary at the rate of Two
      Hundred Eighty-One Thousand and No/00 Dollars ($281,000) per annum (the
“Annual
      Salary”),
      in
      accordance with the customary payroll practices of the Company applicable to
      senior executives generally. The Annual Salary may be increased from time to
      time, by an amount as may be approved by the Board or the Compensation Committee
      of the Board (the “Compensation
      Committee”),
      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 Compensation Committee; 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 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 one (1) times the Executive’s Annual Salary.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    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,
      actually paid by the Executive during the Term in the performance of the
      Executive’s services under this Agreement; provided that the Executive shall
      submit such expenses in accordance with the policies applicable to senior
      executives of the Company generally.

     

    4. Termination
      of Employment.
      The
      Company may terminate the Executive’s employment for any reason or for no reason
      and with or without Cause (as defined hereinbelow). The Executive may terminate
      the Executive’s employment with the Company for Good Reason (as defined
      hereinbelow) or without Good Reason. The Company or the Executive may terminate
      the Executive’s employment by Non-Renewal. The
      Executive shall be subject to the provisions of the Covenant Against Competition
      set forth at Section 6.2. For
      purposes of this Agreement, with respect to "earned and accrued" Bonus payments
      to be made to the Executive in connection with the termination of his
      employment, Bonus payments shall be deemed to be "earned and accrued" (a) if
      the
      Executive is employed with the Company as of the date of the last day of the
      fiscal year for which a Bonus payment shall be made; (b) to the extent that
      the
      criteria for determining the amount of such Bonus payment is subject to
      objective criteria; and (c) regardless of whether the Bonus payment award was
      actually calculated or declared by the Company as of the date of the Executive's
      employment.

     

    4.1 Termination
      upon the Executive’s Death or Disability.
      

     

    a.
       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 in this Section 4.1 and except for the surviving provisions of this
      Agreement as described at Section 7.15. 

     

    b.
       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 Company or the
      Executive shall have the right, to the extent permitted by law, to terminate
      the
      employment of the Executive upon at least ninety (90) days’ prior written notice
      to the other party, provided that neither party shall have the right to
      terminate the Executive’s employment if, in the opinion of a qualified physician
      reasonably acceptable to both parties, it is reasonably certain that the
      Executive will be able to resume his duties on a regular full-time basis within
      one hundred eighty (180) days of the date that the notice of such termination
      is
      delivered. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    c.
       Upon
      the
      Executive’s death or the termination of the Executive’s employment by virtue of
      disability, all of the following shall apply: 

     

    (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,
      except that the Executive, or the Executive’s estate or beneficiaries the case
      of the death of the Executive, shall be entitled to receive the Executive’s
      Annual Salary, and other benefits that are earned and accrued under this
      Agreement prior to the date of termination, the Executive’s earned and accrued
      bonuses as provided in the Bonus Plan, vesting providing in clause (ii) below,
      and reimbursement under this Agreement for expenses incurred prior to the date
      of such termination; 

     

    (ii)
       all
      of
      the Executive’s outstanding and unvested Shares (as defined in Attachment “A”)
      shall immediately be vested, any outstanding options to acquire shares of
      Company stock shall immediately be vested and shall be exercisable by the
      Executive or, in the case of the Executive’s death, by the beneficiaries of
      Executive’s estate, for one (1) year following the termination (or, if shorter,
      the balance of the regular term of the options); and 

     

    (iii)
       this
      Agreement shall otherwise terminate and there shall be no further rights with
      respect to the Executive hereunder except for the surviving provisions of this
      Agreement as provided in Section 7.15. The payments to be made in this Section
      4.1(c) 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. 

     

    4.2 Termination
      by the Company for Cause.
      The
      Company may terminate the Executive’s employment at any time for “Cause”
if
      any
      of the following have occurred: 

     

    a. the
      Executive’s conviction for (or pleading nolo contendere to) any felony, or a
      misdemeanor involving moral turpitude; 

     

    b. the
      Executive’s indictment for any felony or misdemeanor involving moral turpitude,
      if such indictment is not discharged or otherwise resolved within eighteen
      (18)
      months;

     

    c. the
      Executive’s commission of an act of fraud, theft or dishonesty related to the
      performance of the Executive’s duties hereunder;

     

    d. the
      continuing failure or habitual neglect by the Executive to perform the
      Executive’s duties hereunder, except that, if such failure or neglect is
      curable, the Executive shall first have thirty (30) days from his receipt of
      notice of such failure or neglect to cure such condition and, if the Executive
      does so, such failure or neglect shall not constitute Cause
      hereunder;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    e. any
      material violation by the Executive of the covenants contained in Section 6
      except that, if such violation is not willful and is curable, the executive
      shall first have thirty (30) days from his receipt of notice of such violation
      to cure such condition and, if the Executive does so, such violation shall
      not
      constitute Cause hereunder; or

     

    f.
       the
      Executive’s continuing material breach of this Agreement, except that, if such
      breach is curable, the Executive shall first have thirty (30) days from his
      receipt of such notice of such breach to cure such breach and, if the Executive
      does so, such breach shall not constitute Cause hereunder.

     

    If
      the
      Company terminates the Executive’s employment for Cause, the Executive shall
      have no right to receive any compensation or benefit hereunder on and after
      the
      effective date of the termination of employment, except that the Executive
      shall
      be entitled to receive the Executive’s Annual Salary, and other benefits that
      are earned and accrued under this Agreement prior to the date of termination,
      any earned and accrued bonuses as provided in the Bonus Plan, and reimbursement
      under this Agreement for expenses incurred prior to the date of termination.
      This Agreement shall otherwise terminate upon such termination of employment
      and
      the Executive shall have no further rights or obligations hereunder except
      for
      the surviving provisions of this Agreement as described at Section
      7.15.

     

    4.3 Termination
      by the Company without Cause.
      The
      Company may terminate the Executive’s employment at any time without Cause upon
      sixty (60) days prior written notice to the Executive. If the Company terminates
      the Executive’s employment without the occurrence of any of the events
      constituting “Cause” and the termination is not due to the Executive’s death or
      disability or
      is not
      a Non-Renewal, then the termination by the Company is without Cause. If the
      Company terminates the Executive’s employment without Cause, then the Severance
      Package provisions of Section 5 shall apply, and this Agreement shall otherwise
      terminate and the Executive shall have no further rights or obligations
      hereunder except for the surviving provisions of this Agreement as described
      at
      Section 7.15.

     

    4.4 Termination
      of Employment by the Executive for Good Reason.
      The
      Executive may terminate the Executive’s employment with the Company at any time
      for “Good
      Reason”
and
      receive the Severance Package provisions of Section 5 if any of the following
      have occurred without the Executive’s written consent:

     

    a. 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, except
      that 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;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    b. a
      reduction of the Annual Salary of the Executive, except that a reduction of
      the
      Executive’s Annual Salary shall not constitute Good Reason for termination if
      (i) the Company fully cures (including retroactively) such reduction no later
      than thirty (30) days from the date on which the Executive gives the Company
      notice that the reduction constitutes Good Reason for termination hereunder;
      or
      (ii) such reduction is made in connection with a reduction in compensation
      of
      not more than ten percent (10%) of the Executive’s Annual Salary and such
      reduction is made generally applicable to all senior management employees of
      the
      Company; 

     

    c. 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; 

     

    d. the
      Company’s material breach of this Agreement, except that 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; 

     

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

     

    f.
       the
      occurrence of a change of control, which for purposes of this Agreement shall
      mean the sale to an independent third party or group of independent third
      parties of either (i) more than thirty percent (30%) 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 (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 the avoidance of doubt, a change of control shall not
      include the Merger or any issuance by the Company of equity securities in an
      initial public offering.

     

    This
      Agreement shall otherwise terminate upon such termination of employment and
      the
      Executive shall have no further rights or obligations hereunder except for
      the
      surviving provisions of this Agreement as described at Section
      7.15.

     

    4.5
       Termination
      of Employment by the Executive without Good Reason.
      The
      Executive may terminate the Executive’s employment with the Company at any time
      without Good Reason. If the Executive terminates his employment without the
      occurrence of any of the events constituting “Good
      Reason”
and
      the
      termination is not due to the Executive’s death or disability, then the
      termination by the Executive is without Good Reason. If the Executive terminates
      the Executive’s employment with the Company without Good Reason, the Executive
      shall have no right to receive any compensation or benefit hereunder on and
      after the effective date of the termination of employment, except that the
      Executive shall be entitled to receive the Executive’s Annual Salary, and other
      benefits that are earned and accrued under this Agreement or under applicable
      Company benefit plans prior to the date of termination, any earned and accrued
      bonuses as provided in the Bonus Plan, and reimbursement under this Agreement
      for expenses incurred prior to the date of termination. This Agreement shall
      otherwise terminate upon such termination of employment and the Executive shall
      have no further rights or obligations hereunder except for the surviving
      provisions of this Agreement as described at Section 7.15.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.6
       Termination
      upon Expiration and Non-Renewal of Agreement.
      The
      Company may terminate the Executive’s employment by Non-Renewal of the Term in
      accordance with the provisions of Section 1 and Section 7.6 hereof, and the
      Severance Package provisions of Section 5 shall apply. If the Executive
      terminates employment by Non-Renewal, it will be treated as a termination of
      employment without Good Reason. This Agreement shall otherwise terminate upon
      such termination of employment and the Executive shall have no further rights
      or
      obligations hereunder except for the surviving provisions of this Agreement
      as
      described at Section 7.15.

     

    5.
       Severance
      Package for Certain Terminations of Employment.
      The
      Executive shall be entitled to certain rights and shall be bound by certain
      obligations as described in this Section 5 (the “Severance
      Package”)
      if the
      Executive’s employment terminates because of the Non-Renewal by the Company of
      this Agreement, or if the Company terminates the Executive’s employment without
      Cause, or if the Executive terminates the Executive’s employment for Good
      Reason. For purposes of this Agreement, the “Severance
      Package”
shall
      consist of all of the following rights and obligations: 

     

    a.
       other
      than as set forth in this Section 5 generally, the Executive shall have no
      right
      to receive any compensation or benefit hereunder on and after the effective
      date
      of the termination of employment, except that the Executive shall be entitled
      to
      receive the Executive’s Annual Salary, and other benefits that are earned and
      accrued under this Agreement and under applicable Company benefit plans prior
      to
      the date of termination, any earned and accrued bonuses as provided in the
      Bonus
      Plan, and reimbursement under this Agreement for expenses incurred prior to
      the
      date of termination; 

     

    b.
       subject
      to the execution of a general release of claims in favor of the Company as
      set
      forth in Attachment
      “B”,
      the
      Executive shall receive both: 

     

    (i)
      a
      cash payment equal to two (2) times the sum of (w) the Executive’s Annual Salary
      (as in effect on the effective date of such termination excluding any reduction
      not permitted by this Agreement) 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 6.2 hereof are to be applicable
      in accordance with the Company’s usual and customary salary payroll practices,
      commencing on the first payday following Executive’s termination.  (If,
      at
      the time of a termination to which this sub-subparagraph b(i) applies, at least
      three full fiscal years have not occurred, then to the extent necessary to
      calculate the Average Annual Bonus for the last three years as set forth above,
      the annual bonus or bonuses payable to Executive by Executive’s former employer
      shall be used); provided,
      however,
      that in
      the event the termination of employment is in connection with a Non-Renewal
      by
      the Company, such payments shall equal the sum of (y) the Executive’s Annual
      Salary (as in effect on the effective date of such termination excluding any
      reduction not permitted by this Agreement) plus
      (z) the
      Executive’s Average Annual Bonus, which together shall be payable in equal
      installments over a twelve (12) month period in accordance with the Company’s
      usual and customary salary payroll practices (and
      made
      payable to the Executive’s estate in the event that the Executive dies prior to
      the expiration of such period),
      commencing on the first payday following Executive’s termination; and
provided,
      further,
      that if
      the covenants provided in Section 6.2 are not
      applicable, in a single lump sum within five (5) days of termination of
      employment; provided,
      further,
      that if
      the Executive is a “key employee” within the meaning of Internal Revenue Code of
      1986, as amended, Section 409A (“Section 409A”) payments shall not commence (or
      be made in the case of a lump sum payment) until six months following the
      Executive’s separation from service to the extent necessary to avoid the
      imposition of the additional 20% tax under Section 409A (and in the case of
      installment payments, the first payment shall include all installment payments
      required by this subsection that otherwise would have been made during such
      six
      month period);
      and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (ii)
      for
      a period of twelve (12) months 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 (b)(ii) shall
      restrict the ability of the Company to generally 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); 

     

    c.
       subject
      to the execution of a general release of claims in favor of the Company as
      set
      forth in Attachment
      “B”,
      the
      Executive’s outstanding and unvested Shares (as defined in Attachment “A”) that
      would have vested in the calendar year employment terminates (treating
      the performance criteria for the year of termination as fully
      satisfied)
      shall
      be vested, any outstanding options to acquire shares of Company stock shall
      immediately be vested and shall be exercisable by the Executive or, in the
      case
      of the Executive’s death, by the beneficiaries of Executive’s estate, for one
      (1) year following the termination (or, if shorter, the balance of the regular
      term of the options); provided,
      however,
      that if
      such termination of employment occurs in connection with or on or after a change
      of control, all of the Executive’s outstanding awards of Shares shall
      immediately be vested (treating the performance criteria for the applicable
      year(s) as fully satisfied). 

     

    This
      Agreement shall otherwise terminate upon such termination of employment and
      the
      Executive shall have no further rights hereunder except for surviving provisions
      of this Agreement as provided in Section 7.15.

     

    6. Covenants
      of the Executive.

     

    6.1 General
      Covenants of the Executive.
      The
      Executive acknowledges that (a) 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”);
      (b)
      the Company knows of a limited number of persons who have developed the
      Company’s Business; (c) the Company’s Business is, in part, national in scope;
      (d) 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, of
      the Company and its subsidiaries; (e) the covenants and agreements of the
      Executive contained in this Section 6 are essential to the business and goodwill
      of the Company; and (f) the Company would not have entered into this Agreement
      but for the covenants and agreements set forth in this Section 6. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    6.2 Covenant
      Against Competition.
      The
      covenant against competition herein described shall apply as follows:

     

    a.
       during
      the Term; 

     

    b.
       for
      a
      period of one (1) year following a termination of the Executive’s employment by
      the Company for Cause, by the Company without Cause, by the Executive without
      Good Reason or by either party after Non-Renewal; 

     

    c.
       for
      a
      period of two (2) years following a termination of the Executive’s employment by
      the Executive for Good Reason; or 

     

    d.
       as
      to
      Section 6.2(bb) and (dd), at any time during and after the Executive’s
      employment with the Company and its subsidiaries (and the predecessors of
      either). 

     

    During
      the time periods for described hereinabove, the Executive covenants as follows:
      

     

    aa. 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
      that owns and operates hotel and resort properties, or is a real estate
      investment trust which owns hotel and resort properties, or in the business
      of
      providing hotel management or consulting services, and that has assets, or
      provides services to entities that have assets, in excess of Seven Hundred
      Fifty
      Million and No/00 Dollars ($750,000,000), and such business 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 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 or equivalent non-U.S.
      securities exchange, (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.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    bb. Except
      in
      connection with the business and affairs of the Company and its affiliates:
      the
      Executive shall keep secret and retain in strictest confidence, and shall not
      use for his benefit or the benefit of others, all confidential matters relating
      to the 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. For purposes of this Agreement, “affiliate”
      means,
      with respect to the Company, any person, partnership, corporation or other
      entity that controls, is controlled by or is under common control with the
      Company within the meaning of Rule 405 of Regulation C under the Securities
      Act of 1933, as now in effect or as hereafter amended.

     

    cc. The
      Executive shall not, without the Company’s prior written consent, directly or
      indirectly, (i) knowingly solicit or knowingly encourage to leave the employment
      or other service of the Company or any of its affiliates, any employee thereof
      or knowingly 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). 

     

    dd. 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.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    6.3 Rights
      and Remedies upon Breach.
      The
      Executive acknowledges and agrees that any breach by him of any of the
      provisions of Sections 6.1 or 6.2 (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 as part of the Severance Package in the event
      of a
      material breach of any of the Restrictive Covenants that, if capable of cure
      and
      not willful, is not cured within thirty (30) days after receipt of notice
      thereof from the Company.

     

    7. Other
      Provisions.

     

    7.1 Severability.
      The
      Executive acknowledges and agrees that the Executive has had an opportunity
      to
      seek advice of counsel in connection with this Agreement; and that 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 consent to 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 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 addressed 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 and expenses incurred by the prevailing party in connection with
      such proceeding.

     

    7.6 Notices.
      Any
      notice, consent or other communication required or permitted 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, consent or other communication shall be deemed given
      when so delivered personally, delivered by overnight courier, telexed or sent
      by
      facsimile transmission or, if mailed, five days after the date of deposit in
      the
      United States mails as follows:

     

    a. If
      to the
      Company, to:

     

    CNL
      Hotels & Resorts, Inc.

    CNL
      Center at City Commons

    450
      South
      Orange Avenue

    Orlando,
      Florida 32801

    Attention:
      Chairman (James M. Seneff, Jr.)

    Facsimile:
      (407) 650-1011

    

    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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    b. If
      to the
      Executive, to:

     

    Marcel
      Verbaas 

    6148
      Blakeford Drive

    Windermere,
      FL 34786

    Fascimile:
      (407) 650-1085

    

    with
      a
      copy in either case to:

     

    Baker
      & Hostetler LLP

    SunTrust
      Center 

    200
      South
      Orange Avenue, Suite 2300

    Orlando,
      Florida 32801

    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.

     

    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. If the Executive
      is
      terminated without Cause or is terminated due to a Non-Renewal of this Agreement
      by the Company, the Company hereby waives, as to the Executive only, the no-hire
      provision in the Merger Agreement.

     

    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. In
      the
      event that the Company determines that any federal, state, local or foreign
      tax
      or withholding payment is required relating to the vesting in or delivery of
      Shares, the Company shall have the right to require such payments from the
      Executive or withhold such amounts from other payments due to the Executive
      from
      the Company or any affiliate, or to withhold Shares that would otherwise have
      been issued to the Executive. The
      Executive shall have the right to elect, in his discretion, the manner in which
      such payments shall be made or withheld. 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 3.7, 4, 5, 6, 7.3, 7.4, 7.5, 7.11, 7.12, 7.18, 7.19
      and
      7.21 and the other provisions of this Section 7 (to the extent necessary to
      effectuate the survival of Sections 4, 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 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 Company’s
      Repurchase of Certain Shares.
      At the
      Excutive’s option, exercisable
      at any time within twelve (12) months after the date Shares
      (as defined in Attachment “A”)
      (including any additional shares of the Company’s Common Stock then owned by the
      Executive and attributable to such Shares as a result of a stock dividend,
      stock-split, or recapitalization of the Company) are includible in Executive’s
      taxable income, the Company shall
      purchase from the Executive an amount of shares of the Company’s Stock then
      owned by the Executive sufficient to pay the difference between the income
      tax
      attributable to the inclusion of the value of such Shares in Executive’s taxable
      income and the amount previously withheld
      (“Put
      Right”); provided, however, that such Put Right shall not be exercisable with
      regard to any shares of the Company’s Stock the repurchase of which would result
      in an accounting charge to the Company. The Executive’s Put Right shall be
      exercisable at the fair market value of the shares as of the date such Put
      Right
      is exercised (the “Purchase Price”) as determined in good faith by the Company.
      Unless the Company and the Executive shall mutually agree upon other terms,
      the
      Purchase Price shall be paid in cash or other readily available funds, to be
      paid to the Executive thirty (30) days from the date that the Executive elects
      to exercise his Put Right. If
      the
      shares Company Common Stock are listed on an established national or regional
      stock exchange or are admitted to quotation on The Nasdaq Stock Market, Inc.,
      or
      are publicly traded in an established securities market, the foregoing Put
      Right
      shall terminate as of the first date that the shares of Common Stock are so
      listed, quoted or publicly traded.

     

    7.20 Effective
      Date.
      The
      Effective Date shall be the Effective Time (as such term is defined in the
      Merger Agreement). 

     

    7.21 Indemnification.
      Subject
      to the Company’s
      Articles of Incorporation and Bylaws, the Company shall indemnify the Executive
      with respect to his performance of services hereunder on the Company’s
      and its
      affiliates’
      behalf,
      to the fullest extent allowed under the laws of the State of Florida, and if
      such is held not to be applicable, then to the fullest extent allowed under
      the
      laws of the state of the Company’s
      incorporation.  

     

    

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

     

    
      	 	 	 COMPANY:
              
	 	
                      
                CNL HOTELS & RESORTS, INC., a Maryland
                corporation:

            
	 
 	 
 	 
 
	Date: June
              15, 2006	By:  	/s/ Thomas
              J. Hutchison III
	 	
              
Name:
              Thomas J. Hutchison III
	 	Title:
              CEO

      	 	 	 EXECUTIVE:
              
	 	 
	 
 	 
 	 
 
	Date: June
              15, 2006	By:  	/s/ Marcel
              Verbaas
	 	
              

              Name: Marcel Verbaas
	 	Title:
              Marcel Verbaas

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    MARCEL
      VERBAAS

    EMPLOYMENT
      AGREEMENT

    

    ATTACHMENT
      “A”

     

    A. BONUS
      COMPENSATION

     

    1. Annual
      Bonus Compensation.
      Executive shall be eligible to participate in 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 75% of his Annual Salary as bonus
      compensation;
      and

    

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

    

    For
      purpose of the Annual Bonus, Annual Salary means the Annual Salary paid the
      Executive during the calendar or portion of the calendar year covered by the
      bonus. Any bonus compensation in excess of 100% of Executive’s Annual Salary may
      be paid, in whole or in part, at the option of the Executive, in shares of
      the
      Company’s common stock. Executive’s performance criteria shall be established
      annually by the Compensation Committee. For each fiscal year, Executive’s bonus,
      if any, will be paid to Executive in a lump sum on or before seventy five (75)
      days after the end of such fiscal year. 

    

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

     

    B. OTHER
      BENEFITS AND PAYMENTS 

     

    

    3.
       Shares.
      Subject
      to the Company’s 2004 Omnibus Long-Term Incentive Plan,
      as an
      incentive bonus, shares of the Company’s common stock (“Shares”) shall be
      granted to the Executive in accordance with the following provisions:

     

    3.1. A
      total
      of twenty-one thousand six hundred (21,600) Shares shall be granted in the
      form
      of stock units which shall vest in four equal installments on each of December
      31, 2006, December 31, 2007, December 31, 2008 and December 31, 2009, if
      Executive then remains in service to the Company. The shares related to the
      vested stock units shall be delivered to the Executive when vested.

     

    3.2 A
      total
      of ninety-eight thousand four hundred (98,400) Shares shall be granted in the
      form of stock units which shall be subject to vesting based on the achievement
      of performance criteria over partial year, annual and cumulative performance
      periods starting December 31, 2006 and ending on the last day of each calendar
      year through December 31, 2009, as determined by the Compensation
      Committee
      and the
      shares related to the vested stock units shall be delivered to the Executive
      when vested or, to the extent vested, on an earlier termination of employment.
      

     

    3.3 Delivery
      of shares of Company common stock subject to the stock units shall be delayed
      six months if such delivery is made in connection with the Executive’s
      separation from service and such delay is necessary to avoid the 20% additional
      tax imposed by Section 409A. In the event share delivery is delayed, at the
      same
      time the Shares are delivered, the Executive shall receive an amount equal
      to
      the dividend(s) that would be payable on the number of Shares subject to the
      delayed delivery if the record date of such dividend(s) is after the date of
      the
      Executive’s separation from service and prior to the delivery of the shares to
      the Executive.

     

     

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    MARCEL
      VERBAAS

    EMPLOYMENT
      AGREEMENT

    

    ATTACHMENT
      “B”

    

     

    General
      Release of Claims If Executive Is 40 Years-Old or Older on the Date of
      Execution

    

    

    Consistent
      with Section 5 of the Employment Agreement dated _______ __, 2006 between me
      and
      CNL Hotels & Resorts Inc. (the “Employment Agreement”) and in consideration
      for and contingent upon my receipt of the Severance Package set forth in
      Sections 5(b) and 5(c) of the Employment Agreement, I, for myself, my attorneys,
      heirs, executors, administrators, successors, and assigns, do hereby fully
      and
      forever release and discharge CNL Hotels & Resorts Inc. and its affiliated
      entities (as defined in the Employment Agreement), as well as their
      predecessors, successors, assigns, and their current or former directors,
      officers, partners, agents, employees, attorneys, and administrators from all
      suits, causes of action, and/or claims, demands or entitlements of any nature
      whatsoever, whether known, unknown, or unforeseen, which I have or may have
      against any of them arising out of or in connection with my employment by CNL
      Hotels & Resorts Inc., the Employment Agreement, the termination of my
      employment with CNL Hotels & Resorts Inc., or any event, transaction, or
      matter occurring or existing on or before the date of my signing of this General
      Release, except that I am not releasing any (a) right to indemnification that
      I
      may otherwise have, (b)
      right to
      Annual Salary and benefits under applicable benefit plans that are earned and
      accrued but unpaid as of the date of my signing this General Release, (c) right
      to reimbursement for business expenses incurred and not reimbursed as of the
      date of my signing this General Release, (d) right to any bonus payment(s)
      under
      the Bonus Plan that are earned and accrued for the most recent completed
      calendar year for which a bonus payment has not then been paid as of the date
      of
      my signing this General Release, or
      (e)
      claims arising after the date of my signing this General Release. I agree not
      to
      file or otherwise institute any claim, demand or lawsuit seeking damages or
      other relief and not to otherwise assert any claims, demands or entitlements
      that are lawfully released herein. I further hereby irrevocably and
      unconditionally waive any and all rights to recover any relief or damages
      concerning the claims, demands or entitlements that are lawfully released
      herein. I represent and warrant that I have not previously filed or joined
      in
      any such claims, demands or entitlements against CNL Hotels & Resorts Inc.
      or the other persons released herein and that I will indemnify and hold them
      harmless from all liabilities, claims, demands, costs, expenses and/or
      attorneys’ fees incurred as a result of any such claims, demands or
      lawsuits.

    

    Except
      as
      otherwise expressly provided above, this General Release specifically includes,
      but is not limited to, all claims of breach of contract, employment
      discrimination (including any claims coming within the scope of Title VII of
      the
      Civil Rights Act, the Age Discrimination in Employment Act, the Older Workers
      Benefit Protection Act, the Equal Pay Act, the Americans with Disabilities
      Act,
      the Family and Medical Leave Act, and any comparable Florida law, all as
      amended, or any other applicable federal, state, or local law), claims under
      the
      Employee Retirement Income Security Act, as amended, claims under the Fair
      Labor
      Standards Act, as amended (or any other applicable federal, state or local
      statute relating to payment of wages), claims concerning recruitment, hiring,
      termination, salary rate, severance pay, stock options, wages or benefits due,
      sick leave, holiday pay, vacation pay, life insurance, group medical insurance,
      any other fringe benefits, worker’s compensation, termination, employment
      status, libel, slander, defamation, intentional or negligent misrepresentation
      and/or infliction of emotional distress, together with any and all tort,
      contract, or other claims which might have been asserted by me or on my behalf
      in any suit, charge of discrimination, or claim against CNL Hotels & Resorts
      or the persons released herein. 

    

    I
      acknowledge that I have been given an opportunity of twenty-one (21) days to
      consider this General Release and that I have been encouraged by CNL Hotels
      & Resorts Inc. to discuss fully the terms of this General Release with legal
      counsel of my own choosing. Moreover, for a period of seven (7) days following
      my execution of this General Release, I shall have the right to revoke the
      waiver of claims arising under the Age Discrimination in Employment Act, a
      federal statute that prohibits employers from discriminating against employees
      who are age 40 or over. If I elect to revoke this General Release within this
      seven-day period, I must inform CNL Hotels & Resorts Inc. by delivering a
      written notice of revocation to CNL Hotels & Resorts Inc.’s Director of
      Human Resources, ________________________, no
      later
      than 11:59 p.m. on the seventh calendar day after I sign this General Release.
      I
      understand that, if I elect to exercise this revocation right, this General
      Release shall be voided in its entirety and CNL Hotels & Resorts Inc. shall
      be relieved of all obligations to make the portion of the Severance Package
      described in Section 5(b) and (c) of the Employment Agreement. I may, if I
      wish,
      elect to sign this General Release prior to the expiration of the 21-day
      consideration period, and I agree that if I elect to do so, my election is
      made
      freely and voluntarily and after having an opportunity to consult
      counsel.

    

    

    

    AGREED:

    

    

    [Form
      of Agreement Only - Do No Execute] 

    _____________________________  ______________________________

    Marcel
      Verbaas    DateExhibit 10.19

    
      

    

    Exhibit
      10.19

    
 

    Published
      CUSIP Number: 12617SAC2  

    

    

     

    

    THIRD
      AMENDMENT TO CREDIT AGREEMENT

    

    Effective
      as of June 30, 2006

    

    among

    CNL
      HOSPITALITY PARTNERS, LP,

    as
      Borrower,

    

    CNL
      HOTELS & RESORTS, INC.,

    as
      Parent,

    

    BANK
      OF AMERICA, N.A.,

    as
      Administrative Agent and L/C Issuer,

    

    and

    The
      Other
      Lenders Party Hereto

     

    

    WACHOVIA
      BANK NATIONAL ASSOCIATION

    and

    DEUTSCHE
      BANK TRUST COMPANY AMERICAS,

    as
      Co-Syndication Agents

    

    

    CALYON
      NEW YORK BRANCH

    and

    CITICORP
      NORTH AMERICA, INC.,

    as
      Co-Documentation Agents

    

    BANC
      OF AMERICA SECURITIES LLC,

    as

    Sole
      Lead
      Arranger and Sole Book Manager

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          

           

        

      

    

    

    THIRD
      AMENDMENT TO CREDIT AGREEMENT

    THIS
      THIRD AMENDMENT TO CREDIT AGREEMENT (this “Agreement”)
      is
      effective as of June 30, 2006, by and among CNL
      HOSPITALITY PARTNERS, LP,
      a
      Delaware limited partnership (“Borrower”),
      CNL
      HOTELS
      & RESORTS,
      INC.,
      a
      Maryland corporation (“Parent”),
      each
      lender from time to time party hereto (collectively, the “Lenders”
and
      individually, a “Lender”),
      and
BANK
      OF AMERICA, N.A., as
      Administrative Agent and L/C Issuer.

    

    R E C I T A L S

    

    A. Reference
      is hereby made to that certain Credit Agreement dated as of September 30, 2005,
      executed by Borrower, Parent, the Lenders party thereto (“Existing
      Lenders”),
      and
      Administrative Agent (as amended, the “Credit
      Agreement”).

    

    B. Capitalized
      terms used herein shall, unless otherwise indicated, have the respective
      meanings set forth in the Credit Agreement.

    

    C. Borrower,
      Parent, Administrative Agent, and the Lenders desire to (a) increase the
      amount of the Total Commitment by (i) adding the new Lenders set forth on
Schedule 2.1
      hereto
      (“New
      Lenders;”
      Existing Lenders and New Lenders are collectively called “Lenders”)
      as
      Lenders in accordance with Section 2.13
      of the
      Credit Agreement, and (ii) having certain Existing Lenders increase their
      Commitment in accordance with Section 2.13
      of the
      Credit Agreement, and (b)  otherwise modify certain provisions contained in
      the Credit Agreement, in each case subject to the terms and conditions set
      forth
      herein.

    

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties hereto agree as follows:

    

    1. Amendments
      to the Credit Agreement. 

    

    (a)  The
      definition of “Applicable
      Margin”
is
      hereby deleted in its entirety and replaced with the following:

    

    “Applicable
      Margin”
means
      (a) 1.25% per annum for Base Rate Loans and (b) 2.25% per annum for Eurodollar
      Rate Loans and Letters of Credit.

    

    (b) The
      definition of “Consolidated
      Leverage Ratio”
is
      hereby deleted in its entirety and replaced with the following:

    

    “Consolidated
      Leverage Ratio”
      means,
      for
      Parent and its Subsidiaries on a consolidated basis as of any date of
      determination,
      as of
      the last day of any fiscal quarter, the percentage of (a) Consolidated Funded
      Indebtedness (other than Excluded Contingent Obligations) to (b) the amount
      obtained by dividing (i) Consolidated EBITDA for the four (4) fiscal quarters
      ending on the date of determination by (ii) eight and one hundredths
      (.085).

    

    (c)  The
      definition of “Fund”
is
      hereby deleted in its entirety and replaced with the following:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    “Fund”
means
      any Person (other than a natural person) that is (or will be) engaged in making,
      purchasing, holding or otherwise investing in commercial loans and similar
      extensions of credit in the ordinary course of its business.

    

    (d) Section
      1.1
      is
      hereby amended to add the following definitions of “Approved
      Fund,”
      “Assignee
      Group,”
      “Eligible
      Assignee,”
      “Fifth
      Mezzanine Borrower,”“Fifth
      Mezzanine Borrowing Date,”
and
      “Fifth
      Mezzanine Loan”
in
      the
      appropriate alphabetical order:

    

    “Approved
      Fund”
means
      any Fund that is administered or managed by (a) a Lender, (b)  an
      Affiliate of a Lender, or (c) an entity or an Affiliate of an entity that
      administers or manages a  Lender.

     

    “Assignee
      Group”
means
      two or more Eligible Assignees that are Affiliates of one another or two or
      more
      Approved Funds managed by the same investment advisor.

    

    “Eligible
      Assignee”
means
      any Person that meets the requirements to be an assignee under Section
      11.07(b)(iii),
      (v),
      and
(vi)
      (subject
      to such consents, if any, as may be required under Section
      11.07(b)(iii)). 

    

    “Fifth
      Mezzanine Borrower”
means
      CNL Resort Junior Mezz, LP, a Delaware limited partnership who is a wholly-owned
      indirect Subsidiary of Borrower.

    

    “Fifth
      Mezzanine Borrowing Date”
means
      the date that the first funding occurs under the Fifth Mezzanine
      Loan.

    

    “Fifth
      Mezzanine Loan”
means
      the mezzanine loan financing to Fifth Mezzanine Borrower of up to $100,000,000
      as contemplated and under terms and conditions set forth in that certain Loan
      and Security Agreement dated as of January 9, 2006, between CNL Resort
      Hotel, LP, CNL Resort Silver Properties, LP, CNL Grand Wailea Resort, LP, CNL
      Biltmore Resort, LP, CNL Claremont Resort, LP, and CNL Desert Resort, LP, as
      Borrowers, and German American Capital Corporation, as Lender, and the related
      Mezzanine Loan Agreements as referenced therein.

     

    (e) Section
      2.04
      is
      hereby amended to add the following subsection
      (c):

    

    (c) Any
      amounts borrowed by the Fifth Mezzanine Borrower under the Fifth Mezzanine
      Loan
      shall be immediately applied to prepay the Loans on a dollar-for-dollar basis,
      in each case until the Total Outstandings are not more than the lesser of (a)
      $200,000,000 and (b) sixty percent (60%) of the Borrowing Base.

    

    (f)  Section
      2.05 is
      hereby
      deleted in its entirety and replaced with the following:

    

    2.05 Termination
      or Reduction of Commitments. 

    

    (a) Voluntary
      Reductions. 
      Borrower
      may, upon notice to Administrative Agent, which notice shall be irrevocable,
      terminate the Aggregate Commitments, or from time to time permanently reduce
      the
      Aggregate Commitments; provided that
      (i) any
      such notice shall be received by Administrative Agent not later than 11:00
      a.m.
      five (5) Business Days prior to the date of termination or reduction, (ii)
      any
      such partial reduction shall be in an aggregate amount of $10,000,000 or any
      whole multiple of $1,000,000 in excess thereof, (iii) Borrower shall not
      terminate or reduce the Aggregate Commitments if, after giving effect thereto
      and to any concurrent prepayments hereunder, the Total Outstandings would exceed
      the Aggregate Commitments, and (iv) if, after giving effect to any reduction
      of
      the Aggregate Commitments, the Letter of Credit Sublimit exceeds the amount
      of
      the Aggregate Commitments, such Letter of Credit Sublimit shall be automatically
      reduced by the amount of such excess. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b) Mandatory
      Reduction. The
      Aggregate Commitments shall be permanently reduced dollar-for-dollar based
      upon
      the amount of all advances under the Fifth Mezzanine Loan, until the Aggregate
      Commitments are equal to not more than $200,000,000.

    

    (c) General
      Requirements. Administrative
      Agent will promptly notify the Lenders of any such notice of termination or
      reduction of the Aggregate Commitments. Any reduction of the Aggregate
      Commitments shall be applied to the Commitment of each Lender according to
      its
      Pro Rata Share. All utilization fees accrued until the effective date of any
      termination of the Aggregate Commitments shall be paid on the effective date
      of
      such termination.

    

    (g) 4.01(b)
      is
      hereby
      deleted in its entirety and replaced with the following:

    

    (b) The
      “Implied
      Loan Amount”
with
      respect to the Borrowing Base Properties means, as of the last day of any fiscal
      quarter or any other applicable date of determination during the term hereof,
      the product of (i) the Appraised Value (determined using the most-recent
      Acceptable Appraisal delivered to Administrative Agent as required hereunder)
      of
      the Borrowing Base Property, and (ii) seventy-five percent (75%), provided
      that on
      and after the Fifth Mezzanine Borrowing Date, such percentage shall be reduced
      to sixty percent (60%). Notwithstanding the foregoing, the amount attributable
      to the Borrowing Base with respect to (i) any single Borrowing Base Property
      shall not exceed thirty percent (30%) of the Borrowing Base, (ii) Borrowing
      Base
      Properties located in any single metropolitan statistical area shall not exceed
      thirty percent (30%) of the Borrowing Base, and (iii) all Borrowing Base
      Properties in operation for less than one (1) year shall not exceed fifteen
      percent (15%) of the Borrowing Base. As of the Closing Date, the Implied Loan
      Amount and the Appraised Value with respect to the Initial Borrowing Base
      Properties are set forth on Schedule 4.01.

    

    (h) 4.05(c)
      is
      hereby
      deleted in its entirety and replaced with the following:

    

    (c) Administrative
      Agent shall not release any Collateral or any portion of any Collateral unless,
      after giving effect to any such release (i) no Default or Event of Default
      exists, and (ii) the Borrowing Base equals or exceeds $100,000,000 after giving
      effect to such release.

    

    (i) Section
      5.02
      is
      hereby amended to add the following subsection
      (d):

    

    (d) With
      respect to any Request for Credit Extension that would result in the Total
      Outstandings exceeding $200,000,000, Administrative Agent shall be satisfied
      that (i) all
      necessary third-party consents have been obtained or amended and (ii) all
      actions have been taken and completed in order for Administrative Agent to
      maintain its first priority Liens in the Collateral,
      including, without limitation, the payment by the applicable Person of all
      mortgage, stamp, and filing taxes and all other fees related to the perfection
      of the Collateral and the filing of any amendments to any Mortgages, for the
      Obligations with respect to any Outstanding Amounts in excess of
      $200,000,000.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (j) Article
      VII
      is
      hereby amended to add the following Section
      7.26:

    

    7.26 Eligibility
      of Fifth Mezzanine Loan.  Borrower
      and Parent shall and shall cause Fifth Mezzanine Borrower and its subsidiaries
      to use their diligent best efforts to at all times remain eligible for the
      Fifth
      Mezzanine Loan.

    

    (k) Section
      8.15(a) is
      hereby
      deleted in its entirety and replaced with the following:

    

    (a) Consolidated
      Leverage Ratio.
      Parent
      shall not permit the Consolidated Leverage Ratio of Parent and its Subsidiaries
      on a consolidated basis, as of the last day of any fiscal quarter, to be greater
      than seventy-five percent (75%).

    

    (l) Section
      8.15(b) is
      hereby
      deleted in its entirety and replaced with the following:

    

    (b) Consolidated
      Fixed Charge Coverage Ratio.
      Parent
      shall not permit the Consolidated Fixed Charge Coverage Ratio of Parent and
      its
      Subsidiaries on a consolidated basis as of the last day of any fiscal quarter
      of
      Parent to be less than 1.40 to 1.0.

    

    (m) Section
      8.15(b) is
      hereby
      deleted in its entirety and replaced with the following:

    

    (c) Borrowing
      Base Debt Service Coverage Ratio.
      Parent
      and Borrower shall not permit, as of the last day of any fiscal quarter, the
      ratio of (i) Adjusted NOI for the Borrowing Base Properties as of such date
      for
      the twelve (12) month period ending on such date of determination, to (ii)
      Implied Debt Service, to be less than 1.35 to 1.0.

    

    (n)  Article
      VIII
      is
      hereby amended to add the following Section
      8.18:

    

    8.18 Fifth
      Mezzanine Loan.
      Borrower and Parent shall not permit (a) the proceeds (other than the
      customary closing costs related to the Fifth Mezzanine Loan) of advances under
      the Fifth Mezzanine Loan to be used for any other purpose until the same have
      been applied to repay the Total Outstandings and reduce the Aggregate
      Commitments as required by Section 2.04(c)
      and
Section
      2.05(b),
      and (b)
      any lien or other encumbrance to exist on the rights of the Fifth Mezzanine
      Borrower to obtain or in the required collateral for the Fifth Mezzanine Loan
      (or on the interests of Borrower in Fifth Mezzanine Borrower), or otherwise
      restrict the ability of the Fifth Mezzanine Borrower to obtain the Fifth
      Mezzanine Loan and advances thereunder.

    

    (o) Section
      11.07 is
      hereby
      deleted in its entirety and replaced with the following:

    

    11.07 Successors
      and Assigns.

    

    (a) Successors
      and Assigns Generally.
      The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns permitted hereby,
      except that Borrower may not assign or otherwise transfer any of its rights
      or
      obligations hereunder without the prior written consent of Administrative Agent
      and each Lender and no Lender may assign or otherwise transfer any of its rights
      or obligations hereunder except (i) to an assignee in accordance with the
      provisions of subsection (b) of this Section, (ii) by way of participation
      in
      accordance with the provisions of subsection (d) of this Section, or (iii)
      by
      way of pledge or assignment of a security interest subject to the restrictions
      of subsection (f) of this Section
      11.07
      (and any
      other attempted assignment or transfer by any party hereto shall be null and
      void). Nothing in this Agreement, expressed or implied, shall be construed
      to
      confer upon any Person (other than the parties hereto, their respective
      successors and assigns permitted hereby, Participants to the extent provided
      in
      subsection (d) of this Section and, to the extent expressly contemplated hereby,
      the Related Parties of each of Administrative Agent, the L/C Issuer and the
      Lenders) any legal or equitable right, remedy or claim under or by reason of
      this Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b) Assignments
      by Lenders.
      Any
      Lender may at any time assign to one or more assignees all or a portion of
      its
      rights and obligations under this Agreement (including all or a portion of
      its
      Commitment and the Loans (including for purposes of this subsection (b),
      participations in L/C Obligations) at the time owing to it); provided
      that any
      such assignment shall be subject to the following conditions:

    

    (i) Minimum
      Amounts.

    

    (A) in
      the
      case of an assignment of the entire remaining amount of the assigning Lender’s
      Commitment and the Loans at the time owing to it or in the case of an assignment
      to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount
      need be assigned; and

    

    (B) in
      any
      case not described in subsection (b)(i)(A) of this Section, the aggregate amount
      of the Commitment (which for this purpose includes Loans outstanding thereunder)
      or, if the Commitment is not then in effect, the principal outstanding balance
      of the Loans of the assigning Lender subject to each such assignment, determined
      as of the date the Assignment and Assumption with respect to such assignment
      is
      delivered to Administrative Agent or, if “Trade Date” is specified in the
      Assignment and Assumption, as of the Trade Date, shall not be less than
      $1,000,000 unless each of Administrative Agent and, so long as no Event of
      Default has occurred and is continuing, Borrower otherwise consents (each such
      consent not to be unreasonably withheld or delayed); provided,
      however,
      that
      concurrent assignments to members of an Assignee Group and concurrent
      assignments from members of an Assignee Group to a single assignee (or to an
      assignee and members of its Assignee Group) will be treated as a single
      assignment for purposes of determining whether such minimum amount has been
      met.

    

    (ii) Proportionate
      Amounts.
      Each
      partial assignment shall be made as an assignment of a proportionate part of
      all
      the assigning Lender’s rights and obligations under this Agreement with respect
      to the Loans or the Commitment assigned; 

    

    (iii) Required
      Consents.
      No
      consent shall be required for any assignment except to the extent required
      by
      subsection (b)(i)(B) of this Section and, in addition:

    

    (A) the
      consent of Borrower (such consent not to be unreasonably withheld or delayed)
      shall be required unless (1) an Event of Default has occurred and is continuing
      at the time of such assignment or (2) such assignment is to a Lender, an
      Affiliate of a Lender or an Approved Fund;

    

    (B) the
      consent of Administrative Agent (such consent not to be unreasonably withheld
      or
      delayed) shall be required if such assignment is to a Person that is not a
      Lender, an Affiliate of such Lender or an Approved Fund with respect to such
      Lender; and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (C) the
      consent of the L/C Issuer (such consent not to be unreasonably withheld or
      delayed) shall be required for any assignment that increases the obligation
      of
      the assignee to participate in exposure under one or more Letters of Credit
      (whether or not then outstanding).

    

    (iv) Assignment
      and Assumption.
      The
      parties to each assignment shall execute and deliver to Administrative Agent
      an
      Assignment and Assumption, together with a processing and recordation fee in
      the
      amount, if any, required as set forth in Schedule
      11.07;
      provided,
      however,
      that
      Administrative Agent may, in its sole discretion, elect to waive such processing
      and recordation fee in the case of any assignment. The assignee, if it is not
      a
      Lender, shall deliver to Administrative Agent an Administrative
      Questionnaire.

    

    (v) No
      Assignment to Borrower.
      No such
      assignment shall be made to Borrower or any of Borrower’s Affiliates or
      Subsidiaries.

    

    (vi) No
      Assignment to Natural Persons.
      No such
      assignment shall be made to a natural person. Subject to acceptance and
      recording thereof by Administrative Agent pursuant to subsection (c) of this
      Section, from and after the effective date specified in each Assignment and
      Assumption, the assignee thereunder shall be a party to this Agreement and,
      to
      the extent of the interest assigned by such Assignment and Assumption, have
      the
      rights and obligations of a Lender under this Agreement, and the assigning
      Lender thereunder shall, to the extent of the interest assigned by such
      Assignment and Assumption, be released from its obligations under this Agreement
      (and, in the case of an Assignment and Assumption covering all of the assigning
      Lender’s rights and obligations under this Agreement, such Lender shall cease to
      be a party hereto) but shall continue to be entitled to the benefits of
Sections
      3.01,
      3.04,
      3.05,
      and
10.04
      with
      respect to facts and circumstances occurring prior to the effective date of
      such
      assignment. Upon request, Borrower (at its expense) shall execute and deliver
      a
      Note to the assignee Lender. Any assignment or transfer by a Lender of rights
      or
      obligations under this Agreement that does not comply with this subsection
      shall
      be treated for purposes of this Agreement as a sale by such Lender of a
      participation in such rights and obligations in accordance with subsection
      (d)
      of this Section.

    

    (c) Register.
      Administrative Agent, acting solely for this purpose as an agent of Borrower,
      shall maintain at Administrative Agent’s Office a copy of each Assignment and
      Assumption delivered to it and a register for the recordation of the names
      and
      addresses of the Lenders, and the Commitments of, and principal amounts of
      the
      Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof
      from time to time (the “Register”).
      The
      entries in the Register shall be conclusive, and Borrower, Administrative Agent
      and the Lenders may treat each Person whose name is recorded in the Register
      pursuant to the terms hereof as a Lender hereunder for all purposes of this
      Agreement, notwithstanding notice to the contrary. The Register shall be
      available for inspection by Borrower and any Lender, at any reasonable time
      and
      from time to time upon reasonable prior notice.

    

    (d) Participations.
      Any
      Lender may at any time, without the consent of, or notice to, Borrower or
      Administrative Agent, sell participations to any Person (other than a natural
      person or Borrower or any of Borrower’s Affiliates or Subsidiaries) (each, a
“Participant”)
      in all
      or a portion of such Lender’s rights and/or obligations under this Agreement
      (including all or a portion of its Commitment and/or the Loans (including such
      Lender’s participations in L/C Obligations) owing to it); provided
      that
      (i) such Lender’s obligations under this Agreement shall remain unchanged,
      (ii) such Lender shall remain solely responsible to the other parties
      hereto for the performance of such obligations and (iii) Borrower,
      Administrative Agent, the Lenders and the L/C Issuer shall continue to deal
      solely and directly with such Lender in connection with such Lender’s rights and
      obligations under this Agreement. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Any
      agreement or instrument pursuant to which a Lender sells such a participation
      shall provide that such Lender shall retain the sole right to enforce this
      Agreement and to approve any amendment, modification or waiver of any provision
      of this Agreement; provided
      that
      such agreement or instrument may provide that such Lender will not, without
      the
      consent of the Participant, agree to any amendment, waiver or other modification
      described in the first proviso to Section
      11.01
      that
      affects such Participant. Subject to subsection (e) of this Section, Borrower
      agrees that each Participant shall be entitled to the benefits of Sections
      3.01,
      3.04
      and
3.05 to
      the
      same extent as if it were a Lender and had acquired its interest by assignment
      pursuant to subsection (b) of this Section. To the extent permitted by law,
      each
      Participant also shall be entitled to the benefits of Section 11.15 as
      though
      it were a Lender, provided
      such
      Participant agrees to be subject to Section
      2.12
      as
      though it were a Lender.

    

    (e) Limitations
      upon Participant Rights.
      A
      Participant shall not be entitled to receive any greater payment under
Section
      3.01
      or
3.04 than
      the
      applicable Lender would have been entitled to receive with respect to the
      participation sold to such Participant, unless the sale of the participation
      to
      such Participant is made with Borrower’s prior written consent. A Participant
      that would be a Foreign Lender if it were a Lender shall not be entitled to
      the
      benefits of Section 3.01
      unless
      Borrower is notified of the participation sold to such Participant and such
      Participant agrees, for the benefit of Borrower, to comply with Section
      3.01(e)
      as
      though it were a Lender.

    

    (f) Certain
      Pledges.
      Any
      Lender may at any time pledge or assign a security interest in all or any
      portion of its rights under this Agreement (including under its Note, if any)
      to
      secure obligations of such Lender, including any pledge or assignment to secure
      obligations to a Federal Reserve Bank; provided
      that no
      such pledge or assignment shall release such Lender from any of its obligations
      hereunder or substitute any such pledgee or assignee for such Lender as a party
      hereto.

    

    (g) Electronic
      Execution of Assignments.
      The
      words “execution,” “signed,” “signature,” and words of like import in any
      Assignment and Assumption shall be deemed to include electronic signatures
      or
      the keeping of records in electronic form, each of which shall be of the same
      legal effect, validity or enforceability as a manually executed signature or
      the
      use of a paper-based recordkeeping system, as the case may be, to the extent
      and
      as provided for in any applicable law, including the Federal Electronic
      Signatures in Global and National Commerce Act, the New York State Electronic
      Signatures and Records Act, or any other similar state laws based on the Uniform
      Electronic Transactions Act.

    

    (h) Resignation
      as L/C Issuer after Assignment.
      Notwithstanding anything to the contrary contained herein, if at any time Bank
      of America assigns all of its Commitment and Loans pursuant to subsection (b)
      above, Bank of America may, upon thirty (30) days’ notice to Borrower and the
      Lenders, resign as L/C Issuer, Borrower shall be entitled to appoint from among
      the Lenders a successor L/C Issuer hereunder; provided,
      however,
      that no
      failure by Borrower to appoint any such successor shall affect the resignation
      of Bank of America as L/C Issuer, as the case may be. If Bank of America resigns
      as L/C Issuer, it shall retain all the rights, powers, privileges and duties
      of
      the L/C Issuer hereunder with respect to all Letters of Credit outstanding
      as of
      the effective date of its resignation as L/C Issuer and all L/C Obligations
      with
      respect thereto (including the right to require the Lenders to make Base Rate
      Committed Loans or fund risk participations in Unreimbursed Amounts pursuant
      to
Section
      2.03(c)).
      Upon
      the appointment of a successor L/C Issuer, (a) such successor shall succeed
      to
      and become vested with all of the rights, powers, privileges and duties of
      the
      retiring L/C Issuer, and (b) the successor L/C Issuer shall issue letters of
      credit in substitution for the Letters of Credit, if any, outstanding at the
      time of such succession or make other arrangements satisfactory to Bank of
      America to effectively assume the obligations of Bank of America with respect
      to
      such Letters of Credit.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (p) The
      Credit Agreement is hereby amended to add the following new Section
      11.23:

    

    11.23 No
      Advisory or Fiduciary Responsibility. In
      connection with all aspects of each transaction contemplated hereby, Borrower
      and Parent each acknowledge and agree, and acknowledge their respective
      Affiliates’ understanding, that: (i) the credit facility provided for hereunder
      and any related arranging or other services in connection therewith (including
      in connection with any amendment, waiver or other modification hereof or of
      any
      other Loan Document) are an arm’s-length commercial transaction between
      Borrower, Parent and their respective Affiliates, on the one hand, and
      Administrative Agent and the Arranger, on the other hand, and each of Borrower
      and Parent is capable of evaluating and understanding and understands and
      accepts the terms, risks and conditions of the transactions contemplated hereby
      and by the other Loan Documents (including any amendment, waiver or other
      modification hereof or thereof); (ii) in connection with the process leading
      to
      such transaction, Administrative Agent and the Arranger each is and has been
      acting solely as a principal and is not the financial advisor, agent or
      fiduciary, for Borrower, Parent, or any of their respective Affiliates,
      stockholders, creditors or employees or any other Person; (iii) neither
      Administrative Agent nor the Arranger has assumed or will assume an advisory,
      agency or fiduciary responsibility in favor of Borrower or Parent with respect
      to any of the transactions contemplated hereby or the process leading thereto,
      including with respect to any amendment, waiver or other modification hereof
      or
      of any other Loan Document (irrespective of whether Administrative Agent or
      the
      Arranger has advised or is currently advising Borrower, Parent, or any of their
      respective Affiliates on other matters) and neither Administrative Agent nor
      the
      Arranger has any obligation to Borrower, Parent, or any of their respective
      Affiliates with respect to the transactions contemplated hereby except those
      obligations expressly set forth herein and in the other Loan Documents; (iv)
      Administrative Agent and the Arranger and their respective Affiliates may be
      engaged in a broad range of transactions that involve interests that differ
      from
      those of Borrower, Parent, and their respective Affiliates, and neither
      Administrative Agent nor the Arranger has any obligation to disclose any of
      such
      interests by virtue of any advisory, agency or fiduciary relationship; and
      (v)
      Administrative Agent and the Arranger have not provided and will not provide
      any
      legal, accounting, regulatory or tax advice with respect to any of the
      transactions contemplated hereby (including any amendment, waiver or other
      modification hereof or of any other Loan Document) and each of Borrower and
      Parent has consulted its own legal, accounting, regulatory and tax advisors
      to
      the extent it has deemed appropriate. Each of Borrower and Parent hereby waives
      and releases, to the fullest extent permitted by law, any claims that it may
      have against Administrative Agent and the Arranger with respect to any breach
      or
      alleged breach of agency or fiduciary duty.

    

    (q) Exhibit
      C
      is
      hereby added in the form of Exhibit
      C
      attached
      hereto

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (r) Exhibit
      E is
      hereby
      added in the form of Exhibit
      E
      attached
      hereto.

    

    2. Lenders
      and Commitments.

    

    (a) Pursuant
      to Section
      2.13,
      the
      Lenders hereby agree that, as of the date hereof, each Lender’s Commitment is as
      set forth on Schedule 2.01
      attached
      hereto.

    

    (b) By
      their
      execution of this Agreement, each New Lender is hereby admitted as a Lender
      pursuant to Section 2.13
      of the
      Credit Agreement and each New Lender’s signature page to this Agreement shall be
      deemed to be its signature page to the Credit Agreement.

    

    (c) By
      their
      execution of this Agreement, each Existing Lender that is an Increasing Lender
      pursuant to Section 2.13
      hereby
      acknowledges and agrees to the increase in its Commitment set forth on
Schedule 2.01
      attached
      hereto.

    

    3. Amendments
      to Credit Agreement and Other Loan Documents.

    

    (a) All
      references in the Loan Documents to the Credit Agreement shall henceforth
      include references to the Credit Agreement as modified and amended by this
      Agreement, and as may, from time to time, be further modified, amended,
      restated, extended, renewed, and/or increased.

    

    (b) Any
      and
      all of the terms and provisions of the Loan Documents are hereby amended and
      modified wherever necessary, even though not specifically addressed herein,
      so
      as to conform to the amendments and modifications set forth herein.

    

    4. Ratifications.
      Each of
      Borrower and Parent (a) ratifies and confirms all provisions of the Loan
      Documents as amended by this Agreement, (b) ratifies and confirms that all
      guaranties and assurances, granted, conveyed, or assigned to the Credit Parties
      under the Loan Documents are not released, reduced, or otherwise adversely
      affected by this Agreement and continue to guarantee and assure full payment
      and
      performance of the present and future Obligation, and (c) agrees to perform
      such acts and duly authorize, execute, acknowledge, deliver, file, and record
      such additional documents and certificates as Administrative Agent may
      reasonably request in order to create, preserve and protect those guaranties
      and
      assurances.

    

    5. Representations.
      Each of
      Borrower and Parent represents and warrants to Lenders that as of the date
      of
      this Agreement: (a) this Agreement has been duly authorized, executed, and
      delivered by Borrower; (b) no action of, or filing with, any Governmental
      Authority is required to authorize, or is otherwise required in connection
      with,
      the execution, delivery, and performance of this Agreement other than the
      reporting and filing of this Agreement pursuant to Legal Requirements regarding
      securities; (c) the Loan Documents, as amended by this Agreement, are valid
      and binding upon Borrower and are enforceable against Borrower in accordance
      with their respective terms, except as limited by Debtor Relief Laws and general
      principles of equity; (d) the execution, delivery, and performance of this
      Agreement does not require the consent of any other Person and do not and will
      not constitute a violation of any Legal Requirements, order of any Governmental
      Authority, or material agreements to which Parent, Borrower, or any of their
      Subsidiaries is a party or by which Parent, Borrower or any of their
      Subsidiaries is bound; (e) all representations and warranties in the Loan
      Documents are true and correct in all material respects on and as of the date
      of
      this Agreement, except to the extent that (i) any of them speak to a
      different specific date, or (ii) the facts on which any of them were based
      have been changed by transactions contemplated or permitted by the Credit
      Agreement; and (f) both before and after giving effect to this Agreement,
      no Default exists.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    6. Conditions.
      This
      Agreement shall not be effective unless and until: 

    

    (a) this
      Agreement is executed by Borrower, Parent, Administrative Agent, and each
      Lenders, and the ratification attached hereto is executed by each Subsidiary
      Guarantor;

    

    (b) Administrative
      Agent shall have received a Note payable to the order of each New Lender that
      requests a Note, executed by Borrower; 

    

    (c) Administrative
      Agent receives a certificate executed by Responsible Officer of each of Parent
      and Borrower certifying (i) the name of each of its officers who are
      authorized to sign this Agreement and the other documents executed in connection
      herewith, (ii) a true and correct copy of the Resolutions of Borrower that
      authorize the execution, delivery, and performance of this Agreement and the
      other documents executed in connection herewith, and (iii) that the
      articles or certificate of incorporation, bylaws, and other Constituent
      Documents of such Person attached thereto;

    

    (d) Administrative
      Agent receives an opinion of counsel to Parent and Borrower in form and
      substance acceptable to Administrative Agent; and

    

    (e) Borrower
      shall have paid Administrative Agent all fees required to be paid by Borrower
      under the Loan Documents and any fee letter agreements.

    

    7. Continued
      Effect.
      Except
      to the extent amended hereby or by any documents executed in connection
      herewith, all terms, provisions, and conditions of the Credit Agreement and
      the
      other Loan Documents, and all documents executed in connection therewith, shall
      continue in full force and effect and shall remain enforceable and binding
      in
      accordance with their respective terms.

    

    8. Miscellaneous.
      Unless
      stated otherwise (a) the singular number includes the plural and vice
      versa
      and
      words of any gender include each other gender, in each case, as appropriate,
      (b)
      headings and captions may not be construed in interpreting provisions, (c)
      this
      Agreement shall be construed -- and its performance enforced -- under New York
      law, (d) if any part of this Agreement is for any reason found to be
      unenforceable, all other portions of it nevertheless remain enforceable, and
      (e)
      this Agreement may be executed in any number of counterparts with the same
      effect as if all signatories had signed the same document, and all of those
      counterparts must be construed together to constitute the
      same document.

    

    9. Parties.
      This
      Agreement binds and inures to each of the parties hereto and their respective
      successors and permitted assigns.

    

    10. Entireties.
      The Credit Agreement and the other Loan Documents, as amended by this Agreement,
      represent the final agreement between the parties about the subject matter
      of
      the Credit Agreement and may not be contradicted by evidence of prior,
      contemporaneous, or subsequent oral agreements of the parties. There are no
      unwritten oral agreements between the parties.

    

    [Remainder
      of Page Intentionally Left Blank; Signature Pages to Follow.]

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          

           

        

      

    

    

    EXECUTED
      as of the first date written above.

    

    
      	 	 	 BORROWER:
	 	
                  
                CNL HOSPITALITY PARTNERS, LP, a Delaware limited
                partnership

            
	 
 	 
 	 By: CNL
              HOSPITALITY GP CORP.,
              a Delaware corporation, its General Partner
 
	 	By:  	/s/ John
              X.
              Brady, Jr. 
	 	
              
Name:
              John X. Brady, Jr. 
	 	Title :
              Vice
              President 

    

    

    
      	 	 	 PARENT:
	 	CNL
              HOTELS
              & RESORTS, INC., a
              Maryland corporation
	 
 	 
 	 
 
	 	By:  	/s/ C.
              Brian
              Strickland
	 	
              
Name:
              C. Brian Strickland
	 	Title:
              Executive Vice President 

    

     

     

     

     

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

      	 	 	 
	 	BANK
              OF
              AMERICA, N.A.,
              as
              Administrative Agent
	 
 	 
 	 
 
	 	By:  	/s/ Lesa
              J.
              Butler 
	 	
              
Name:
              Lesa J. Butler 
	 	Title:  Senior
              Vice President

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      	 	 	 
	 	
              BANK
                OF AMERICA, N.A.,
                as
                a Lender and L/C Issuer 

            
	 
 	 
 	 
 
	 	By:  	/s/ Lesa
              J.
              Butler 
	 	
              

              Name: Lesa J. Butler
	 	Title :
              Senior Vice President 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      	 	 	 
	 	DEUTSCHE
              BANK TRUST COMPANY AMERICAS,
              as
              a Lender 
	 
 	 
 	 
 
	
               

            	By:  	/s/ George
              R.
              Reynolds 
	 	
              
Name:
              George R. Reynolds 
	 	Title :
              Vice
              President 

    

     

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	 	By:  	/s/ James
              Rolison 
	 	
              
Name:
              James Rolison 
	 	Title:
              Director 

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      	 	 	 
	 	WACHOVIA
              BANK, NATIONAL ASSOCIATION,
              as
              a Lender 
	 
 	 
 	 
 
	 	By:  	/s/ Dean
              R.
              Whitehall
	 	
              
Name:Dean
              R. Whitehall
	 	Title:
               Vice President

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

     

     

      	 	 	 
	 	
              CALYON
                NEW YORK BRANCH,
                as
                a Lender 

            
	 
 	 
 	 
 
	 	By:  	/s/ Jan
              Hazelton 
	 	
              

              Name: Jan Hazelton 
	 	Title:
              Director 

    

     

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	 	By:  	/s/ Linda
              D.
              Tulloch
	 	
              
Name:
              Linda D. Tulloch 
	 	Title:
              Director

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	 	 
	 	CITICORP
              NORTH AMERICA, INC.,
              as
              a Lender 
	 
 	 
 	 
 
	 	By:  	/s/ Jean
              M.
              Craig 
	 	
              

              Name: Jean M. Craig 
	 	Title:
              Vice President 

    

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	 	 
	 	BARCLAYS
              CAPITAL REAL ESTATE INC.,
              as
              a Lender 
	 
 	 
 	 
 
	 	By:  	/s/ LoriAnn
              Rung 
	 	
              

              Name: LoriAnn Rung 
	 	Title:
              Vice President 

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

        
          

           

        

      

    

    SCHEDULE
      2.1

    

    COMMITMENTS

    AND
      APPLICABLE PERCENTAGES

    

    
      	
              Lender

               

            	
              Commitment

               

            	
              Applicable
                Percentage

               

            
	
               

              Bank
                of America N.A.

               

            	
               

              $46,666,666.67

               

            	
               

              19.44444446%

               

            
	
               

              Deutsche
                Bank Trust Company Americas

            	
               

              $45,000,000.00

               

            	
               

              18.750000000%

            
	
               

              Wachovia
                Bank, National Association

            	
               

              $45,000,000.00

               

            	
               

              18.750000000%

            
	
               

              Calyon
                New York Branch

            	
               

              $33,333,333.33

               

            	
               

              13.888888888%

            
	
               

              Citicorp
                North America, Inc.

            	
               

              $35,000,000.00

               

            	
               

              14.583333333%

            
	
               

              Barclays
                Capital Real Estate Inc.

            	
               

              $35,000,000.00

               

            	
               

              14.583333333%

            
	
               

              Total

            	
               

              $240,000,000.00

               

            	
               

              100.000000000%

            

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      C

    

    FORM
      OF COMPLIANCE CERTIFICATE

    

    Financial
      Statement Date:  ,
       

    
      	
              To:

            	
              Bank
                of America, N.A., as Administrative
                Agent

            

    

     

    Ladies
      and Gentlemen:

    

    Reference
      is made to that certain Credit Agreement, dated as of September 30, 2005
      (as amended, restated, extended, supplemented, or otherwise modified in writing
      from time to time, the “Agreement;”
the
      terms defined therein being used herein as therein defined), among CNL
      Hospitality Partners, LP, a Delaware limited partnership (“Borrower”),
      CNL
      Hotels & Resorts, Inc., a Maryland corporation, the Lenders from time to
      time party thereto, and Bank of America, N.A., as Administrative Agent and
      L/C
      Issuer.

    

    The
      undersigned Responsible Officer hereby certifies as of the date hereof that
      he/she is the ______________________ of Borrower, and that, as such, he/she
      is
      authorized to execute and deliver this Certificate to Administrative Agent
      on
      the behalf of Borrower, and that:

    

    [Use
      following paragraph 1 for fiscal year-end
      financial statements]

    

    1. Attached
      hereto as Schedule 1
      are the
      year-end audited financial statements required by Section 7.01(a)
      of the
      Agreement for the fiscal year of Borrower ended as of the above date, together
      with the report and opinion of an independent certified public accountant
      required by such section.

    

    [Use
      following paragraph 1 for fiscal quarter-end
      financial statements]

    

    1. Attached
      hereto as Schedule 1
      are the
      unaudited financial statements required by Section 7.01(b)
      of the
      Agreement for the fiscal quarter of Borrower ended as of the above date. Such
      financial statements fairly present the financial condition, results of
      operations and cash flows of Borrower and its Subsidiaries in accordance with
      GAAP as at such date and for such period, subject only to normal year-end audit
      adjustments and the absence of footnotes.

    

    2. The
      undersigned has reviewed and is familiar with the terms of the Agreement and
      has
      made, or has caused to be made under his/her supervision, a detailed review
      of
      the transactions and condition (financial or otherwise) of Borrower during
      the
      accounting period covered by the attached financial statements.

    

    3. A
      review
      of the activities of Borrower during such fiscal period has been made under
      the
      supervision of the undersigned with a view to determining whether during such
      fiscal period Borrower performed and observed all its Obligations under the
      Loan
      Documents, and [select one:]

    

    [to
      the
      best knowledge of the undersigned during such fiscal period, Borrower performed
      and observed each covenant and condition of the Loan Documents applicable to
      it.] 

    --or--

    [the
      following covenants or conditions have not been performed or observed and the
      following is a list of each such Default and its nature and
      status:]

    

    4. The
      representations and warranties of Borrower contained in Article VI
      of the
      Agreement, or which are contained in any document furnished at any time
      under
      or in
      connection with the Loan Documents, are true and correct on and as of the date
      hereof, except to the extent that such representations and warranties
      specifically refer to an earlier date, in which case they are true and correct
      as of such earlier date,
      and
      except that for purposes of this Compliance Certificate, the representations
      and
      warranties contained in subsections (a) and (b) of Section 6.05
      of the
      Agreement shall be deemed to refer to the most recent statements furnished
      pursuant to clauses (a) and (b), respectively, of Section 7.01
      of the
      Agreement, including the statements in connection with which this Compliance
      Certificate is delivered.

    

    5. The
      financial covenant analyses and information set forth on Schedule 2
      attached
      hereto are true and accurate on and as of the date of this
      Certificate.

     

    IN
      WITNESS WHEREOF,
      the
      undersigned has executed this Certificate as of
      __________, __, ___.

    

    

    BORROWER:

    

    CNL
      HOSPITALITY PARTNERS, LP,
      a
      Delaware limited partnership

    

    
      	 	
              By:

            	
              CNL
                HOSPITALITY GP CORP.,
                a
                Delaware corporation, its General
                Partner

            

    

    

    

    By:  

    Name:
       

    Title: 

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    For
      the
      Quarter/Year ended ___________________(“Statement
      Date”)

    

      
        	
                SCHEDULE
                  2

                to
                  the Compliance Certificate

                ($
                  in 000’s)

              
	 
	
                I. Section 8.06(d)
                  - Permitted Distributions.

              
	
                A. Line
                  H from prior period ($50,000,000 initial quarter
                  post-closing):  

              
	 
	
                B. Cash
                  Available for Distribution (for the subject quarter):

              
	 
	
                1.
                  Consolidated EBITDA (for the subject quarter):  

              
	 
	
                2.
                  Net refundable membership deposits paid in cash (for
                  the

              
	
                subject
                  quarter):

              
	 
	
                3.
                  Amount of scheduled principal payments on Consolidated Indebtedness
                  (for
                  the subject quarter):  

              
	 
	
                4.
                  Consolidated Interest Charges (for the subject quarter):  

              
	 
	
                5.
                  Cash Available for Distribution (for the subject quarter)
                  

              
	
                (I.B.1
                  + 2 - 3 - 4):    

              
	 
	
                C. Permitted
                  Distributions (A + B.5):  

              
	 
	
                D. Dividends
                  or distributions paid by Parent (for the subject quarter):  

              
	 
	
                E. Retirement,
                  purchase, or redemption of any of its Equity Interests (for the
                  subject
                  quarter):     

              
	 
	
                F. Restricted
                  Payments (for the subject quarter) (D + E):  

              
	 
	
                G. Excess
                  (deficit) for covenant compliance (C - F):  

              
	 
	
                H. If
                  deficit in G, has Parent made dividends or distributions in excess
                  of
                  minimum required to maintain REIT status? (yes or no):  

              
	
                (If
                  H = “no,” then in compliance) 

              
	 
	
                II. Section 8.15(b)
                  - Consolidated Leverage Ratio.

              
	
                A. Consolidated
                  Funded Indebtedness (other than Excluded Contingent Obligations)
                  at
                  Statement Date:  $ 

                 

              
	
                B. Consolidated
                  EBITDA   $ 

                 

              
	
                C. Consolidated
                  Leverage Ratio (Line II.A.  ̧ 

                 

                (Line
                  II.B  ̧
                  .085)):    %

                 

              
	
                Maximum
                  permitted: 75%

                 

              
	 
	
                III. Section 8.15(c)
                  - Consolidated Fixed Charge Coverage Ratio.

              
	
                A. Consolidated
                  EBITDA:

                 

              
	
                1. Consolidated
                  Net Income for Subject Period: $ 

                 

              
	
                2. Consolidated
                  Interest Charges for Subject Period: $ 

                 

              
	
                3. Provision
                  for income taxes for Subject Period: $ 

                 

              
	
                4. Depreciation
                  expenses for Subject Period: $ 

                 

              
	
                5. Amortization
                  expenses for intangibles for Subject Period: $ 

                 

              
	
                6. FF&E
                  Reserves:  $ 

                 

              
	
                7. Consolidated
                  EBITDA (Lines III.A.1 + 2 + 3 + 4 + 5 - 6):  $ 

                 

              
	
                B. Fixed
                  Charges:

                 

              
	
                1. Debt
                  service:   $ 

                 

              
	
                2. Restricted
                  Payments:  $ 

                 

              
	
                3. Fixed
                  Charges (Line III.D.1 plus
                  Line III.D.2): $ 

                 

              
	
                C. Consolidated
                  Fixed Charge Coverage Ratio 

              
	
                [(Line
                  III.A.7. + Line III.B. + Line III.C.)  ̧
                  (Line III.D.3)]:  to
                  1

              
	
                Minimum
                  required:
                  1.40
                  to 1.0

              
	 

      

    

    

    
      	
              IV.

            	
              Section 8.15(d)
                - Borrowing Base Debt Service Coverage
                Ratio.

            

    

    See
      Borrowing Base Report for a calculation of the ratio.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
      E

     

    

    ASSIGNMENT
      AND ASSUMPTION

     

    This
      Assignment and Assumption (this “Assignment and Assumption”) is dated as of the
      Effective Date set forth below and is entered into by and between
      [the][each]1  Assignor
      identified in item 1 below ([the][each, an] “Assignor”) and
      [the][each] Assignee
      identified in item 2 below ([the][each, an] “Assignee”). [It is understood and
      agreed that the rights and obligations of [the Assignors][the
      Assignees]2  hereunder
      are several and not joint.]3  
      Capitalized terms used but not defined herein shall have the meanings given
      to
      them in the Credit Agreement identified below (the “Credit Agreement”), receipt
      of a copy of which is hereby acknowledged by the Assignee. The Standard Terms
      and Conditions set forth in Annex 1 attached hereto are hereby agreed to and
      incorporated herein by reference and made a part of this Assignment and
      Assumption as if set forth herein in full.

    

    For
      an
      agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns
      to [the Assignee][the respective Assignees], and [the][each] Assignee hereby
      irrevocably purchases and assumes from [the Assignor][the respective Assignors],
      subject to and in accordance with the Standard Terms and Conditions and the
      Credit Agreement, as of the Effective Date inserted by the Administrative Agent
      as contemplated below (i) all of [the Assignor’s][the respective Assignors’]
      rights and obligations in [its capacity as a Lender][their respective capacities
      as Lenders] under the Credit Agreement and any other documents or instruments
      delivered pursuant thereto to the extent related to the amount and percentage
      interest identified below of all of such outstanding rights and obligations
      of
      [the Assignor][the respective Assignors] under the respective facilities
      identified below (including, without limitation, the Letters of Credit included
      in such facilities) and (ii) to the extent permitted to be assigned under
      applicable law, all claims, suits, causes of action and any other right of
      [the
      Assignor (in its capacity as a Lender)][the respective Assignors (in their
      respective capacities as Lenders)] against any Person, whether known or unknown,
      arising under or in connection with the Credit Agreement, any other documents
      or
      instruments delivered pursuant thereto or the loan transactions governed thereby
      or in any way based on or related to any of the foregoing, including, but not
      limited to, contract claims, tort claims, malpractice claims, statutory claims
      and all other claims at law or in equity related to the rights and obligations
      sold and assigned pursuant to clause (i) above (the rights and obligations
      sold
      and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses
      (i) and (ii) above being referred to herein collectively as [the][an] “Assigned
      Interest”). Each such sale and assignment is without recourse to [the][any]
      Assignor and, except as expressly provided in this Assignment and Assumption,
      without representation or warranty by [the][any] Assignor.

    

    1. Assignor[s]: ______________________________

    

    ______________________________

    

    2. Assignee[s]: ______________________________

    

    ______________________________

    
      	 	
              [for
                each Assignee, indicate [Affiliate][Approved Fund] of [identify
                Lender]]

            

    

    

    3. Borrower: CNL
      Hospitality Partners, LP

    

    
      	
              4.

            	
              Administrative
                Agent:

            	
              Bank
                of America, N.A., as Administrative Agent under the Credit
                Agreement

            

    

    

    5. Credit
      Agreement: The
      Credit Agreement, dated as of September 30, 2005, among CNL Hospitality
      Partners, LP, a Delaware limited partnership, CNL Hotels & Resorts, Inc., a
      Maryland corporation, the Lenders parties thereto, and Bank of America, N.A.,
      as
      Administrative Agent

    

    6. Assigned
      Interest[s]:4 The
      reference to “Loans” in the table should be used only if the Credit Agreement
      provides for Term Loans.

    

    
      	
               

               

               

              Assignor[s]5 List
                each Assignor, as appropriate.

            	
               

               

               

              Assignee[s]6 List
                each Assignee, as appropriate.

            	
               

               

              Facility

              Assigned7 Fill
                in the appropriate terminology for the types of facilities under
                the
                Credit Agreement that are being assigned under this Assignment (e.g.
                “Revolving Credit Commitment”, “Term Loan Commitment”,
                etc.).

            	
              Aggregate

              Amount
                of

              Commitment

              for
                all Lenders8  Amounts
                in this column and in the column immediately to the right to be adjusted
                by the counterparties to take into account any payments or prepayments
                made between the Trade Date and the Effective Date.

            	
              Amount
                of

              Commitment

              Assigned

            	
              Percentage

              Assigned
                of

              Commitment

            	
               

               

              CUSIP

              Number

            
	 	 	 	 	 	 	 
	 	 	
              ____________

            	
              $________________

            	
              $_________

            	
              ____________%

            	 
	 	 	
              ____________

            	
              $________________

            	
              $_________

            	
              ____________%

            	 
	 	 	
              ____________

            	
              $________________

            	
              $_________

            	
              ____________%

            	 

    

    

    [7. Trade
      Date: __________________]9 To
      be completed if the Assignor and the Assignee intend that the minimum assignment
      amount is to be determined as of the Trade Date.

    Effective
      Date: __________________, 20__ 

    [TO
      BE
      INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF
      RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

    
      
        

         

         

         

      

      
         

        
          

        

      

      
         

      

    

    

    The
      terms
      set forth in this Assignment and Assumption are hereby agreed to:

    

    ASSIGNOR

    [NAME
      OF
      ASSIGNOR]

    

    By:
      _____________________________

    Title:

    

    ASSIGNEE

    [NAME
      OF
      ASSIGNEE]

    

    By:
      _____________________________

    Title:

    [Consented
      to and]10 
      Accepted:

    

    BANK
      OF
      AMERICA, N.A., as

    Administrative
      Agent

    

    By:
      _________________________________

    Title:

    

    [Consented
      to:]11 

    

    By:
      _________________________________

    Title:

    
      
        

         

         

         

      

      
         

        
          

        

      

      
         

      

    

    

    ANNEX
      1 TO ASSIGNMENT AND ASSUMPTION

    

    CNL
      HOSPITALITY PARTNERS, LP CREDIT AGREEMENT

    

    STANDARD
      TERMS AND CONDITIONS FOR 

    ASSIGNMENT
      AND ASSUMPTION

    

    1. Representations
      and Warranties.

    

    1.1. Assignor.
      [The][Each] Assignor (a) represents and warrants that (i) it is the legal and
      beneficial owner of [the][[the relevant] Assigned Interest, (ii) [the][such]
      Assigned Interest is free and clear of any lien, encumbrance or other adverse
      claim and (iii) it has full power and authority, and has taken all action
      necessary, to execute and deliver this Assignment and Assumption and to
      consummate the transactions contemplated hereby; and (b) assumes no
      responsibility with respect to (i) any statements, warranties or representations
      made in or in connection with the Credit Agreement or any other Loan Document,
      (ii) the execution, legality, validity, enforceability, genuineness, sufficiency
      or value of the Loan Documents or any collateral thereunder, (iii) the financial
      condition of the Borrower, any of its Subsidiaries or Affiliates or any other
      Person obligated in respect of any Loan Document or (iv) the performance or
      observance by the Borrower, any of its Subsidiaries or Affiliates or any other
      Person of any of their respective obligations under any Loan
      Document.

    

    1.2. Assignee.
      [The][Each] Assignee (a) represents and warrants that (i) it has full power
      and
      authority, and has taken all action necessary, to execute and deliver this
      Assignment and Assumption and to consummate the transactions contemplated hereby
      and to become a Lender under the Credit Agreement, (ii) it meets all the
      requirements to be an assignee under Section
      11.07(b)(iii),
      (v)
      and
(vi)
      of the
      Credit Agreement (subject to such consents, if any, as may be required under
      Section
      11.07(b)(iii)
      of the
      Credit Agreement), (iii) from and after the Effective Date, it shall be bound
      by
      the provisions of the Credit Agreement as a Lender thereunder and, to the extent
      of [the][the relevant] Assigned Interest, shall have the obligations of a Lender
      thereunder, (iv) it is sophisticated with respect to decisions to acquire assets
      of the type represented by [the][such] Assigned Interest and either it, or
      the
      Person exercising discretion in making its decision to acquire [the][such]
      Assigned Interest, is experienced in acquiring assets of such type, (v) it
      has
      received a copy of the Credit Agreement, and has received or has been accorded
      the opportunity to receive copies of the most recent financial statements
      delivered pursuant to Section
      7.01
      thereof,
      as applicable, and such other documents and information as it deems appropriate
      to make its own credit analysis and decision to enter into this Assignment
      and
      Assumption and to purchase [the][such] Assigned Interest, (vi) it has,
      independently and without reliance upon the Administrative Agent or any other
      Lender and based on such documents and information as it has deemed appropriate,
      made its own credit analysis and decision to enter into this Assignment and
      Assumption and to purchase [the][such] Assigned Interest, and (vii) if it is
      a
      Foreign Lender, attached hereto is any documentation required to be delivered
      by
      it pursuant to the terms of the Credit Agreement, duly completed and executed
      by
      [the][such] Assignee; and (b) agrees that (i) it will, independently and without
      reliance upon the Administrative Agent, [the][any] Assignor or any other Lender,
      and based on such documents and information as it shall deem appropriate at
      the
      time, continue to make its own credit decisions in taking or not taking action
      under the Loan Documents, and (ii) it will perform in accordance with their
      terms all of the obligations which by the terms of the Loan Documents are
      required to be performed by it as a Lender.

    

    2. Payments.
      From
      and after the Effective Date, the Administrative Agent shall make all payments
      in respect of [the][each] Assigned Interest (including payments of principal,
      interest, fees and other amounts) to [the][the relevant] Assignor for amounts
      which have accrued to but excluding the Effective Date and to [the][the
      relevant] Assignee for amounts which have accrued from and after the Effective
      Date.

     

    3.  General
      Provisions.
      This
      Assignment and Assumption shall be binding upon, and inure to the benefit of,
      the parties hereto and their respective successors and assigns. This Assignment
      and Assumption may be executed in any number of counterparts, which together
      shall constitute one instrument. Delivery of an executed counterpart of a
      signature page of this Assignment and Assumption by telecopy shall be effective
      as delivery of a manually executed counterpart of this Assignment and
      Assumption. This Assignment and Assumption shall be governed by, and construed
      in
      accordance with, the law of the State of New York.

    

      

      
        
 

      

    

    
      
        
          

          
            4 The
              reference to “Loans” in the table should be used only if the Credit Agreement
              provides for Term Loans.

            5 List
              each
              Assignor, as appropriate.

            6 List
              each
              Assignee, as appropriate.

            7 Fill
              in
              the appropriate terminology for the types of facilities under the Credit
              Agreement that are being assigned under this Assignment (e.g. “Revolving Credit
              Commitment”, “Term Loan Commitment”, etc.).

            8 Amounts
              in this column and in the column immediately to the right to be adjusted
              by the
              counterparties to take into account any payments or prepayments made
              between the
              Trade Date and the Effective Date.

            9
              To
              be
              completed if the Assignor and the Assignee intend that the minimum
              assignment
              amount is to be determined as of the Trade Date.

          

           

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

    RATIFICATION

    

    To
      induce
      Administrative Agent, L/C Issuer, and Lenders (collectively, the “Credit
      Parties”)
      to
      enter into this Third
      Amendment to Credit Agreement, the undersigned jointly and severally
      (a) consent and agree to this Third Amendment to Credit Agreement execution
      and delivery, (b) ratify and confirm that all guaranties, assurances, and Liens
      granted, conveyed, or assigned to the Credit Parties under the Loan Documents,
      including, without limitation, the Liens granted under the Mortgages, are not
      released, diminished, impaired, reduced, or otherwise adversely affected by
      this
      Third Amendment to Credit Agreement and continue to guarantee, assure, and
      secure the full payment and performance of all present and future Obligations,
      including, without limitation, the increase in the Obligations as contemplated
      by this Third Amendment to Credit Agreement (except to the extent specifically
      limited by the terms of such guaranties, assurances, or Liens), and (c) waive
      notice of acceptance of this Third Amendment to Credit Agreement, which consent
      and agreement binds the undersigned and their successors and permitted assigns
      and inures to the Credit Parties and their respective successors and permitted
      assigns.

    

    RFS
      PARTNERSHIP, L.P.,
      a
      Tennessee limited partnership

    

    By: CNL
      ROSE GP CORP.,
      a
      Delaware corporation, its General Partner

    

    

    By:   

    Name:  

    Title:  

    

    

    ROSE
      SPE 1, LP, a
      Delaware limited partnership

    

    By: ROSE
      SPE 1 GP, LLC,
      a
      Delaware limited liability company, its General Partner

    

    By:   

    Name:  

    Title:  

    

    

    CNL
      TAMPA INTERNATIONAL HOTEL PARTNERSHIP, LP,
      

    a
      Delaware limited partnership

    

    By: CNL
      TAMPA INTERNATIONAL GP, LLC,
      a
      Delaware limited liability company, its General Partner

    

    By:   

    Name:  

    Title:  

    

    
      
         

      

      
        

          10 To
            be added only if the consent of the Administrative Agent is required
            by the
            terms of the Credit Agreement.

          11 To
            be
            added only if the consent of the Borrower and/or other parties (e.g.
            L/C Issuer)
            is required by the terms of the Credit Agreement.

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