Document:

EXHIBIT 10.28

                              MANAGEMENT AGREEMENT

                                       for

                               ------------------
                               ------------------

                                 by and between

                               ------------------

                                   as Lessee,

                                       and

                       Wright Hospitality Management, LLC,
                    a Tennessee limited liability corporation

                                   as Manager,

                              Dated ______________

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                                Table of Contents

Table of Contents..............................................................i

PRELIMINARY STATEMENT..........................................................1

1.    APPOINTMENT AND TERM.....................................................1

   1.01     Appointment........................................................1
   1.02     Operating Term.....................................................1
   1.03     Management Authority...............................................1
   1.04     Limitations on Manager.............................................2

2.    HOTEL OPERATIONS.........................................................2

   2.01     Hotel Management Services..........................................2
   2.02     Employees..........................................................4

3.    ANNUAL PLAN..............................................................5

   3.01     Preparation and Submission.........................................5
   3.02     Lessee's Approval..................................................5
   3.03     Compliance with Annual Plan........................................6
   3.04     Agreement Limitations..............................................6
   3.05     Emergencies........................................................6

4.    HOTEL ACCOUNTS; MAINTENANCE OF MINIMUM BALANCE...........................7

   4.01     Hotel Bank Accounts................................................7
   4.02     Minimum Balance....................................................7

5.    BOOKS AND RECORDS........................................................7

   5.01     Maintenance of Books and Records...................................7
   5.02     Location; Examination and Inspection...............................7
   5.03     Lessee to Receive all Books and Records Upon Termination...........7
   5.04     Reports to Lessee..................................................8
   5.05     Final Accounting...................................................8
   5.06     Form of Reports....................................................9

6.    MANAGEMENT FEES AND EXPENSES.............................................9

   6.01     Management Fees....................................................9
   6.02     Reimbursement of Costs and Expenses................................9
   6.03     Rebates and Discounts.............................................10

7.    DISBURSEMENTS...........................................................10

   7.01     Priority of Payments..............................................10

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8.    INSURANCE...............................................................10

   8.01     Maintenance of Insurance..........................................10
   8.02     Lessee Methods of Obtaining Insurance.............................11
   8.03     Coverages.........................................................11
   8.04     Responsibility for Premiums.......................................12
   8.05     Replacement Cost..................................................12
   8.06     Waiver of Subrogation and Indemnities.............................12
   8.07     Form Satisfactory, etc............................................13
   8.08     Increase in Limits................................................13
   8.09     Blanket Policy....................................................13
   8.10     Separate Insurance................................................13
   8.11     Reports on Insurance Claims.......................................14
   8.12     Deductibles to be Operating Expenses..............................14

9.    INDEMNITIES.............................................................14

   9.01     Indemnification of Manager........................................14
   9.02     Indemnification of Lessee.........................................14
   9.03     Indemnified Parties...............................................15
   9.04     Certain Claims to be Operating Expenses...........................15

10.      CONDEMNATION.........................................................15

   10.01       Definitions....................................................15
   10.02       Parties' Rights and Obligations................................15
   10.03       Total Taking...................................................15
   10.04       Partial Taking.................................................16
   10.05       Temporary Taking...............................................16

11.      CASUALTY.............................................................17

   11.01       Insurance Proceeds.............................................17
   11.02       Reconstruction - Damage or Destruction Covered by Insurance....17
   11.03       Reconstruction - Damage or Destruction not Covered by
                 Insurance....................................................18
   11.04       Abatement......................................................18
   11.05       Damage Near End of Term........................................18

12.      DEFAULT..............................................................18

   12.01       Events of Default by Manager...................................18
   12.02       Lessee Default.................................................20
   12.03       Unavoidable Delay..............................................20
   12.04       Damages........................................................20
   12.05       Litigation Costs...............................................20

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13.      LESSEE'S TERMINATION WITHOUT AN EVENT OF DEFAULT.....................21

   13.01       Without Payment of Termination Fee.............................21
   13.02       With Payment of Termination Fee................................21

14.      DEFINITIONS..........................................................21

15.      GENERAL PROVISIONS...................................................24

   15.01       Estoppel Certificates..........................................24
   15.02       Arbitration....................................................25
   15.03       Telecommunications Leases and Licenses.........................26
   15.04       No Partnership or Joint Venture................................26
   15.05       Modifications and Charges......................................26
   15.06       Understandings and Agreements..................................26
   15.07       Headings.......................................................26
   15.08       Survival of Covenants..........................................27
   15.09       Waivers........................................................27
   15.10       Applicable Law.................................................27
   15.11       Notices........................................................27
   15.12       Binding Effect.................................................27
   15.13       Confidentiality................................................28
   15.14       Conflicts......................................................28
   15.15       Third Party Beneficiary........................................28
   15.16       Subordination..................................................28
   15.17       Time of the Essence............................................28
   15.18       Counterparts...................................................28

SCHEDULE I - Terms of Agreement...............................................31

SCHEDULE II - Management Services Included in Management Fee..................33

SCHEDULE III - Sample Statement of Profit and Loss............................35

SCHEDULE IV - Definition of Capital Replacements..............................36

SCHEDULE V - STR Competitive Set..............................................39

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                              MANAGEMENT AGREEMENT

         THIS MANAGEMENT AGREEMENT (this "Agreement") is made as of the ________
day of ____________, by and between ____________________________ ("Lessee")  and
Wright Hospitality Management, LLC, a Tennessee limited  liability  corporation
(hereinafter referred to as "Manager").

                              PRELIMINARY STATEMENT

         A. Lessee is the lessee of the Hotel described on Schedule I.

         B. Manager is an independent contractor engaged in the management of
hotels throughout the United States, and Manager is experienced in the various
phases of hotel operations.

         C. Lessee is desirous of utilizing the services and experience of
Manager in connection with the operation of the hotel, and Manager desires to
render such services, all upon the terms and conditions hereinafter set forth.

1. APPOINTMENT AND TERM.

1.01     Appointment.

Lessee hereby appoints Manager as manager of the Hotel with the obligation to
direct, supervise, manage and operate the Hotel on the terms set forth herein.
Lessee will not employ any other manager to manage the Hotel during the Term.

1.02     Operating Term.

The initial operating term (the "Initial Term") of this Agreement will commence
at 12:01 A.M. on the date identified on Schedule I (the "Commencement Date") and
terminate at 11:59 on the expiration date identified on Schedule I (the
"Expiration Date"). Thereafter, the Term of this Agreement shall continue on a
month-to-month basis for a maximum term of six additional months, and Lessee
shall have the right to terminate this Agreement upon thirty (30) days prior
written notice to Manager. The Initial Term, as extended pursuant to the
preceding sentence, shall be referred to herein as the "Term." In no event shall
the Term of this Agreement exceed the term of the License Agreement.

1.03     Management Authority.

Manager shall have the sole and exclusive right and obligation to manage and
operate the Hotel pursuant to the terms of this Agreement and Manager agrees
that it shall manage and operate the Hotel as a first class hotel in accordance
with the standards of the Franchisor, taking into account the size, location and
character of the Hotel.

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1.04     Limitations on Manager.

During the Term and any renewal thereof, Manager agrees that:

(A) Manager shall not permit wagering activities to be conducted at or in
connection with the Hotel;

(B) Manager shall not own, directly or indirectly (within the meaning of Section
856(d)(5) of the Internal Revenue Code of 1986, as amended (the "Code")), more
than 35% of the shares of Equity Inns, Inc.;

(C) No more than 35% of the total combined voting power of Manager's outstanding
stock (or 35% of the total share of all classes of its outstanding stock) shall
be owned, directly or indirectly, by one or more persons owning 35% or more of
the outstanding stock of Equity Inns, Inc.; and

(D) Manager (or a person who is a "related person" within the meaning of Section
856(d)(9)(F) of the Code (a "Related Person") with respect to the Manager shall
be actively engaged in the trade or business of operating "qualified lodging
facilities" (defined below) for one or more persons who are not Related Persons
with respect to Equity Inns, Inc. or Lessee ("Unrelated Persons"). In order to
meet this requirement, Manager agrees that it (or a Related Person with respect
to Manager (i) shall derive at least 10% of both its revenue and profit from
operating "qualified lodging facilities" for Unrelated Persons and (ii) shall
comply with any regulations or other administrative guidance under Section
856(d)(9) of the Code with respect to the amount of hotel management business
with Unrelated Persons that is necessary to qualify as an "eligible independent
contractor" with the meaning of such Code Section.

         A "qualified lodging facility" is defined in Section 856(d)(9)(D) of
the Code and means a "lodging facility" (defined below), unless wagering
activities are conducted at or in connection with such facility by any person
who is engaged in the business of accepting wagers and who is legally authorized
to engage in such business at or in connection with such facility. A "lodging
facility" is a hotel, motel or other establishment more than one-half of the
dwelling units in which are used on a transient basis, and includes customary
amenities and facilities operated as part of, or associated with, the lodging
facility so long as such amenities and facilities are customary for other
properties of a comparable size and class owned by other entities unrelated to
Equity Inns, Inc. In the event that Manager fails to comply with any of the
provisions of this Section 1.04, the same shall not be deemed an Event of
Default hereunder, but Lessee shall have the right to terminate this Agreement.

2. HOTEL OPERATIONS.

2.01     Hotel Management Services.

(A) Manager will manage the Hotel in accordance with standards and policies
appropriate for the operation of comparable facilities, including the standards
and policies of the Franchisor. Manager will perform those activities typically
performed by management companies operating comparable facilities, including
those activities contained on Schedule II, but only to the extent that
sufficient funds are available to Manager to perform those activities.

<PAGE>

(B) Manager shall have the right to establish all prices, price schedules, rates
and rate schedules, rents, lease charges, and concession charges, all within the
parameters of the approved Annual Plan; provided, "trade-outs" in excess of one
thousand dollars ($1,000) per month shall be approved by Lessee. The Manager
shall have the right to administer leases, license and concession agreements for
all public space at the Hotel, including all stores, office space and lobby
space. All such leases, licenses or concessions shall be in Lessee's name and
may be executed by Manager on Lessee's behalf; provided, however, any such
lease, license or concession for a term in excess of one (1) year shall be
approved by Lessee, which approval shall not be unreasonably withheld or
delayed. Manager shall have the right and the obligation to negotiate and enter
into, on behalf of the Lessee, service contracts and licenses required in the
ordinary course of business in operating the Hotel, provided, however, any
contract for a term in excess of one (1) year shall be approved by Lessee, which
approval shall not be unreasonably withheld or delayed. Upon termination of this
Management Agreement, Manager shall assign any such service contracts and
licenses to the successor manager, who shall agree to assume responsibility for
said items. Manager shall sign such documents as are reasonably necessary to
effectuate the assignment and assumption.

(C) Manager will keep the Hotel and all private roadways, sidewalks and curbs
appurtenant thereto that are under Manager's control, including windows and
plate glass, parking lots, HVAC, mechanical, electrical and plumbing systems and
equipment (including conduit and ductware), and non-load bearing interior walls,
in good order and repair, except for ordinary wear and tear (whether or not the
need for such repairs occurred as a result of Manager's use, any prior use, the
elements or the age of the Hotel or portion thereof), and, except as otherwise
provided in the provisions of this Agreement regarding hazard insurance,
condemnation proceeds and Capital Replacements, with reasonable promptness, make
all necessary and appropriate maintenance, repairs, replacements, and
improvements thereto of every kind and nature, whether interior or exterior
ordinary or extraordinary, foreseen or unforeseen or arising by reason of a
condition existing prior to the commencement of the Term of this Agreement
(concealed or otherwise), or required by any governmental agency having
jurisdiction over the Hotel in such manner as to minimize current and future
Capital Replacements. The cost of all such maintenance and repairs shall be
deemed an Operating Expense. All repairs shall, to the extent reasonably
achievable, be at least equivalent in quality to the original work. Manager will
not take or omit to take any action, the taking or omission of which might
materially impair the value or the usefulness of the Hotel or any part thereof
for its Primary Intended Use.

(D) Manager shall regularly and consistently perform and shall maintain precise
records of an ongoing preventative maintenance program, the cost of which shall
be deemed an Operating Expense. Such preventative maintenance program shall be
performed as frequently as is necessary to maintain the subject equipment or the
Hotel in a first class condition and include (but not be limited to) the
following:

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      $  Carpet cleaning
      $  Carpet and upholstery stain removal
      $  HVAC maintenance (including filter cleaning and replacement)
      $  Boilers
      $  Painting (including door frames)
      $  FF&E repair and touch up
      $  Exterior cleaning (including power washing of building and sidewalks)

Manager shall maintain the Hotel (interior and exterior), including all public
and back of the house areas, at a high level of cleanliness at all times.

2.02     Employees.

(A) Manager, subject to Lessee's approval, will select a general manager for the
Hotel. Manager will select all other department heads for the Hotel and all
personnel which Manager determines to be necessary for the operation of the
Hotel (collectively "Employees"). All Employees will be employed at Lessee's
cost and expense, but will be employees of Manager; provided that wages and
related expenses will be deemed Operating Expenses and will be set forth in the
approved Annual Plan. Manager agrees that neither the general manager nor the
lead salesperson at the Hotel may be transferred to another hotel or similar
property owned, leased, or managed by Manager or any of its Affiliates in the
same Market Tract as determined by Smith Travel Research without the consent of
the Lessee. In the event that Manager desires to make such a transfer, Manager
shall submit its request to Lessee in writing, and Lessee shall respond to the
request in writing, within fifteen (15) days following receipt of Manager's
request. If Lessee fails to respond to Manager's request within such fifteen
(15) day period, Lessee shall be deemed to have consented to the transfer. The
Manager shall set all personnel policies.

(B) Subject to the approved Annual Plan, all decisions with regard to the terms
of employment, including but not limited to compensation, bonuses, fringe
benefits, discharge and replacement of all Employees, will be made and
implemented directly by Manager or through the general manager, department heads
or any of their designees under the supervision of Manager.

(C) Manager will enroll the Employees in Manager's employee benefits program
(the "Benefits Program"). Manager will administer the Benefits Program in the
same manner that it administers the Benefits Program at other Hotel it operates.
The Hotel will be charged as an Operating Expense the cost of such Benefits
Program under the same formula used to calculate the cost charged to other Hotel
Manager operates and such costs shall be set forth in the approved Annual Plan.

<PAGE>

(D) Manager will respond to organizational efforts by unions and in negotiating
and implementing union agreements. With respect to Manager's employees, Manager
will control the terms of any union contract and will not be required to take
actions which will unreasonably increase Manager's liabilities pursuant to the
union contract. Upon termination of this Agreement, Lessee will assume Manager's
obligations under the union contact with respect to any employees hired by
Lessee at that time.

(E) Manager shall indemnify and hold Lessee harmless from and against any and
all actions, suits, claims, penalties, losses, damages and expenses, including
reasonable attorneys' fees, based upon or arising out of Manager's gross
negligence or willful misconduct in connection with the employment of any and
all Hotel employees, including but not limited to any claims based upon
discrimination in employment.

3. ANNUAL PLAN.

3.01     Preparation and Submission.

Lessee and Manager acknowledge that the budgeting process is a critical factor
to the successful operation of the Hotel and also a key communication link
between the parties. Manager will submit to Lessee, for its approval, not later
than the dates indicated below the proposed annual plan for the Hotel (the
"Annual Plan"). The Manager shall submit to the Lessee no later than thirty (30)
days after the Commencement Date of this Agreement for the first partial
operation year and no later than November 1 of the year prior to the applicable
Operating Year, a statement of the estimated gross revenues, gross expenses and
gross operating profit for the Operating Year and prior year actual results,
including Manager's good faith reasonable assumptions as to payroll costs, room
rates and occupancies, which will reflect the estimated results of the operation
during each month of the Operating Year (the "Operating Budget") and a marketing
plan. In preparing all budgets and forecasts and the estimated profit and loss
statements comprising the Annual Plan, Manager will use its good faith
reasonable judgment and will base its estimates upon the most recent and
reliable information available taking into account the location of the Hotel and
Manager's experience in hotel operations. Manager expressly disclaims any
warranty of or representations as to results of operations of the Hotel.

3.02     Lessee's Approval.

Within thirty (30) days following submission of any components of the Annual
Plan to Lessee, Lessee shall give Manager written notice either (a) that Lessee
approves such component of the Annual Plan or (b) indicating with reasonable
specificity the respects in which Lessee objects to such component of the Annual
Plan, or component thereof; provided, however, that Lessee's approval rights
shall not apply with respect to non-discretionary budget items required by law
such as impositions (subject to the right of the Lessee to contest such
impositions or other non-discretionary items). In the latter event, Lessee and
Manager shall act promptly, reasonably and in good faith to seek to resolve
Lessee's objections. In the event that Lessee and Manager fail to reach
agreement with respect to any material component of the Operating Budget or
Annual Plan within thirty (30) days after receipt of Lessee's written notice,
Manager and Lessee shall refer any disputed Operating Budget matter to
arbitration using procedures set forth in Section 16.02 below and each party
shall endeavor to cause such arbitration to be completed as quickly as possible,
but in any event not later than six (6) months following referral to
arbitration. Pending the results of such arbitration or the earlier agreement of

<PAGE>

the parties, (i) as to any matters in the Operating Budget or Annual Plan which
have not been agreed upon, the Hotel will be operated in a manner reflecting the
prior Operating Year's actual results adjusted by multiplying said number by the
number obtained by dividing the average CPI for the twelve months ended on
September 30 of the most recently completed Operating Year by the average CPI
for the twelve months ended on September 30 of the prior Operating year, until a
new Operating Budget is adopted. In the event Lessee fails to deliver the notice
set forth in this section, within the required time period, the component of the
Annual Plan at issue shall be deemed approved.

3.03     Compliance with Annual Plan.

Manager will use good faith reasonable efforts to comply with and operate the
Hotel in accordance with the approved Annual Plan and will not incur any
material additional expense or change materially the manner of operation of the
Hotel without the written approval of Lessee unless an emergency occurs as
provided in Section 3.06.

3.04     Agreement Limitations.

Except as provided in Section 2.01 Manager will not enter into any commitment on
behalf of Lessee requiring payments of amounts in excess of the amount set forth
on Schedule I or requiring performance over a time period in excess of the
period set forth on Schedule I without the prior written approval of Lessee.
Manager shall make no payments to Affiliates as Operating Expenses hereunder
unless expressly set forth in the Operating Budget or otherwise expressly agreed
to in writing by Lessee in advance, in either case, after full written
disclosure by Manager to Lessee of the affiliation, competitive pricing and any
other related information requested by Lessee. Manager may provide Hotel rooms
and services at the Hotel on a complimentary basis without charge or other
consideration to employees of Manager or its Affiliates visiting the Hotel from
outside the area in which the Hotel is located to the extent such practice does
not materially decrease profitability, but Manager shall not provide such
complimentary rooms or service as compensation to parties providing materials or
services to the Manager or an Affiliate of Manager.

3.05     Emergencies.

The limitations of Section 3.05 do not apply to emergency repairs or emergency
actions. For the purposes of this Section 3.06, an emergency means an unforeseen
circumstance that in the opinion of Manager requires immediate action which
cannot be delayed in order to minimize injury to the Hotel or injury to any
person or property, provided that Manager shall give Lessee immediate notice of
any such emergency action.

<PAGE>

4. HOTEL ACCOUNTS; MAINTENANCE OF MINIMUM BALANCE.

4.01     Hotel Bank Accounts.

Manager will select all banks with which the Hotel will conduct its various
banking affairs, subject however, to Lessee's approval, not to be unreasonably
withheld. Manager will have no liability for any loss to Lessee as a result of
any bank insolvency or failure or as a result of any negligence or misconduct of
the Bank or its employees. All funds received in the operation of the Hotel will
be deposited into one or more special accounts bearing the name of the Hotel
(the "Hotel Accounts") in the banks so selected. Subject to the provisions of
Section 7, all amounts in the Hotel Accounts are the property of Lessee. The
Lessee's funds will not be co-mingled with funds of the Manager or funds of
other Hotel managed by Manager.

4.02     Minimum Balance.

Upon establishment of the Hotel Accounts, the sum set forth on Schedule I and
designated as the Minimum Balance (the "Minimum Balance") will be deposited in
the Hotel Accounts by the Lessee and will be maintained throughout the Term. All
funds in excess of the Minimum Balance will be transferred bi-weekly to Lessee
on Friday by 12:00 p.m., Eastern Time. Notwithstanding this bi-weekly
distribution, said amounts nonetheless will be subject to adjustment in
accordance with Section 6.01 and 6.02. Any additional funds necessary to
maintain the Minimum Balance will be funded by Lessee no later than one (1)
business day following receipt of a notice to that effect from Manager.

5.       BOOKS AND RECORDS.

5.01     Maintenance of Books and Records.

Manager will keep complete and adequate books of account and such other records
as are necessary to reflect the results of the operation of the Hotel on a
calendar year basis. Manager will keep the books and records for the Hotel in
all material respects in accordance with GAAP or the Uniform System of Accounts,
on an accrual basis.

5.02     Location; Examination and Inspection.

Except for the books and records which may be kept in Manager's home office or
other suitable location pursuant to the adoption of a central billing system or
other centralized service, the books of account and all other records relating
to or reflecting the operation of the Hotel will be the property of Lessee and
will be kept at the Hotel. All books and records will be available to Lessee and
its representatives upon reasonable request for examination, inspection and
transcription.

5.03     Lessee to Receive all Books and Records Upon Termination.

Upon any termination of this Agreement, all original books and records of all
books and records not kept at the Hotel, will be turned over to Lessee forthwith
so as to ensure the orderly continuance of the operation of the Hotel, provided,
however, Manager will at its expense be entitled to retain copies of all books
and records wherever located.

<PAGE>

5.04     Reports to Lessee.

(A) Each month, Manager will deliver to Lessee, a detailed (i) profit and loss
statement showing the results of operation of the Hotel for the prior month and
the year to date, with a comparison to the budgets contained in the then current
Annual Plan and to prior year results; and (ii) balance sheet. Manager also
shall prepare, monthly, for the Hotel, forecasts of occupancy, average daily
rate ("ADR") and revenue per available room ("REVPAR") for that month, and other
reports similar to those produced by Manager or its Affiliates for hotels they
own. Manager shall use its best efforts to deliver these items to Lessee by the
12th of each month; but in no event shall delivery be later than the 15th of the
month. In addition, quarterly, Manager will provide Lessee with a forecast for
Gross Revenues, Gross Operating Profit and Net Operating Profit less insurance
for the remainder of the Operating Year, by month.

(B) Costs of a certified audit or any other reports by an independent certified
public accountant selected by Lessee, if and when requested by Lessee, will be
an expense borne by Lessee and will be coordinated by Manager.

(C) At Lessee's request, Manager will further deliver financial reports required
by third parties. All reasonable costs in producing these reports will be borne
by Lessee.

(D) At Lessee's request, Manager agrees to meet with Lessee via conference call
or in person to discuss the operating results of the Hotel on a quarterly basis,
and will comply with all reasonable requests to meet with Lessee to discuss
other issues.

5.05     Final Accounting.

Upon termination of this Agreement for any reason, Manager will promptly deliver
to Lessee, but will be permitted to retain a copy of, the following:

(A) a final accounting, reflecting the balance of income and expenses of the
Hotel as of the date of termination;

(B) any balance or moneys in the Hotel Accounts, or elsewhere, held by Manager
with respect to the Hotel (after payment or reservation with respect to all
committed obligations), which balance will be distributed in accordance with the
formula set forth in Section 6.01; and

(C) all books and records of the Hotel (including those stored on computerized
software), and all contracts, bookings, reservations, leases, receipts for
deposits, unpaid bills and other records, papers or documents which pertain to
the Hotel, and duplicate copies of the personnel records of employees of the
hotel (provided Manager will not be required to turn over computer software, but
will provide all printouts from the software related to the Hotel).

<PAGE>

5.06     Form of Reports.

All reports will be in Manager's customary detail and form for managed
properties and will be transmitted electronically to Lessee in addition to hard
copies being provided by mail. A sample of the currently used profit and loss
statement is attached as Schedule III.

6.       MANAGEMENT FEES AND EXPENSES.

6.01     Management Fees.

(A) Base Management Fees. In consideration of the services to be performed
during the term of this Agreement by Manager, the Lessee shall pay to the
Manager a periodic base management fee ("Base Management Fee") in the amount of
two percent (2%) of Gross Revenues for each month. Each such periodic fee shall
be paid to Manager (or retained by Manager as provided below) at such time as
the final monthly report for such month is submitted to Lessee pursuant to
Section 5.04.

(B) Incentive Management Fees. In addition to the Base Management Fee and in
consideration of the services to be performed during the term of this Agreement,
the Lessee shall pay to the Manager for each Year (or partial Year), an
incentive fee ("Incentive Management Fee"), at the times and in the amounts
designated on Schedule I.

6.02     Reimbursement of Costs and Expenses.

Lessee will reimburse Manager for all costs and expenses incurred by Manager for
Lessee's account in the ordinary course of business in accordance with the
approved Annual Plan under the terms and provisions of this Agreement and will
include, but not be limited to the following:

(A) the salaries and wages, including costs of payroll taxes, bonuses,
retirement plan contributions, fringe benefits, and related payroll items
incurred with respect to Manager's employees assigned to the Hotel;

(B) Expenses for shared services and purchases (equitably allocated to each
hotel benefiting from the shared services or purchases in a manner consistent
with Manager's allocation policy uniformly applied to all managed hotels) and
reflected in the Annual Plan;

(C) All tourist-class travel expenses, reasonable meals, and customary out of
pocket expenses (i.e., telephone, fax and postage) for home office personnel
(regional operations and sales managers), to the extent directly allocable to
the Hotel and not to other business for such home office personnel and the
salaries of such personnel for such time as such personnel are located at the
Hotel and are performing exclusive full-time services for regular Hotel
Employees.

<PAGE>

         The reimbursement shall be paid out of Operating Revenue no later than
the date of the payment of the Base Management Fee for any month. The Manager
shall retain the Base Management Fee each month, from Gross Operating Profits.

6.03     Rebates and Discounts.

Because of its purchasing power derived through its operations of its
proprietary hotels, its management of hotels, and its franchising of hotels,
Manager may from time to time negotiate rebates and discounts from the vendors
of certain products and services. Manager agrees that the portion of such
rebates and discounts allocable to the Hotel will be passed on to the Lessee.

7.       DISBURSEMENTS.

7.01     Priority of Payments.

All Gross Revenues will be deposited in the Hotel Accounts as and when received.
Manager is authorized to and will disburse on a current basis, on behalf of
Lessee, funds from the Hotel Accounts (to the extent available) in the following
order of priority:

(A) Payment of payroll and payroll taxes and other employment costs identified
in Section 6.02(A), including any sales and use taxes imposed on such costs;

(B) Payment of all remaining sales and use taxes, including sales and use taxes
on fees and reimbursements to Manager;

(C) Payment of all other Operating Expenses;

(D) Payment of the cost of the insurance required under Section 8 and rents
under any Operating Leases;

(E) The Minimum Balance (to be maintained in the Hotel Accounts).

Lessee is solely responsible to pay from its own funds the real and personal
property taxes, other impositions and mortgage debt service payments for the
Hotel.

8.       INSURANCE.

8.01     Maintenance of Insurance.

Lessee shall at all times keep the Hotel insured with the kinds and amounts of
insurance described in Section 8.03 below and in accordance with any mortgage
and the Franchise Agreement with the exception of workers' compensation
insurance and employment practices liability insurance, provided for in Sections
8.03(H) and 8.03(J), respectively. This insurance shall be written by qualified,
solvent companies which can legally write insurance in the state in which the
Hotel is located. The policies must name Lessee and Manager as parties insured,
as their interest may appear, with minimum deductibles customary in the
industry, but in any event, not greater than $25,000. Losses shall be payable to
Lessee except as provided in Section 8.03(D). Subject to Section 8.11 below, any
loss adjustment with respect to the insurance coverages set forth in items (A),
(B) and (C) of Section 8.03 below shall be made by Lessee acting in its sole and
absolute discretion. Evidence of insurance shall be deposited with Manager.

<PAGE>

8.02     Lessee Methods of Obtaining Insurance.

At its option, Lessee may procure and maintain the insurance by (i) undertaking
the procuring of insurance directly in its own name and behalf or (ii) agreeing
to coverage under Manager's blanket policies in accordance with Manager's
proposal at a price established by Manager. Upon and in the event of the
selection of the Manager's insurance policy, such policy shall be deemed
acceptable to the Lessee.

8.03     Coverages.

The policies shall include:

(A) Building insurance of risks on the "Special Form" or "All Risk Form" in an
amount not less than 100% of the then full replacement cost thereof (as defined
in Section 8.05 below) or such other amount which is acceptable to Lessee and
Manager, and personal property insurance on the "Special Form" or "All Risk
Form" in the full amount of the replacement cost thereof;

(B) Earthquake and, if the Hotel is in the 100-year floodplain, flood insurance
in reasonable and adequate amounts as reasonably determined by Lessee;

(C) Insurance for loss or damage (direct and indirect) from steam boilers,
pressure vessels or similar apparatus, now or hereafter installed in the Hotel,
in the minimum amount of $5,000,000 or in such greater amounts as are then
customary or as may be reasonably determined by Lessee from time to time;

(D) Loss of income and business interruption insurance on the "Special Form" or
"All Risk Form", which business interruption proceeds, shall be paid into the
Hotel Accounts and distributed in accordance with the formula set forth in
Section 6.01;

(E) Commercial general liability insurance, with amounts not less than
$40,000,000 covering each of the following: bodily injury, death, or property
damage liability per occurrence, personal and advertising injury, general
aggregate, products and completed operations, and liquor law or "dram shop"
liability, if liquor or alcoholic beverages are served at the Hotel, with
respect to Lessee and Manager;

<PAGE>

(F) Insurance covering such other hazards and in such amounts as may be
customary for comparable properties in the area of the Hotel and is available
from insurance companies, insurance pools or other appropriate companies
authorized to do business in the state in which the Hotel is located at rates
which are economically practicable in relation to the risks covered as may be
reasonably determined by Lessee ;

(G) Fidelity bonds with limits and deductibles as may be reasonably determined
by Lessee, covering Manager's employees in job classifications normally bonded
under prudent hotel management practices in the United States or otherwise
required by law;

(H) Workers' compensation insurance coverage for all persons employed by Manager
at the Hotel. Such workers' compensation insurance shall be in accordance with
the requirements of applicable local, state and federal law, and shall always be
procured and maintained by Manager;

(I) Vehicle liability insurance for owned, non-owned, and hired vehicles, in the
amount of $15,000,000;

(J) Employment practices liability insurance in an amount not less than
$2,000,000.00, which shall always be procured and maintained by Manager;

(K) Such other insurance as Lessee and Manager may reasonably determine for
facilities such as the Hotel and the operation thereof, or as Franchisor may
require; and

(L) Crime Coverage in the amount of $500,000, Guest Property and Safe Deposit
Liability in the aggregate amount of $25,000 ($1,000 per guest), and Innkeeper's
Liability in the amount of $25,000.

8.04     Responsibility for Premiums.

All premiums shall be reflected in the approved Annual Plan and paid out of
Gross Revenue pursuant to Section 7.01.

8.05     Replacement Cost.

The term "full replacement cost" as used herein shall mean the actual
replacement cost of the Hotel requiring replacement from time to time including
an increased cost of construction endorsement, if available, and the cost of
debris removal. In the event either party believes that full replacement cost
(the then-replacement cost less such exclusions) has increased or decreased at
any time during the Term of this Agreement, it shall have the right to have such
full replacement cost re-determined.

<PAGE>

8.06     Waiver of Subrogation and Indemnities.

All insurance policies carried by Lessee or Manager covering the Hotel,
including, without limitation, contents, fire and casualty insurance, shall
expressly waive any right of subrogation on the part of the insurer against the
other party. The parties hereto agree that their policies will include such
waiver clause or endorsement so long as the same are obtainable without extra
cost, and in the event of such an extra charge the other party, at its election,
may pay the same, but shall not be obligated to do so.

8.07     Form Satisfactory, etc.

All of the policies of insurance referred to in this Section 8 shall be written
in a form, with deductibles and by insurance companies reasonably satisfactory
to the party to whom the benefit of the insurance runs in accordance with the
terms of this Agreement. Lessee shall deliver such policies or certificates
thereof to Manager prior to their effective date (and, with respect to any
renewal policy, thirty (30) days prior to the expiration of the existing
policy), and in the event of the failure of Lessee to effect such insurance as
herein called for, or to deliver such policies or certificates thereof to
Manager at the times required, Manager shall be entitled, but shall have no
obligation, to effect such insurance, the premiums for which will be paid in
accordance with Section 8.04. Each insurer mentioned in this Section 8 shall
agree, by endorsement of the policy or policies issued by it, or by independent
instrument, that it will give to Lessee and Manager thirty (30) days' written
notice before the policy or policies in question shall be materially altered,
allowed to expire or canceled.

8.08     Increase in Limits.

If either Lessee or Manager at any time deems the limits of the personal injury
or property damage under the comprehensive public liability insurance then
carried to be either excessive or insufficient, Lessee and Manager shall
endeavor in good faith to agree on the proper and reasonable limits for such
insurance to be carried and such insurance shall thereafter be carried with the
limits thus agreed on until further change pursuant to the provisions of this
Section.

8.09     Blanket Policy.

Notwithstanding anything to the contrary contained in this Section 8, Lessee may
bring the insurance provided for herein within the coverage of a so-called
blanket policy or policies of insurance carried and maintained by Lessee;
provided, however, that the coverage afforded to Lessee and Manager will not be
reduced or diminished or otherwise be different from that which would exist
under a separate policy meeting all other requirements of this Agreement by
reason of the use of such blanket policy of insurance, and provided further that
the requirements of this Section 8 are otherwise satisfied.

8.10     Separate Insurance.

Lessee shall not on Lessee's own initiative or pursuant to the request or
requirement of any third party, take out separate insurance concurrent in form
or contributing in the event of loss with that required in this Section to be
furnished, or increase the amount of any then existing insurance by securing an

<PAGE>

additional policy or additional policies, unless all parties have an insurable
interest in the subject matter of the insurance, including in all cases Manager,
are included therein as additional insured, and the loss is payable under such
additional separate insurance in the same manner as losses are payable under
this Agreement. Lessee shall immediately notify Manager that Lessee has obtained
any such separate insurance or of the increasing of any of the amounts of the
then existing insurance.

8.11     Reports on Insurance Claims.

Manager, with the assistance of Lessee, shall promptly investigate and make a
complete and timely written report to the appropriate insurance company as to
all accidents, claims for damage relating to the ownership, operation, and
maintenance of the Hotel, any damage or destruction to the Hotel and the
estimated cost of repair thereof and shall prepare any and all reports required
by any insurance company in connection therewith. All such reports shall be
timely filed with the insurance company as required under the terms of the
insurance policy involved, and a final copy of such report shall be furnished to
Lessee. Manager shall not adjust, settle, or compromise any insurance loss, or
execute proofs of such loss, with respect to the insurance coverages with
respect to any casualty or other event without the prior written consent of
Lessee.

8.12     Deductibles to be Operating Expenses.

Any Deductibles paid toward insurance claims shall be deemed Operating Expenses.

9.       INDEMNITIES.

9.01     Indemnification of Manager.

Lessee will defend, indemnify and hold Manager harmless from and against any and
all actions, suits, claims, penalties, losses, liabilities, damages and
expenses, including attorney's fees arising out of Manager's performing the
services to be performed by Manager in accordance with the terms of this
Agreement, including liabilities under statutes requiring notice as a
prerequisite to the discharge of employees if Lessee terminates this Agreement,
except claims based upon Manager's gross negligence or willful misconduct,
failure to act in good faith, or action beyond the authority granted to Manager
by this Agreement, and except claims based upon Manager's employment practices,
including but not limited to employment agreements, union contracts, and
discrimination and wrongful termination claims.

9.02     Indemnification of Lessee.

Manager will defend, indemnify and hold Lessee harmless from and against any and
all claims to the extent such claims arise on account of Manager's gross
negligence, willful misconduct, failure to act in good faith, or action beyond
the authority granted to Manager by this Agreement.

<PAGE>

9.03     Indemnified Parties.

The indemnities contained in this Section 9 will run to the benefit of both
Manager and Lessee, and the directors, officers, partners, agents and employees
of Lessee and Manager and of their affiliates.

9.04     Certain Claims to be Operating Expenses.

All costs and expenses including attorney's fees arising out of (i) claims of
gross negligence against Hotel Employees or (ii) any proceeding before any state
or federal employment commission, wages and hours commission, and union
grievance committee, or any similar proceeding where Manager is the prevailing
party will be deemed an Operating Expense.

10.      CONDEMNATION.

10.01    Definitions.

(A) "Condemnation" means Taking resulting from (1) the exercise of any
governmental power, whether by legal proceedings or otherwise, by a Condemnor,
and (2) a voluntary sale or transfer by Lessee and/or its Lessor to any
Condemnor, either under threat of condemnation or while legal proceedings for
condemnation are pending.

(B) "Date of Taking" means the date the Condemnor has the right to possession of
the property being condemned.

(C) "Award" means all compensation, sums or anything of value awarded paid or
received on a total or partial Condemnation.

(D) "Condemnor" means any public or quasi-public authority, or private
corporation or individual, having the power of Condemnation.

(E) "Taking" means a taking or voluntary conveyance during the term of this
Agreement of all or a part of the Hotel, or any interest therein, or right
accruing thereto or use thereof, as the result of, or in settlement of, any
Condemnation or other eminent domain proceeding affecting the Hotel whether or
not the same shall have actually been commenced.

10.02    Parties' Rights and Obligations.

If during the Term there is any Condemnation of all or any part of the Hotel,
the rights and obligations of Lessee and Manager shall be determined by this
Section 10.

<PAGE>

10.03    Total Taking.

If title to the fee of the whole of the Hotel is condemned by any Condemnor,
this Agreement shall cease and terminate as of the Date of Taking by the
Condemnor. If title to the fee of less than the whole of the Hotel is so taken
or condemned, which nevertheless renders the Hotel Unsuitable or Uneconomic for
its Primary Intended Use, Lessee and Manager shall each have the option, by
notice to the other, at any time prior to the Date of Taking, to terminate this
Agreement as of the Date of Taking. Upon such date, if such notice has been
given, this Agreement shall thereupon cease and terminate. If this Agreement
terminates pursuant to this Section 10.03, Manager will comply with the
provisions of Section 5.05, and Lessee shall be solely entitled to any Award.

10.04    Partial Taking.

If title to less than the whole of the Hotel is condemned, and the Hotel is
still suitable for its Primary Intended Use, and not Uneconomic for its Primary
Intended Use, or if Manager or Lessee is entitled but neither elects to
terminate this Agreement as provided in Section 10.03 above, Lessee at its cost
shall with all reasonable dispatch, but only to the extent of any condemnation
awards available to Lessee, restore the untaken portion of the Hotel so that it
constitutes a complete architectural unit of the same general character and
condition (as nearly as may be possible under the circumstances) as existed
immediately prior to the Condemnation. If the condemnation awards are not
adequate to restore the Hotel to that condition, each of Lessee and Manager
shall have the right to terminate this Agreement, without in any way affecting
any other management agreements in effect between Lessee and Manager, by giving
notice to the other. Upon the date set forth in such notice, this Agreement
shall thereupon cease and terminate, Manager will comply with the provisions of
Section 5.05, and Lessee shall be solely entitled to any Award.

10.05    Temporary Taking.

If the whole or any part of the Hotel is condemned by any Condemnor for its
temporary use or occupancy, which nevertheless renders the Hotel Unsuitable or
Uneconomic for its Primary Intended Use, Lessee and Manager shall each have the
option, by notice to the other, at any time prior to the Date of Taking, to
terminate this Agreement as of the Date of Taking. Upon such date, if such
notice has been given, this Agreement shall thereupon cease and terminate. If
this Agreement terminates pursuant to this Section 10.05, Manager will comply
with the provisions of Section 5.05, and Lessee shall be solely entitled to any
Award. If, however, the whole or any part of the Hotel is condemned by any
Condemnor for its temporary use or occupancy, and the Hotel is still suitable
for its Primary Intended Use, and not Uneconomic for its Primary Intended Use,
this Agreement shall not terminate by reason thereof. Except only to the extent
that Manager may be prevented from so doing pursuant to the terms of the order
of the Condemnor, Manager shall continue to perform and observe all of the other
terms, covenants, conditions and obligations hereof on the part of the Manager
to be performed and observed, as though such Condemnation had not occurred. In
the event of any Condemnation as in this Section described, the amount of any
Award made for such Condemnation and available to Lessee, to the extent required

<PAGE>

to make all payments required under Section 7.01 herein, shall be deposited in
the Hotel Accounts and disbursed by Manager, with the balance to be retained by
Lessee. Lessee covenants that upon the termination of any such period of
temporary use or occupancy it will, at its sole cost and expense, restore the
Hotel as nearly as may be reasonably possible to the condition in which the same
was immediately prior to such Condemnation, but only to the extent of the Award
available to Lessee, unless such period of temporary use of occupancy extends
beyond the expiration of the Term, in which case Lessee shall not be required to
make such restoration.

11.      CASUALTY.

11.01    Insurance Proceeds.

Subject to the provisions of Section 8.03(D) with respect to loss of income
insurance and Section 11.05 below and the terms of any mortgage, all proceeds
payable by reason of any loss or damage to the Hotel, or any portion thereof,
and insured under any policy of insurance required by Section 8.03(A) through
(C) and (F) above shall be settled or compromised by and paid to Lessee and held
in trust by Lessee in an interest-bearing account, shall be made available, if
applicable, for reconstruction or repair, as the case may be, of any damage to
or destruction of the Hotel, or any portion thereof, and, if applicable, shall
be paid out by Lessee from time to time for the reasonable costs of such
reconstruction or repair upon terms specified in this Agreement and such other
reasonable terms and conditions specified by Lessee consistent with the
disbursement procedures for a construction loan of similar size and scope. Any
excess proceeds of insurance remaining after the completion of the restoration
or reconstruction of the Hotel shall be paid to Lessee. If neither Lessee nor
Manager is required or elects to repair and restore, and this Agreement is
terminated as described in Section 11.02 below, all such insurance proceeds
shall be retained by Lessee. All salvage resulting from any risk covered by
insurance shall belong to Lessee.

11.02    Reconstruction - Damage or Destruction Covered by Insurance.

(A) Except as provided in Section 11.05 below, if during the Term the Hotel is
totally or substantially destroyed by a risk covered by the insurance described
in Section 8 above and the Hotel thereby is rendered Unsuitable for its Primary
Intended Use, Lessee shall, at Lessee's option, either (1) restore the Hotel to
substantially the same condition as existed immediately before the damage or
destruction and otherwise in accordance with the terms of this Agreement, but
only to the extent of insurance proceeds available to Lessee, or (2) terminate
this Agreement by written notice thereof to Manager. If Lessee elects
restoration of the Hotel, the insurance proceeds shall be paid out by Lessee
from time to time for the reasonable costs of such restoration upon satisfaction
of reasonable terms and conditions, and any excess proceeds remaining after such
restoration shall be paid to Lessee.

<PAGE>

(B) Except as provided in Section 11.05 below, if during the Term the Hotel is
partially destroyed by a risk covered by the insurance described in Section 8
above, but the Hotel is not thereby rendered Unsuitable for its Primary Intended
Use, Lessee (with the cooperation of the Manager) shall restore the Hotel to
substantially the same condition as existed immediately before the damage or
destruction and otherwise in accordance with the terms of this Agreement, but
only to the extent of insurance proceeds available to Lessee. Such damage or
destruction shall not terminate this Agreement. However, if, under this Section,
Lessee cannot within a reasonable time obtain all necessary government
approvals, including building permits, licenses and conditional use permits,
after diligent efforts to do so, to perform all required repair and restoration
work and to operate the Hotel for its Primary Intended Use in substantially the
same manner as that existing immediately prior to such damage or destruction and
otherwise in accordance with the terms of this Agreement, Lessee may (a) give
Manager written notice of termination of this Agreement or (b) restore the Hotel
using the proceeds of insurance. If Lessee restores the Hotel, the insurance
proceeds shall be paid out by Lessee from time to time for the reasonable costs
of such restoration, and any excess proceeds remaining after such restoration
shall be paid to Lessee.

11.03    Reconstruction - Damage or Destruction not Covered by Insurance.
         ---------------------------------------------------------------

Except as provided in Section 11.06 below, if during the Term the Hotel is
totally or substantially destroyed by a risk not covered by the insurance
described in Section 8 above, whether or not such damage or destruction renders
the Hotel Unsuitable for its Primary Intended Use, Lessee at its option shall
either (a) restore the Hotel to substantially the same condition it was in
immediately before such damage or destruction and such damage or destruction
shall not terminate this Agreement, or (b) terminate this Agreement. If Lessee
terminates this Agreement, Manager will comply with the provisions of Section
5.05.

11.04    Abatement.

Any damage or destruction due to casualty notwithstanding, this Agreement shall
remain in full force and effect provided that the obligation of Manager to make
payments and to pay all other charges required hereunder shall not abate during
the period required for the applicable repair and restoration.

11.05    Damage Near End of Term.

Notwithstanding any provisions of Section 11.02 or 11.03 appearing to the
contrary, if damage to or destruction of the Hotel rendering it unsuitable for
its Primary Intended Use occurs during the last 4 months of the Term, then
Lessee shall have the right to terminate this Agreement by giving written notice
to Manager within thirty (30) days after the date of damage or destruction,
whereupon.

12.      DEFAULT.

12.01    Events of Default by Manager.

If any one or more of the following events (individually, an "Event of Default")
occurs:

<PAGE>

(A) if Manager fails to observe or perform any term, covenant or condition of
this Agreement and such failure is not cured by Manager within a period of
thirty (30) days after receipt by Manager of notice thereof from Lessee, unless
such failure cannot with due diligence be cured within a period of thirty (30)
days, in which case Manager shall have an additional reasonable period of time
to cure such breach provided Manager proceeds promptly and with due diligence to
cure the failure and diligently completes the curing thereof; or

(B) if Manager shall file a petition in bankruptcy or reorganization for an
arrangement pursuant to any federal or state bankruptcy law or any similar
federal or state law, or shall be adjudicated a bankrupt or shall make an
assignment for the benefit of creditors or a shall admit in writing its
inability to pay its debts generally as they become due, or if a petition or
answer proposing the adjudication of Manager as a bankrupt or its reorganization
pursuant to any federal or state bankruptcy law or any similar federal or state
law shall be filed in any court and Manager shall be adjudicated a bankrupt and
such adjudication shall not be vacated or set aside or stayed within sixty (60)
days after the entry of an order in respect thereof, or if a receiver of the
Manager or of the whole or substantially all of the assets of the Manager shall
be appointed in any proceedings brought by the Manager or if any such receiver,
trustee or liquidator shall be appointed in any proceeding brought against
Manager shall not be vacated or set aside or stayed within sixty (60) days after
such appointment; or

(C) if Manager is liquidated or dissolved, or begins proceedings toward such
liquidation or dissolution, or, if Manager in any manner, permits the sale or
divestiture of substantially all of its assets; or

(D) if the interest of Manager in this Agreement or any part thereof or any
ownership interest in Manager is voluntarily or involuntarily transferred,
assigned, conveyed levied upon or attached in any proceeding, except (i) where
Manager is contesting such lien or attachment in good faith in accordance with
the express terms of this Agreement, and (ii) otherwise expressly permitted
herein;

(E) if, except as a result of a total or substantial Condemnation or Casualty
that renders the Hotel unsuitable for its primary intended use, Manager (without
the consent of Lessee) voluntarily ceases operations of the Hotel for a period
in excess of twenty-four (24) hours;

(F) if an Event of Default has been declared by the Franchisor under the
Franchise Agreement with respect to the Hotel as a result of any action or
failure to act by the Manager (other than a failure to complete a Capital
Replacement required by the Franchisor resulting from Lessee's failure to fund
the cost of such Capital Replacement pursuant to Section 2.01 hereof) and
Manager has failed, within thirty (30) days thereafter, to cure such default by
curing the underlying default under the Franchise Agreement and paying all costs

<PAGE>

and expenses associated therewith, provided, however, that if Manager is in good
faith disputing an assertion of default by the Franchisor or is proceeding
diligently to cure such default, the 30-day period shall be extended for such
reasonable period of time as Manager continues during this period to dispute
such default in good faith or diligently proceeds to cure such default and so
long as there is no period during which the Hotel is not operated pursuant to
the Franchise Agreement; or

                  (G) if Manager, or anyone acting on Manager's behalf, or
within Manager's employ or control commits a crime on or about the Hotel
premises, whether such crime is against Lessee or any other person or entity,
including but not limited to theft, embezzlement, vandalism, arson and the like;

                  THEN, and in any such event, Lessee may exercise one or more
remedies available to it herein or at law or in equity, including but not
limited to its right to terminate this Agreement, without payment of the
Termination Fee.

12.02    Lessee Default.

If Lessee fails to observe or perform any term, covenant or condition of this
Agreement or the Franchise Agreement and such failure is not cured by Lessee
within a period of thirty (30) days after receipt by Lessee of notice thereof
from Manager, unless such failure cannot with due diligence be cured within a
period of thirty (30) days, in which case it shall not be deemed an "Lessee
Default" if Lessee proceeds promptly and with due diligence to cure the failure
and diligently completes the curing thereof, then Manager may exercise one or
more remedies available to it herein or at law or in equity, including, but not
limited to its right to terminate this Agreement.

12.03    Unavoidable Delay.

No Event of Default under Section 12.01(A) or Lessee Default under Section 12.02
(other than a failure to make a payment of money) shall be deemed to exist
during any time the curing thereof is prevented by an Unavoidable Delay,
provided that upon the cessation of such Unavoidable Delay, Lessee or Manager,
as the case may be, remedies such default or Event of Default or Lessee's
Default without further delay.

12.04    Damages.

In the event of Manager's termination of this Agreement due to an Lessee Default
hereunder, Lessee shall forthwith pay to Manager, as and for liquidated and
agreed current damages for an Lessee Default, the termination fee set forth on
Schedule I ("Termination Fee").

12.05    Litigation Costs.

If litigation is commenced with respect to any alleged default under this
Agreement, the prevailing party in such litigation shall receive, in addition to
its damages incurred, such sum as the court shall determine as its reasonable
attorneys' fees, and all costs and expenses incurred in connection therewith,
provided that such litigation is in accordance with Section 16.02 herein.

<PAGE>

13.      LESSEE'S TERMINATION WITHOUT AN EVENT OF DEFAULT.

13.01    Without Payment of Termination Fee.

Intentionally Omitted.

13.02    With Payment of Termination Fee.

Lessee may terminate this Agreement at any time by giving Manager sufficient
notice to comply with all applicable laws, including laws governing notification
to employees (but not less than thirty (30) days notice in any event) including
with its notice payment of the Termination Fee amount, together with the balance
due of any and all amounts due Manager earned through the date of termination.

14.      DEFINITIONS.

14.01 "Affiliate" means, with regard to any Person, (a) any Person that,
directly or indirectly, controls or is controlled by or is under common control
with such Person, (b) any other Person that owns, beneficially, directly or
indirectly, more than fifty percent (50%) of the outstanding capital stock,
shares or equity interests of such Person, or (c) any officer, director,
employee, partner or trustee of such Person or any Person controlling,
controlled by or under common control with such Person (excluding trustees and
Persons serving in similar capacities who are not otherwise an Affiliate of such
Person).

14.02    "Annual Plan" has the meaning contained in Section 3.01.

14.03    "Commencement Date" means the date contained on Schedule I.

14.04    "CPI" means the "Consumer Price Index" published by the Bureau of Labor
Statistics of the United States Department of Labor,

U.S. City Average, All Items for Urban.

14.05    "Employees" has the meaning contained in Section 2.02.

14.06 "Excluded Revenues" means (i) any gratuity or sales charges added to a
customer's bill, which are payable to Hotel employees, (ii) sales taxes, excise
taxes, gross receipt taxes, admission taxes, entertainment taxes, tourist taxes
or other similar taxes, (iii) proceeds from the sale or refinancing of the
Hotel, (iv) abatement of taxes, (v) proceeds of insurance, except business
interruption insurance and (vi) Telecom Revenues.

14.07 "Franchise Agreement" means the franchise agreement of even date herewith
between Lessee and Franchisor relating to the Hotel.

<PAGE>

14.08 "Franchisor" means the hotel franchise company licensing the use of the
Hotel name, if any.

14.09 "Franchise Costs" means expenditures for compliance with the requirements
of the Franchisor of the Hotel, including without limitation payment of
royalties, marketing contributions, and reservation system fees, but excluding
the cost of compliance with Franchisor's operating standards requiring Capital
Replacements.

14.10    "GAAP" means U.S. generally accepted accounting principles.

14.11    "Gross Operating Profit" means Gross Revenues less Operating Expenses.

14.12 "Gross Revenues" means all revenues of the Hotel and all its uses of every
nature and kind regardless of source, excluding Excluded Revenues. By way of
illustration but not limitation, Gross Revenues will include:

(A) The amount received as payment for the use and occupancy of all guest rental
units;

(B) The amount received as payment for the use and occupancy of all meeting
rooms, banquet function rooms, and public areas;

(C) All revenues derived from the sale of food and other edibles in restaurants,
lounges, meeting rooms, banquets, guest rooms and any other location at the
Hotel;

(D) All revenues derived from the sale of liquor, beverages, and other potables
in restaurants, lounges, meeting rooms, banquets, guest rooms, and any other
location at the Hotel;

(E) All revenues derived from the use of telephone in guest rooms or in public
areas;

(F) All revenues derived from leases, subleases, concessions, vending, valet
services, swimming pool memberships, banquet extras, movies or income of a
similar or related nature; and

(G) Proceeds of business interruption insurance.

14.13 "Hotel" means the hotel described on Schedule I.

14.14 "Hotel Account(s)" has the meaning contained in Section 4.01.

14.15 "Manager" means Wright Hospitality Management, LLC.

<PAGE>

14.16 "Operating Equipment" means all china, glassware, linens, silverware and
uniforms used in, or held in storage for use in (or if the context so dictates,
required in connection with), the operation of the Hotel.

14.17 "Operating Expenses" means any and all amounts paid or expenses incurred
in connection with the operation of the Hotel, as determined in accordance with
GAAP or the Uniform System of Accounts for Hotel, excluding taxes (other than
the sales and use and payroll taxes described below), interest, principal, and
other payments on any debt or other obligation for borrowed money, including
debt service on any mortgage debt, and non-cash items such as depreciation
(these excluded items shall be paid directly by Lessee). By way of illustration
but not limitation, Operating Expenses include:

(A) Salaries, wages, payroll taxes, bonuses and employee benefits and payroll
processing fees.

(B) Legal, accounting and other professional fees.

(C) Fees for licenses and permits.

(D) Costs of Operating Supplies including sales and use taxes imposed thereon.

(E) Costs of Operating Equipment including sales and use taxes imposed thereon.

(F) Franchise Costs.

(G) Department expenses not otherwise itemized above directly related to rooms,
food, beverage, telephone, and other segregated outlets.

(H) Expenses not attributed to a specific department in the ordinary course and
not otherwise itemized above including administrative and general; advertising,
sales and promotion; heat, light and power; and repairs and maintenance (but not
of Capital Replacements).

(I) Base Management Fee.

14.18 "Operating Leases" means leases of personal property and equipment which,
if not leased, would be purchased and classified as Capital Replacements.

14.19 "Operating Supplies" means consumable items used in or held in storage for
use in (or if the context so dictates, required in connection with), the
operation of the Hotel, including but not limited to food and beverages, fuel,
soap, cleaning material, matches, stationery and other similar items.

<PAGE>

14.20 "Operating Year" means each twelve month period commencing on the first
day of January (except for the first year, which will commence on the
Commencement Date), and ending on the subsequent December 31 (except for the
last year which will end on the date of termination, whether by expiration of
the term of the Agreement or otherwise).

14.21    "Lessee" means the entity identified on Schedule I or its successors.

14.22    "Telecom Revenues" has the meaning described in Section 15.03.

14.23 "Unavoidable Delays" means delays due to strikes, lock-outs, labor unrest,
inability to procure materials, power failure, acts of God, governmental
restrictions, enemy action (including terrorist activities), civil commotion,
fire, unavoidable casualty or other similar causes beyond the control of the
party responsible for performing an obligation hereunder, provided that lack of
funds shall not be deemed a cause beyond the control of either party hereto
unless such lack of funds is caused by the failure of the other party hereto to
perform any obligations of such party under this Agreement or any guaranty of
this Agreement.

14.24 "Uneconomic for its Primary Intended Use" means a state or condition of
the Hotel such that, in the good faith judgment of Lessee and Manager,
reasonably exercised, the Hotel cannot be operated on a commercially practicable
basis for hotel purposes and such other uses as may be necessary or incidental
thereto, taking into account, among other relevant factors, the number of usable
rooms and projected revenues and expenses.

14.25 "Uniform System of Accounts" means the Uniform System of Accounts for
Hotel (Eighth Revised Edition, 1986) as revised from time to time; but not any
subsequent revisions unless approved by both Lessee and Manager in writing.

14.26 "Unsuitable for its Primary Intended Use" means a state or condition of
the Hotel such that, in the good faith judgment of Lessee and Manager,
reasonably exercised, due to casualty damage or loss through Condemnation, the
Hotel cannot function as an integrated hotel facility consistent with standards
applicable to a well maintained and operated hotel.

15.      GENERAL PROVISIONS.

15.01    Estoppel Certificates.

Lessee and Manager each, upon at least ten (10) days' notice, will execute and
deliver to the other, and to any third party having, or about to have a bona
fide interest in the Hotel, a written certificate stating that this Agreement is
unmodified and in full force and effect, or if not, stating the details of any
modification, and stating that as modified it is in full force and effect, the
date to which payments have been paid, and whether there is any existing default
on the part of the other.

<PAGE>

15.02    Arbitration.

All disputes hereunder shall be subject to arbitration pursuant to the
provisions of this Section. The party initiating arbitration (the "Claimant")
shall do so by giving written notice (the "Demand") to the other party (the
"Respondent") of its intention to arbitrate, which Demand shall contain a
statement setting forth the nature of the dispute, the amount in dispute, if
any, and the remedy sought. The arbitration panel shall apply the substantive
law of the State of Tennessee and the location of the arbitration shall be
Memphis, Tennessee. The American Arbitration Association ("AAA") shall give each
party a list of at least fifteen (15) arbitrators technically competent and
experienced in the field of knowledge in controversy no later than twenty (20)
days after the Demand. Each party may strike up to three (3) names from the
list. The parties shall then endeavor in good faith to agree on a panel of three
(3) from the remaining list. In the event the parties are unable to agree on a
panel, then no later than ten (10) days following the Demand each party shall
select one (1) arbitrator from the list. Within five (5) days thereafter the
third panelist shall be selected by agreement of the first two so selected.

(A)               Procedure. Matters involving less than $250,000.00. Any matter
                  subject to arbitration pursuant to this section and involving
                  less than $250,000.00 in controversy shall be conducted in
                  accordance with the rules of the AAA and shall not be subject
                  to judicial review for any cause other than denial of due
                  process of law.

(B)               Matters Involving $250,000.00 or More. Any matter subject to
                  arbitration pursuant to this section and involving $250,000 or
                  more in controversy shall be subject to the following:

(1)               each party shall be entitled to discovery consisting of
                  document production requests, interrogatories and depositions
                  of fact and expert witnesses. The parties shall also exchange
                  expert reports in a form to be determined by the panel.
                  Limitations on such discovery shall be at the discretion of
                  the panel;

(2)               no later than thirty (30) days prior to commencement of
                  testimony, each party shall provide to the other a list of
                  witnesses it expects to call, a list of exhibits it intends to
                  introduce and a statement of issues to be resolved;

(3)               the panel shall have the authority to resolve issues on motion
                  in accordance with the standards applicable to motions for
                  summary judgment in courts within the district in which the
                  hearing is to be conducted;

(4)               the arbitrators shall apply the applicable rules of evidence
                  to the proceeding, except to the extent otherwise stipulated
                  in writing by the parties;

<PAGE>

(5)               the arbitrators shall prepare in writing their findings of
                  fact, conclusions of law and award; and

(6)               the arbitrators shall not have the power to commit errors of
                  law or legal reasoning, and the award shall be reviewable and
                  subject to modification, reversal or remand concerning such
                  errors by a court of competent jurisdiction.

(C)               Fees and Costs. All costs of arbitration shall be paid by the
                  losing party, including any and all attorney's fees.

(D)               Enforcement of Award. Subject to the provisions of paragraph 6
                  above, the award rendered by the arbiter or arbiters shall be
                  final and binding upon the parties, and judgment may be
                  entered and enforced in any court having competent
                  jurisdiction.

15.03    Telecommunications Leases and Licenses.

Notwithstanding anything in this Agreement to the contrary, Lessee, without the
consent of Manager, shall have the right to lease or license portions of the
Hotel for telecommunications and similarly related facilities, or other uses, to
the extent such leases and licenses do not materially interfere with operations
of the Hotel. Any revenues derived therefrom shall be called "Telecom Revenues"
and shall belong solely to Lessee, and shall not be included in hotel revenue.

15.04    No Partnership or Joint Venture.

Nothing contained in this Agreement will be construed to be or create a
partnership or joint venture between Lessee, any affiliate of Lessee, its
successors or assigns, on the one part, and Manager, any affiliate of Manager,
its successors and assigns, on the other part. Manager shall be deemed to be an
independent contractor of Lessee for purposes of this Agreement.

15.05    Modifications and Charges.

This Agreement cannot be changed or modified except by another agreement in
writing signed by the party sought to be charged therewith, or by its duly
authorized agent.

15.06    Understandings and Agreements.

This Agreement constitutes all of the understandings and agreements of
whatsoever nature or kind existing between the parties with respect to Manager's
management of the Hotel.

15.07    Headings.

The Section headings contained herein are for convenience or reference only and
are not intended to define, limit or describe the scope or intent of any
provisions of this Agreement.

<PAGE>

15.08    Survival of Covenants.

Any covenant, term or provision of this Agreement which, in order to be
effective, must survive the termination of this Agreement, will survive any such
termination.

15.09    Waivers.

No failure by Manager or Lessee to insist upon the strict performance of any
covenant, agreement, term or condition of this Agreement, or to exercise any
right or remedy consequent upon the breach of this Agreement will constitute a
waiver of any breach or any subsequent breach of the covenant, agreement, term
or conditions. No covenant, agreement, term or condition of this Agreement and
no breach of this Agreement will be waived, altered or modified, except by
written instrument. No waiver of any breach will affect or alter this Agreement,
but each and every covenant, agreement, term and condition of this Agreement
will continue in full force and effect with respect to any other then existing
or subsequent breach.

15.10    Applicable Law.

To the extent legally permissible, this Agreement will be construed and
interpreted by, and be governed by, the laws of the State of Tennessee.

15.11    Notices.

Except as otherwise provided in this Agreement, all notices required or
permitted to be given hereunder, or which are to be given with respect to this
Agreement, will be in writing sent by registered or certified mail, postage
prepaid, return receipt requested, by a reputable overnight delivery service
such as Federal Express, or by facsimile transmission, provided that a
simultaneous copy of the faxed notice is sent via overnight delivery, addressed
to the party to be so notified as set forth on Schedule I. Any notice will be
deemed delivered when received or receipt rejected. Notices may also be
delivered by hand, or by special courier, if, in either case, receipt is
acknowledged by the addressee. Any notice delivered by hand, or by special
courier, will be deemed delivered when received. Either party may at any time
change the addresses for notices by written notice to the other party.

15.12    Binding Effect.

This Agreement will be binding upon and will inure to the benefit of the
successors in interest and the assigns of the parties hereto, provided that no
assignment, transfer, sale, pledge, encumbrance, mortgage, lease or sublease by
or through Manager or by or through Lessee, as the case may be, in violation of
the provisions of this Agreement, will vest any rights relative to this
Agreement in the assignee, transferee, purchaser, secured party, mortgagee,
pledgee, lessee, sublessee or occupant, or will diminish, reduce or release the
obligations of the parties hereto.

<PAGE>

15.13    Confidentiality.

Manager and Lessee agree that the contents of this Agreement will not be
disclosed to any other individual or entity (except as directed by law or
judicial order), provided, Lessee may disclose the contents of this Agreement to
(i) its partners and limited partners, or shareholders and directors, if a
corporate partner, and (ii) individuals or entities providing, or proposing to
provide, financing to Lessee.

15.14    Conflicts.

In the event of any conflicts between the terms of this Agreement and the
Franchise Agreement, the terms of this Agreement shall control.

15.15    Third Party Beneficiary.

None of the obligations of this Agreement of either party will run to or be
enforceable by any party other than the party to this Agreement or its assignee
pursuant to the terms of this Agreement. Lessee is expressly authorized to
assign its rights under this Agreement to any mortgagee of the Hotel.

15.16    Subordination.

This Agreement shall be subordinate to any mortgage encumbering the Hotel, and
Manager agrees to enter into such subordination agreements, and to execute and
deliver such estoppel certificates, as lender may require from time to time,
which shall include all reasonable provisions required by the lender, including,
without limitation, Manager's acknowledgment that its real estate interest in
and to the Hotel, if any, created by this Agreement is subordinate to any
mortgage encumbering such Hotel.

15.17    Time of the Essence.

Time is of the essence of this Agreement.

15.18    Counterparts.

This Agreement may be signed in one or more counterparts, which, when taken
together, constitute the entire Agreement.

         IN WITNESS WHEREOF, the parties hereto have executed or caused this
Agreement to be executed, all as of the day and year specified on Schedule I.

<PAGE>

                             LESSEE:
                                        ----------------------------------------

                             By:
                                        ----------------------------------------

                             Name:
                                        ----------------------------------------

                             Title:
                                        ----------------------------------------

<PAGE>

                             Manager:  Wright Hospitality Management, LLC,
                                       a Tennessee limited liability corporation

                             By:
                                        ----------------------------------------

                             Name:
                                        ----------------------------------------

                             Title:
                                        ----------------------------------------

<PAGE>

39

                         SCHEDULE I - Terms of Agreement

1.       DATE OF AGREEMENT:

2.       DESCRIPTION OF HOTEL (Preamble)

                  -----------------------------------

3.       COMMENCEMENT DATE (Section 1.02):

                  Upon lender and franchisor approval, or such other date as the
parties may agree upon.

4.       EXPIRATION DATE (Section 1.02):

                  -----------------------------------

5.       AGREEMENT LIMITATIONS (Section 3.04):

                  Maximum Amount:   _________
                  Time Period:      _________

6.       MINIMUM BALANCE (Section 4.02):

                  ------------

7.       ACCOUNTING FEE:

                  Manager may charge a monthly accounting fee of $________ per
                  month to be paid from the Gross Revenue of the hotel. The
                  accounting fee will include all accounting services, training
                  provided by Manager personnel, and Manager allocations for
                  postage and telephone services incurred at the Manager's
                  office.

8.       BASE MANAGEMENT FEE;

                  ___% of Gross Revenues from the operation of the Hotel for the
                  preceding month.

9.       INCENTIVE MANAGEMENT FEE:

                  _________ Percent (__%) of the amount by which Gross Operating
                  Profit for the final twelve (12) months of the term exceeds
                  $_________ shall be paid to Manager as an Incentive Management
                  Fee in accordance with Section 6.01(B). Notwithstanding the
                  foregoing, the Incentive Management Fee shall not exceed ____
                  Percent (__%) of the Gross Operating Revenues of the Hotel.
                  There will be no incentive management fee for the initial
                  three (3) months of the term.

<PAGE>

10. LESSEE (Section 15.20): _____________________

11.      NOTICES (Section 16.11):

                  Manager:     Wright Hospitality Management, LLC
                               277 German Oak Drive
                               Cordova, TN 38018
                               Attn:    Charles Swan
                               Fax: 901-755-8230

                  Lessee:      _______________________
                               c/o Equity Inns, Inc.
                               7700 Wolf River Boulevard
                               Germantown, Tennessee  38138
                               Fax:  (901) 754-2374
                               Attention:  President

<PAGE>

          SCHEDULE II - Management Services Included in Management Fee

        (All to be conducted in accordance with the approved Annual Plan)

PROPERTY LEVEL

1. Establish staffing requirements

2. Establish employment policies such as hiring policies, terms of employment,
wage scales, and vacation and benefit packages

3. Select key employees and department heads

4. Provide property level training

5. Establish rates and charges for the goods and services to be sold by the
Hotel

6. Implement sales and marketing strategies

7. Supervise property operations

8. Negotiate and sign purchase orders and service agreements

HOME OFFICE

1. Provide a regional director of operations to supervise property activities

2. Provide a regional sales director

3. Provide human resources management

4. Provide management information systems

5. Make available Manager's legal staff to provide assistance in day-to-day
property operations.

6. Negotiate national vending contracts

7. Purchase all Operating Supplies and Operating Equipment

8. Pay all expenses incurred in the operation of the Hotel

9. Maintain the Hotel in good order, repair, and condition

<PAGE>

10. Prepare a schedule of suggested insurance coverages and administer the
purchase of insurance, if requested by Lessee.

11. Implement Manager's standard administrative, accounting, budgeting,
marketing, and operational policies and practices

ACCOUNTING SERVICES

1. Prepare sales and use tax returns

2. Process accounts payable

3  Prepare monthly and yearly financial statements

4. Provide cash management services

5. Process payroll and related payroll items

<PAGE>

               SCHEDULE III - Sample Statement of Profit and Loss

<PAGE>

                SCHEDULE IV - Definition of Capital Replacements

                              CAPITAL REPLACEMENT:

A Capital Replacement is defined as an investment in a readily identifiable
facility which (1) is held for use or income rather than for sale or conversion
into goods or cash and (2) has a useful service life in excess of one year.
Nonrecurring expenses directly associated with the investment should be included
as part of the total expenditure for evaluation purposes, this includes
preopening expenses.

                              Capitalization Policy

If the cost of the capital addition is $1,000 or greater and the items acquired
have an expected service life of more than one year, the expenditure is
capitalized. See "Maintenance and Repairs" for those expenditures which are
expensed without regard to the $1,000 guideline.

If the item(s) acquired meet the more than one-year life criterion, but the
total invoice cost is less than $1,000, the expenditure is considered an expense
item.

                          Replacement - Component Parts

If the estimated job or total invoice cost for replacement of the following
major components of building is under $5,000, the expenditure is to be expensed
to maintenance and repairs:

         Heating Equipment - Pumps, boilers, heat exchangers, thermostats;
pressure gauges alarm devices, piping.

         Plumbing Equipment - Pumps, meters, minor sprinkler system, piping.

         Air Conditioning Equipment - Compressors, condensers, motors, cooling
towers, evaporative coolers, piping.

         Fire Prevention Equipment - Major fire system sprinklers, smoke
detectors.

         Power - Transformer, conduits and boxes, panel boards, switches and
outlets.

<PAGE>

Betterments

If the estimated job or total invoice cost is $5,000 or above, and the
expenditure(s) will extend the useful life of an asset previously capitalized,
then the expenditure should be capitalized.

Maintenance and Repairs

The following replacement expenditures are considered maintenance and repairs
and are not subject to the total invoice cost guideline of $1,000.

         Repainting of Buildings, Pools, Park Areas (1)(6)
         Refinishing of Furniture (2)
         Glass Replacement (except when Thermal replaces regular glass)
         Maintenance Service Contracts, such as Yard, Television, Elevator,
            Swimming Pool
         Wall Paper (not Vinyl) (2)
         Reupholstery of Furniture (2)
         Replastering (2)
         Replacement of Chain Locks, Key Blanks, Keys, Locks, Locksets. Locks
            and locksets installed in new doors or offering substantial
            security improvements should be capitalized if the invoice is over
            $1,000.
         Patching Parking Lot (3)
         Roof Repairs (4)
         Waterproofing of Lamp Globes and Light Bulbs
         Section Replacement for Neon Signs
         Caulking and Sealing (1)
         Toilet Seats
         Stolen Televisions
         Small Parts for Equipment (see below)
         Landscaping/Plants (5)

1.                If the complete exterior of the building is repainted,
                  including caulking and sealing of the building, those costs
                  will be capitalized.

2.                Expenditures for interior painting, wall paper, refinishing of
                  furniture, replastering or upholstering may be capitalized if:

                  (a) These expenditures are part of a major refurbishment
                      project, or

<PAGE>

                  (b) The cost of these expenditures exceed $10,000 and extend
                      the useful life of the asset.

3.                Repairing of parking lots, including resealing and
                  resurfacing, will be capitalized if the expenditure exceeds
                  $10,000.

4.                Replacement of the complete roof or complete section of the
                  roof (including laying a roof over an existing roof) will be
                  capitalized if total expenditure exceeds $10,000.

5.                If the landscaping is new or replacement of existing interior
                  or exterior landscaping and exceeds $10,000, the cost of the
                  landscaping can be capitalized.

6.                Major overhauls to the pool which exceed $10,000 in cost and
                  extend the useful life of the asset will be capitalized.

All expense items will be expensed to M&R expense line items above GOP. These
expenses, as a rule, should be funded from operating cash flow. Only large M&R
expenditures (in excess of $25,000) which will be funded from capital
replacement reserve may be classified to miscellaneous expense below the line.
These items must be approved by the Hotel Financial Controller.

Replacement of Component Parts

Expenditures for parts of equipment to keep the equipment in working condition
are expenses and not capital expenditures. The equipment as a whole is only
repaired by the replacements, which merely keeps it in working condition - e.g.,
compressors for air conditioners.

Software

Software costs will not be capitalized unless the cost of the software exceeds
$5,000, or it is included with the purchase of the hardware.

Retirements

If an item capitalized replaces an asset with a remaining life on the books, the
replaced asset should be written off.

<PAGE>

                        SCHEDULE V - STR Competitive Set

                                 (See Attached)EXHIBIT 10.29

                              MANAGEMENT AGREEMENT

                                       for

                             ----------------------

                                 by and between

                             ----------------------

                                   as Lessee,

                                       and

                        McKibbon Hotel Management, Inc.,

                                   as Manager,

                            Dated __________________

<PAGE>

                              MANAGEMENT AGREEMENT

         THIS AGREEMENT, made as of _________________________, by and between
__________________________________________ ("Lessee"), having its principal
office at 7700 Wolf River Boulevard, Germantown, Tennessee 38138 and McKIBBON
HOTEL MANAGEMENT, INC., a Georgia corporation ("Manager"), having a principal
office at 402 Washington Street NE, Suite 200, Gainesville, GA 30501.

                              PRELIMINARY STATEMENT

         A. Lessee is the lessee of a __________________________ hotel on the
land herein described.

         B. Manager is an independent contractor engaged in the management of
hotels throughout the United States, and Manager is experienced in the various
phases of hotel operations.

         C. Lessee is desirous of utilizing the services and experience of
Manager in
connection with the operation of the hotel, and Manager desires to render such
services, all upon the terms and conditions hereinafter set forth.

         NOW, THEREFORE, Lessee and Manager agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         1.01     Definitions. As used herein, the following terms shall have
the respective meanings indicated below:

                  1.01.1 Affiliate(s) - with respect to any entity, any natural
person or firm, corporation, partnership, association, trust or other entity
which, directly or indirectly, controls, is controlled by, or is under common
control with, the subject entity; a natural person or entity which has another
entity as an Affiliate under the foregoing shall also be deemed to be an
Affiliate of such entity. For purposes hereof the term "control" shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of any such entity, or the power to
veto major policy decisions of any such entity, whether through the ownership of
voting securities, by contract, or otherwise.

                  1.01.2 Capital Renewals - a collective term for (a) normal
capital replacements of, or additions to, FF&E, and (b) special projects
designed to maintain the Hotel in a first-class condition in accordance with the
standards contemplated by this Agreement, including without limitation,
renovation of the guest room areas, public space, food and beverage facilities,
or back of the house areas, which projects will generally comprise replacements
of, or additions to, FF&E, but may include revisions and alterations in the
Improvements; most of the expenditures for such special projects will be
capitalized, but a portion thereof may be currently expended, such as the
purchase of smaller items of FF&E, or expenditures which are ancillary to the
overall project but which are properly chargeable to Property Operations and
Maintenance under the Uniform System of Accounts for Hotels.

<PAGE>

                  1.01.3   Capital Renewals Budget(s) - as defined in Subsection
4.02.1(b).

                  1.01.4   Claims - as defined in Subsection 12.03.1.

                  1.01.5   CPI - as defined in Subsection 4.02.3.

                  1.01.6 Commencement Date - _________________ (or such other
date as the parties may agree upon), the date Manager begins operating the Hotel
under the Agreement.

                  1.01.7 Compensation - the direct salaries and wages paid to,
or accrued for the benefit of, any executive or other employee together with all
fringe benefits payable to, or accrued for the benefit of, such executive or
other employee, including employer's contributions required pursuant to any
Legal Requirement, or other employment taxes, pension fund contributions, group
life and accident and health insurance premiums, and profit sharing, retirement,
disability and other similar benefits and severance pay owed to employees at the
termination of this Agreement, if any.

                  1.01.9 ERISA - the Employees Retirement Income Security Act of
1974, as amended.

                  1.01.10 Executive Staff - the general manager, resident
manager (if any), the assistant manager (if any) and all department heads,
including Director of Finance, Director of Rooms or Front Office Operation,
Director of Food and Beverage, Director of Marketing and Director of Human
Resources.

                  1.01.11 FF&E - all furniture, furnishings, equipment,
fixtures, apparatus and other personal property used in, or held in storage for
use in (or if the context so dictates, required in connection with), the
operation of the Hotel, other than Operating Equipment, Operating Supplies and
fixtures attached to and forming part of the Improvements.

                  1.01.12 Gross Operating Profit (GOP) - the excess of Gross
Operating Revenues over expenses and deductions incurred in the operation of the
Hotel by Manager in fulfilling its duties hereunder, determined in accordance
with the accounting system established by the Uniform System (except as modified
by this Agreement). In arriving at Gross Operating Profit, all expenses shall be
proper deductions from Gross Operating Revenues insofar as they relate to the
operation of the Hotel including, without limit, all Base Management Fees,
license fees, franchisor royalties and fees, and direct out-of-pocket charges of
Manager or its affiliates as well as corporate charges.

                  1.01.13   Gross Revenues - as defined in the Management Fee
Rider

                  1.01.14 Ground Lease - the ground lease, if any, described in
Exhibit II, pursuant to which the Land was demised to Lessee for the term
indicated on said Exhibit II.

                  1.01.15   Group Services - as defined in Section 4.03.

<PAGE>

                  1.01.16   Hotel - the hotel, including the Premises, referred
to in the Preliminary Statement.

                  1.01.17 Impositions - all taxes, assessments, water, sewer or
other similar rents, rates and charges, levies, license fees, permit fees,
inspection fees and other authorization fees and charges, which at any time may
be assessed, levied, confirmed or imposed on the Hotel or the operation thereof.

                  1.01.19  Improvements - the buildings, structures (surface and
subsurface) and other improvements now or hereafter located on the Land.

                  1.01.20  Initial Term - as defined in Section 2.01.

                  1.01.21  Land - the parcel or parcels of land described in
Exhibit I.

                  1.01.22 Legal Requirements - all public laws, statutes,
ordinances, orders, rules, regulations, permits, licenses, authorizations,
directions and requirements of all governments and governmental authorities,
which, now or hereafter, may be applicable to the Premises and the operation
thereof, including, without limitation, those relating to zoning, building,
life/safety, environmental and health, employee benefits, and providing
continued health care coverage under ERISA.

                  1.01.23 Lessee - the person or entity named in the preamble
hereto, or the successor of Lessee's interest with respect to this Agreement.

                  1.01.24 License Agreement - the Franchise Agreement dated
____________ between Marriott International, Inc., as franchisor, and Lessee, as
franchisee, licensing the operation of the Hotel under the _______________ name.

                  1.01.25 Local Operating Account - one or more bank accounts
established by Manager for Lessee in one or more banks approved by Lessee.

                  1.01.26  Major Capital Improvements - as defined in Subsection
12.08.1.

                  1.01.27   Managed Hotels - a collective term for the Hotel and
all other hotels within the United States of America owned, leased and/or
operated under the ________________ name by Manager or its Affiliates.

                  1.01.28  Management Fee - as defined in the Management Fee
Rider.

                  1.01.29  Minimum Balance - as defined in Section 7.02.

                  1.01.30  Mortgage - as defined in Section 9.03.2.

                  1.01.31  Net Operating Income - as defined in the Management
Fee Rider.

<PAGE>

                  1.01.32 Operating Equipment - all china, glassware, linens,
silverware and uniforms used in, or held in storage for use in (or if the
context so dictates, required in connection with), the operation of the Hotel.

                  1.01.33  Operating Funds - as defined in Section 7.02.

                  1.01.3 Operating Period - the period beginning with the
Commencement Date and ending upon the expiration or termination of this
Agreement.

                  1.01.35 Operating Supplies - consumable items used in, or held
in storage for use in (or if the context so dictates, required in connection
with), the operation of the Hotel, including food and beverages, fuel, soap,
cleaning material, matches, stationery and other similar items.

                  1.01.36 Operating Years - the Operating Years shall coincide
with, and be identical to, the calendar years. If this Agreement shall be
terminated effective on a date other than December 31 in any year, then the
partial year from January 1 of the year in which such termination occurs to such
effective date of termination shall be treated as an Operating Year; references
to "full Operating Years" shall mean those Operating Years which are
co-extensive with full calendar years and shall exclude any partial Operating
Year at the beginning or the end of the term of this Agreement.

                  1.01.37 Other Managed Hotels - all hotels and inns within the
United States other than the Hotel owned, leased and/or operated by Manager or
any of its Affiliates.

                  1.01.38 Permitted Exceptions - (i) the Ground Lease, if any,
and the terms thereof; (ii) any Mortgage on the Land, and any modifications,
extensions, renewals and/or refinancings thereof and the terms thereof; (iii)
liens for Impositions not delinquent; (iv) undetermined or inchoate liens or
charges for labor or materials supplied to the Project in connection with the
construction or current operation thereof, which have not at the time been filed
or recorded pursuant to law; and (v) easements, restrictions on use, zoning laws
and ordinances, rights of way and other encumbrances and minor irregularities in
title, which do not individually or in the aggregate impair the use of the
Premises for hotel purposes.

                  1.01.39 Premises - a collective term for Land and
Improvements, and Lessee's interest therein, and any greater estate or interest
hereafter acquired, together with all entrances, exits, rights of ingress and
egress, easements and appurtenances belonging or pertaining thereto.

                  1.01.40 Project - a collective term for the real and personal
property comprising the Hotel, and the development and operation thereof.

                  1.01.41  Term - as defined in Section 2.01.

                  1.01.42 Uniform System of Accounts for Hotels - shall mean the
Uniform System of Accounts for Lodging Industry (Ninth Revised Edition, 1996);
such term shall not be deemed to include any subsequent revisions of the Uniform
System of Accounts for Hotels.

<PAGE>

         1.02 References. Except as otherwise specifically indicated, all
references to Article, Section and Subsection numbers refer to Articles,
Sections and Subsections of this Agreement, and all references to Exhibits refer
to the Exhibits attached hereto. The words "herein", "hereof", "hereunder",
"hereinafter" and words of similar import refer to this Agreement as a whole and
not to any particular Article, Section or Subsection hereof. The terms "include"
and "including" shall each be construed as if followed by the phrase "without
being limited to". Unless expressly stated to the contrary, reference to any
Section includes the following Subsections thereof.

                                   ARTICLE II

                                TERM AND RENEWAL

         2.01 The Term. The initial term of this Agreement ("Initial Term")
shall commence on the date hereof and shall expire at midnight of the day
preceding the date which is three (3) years from the Commencement Date.

         2.02 Renewal. The Agreement shall automatically renew for a period of
two (2) years, provided that neither party is in default. Any such renewal
period shall become part of the Term. In no event shall the Term of this
Agreement exceed the term of the License Agreement.

                                   ARTICLE III

Intentionally Deleted.

                                   ARTICLE IV

                                OPERATING PERIOD

         4.01 Authority and Duty of Manager. Manager shall have the sole and
exclusive right and obligation to manage and operate the Hotel pursuant to the
terms of this Agreement and Manager agrees that it shall manage and operate the
Hotel as a first-class hotel comparable to Other Managed Hotels in accordance
with the standards for Residence Inn / Courtyard by Marriott hotels, taking into
account the size, location and character of the Project. In connection
therewith, Manager shall have the authority and responsibility, subject to the
provisions of this Agreement, to (i) determine operating policy, standards of
operation, quality of service, the maintenance and physical appearance of the
Hotel and any other matters affecting operations and management; (ii) supervise
and direct all phases of advertising, sales and business promotion for the
Hotel; and (iii) carry out all programs contemplated by the Operating Budgets
and, as directed by Lessee, the Capital Renewals Budgets, which have been
approved by Lessee pursuant to Section 4.02. Lessee agrees that it will
cooperate reasonably with Manager to permit and assist Manager to carry out its
duties hereunder.

         4.02     Operating Budgets and Capital Renewals Budgets.

<PAGE>

                  4.02.1 Preparation. Manager will submit to Lessee not less
than forty-five (45) days in advance of each Operating Year, the following
budgets for such Operating Year:

                           (a) an Operating Budget composed of an estimate of
                  profit and loss by month, an estimated cash flow projection by
                  month, and departmental forecasts of operations (hereinafter
                  collectively called the "Operating Budgets"); and

                           (b) a budget covering estimated Capital Renewals,
                  which indicates in reasonable detail the replacements of, or
                  additions to, FF&E, and the nature of the special projects
                  covered thereby (herein called the "Capital Renewals
                  Budget(s)").

Budgets for Major Capital Improvements initiated under Section 12.08 shall be
treated separately and shall not be included in the Capital Renewals Budget.

                  4.02.2 Review. In connection with the submission of the
Operating Budgets and the Capital Renewals Budgets, the representatives of
Manager will meet with Lessee to have an in-depth discussion thereof, including
a comparison with the previous year's performance of the Hotel, a discussion of
marketing strategy, identity of markets and the proposed expenditures contained
in the Capital Renewals Budget.

                  4.02.3 Approval of Budgets. The Operating Budgets and the
Capital Renewals Budget shall be subject to the approval of Lessee, which shall
not be unreasonably withheld or delayed, it being contemplated that each such
Operating Budgets and Capital Renewals Budget shall be agreed upon by the
parties within thirty (30) days after the submission of the same by Manager to
Lessee. If Lessee shall fail to approve any Operating Budgets or Capital
Renewals Budget within thirty (30) days after its submittal by Manager, or to
submit its written objections thereof to Manager within such period, in case of
a dispute with regard to any Operating Budgets, then pending the settlement
thereof, or until such dispute is resolved in accordance with Section 12.04,
Manager shall be entitled to continue to operate the Hotel in accordance with
the standards set forth herein and shall be entitled to make expenditures which
are consistent with the Operating Budget for the immediately preceding Operating
Year; provided that, subject to the standards of performance described in
Subsection 4.02.4 below, the maximum approved amount of such expenditures shall
be equal to (a) the aggregate of all items set forth in the Operating Budget
which are not disputed by Lessee, plus (b) with respect to all items in the
Operating Budget which are disputed or objected to by Lessee, the amount
allocated to such item(s) in the Operating Budget for the immediately preceding
Operating Year increased by the greater of (i) five percent (5%), or (ii) the
difference between the Consumer Price Index (All Cities - All Items) (1982-84 =
100) (the "CPI"), on January 1 of the Operating Year immediately preceding the
Operating Year in question and the CPI on January 1 of the Operating Year in
question.

                  4.02.4 Performance Under Operating Budget. Manager shall use
commercially reasonable efforts to achieve the results set forth in the
Operating Budget with respect to any Operating Year; provided, however, that
Lessee acknowledges that the Operating Budget is a composition of estimates and,
therefore, Manager cannot guarantee or warrant that the actual operation of the
Hotel for any Operating Year will be as set forth in the Operating Budget for
such Operating Year.

<PAGE>

                  4.02.5 Intentionally Deleted.

                  4.02.6 Compliance with Capital Renewals Budget. Manager shall
at all times comply with the applicable Capital Renewals Budget as directed by
Lessee, and shall not deviate in any substantial respect therefrom without the
prior written consent of the Lessee. Notwithstanding the foregoing, Manager
shall be entitled to make additional expenditures not authorized under the then
applicable Capital Renewals Budget in case of emergencies arising out of fire or
any other like or unlike casualty, or in order to comply with any applicable
Legal Requirements. Manager will promptly notify Lessee of any expenditures not
authorized under the then applicable Capital Renewals Budget.

         4.03     Intentionally Deleted.

         4.04     Intentionally Deleted.

         4.05     Personnel.

                  4.05.1 General. Manager shall hire, discharge, promote and
supervise the Executive Staff of the Hotel, and shall supervise through said
Executive Staff the hiring, discharging, promotion and work of all other
operating and service employees of the Hotel. All members of the Executive Staff
of the Hotel shall be properly qualified for their positions, and the direct
compensation payable to such persons shall be comparable to the direct
compensation paid to the members of the Executive Staff of other comparable
hotels, taking into account the location and size of the Hotel. If the general
manager for the Hotel selected by Manager from time to time is not then an
existing employee of Manager providing services for Manager at one of the Other
Managed Hotels, Lessee shall have the right to consult with Manager regarding
the selection of any such individual as the general manager of the Hotel, but
the final selection of such general manager shall be at Manager's sole and
absolute discretion.

                  4.05.2 Manager as Employer. All employees of the Hotel shall
be employees of Manager or an affiliate of Manager, and all Compensation of such
employees shall be paid by Manager, and the amount of such payments shall
immediately be reimbursed to Manager by Lessee in accordance with Section 4.07
hereof. In the event an affiliate of Manager employs the employees of the Hotel,
Manager shall remain primarily liable for said employment. Manager shall also
have the right to use employees of Manager or its Affiliates not located at the
Hotel to provide services to the Hotel ("Off-Site Personnel") and the right to
have the general manager of the Hotel serve as the regional manger for Other
Managed Hotels, and all Compensation of such Off-Site Personnel shall
immediately be reimbursed to Manager by Lessee in accordance with Section 4.07
hereof, except Manager shall allocate a portion of said Regional Managers'
salaries and benefits to other supervised hotels. Likewise, Manager may also
allocation a portion of other Regional Manager's salaries and benefits from
other supervised hotels to the Hotel for benefits received by Hotel for such
services; provided that all such allocations shall have been approved during the
budgeting process for the then-current year. Manager shall also have the right
to have Off-Site Personnel performing regional or area duties relating to the
Hotel and Other Managed Hotels lodged at the Hotel from time to time free of
charge. Accordingly, Manager shall establish appropriate payroll accounts
covering all such employees of the Hotel. Arrangements shall be made such that
Manager can draw on the Hotel Accounts to transfer funds to such payroll
accounts immediately upon its payment of such Compensation. Manager shall
indemnify and hold Lessee harmless from and against any and all actions, suits,
claims, penalties, losses, damages and expenses, including reasonable attorneys'
fees, based upon or arising out of Manager's gross negligence or willful
misconduct in connection with the employment of any and all Hotel employees,
including but not limited to any claims based upon discrimination in employment.

<PAGE>

                  4.05.3 Labor Relations. Manager shall negotiate for the best
interest of Lessee with any labor unions representing employees of the Hotel,
but any collective bargaining agreement or labor contract resulting therefrom
will be executed by Manager as the employer. In addition, it is understood that,
with respect to labor negotiations not involving multi-employer bargaining
arrangements applicable to the Hotel and other hotel properties not owned or
managed by Manager, Manager shall consult with Lessee in advance of, and, to the
extent practicable, during the course of, negotiations with any labor union.

                  4.05.4 Manager Personnel. If Manager shall reasonably deem it
advisable, it shall assign the general manager, the controller and other members
of the Executive Staff of the Hotel from the employees of Manager and its
Affiliates or from the staff of Other Managed Hotels. All such employees will be
paid their regular Compensation, such Compensation to be paid by the Hotel, or
if Manager deems it advisable, by Manager, in which case Manager will be
reimbursed by Lessee therefor as provided in Section 4.07.

                  4.05.5 Business Expenses. The Executive Staff and other
appropriate employees of the Hotel shall also be reimbursed for all reasonable
business expenses pertaining to the Hotel, including business entertainment and
travel expenses, in accordance with the standard practices in effect at Other
Managed Hotels.

                  4.05.6 Benefit Plans. etc. Manager shall have the right to
provide, and shall be obligated to provide if required by Lessee, to the
employees of the Hotel who are eligible therefor and who are not covered by
collective bargaining or similar arrangements, with benefits of the incentive
plans, and the pension, profit sharing or other employee retirement, disability,
health or welfare or other benefit plan or plans now or hereafter applicable to
employees of Other Managed Hotels, and to charge the Hotel with the Hotel's pro
rata share of the costs and expenses of such plan or plans allocated to the
Hotel on the same basis as allocated to participating Other Managed Hotels.

                  The parties agree and acknowledge that Manager may (but shall
not be required to) provide benefits and allow participation in such plans on
whatever modified basis as it may determine appropriate under the circumstances,
and may waive any waiting period or any preconditions to coverage or
participation otherwise applicable to such employees. No statement, promise,
representation or warranty regarding the terms of such plans or the
participation or coverage of employees shall be enforceable, binding or
effective in any way unless made in writing and signed by an authorized
representative of Manager.

<PAGE>

                  Notwithstanding the foregoing, in no event shall Manager
initiate or adopt any plans, programs or benefits for Hotel employees not
otherwise in effect at Other Managed Hotels unless required by applicable
collective bargaining agreements.

                  4.06     Additional Responsibilities of Manager.

                  4.06.1   Manager shall in its own name, perform the following
additional services, or cause the same to be performed for the Hotel:

                           (a) establish and revise, as necessary,
         administrative policies and procedures, including policies and
         procedures for the control of revenue and expenditures, for the
         purchasing of supplies and services, for the control of credit, and for
         the scheduling of maintenance, and verify that the foregoing procedures
         are operating in a sound manner;

                           (b) subject to compliance with the applicable Capital
         Renewals Budget and subject to Section 4.06.02(b) hereof, and if
         directed by the Lessee, make all repairs, decorations, revisions,
         alterations and improvements to the Hotel as shall be reasonably
         necessary for the proper maintenance thereof in good order, condition
         and repair;

                           (c) subject to Section 4.06.02(b) hereof, purchase
         such Operating Equipment and Operating Supplies as shall be reasonably
         necessary for the proper operation of the Hotel in accordance with the
         Operating Budgets;

                           (d) apply for, and use its reasonable best effort to
         obtain and maintain, all licenses and permits required of Lessee or
         Manager in connection with the operation and management of the Hotel;
         Lessee agrees to execute and deliver any and all applications and other
         documents as shall be reasonably required and to otherwise cooperate,
         in all reasonable respects, with Manager in applying for, obtaining and
         maintaining such licenses and permits;

                           (e) use its reasonable best efforts to do, or cause
         to be done, all such acts and things in and about the Hotel as shall be
         reasonably necessary to comply with Legal Requirements and the terms of
         all insurance policies, and to discharge any lien, encumbrance or
         charge on or with respect to the Hotel and the operation thereof, other
         than Permitted Exceptions;

                           (f) in accordance with the Operating Budgets, pay all
         Impositions and insurance premiums, when due;

                           (g) use its reasonable best efforts to cause the
         Hotel to comply with all applicable covenants and provisions of the
         Ground Lease (if any) and Mortgage, and pay, when due, the installments
         of rental under the Ground Lease (if any) and of principal and interest
         on the Mortgage, if directed by the Lessee; and

<PAGE>

                           (h) subject to the prior written approval of Lessee,
         retain legal counsel for the Hotel, which legal counsel shall perform
         legal services under the direction of Manager.

                           4.06.02. Except in the following instances, the
         parties agree that Manager shall not be acting as agent of Lessee.
         Manager shall, as agent of Lessee, either in its own name or in the
         name of the Lessee, perform the following additional services, or cause
         the same to be performed for the Hotel:

                           (a) subject to the prior written approval of Lessee,
         consummate leases with respect to the commercial and office space in
         the Premises and concession or other arrangements with respect to other
         space and facilities on the Premises; and

                           (b) enter into any contracts, purchase orders or work
         orders for goods or services to the Hotel; provided that Lessee's prior
         written approval shall be required for any contract having a
         non-terminable term in excess of one year, or if the amount of the
         aggregate expenditures thereunder would, or are reasonably anticipated
         to, exceed $50,000.00 in the aggregate per annum.

         Lessee shall be entitled to meet with the regional manager of Manager
or other responsible Manager representatives on a quarterly basis to review and
discuss the operation of the Hotel, including any substantial deviation from the
operating strategies, policies or procedures which form the basis on which the
current Operating Budgets were made. Manager shall reasonably consider any
comments or suggestions of Lessee.

4.07 Reimbursements to Manager. In addition to the Management Fee provided for
in Article VI, Manager and its Affiliates shall be entitled to be reimbursed for
the following costs and expenses incurred in rendering services to the Hotel:

                  (a) the Compensation paid by Manager or its Affiliates to
         Hotel employees;

                  (b) the Compensation payable to all officers and employees of
         Manager and its Affiliates (other than Vice Presidents, and higher
         ranking executive officers), who are not assigned to the Hotel, under
         Subsection 4.05.4, while working exclusively on an assignment for the
         specific benefit of the Hotel;

                  (c) reasonable travel and entertainment expenses of all
         officers and employees of Manager and its Affiliates incurred in
         performing its duties hereunder in connection with any phase of the
         operation of the Hotel in accordance with the policies of Manager then
         in effect;

                  (d) the Compensation and expenses paid or reimbursed by
         Manager or its Affiliates to all independent consultants rendering
         services to the Hotel if and to the extent contemplated in the
         Operating Budgets or Capital Renewals Budget for such Operating Year or
         as otherwise approved by Lessee;

                  (e) the costs and expenses of centralized accounting services
         under Section 7.07; and

<PAGE>

                  (f ) all other expenditures which are authorized, permitted or
         required under the provisions of this Agreement which have been paid or
         funded by Manager on Lessee's behalf.

It is agreed that, to the extent the entire amount of Compensation or other
expense reimbursable to Manager or its Affiliates under the provisions of this
Section 4.07, or under any other provisions of this Agreement, is not incurred
solely for the benefit of the Hotel, then such amount or expense shall be
appropriately allocated.

Manager shall be entitled to reimburse itself and its Affiliates for the above
items out of the Hotel Accounts.

                                    ARTICLE V

                                    INSURANCE

         5.01     Coverage.

                  5.01.1   Required Insurance. The following insurance shall be
secured and maintained with respect to the Hotel at all times during the term of
this Agreement:

                           (a) All risk property insurance, including fire,
                  windstorm, flood, earthquake and other risks covered by
                  extended coverage endorsements on the Improvements and
                  contents in an amount equal to the full replacement value
                  thereof,

                           (b) All risk business interruption insurance,
                  including fire, windstorm, flood, earthquake and other risks
                  covered by extended coverage endorsements for full recovery of
                  the net profits of the Hotel for the entire period of any such
                  business interruption, or not less than twelve (12) months;

                           (c) Insurance against loss from accidental damage to,
                  or from the explosion of, boilers, air conditioning systems,
                  including refrigeration and heating apparatus, pressure
                  vessels and pressure pipes in an amount equal to the full
                  replacement value of such items;

                           (d) Business interruption insurance against loss from
                  accidental damage to, or from the explosion of, boilers, air
                  conditioning systems, including refrigeration and heating
                  apparatus, pressure vessels and pressure pipes for full
                  recovery of the net profits for the entire period of any such
                  business interruption;

                           (e) Comprehensive or Commercial general liability for
                  any claims or losses arising or resulting from the Hotel, with
                  combined single limits of $1,000,000 per each occurrence for
                  bodily injury and property damage. If the General Liability
                  coverages are provided by a Commercial General Liability
                  policy form, the General Aggregate Limit shall not be less
                  than $2,000,000, and it shall apply in total to this Hotel
                  only by specific endorsement. Such insurance shall be on an
                  occurrence policy form and shall include premised and
                  operations, independent contractors, blanket contractual,
                  products and completed operations, advertising injury,
                  employees as additional insureds, broad form property damage,
                  personal injury, incidental medical malpractice, severability
                  of interests, and explosion, collapse and underground coverage
                  during any construction;

<PAGE>

                           (f) If the Manager will provide valet parking,
                  garagekeepers liability insurance in a minimum amount of
                  $100,000;

                           (g) Statutory workers' compensation insurance on all
                  employees in accordance with the requirements of applicable
                  law;

                           (h) Employment practices liability insurance in an
                  amount not less that $1,000,000.00, per occurrence and
                  $1,000,000.00 in the aggregate (the amount of any deductible
                  under such insurance shall be paid out of Gross Revenues
                  unless the claim arises out of Manager's gross negligence or
                  willful misconduct); and

                           (i) Insurance against such other insurable risks as
                  any mortgagee may, from time to time, reasonably require;

                           (j) Liquor Liability (if applicable) for combined
                  single limits of bodily injury and property damage of not less
                  than $1,000,000 per occurrence;

                           (k) Business Auto Liability including owned,
                  non-owned and hired vehicles for combined single limits of
                  bodily injury and property damage of not less than $1,000,000
                  per occurrence;

                           (l) Umbrella Excess Liability in amounts not less
                  than $9,000,000 in excess of the liability insurance required
                  in subsections (e), (g), (j) and (k) immediately above. The
                  amount of such coverage shall be increased as Franchisor
                  requires;

                           (m) Comprehensive crime insurance in a minimum amount
                  of $50,000.

                  5.01.2 Responsibility to Maintain. During the Operating
Period, Lessee, or if and to the extent requested by Lessee, Manager at the
expense of Lessee, shall procure and maintain the insurance policies required
under clauses (a) through (f) and (i) through (l) of Subsection 5.01.1, and
Manager shall procure and maintain the coverages required under clauses (g), (h)
and (m) of that Subsection, at the expense of Lessee.

                  5.01.3 Requirements. All policies of insurance shall be
written on an "occurrence" basis, if possible. The insurance coverage shall in
any event comply with the requirements of the Mortgage, if any. Any deductibles
within the insurance policies required above shall not exceed $25,000, except
for wind, flood, and earthquake deductibles which shall be approved by Lessee or
bought down to $25,000 at the expense of Lessee.

         5.02     Policies and Endorsements.

<PAGE>

                  5.02.1 Policies. All insurance provided for under the above
Section 5.01 shall be effected by policies issued by insurance companies of good
reputation and of sound and adequate financial responsibility, and rated no less
than A-VIII in Best's Insurance Guide. The party procuring such insurance shall
deliver to the other party certificates of insurance with respect to all of the
policies of insurance so procured, including existing, additional and renewal
policies, and in the case of insurance about to expire, shall deliver
certificates of insurance with respect to the renewal policies to the other
party not more than thirty (30) days after the respective dates of expiration.
If Lessee shall elect to procure any portion of the property insurance, it shall
also deliver to Manager full copies of the policies under which such insurance
is maintained.

                  5.02.2 Endorsements. All policies of insurance provided for
under this Article V shall have attached thereto (a) an endorsement that such
policy shall not be canceled or materially changed without at least thirty (30)
days prior written notice to Lessee and Manager, and (b) an endorsement to the
effect that no act or omission of Lessee or Manager shall affect the obligation
of the insurer to pay the full amount of any loss sustained. All insurance
policies procured by Lessee shall contain an endorsement to the effect that such
insurance shall be primary to any similar insurance carried by Manager.

                  5.02.3 Named Insureds. All policies of insurance required
under clauses (a) through (d) of Subsection 5.01.1 shall be carried in the name
of Lessee, and, if required, Mortgagee and the lessor under the Ground Lease, if
any, and Manager shall be named as a loss payee as to business interruption
insurance. Losses thereunder shall be payable to the parties as their respective
interests may appear. Notwithstanding the foregoing, if Mortgagee is an
institutional lender, and so requires, losses may be made payable to Mortgagee,
or to a bank or trust company qualified to do business in the state where the
Hotel is located, in either instance as trustee for the custody and disposition
of the proceeds therefrom. Lessee agrees to use reasonable efforts to attempt to
cause any mortgagee to agree that its mortgage shall contain a provision to the
effect that proceeds from property insurance shall be made available for
restoration of the Hotel. All insurance policies required in clauses (e), (f),
and (i) through (l) of Subsection 5.01.1, shall name Lessee and its Affiliates,
directors, officers, agents and employees of each such entity as named insureds,
and Manager, its Affiliates, directors, officers, agents and employees of each
such entity as additional insureds on a primary basis, irrespective of any other
coverage, whether collectable or not. Policies required in clauses (g), (h) and
(m) shall be written in the name of the employer.

         5.03 Waiver of Liability. Neither Manager nor Lessee shall assert
against the other, and do hereby waive with respect to each other, or against
any other entity or person named as additional insureds on any policies carried
under this Article V, any claims for any losses, damages, liability or expenses
(including attorneys' fees) incurred or sustained by either of them on account
of injury to persons or damage to property arising out of the ownership,
development, construction, completion, operation or maintenance of the Hotel, to
the extent that the same are covered by the insurance required under this
Article V. Each policy of insurance shall contain a specific waiver of
subrogation reflecting the provisions of this Section 5.03, and a provision to
the effect that the existence of the preceding waiver shall not affect the
validity of any such policy or the obligation of the insurer to pay the full
amount of any loss sustained.

         5.04 Insurance by Manager. Any insurance provided by Manager under this
Article V may, subject to Lessee's approval, be effected under policies of
blanket insurance which cover other properties of Manager and its Affiliates,
and Manager shall have the right to charge the Hotel with the Hotel's pro rata
share of such premiums shall be allocated to the Hotel on the same basis as

<PAGE>

allocated to participating Other Managed Hotels. Any policies of insurance
maintained by Manager pursuant to the provisions of this Article V may contain
deductible provisions in such amounts as are maintained with respect to Other
Managed Hotels, for which Lessee shall be responsible or which Manager, at
Lessee's expense, may pay.

                                   ARTICLE VI

                                 MANAGEMENT FEE

In addition to the reimbursements required under Section 4.07 for Manager's
services hereunder during the Operating Period, Lessee shall pay Manager the
Management Fee computed and made payable as provided in the Management Fee Rider
attached hereto.

                                   ARTICLE VII

                  ACCOUNTS; WORKING FUNDS; RECORDS AND REPORTS

7.01     Hotel Accounts:  Expenditures.

         (a) All funds derived from the operation of the Hotel shall belong to
and be the property of Lessee and shall be deposited daily by Manager in the
Local Operating Account. All disbursements and withdrawals from said accounts as
required or permitted under this Agreement shall be made by bonded
representatives of Manager whose signatures have been authorized. Reasonable
petty cash funds and house banks, in amounts satisfactory to Lessee, shall be
maintained at the Hotel.

         (b) All payments to be made by Manager hereunder shall be made from
authorized bank accounts, from petty cash funds or from Operating Funds provided
by Lessee pursuant to Section 7.02. All debts and liabilities which have been
validly incurred by Manager as a result of its operation and management of the
Hotel pursuant to the terms hereof, whether asserted before or after
Termination, will be paid by Lessee to the extent funds are not available for
that purpose from Gross Revenues. Manager shall not be required to make any
advance or payment to or for the account of Lessee except out of such funds, and
Manager shall not be obligated to incur any liability or obligation for Lessee's
account without assurances that necessary funds for the discharge thereof will
be provided by Lessee.

         (c) All banks accounts shall be owned by Lessee and shall be solely
controlled and operated by Manager ; the agency status of Manager shall be
designated on the checks and drafts drawn on such bank accounts.

         (d) Manager shall, on a bi-weekly basis (on a Friday, or if Friday is a
legal holiday, on the next business day), cause all amounts in the Hotel
operating accounts in excess of the Minimum Balance (as defined below) to be
wired electronically to a bank account designated for such purposes by Lessee.

<PAGE>

         (e) Manager shall submit to the Lessee by the fifteenth (15th) calendar
day of each Accounting Period a consolidated report for the Accounting Period
most recently ended detailing the flow of cash into and out of the Local
Operating Account, including investment income, cash deposits, credit card
deposits, payroll checks paid, operating expense checks paid, ACH drafts paid,
wires transmitted to Lessee and any other use of cash. This report must also
reconcile to the sum of the individual general ledger cash balances of the
Hotel.

         7.02 Minimum Balance. During the Term of this Agreement, Lessee shall
maintain cash in the Local Operating Account ("Operating Funds") sufficient in
amount to properly operate the Hotel. If at any time during the Term, the funds
in the Local Operating Account fall below the Minimum Balance (as defined
below), Lessee shall deposit in the Local Operating Account additional funds in
an amount equal to the difference between the funds therein and the Minimum
Balance. As used in this Agreement, "Minimum Balance" means $50,000 in cash.

         7.03 Books and Records. Manager shall keep full and adequate books of
account and such other records as are necessary to reflect the results of the
operation of the Hotel. For this purpose, Lessee agrees that it will make
available to Manager, or its representatives, all books and records pertaining
to the prior operation of the Hotel and any Major Capital Improvements. Manager
shall keep the books and records for the Hotel in all material respects in
accordance with the Uniform System of Accounts for Hotels, on an accrual basis
in accordance with generally accepted accounting principles consistently
applied.

         7.04     Reports to Lessee. Manager shall deliver, or cause to be
delivered, to Lessee the following statements:

                  (a) within fifteen (15) days after the end of each calendar
         month, a detailed profit and loss statement, substantially in the form
         used at Other Managed Hotels, showing the results of operation of the
         Hotel for such month and the year-to-date, and a statement of
         departmental operations, for such month and year-to-date, and having
         annexed thereto a computation in reasonable detail of the Management
         Fee for such preceding month and the year-to-date, calculated as
         provided in the Management Fee Rider and for the second full year of
         the Operating Period, such reports shall include a comparison with the
         prior year's results, and a balance sheet;

                  (b) within fifteen (15) days after the end of each Operating
         Year, an unaudited financial statement consisting of a balance sheet, a
         related statement of profit and loss and a statement of cash flows,,
         and having annexed thereto a computation in reasonable detail of the
         Management Fee for such year, calculated as provided in the Management
         Fee Rider and for the second full year of the Operating Period, such
         reports shall include a comparison with the prior year's results.
         Audited financial statements shall be at Lessee's sole cost and
         expense.

         7.05 Lessee's Rights to Inspection and Review. Upon reasonable advance
written notice to the general manager of the Hotel, Manager shall accord to
Lessee, its accountants, attorneys and agents, the right to enter upon any part
of the Hotel at all reasonable times during the term of this Agreement for the

<PAGE>

purpose of examining or inspecting the same or examining and making extracts of
the financial books and records of the Hotel or for any other purpose which
Lessee, in its discretion, shall deem necessary or advisable, but same shall be
done without material disruption to the operation and business of the Hotel and
for the second full year of the Operating Period, such reports shall include a
comparison with the prior years results.

         7.07 Centralized Accounting Services. Manager may, in its reasonable
discretion, handle directly, or through an Affiliate or one of the Other Managed
Hotels, any of the accounting functions for the Hotel, including without
limitation, accounts payable, general ledger, payroll and accounts receivable,
or any part thereof, on a centralized basis with one or more Other Managed
Hotels for the purpose of achieving a more cost-efficient operation of the
Hotel. Manager or its Affiliate or the Other Managed Hotel furnishing such
centralized accounting functions shall be entitled to be reimbursed or paid from
the Hotel Accounts for (i) the pro rata share of the costs and expenses of
providing such accounting functions allocated to the Hotel on the same basis as
allocated to participating Other Managed Hotels utilizing such centralized
accounting services, and (ii) such amounts required to cover or reimburse
Manager, its Affiliate or Other Managed Hotel for the payment of authorized
expenditures by such entity as a part of such centralized accounting services
and as provided on the attached Management Fee Rider.

                                  ARTICLE VIII
                               TERMINATION RIGHTS

         8.01    Termination by Lessee. If any one of the following events shall
happen:

                           (a) if Manager shall fail to keep, observe or perform
                   any material covenant, agreement, term or provision of this
                   Agreement to be kept, observed or performed by Manager, and
                   such default shall continue for a period of thirty (30) days
                   after notice thereof by Lessee to Manager;

                           (b) if Manager shall apply for or consent to the
                   appointment of a receiver, trustee or liquidator of Manager
                   or of all or a substantial part of its assets, file a
                   voluntary petition in bankruptcy, or admit in writing its
                   inability to pay debts as they come due, make a general
                   assignment for the benefit of creditors, file a petition or
                   an answer seeking reorganization or arrangement with
                   creditors or take advantage of any insolvency law, or file an
                   answer admitting the material allegations of a petition filed
                   against Manager in any bankruptcy, reorganization or
                   insolvency proceeding, or if any order, judgment or decree
                   shall be entered by any court of competent jurisdiction, on
                   the application of a creditor, adjudicating Manager a
                   bankrupt or insolvent or approving a petition seeking
                   reorganization of Manager or appointing a receiver, trustee
                   or liquidator of Manager or of all or a substantial part of
                   its assets, and such order, judgment or decree shall continue
                   unstayed and in effect for any period of sixty (60)
                   consecutive days;

<PAGE>

                           (c) if a right of termination on the part of Lessee
                   shall have arisen under Sections 10.01 or 10.02;

                           (d) the License Agreement is terminated due to the
                   action or inaction of Manager;

                           (e) the Hotel is sold pursuant to a Permitted
                   Transfer under Section 9.03.2(a) or (b); or

                           (f) In any Operating Year, Manager fails to both (1)
                   achieve 90% of budgeted Gross Operating Profit for the
                   Operating Year, provided, however, Manager shall have the
                   right, but not the obligation, to cure such failure by within
                   sixty (60) days following the end of such Operating Year,
                   contributing to Gross Operating Profit for such Operating
                   Year an amount necessary to cause Gross Operating Profit to
                   equal at least ninety percent (90%) of the amount of Gross
                   Operating Profit set forth in the Operating Budget for such
                   Operating Year, in which event Lessee shall have no right to
                   terminate this Management Agreement with respect to the
                   Hotel; and (2) fails to maintain a Smith Travel Research
                   RevPar Share Index of at least 110% market share for the
                   Operating Year.

then Lessee shall have the right to terminate this Agreement upon written notice
to Manager given at any time following the occurrence of such event, or if a
period of grace is provided, then following the expiration of the applicable
grace period, and while such event shall be continuing, and this Agreement shall
terminate upon the date specified therein, which date shall be not less than
thirty (30) days nor more than seventy-five (75) days after the date of the
giving of such notice.

         8.02      Termination by Manager. If any of the following events shall
happen:

                           (a) Lessee shall fail to provide funds to be
                   deposited in the Local Operating Account in accordance with
                   the provisions of Section 7.02 within ten (10) days after
                   Manager's request for such additional funds, and such failure
                   continues for an additional ten (10) day period after written
                   notice by Manager to Lessee that such funds have not yet been
                   received;

                           (b) Lessee shall fail to keep, observe or perform any
                   other material covenant, agreement, term or provision of this
                   Agreement to be kept, observed or performed by Lessee, and
                   such default shall continue for a period of thirty (30) days
                   after notice thereof by Manager to Lessee;

                           (c) [Intentionally Deleted.]

                           (d) Lessee shall apply for or consent to the
                   appointment of a receiver, trustee or liquidator of Lessee or
                   of all or a substantial part of its assets, file a voluntary
                   petition in bankruptcy or admit in writing its inability to
                   pay its debts as they come due, make a general assignment for
                   the benefit of creditors, file a petition or an answer

<PAGE>

                   seeking reorganization or arrangement with creditors or to
                   take advantage of any insolvency law, or file an answer
                   admitting the material allegations of a petition filed
                   against Lessee in any bankruptcy, reorganization or
                   insolvency proceeding, or if an order, judgment or decree
                   shall be entered by any court of competent jurisdiction, on
                   the application of a creditor, adjudicating Lessee a bankrupt
                   or insolvent or approving a petition seeking reorganization
                   of Lessee or appointing a receiver, trustee or liquidator of
                   Lessee or of all or a substantial part of the assets of
                   Lessee, and such order, judgment or decree shall continue
                   unstayed and in effect for any period of sixty (60)
                   consecutive days;

                           (e) if because of a default under the Ground Lease
                   (if any) or the Mortgage, the Ground Lease shall be
                   terminated or the Mortgage shall be foreclosed (or the Hotel
                   sold in lieu of foreclosure) or such steps shall be taken to
                   terminate the Ground Lease or foreclose on the Mortgage such
                   that Manager's ability to manage the Hotel shall be
                   materially adversely affected; or

                            (f) Lessee shall be in default under the License
                   Agreement and such default shall have continued after the
                   expiration of any applicable grace period with respect
                   thereto or the License Agreement shall have been terminated,

then Manager shall have the right to terminate this Agreement upon written
notice to Lessee given at any time following the occurrence of any such event,
or if a period of grace is provided, then following the expiration of the
applicable period, and while such event shall be continuing, and this Agreement
shall terminate upon the date specified therein, which date shall be not less
than thirty (30) days nor more than seventy-five (75) days after the date of the
giving of such notice.

         8.03 Curing Defaults. Any default by Manager under clause (a) of
Section 8.01 or Lessee under clause (b) of Section 8.02, as the case may be,
which is susceptible of being cured, shall not constitute a basis of termination
if the nature of such default shall not permit it to be cured within the grace
period allotted, provided that within such grace period either Manager or Lessee
shall have commenced to cure such default and shall proceed to complete the same
with reasonable diligence.

         8.04 Effect of Termination. The termination of this Agreement under the
provisions of this Article VIII shall not affect the rights of the terminating
party with respect to any damages it has suffered as a result of any breach of
this Agreement, nor shall it affect the rights of either party with respect to
liability or claims accrued, or arising out of events occurring, prior to the
date of termination.

         8.05     Remedies.

                           (a) If this Agreement is terminated due to an event
                       of default by Lessee arising under Section 8.02which
                       remains uncured after any applicable cure period, Manager
                       shall be entitled to all damages incurred by Manager as a
                       result of such default, including damages resulting from
                       early termination of the Agreement, including but not
                       limited to an early termination fee equal to the average
                       monthly amount of the total  Management Fee, including
                       Incentive fees paid or which would have been due or owed
                       to Manager for the Hotel during the immediately preceding
                       twelve (12) month period, multiplied by the lesser of
                       either (i)  thirty six (36), provided there are at least
                       three (3) years remaining under the Term, or (ii) the
                       total number of months remaining under the Term if there
                       is less than three  (3) years remaining under the Term.

<PAGE>

                           (b) If this Agreement is terminated due to an event
                      of default by Manager arising under Section 8.01(a) and
                      (d) which remains uncured after any applicable cure
                      period, Lessee shall be entitled to all damages incurred
                      by Lessee as a result of such default, including damages
                      resulting from early termination of the Agreement, but
                      excluding punitive damages(c) Neither the right of
                      termination nor the right to sue for damages nor any other
                      remedy available to either party hereunder shall be
                      exclusive of any other remedy given hereunder or now or
                      hereafter existing at law or in equity.

         8.06     Intentionally Deleted.

         8.07 Preservation of Books and Records. In the event of the expiration
or earlier termination of this Agreement, Lessee shall preserve all books and
records, files and correspondence remaining at the Hotel in accordance with
Lessee's record retention guide then in effect after the expiration or
termination of this Agreement, and Lessee shall provide access to Manager, and
its representatives, to such books, records, correspondence and files at all
reasonable times.

         8.08 Extension Date of Termination. Notwithstanding any contrary
provision of this Agreement, the date of termination of this Agreement, other
than upon expiration pursuant to Article 2.01, shall be extended so that the
date of termination after notice of termination is given to or by Manager shall
be on a date which is not earlier than fifteen (15) days plus the number of
days, if any, Manager is required to give its employees advance notice of
termination of employment as required by the Worker Adjustment and Retraining
Act, 29 U.S.C., ss.2101 et. seq., as hereafter amended, or any similar federal
or state statute.

                                   ARTICLE IX

                                  TITLE MATTERS

         9.01 Title to Hotel. Lessee covenants that, as of the date hereof, it
    has either good and marketable fee title to, or a valid and subsisting
    leasehold estate in, the Land. Lessee further covenants that, subject to the
    terms and conditions of this Article IX, throughout the term of this
    Agreement it shall maintain full ownership in such fee interest or leasehold
    estate in the Premises, and good title to the FF&E and the Operating
    Equipment.

         9.02     Sale or Assignment by Manager.

                  9.02.1 Prohibited Transfers. Except as provided in the
following Subsection 9.02.2, Manager shall not assign this Agreement,
voluntarily or by operation of law, without the prior written consent of Lessee.
The disposition by Manager of its controlling interest in any Affiliate to which
it has previously assigned this Agreement, shall be deemed to be a prohibited
assignment hereunder requiring the prior written consent of Lessee. Further,
Manager shall not transfer or sell its Management Company, or dispose of the
controlling interest of McKibbon Brothers (or an affiliate thereof) without
Lessee's consent, which shall not be unreasonably withheld. It is understood and
agreed that any consent granted by Lessee to any such assignment or other
transfer shall not be deemed a waiver of the covenant herein contained against
assignment or transfer in any subsequent case. No assignment or transfer of this
Agreement shall operate to release Manager from any of its obligations under
this Agreement.

<PAGE>

                  9.02.2 Permitted Transfers. Manager, without the consent of
Lessee, shall have the right to assign this Agreement to any Affiliate of
Manager. Upon execution of any assignment as aforesaid under this Subsection
9.02.2, or with Lessee's consent under Subsection 9.02.1, notice thereof in the
form of a duplicate original of such assignment shall be delivered to Lessee
forthwith.

         9.03     Sale, Lease or Assignment by Lessee.

                  9.03.1 Prohibited Transfers. Except as otherwise provided
herein, Lessee (or the owner of the Hotel) agrees that, without the consent of
Manager, which shall not be unreasonably withheld, it will not sell, lease or
otherwise transfer or convey the Hotel, or any part thereof, or assign this
Agreement, except as provided in this Section 9.03; such prohibition shall
apply, without limitation, to any sale and leaseback transaction.
Notwithstanding the foregoing, Lessee may, without Manager's consent, sell or
otherwise transfer any part of the Land, or grant easements on or across the
Land, provided such conveyances do not materially and adversely affect the
operation of the Hotel.

                  9.03.2. Permitted Transfers.

                           (a) If the Term of this Agreement is not on a
                   month-to-month basis, and if Lessee (or the owner of the
                   Hotel) shall have received a bona fide written offer to
                   purchase or lease the Hotel and Lessee (or the owner of the
                   Hotel), pursuant to the terms of such offer, desires to sell
                   or lease the Hotel to any person, firm or corporation, Lessee
                   (or the owner of the Hotel) shall have the right to sell the
                   Hotel and terminate this Agreement, provided either (a)
                   Lessee pays to Manager a termination payment equal to the
                   average monthly amount of the total Management Fee, including
                   incentive fees paid or which would have been due or owed to
                   Manager for the Hotel during the immediately preceding twelve
                   (12) month period of the Term (or during the actual number of
                   months that have elapsed in the Term if such number of months
                   is less than twelve months), multiplied by the lesser of
                   either (i) Thirty Six (36), provided there are at least three
                   (3) years remaining under the Term, or (ii) the total number
                   of months remaining under the Term if there is less than
                   three 3) years remaining under the Term; or (b) within sixty
                   (60) days following termination, Lessee or any Affiliate)
                   enters into a management agreement with Manager for a
                   replacement hotel or hotels that are commercially reasonably
                   acceptable to Manager, which replacement property shall be a
                   reasonable distance from other hotels that Manager manages
                   and have budgeted annual Gross Operating Revenues no less
                   than the actual annual Gross Operating Revenues of the
                   terminated Hotel (provided that, if Lessee elects to replace
                   pursuant to this clause (b), for any period in which a

<PAGE>

                   replacement management agreement is not yet in place Lessee
                   shall pay to Manager the fees which Manager would have
                   received for such period if the termination had not
                   occurred); or (c) Manager is engaged by the third party
                   purchaser to manage the Hotel, on terms acceptable to Manager
                   in its sole discretion, within sixty (60) days following such
                   termination.

                           (b) If the Term of this Agreement is on a
                  month-to-month basis, Lessee (or the owner of the Hotel) may
                  sell or otherwise transfer the Hotel, and terminate this
                  Agreement, upon thirty (30) days written notice to Manager.

                           (c) Notwithstanding the foregoing, Lessee (or the
                  owner of the Hotel) may sell or otherwise transfer the Hotel
                  to any Affiliate of the Lessee at any time.

                           (d) Notwithstanding the foregoing, Lessee (or the
                  owner of the Hotel) may grant a mortgage, deed of trust, or
                  other encumbrance or security interest ("Mortgage") in the
                  Hotel or any part thereof from time to time.

9.04 Successors and Assigns. Subject to the foregoing, this Agreement shall
inure to the benefit of and be binding upon the parties hereto, their respective
heirs, legal representatives, successors and assigns, and with respect to
Lessee, the phrase "successors and assigns" shall include purchasers and
lessees, or sublessees, of Lessee's interest in the Premises.

                                    ARTICLE X

                             DAMAGE OR DESTRUCTION;

                                 EMINENT DOMAIN

         10.01 Damage or Destruction. If the Hotel shall be substantially
damaged by fire or other casualty, or in the event that Mortgagee does not make
sufficient proceeds of insurance available to Lessee to permit Lessee to rebuild
and restore the Premises to a condition which permits the continued operation of
the Hotel by Manager as contemplated by this Agreement, then Lessee or Manager,
by written notice to the other party given within sixty (60) days after the
occurrence of such event, shall have the right to terminate this Agreement on
the basis that Lessee does not elect to rebuild or restore the Hotel, and
neither party shall have any further obligation to the other party hereunder,
except with respect to liability accruing, or based upon events occurring, prior
to the effective date of such termination. Notwithstanding the foregoing, if
Lessee terminates this Agreement due to fire or casualty as provided above,
Lessee shall pay to Manager a termination fee equal to the average monthly
amount of the total Management Fee, including Incentive fees paid or which would
have been due or owed to Manager for the Hotel during the immediately preceding
twelve (12) month period, multiplied by the lesser of either (i) thirty six
(36), provided there are at least three (3) years remaining under the Term, or
(ii) the total number of months remaining under the Term if there is less than
three (3) years remaining under the Term. Manager shall not be entitled to any
such termination fee in the event Manager terminates as provided above. For the
purposes hereof, the Hotel shall be deemed to have been substantially damaged if

<PAGE>

the estimated length of time required to restore the Hotel substantially to its
condition and character just prior to the occurrence of such casualty shall be
in excess of one hundred eighty (180) days. If this Agreement shall not
terminate in the event of damage to the Hotel, either because (i) the damage
does not amount to substantial damage as described above, or (ii)
notwithstanding substantial damage to the Hotel, neither party has elected to
terminate this Agreement, Lessee shall elect to restore the Hotel, then Lessee
shall proceed with all due diligence to commence and complete the restoration of
the Hotel to its condition and character just prior to the occurrence of such
casualty, but only to the extent of insurance proceeds available to Lessee.

10.02 Eminent Domain. If all of the Premises, or such substantial portion
thereof as to make it infeasible, in the reasonable opinion of Lessee or
Manager, to restore and continue to operate the remaining portion for the
purposes contemplated hereby, shall be taken through the exercise, or by
agreement in lieu of the exercise, of the power of eminent domain, then
effective upon the date that Lessee shall be required to surrender possession of
the Premises, or a portion thereof, either party may terminate this Agreement
and neither party shall have any further obligation to the other party
hereunder, except with respect to liabilities accruing, or based upon events
occurring, prior to the effective date of such termination. In the event a
substantial portion of the Premises is taken, but Mortgagee fails or refuses to
make available to Lessee sufficient proceeds of such eminent domain proceedings
in order to permit Lessee to make appropriate alterations, restorations or
repairs to the remainder of the Premises, so that the Hotel would continue to be
operable for the purposes herein contemplated, then Lessee shall have the right
to terminate this Agreement upon written notice to Manager and, upon the date
that Lessee shall be required to surrender possession of the Premises to the
condemning authority, this Agreement shall terminate and neither party shall
have any further obligation to the other party hereunder, except with respect to
liabilities accruing, or based upon events occurring, prior to the effective
date of such termination. Any election to terminate this Agreement must be made
within thirty (30) days of receipt of actual written notice from the condemning
authority setting out the details of the proposed taking. If such notice does
not provide the parties with sufficient detail so that a decision may be made
regarding termination, the parties may mutually agree to extend the above time
period in their discretion. In the event this Agreement is not terminated due to
eminent domain in this section 10.02, then Lessee shall proceed with all due
diligence to repair any damage to the Hotel, or to alter or modify the Hotel so
as to render it a complete architectural unit which can be operated as a hotel
of substantially the same type and class as before, but only to the extent of
condemnation proceeds available to Lessee. Lessee and/or its Lessor shall be
solely entitled to any Award, subject only to any exceptions set out below.
Manager may seek an award from the condemning authority for its loss of business
interest only, if such separate claim is permitted. In the event the condemning
authority does award Manager for such loss, Manager shall only be entitled to
retain that portion of its condemnation award which is necessary to compensate
Manager for its lost management fees, which shall be calculated in the same
manner as termination fees for Damage by Casualty, as set out above in Section
10.01. Manager shall promptly remit any additional amount to Lessee. In the
event any jurisdiction would permit both Manager and Lessee to seek an award for
their loss of business interests (respectively), this section shall not prohibit
Lessee from making a separate claim therefor. Lessee shall compensate Manager
for its lost management fees (calculated in the same manner as termination fees
for Damage by Casualty, as set out above in Section 10.01) only if Manager is
not permitted to seek an award directly from the condemning authority, and only
to the extent of any actual condemnation proceeds received by Lessee.

<PAGE>

                                   ARTICLE XI

                                 REPRESENTATIONS

         11.01  Manager's Representations.  The Manager covenants, represents
and warrants as follows:

         11.01.1 Qualified Lodging Facility. During the Term of this Agreement,
the Manager shall qualify as an "eligible independent contractor" as defined in
Section 856(d)(9) of the Internal Revenue Code of 1986, as amended (the "Code").
To that end, during the Term of this Agreement, the Manager:

                            (i) shall not permit wagering activities to be
                   conducted at or in connection with the Hotel;

                            (ii) shall not own, directly or indirectly (within
                   the meaning of Section 856(d)(5) of the Code), more than 35%
                   of the shares of Equity Inns, Inc.;

                            (iii) shall be actively engaged in the trade or
                   business of operating "qualified lodging facilities" (defined
                   below) for persons who are not "related persons" within the
                   meaning of Section 856(d)(9)(F) of the Code with respect to
                   Equity Inns, Inc. or the Lessee ("Unrelated Persons"). In
                   order to meet this requirement, the Manager agrees that it
                   (i) shall derive at least 10% of both its revenue and profit
                   from operating "qualified lodging facilities" for Unrelated
                   Persons and (ii) shall comply with any regulations or other
                   administrative guidance under Section 856(d)(9) of the Code
                   with respect to the amount of hotel management business with
                   Unrelated Persons that is necessary to qualify as an
                   "eligible independent contractor" within the meaning of such
                   Code section (so long as the Lessee has advised the Manager
                   in writing of such regulations or other administrative
                   guidance).

A "qualified lodging facility" is defined in Section 856(d)(9)(D) of the Code
and means a "lodging facility" (defined below), unless wagering activities are
conducted at or in connection with such facility by any person who is engaged in
the business of accepting wagers and who is legally authorized to engage in such
business at or in connection with such facility. A "lodging facility" is a
hotel, motel or other establishment more than one-half of the dwelling units in
which are used on a transient basis, and includes customary amenities and
facilities operated as part of, or associated with, the lodging facility so long
as such amenities and facilities are customary for other properties of a
comparable size and class owned by other owners unrelated to Equity Inns, Inc.

         11.01.2 Rents from Real Property. During the Term of this Agreement,
the Manager shall not sublet the Hotel or enter into any similar arrangement on
any basis such that the rental or other amounts to be paid by the sublessee
thereunder would be based, in whole in part, on either (i) the net income or
profits derived by the business activities of the sublessee or (ii) any other
formula such that any portion of the rent would fail to qualify as "rents from
real property" within the meaning of Section 856(d) of the Code, or any similar
or successor provision thereto.

<PAGE>

         11.01.3 Termination for Failure of Representations. In the event that
the foregoing representations become false, Lessee shall have the rights
afforded by Section 8.01 herein, and Manager shall have the benefit of any cure
period offered therein. Notwithstanding the foregoing and/or anything in Section
8.01 or elsewhere herein to the contrary, should the REIT status of Equity Inns,
Inc. and/or Equity Inns Trust be threatened because the foregoing
representations are false, then any cure period offered in Section 8.01 shall be
reduced in part or in full to the extent necessary to avoid any termination or
other material impact on the REIT status of Equity Inns, Inc. and/or Equity Inns
Trust whereupon Lessee may summarily terminate this Agreement upon written
notice to Manager, and subject to Lessee's existing loan documents.

         11.02  Representations of Lessee.  The Lessee covenants, represents and
warrants as follows:

     (a) The Lessee is the lessee of the Hotel and has full power and authority
to enter into this Agreement;

     (b) The Hotel is zoned for use as a hotel, motor hotel or resort, and all
necessary governmental and other permits and approvals for such use and for the
food and beverage (including the sale and service of liquor, if applicable)
operations of the Hotel have been obtained and are in full force and effect; and

     (c) Throughout the term of this Agreement, the Lessee will pay, keep,
observe and perform all payments, terms, covenants, conditions and obligations
under any lease or other concession, any deed of trust, mortgage or other
security agreement, and any real estate taxes or assessments covering or
affecting the Hotel, unless compliance with or payment thereof is, in good
faith, being contested and enforcement thereof is stayed.

                                   ARTICLE XII

                               GENERAL PROVISIONS

         12.01 Purchases from Manager and Manager's Affiliates. In purchasing
goods, supplies, equipment and services for the Hotel, including, without
limitation, Operating Supplies, Operating Equipment, insurance and long distance
telephone services, Manager may utilize purchasing procurement services of
affiliates of Manager and/or other group buying techniques involving Other
Managed Hotels, as well as other hotels operated by Manager and its Affiliates,
provided that the cost thereof shall be competitive with that which would be
charged by non-affiliated third party vendors in an arms-length transaction. In
such event, such affiliates and/or Manager (as the case may be) may mark up
their costs or receive and retain a fee or other compensation from vendors and
service providers for their services in making the benefit of volume purchases
available to the Hotel or negotiating and implementing the arrangements with
such vendors or providers, provided that the total cost thereof (including such
mark-up, fee or other compensation charged or retained by Manager or its
affiliates) shall be competitive as aforesaid.

<PAGE>

         12.02 Budgets. In preparing all budgets and Operating Budgets to be
submitted to Lessee hereunder, including, without limitation, the Capital
Renewals Budgets under Section 4.02, Manager shall base its estimates upon the
most recent and reliable information then available, taking into account the
location of the Hotel and its experience in other comparable hotels. Manager
reserves the right, and shall have the obligation, to update and revise any such
budgets and Operating Budgets from time to time during the periods covered
thereby to reflect variables and events not reasonably within the control of
Manager. All such updates and revisions of the Capital Renewals Budget and the
Operating Budgets (to the extent any such changes in the Operating Budgets
indicate shortfalls which would necessitate a need for additional working
capital to be provided by Lessee) shall be submitted, together with reasonable
explanations of the reasons for such charges, to Lessee for its approval. Lessee
agrees that it shall promptly reply to any such submissions giving its approval
or stating the grounds on which it is withholding its approval.

         12.03    Indemnities.

                  12.03.1 Indemnification to Manager. Lessee shall indemnify and
hold Manager harmless from and against any and all actions, suits, claims,
penalties, losses, damages and expenses, including reasonable attorneys' fees,
based upon or arising out of Manager's performance of its services hereunder, or
out of any occurrence or event happening in or about the Hotel or occurring in
connection with the operation or development thereof, including any alleged
breach, or investigation relating to a possible breach, of any Legal Requirement
(collectively "Claims"), except to the extent such Claims are based upon
Manager's gross negligence, willful misconduct, breach of contract or failure to
act in good faith. and except to the extent such Claims are based upon Manager's
employment practices.

                  12.03.2 Indemnification To Lessee. Manager shall indemnify and
hold Lessee harmless from and against any and all Claims which Lessee may
suffer, sustain or incur arising from, or based upon Manager's gross negligence,
willful misconduct, breach of contract or failure to act in good faith.

                  12.03.3  Intentionally Deleted.

                  12.03.4 Indemnified Parties. The indemnities contained in this
Section 12.03 shall run to the benefit of both Manager and Lessee and their
respective Affiliates and the directors, partners, members, managers, officers
and employees of Manager and Lessee and their respective Affiliates.

                  12.03.5   Intentionally Deleted.

                  12.03.6 Survival. The provisions of Section 12.03 shall
survive any cancellation, termination or expiration of this Agreement and shall
remain in full force and effect until such time as the applicable statute of
limitation shall cut off all demands, claims, actions, damages, losses,
liabilities or expenses which are the subject of the provisions of this Section
12.03.

<PAGE>

         12.04   Arbitration of Financial Matters.

                  12.04.01 Matters to be Submitted to Arbitration. In the case
of a dispute with respect to any of the following matters, either party may
submit such matter to arbitration which shall be conducted by the Accountants
(as hereinafter defined in Subsection 12.04.2):

                           (a) computation of the Management Fee;

                           (b) reimbursements due to Manager under the
provisions of Section 4.07;

                           (c) any adjustment in dollar amounts of insurance
coverages required to be maintained; and

                           (d) any dispute concerning the approval of a
Operating Budgets or a Capital Budget.

                  12.04.2 The Accountants. The "Accountants" shall be one of the
"Big Four" firms of certified public accountants of recognized national
standing, i.e., PricewaterhouseCoopers, Ernst & Young, KPMG Peat Marwick, and
Deloitte and Touche (or the successors thereto) notwithstanding any existing
relationships which may exist between Lessee and such accounting firms or
Manager and such accounting firms. The party desiring to submit any matter to
arbitration under Subsection 12.04.1 shall do so by written notice to the other
party, which notice shall set forth the items to be arbitrated and such party's
choice of one of the four (4) accounting firms. The party receiving such notice
shall within fifteen (15) days after receipt of such notice either approve such
choice, or designate one of the remaining firms by written notice back to the
first party, and the first party shall within fifteen (15) days after receipt of
such notice either approve such choice or disapprove the same, and the same
procedure shall be followed until the parties approve one of such firms or there
is only one remaining firm not designated by either party. If both parties shall
have approved one of the firms under the preceding sentence, then such firm
shall be the "Accountants" for the purposes of arbitrating the dispute; if the
parties are unable to agree on an accounting firm, then the remaining firm,
which was not designated by either party, shall be the "Accountants" for such
purpose. The Accountants shall be required to render a decision in accordance
with the procedures described in Subsection 12.04.3 within fifteen (15) days
after being notified of their selection. The fees and expenses of the
Accountants will be paid by the non-prevailing party.

                  12.04.3 Procedures. In all arbitration proceedings submitted
to the Accountants, the Accountants shall be required to agree upon and approve
the substantive position advocated by Lessee or Manager with respect to each
disputed item. Any decision rendered by the Accountants that does not reflect
the position advocated by Lessee or Manager shall be beyond the scope of
authority granted to the Accountants and, consequently, may be overturned by
either party. All proceedings by the Accountants shall be conducted in
accordance with the Uniform Arbitration Act, except to the extent the provisions
of such act are modified by this Agreement or the mutual agreement of the
parties. Unless otherwise agreed, all arbitration proceedings shall be conducted
at the Hotel.

<PAGE>

         12.05 Attorneys' Fees. In the event of any litigation arising out of
this Agreement, the prevailing party shall be entitled to reasonable costs and
expenses, including without limitation, reasonable attorneys' fees.

          12.06   Intentionally Omitted.

         12.07 No Restriction. Lessee agrees that Manager has and shall retain
the right to own, have an ownership interest in, develop, operate, manage,
license, franchise, sell or rent other hotels or inns of any kind, or shared
ownership projects commonly known as vacation ownership or time-share ownership
projects (or similar real estate projects), under the "Manager" or other name
and wherever located except on the Land under this Agreement, and nothing
contained in this Agreement shall prohibit or limit Manager from engaging in any
such activities, which shall not give rise to any liability for claims relating
to unfair competition and/or breach of the implied covenant of good faith and
fair dealing; provided that Manager shall not own, have an interest in develop,
operate, manage, license, or rent a hotel within the geographic radius of the
Competitive Set of the Hotel as listed in the Smith Travel Research Report as of
the date of this Agreement, except as is provided in the Right of First Refusal
in the Purchase and Sale Agreement for this Property or with Lessee's written
consent.

         12.08    Major Capital Improvements.

         12.08.1 Major Capital Improvements. Any program of capital
improvements, involving an addition to the Hotel, or designed to substantially
upgrade or change the nature or image of the Hotel (as opposed to a renovation
or refurbishing which takes place as part of the normal or cyclical upkeep of
the Hotel), shall be deemed to be a "Major Capital Improvement." Major Capital
Improvements will be undertaken only at the request of Lessee, whether on its
own initiative or at the suggestion of Manager, and in any event shall not be
included in the Capital Renewals Budgets.

                   12.08.2 Development. The development of any Major Capital
Improvement shall be the responsibility of Lessee and shall be paid for out of
separate funds of Lessee.

                   12.08.3 Prohibition on Casinos. In no event shall a casino be
added to the Premises or built as a separate structure on any portion of the
Land; nor shall any casino or gaming operations be conducted on the Premises.

         12.09 Force Majeure. If act of God, acts of war, acts of terrorism,
civil disturbance, labor strikes, governmental action, including the revocation
of any material license or permit necessary for the operation contemplated in
this Agreement where such revocation is not due to Manager's fault, or any other
causes beyond the control of Manager shall, in Manager's reasonable opinion,
have a significant adverse effect upon the operations of the Hotel, then Manager
shall be entitled to terminate this Agreement upon sixty (60) days' written
notice from the date of such event; provided, however, such termination shall
not be effective if the event giving rise to the termination has been cured to
the reasonable satisfaction of Manager within such sixty (60) day period.

          12.10 Notices. Except as otherwise provided in this Agreement, all
notices, demands, requests, consents, approvals and other communications (herein
collectively called "Notices") required or permitted to be given hereunder, or
which are to be given with respect to this Agreement, shall be in writing sent
by registered or certified mail, postage prepaid, return receipt requested,
addressed to the party to be so notified as follows:

<PAGE>

         If to Lessee:
                           ------------------------
                           7700 Wolf River Boulevard
                           Germantown, TN 38138
                           Attn: Richard Mitchell
                           Phone: (901) 754-7774
                           Fax: (901) 754-2374

         If to Manager:

                           McKibbon Hotel Management, Inc.
                           402 Washington Street, NE
                           Suite 200
                           Gainesville, GA
                           Attn:  Vann Herring
                           Phone: 770-534-3381 x202
                           Fax: 770-532-3995

Any Notice shall be deemed delivered upon receipt. Either party may at any time
change the addresses for Notices to such party by mailing a Notice as aforesaid.
Notices may also be delivered by (i) hand, (ii) special courier, or (iii)
telegram, telex or other electronic written communication, provided that in
utilizing any form of delivery authorized by clause (iii) of this sentence,
receipt of such notice must be acknowledged by the addressee through appropriate
written communication.

         12.11 No Lease, Partnership or Joint Venture. Nothing contained in this
Agreement shall be construed to be or create a lease, partnership or joint
venture between Lessee, its successors or assigns, on the one part, and Manager,
its successors and assigns, on the other part. Manager is an independent
contractor of the Lessee.

         12.12 Modification and Changes. This Agreement cannot be changed or
modified except by another agreement in writing signed by the party sought to be
charged therewith, or by its duly authorized agent.

         12.13 Understandings and Agreements. This Agreement constitutes all of
the understandings and agreements of whatsoever nature or kind existing between
the parties with respect to Manager's management of the Hotel. The parties each
hereby acknowledge, represent and agree that in entering into this Agreement,
they are not relying upon any statement, representation or promise, or the
failure to make any statement, representation or promise, of any other party (or
of any officer, agent, employee, representative or attorney for any other
party), in executing this Agreement except as expressly stated herein.

         12.14 Headings. The Article, Section and Subsection headings contained
herein are for convenience and reference only and are not intended to define,
limit or describe the scope or intent of any provision of this Agreement.

<PAGE>

         12.15 Consents. Except as specifically otherwise provided in this
Agreement, each party agrees that it will not unreasonably withhold any consent
or approval requested by the other party pursuant to the terms of the Agreement,
and that any such consent or approval shall not be unreasonably delayed or
qualified. Similarly, each party agrees that any provision of this Agreement
which permits such party to make requests of the other party, shall not be
construed to permit the making of unreasonable requests.

         12.16 Survival of Covenants. Any covenant, term or provision of this
Agreement which, in order to be effective, must survive the termination of this
Agreement, shall survive any such termination.

         12.17 Third Parties. None of the obligations hereunder of either party
shall run to or be enforceable by any party other than the party to this
Agreement or by a party deriving rights hereunder as a result of an assignment
permitted pursuant to the terms hereof.

         12.18 Waivers. No failure by Manager or Lessee to insist upon the
strict performances of any covenant, agreement, term or condition of this
Agreement, or to exercise any right or remedy consequent upon the breach
thereof, shall constitute a waiver of any such breach or any subsequent breach
of such covenant, agreement, term or condition. No covenant, agreement, term or
condition of this Agreement and no breach thereof shall be waived, altered or
modified except by written instrument. No waiver of any breach shall affect or
alter this Agreement, but each and every covenant, agreement, term and condition
of this Agreement shall continue in full force and effect with respect to any
other then existing or subsequent breach thereof.

         12.19 Partial Invalidity. Any provision of this Agreement prohibited by
law or by court decree in any locality or state shall be ineffective to the
extent of such prohibition without in any way invalidating or affecting the
remaining provisions of this Agreement, or without invalidating or affecting the
provisions of this Agreement within the states or localities where not
prohibited or otherwise invalidated by law or by court decree. Further, in the
event that any provision of this Agreement shall be held unenforceable by virtue
of its scope, but may be made enforceable by a limitation thereof, such
provision shall be deemed to be amended to the minimum extent necessary to
render it enforceable under the laws of the jurisdiction in which enforcement is
sought.

12.20    Applicable Law. This Agreement shall be construed and be governed by
the laws of the State in which the Premises are located.

12.21 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

12.22 Subordination. This Agreement shall be subordinate to any mortgage
encumbering the Hotel, and Manager agrees to enter into a lender-manager
agreement with respect to the Hotel, which agreement shall contain reasonable
lender-manager provisions, including, without limitation, Manager's
acknowledgement that its real estate interest in and to the Hotel, if any,
created by this Agreement is subordinate to any mortgage encumbering such Hotel,

<PAGE>

including providing any purchaser of such Hotel at a foreclosure sale or
deed-in-lieu of foreclosure (including the lender) with the right to terminate
this Agreement with respect to such Hotel; provided, however, in no event will
Manager agree to subordinate or waive its right to receive fees, reimbursements
or indemnification payments under this Agreement arising prior to termination
(but (a) if this Agreement is terminated by the lender or such purchaser with
respect to such Hotel, Manager shall not look to the lender for payment of such
fees, reimbursements or indemnification payments and Manager's right to receive
such fees, reimbursements or indemnification payments shall be subordinated to
the lender's rights and (b) if this Agreement is not terminated by the lender or
such purchaser with respect to such Hotel, then such fees, reimbursements or
indemnification payments shall be payable by the lender or such purchaser).

12.23 Compliance with License Agreement. During the Term of this Agreement and
so long as the Hotel is licensed as a Marriott International, Inc. ("Marriott")
product, the following provisions shall apply to such Hotel:

        A.        Subject to the provisions of this Agreement, Lessee and
                  Manager acknowledge and agree that the Manager shall have the
                  authority for the day-to-day management of the Hotel;

        B.        Subject to the provision by Lessee of sufficient funds to so
                  comply, the Manager will operate the Hotel during the Term of
                  this Agreement in strict compliance with the Marriott License
                  Agreement (specifically including, but not limited to,
                  Licensee's obligation to pay any and all fees, charges and
                  contributions set forth in the License Agreement) and Manager
                  shall keep the License Agreement in full force and effect
                  throughout the term of this Agreement;

        C.        Except in extraordinary circumstances, such as theft or fraud
                  on the part of the Manager or default by Lessee under the
                  License Agreement caused by the Manager for which the Lessee
                  needs to promptly remove the Manager from the Hotel, this
                  Agreement shall not be terminated by Lessee without at least
                  thirty (30) days' prior written notice to Marriott;

        D.        If there are conflicts between any provision(s) of this
                  Agreement and the License Agreement, the provision(s) of the
                  License Agreement shall control; and

        E         Manager and Lessee acknowledge that the License Agreement
                  permits Marriott to communicate directly with the Manager
                  regarding day-to-day operation of the Hotel.

         Nothing in this Agreement shall be interpreted in a manner which would
either (i) relieve Lessee of any of its obligations under the License Agreement
or (ii) prevent Lessee from validly contesting provisions of the License
Agreement.

         12.24 Closing Contingency. This Agreement will only become effective
upon the successful closing of the purchase and sale of the Hotel from an
affiliate of Manager to an affiliate of Lessee.

<PAGE>

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

                                   LESSEE:

                                   ------------------------------------

                                   By__________________________________

                                   MANAGER:

                                   MCKIBBON HOTEL MANAGEMENT, INC.,
                                   a Georgia corporation

                                   By:
                                             -----------------------------------
                                   Name:
                                             -----------------------------------
                                   Title:
                                             -----------------------------------

<PAGE>

                              MANAGEMENT FEE RIDER

                  A. Gross Operating Revenues. The term Gross Operating Revenues
as used in this Agreement shall mean all receipts, revenues, income and proceeds
of sales of every kind received by Manager directly or indirectly from the
operation of the Hotel. Gross Operating Revenues shall exclude all sales and
excise taxes and any similar taxes collected as direct taxes payable to taxing
authorities; gratuities or service charges collected for payment to and paid to
employees; credit or refunds to guests; proceeds of insurance, save and except
for proceeds of insurance with respect to use and occupancy or business
interruption insurance; proceeds of sales of real estate and/or furniture,
fixtures and equipment; proceeds of refinancings; and proceeds of condemnation.

                   B. Net Operating Income. The term "Net Operating Income" as
used in this agreement shall mean the excess, during each Calendar Year (and
proportionally for any period less than a Calendar Year), of Gross Operating
Revenues over expenses and deductions incurred in the operation of the Hotel by
Manager in fulfilling its duties hereunder during such period determined in
accordance with the accounting system established by the Uniform System (except
as modified by this Agreement). In arriving at Net Operating Income, all
expenses shall be proper deductions from Gross Operating Revenues insofar as
they relate to the operation of the Hotel, including, without limit, all Base
Management Fees, license fees, franchisor royalties, real estate and special
assessment taxes, property and liability insurance, a reserve of four percent
(4%) of Gross Operating Revenue for capital improvements (whether or not such
reserve is held in escrow) and fees and direct out-of-pocket charges of Manager
or its affiliates as well as corporate charges (as described below).

In accordance with Manager's past practices, out-of-pocket costs and corporate
charges may include, but are not limited to ravel costs for corporate staff
traveling specifically on behalf of or for the benefit of the Hotel;

                  C. RevPar Index. The term "RevPar Index" as used in this
Agreement shall mean the Competitive Set RevPar Index as reported by Smith
Travel Research. The Competitive Set included in the STR reports shall be the
Competitive Set in existence at the time this Agreement is executed and shall be
attached hereto as Exhibit "A" to Management Fee Rider and may not be changed
except by the mutual agreement of the Lessee and the Manager. The RevPar Index
used in the calculation of the Additional Incentive Fee shall be the year to
date RevPar Index for the latest STR Report in existence when final year-end
financial statements are delivered to Lessee.

                  D. Base Management Fee. During each Calendar Year after the
Management Commencement Date (and for a fraction of any partial Calendar Year),
in consideration of the services Manager is to render under this Agreement,
Manager will be paid a fee ("Base Management Fee") at the rate of three percent
(3.0%) of Gross Operating Revenues of the Hotel per Calendar Year:

         The Base Management Fee will be paid in installments by deducting such
fee from Gross Operating Revenues of the Hotel immediately following each
Accounting Period at the rate of the corresponding percentage of Gross Operating

<PAGE>

Revenues for that Accounting Period. At the end of each Accounting Period, an
adjustment will be made on a cumulative year-to-date basis, if necessary, and
all sums due either the Manager or Lessee shall be paid immediately.

                  E. Incentive Fees. In addition to the Base Management Fee,
during each Calendar Year after the Management Commencement Date (and for any
partial Calendar Year) in which Manager is to render services under this
Agreement, Manager will be paid an incentive fee as follows:

                  For any Calendar Year in which the Net Operating Income of the
                  Hotel is greater or equal to Target NOI, Manager shall be paid
                  an Incentive Fee equal to 1% of Gross Operating Revenues.

                  If payment of the Incentive Fee, when subtracted from the Net
                  Operating Income of the Hotel results in an amount less than
                  the Target NOI amount, the Incentive Fee will be adjusted so
                  that the net result of subtracting the Incentive Fee from the
                  Hotel's Net Operating Income for the Calendar year is not an
                  amount less than the Target NOI. In no event will the
                  Incentive Fee exceed 1% of Gross Revenue.

                  F. Additional Incentive Fees. In addition to the Base
Management Fee and the Incentive fee, during each Calendar Year after the
Management Commencement Date (and for any partial Calendar Year) in which
Manager is to render services under this Agreement, Manager will be paid an
Additional Incentive Fee as follows:

                  For any Calendar Year in which the Net Operating Income of the
                  Hotel, after payment of the Incentive Fee exceeds the Target
                  NOI, Manager shall be paid an Additional Incentive Fee as
                  follows:

                  Managers shall receive a portion of excess dollars above the
                  Target NOI after payment of the Incentive Fee up to 1% of
                  Gross Revenue. The Manager's portion of the excess dollars
                  shall be paid as follows:

Fee Schedule:

<PAGE>

                  G. The Incentive Fee and the Additional Incentive Fee will be
payable to Manager from Gross Operating Revenues of the Hotel on a quarterly
basis with a final reconciliation following the end of each Calendar Year. The
Manager will submit to the Lessee the calculation of the Incentive Fee and the
Additional Incentive Fee quarterly along with the delivery of the year-end
financial statements pursuant to Section 7.04 of the Management Agreement, after
which the Lessee shall have ten (10) calendar days to advise the Manager of any
disagreement with such calculation quarterly and annually. Following the
Calendar Year-end audit conducted by Lessee or Lessee's representatives, an
adjustment will be made if necessary, and all sums due either Manager or Lessee
shall be paid immediately.

                  H. Accounting Fee. In addition to the Base Management Fee and
the Incentive Fee, the Manager shall be paid a fee for centralized accounting
services (the "Accounting Fee") equal to the amount charged by Manager monthly
for all Manager's managed hotels based on the type of hotel managed per
Accounting Period during the Term of this Agreement and for one (1) Accounting
Period after the applicable termination of this Agreement with respect to the
Hotel. The Accounting Fee shall be set annually and is intended to be a
break-even fee for the accounting department. Such centralized accounting
services consist of the processing of daily accounting transactions necessary
for the preparation of the monthly financial statements, including general
ledger, accounts payable, payroll (in conjunction with the payroll processing
firm) and banking. In addition, the following expenses are included in the
annual accounting fee

            a.    express mail and regular postage for items sent specifically
                  to or on behalf of the Hotel, which would include accounts
                  payable checks, weekly invoices and accounting information to
                  and from the Hotel, payroll checks, payroll reports and other
                  documents necessary for the efficient operation of the Hotel;

            b.    telephone and fax costs specifically for the Hotel; and

            c.    costs of photocopying specifically for the Hotel.

However, Lessee is responsible for all payroll processing firm fees associated
with processing the hotel's payroll as well as any banking service charges for
operating and maintaining the bank account or accounts for the hotel.

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