Document:

exv10w23

 

EXHIBIT 10.23

REMINGTON OIL AND GAS CORPORATION

EMPLOYEE SEVERANCE PLAN

 

 

I.

DEFINITIONS AND CONSTRUCTION

      1.1 Definitions. Where the following words and phrases appear in the Plan, they shall
have the respective meanings set forth below, unless their context clearly indicates to the
contrary.

      (a) “Base Salary” shall mean the annual rate of base compensation paid by the Company
to a Covered Employee (including amounts which the Covered Employee could have received in
cash had he not elected to contribute to an employee benefit plan maintained by the
Company), excluding overtime pay, bonuses, employee benefits, automobile allowances, added
premiums, differentials, and all forms of incentive compensation. Base Salary shall be
determined effective as of the date of the Covered Employee’s termination. A “Month’s Base
Pay” shall mean Base Salary divided by twelve.

      (b) “Change of Control” shall be deemed to have occurred upon any of the following
events:

      (1) A merger or consolidation to which the Company is a part if the individuals
and entities who were stockholders of the Company immediately prior to the effective
date of such a merger or consolidation have beneficial ownership (as defined in Rule
13d-3 under the Exchange Act) of less than 50% of the total combined voting power
for election of directors of the surviving corporation following the effective date
of such merger or consolidation;

      (2) The acquisition or holding of direct or indirect beneficial ownership (as
defined under Rule 13d-3 of the Exchange Act) of securities of the Company
representing the aggregate 30% or more of the total combined voting power of the
Company’s then issued and outstanding voting securities by any person, entity or
group of associated persons or entities acting in concert, other than an employee
benefit plan of the Company or of any subsidiary of the Company, or any entity
holding such securities for or pursuant to the terms of any such plan. The
Directors may, by a majority vote, determine the acquisition of 30%-49.9% is not a
hostile action and therefore does not trigger a change of control.

      (3) The sale of all or substantially all of the assets of the Company to any
person or entity that is not a wholly owned subsidiary of the Company; or

      (4) The approval by the stockholders of the Company of any plan or proposal for
the liquidation of the Company or its material subsidiaries, other than into the
Company.

      (c) “Code” means the Internal Revenue Code of 1986 as amended.

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      (d) “Committee” shall mean the committee appointed by the Company to administer the
Plan.

      (e) “Covered Employee” shall mean any individual who is a regular full-time employee of
the Company on the Effective Date of the Plan, or any individual employed as a regular
full-time employee of the Company after the Effective Date of the Plan who has completed six
months of service. “Covered Employee” shall not include the Chief Executive Officer, the
Chief Operating Officer or any other employee who is eligible for severance under any other
contract or arrangement with the Company.

      (f) “Effective Date” shall mean January 1, 2005.

      (g) “Company” shall mean Remington Oil and Gas Corporation.

      (h) “Directors” shall mean the Board of Directors of the Company.

      (i) “Disability” shall mean as to exempt and non-exempt employees a condition entitling
the Covered Employee to benefits under the Company’s short-term or long-term disability plan
and as to officers and selected exempt employees shall mean a physical or mental infirmity
which impairs the Covered Employee’s ability to substantially perform the Covered Employee’s
duties, which continues for a period of at least one hundred eighty (180) continuous days.

      (j) “Good Reason” shall mean the occurrence after a Change in Control of any of the
following events or conditions: (1) a reduction in the Covered Employee’s combined Base
Salary and bonus opportunity of more than 10%, (2) a material reduction in benefits without
substitution of benefits that are substantially comparable in the aggregate, or (3) the
permanent relocation of a Covered Employee’s principal place of employment with the Company
to a location that is more than 40 miles from such Covered Employee’s prior principal place
of employment.

      (k) “Involuntary Termination” shall mean any termination, on or after the Effective
Date, of a Covered Employee’s employment with the Company which does not result from a
voluntary resignation or retirement by the Covered Employee; provided, however, the term
“Involuntary Termination” shall not include:

      (1) a Termination for Cause;

      (2) a termination as a result of the Covered Employee’s death;

      (3) any termination as the result of the Covered
Employee’s Disability;

      (4) a termination by the Covered Employee for Good Reason; or

      (5) any termination which the Company expects to be of short duration and
pursuant to which the Covered Employee is subject to reemployment with the Company
within a reasonable period of time (as determined by the Committee).

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      (l) “Plan” shall mean the Remington Oil and Gas Corporation Employee Severance Plan.

      (m) “Termination for Cause” shall mean any termination of a Covered Employee’s
employment with the Company by reason of the Covered Employee’s (1) conviction of any felony
or of a misdemeanor involving moral turpitude, (2) material failure to perform his duties or
responsibilities in a manner satisfactory to the Company, (3) engagement in conduct which is
injurious (monetarily or otherwise) to the Company or any of its affiliates (including,
without limitation, misuse of the Company’s or an affiliate’s funds or other property), (4)
engagement in business activities which are in conflict with the business interests of the
Company, (5) insubordination, (6) engagement in conduct which is in violation of the
Company’s safety rules or standards or which otherwise causes injury to another employee or
any other person, (7) engagement in conduct which is in violation of any policy or work rule
of the Company or (8) engagement in conduct which is in violation of the Company’s
guidelines for appropriate employee conduct or which is otherwise inappropriate in the
office or work environment. Termination for Cause shall be determined in the sole
good-faith discretion of the Committee.

      (n) “Year of Service” shall mean, with respect to a particular Covered Employee, each
full year of such Covered Employee’s continuous employment by the Company from his most
recent date of hire to the date his employment is subject to an Involuntary Termination.

      1.2 Number and Gender. Wherever appropriate herein, word used in the singular shall
be considered to include the plural and the plural to include the singular. The masculine gender,
where appearing in this Plan, shall be deemed to include the feminine gender.

      1.3 Headings. The headings of Articles and Sections herein are included solely for
convenience and if there is any conflict between such headings and the text of the Plan, the text
shall control.

II.

SEVERANCE BENEFITS 

      2.1 Severance Benefits. Subject to the provisions of Section 2.2 hereof, if a Covered
Employee’s employment by the Company is terminated and such Covered Employee is not entitled to
severance benefits under an individual contract, agreement or arrangement, or if such Covered
Employee waives his rights to any severance benefits to which he may be entitled under an
individual contract, agreement or arrangement, then the Covered Employee shall be entitled to
severance benefits as provided in this Section 2.1. A Covered Employee’s entitlement to severance
benefits under the Plan depends upon the Covered Employee’s employment classification and the
circumstance of the Covered Employee’s termination of employment. Upon termination of the Covered
Employee’s employment, the Covered Employee shall be entitled to the severance benefits as follows:

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      (A) Officers and Selected Exempt Employees. With respect to a particular Covered Employee who
is classified by the Company as an officer or is classified by the Company as an exempt employee
and is selected by the Committee for purposes of the Plan, the Covered Employee will be entitled to
severance benefits as follows:

         (1) If the Covered Employee’s employment with the Company is terminated by reason of the
Covered Employee’s death or Disability, the Company shall pay the Covered Employee or the Covered
Employee’s beneficiaries the Covered Employee’s accrued Base Salary through the termination date
and, in addition thereto, an amount equal to the Covered Employee’s target bonus multiplied by a
fraction, the numerator of which is the number of days in such plan year through termination date
and the denominator of which is 365.

         (2) If the Covered Employee’s employment with the Company is subject to an Involuntary
Termination not in connection with a Change of Control, the Covered Employee shall be entitled to
the following: (a) the Company shall pay the Covered Employee a lump sum cash payment, as soon as administratively feasible after the
Covered Employee’s termination, an amount equal to 1 times the sum of (i) the Covered Employee’s
then current Base Salary and (ii) the Covered Employee’s average annual incentive bonus paid during
the last three years, (b) all stock options, restricted stock and other equity compensation awards
granted the Covered Employee shall be subject to the terms of the grant agreement, other signed
agreements and plan under which they were granted (c) for a term of one (1) year following the
termination date, or until the Covered Employee gains new employment with substantially similar
benefits, the Company, at its expense, shall provide the Covered Employee and his or her immediate
family the same level of group medical and dental benefits as provided to active employees, (d) the
Company shall provide the Covered Employee twelve (12) months of out placement services at the
Company’s sole expense, and (e) all non-qualified deferred compensation benefits of the Covered
Employee shall be immediately vested and subject to an immediate distribution; provided, however,
that if the Covered Employee is a key employee (as defined in section 416(i) or the Code without
regard to paragraph (5) thereof) of the Company and the Company’s stock is publicly traded on an
established securities market or otherwise, then any amounts described above which are “deferred
compensation” under section 409A of the Code shall not be paid or commence until the date that is
six (6) months after the termination date. The provision of group medical and dental benefits shall
start and run concurrently with any continuation coverage as may be elected by the Covered Employee
under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”).

         (3) If the Covered Employee’s employment with Company is subject to an Involuntary
Termination within two (2) years following a Change of Control, or if the Covered Employee
terminates his employment with the Company for Good Reason within two (2) years following a Change
of Control: (a) the Company shall pay the Covered Employee a lump sum cash payment, as soon as administratively feasible after the Covered
Employee’s termination, an amount equal to 2 times the sum of (i) the Covered Employee’s then
current Base Salary and (ii) the Covered Employee’s maximum annual incentive opportunity, (b) all
stock options, restricted stock and other equity compensation awards granted the Covered Employee
shall be subject to the terms of the grant agreement and plan under which they were granted (c) for
a term of two (2) years following the termination date, or until the Covered Employee gains new
employment with substantially similar benefits,

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the Company, at its expense, shall provide the Covered Employee and his or her immediate family the
same level of group medical and dental benefits as provided to active employees (d) the Company
shall provide the Covered Employee twelve (12) months of out placement services at the Company’s
sole expense, and (e) all non-qualified deferred compensation benefits of the Covered Employee
shall be immediately vested and subject to an immediate distribution; provided, however, that if
the Covered Employee is a key employee (as defined in section 416(i) or the Code without regard to
paragraph (5) thereof) of the Company and the Company’s stock is publicly traded on an established
securities market or otherwise, then any amounts described above which are “deferred compensation”
under section 409A of the Code shall not be paid or commence until the date that is six (6) months
after the termination date. The provision of group medical and dental benefits shall start and run
concurrently with any continuation coverage as may be elected by the Covered Employee under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”).

      (B) Exempt and Non-Exempt Employees. With respect to a particular Covered Employee who is
classified by the Company as an exempt or non-exempt employee, but is not covered by Section 2.1(A)
above, the Covered Employee will be entitled to severance benefits as follows:

         (1) If the Covered Employee’s employment with the Company is terminated by reason of the
Covered Employee’s death or Disability, the Company shall pay the Covered Employee’s accrued Base
Salary through the termination date, and in addition thereto, an amount equal to the Covered
Employee’s target bonus multiplied by a fraction, the numerator of which is the number of days in
such plan year through termination date and the denominator of which is 365.

         (2) If the Covered Employee’s employment with the Company is subject to an Involuntary
Termination or, if within one (1) year following a Change of Control the Covered Employee
terminates his employment with Good Reason, the Covered Employee shall be entitled to the
following: (a) the Company shall pay the Covered Employee a lump sum cash payment, as soon as
administratively feasible after the Covered Employee’s termination, an amount equal to the greater
of (1) 6 Months’ Base Pay or (2) 1 Month’s Base Pay for each of such Covered Employee’s Years of
Service up to a maximum of 9 Month’s Base Pay, (b) all stock options, restricted stock and other
equity compensation awards granted the Covered Employee shall be subject to the terms of the grant
agreement and plan under which they were granted and (c) for a term of six months, or if greater
for a term equal to the number of months for each Covered Employee’s Years of Service up to a
maximum of 9 months, following the termination date, or until the Covered Employee gains new
employment with substantially similar benefits, the Company, at its expense, shall provide the
Covered Employee and his or her immediate family the same level of group medical and dental
benefits as provided to active employees. Notwithstanding the foregoing, if the Covered Employee
is a key employee (as defined in Section 416(i) of the Code without regard to paragraph (5)
thereof) of the Company, and the Company’s Stock is publicly traded on an established securities
market or otherwise, then any amounts described above which are “deferred compensation” shall not
be paid or commence until the date that is six (6) months after the termination date. The
provision of group medical and dental benefits shall start and run concurrently with any
continuation coverage as

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may be elected by the Covered Employee under the Consolidated Omnibus Budget Reconciliation Act of
1985, as amended (“COBRA”).

      2.2 Other Severance Arrangements. Severance payments provided herein shall be subject
to any required tax withholding. If a Covered Employee is entitled to severance benefits under an
individual contract, agreement or arrangement and does not waive such entitlement to severance
benefits under such contract, agreement or arrangement, such Covered Employee shall not be entitled
to any severance benefits pursuant to the Plan but shall instead be entitled to severance benefits
in such amount and form as are provided pursuant to the terms of such contract, agreement or
arrangement (which contract, agreement or arrangement is hereby incorporated by reference and made
a part of this Plan).

      2.3 Release and Full Settlement. As a condition to the receipt of any severance
benefits hereunder, the Company, in its sole discretion, may require a Covered Employee whose
employment by the Company has been subject to an Involuntary Termination to first execute a
release, in the form established by the Company, releasing the Company, its shareholders, partners,
officers, directors, employees, attorneys and agents from any and all claims and from any and all
causes of action of any kind or character, including but not limited to all claims or causes of
action arising out of such Covered Employee’s employment with the Company or the termination of
such employment, and the performance of the Company’s obligations hereunder and the receipt of the
benefits provided hereunder by such Covered Employee shall constitute full settlement of all such
claims and causes of action.

      2.4 Excise Tax Payments. In the event that any payment, award, benefit or
distribution (or any acceleration of any payment, award, benefit or distribution) made or provided
to or for the benefit of a Covered Employee in connection with this Agreement, or Covered
Employee’s employment with Company or the termination thereof (the “Payments”) are determined to be
subject to the excise tax imposed by Sections 409A or 4999 of the Code or any interest or penalties
with respect to such excise taxes (such excise taxes, together with any such interest and
penalties, are collectively referred to as the “Excise Tax”), then the Employee shall be entitled
to receive an additional payment (a “Gross-Up Payment”) from Company such that the net amount
received by the Employee after paying any applicable Excise Tax and any federal, state or local
income or FICA taxes on such Gross-Up Payment, shall be equal to the amount the Employee would have
received if such Excise Tax were not applicable to the Payments. All determinations of the Excise
Tax and Gross-Up Payment, if any, shall be made by tax counsel acceptable to the Employee. For
purposes of determining the amount of the Gross-Up Payment, if any, the Employee shall be deemed to
pay federal income tax at the highest marginal rate of federal income taxation in the calendar year
in which the total Payments are made and State and local income taxes at the highest marginal rate
of taxation in the State and locality of the Employee’s residence on the date the total Payments
are made, net of the maximum reduction in federal income taxes which could be obtained from
deduction of such State and local taxes. In the event that the Excise Tax is determined by the
IRS, on audit or otherwise, to exceed the amount taken into account hereunder in calculating the
Gross-Up Payment (including by reason of any payment the existence or amount of which cannot be
determined at the time of the Gross-Up Payment), the Company shall make another Gross-Up Payment in
respect of such excess (plus any interest, penalties or additions payable by the Employee with
respect to such excess) within the ten (10) business days immediately following

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the date that the amount of such excess is finally determined. The Employee and the Company
shall each reasonably cooperate with the other in connection with any administrative or judicial
proceedings concerning the existence or amount of liability for Excise Tax with respect to the
total Payments. The Gross-Up Payments provided to the Employee shall be made not later than the
tenth (10th) business day following the last date the Payments are made.

      2.5 Confidential Information. In consideration of the receipt of severance benefits,
hereunder, each Covered Employee who is classified by the Company as an officer or is classified by
the Company as an exempt employee and is selected by the Committee for purposes of the Plan, will
not, without the prior written consent of the Company, for a period of three (3) years following
the Covered Employee’s termination date, except as may be required by any competent legal
authority, use or disclose to any person, firm or other legal authority, any confidential record,
secret or information related to the Company or any of its subsidiaries.

      2.6 Covenant Against Competition. In consideration of receipt of any severance
benefits hereunder, each Covered Employee who is classified by the Company as an officer or is
classified by the Company as an exempt employee and is selected by the Committee for purposes of
the Plan, for a period of one (1) year following the Covered Employee’s termination date where
termination occurred without a Change of Control, the Covered Employee shall not have any interest
in or be engaged by any business or enterprise that is in the business of exploring for,
developing, or producing hydrocarbons in specific areas where the Company has interest at the time
of the Covered Employee’s termination. Company interest shall be deemed an area within a two (2)
mile radius from the current owned acreage, offshore block, concession, or active prospect area.
For purposes of this Section, the Covered Employee shall be deemed to have an “interest in or be
engaged by a business or enterprise” if the Covered Employee acts (a) individually, (b) as a
partner, officer, director, shareholder, employee, associate, agent or owner of an entity, or (c)
as an advisor, consultant, leader or other person related directly or indirectly, to any business
or entity that is engaging in, or is planning to engage in, exploring for, developing, or producing
hydrocarbon in specific areas where the Company has interests (“the Prohibited Activity”).
Ownership of less than five percent (5%) of the outstanding capital stock of a publicly traded
entity that engages in any Prohibited Activity shall not be in violation of this Section.

      2.7 Non-Solicitation. In consideration of receipt of any severance benefits
hereunder, each Covered Employee who is classified by the Company as an officer or is classified by
the Company as an exempt employee and is selected by the Committee for purposes of the Plan, for a
period of one (1) year following the Covered Employee’s termination date, the Covered Employee will
not, directly or indirectly, in any manner or capacity induce any person to discontinue his or her
employment in the Company or the Company’s successor or to interfere with the business of the
Company or the Company’s successor.

      2.8 Liquidated Damages. If a Covered Employee who is classified by the Company as an
officer or is classified by the Company as an exempt employee and is selected by the Committee for
purposes of the Plan and who has received severance benefits pursuant to Section 2.1 above is found
by the Committee to be in violation of the confidentiality, non-competition, and/or
non-solicitation provisions as described in Sections 2.5, 2.6, and 2.7 above, then the Covered
Employee shall be required to repay to the Company as liquidated damages the full

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amount of severance received by the Covered Employee. Any payment required pursuant to this
Section shall be due and payable in a single lump sum within 30 days of written notice to such
Covered Employee of such Committee’s finding.

      2.9 Mitigation. A Covered Employee shall not be required to mitigate the amount of
any payment provided for in this Article II by seeking other employment or otherwise, nor shall the
amount of any payment provided for in this Article II be reduced by any compensation or benefit
earned by the Covered Employee as the result of employment by another employer or by retirement
benefits.

      2.10 Repayment Upon Reemployment. If a Covered Employee who has received severance
benefits pursuant to Section 2.1 above is reemployed by the Company other than on a temporary or
part-time basis or as an independent contractor, he shall be required to repay to the Company the
following amount:

      (a) The severance amount paid to him by the Company incident to his Involuntary
Termination; minus

      (b) The amount of Months’ Base Pay that he would have received from the Company between
the date of his Involuntary Termination and the date of his reemployment by the Company had
he remained employed by the Company during such period.

Any repayment required pursuant to this Section shall be made in a single lump sum within thirty
days of the Covered Employee’s reemployment with the Company; provided, however, that the Company,
in its sole discretion, may permit the Covered Employee to tender such repayment by payroll
deductions over such period of time as the Company may determine.

III.

ADMINISTRATION OF PLAN

      3.1 Plan Administration. For the purposes of the Plan and the Employee Retirement
Income Security Act of 1974, as amended, the plan administrator and named fiduciary of the Plan is
the Committee. The Committee shall hold such meetings and establish such rules and procedures as
may be necessary to enable it to discharge its duties hereunder. All actions of the Committee
shall be recorded by a secretary who need not be a Committee member. The Committee shall have all
powers necessary or proper to administer the Plan and to discharge its duties under the Plan,
including, but not limited to, the following powers:

      (a) To make and enforce such rules and regulations as it may deem necessary or proper
for the orderly and efficient administration of the Plan;

      (b) To interpret the Plan, its interpretation thereof in good faith to be final and
conclusive on all persons claiming benefits under the Plan;

      (c) To authorize the payment of benefits under the Plan;

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      (d) To prepare and distribute information explaining the Plan;

      (e) To appoint or employ persons to assist in the administration of the Plan; and

      (f) To obtain such information as is necessary for the proper administration of the Plan.

The Committee may allocate to others certain aspects of the management, operation and
responsibilities of the Plan, including the employment of advisors and the delegation of any
ministerial duties or functions to qualified individuals. The Company agrees to indemnify the
members of the Committee against all liabilities, damages, costs and expenses (including attorneys’
fees and amounts paid in settlement of any claims approved by the Company) occasioned by any act or
omission to act in connection with the Plan if such act or omission was in good faith.

      3.2 Claims Review. The Committee will advise each Covered Employee of any Plan
benefits to which the Covered Employee is entitled. If the Covered Employee believes that the
Committee has failed to advise him or her of any Plan benefits to which he or she is entitled, then
the Covered Employee may file a written claim with the Committee. The Committee shall review such
claim and respond thereto within a reasonable time after receiving the claim. In any case in which
a Covered Employee’s claim for Plan benefits is denied or modified, the Committee shall:

      (a) state the specific reason for the denial or modification;

      (b) provide specific reference to pertinent Plan provisions on which the denial or
modification is based;

      (c) provide a description of any additional material or information necessary for the
Covered Employee or his representative to perfect the claim and an explanation of why such
material or information is necessary; and

      (d) explain the Plan’s claim review procedure as contained herein.

In the event the request is denied or modified, if the Covered Employee or his representative
desires to have such denial or modification reviewed, he must, within sixty days following receipt
of the notice of such denial or modification, submit a written request for review by the Committee
of its initial decision. Within sixty days following such request for review the Committee shall
render its final decision in writing to the Covered Employee or his representative stating specific
reasons for such decision. If special circumstances require an extension of such sixty-day period,
the Committee’s decision shall be rendered as soon as possible, but not later than 120 days after
receipt of the request for review. If an extension of time for review is required, written notice
of the extension shall be furnished to the Covered Employee or representative prior to the
commencement of the extension period.

      3.3 Mandatory Arbitration. Any controversy or claim arising from or relating to a
claim for benefits payable by the Plan of a Covered Employee who is not satisfied with the

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decision of the Committee pursuant to the Plan’s claims review procedure, shall be settled by
arbitration administered by the American Arbitration Association under its Employee Benefit Plan
Claims Arbitration Rules, incorporated by reference herein.. The decision of the arbitrator shall
be final and binding and judgment on the award may be entered in any court having jurisdiction. In
reviewing the decision of the Committee, the arbitrator shall use the standard of review which
would be used by a Federal court in reviewing such decision under the provisions of the Employee
Retirement Income Security Act of 1974, as amended. The Covered Employee and the Company shall
share equally the cost of such arbitration.

IV.

GENERAL PROVISIONS

      4.1 Funding. The benefits provided herein shall be unfunded and shall be provided
from the Company’s general assets.

      4.2 Cost of Plan. The entire cost of the Plan shall be borne by the Company and no
contributions shall be required of the Covered Employees.

      4.3 Plan Year. The Plan shall operate on a plan year consisting of the twelve
consecutive month period commencing on January 1 of each year.

      4.4 Amendment and Termination. The Plan may be amended from time to time, or
terminated and discontinued, at any time, in each case at the discretion of the Directors;
provided, however, that the Plan may not be amended or terminated within one year after a Change of
Control or in any manner that would negatively affect a Covered Employee’s rights under the Plan
without the consent of the Covered Employees whose Plan benefits are affected by such amendment or
termination. A Plan amendment shall be effected by adoption of the Directors of a resolution
setting forth such amendment and by execution by the Company’s president or his delegatee of a
written instrument of Plan amendment. Plan termination shall be effected by adoption by the
Directors of a resolution to terminate the Plan and by execution of the Company’s president or his
delegatee of a written instrument of Plan termination.

      4.5 Not Contract of Employment. The adoption and maintenance of the Plan shall not be
deemed to be a contract of employment between the Company and any person or to be consideration for
the employment of any person. Nothing herein contained shall be deemed to give any person the
right to be retained in the employ of the Company or to restrict the right of the Company to
discharge any person at any time nor shall the Plan be deemed to give the Company the right to
require any person to remain in the employ of the Company or to restrict any person’s right to
terminate his employment at any time.

      4.6 Severability. Any provision in the Plan that is prohibited or unenforceable in
any jurisdiction by reason of applicable law shall, as to such jurisdiction, be ineffective only to
the extent of such prohibition or unenforceability without invalidating or affecting the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

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      4.7 Nonalienation. Covered Employees shall not have any right to pledge, hypothecate,
anticipate or assign benefits or rights under the Plan, except by will or the laws of descent and
distribution.

      4.8 Governing Law. The Plan shall be interpreted and construed in accordance with the
laws of the State of Texas except to the extent preempted by federal law.

      IN WITNESS WHEREOF, the Company has executed this Plan this ___day of
___, 2005.

	 	 	 	 	 
	 	REMINGTON OIL AND GAS CORPORATION

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

11<PAGE>
                                                                 EXHIBIT 10.17.3

                                                                          [LOGO]

                                COMMITMENT LETTER
                                 April 26, 2005

This commitment letter (the "COMMITMENT LETTER") is intended to set forth the
results of discussions between Merrill Lynch Mortgage Lending, Inc. ("MLML"),
and Ashford Hospitality Trust, Inc., and Ashford Hospitality Limited Partnership
(collectively, "SPONSOR"), relating to the financing of the Properties (as
defined herein), as more particularly set forth below. We are pleased to inform
you that MLML (including all required credit committees) has approved the Loans
(as defined below) to Borrower (as defined below) up to a maximum principal
amount of $370,000,000.00, subject to the terms and conditions that follow. The
following sets forth the terms and conditions upon which Lender will make the
Loans:

LOAN AMOUNT:                    Up to $370,000,000. The Loan Amount will be
                                divided into between 4 and 8 Loans, each of
                                which shall be secured by a pool of between 4
                                and 9 Properties.

LENDER:                         MLML, or an affiliate ("MERRILL LYNCH"), its
                                successors, transferees and assigns ("LENDER").

BORROWER:                       Each Borrower shall be a single purpose,
                                bankruptcy remote entity organized under United
                                States law acceptable to Merrill Lynch and
                                meeting rating agency criteria (collectively,
                                "BORROWER"), controlled directly or indirectly
                                by Sponsor.

PROPERTIES:                     30 hotels located in various cities and states,
                                as set forth on Exhibit A (collectively, the
                                "PROPERTIES").

LOAN TERM:                      10 years.

INTEREST RATE:                  Interest on the Loans shall be calculated by
                                adding 58 basis points (the "SPREAD") to the sum
                                of the 10-year mid-market Swap Spread appearing
                                on Telerate Screen 19901 and the bid side yield
                                of the on-the-run 10-year Treasury bond at the
                                time Borrower locks the coupon with Merrill
                                Lynch in accordance with the Rate Lock section
                                below. Notwithstanding the foregoing, if
                                Borrower elects to finance any one or more of
                                the Held For Sale Properties (as defined on
                                Exhibit A) individually (i.e., on a non-pooled
                                basis) as permitted under the fourth sentence of
                                the section entitled "Security" below, the
                                Spread on each such individual non-crossed Loan
                                shall be 74 basis points.

                                Interest will be calculated on an actual/360
                                basis. The Interest Rate shall be subject to
                                change, based on variations in, among other
                                things, treasury rates, swap rates, swap
                                spreads, and spreads in the generic CMBS fixed
                                rate markets, until the earlier to occur of (i)
                                the date on which the Borrower locks the coupon
                                with Merrill Lynch in accordance with the "Rate
                                Lock" section below and (ii) the funding of the
                                Loan.

RATE LOCK:                      Lender will lock the Interest Rate on the Loans
                                upon receipt by Lender of a good faith deposit
                                equal to 2% of the Loan Amount and the execution
                                by Sponsor of Lender's standard rate lock
                                agreement. Upon receipt of such good faith
                                deposit and rate lock agreement, Lender will
                                hedge the Loan. Sponsor shall be responsible for
                                all hedge carrying costs, except for the first
                                ten (10) days of hedge carrying costs (i.e.,
                                Borrower shall be entitled to a 10-day free rate
                                lock). The good faith deposit, less the cost of
                                the hedge, shall be refunded to the Borrower at
                                closing.

AMORTIZATION:                   5 years interest only, 25 year amortization
                                schedule thereafter, except for Loans secured by
                                individual non-crossed Held For Sale Properties
                                (as defined on Exhibit A) which shall amortize
                                over a 25-year amortization schedule without any
                                interest only period.
<PAGE>
                                                                          [LOGO]

ANTICIPATED
CLOSING DATE:                   Borrower and Lender shall use commercially
                                reasonable efforts to close the Loans on or
                                about June 17, 2005.

FEES AND EXPENSES:              Borrower will be required to pay no origination
                                fee.

                                Merrill Lynch will be entitled to: (i) the
                                Initial Deposit (as defined below), which Lender
                                acknowledges it has received, (ii) a Loan
                                Underwriting Fee of $25,000, which Lender
                                acknowledges it has received, (iii) a Commitment
                                Deposit of $300,000, payable upon execution of
                                this Commitment Letter, and (iv) reimbursement
                                of its out-of-pocket expenses, including
                                reasonable fees and expenses of counsel,
                                incurred in connection with this transaction
                                whether or not it actually closes (the "LENDER
                                EXPENSES").

                                Borrower will be directly responsible for
                                payment of any additional fees incurred by
                                Borrower in connection with the origination of
                                the Loan (e.g., Borrower's counsel, brokers
                                fees, title, survey, etc.).

                                "INITIAL DEPOSIT" shall be equal to $450,000.
                                The Initial Deposit and the Commitment Deposit,
                                less any Lender Expenses, shall be returned to
                                the Borrower upon closing or if the closing of
                                the Loan fails to occur for reasons beyond
                                Borrower's control.

INITIAL UNDERWRITABLE
CASH FLOW/MINIMUM
DSCR:                           At closing, the Properties shall provide an
                                Initial Underwritable Cash Flow (the "INITIAL
                                UCF"), as determined by Lender and using
                                applicable rating agency criteria, of at least
                                $36.7 million (assuming a Loan Amount of
                                $370,000,000) and each Loan shall have a minimum
                                DSCR of 1.35x. In addition, prior to closing
                                Borrower shall demonstrate a Loan-to-cost ratio
                                acceptable to Lender of not more than 75% and a
                                Loan-to-purchase price ratio of not more than
                                79.6%. Lender confirms, based on information
                                provided to date, Initial UCF of at least $36.7
                                million.

                                "DSCR" shall be defined as the ratio of (i) Net
                                Cash Flow (defined below) divided by (ii) annual
                                debt service due on the Loan assuming a 25-year
                                amortization period.

                                "NET CASH FLOW" shall be defined as the trailing
                                12-month net operating income from the
                                Properties ("NOI") less (i) management fees
                                equal to the greater of 3% of gross revenues per
                                annum and the actual management fees payable
                                under the applicable management agreements, (ii)
                                FF&E reserves equal to greater of 4% of gross
                                revenues per annum and the amount required to be
                                reserved under the applicable management
                                agreements, and (iii) actual franchise fees. The
                                calculation of NOI and Net Cash Flow shall be
                                determined by Lender in its reasonable
                                discretion.

SECURITY:                       Each of the Loans shall be secured by a pool of
                                between four and nine Properties, as more
                                particularly set forth on Exhibit A attached
                                hereto, it being understood that Lender may
                                require a reallocation of Properties and/or
                                principal balances among the Loans and/or a
                                bifurcation of certain Loans prior to
                                Securitization and prior to any assumption of a
                                Loan. The Loans will not be cross-collateralized
                                with each other after Securitization or after
                                the sale of a pool of Properties subject to a
                                Loan, but Lender may require the Loans to be
                                cross-collateralized prior to Securitization and

                                       2
<PAGE>
                                                                          [LOGO]

                                prior to any assumption of a Loan. The
                                collateral pools have been selected by mutual
                                agreement of Sponsor and Lender, based upon
                                diversification of geography, flag and
                                performance. In addition, Borrower may elect,
                                prior to closing, to finance any one or more of
                                the Properties identified on Exhibit A as Held
                                For Sale Properties, except for the two
                                TownePlace Suites located in Miami and Miami
                                Lakes, Florida, individually (i.e., on a
                                non-pooled basis, with only one Property
                                securing each Loan), provided that at the time
                                of closing each such non-crossed Loan shall have
                                a minimum DSCR of 1.45x (except for Loans
                                secured by the Residence Inn Ann Arbor,
                                Residence Inn Tyler and Residence Inn Silicon
                                Valley, which shall have a minimum DSCR of
                                1.40x) and a maximum Loan-to-value ratio of 70%,
                                subject to Lender approval of the composition of
                                the remaining Loan pools.

                                Security for each Loan will include, but not be
                                limited to, the following:

                                1.      Perfected first (and second if
                                        requested) priority mortgage liens on
                                        the Properties;

                                2.      A pledge of 100% of the equity ownership
                                        interest in the owner(s) of the
                                        Properties (only if required by Lender
                                        in connection with the creation of a
                                        mezzanine loan at the time of a
                                        Securitization);

                                3.      A perfected first and second priority
                                        security interest in any reserve
                                        accounts, including the tax insurance
                                        escrow account, FF&E Account and Cash
                                        Management Account;

                                4.      Assignment of all leases and rents.

NONCONSOLIDATION
OPINION:                        A Nonconsolidation Opinion acceptable to Lender
                                from an independent counsel reasonably
                                acceptable to Lender will be required.

MANAGEMENT:                     Management of each Property shall be conducted
                                pursuant to a management agreement with Marriott
                                Hotel Services, Inc., or other affiliate of
                                Marriott International, Inc. ("MANAGER").
                                Manager shall enter into a subordination,
                                non-disturbance and attornment agreement
                                acceptable to Lender and shall deliver to Lender
                                an estoppel certificate satisfactory to Lender,
                                provided however that Loan defaults shall not
                                give rise to any right to terminate Manager.
                                Manager may only be terminated if it commits a
                                default under the hotel management agreement for
                                which termination is a remedy and that default
                                remains uncured beyond any applicable cure
                                period.

CASH MANAGEMENT ACCOUNT:        Borrower, Manager and all applicable credit card
                                companies shall be required to deposit all
                                revenues from the Property directly into a
                                Manager-controlled account (the "MANAGER
                                ACCOUNT"). Manager shall administer the Manager
                                Account and deposit all amounts due to Borrower
                                under the Management Agreement directly into a
                                Lender-controlled account (the "CASH MANAGEMENT
                                ACCOUNT"). Prior to an Event of Default, all
                                amounts remaining after application of the debt
                                service payment and all other amounts required
                                to be paid to or deposited with the Lender under
                                the Loan documents shall be swept to an account
                                specified by Borrower. Lender will receive a
                                first priority pledge of the Cash Management
                                Account as additional security for the Loan.

PREPAYMENT:                     The Loans will be locked out from prepayment,
                                except during the 60 days prior to maturity,
                                when the Loans may be prepaid in full without
                                penalty. Notwithstanding the foregoing, after
                                the second anniversary of Securitization (as
                                defined below) of each Loan (the "DEFEASANCE
                                LOCKOUT PERIOD"), Borrower may defease the Loan
                                in whole; prior to the Defeasance Lockout Period
                                Borrower may prepay each Loan in

                                       3
<PAGE>
                                                                          [LOGO]

                                whole subject to payment of a prepayment premium
                                equal to the greater of yield maintenance or 1%.

PARTIAL DEFEASANCE:             After the Defeasance Lockout Period, each Loan
                                may be defeased in part and any one or more of
                                the underlying Properties may be released and
                                replaced with U.S. treasury securities in the
                                amount of 125% of the aggregate allocated loan
                                amounts of the Property(ies) to be released
                                (which allocated loan amounts shall be agreed
                                upon by Sponsor and Merrill Lynch prior to
                                closing), provided that Borrower complies with
                                standard defeasance provisions for loans of this
                                type, including the requirement that after such
                                partial defeasance the DSCR on the applicable
                                Loan is equal to or greater than the DSCR at the
                                time of closing and immediately prior to such
                                partial defeasance ("STANDARD DEFEASANCE
                                PROVISIONS"). Nothwithstanding the foregoing,
                                with respect to all Loans other than those
                                secured by pools of Held For Sale Properties,
                                after the Defeasance Lockout Period Borrower may
                                obtain the release up to 25% of the Properties
                                (by allocated loan amount) and replace them with
                                U.S. treasury securities in the amount of 100%
                                of the aggregate allocated loan amounts of the
                                Property(ies) to be released, provided that
                                Borrower complies with Standard Defeasance
                                Provisions.

PROPERTY SUBSTITUTIONS:         Borrower shall be permitted to substitute up to
                                50% of the Properties (by allocated loan amount)
                                securing each Loan provided that, among other
                                things, (1) no event of default exists, (2) the
                                market value and net operating income of each
                                substitute Property are equal to or greater than
                                that of the replaced Property, (3) after the
                                substitution the DSCR on the applicable Loan is
                                equal to or greater than the DSCR at the time of
                                closing and immediately prior to such
                                substitution, (4) Borrower delivers an
                                acceptable REMIC opinion, and (5) Borrower
                                obtains Lender consent not to be unreasonably
                                withheld or delayed prior to a Securitization
                                and a rating agency confirmation letter after a
                                Securitization.

PERMITTED TRANSFERS:            The Properties securing a Loan, and/or direct or
                                indirect equity interests in the applicable
                                Borrower, may be transferred without payment of
                                an assumption fee , provided that, among other
                                things, (1) a new non-consolidation opinion is
                                delivered to Lender, and such non-consolidation
                                is in substantially the same form and has
                                substantially the same substance as the
                                non-consolidation opinion delivered at closing,
                                (2) all entities required to be single-purpose
                                entities at closing remain single-purposes
                                entities under criteria established by the
                                rating agencies, (3) borrower provides 30 days
                                advance written notice to Lender of such
                                transfer, (4) Borrower obtains Lender consent
                                not to be unreasonably withheld or delayed prior
                                to a Securitization and a rating agency
                                confirmation letter after a Securitization, and
                                (5) no event of default exists.

BORROWER REQUESTS:              In the instance a Borrower intends to effectuate
                                a transaction that is not permitted under the
                                Loan documents, Borrower shall be required to
                                pay a maximum fee of $10,000 plus any reasonable
                                out-of-pocket expenses to Lender or any loan
                                servicer in connection with obtaining the
                                consent of Lender or such servicer.

                                       4
<PAGE>
                                                                          [LOGO]

REPLACEMENT RESERVE:            An initial amount will be deposited into a
                                reserve account equal to 125% of any deferred
                                maintenance or environmental remediation costs
                                as determined by new third party studies,
                                provided that all amounts so deposited will be
                                returned to Borrower upon completion of the
                                required deferred maintenance work and/or
                                environmental remediation. A replacement reserve
                                equal to the greater of 4% of gross revenues per
                                annum and the amount required to be reserved
                                under the applicable management agreements (the
                                "REPLACEMENT RESERVE ACCOUNT") will be
                                established and funded monthly from excess cash
                                flow. The Replacement Reserve will be available
                                to Borrower for reimbursement of FF&E and
                                capital expenditures incurred. In addition to
                                the Replacement Reserve, Ashford Hospitality
                                Limited Partnership shall provide a payment and
                                completion guaranty, in form and substance
                                acceptable to Lender, in the amount of
                                $26,000,000, for items identified in certain
                                property improvement plans and additional
                                upfront capital expenditures to be mutually
                                agreed upon by Borrower and Lender.

TAXES AND INSURANCE ESCROW:     Borrower will be required to reserve, on a
                                monthly basis, an amount equal to one-twelfth of
                                (i) all annual tax bills and (ii) the annual
                                insurance premium(s) for the Properties.

RECOURSE CARVEOUTS:             Borrower will execute Lender's standard
                                non-recourse carveout guaranty consistent with
                                the prior $210 million Merrill Lynch financing
                                with affiliates of Sponsor (the "PRIOR
                                FINANCING").

LOAN RECOURSE:                  Consistent with the Prior Financing, Lender's
                                recourse in the event of a default will be
                                limited to Lender's security interest in the
                                Properties and to Borrower's interest therein;
                                provided, however, that Borrower shall be
                                personally liable for all standard carveouts,
                                including without limitation, damages arising
                                from (i) any fraud or willful misrepresentation,
                                (ii) intentional misapplication or
                                misappropriation of insurance proceeds,
                                condemnation proceeds, tenant security deposits,
                                rents and any other funds due Lender under the
                                Loan documents, (iii) damage to any Property
                                resulting from intentional acts, (iv) if
                                sufficient cash flow exists, failure to pay
                                taxes or other Property related liens. In
                                addition, the Loan will become fully recourse to
                                Borrower if (a) Borrower or any related entity
                                interferes with Lender's pursuit of any remedy
                                provided under any of the Loan documents, (b)
                                any or all of the Properties become an asset in
                                a voluntary bankruptcy or insolvency proceeding,
                                (c) all or any part of any Property (including
                                the removal of any equipment) or ownership
                                interest in all or any part of any Property or
                                Borrower is transferred in violation of the Loan
                                documents or (d) violation of the single-purpose
                                bankruptcy remote status of Borrower.

                                In addition, Borrower will execute a hazardous
                                waste indemnity.

INSURANCE:                      Borrower will be required to maintain "all-risk"
                                perils insurance (including terrorism coverage),
                                business interruption and liability insurance
                                including flood, windstorm and earthquake
                                insurance if a Property is located in a flood,
                                hurricane or earthquake zone, as applicable,
                                acceptable to Lender.

THIRD PARTY
REPORTS:                        Lender acknowledges that it has received
                                satisfactory MAI appraisals (in accordance with
                                FIRREA standards) demonstrating a loan-to-value
                                ratio of 75% with respect to each of the Loan
                                pools set forth on Exhibit A, and environmental
                                and engineering reports, or acceptable updates
                                to existing reportsfor the Properties.

                                       5
<PAGE>
                                                                          [LOGO]

ADDITIONAL
ENCUMBRANCES:                   Borrower will not be permitted to further
                                encumber the Properties while the Loan is
                                outstanding, except as approved by Lender as set
                                forth in the definition of "Permitted
                                Encumbrances" as set forth in the Loan
                                documentation executed in connection with the
                                Prior Financing.

NO ADDITIONAL
INDEBTEDNESS:                   Borrower may not incur any indebtedness other
                                than the Loan during the term thereof and the
                                owner of Borrower may not pledge any direct or
                                indirect interest in Borrower to secure any
                                financing during the term of the Loan.
                                Nothwithstanding the foregoing, provided that
                                the DSCR on a Loan is greater than 1.5x and the
                                Loan-to-value ratio on such Loan based on new
                                appraisals is not more than 70%, then the owner
                                of the applicable Borrower may incur mezzanine
                                indebtedness such that the ratio of total
                                indebtedness (i.e., Loan plus mezzanine loan)
                                does not exceed 75% and the all-in DSCR does not
                                exceed 1.35x; provided further that in
                                connection with the sale of any Property or
                                Properties where the purchaser assumes the
                                applicable Loan in accordance with the
                                "Permitted Transfers" section above, the
                                applicable Borrower or Sponsor may provide
                                mezzanine financing to the purchaser in an
                                amount which, when taken together with any other
                                financing obtained by such purchaser, does not
                                exceed 90% of the sale price, subject to receipt
                                of Lender consent prior to a Securitization and
                                a rating agency confirmation letter after a
                                Securitization.

OTHER COVENANTS:                The Loan documents will include standard
                                covenants for secured loans of this type, as
                                Lender may require, including, without
                                limitation, financial reporting covenants,
                                covenants regarding insurance, due on sale and
                                due on encumbrance covenants, covenants
                                prohibiting changes to the governing documents
                                of Borrower, budget approval covenants (subject
                                to the limitations of the applicable management
                                agreements), covenants prohibiting amendments to
                                the Property management agreement without
                                Lender's consent and covenants regarding the
                                bankruptcy remote special purpose status of
                                Borrower.

COOPERATION:                    Lender intends to sell all or a portion of the
                                Loans by certificates, participations,
                                securities or pari passu notes evidencing whole
                                or component interests therein, through one or
                                more public or private offerings (each a
                                "SECURITIZATION"). Borrower and Sponsor shall
                                cooperate with Lender and its affiliates in
                                connection with any such transaction, including,
                                without limitation:

                                1.      Separating the Loan into two or more
                                        separate notes and/or participation
                                        interests including, but not limited to,
                                        separate senior and junior or mezzanine
                                        notes, participations or components.
                                        Such notes or components may be assigned
                                        different interests rates, so long as
                                        the initial weighted average of such
                                        rates equals the Interest Rate as of the
                                        closing of the Loan.

                                2.      Entering into any amendments or
                                        modifications to the Loan documents
                                        (including to re-allocate the principal
                                        amounts among one or more of the Loans
                                        or to re-arrange the pools serving as
                                        collateral for the Loans) which may be
                                        requested by Lender or any rating agency
                                        provided same do not modify: (i) the
                                        Interest Rate; (ii) the stated maturity
                                        date of the Loan; (iii) the amortization
                                        of the principal amount, if any; (iv)
                                        any other material economic terms of the
                                        Loan; and (v) any other provision, the
                                        effect of which would increase
                                        Borrower's obligations or decrease
                                        Borrower's rights under the Loan
                                        documents.

                                       6
<PAGE>
                                                                          [LOGO]

                                3.      Borrower will provide such legal
                                        opinions, cooperate in good faith with
                                        Lender in effecting securitization of a
                                        portion of or the entire Loan and
                                        provide other information necessary for
                                        Lender to make the offered certificates
                                        saleable in the secondary market and to
                                        obtain ratings from two or more rating
                                        agencies selected by Lender.

CONDITIONS PRECEDENT:           Funding of the Loan is subject to: (i)
                                satisfactory completion of due diligence on the
                                Properties, Borrower and Sponsor, provided
                                however that Lender acknowledges and agrees that
                                it has reviewed and approved the engineering and
                                environmental reports and the appraisals as set
                                forth above, (ii) no material adverse change in
                                the fair market value of the Properties or the
                                financial condition of Borrower and Sponsor
                                prior to closing, (iii) completion and execution
                                of acceptable Loan documentation consistent with
                                the terms hereof and materially consistent, to
                                the extent applicable, with the Prior Financing,
                                and (iv) the absence of any material disruption
                                or material adverse change in current financial,
                                banking or capital market conditions that, in
                                the sole reasonable judgment of Lender could
                                materially impair the satisfactory syndication
                                of the Loan. Lender has received final approval
                                by Lender's loan committee. This Commitment
                                Letter shall be kept confidential, shall not be
                                reproduced or disclosed, and shall not be used
                                by you other than in connection with the
                                transaction described herein.

                                       7
<PAGE>
                                        MERRILL LYNCH MORTGAGE LENDING, INC.

                                        BY: /S/ ROBERT SPINNA
                                            ----------------------------------
                                        NAME: ROBERT SPINNA
                                             ---------------------------------
                                        TITLE:
                                              --------------------------------

ACCEPTED AND AGREED TO AS OF THIS
26TH DAY OF APRIL, 2005:

ASHFORD HOSPITALITY TRUST, INC.

BY: /S/DAVID A. BROOKS
    -------------------------------------------
NAME: DAVID A. BROOKS
      -----------------------------------------
TITLE: CHIEF LEGAL OFFICER
       ----------------------------------------

ASHFORD HOSPITALITY LIMITED PARTNERSHIP

BY:  ASHFORD OP GENERAL PARTNER LLC

BY: /S/DAVID A. BROOKS
    -------------------------------------------
NAME: DAVID A. BROOKS
      -----------------------------------------
TITLE: CHIEF LEGAL OFFICER
       ----------------------------------------

                                       8
<PAGE>
                                                                          [LOGO]

                           EXHIBIT A - THE PROPERTIES

<TABLE>
<CAPTION>
                                                                   # OF
PROPERTY NAME                                           STATE      ROOMS
-------------                                           -----      -----
<S>                                                     <C>    <C>

POOL 1
Residence Inn Orlando Sea World                          FL             350
Residence Inn Cottonwood                                 UT             144
Courtyard Palm Desert                                    CA             151
Residence Inn Palm Desert                                CA             130
Spring Hill Suites University Research Park              NC             136
                                                               -------------
Subtotal                                                                911

POOL 2
Residence Inn Fairfax                                    VA             159
Residence Inn Sorrento Mesa                              CA             150
Courtyard Irvine Spectrum                                CA             156
SpringHill Suites Durham Airport                         NC             120
                                                               -------------
Subtotal                                                                585

POOL 3
Courtyard Reagan Airport                                 VA             272
Courtyard Ft. Lauderdale                                 FL             174
Courtyard Overland Park                                  KS             168
Courtyard Alpharetta                                     GA             154
                                                               -------------
Subtotal                                                                768

POOL 4
Residence Inn Fishkill*                                  NY             139
Residence Inn Orlando*                                   FL             176
Residence Inn River Plaza*                               TX             120
Residence Inn Tyler*                                     TX             128
                                                               -------------
Subtotal                                                                563

POOL 5
Residence Inn Sacramento*                                CA             176
Residence Inn Wilmington*                                DE             120
Residence Inn Providence*                                RI              96
Residence Inn Ann Arbor*                                 MI             114
                                                               -------------
Subtotal                                                                506
</TABLE>

                                       9
<PAGE>
                                                                          [LOGO]

<TABLE>
<CAPTION>
<S>                                                     <C>    <C>
POOL 6
SpringHill Suites Gaithersburg                           MD             162
SpringHill Suites Centreville                            VA             136
TownePlace Suites Miami Airport*                         FL              95
TownePlace Suites Miami Lakes*                           FL              95
TownePlace Suites Mt. Laurel*                            NJ              95
TownePlace Suites Ft. Worth*                             TX              95
TownePlace Suites Silicon Valley*                        CA             127
TownePlace Suites Portland*                              ME              95
TownePlace Suites Boston*                                MA              95
                                                               -------------
Subtotal                                                                995

                                                               -------------
PORTFOLIO TOTAL                                                       4,328
</TABLE>

* PROPERTIES MARKED WITH AN ASTERISK SHALL BE DEEMED "HELD FOR SALE PROPERTIES."

                                       10

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