Document:

exv10w6

 

EXHIBIT 10.6

U.S. $40,000,000

SUBORDINATE UNSECURED TERM LOAN AGREEMENT

Dated as of January 10th, 2003

Among

MERISTAR H & R OPERATING COMPANY, L.P.

as the Borrower,

LEHMAN COMMERCIAL PAPER, INC.

as Administrative Agent,

LEHMAN BROTHERS, INC.

as Lead Arranger and Book Runner,

LEHMAN BROTHERS, INC.

as Lender,

AND

VARIOUS OTHER LENDERS

 

 

	 	 	 	 	 	 
	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	 	Section 1.01 Certain Defined Terms
	 	 	1	 
	 	Section 1.02 Computation of Time Periods
	 	 	26	 
	 	Section 1.03 Accounting Terms; Changes in GAAP
	 	 	26	 
	 	Section 1.04 Intentionally Deleted
	 	 	27	 
	 	Section 1.05 Miscellaneous
	 	 	27	 
	ARTICLE II THE ADVANCES
	 	 	27	 
	 	Section 2.01 The Advance
	 	 	27	 
	 	Section 2.02 Notes
	 	 	27	 
	 	Section 2.03 Fees
	 	 	27	 
	 	Section 2.04 Intentionally Deleted
	 	 	28	 
	 	Section 2.05 Repayment of Advances on Maturity Date; Extension
	 	 	28	 
	 	Section 2.06 Interest, Late Payment Fee
	 	 	28	 
	 	Section 2.07 Prepayments
	 	 	29	 
	 	Section 2.08 Breakage Costs
	 	 	30	 
	 	Section 2.09 Increased Costs
	 	 	30	 
	 	Section 2.10 Payments and Computations
	 	 	31	 
	 	Section 2.11 Taxes
	 	 	33	 
	 	Section 2.12 Illegality
	 	 	35	 
	 	Section 2.13 Eurodollar Rate Unascertainable
	 	 	36	 
	 	Section 2.14 Determination of Leverage Ratio and Senior Leverage Ratio
	 	 	36	 
	 	Section 2.15 Lender Replacement
	 	 	36	 
	 	Section 2.16 Sharing of Payments, Etc
	 	 	37	 
	 	Section 2.17 Agreement to Subordinate
	 	 	38	 
	ARTICLE III CONDITIONS OF LENDING
	 	 	38	 
	 	Section 3.01 Conditions Precedent to the Initial Advance
	 	 	38	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	 	 	40	 
	 	Section 4.01 Existence; Qualification; Partners; Subsidiaries
	 	 	40	 
	 	Section 4.02 Partnership and Corporate Power
	 	 	41	 
	 	Section 4.03 Authorization and Approvals
	 	 	41	 
	 	Section 4.04 Enforceable Obligations
	 	 	41	 
	 	Section 4.05 Financial Statements
	 	 	42	 

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	 	Section 4.06 True and Complete Disclosure
	 	 	42	 
	 	Section 4.07 Litigation
	 	 	42	 
	 	Section 4.08 Use of Proceeds
	 	 	42	 
	 	Section 4.09 Investment Company Act
	 	 	43	 
	 	Section 4.10 Taxes
	 	 	43	 
	 	Section 4.11 Pension Plans
	 	 	43	 
	 	Section 4.12 Insurance
	 	 	44	 
	 	Section 4.13 No Burdensome Restrictions; No Defaults
	 	 	44	 
	 	Section 4.14 Environmental Condition
	 	 	44	 
	 	Section 4.15 Legal Requirements, Zoning
	 	 	45	 
	 	Section 4.16 Existing Indebtedness and Interest Rate Agreements; Solvency
	 	 	46	 
	 	Section 4.17 Leasing Arrangements
	 	 	46	 
	 	Section 4.18 Management Agreements
	 	 	46	 
	 	Section 4.19 Intercompany Agreement
	 	 	46	 
	 	Section 4.20 Franchise Agreements
	 	 	47	 
	 	Section 4.21 Owned Hospitality Properties
	 	 	47	 
	 	Section 4.22 Approved Inter-Company Indebtedness
	 	 	47	 
	 	Section 4.23 Insurance Business
	 	 	47	 
	 	Section 4.24 Permitted Housing Business Leasing
	 	 	50	 
	ARTICLE V AFFIRMATIVE COVENANTS
	 	 	50	 
	 	Section 5.01 Compliance with Laws
	 	 	50	 
	 	Section 5.02 Preservation of Existence; Separateness, Etc.
	 	 	50	 
	 	Section 5.03 Payment of Taxes, Etc
	 	 	51	 
	 	Section 5.04 Visitation Rights; Lender Meeting
	 	 	52	 
	 	Section 5.05 Reporting Requirements
	 	 	52	 
	 	Section 5.06 Maintenance of Property
	 	 	55	 
	 	Section 5.07 Insurance
	 	 	55	 
	 	Section 5.08 Use of Proceeds
	 	 	56	 
	 	Section 5.09 Intentionally Deleted
	 	 	56	 
	 	Section 5.10 New Subsidiaries
	 	 	56	 
	 	Section 5.11 Insurance Business
	 	 	56	 
	 	Section 5.12 Interest Rate Agreements
	 	 	56	 

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	ARTICLE VI NEGATIVE COVENANTS
	 	 	57	 
	 	Section 6.01 Liens, Etc
	 	 	57	 
	 	Section 6.02 Indebtedness
	 	 	58	 
	 	Section 6.03 Agreements Restricting Distributions From Subsidiaries
	 	 	59	 
	 	Section 6.04 Restricted Payments
	 	 	59	 
	 	Section 6.05 Fundamental Changes; Asset Dispositions
	 	 	60	 
	 	Section 6.06 Investments and other Property
	 	 	61	 
	 	Section 6.07 Affiliate Transactions
	 	 	62	 
	 	Section 6.08 Sale or Discount of Receivables
	 	 	62	 
	 	Section 6.09 Material Documents
	 	 	62	 
	 	Section 6.10 No Further Negative Pledges
	 	 	62	 
	ARTICLE VII FINANCIAL COVENANTS
	 	 	63	 
	 	Section 7.01 Interest Coverage Ratio
	 	 	63	 
	 	Section 7.02 Senior Interest Coverage Ratio
	 	 	63	 
	 	Section 7.03 Leverage Ratio
	 	 	63	 
	 	Section 7.04 Senior Leverage Ratio
	 	 	64	 
	 	Section 7.05 Maintenance of Net Worth
	 	 	64	 
	ARTICLE VIII EVENTS OF DEFAULT; REMEDIES
	 	 	65	 
	 	Section 8.01 Events of Default
	 	 	65	 
	 	Section 8.02 Optional Acceleration of Maturity; Other Actions
	 	 	68	 
	 	Section 8.03 Automatic Acceleration of Maturity
	 	 	68	 
	 	Section 8.04 Intentionally Deleted
	 	 	68	 
	 	Section 8.05 Non-exclusivity of Remedies
	 	 	69	 
	 	Section 8.06 Right of Set-off
	 	 	69	 
	ARTICLE IX AGENCY AND ISSUING BANK PROVISIONS
	 	 	69	 
	 	Section 9.01 Authorization and Action
	 	 	69	 
	 	Section 9.02 Administrative Agent’s Reliance, Etc
	 	 	70	 
	 	Section 9.03 Each Agent and Its Affiliates
	 	 	70	 
	 	Section 9.04 Lender Credit Decision
	 	 	70	 
	 	Section 9.05 Indemnification
	 	 	71	 
	 	Section 9.06 Successor Agent
	 	 	71	 
	ARTICLE X MISCELLANEOUS
	 	 	72	 

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	 	Section 10.01 Amendments, Etc.
	 	 	72	 
	 	Section 10.02 Notices, Etc
	 	 	73	 
	 	Section 10.03 No Waiver; Remedies
	 	 	74	 
	 	Section 10.04 Costs and Expenses
	 	 	74	 
	 	Section 10.05 Binding Effect
	 	 	74	 
	 	Section 10.06 Lender Assignments and Participations
	 	 	74	 
	 	Section 10.07 Indemnification
	 	 	77	 
	 	Section 10.08 Execution in Counterparts
	 	 	78	 
	 	Section 10.09 Survival of Representations, Indemnifications, etc
	 	 	78	 
	 	Section 10.10 Severability
	 	 	78	 
	 	Section 10.11 Usury Not Intended
	 	 	78	 
	 	Section 10.12 GOVERNING LAW
	 	 	79	 
	 	Section 10.13 CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL
	 	 	79	 
	 	Section 10.14 Knowledge of Borrower
	 	 	81	 
	 	Section 10.15 Lenders Not in Control
	 	 	81	 
	 	Section 10.16 Headings Descriptive
	 	 	81	 
	 	Section 10.17 Time is of the Essence
	 	 	81	 
	 	Section 10.18 Intentionally Deleted
	 	 	81	 
	 	Section 10.19 Judgment Currency
	 	 	81	 
	 	Section 10.20 No Consequential Damages
	 	 	81	 

EXHIBITS:

	 	 	 	 	 
	Exhibit A	 	
-
	 	Form of Note
	Exhibit B	 	
-
	 	Form of Adjustment Report
	Exhibit C	 	
-
	 	Form of Assignment and Acceptance
	Exhibit D	 	
-
	 	Form of Compliance Certificate
	Exhibit F	 	
-
	 	Form of Guaranty

SCHEDULES:

	 	 	 	 	 
	Schedule 1.01(a)	 	
-
	 	Commitments
	Schedule 1.01(b)	 	
-
	 	Approved Inter-Company Indebtedness
	Schedule 1.01(c)	 	
-
	 	Non-Pledged Ownership Interests
	Schedule 1.01(d)	 	
-
	 	Existing Owned Hospitality Property Investments
	Schedule 1.01(e)	 	
-
	 	Existing Management Agreements

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	Schedule 1.01(f)	 	
-
	 	Existing Participating Leases
	Schedule 1.01(g)	 	
-
	 	Guarantors
	Schedule 1.01(i)	 	
-
	 	Specified Acquirer
	Schedule 4.01	 	
-
	 	Subsidiaries
	Schedule 4.07	 	
-
	 	Litigation
	Schedule 4.14	 	
-
	 	Environmental Condition
	Schedule 4.15	 	
-
	 	Legal Requirements; Zoning; Utilities; Access
	Schedule 4.16	 	
-
	 	Existing Indebtedness and Interest Rate Agreements
	Schedule 4.21	 	
-
	 	Owned Hospitality Properties
	Schedule 4.23(a)	 	
-
	 	Insurance Companies, Insurance Licenses and Deposited Securities
	Schedule 4.23(e)	 	
-
	 	Insurance Contracts and Reinsurance Contracts
	Schedule 4.24	 	
-
	 	Permitted Housing Business Leasing
	Schedule 5.07	 	
-
	 	Required Insurance Coverage

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SUBORDINATE UNSECURED TERM LOAN AGREEMENT

     THIS SUBORDINATE UNSECURED TERM LOAN AGREEMENT (this “Agreement”), dated
as of January 10th, 2003 (the “Closing Date”), is among MERISTAR H & R
OPERATING COMPANY, L.P., a Delaware limited partnership, as the Borrower;
LEHMAN COMMERCIAL PAPER, INC., as the Administrative Agent; LEHMAN BROTHERS,
INC., as Sole Lead Arranger and Book Runner; LEHMAN BROTHERS, INC., as Lender;
and the Various Other Lenders (as defined below).

PRELIMINARY STATEMENTS:

     WHEREAS, the Borrower desires that the Lenders extend certain credit
facilities, the proceeds of which will be used for the purposes set forth in
Section 4.08;

     WHEREAS, the Lenders have agreed to extend such credit facilities as more
specifically described in this Agreement;

     NOW, THEREFORE, in consideration of the foregoing recitals and the
provisions contained in this Agreement, the parties hereto do hereby agree as
follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

     Section 1.01 Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (unless otherwise indicated,
such meanings to be equally applicable to both the singular and plural forms of
the terms defined):

     “Accession Agreement” means an Accession Agreement in the form attached
respectively to the Guaranty as Annex 1 thereto, which agreement causes the
Person executing and delivering the same to the Administrative Agent to become
a party, respectively, to the Guaranty.

     “Additional Designated Senior Indebtedness” means, for the Parent and its
Subsidiaries, Senior Indebtedness of the Parent and its Subsidiaries (a) which
is incurred after the Closing Date, (b) for which the gross proceeds are equal
to or greater than $90,000,000 but do not exceed $113,000,000, (c) which does
not have a maturity date earlier than six (6) months after the Maturity Date,
as the Maturity Date have been extended, (d) which does not cause a Default or
Event of Default to occur, and (e) for which the Net Cash Proceeds are used to
repay the Senior Obligations and the Obligations to the extent required by and
in accordance with the terms of the Senior Credit Facility and this Agreement,
respectively.

     “Adjusted EBITDA” means, for any Person or Hospitality Property, as
applicable, for any Rolling Period, the EBITDA of such Person or Hospitality
Property, as applicable, for such Rolling Period plus non-cash employee
compensation up to $2,000,000 per Fiscal Year in the aggregate commencing with
the 2002 Fiscal Year, and other non-cash items of such Person or Hospitality
Property, as applicable, for such Rolling Period; provided that for any
Hospitality Property the aggregate FF&E Reserves for such Rolling Period in
respect of such Hospitality

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 Property shall be subtracted from such Hospitality Property’s EBITDA in
determining such Hospitality Property’s Adjusted EBITDA; provided further that
if the Parent or any of its Subsidiaries during such Rolling Period or in the
period from the end of such Rolling Period to the Status Reset Date which
occurs in the Fiscal Quarter following such Rolling Period either (a) sells,
disposes of or terminates any Permitted Property Agreements or (b) sells or
disposes of any Investments or Non-Replaced Property with an Investment Amount
in excess of $1,000,000, the EBITDA arising from such Permitted Property
Agreement, Investment, or Non-Replaced Property, as applicable, for the
applicable Rolling Period shall be excluded from the calculation of Adjusted
EBITDA; and provided further if the Parent or any of its Subsidiaries during
such Rolling Period or in the period from the end of such Rolling Period to the
Status Reset Date which occurs in the Fiscal Quarter following such Rolling
Period either (a) purchases or acquires any Permitted Property Agreements or
(b) purchases or acquires any Investments or Non-Replaced Property with an
Investment Amount in excess of $1,000,000, the EBITDA arising from such
Permitted Property Agreement, Investment, or Non-Replaced Property, as
applicable, for the applicable Rolling Period on a pro forma basis shall be
included in the calculation of Adjusted EBITDA; and provided further that the
Adjusted EBITDA for the Parent and its Subsidiaries for the Rolling Periods
ending on the dates set forth in the following chart will for purposes of the
financial covenants contained in Article VII be increased by the applicable
amount set forth next to the ending date of each such Rolling Period:

	 	 	 	 	 
	Ending Date of Rolling Period	 	Adjusted EBITDA Adjustment
	
	 	

	September 30, 2002
	 	$	5,000,000	 
	December 31, 2002
	 	$	3,750,000	 
	March 31, 2003
	 	$	2,500,000	 
	June 30, 2003
	 	$	1,250,000	 

     “Adjusted Net Worth” means, for the Parent as of any date, the sum of (a)
the Parent’s Net Worth on such date plus (b) the minority interest reflected as
a liability on the Parent’s balance sheet on such date determined in accordance
with GAAP (excluding that portion of the minority interest attributable to
Ownership Interests in any Subsidiary of the Borrower which is not a
Guarantor).

     “Adjustment Event” has the meaning set forth in Section 2.14(a).

     “Adjustment Report” means a certificate of the Borrower in substantially
the form of the attached Exhibit B.

     “Administrative Agent” means Lehman Commercial Paper, Inc. in its capacity
as Administrative Agent for the Lenders pursuant to Article IX and any
successor Administrative Agent appointed pursuant to Section 9.06.

     “Administrative Agent Fee Letter” means the letter agreement dated as of
January 10th, 2003, among the Borrower, the Parent, and the Administrative
Agent, as the same may be amended, modified, supplemented or replaced.

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     “Advance” means the advance by a Lender to the Borrower of its Commitment
pursuant to Section 2.01.

     “Affected Lender” has the meaning set forth in Section 2.15(a).

     “Affiliate” means, as to any Person, any other Person that, directly or
indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such Person or any Subsidiary of such Person.
The term “control” (including the terms “controlled by” or “under common
control with”) means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a Person,
whether through ownership of a Control Percentage, by contract or otherwise.

     “Agreement” has the meaning given such term in the initial paragraph of
this agreement.

     “Applicable Lending Office” means, with respect to each Lender, (a) in the
case of a Base Rate Portion, such Lender’s Domestic Lending Office, (b) in the
case of a Eurodollar Portion, such Lender’s Eurodollar Lending Office, and (c)
in the case of any other notice or request under the Credit Documents, the
office of such Lender specified as its “Credit Contact” in the questionnaire
such Lender provided to the Administrative Agent, or such other office of such
Lender as such Lender may from time to time specify to the Borrower and the
Administrative Agent.

     “Applicable Margin” means, with respect to any Loan Portion at any date,
the applicable percentage per annum set forth below:

	 	 	 	 	 
	Base Rate	 	Eurodollar
	Portion	 	Portion
	
	 	

	7.50%	 	 	8.50	%

     “Approved Fund” means any fund that invests in commercial loans which is
advised or managed by an investment advisor which has total assets under
management in excess of $250,000,000.

     “Approved Inter-Company Indebtedness” means the Indebtedness described on
Schedule 1.01(b), which Indebtedness (a) may not exceed $50,000,000 without the
approval of the Administrative Agent and may not exceed $52,500,000 without the
approval of the Required Lenders, (b) is unsecured, (c) is subordinated to the
Senior Obligations and to the Obligations, in a manner acceptable to the
Administrative Agent, and (d) is Collateral for the Senior Credit Facility.

     “Approved Inter-Company Indebtedness Loan Documents” means the documents
described on Schedule 1.01(b), together with any additional promissory notes
evidencing Approved Inter-Company Indebtedness.

     “Approved Management Agreement” means a management agreement by and
between a Person, as owner, and Borrower or Borrower’s Subsidiary or
Unconsolidated Entity, as manager,

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 in substantially the form of an Existing Management Agreement, a form
which does not include materially adverse provisions which are not customary
for management agreements of Hospitality Properties or such other form as is
approved by the Senior Administrative Agent, or, if the Senior Credit Facility
has been repaid in full and has been terminated, the Administrative Agent, in
writing (which approval shall not be unreasonably withheld).

     “Approved Participating Lease” means a lease (except for a Ground Lease)
by and between a Person, as lessor, and Borrower or Borrower’s Subsidiary, as
lessee, in substantially the form of an Existing Participating Lease, a form
which does not include materially adverse provisions which are not customary
for participating leases of Hospitality Properties or such other form as is
approved by the Senior Administrative Agent, or, if the Senior Credit Facility
has been repaid in full and has been terminated, the Administrative Agent, in
writing (which approval shall not be unreasonably withheld).

     “Asset Disposition” means any conveyance, exchange, transfer, or
assignment of any Investment or Non-Replaced Property by the Borrower or a
Guarantor to a Person other than the Borrower or a Guarantor.

     “Assignment and Acceptance” means an assignment and acceptance entered
into by a Lender and an Eligible Assignee, and accepted by the Administrative
Agent, in substantially the form of the attached Exhibit C.

     “Base Rate” shall mean for any day, a rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to the higher of (a) the Prime Rate in
effect on such day and (b) the Federal Funds Rate in effect on such day plus
1/2 of 1%. For purposes hereof: “Prime Rate” shall mean the prime lending
rate as set forth on the British Banking Association Telerate Page 5 (or such
other comparable page as may, in the opinion of the Administrative Agent,
replace such page for the purpose of displaying such rate), as in effect from
time to time. The Prime Rate is a reference rate and does not necessarily
represent the lowest or best rate actually available. The Administrative Agent
or any Lender may make commercial loans or other loans at rates of interest at,
above or below the Prime Rate. Changes in the Base Rate due to a change in the
Prime Rate or the Federal Funds Rate shall be effective as of the opening of
business on the effective day of such change in the Prime Rate or the Federal
Funds Rate, respectively.

     “Base Rate Portion” shall mean the portion of the Loan being maintained at
a rate of interest based upon the Base Rate

     “Beverage Entity” means any Subsidiary or Unconsolidated Entity of the
Parent for which substantially all of such Person’s Property is directly
related to the sale of beverages at a Hospitality Property, and “Beverage
Entities” means all such Persons.

     “Borrower” means MeriStar H & R Operating Company, L.P., a Delaware
limited partnership.

     “Borrowing” means the borrowing consisting of the simultaneous Advance of
the entire Facility Amount made by each Lender pursuant to Section 2.01(a) on
the Closing Date.

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     “Business Day” means (a) with respect to a Base Rate Portion, a day of the
year on which banks are not required or authorized to close in New York, New
York, and (b) with respect to a Eurodollar Portion, a day of the year on which
banks are not required or authorized to close in New York, New York, or London,
England.

     “Capital Expenditure” means any payment made directly or indirectly for
the purpose of acquiring or constructing fixed assets, real property,
improvements, equipment, or other personal property, or for replacements or
substitutions therefore or additions thereto, which in accordance with GAAP
would be capitalized in the fixed asset accounts of such Person making such
expenditure, including, without limitation, amounts paid or payable for such
purpose under any conditional sale or other title retention agreement or under
any Capital Lease, but excluding repairs or maintenance of any Hospitality
Property in the normal and ordinary course of business in keeping with the past
practices of the Borrower, IHC or the Parent.

     “Capital Lease” means, for any Person, any lease of any Property (whether
real, personal or mixed) by that Person as lessee which, in accordance with
GAAP, is or should be accounted for as a capital lease on the balance sheet of
that Person.

     “Capitalization Event” means any sale or issuance by the Parent or any of
its Subsidiaries of equity securities except for the issuance of the Borrower’s
limited partnership interests in accordance with the provisions of Section
6.05.

     “Capitalized Lease Obligations” means, as to any Person, the capitalized
amount of all obligations of such Person or any of its Subsidiaries under
Capitalized Leases, as determined on a consolidated basis in conformity with
GAAP.

     “CERCLA” means the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, all rules and regulations and requirements
thereunder in each case as now or hereafter in effect.

     “Change in Control” means for any Person a change in ownership or control
of such Person effected through either of the following transactions:

		
	 	     (a) any Person or related group of Persons (other than such Person
or an Affiliate of such Person) directly or indirectly acquires
beneficial ownership (within the meaning of Rule 13d-3 under the
Securities Exchange Act of 1934, as amended) of (i) securities possessing
more than fifty percent (50%) of the total combined voting power of such
Person’s outstanding securities, or (ii) with respect to the Parent or
the Borrower after the date which is January 31, 2003, securities
(excluding securities held by CGLH Partners I LP and CGLH Partners II LP
as of the Closing Date and any transferee of such securities) possessing
more than thirty five percent (35%) of the total combined voting power of
such Person’s outstanding securities; or

		
	 	     (b) excluding with respect to the Parent those changes to the
Parent’s Board of Directors that occur as part of the consummation of the
Merger, there is a change in the composition of such Person’s Board of
Directors over a period of thirty-six (36) consecutive months (or less)
such that a majority of Board members (rounded up to the

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	 	nearest whole number) ceases, by reason of one or more proxy
contests for the election of Board members, to be comprised of
individuals who either (i) have been Board members continuously since the
beginning of such period or (ii) have been elected or nominated for
election as Board members during such period by at least a majority of
the Board members described in clause (i) who were still in office at the
time such election or nomination was approved by the Board.

     “Closing Date” has the meaning given such term in the initial paragraph of
this agreement.

     “Code” means the Internal Revenue Code of 1986, as amended, and any
successor statute.

     “Collateral” has the meaning given such term in the Senior Credit
Facility.

     “Commitment” means, for each Lender, the amount set opposite such Lender’s
name on Schedule 1.01(a) as its Commitment, as the same may be reduced as a
result of prepayment of principal in accordance with the terms of this
Agreement.

     “Compliance Certificate” means a certificate of the Borrower in
substantially the form of the attached Exhibit D.

     “Consolidated” refers, with respect to any Person, to the consolidation of
the accounts of such Person with such Person’s Subsidiaries in accordance with
GAAP.

     “Control Percentage” means, with respect to any Person, the percentage of
the outstanding capital stock of such Person having ordinary voting power which
gives the direct or indirect holder of such stock the power to elect a majority
of the Board of Directors of such Person.

     “Controlled Group” means all members of the controlled group of
corporations and all trades (whether or not incorporated) under common control
which, together with the Borrower, are treated as a single employer under
Section 414 of the Code.

     “Credit Documents” means this Agreement, the Notes, the Guaranties, the
Fee Letter, the Administrative Agent Fee Letter, and each other agreement,
instrument or document executed by the Borrower or any of its Subsidiaries at
any time in connection with this Agreement.

     “Default” means (a) an Event of Default or (b) any event or condition
which with notice or lapse of time or both would, unless cured or waived,
become an Event of Default.

     “Defaulting Lender” means any Lender which has wrongfully refused or
failed to fund its portion of any unreimbursed payment under Section 9.05, or
notified in writing the Borrower or the Administrative Agent that such Lender
does not intend to comply with its obligations under this Agreement.

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     “Designated Redemption Indebtedness” means Indebtedness in the amount of
approximately $1,310,000 in the form of Mandatorily Redeemable Stock consisting
of 392,157 Preferred Units in the Borrower held by CapStar Management Company,
LLC which are redeemable at the option of the Unit holder pursuant to the
partnership agreement of Borrower on or after April 1, 2004 for, at the option
of the holder, cash in the amount of $3.34 per unit or the equivalent in common
stock of the Parent; provided that without the written consent of the Required
Lenders and the Senior Required Lenders the Parent and the Borrower will not
modify the documentation creating or evidencing the “Designated Redemption
Indebtedness” in any manner which would increase the amount of such
Indebtedness or accelerate the time at which such Person is obligated to repay
such Indebtedness.

     “Dollars” and “$” means lawful money of the United States of America.

     “Domestic Lending Office” means, with respect to any Lender, the office of
such Lender specified as its “Operations Contact” for Base Rate Portions in the
questionnaire such Lender provided to the Administrative Agent, or such other
office of such Lender as such Lender may from time to time specify to the
Borrower and the Administrative Agent.

     “EBITDA” means for any Person or Hospitality Property, as applicable, for
any period for which such amount is being determined, an amount equal to (a)
the Net Income for such Person or Hospitality Property, as applicable, for such
period plus (b) to the extent deducted in determining Net Income, Interest
Expense, income taxes, depreciation, and amortization, as determined on a
Consolidated basis in accordance with GAAP plus (c) to the extent deducted in
determining Net Income, deductions for minority interest attributable to the
Ownership Interests in the Borrower not owned (directly or indirectly) by the
Parent.

     “Effective Date” means the date all of the conditions precedent set forth
in Section 3.01 have been satisfied.

     “Eligible Assignee” means any of the following approved by those Persons
who have approval rights pursuant to the provisions of Section 10.06, which
approval will not be unreasonably withheld: (a) a commercial bank organized
under the laws of the United States, or any State thereof, and having primary
capital of not less than $250,000,000 (b) a commercial bank organized under the
laws of any other country which is a member of the Organization for Economic
Cooperation and Development and having primary capital (or its equivalent) of
not less than $250,000,000 (or its Dollar Equivalent), (c) an investment bank
organized under the laws of the United States, or any State thereof, and having
total assets in excess of $5,000,000,000, (d) an insurance company, finance
company or financial institution (whether a corporation, partnership, trust or
other Person) organized under the laws of the United States, or any state
thereof, and having total assets in excess of $5,000,000,000, (e) any Approved
Fund, (f) any “accredited investor” (as defined in Regulation D of the
Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder) which has total assets in excess of $100,000,000, (g) a Lender, and
(h) an Affiliate of the respective assigning Lender, without approval of any
Person except as set forth in Section 10.06, but otherwise meeting the
eligibility requirements of (a), (b), (c), (d), (e) or (f) above.

-7-

 

     “Environment” or “Environmental” shall have the respective meanings set
forth in 42 U.S.C. §9601(8), as amended.

     “Environmental Claim” means any third party (including governmental
agencies and employees) action, lawsuit, claim, demand, regulatory action or
proceeding, order, decree, consent agreement or notice of potential or actual
responsibility or violation (including claims or proceedings under the
Occupational Safety and Health Acts or similar laws or requirements relating to
health or safety of employees) which seeks to impose liability under any
Environmental Law.

     “Environmental Law” means all Legal Requirements arising from, relating
to, or in connection with the Environment, health, or safety, including without
limitation CERCLA, relating to (a) pollution, contamination, injury,
destruction, loss, protection, cleanup, reclamation or restoration of the air,
surface water, groundwater, land surface or subsurface strata, or other natural
resources; (b) solid, gaseous or liquid waste generation, treatment,
processing, recycling, reclamation, cleanup, storage, disposal or
transportation; (c) exposure to pollutants, contaminants, hazardous, medical,
infectious, or toxic substances, materials or wastes; (d) the safety or health
of employees; or (e) the manufacture, processing, handling, transportation,
distribution in commerce, use, storage or disposal of hazardous, medical,
infectious, or toxic substances, materials or wastes.

     “Environmental Permit” means any permit, license, order, approval or other
authorization under Environmental Law.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

     “Eurocurrency Liabilities” has the meaning assigned to that term in
Regulation D of the Federal Reserve Board (or any successor), as in effect from
time to time.

     “Eurodollar Lending Office” means, with respect to any Lender, the office
or offices of such Lender specified as its “Operations Contact” for each
Eurodollar Portion in the questionnaire such Lender provided to the
Administrative Agent, or such other office of such Lender as such Lender may
from time to time specify to the Borrower and the Administrative Agent for its
Eurodollar Portion.

     “Eurodollar Portion” shall mean the portion of the Loan made and/or being
maintained at a rate of interest calculated by reference to the Eurodollar
Rate. The entire Loan shall be a Eurodollar Portion unless one of the events
described in Section 2.12 has occurred.

     “Eurodollar Rate” means, for the Interest Period for a Eurodollar Rate
Portion, an interest rate per annum (rounded upward to the nearest whole
multiple of 1/16 of 1% per annum) equal to the rate per annum at which deposits
in Dollars are offered to prime banks in the London interbank market at 11:00
a.m. (London time) two Business Days before the first day of such Interest
Period as shown on the display designated “British Banker’s Association
Interest Settlement Rates” on Telerate at Page 3750 or Page 3740, or such other
page or pages as may replace such pages on Telerate for purposes of displaying
such rate, and for a period of one (1)

-8-

 

 month; provided, however, that if such rate is not available on Telerate
then such offered rate shall be otherwise independently determined by
Administrative Agent from an alternate, substantially similar source available
to Administrative Agent or shall be calculated by Administrative Agent by a
substantially similar methodology as that theretofore used to determine such
offered rate in Telerate.

     “Eurodollar Rate Reserve Percentage” shall mean, on any day, that
percentage (expressed as a decimal fraction) which is in effect on such date,
as provided by the Federal Reserve System for determining the maximum reserve
requirements generally applicable to financial institutions regulated by the
Federal Reserve Board comparable in size and type to the Administrative Agent
(including, without limitation, basic, supplemental, marginal and emergency
reserves) under Regulation D with respect to Eurocurrency Liabilities, or under
any similar or successor regulation with respect to Eurocurrency Liabilities
(or other category of liabilities which includes deposits by reference to which
the interest rate on a Eurodollar Portion is determined or any category or
extensions of credit which includes loans by a non-United States office of the
Administrative Agent to United States residents). Each determination by the
Administrative Agent of the Eurodollar Rate Reserve Percentage, shall, in the
absence of manifest error, be conclusive and binding upon the Borrower.

     “Event of Default” has the meaning set forth in Section 8.01.

     “Exchange Act” means the Securities Exchange Act of 1934,15 U.S.C., as
amended, and the rules and regulations promulgated thereunder.

     “Existing Management Agreements” means the management agreements listed on
Schedule 1.01(e).

     “Existing Owned Hospitality Property Investments” means the Owned
Hospitality Property Investments set forth on Schedule 1.01(d) and other Owned
Hospitality Property Investments in which the Borrower’s direct or indirect
ownership in such Owned Hospitality Property Investment is equal to or less
than twenty percent (20%) of the total ownership in such Owned Hospitality
Property Investment.

     “Existing Participating Leases” means the participating leases set forth
on Schedule 1.01(f).

     “Facility Amount” means $40,000,000.00.

     “Federal Funds Rate” means, for any period, a fluctuating interest rate
per annum equal for each day during such period to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published for such day
(or, if such day is not a Business Day, for the next preceding Business Day) by
the Federal Reserve Bank of New York, or, if such rate is not so published for
any day which is a Business Day, the average of the quotations for any such day
on such transactions received by the Administrative Agent from three Federal
funds brokers of recognized standing selected by it.

-9-

 

     “Federal Reserve Board” means the Board of Governors of the Federal
Reserve System or any of its successors.

     “Fee Letter” means the letter agreement dated as of January 10th, 2003,
among the Borrower, the Parent, and Lehman Brothers Inc.

     “FelCor” means FelCor Lodging Limited Partnership.

     “FF&E Reserve” means, for any Hospitality Property for any period, a
reserve equal to four percent (4%) of gross revenues from such Hospitality
Property for such period, excluding, however, from such calculation for such
Hospitality Property the gross revenues generated by the office, retail and
garage portions of such Hospitality Property.

     “Financial Statements” means the financial statements of Parent and its
Subsidiaries dated as of September 30, 2002.

     “Fiscal Quarter” means each of the three-month periods ending on March 31,
June 30, September 30 and December 31.

     “Fiscal Year” means the twelve-month period ending on December 31.

     “Fund,” “Trust Fund,” or “Superfund” means the Hazardous Substance
Response Trust Fund, established pursuant to 42 U.S.C. §9631 (1988) and the
Post-closure Liability Trust Fund, established pursuant to 42 U.S.C. §9641
(1988), which statutory provisions have been amended or repealed by the
Superfund Amendments and Reauthorization Act of 1986, and the “Fund,” “Trust
Fund,” or “Superfund” that are now maintained pursuant to 42 U.S.C. §9507.

     “GAAP” means United States generally accepted accounting principles as in
effect from time to time, applied on a basis consistent with the requirements
of Section 1.03.

     “Governmental Authority” means any foreign governmental authority, the
United States of America, any state of the United States of America and any
subdivision of any of the foregoing, and any agency, department, commission,
board, authority or instrumentality, bureau or court having jurisdiction over
any Lender, the Parent, the Borrower, any Subsidiaries of the Borrower or the
Parent or any of their respective Properties.

     “Governmental Proceedings” means any action or proceedings by or before
any Governmental Authority, including, without limitation, the promulgation,
enactment or entry of any Legal Requirement.

     “Ground Lease” means a lease by and between a Person, as lessor, and
Borrower or Borrower’s Subsidiary, as lessee, where the term of such lease is
in excess of twenty (20) years.

     “Guarantor” means each of the Parent, each Subsidiary of the Parent
(except the Permitted Other Subsidiaries, the Beverage Entities, Flagstone
Hospitality Management LLC, and certain other non-Material Subsidiaries which
are prohibited from acting as a Guarantor because of joint venture agreements,
organizational documents and other contractual

-10-

 

 arrangements to which such non-Material Subsidiary is a party and which
are in effect on the Closing Date, in each case as approved by the
Administrative Agent) existing as of the Closing Date, and any future Material
Subsidiary, and “Guarantors” means all of such Persons. The Guarantors on the
Closing Date are identified on Schedule 1.01(g).

     “Guaranty” means one or more Guaranty and Contribution Agreements in
substantially the form of the attached Exhibit F executed by the Guarantors,
evidencing the joint and several guaranty by the signatories thereto of the
obligations of Borrower in respect of the Credit Documents, and any future
guaranty and contribution agreement executed to secure the Obligations, as any
of such agreements may be amended hereafter in accordance with the terms of
such agreements.

     “Hazardous Substance” or “Hazardous Material” means the substances
identified as such pursuant to CERCLA and those regulated under any other
Environmental Law, including without limitation pollutants, contaminants,
petroleum, petroleum products, radio nuclides, radioactive materials, and
medical and infectious waste.

     “Hazardous Waste” means the substances regulated as such pursuant to any
Environmental Law.

     “Hospitality Management Business” shall mean the management, operation or
leasing as lessee of any Hospitality Property, including timeshare sales and
brokerage, and the operation of any Permitted Housing Business.

     “Hospitality Property” shall mean a full service or limited service hotel
or resort, a condominium or timeshare resort, an extended stay property, or a
conference center, and other facilities incidental to, or in support of such
property, including without limitation, restaurants and other food-service
facilities, golf facilities or other entertainment facilities or club,
conference or meeting facilities and intellectual property related thereto;
provided that such property shall not include any casino or other gaming
property (even if only a part of a Hospitality Property) or senior living
property.

     “Improvements” for any Owned Hospitality Property means all buildings,
structures, fixtures, tenant improvements and other improvements of every kind
and description now or hereafter located in or on or attached to the Land for
such Owned Hospitality Property; and all additions and betterments thereto and
all renewals, substitutions and replacements thereof.

     “Indebtedness” means (without duplication), at any time and with respect
to any Person, (a) indebtedness of such Person for borrowed money (whether by
loan or the issuance and sale of debt securities) or for the deferred purchase
price of property or services purchased (other than amounts constituting trade
payables or bank drafts arising in the ordinary course of business); (b)
indebtedness of others in the amount which such Person has directly or
indirectly assumed or guaranteed or otherwise provided credit support therefor
or for which such Person is liable as a partner of such Person; (c)
indebtedness of others in the amount secured by a Lien on assets of such
Person, whether or not such Person shall have assumed such indebtedness unless
the validity of such Lien is being contested in good faith and with due
diligence by appropriate

-11-

 

 proceedings, provided that such Lien is subordinate to the Liens created
by the Senior Security Documents and such Person shall have delivered a bond or
other security acceptable to the Senior Administrative Agent or, if the Senior
Credit Facility has been repaid in full and has been terminated, the
Administrative Agent, equal to 125% of the contested amount; (d) obligations of
such Person in respect of letters of credit, acceptance facilities, or drafts
or similar instruments issued or accepted by banks and other financial
institutions for the account of such Person (other than trade payables or bank
drafts arising in the ordinary course); (e) obligations of such Person under
Capital Leases; (f) all obligations, contingent or otherwise, of such Person
under any synthetic lease, tax retention operating lease, off balance sheet
loan or similar off balance sheet financing arrangement if the transaction
giving rise to such obligation (1) is considered indebtedness for borrowed
money for U.S. federal income tax purposes but is classified as an operating
lease under GAAP and (2) does not (and is not required pursuant to GAAP to)
appear as a liability on the balance sheet of such Person; (g) all obligations
of such Person to purchase, redeem, retire, defease or otherwise make any
payment in respect of any Mandatorily Redeemable Stock issued by such Person or
any other Person, valued at the greater of its voluntary or involuntary
liquidation preference plus accrued and unpaid dividends; (h) all obligations
of such Person in respect of any take-out commitment or forward equity
commitment (excluding, in the case of the Borrower and its Subsidiaries, any
such obligation that can be satisfied solely by the issuance of Ownership
Interests (other than Mandatorily Redeemable Stock)); and (i) to the extent
treated as a liability under GAAP, obligations under interest rate swap
agreements, interest rate cap agreements, interest rate collar agreements or
other similar agreements or arrangements designed to protect against
fluctuations in interest rates; provided that “Indebtedness” shall not include
(i) any Indebtedness related to the Parent’s or the Parent’s Subsidiary’s
Investment with respect to the St. Louis Radisson Hotel which is non-recourse
to the Parent, the Borrower and their respective Subsidiaries except for the
Ownership Interests in the Unconsolidated Entity which owns such hotel and (ii)
any Designated Redemption Indebtedness.

     “Insurance Annual Statement” means the annual statutory financial
statements of each Insurance Company required to be filed with the insurance
commissioner (or similar Governmental Authority) of its jurisdiction of
incorporation, which statement shall be in the form required by the
jurisdiction of incorporation of such Insurance Company or, if no specific form
is so required, in the form of financial statements permitted by such insurance
commissioner (or such similar Governmental Authority) to be used for filing
annual statutory financial statements and shall contain the type of information
permitted by such insurance commissioner (or such similar Governmental
Authority) to be disclosed therein, together with all exhibits or schedules
filed therewith.

     “Insurance Contract” means each outstanding insurance contract of each
Insurance Company.

     “Insurance Company” means each of the Borrower, the Parent or their
respective Subsidiaries that is or acts as an insurance company or provides a
guaranty for a Person acting as an insurance company.

-12-

 

     “Insurance License” means any license, certificate of authority, permit or
other authorization which is required to be obtained from any Governmental
Authority in connection with the operation, ownership or transaction of
insurance business.

     “Insurance Reserve Liabilities” means all reserves and other liabilities
with respect to insurance and for claims and benefits incurred but not
reported.

     “Insurance Surplus” means an estimate of the amount by which an insurance
plan’s assets exceed its expected current and future liabilities, including the
amount expected to be needed to fund future benefit payments.

     “Intercompany Agreement” means the Intercompany Agreement dated as of
August 3, 1998, by and among the Parent, the Borrower, MHC, and MHC OP, as
amended by Amendment to Intercompany Agreement dated as of January 1, 2001, and
as may be further amended in accordance with the provisions of this Agreement.

     “Intercompany Indebtedness Subordination Agreement” shall mean that
certain Subordination Agreement dated the date hereof between IHC Holdings Inc.
and Administrative Agent on behalf of the Lenders with respect to the Approved
Inter Company Indebtedness, as such agreement may be amended, modified,
supplemented or restated from time to time.

     “Intercreditor Agreement” means that Intercreditor Agreement dated as of
the Closing Date between the Senior Administrative Agent for the benefit of the
Senior Lenders under the Senior Credit Facility and the Administrative Agent
for the benefit of the Lenders, as the same may be modified or amended from
time to time.

     “Interest Coverage Ratio” means, as of the end of any Rolling Period, a
ratio of (a) the Parent’s Adjusted EBITDA to (b) the Parent’s Interest Expense,
for such Rolling Period.

     “Interest Expense” means, for any Person for any period for which such
amount is being determined, the total interest expense (including that properly
attributable to Capital Leases in accordance with GAAP) and all charges
incurred with respect to letters of credit determined on a Consolidated basis
in conformity with GAAP, plus capitalized interest of such Person and its
Subsidiaries, minus, for such periods for which all or a portion of such period
occurred prior to the date of the Merger, all interest income earned for such
period by such Person and its Subsidiaries prior to the date of the Merger
determined on a Consolidated basis in conformity with GAAP.

     “Interest Period” shall mean a one month period, provided that:

		
	 	     (i) the first Interest Period shall commence on the Closing
Date and end on February 1, 2003;

		
	 	     (ii) the second Interest Period shall commence on February 1,
2003 and each Interest Period occurring thereafter shall commence
on the date on which the next preceding Interest Period expires;

-13-

 

		
	 	     (iii) each Interest Period shall expire on the first calendar
day of the immediately succeeding calendar month;

		
	 	     (iv) no Interest Period shall extend beyond the Maturity Date;
and

		
	 	     (v) Interest shall accrue from and including the first day of
an Interest Period to but excluding the last day of such Interest
Period.

     “Interest Rate Agreements” means any interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement or other similar
agreement or arrangement pertaining to the fluctuations in interest rates.

     “Investment” means, with respect to any Person, (a) any loan or advance to
any other Person, (b) the ownership, purchase or other acquisition of any
Ownership Interests or Ownership Interest Equivalents in any other Person, (c)
any joint venture or partnership with, or any capital contribution to, or other
investment in, any other Person, (d) any Capital Expenditure, and (e) any
payment, whether capitalized or not, to acquire a management agreement or lease
(including, without limitation, any Permitted Property Agreement or Permitted
Housing Agreement).

     “Investment Amount” means (a) for any Owned Hospitality Property the sum
of (i) the aggregate purchase price paid by the Borrower or its Subsidiary for
such Owned Hospitality Property, and (ii) the actual cost of any Capital
Expenditures for such Owned Hospitality Property made by the Borrower or its
Subsidiaries after the acquisition of such Owned Hospitality Property, and (b)
for any other Investment or Property the aggregate purchase price paid by the
Borrower or its Subsidiary for such other Investment or Property. The
Investment Amount shall include any Ownership Interests or Ownership Interest
Equivalents used to purchase such Investment at their fair market value at the
time of purchase; provided that any such Ownership Interests or Ownership
Interest Equivalents which are convertible into the Parent’s common stock shall
be valued at the price at which they could be exchanged into the Parent’s
common stock assuming such exchange occurred on the date of acquiring such
Investment.

     “Land” for any Owned Hospitality Property means the real property upon
which the Owned Hospitality Property is located, together with all rights,
title and interests appurtenant to such real property, including without
limitation all rights, title and interests to (a) all strips and gores within
or adjoining such property, (b) the streets, roads, sidewalks, alleys, and ways
adjacent thereto, (c) all of the tenements, hereditaments, easements,
reciprocal easement agreements, rights-of-way and other rights, privileges and
appurtenances thereunto belonging or in any way pertaining thereto, (d) all
reversions and remainders, (e) all air space rights, and all water, sewer and
wastewater rights, (e) all mineral, oil, gas, hydrocarbon substances and other
rights to produce or share in the production of anything related to such
property, and (f) all other appurtenances appurtenant to such property,
including without limitation, any now or hereafter belonging or in anywise
appertaining thereto.

-14-

 

     “Legal Requirement” means any law, statute, ordinance, decree,
requirement, order, judgment, rule, regulation (or official interpretation of
any of the foregoing) of, and the terms of any license or permit issued by, any
Governmental Authority.

     “Lenders” means the lenders listed on Schedule 1.01(a) and each Eligible
Assignee that shall become a party to this Agreement pursuant to Section 10.06,
and “Lender” means any such Person.

     “Leverage Ratio” means the ratio on any date of (a) the Parent’s Total
Indebtedness on such date to (b) the Parent’s Adjusted EBITDA for the Rolling
Period immediately preceding such date.

     “Lien” means any mortgage, deed of trust, lien, pledge, charge, security
interest, encumbrance or other type of preferential arrangement to secure or
provide for the payment of any obligation of any Person, whether arising by
contract, operation of law or otherwise (including, without limitation, the
interest of a vendor or lessor under any conditional sale agreement, Capital
Lease or other title retention agreement).

     “Liquid Investments” means:

		
	 	     (a) direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States;

		
	 	     (b) (i) negotiable or nonnegotiable certificates of deposit, time
deposits, or other similar banking arrangements maturing within 180 days
from the date of acquisition thereof (“bank debt securities”), issued by
(A) any Senior Lender with a Senior Revolving Commitment under the Senior
Credit Facility or (B) any other bank or trust company which has a
combined capital surplus and undivided profit of not less than
$250,000,000 or the Dollar Equivalent thereof, if at the time of deposit
or purchase, such bank debt securities are rated not less than “A” (or
the then equivalent) by the rating service of S&P or of Moody’s, and (ii)
commercial paper issued by (A) any Senior Lender with a Senior Revolving
Commitment under the Senior Credit Facility or (B) any other Person if at
the time of purchase such commercial paper is rated not less than “A-2”
(or the then equivalent) by the rating service of S&P or not less than
“P-2” (or the then equivalent) by the rating service of Moody’s, or upon
the discontinuance of both of such services, such other nationally
recognized rating service or services, as the case may be, as shall be
selected by the Borrower with the consent of the Senior Administrative
Agent, or, if the Senior Credit Facility has been repaid in full and has
been terminated, the Administrative Agent,

		
	 	     (c) repurchase agreements relating to investments described in
clauses (a) and (b) above with a market value at least equal to the
consideration paid in connection therewith, with any Person who regularly
engages in the business of entering into repurchase agreements and has a
combined capital surplus and undivided profit of not less than
$250,000,000 or the Dollar Equivalent thereof, if at the time of entering
into

-15-

 

		
	 	such agreement the debt securities of such Person are rated not less
than “A” (or the then equivalent) by the rating service of S&P or of
Moody’s; and

		
	 	     (d) such other instruments (within the meaning of New York’s Uniform
Commercial Code) as the Borrower may request and the Senior
Administrative Agent or, if the Senior Credit Facility has been repaid in
full and has been terminated, the Administrative Agent, may approve in
writing, which approval will not be unreasonably withheld.

     “Loan” means the aggregate Advance made to the Borrower pursuant to
this Agreement.

     “Loan Amount” means, at any given time, the outstanding principal
balance of the Loan.

     “Loan Portion” shall mean the Base Rate Portion and the Eurodollar
Portion of the Loan.

     “Mandatorily Redeemable Stock” means, with respect to any Person, any
Ownership Interest of such Person which by the terms of such Ownership Interest
(or by the terms of any security into which it is convertible or for which it
is exchangeable or exercisable), upon the happening of any event or otherwise
(a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation
or otherwise (other than an Ownership Interest which is redeemable solely in
exchange for common stock or Ownership Interests Equivalent thereof), (b) is
convertible into or exchangeable or exercisable for Indebtedness or Mandatorily
Redeemable Stock, or (c) is redeemable at the option of the holder thereof, in
whole or in part (other than an Ownership Interest which is redeemable solely
in exchange for common stock or Ownership Interests Equivalent thereof), in
each case on or prior to the Maturity Date, as such date may be extended
pursuant to the terms of Section 2.05(b).

     “Margin Stock” shall have the meaning provided in Regulation U.

     “Material Adverse Change” shall mean a material adverse change (a) in the
business, property, condition (financial or otherwise), prospects or results of
operations of the Borrower, the Parent and the other Guarantors taken as a
whole, in each case since September 30, 2002, or (b) in the validity or
enforceability of this Agreement or any of the other Credit Documents or the
rights or remedies of the Administrative Agent or the Lenders hereunder or
thereunder.

     “Material Subsidiary” means any Subsidiary of the Parent having assets or
annual revenues in excess of $1,000,000.

     “Material Unconsolidated Entity” means any Unconsolidated Entity of the
Parent for which the Investment Amount is in excess of $1,000,000.

     “Maturity Date” means January 31, 2006, as the same shall be extended
pursuant to Section 2.05.

-16-

 

     “Maximum Rate” means the maximum nonusurious interest rate under
applicable law.

     “MHC” means MeriStar Hospitality Corporation, a Maryland corporation.

     “MHC Indebtedness” means the Subordinate Indebtedness owed by the Borrower
and the Borrower’s Subsidiaries to MHC OP pursuant to that certain Revolving
Credit Agreement dated as of August 3, 1998, as amended by an amendment dated
as of February 27, 2000, a second amendment dated as of January      , 2002, a
third amendment dated as of July 31, 2002, and a fourth amendment dated as of
August 15, 2002, each between Borrower and MHC OP.

     “MHC OP” means MeriStar Hospitality Operating Partnership, L.P., a
Delaware limited partnership.

     “MHRI” means MeriStar Hotels & Resorts, Inc., a Delaware corporation prior
to the Merger with IHC.

     “Minimum Net Worth” means, with respect to the Parent, at any time, the
sum of $75,000,000 plus (a) 75% of the aggregate net proceeds or value received
by the Parent or any of its Subsidiaries after the date of this Agreement in
connection with any Capitalization Events taken as a whole, including without
limitation in connection with the acquisition of any Investment or other
Property, plus (b) to the extent a positive number, 75% of the aggregate Net
Income of the Parent and the Parent’s Subsidiaries for the period from and
including July 1, 2002 to the date of testing, on a Consolidated basis, minus
(c) an amount equal to the lesser of (i) $25,000,000 or (ii) the sum of (A) the
Parent’s write-off under GAAP of the Parent’s or the Parent’s Subsidiary’s
Investment with respect to the St. Louis Radisson Hotel up to a maximum
write-off of $11,500,000 and (B) the aggregate amount of all of the Parent’s
write-offs under GAAP of intangible assets that occur after March 31, 2002.

     “Moody’s” means Moody’s Investor Service Inc.

     “Multiemployer Plan” means a “multiemployer plan” as defined in Section
4001(a)(3) of ERISA to which the Parent, the Borrower or any member of the
Controlled Group is making or accruing an obligation to make contributions.

     “Net Cash Proceeds” means (a) the aggregate cash proceeds (including,
without limitation, insurance proceeds) received by the Parent, the Borrower or
any of their respective Subsidiaries (as applicable) in connection with any
Indebtedness incurred on or after the Closing Date (excluding the Obligations
and the incurrence of other Indebtedness which does not trigger a Repayment
Event), Asset Disposition or Capitalization Event, minus (b) the reasonable
expenses of such Person in connection with such Indebtedness incurrence, Asset
Disposition or Capitalization Event, minus (c) to the extent that assets
disposed of in connection with an Asset Disposition secure Indebtedness
permitted pursuant to the provisions of Section 6.02(a), the amount of such
Indebtedness which is required to be repaid pursuant to the terms of such
Indebtedness in connection with such Asset Disposition, as reasonably evidenced
by the Borrower to the Senior Administrative Agent and the Administrative Agent
minus (d) any amounts required to be paid under the Senior Credit Facility.

-17-

 

     “Net Income” means, for any Person or Hospitality Property, as applicable,
for any period for which such amount is being determined, the net income or net
loss of such Person (on a Consolidated basis) or Hospitality Property, as
applicable, after taxes, as determined on a Consolidated basis in accordance
with GAAP, excluding, however, (a) non-recurring expenses incurred in
connection with the Merger and (b) extraordinary items, including but not
limited to (i) any net gain or loss during such period arising from the sale,
exchange, or other disposition of capital assets (such term to include all
fixed assets and all securities) other than in the ordinary course of business,
and (ii) any write-up or write-down of assets.

     “Net Worth” means, for any Person, stockholders equity of such Person
determined in accordance with GAAP.

     “Non-Defaulting Lender” shall mean and include each Lender other than a
Defaulting Lender.

     “Non-Replaced Property” means any Property owned by the Borrower or any of
the Guarantors which (a) was used in the ownership, operation or management of
any Hospitality Property, (b) has been conveyed, exchanged, transferred, or
assigned by the Borrower or a Guarantor to a Person other than the Borrower or
a Guarantor, (c) has not been replaced in the ordinary course of business by
Property of equal or better quality, and (d) was not included within the
definition of “Investments”.

     “Note” means a promissory note of the Borrower payable to the order of any
Lender in substantially the form of the attached Exhibit A, evidencing
indebtedness of the Borrower to such Lender, and “Notes” means all such Notes.

     “Obligations” means all payment, performance and other obligations,
liabilities and indebtedness of every nature of Borrower and the Guarantors
from time to time owing to Administrative Agent or any Lender in connection
with this Agreement, the Note, or any other Credit Documents.

     “Owned Hospitality Property” means a Hospitality Property owned by the
Parent or one of the Parent’s Subsidiaries or leased by the Parent or one of
the Parent’s Subsidiaries pursuant to a Ground Lease.

     “Owned Hospitality Property Investments” shall mean Investments in Owned
Hospitality Properties or in Persons for which Hospitality Properties are
substantially all of such Person’s Property.

     “Ownership Interests” means shares of stock, other securities, partnership
interests, member interests, beneficial interests or other interests in any
Person, whether voting or non-voting, and participations or other equivalents
(regardless of how designated) of or in a Person.

     “Ownership Interest Equivalents” means all securities (other than
Ownership Interests) convertible into or exchangeable for Ownership Interests
and all warrants, options or other rights to purchase or subscribe for any
Ownership Interests, whether or not presently convertible, exchangeable or
exercisable.

-18-

 

     “Parent” means Interstate Hotels & Resorts, Inc. (fka MeriStar Hotels &
Resorts, Inc.), a Delaware corporation, the surviving entity of the merger of
Interstate Hotels and Resorts, Inc., into MHRI pursuant to the Merger.

     “PBGC” means the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.

     “Permitted Asset Disposition” means an Asset Disposition which (a) occurs
at a time in which no Default has occurred and is continuing, and (b) would not
cause a Default to occur upon the consummation of such Asset Disposition.

     “Permitted Encumbrances” means the Liens permitted to exist pursuant to
Section 6.01.

     “Permitted Hazardous Substances” means (a) Hazardous Substances, petroleum
and petroleum products which are (i) used in the ordinary course of business
and in typical quantities for a Hospitality Property and (ii) generated, used
and disposed of in accordance with all Legal Requirements and good industry
practice, and (b) non-friable asbestos to the extent (i) that no applicable
Legal Requirements require removal of such asbestos from the Hospitality
Property and (ii) such asbestos is encapsulated in accordance with all
applicable Legal Requirements and such reasonable operations and maintenance
program as may be required by the Senior Administrative Agent or, if the Senior
Credit Facility has been repaid in full and has been terminated, the
Administrative Agent.

     “Permitted Housing Agreements” means leases of Units as part of the
Permitted Housing Business (a) by the Borrower and its Subsidiaries to third
parties and (b) by third parties to the Borrower and its Subsidiaries.

     “Permitted Housing Business” means the business of leasing Units,
subleasing such Units to another Person and providing ancillary services to
such Person in connection with such Units; provided that without the written
consent of the Senior Required Lenders or, if the Senior Credit Facility has
been repaid in full and has been terminated, the Administrative Agent, the
Borrower and the Borrower’s Subsidiaries shall not enter into new leases of
Units or extend the term of existing leases of Units where the leases cause
the Borrower to violate any of the Permitted Housing Business Leasing
Guidelines.

     “Permitted Housing Business Leasing Guidelines” means the requirement that
the Borrower and the Borrower’s Subsidiaries not lease Units or renew the lease
of Units if, upon consummation of such lease or renewal, (a) the aggregate
number of Units which have a term which exceeds 1 year is equal to or greater
than 700, (b) the aggregate number of Units which have a term which exceeds 5
years is equal to or greater than 400, and (c) the Borrower’s and the
Borrower’s Subsidiaries’ aggregate lease obligations for the leases of Units
outside the United States, Canada and Western Europe exceeds 15% of the
Borrower’s and the Borrower’s Subsidiaries’ aggregate lease obligations for
Units without the consent of the Senior Required Lenders or, if the Senior
Credit Facility has been repaid in full and has been terminated, the
Administrative Agent.

-19-

 

     “Permitted Housing Company” means a Person which is primarily in the
Permitted Housing Business and which is approved by the Senior Required Lenders
or, if the Senior Credit Facility has been repaid in full and has been
terminated, the Administrative Agent.

     “Permitted New Investments” means the following Investments made after the
Closing Date:

		
	 	     (a) (i) to acquire Permitted Property Agreements and (ii) in Persons
for which Permitted Property Agreements are substantially all of such
Person’s Property, which Persons become Subsidiaries of the Borrower;

		
	 	     (b) (i) in Persons for which Permitted Property Agreements are
substantially all of such Person’s Property, which Persons do not become
Subsidiaries of the Borrower, (ii) to acquire Permitted Housing
Agreements, and (iii) in Persons which are primarily in the Permitted
Housing Business; provided that the aggregate amount of such Investments,
excluding any such Investments existing as of the Effective Date, shall
not exceed $15,000,000;

		
	 	     (c) in Owned Hospitality Property Investments; provided that (i) the
aggregate Investment Amount in Owned Hospitality Property Investments,
excluding the Investment Amount in Existing Owned Hospitality Property
Investments, shall not at any time exceed $50,000,000, (ii) at least five
(5) Business Days prior to acquiring an Owned Hospitality Property the
Borrower shall have delivered to the Senior Administrative Agent or, if
the Senior Credit Facility has been repaid in full and has been
terminated, the Administrative Agent, the Property Information for such
Owned Hospitality Property (except that for the Pittsburgh Property the
Borrower need only provide (A) current Property Information for those
items set forth in paragraphs (b), (c), (e) and (g) of the definition of
“Property Information” and (B) the most recent, but not current Property
Information for those items set forth in paragraphs (a), (d), and (f) of
the definition of “Property Information”), (iii) any Ground Lease for an
Owned Hospitality Property must be financable in the reasonable opinion
of the Senior Administrative Agent or, if the Senior Credit Facility has
been repaid in full and has been terminated, the Administrative Agent,
and (iv) no more than twenty percent (20%) of the hotel rooms in the
applicable Hospitality Property may be subject to a timeshare regime;

		
	 	     (d) Investments in Persons who provide services to, among other
Hospitality Properties, Hospitality Properties for which Borrower or one
of Borrower’s Subsidiaries has or will enter into a Permitted Property
Agreement and/or Owned Hospitality Property Investments; provided that
the aggregate amount of all such Investments in Persons which provide
such services shall not exceed $10,000,000; and

		
	 	     (e) Investments which (i) are not otherwise covered by one of the
preceding clauses (a)-(d) and (ii) are in Persons whose primary business
is not the Hospitality Management Business; provided that the aggregate
amount of the Investments in such Persons shall not exceed $5,000,000.

-20-

 

For purposes of this definition, if in connection with the acquisition of
Permitted Property Agreements an Owned Hospitality Property Investment is also
made or acquired and the Borrower’s direct or indirect ownership in such Owned
Hospitality Property Investment exceeds twenty percent (20%) of the total
ownership in such Owned Hospitality Property Investment, then a reasonable
portion of the Investment Amount for such Investment shall be attributed to
such Owned Hospitality Property Investment and counted toward the $50,000,000
limitation set forth in the foregoing clause (c). If such ownership percentage
is equal to or less than twenty percent (20%), then such Investment shall be
deemed to have been made under the foregoing clause (a) or (b), as applicable.
Notwithstanding anything in this definition to the contrary, Permitted New
Investments shall not include any Capital Expenditures made pursuant to the
provisions of Section 6.06(e) or Restricted Payments. Notwithstanding anything
in this Agreement to the contrary, (a) the Borrower shall have until the date
thirty (30) days following the Closing Date to deliver the Environmental Report
for the Pittsburgh Property, and (b) if such Environmental Report discloses any
material Release, Environmental Claim, or violation of Environmental Law, then
the Borrower shall cause such Release, Environmental Claim, or violation of
Environmental Law to be remediated in accordance with the provisions of the
Environmental Indemnity within thirty (30) days of delivery of such
Environmental Report.

     “Permitted Non-Recourse Unconsolidated Entity Indebtedness” means
Indebtedness of an Unconsolidated Entity which (i) is incurred by an
Unconsolidated Entity to acquire a Hospitality Property or Hospitality
Management Business or refinance such acquisition Indebtedness, and (ii) is
non-recourse to the Parent, the Borrower and their respective Subsidiaries
except for the Interests in such Unconsolidated Entity.

     “Permitted Other Indebtedness” means:

		
	 	     (a) the Senior Credit Facility;

		
	 	     (b) Indebtedness which (i) is incurred by a Permitted Other
Subsidiary to (A) acquire an Owned Hospitality Property Investment which
qualifies as a Permitted New Investment, (B) refinance Indebtedness
(including Permitted Owned Hospitality Property Obligations) incurred to
acquire a Permitted New Investment, or (C) finance the Pittsburgh
Property, where the Indebtedness incurred does not exceed 70% of the
Investment Amount for such Permitted New Investment or Pittsburgh
Property, as applicable, and (ii) is non-recourse to the Parent, the
Borrower and their respective subsidiaries except for the Property of or
the Ownership Interests in such Permitted Other Subsidiary and customary
recourse “carve-outs”;

		
	 	     (c) Additional Designated Senior Indebtedness;

		
	 	     (d) Intentionally Deleted;

		
	 	     (e) Indebtedness of Interstate/Dallas GP, LLC and Interstate/Dallas
Partnership, LP (the “Dallas Pledgors”) to FelCor in the amount of
approximately $4,170,000, secured by the interests of the Dallas Pledgors
in FCH/IHC Hotels, LP.;

		
	 	     (f) Permitted Non-Recourse Unconsolidated Entity Indebtedness;

-21-

 

		
	 	     (g) Approved Inter-Company Indebtedness; and

		
	 	     (h) minority Ownership Interests reflected on the Parent’s financial
statements as Indebtedness.

     “Permitted Other Subsidiary” means a Subsidiary of the Parent which (a) is
a single-purpose Person, (b) has never been a Guarantor under the Senior Credit
Facility or a Guarantor, nor owned any Collateral, and (c) only owns Permitted
New Investments acquired in whole or in part with the proceeds of Indebtedness
excluding the proceeds of the Senior Credit Facility and other Property
ancillary to such Permitted New Investments.

     “Permitted Owned Hospitality Property Obligations” means Senior
Obligations incurred in making an Investment in an Owned Hospitality Property
or the Ownership Interests in a Subsidiary which owns an Owned Hospitality
Property which pursuant to the terms of this Agreement is required to be
Collateral under the Senior Credit Facility; provided that with respect to the
Pittsburgh Property the “Permitted Owned Hospitality Property Obligations”
shall be deemed to be the greater of (a) $5,000,000 and (b) the Net Cash
Proceeds from the incurrence of the Permitted Other Indebtedness to be secured
by the Pittsburgh Property.

     “Permitted Property Agreements” means (a) Existing Management Agreements
and Existing Participating Leases and (b) Approved Management Agreements or
Approved Participating Leases related to Hospitality Properties entered into
after the Closing Date.

     “Person” means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association,
limited liability company, joint venture or other entity, or a government or
any political subdivision or agency thereof or any trustee, receiver, custodian
or similar official.

     “Pittsburgh Property” means the Pittsburgh, Pennsylvania Airport Residence
Inn (Park Lane).

     “Plan” means an employee benefit plan (other than a Multiemployer Plan)
maintained for employees of the Parent, the Borrower or any member of the
Controlled Group and covered by Title IV of ERISA or subject to the minimum
funding standards under Section 412 of the Code.

     “Prescribed Forms” means such duly executed form(s) or statement(s), and
in such number of copies, which may, from time to time, be prescribed by law
and which, pursuant to applicable provisions of (a) an income tax treaty
between the United States and the country of residence of the Lender providing
the form(s) or statement(s), (b) the Code, or (c) any applicable rule or
regulation under the Code, permit the Borrower to make payments hereunder for
the account of such Lender free of (or, upon written request of the Borrower
specifying the applicable form, at a reduced rate of) deduction or withholding
of income or similar taxes (except for any deduction or withholding of income
or similar taxes as a result of any change in or in the interpretation of any
such treaty, the Code or any such rule or regulation).

-22-

 

     “Property” of any Person means any property or assets (whether real,
personal, or mixed, tangible or intangible) of such Person, including without
limitation, the Permitted Property Agreements, the Permitted Housing
Agreements, and all Owned Hospitality Properties.

     “Pro Rata Share” means, at any time with respect to any Lender, the ratio
(expressed as a percentage) of (a) such Lender’s outstanding Commitment to (b)
the outstanding Loan Amount.

     “Register” has the meaning set forth in paragraph (c) of Section 10.06.

     “Regulation U” shall mean Regulation U of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor to all
or a portion thereof. “Reinsurance Contract” means each outstanding
reinsurance, coinsurance and other similar contract of each Insurance Company.

     “Related Fund” means, with respect to any Approved Fund, any other
Approved Fund that invests in commercial loans which is advised or managed by
the same investment advisor as such Approved Fund.

     “Release” shall have the meaning set forth in CERCLA or under any other
Environmental Law.

     “Repayment Event” means the incurrence of any Indebtedness on or after the
Closing Date by the Parent, the Borrower or one of their respective
Subsidiaries (excluding (a) the Obligations, (b) Indebtedness incurred under
clause (a) or clause (b) of the definition of “Permitted Other Indebtedness”
which is not incurred to refinance Permitted Owned Hospitality Property
Obligations), a Capitalization Event, or an Asset Disposition or the payment to
the Borrower or one of the Borrower’s Subsidiaries of a termination payment
under a Permitted Property Agreement or a Permitted Housing Agreement after the
Closing Date, except for Asset Dispositions or any such termination payments
for which the aggregate Net Cash Proceeds do not exceed $1,000,000 in any
calendar year.

     “Reportable Event” means any of the events set forth in Section 4043(b) of
ERISA.

     “Required Lenders” means Non-Defaulting Lenders the sum of whose
outstanding Commitments represent at least 51% of the outstanding Loan Amount.

     “Response” shall have the meaning set forth in CERCLA or under any other
Environmental Law.

     “Responsible Officer” means the Chief Executive Officer, President,
Executive Vice President, Chief Financial Officer or Treasurer of any Person,
or, with respect to a partnership, the general partner of such Person.

     “Restricted Payment” means (a) any direct or indirect payment, prepayment,
redemption, purchase, or deposit of funds or Property for the payment
(including any sinking fund or defeasance), prepayment, redemption or purchase
of any Indebtedness not permitted by this Agreement, the Senior Credit Facility
or any Subordinate Indebtedness, and (b) the making by

-23-

 

 any Person of any dividends or other distributions (in cash, property, or
otherwise) on, or payment for the purchase, redemption or other acquisition of,
any Ownership Interests of such Person, other than dividends or distributions
payable in such Person’s Ownership Interests.

     “Rolling Period” means, as of any date, the four Fiscal Quarters ending
immediately preceding such date.

     “S&P” means Standard & Poor’s Ratings Group, a division of McGraw-Hill,
Inc., or any successor thereof.

     “SAP” means, with respect to each Insurance Company, the statutory
accounting practices prescribed or permitted by the insurance commissioner (or
other similar Governmental Authority) in the jurisdiction of such Insurance
Company for the preparation of Insurance Annual Statements and other financial
reports by insurance companies of the same type in effect from time to time,
applied in a manner consistent with those used in preparing the SAP Financial
Statements.

     “Second Amendment to the Senior Credit Facility” means that certain Second
Amendment to Senior Secured Credit Agreement dated as of January 10, 2003
between Borrower, the Senior Administrative Agent and the Senior Lenders.

     “SAP Financial Statements” means the audited annual and unaudited
quarterly convention statements filed with the domiciliary state insurance
departments of each Insurance Company.

     “Senior Administrative Agent” means the Administrative Agent as defined in
the Senior Credit Facility.

     “Senior Commitment” means the Commitment as defined in the Senior Credit
Facility.

     “Senior Credit Facility” mean that certain Senior Secured Credit Agreement
dated as of July 31, 2002, in the maximum amount of $113,000,000.00, as amended
by that certain First Amendment to Senior Secured Credit Agreement dated as of
August 15, 2002, among Meristar H & R Operating Company, L.P. as the Borrower,
Société Générale as Administrative Agent, SG Cowen Securities Corporation as
Joint Lead Arranger and Book Runner, Salomon Smith Barney Inc. as Joint Lead
Arranger, Book Runner, and Co-Syndication Agent, Lehman Brothers, Inc. as Joint
Lead Arranger, Book Runner, and Co-Syndication Agent, Credit Lyonnais New York
Branch as Documentation Agent, and various other lenders, and as further
amended by the Second Amendment to Senior Credit Facility, as the same may be
further amended, modified, supplemented, restated, replaced or refinanced from
time to time.

     “Senior Indebtedness” means Total Indebtedness minus the sum of (a)
Subordinate Indebtedness and (b) the outstanding principal balance of this
Agreement.

     “Senior Interest Coverage Ratio” means, as of the end of any Rolling
Period, a ratio of (a) the Parent’s Adjusted EBITDA to (b) the Parent’s
Interest Expense pertaining to Senior Indebtedness, for such Rolling Period.

-24-

 

     “Senior Leverage Ratio” means the ratio on any date of (a) the Parent’s
Senior Indebtedness on such date to (b) the Parent’s Adjusted EBITDA for the
Rolling Period immediately preceding such date.

     “Senior Lenders” mean the Lenders as defined in the Senior Credit
Facility.

     “Senior Obligations” means the Obligations as defined in the Senior Credit
Facility.

     “Senior Security Documents” means the Security Documents as defined in the
Senior Credit Facility.

     “Senior Required Lenders” means the Required Lenders as defined in the
Senior Credit Facility.

     “Senior Revolving Maturity Date” means the Revolving Maturity Date as
defined in the Senior Credit Facility.

     “SG Cowen “ means SG Cowen Securities Corporation.

     “Specified Acquirer” means the Person listed on Schedule 1.01(i).

     “Specified Change of Control Event” means that Specified Acquirer or a
Subsidiary or parent of Specified Acquirer either (a) directly or indirectly
acquires beneficial ownership (within the meaning of Rule 13d-3 under the
Securities Exchange Act of 1934, as amended) of securities possessing more than
fifty percent (50%) of the total combined voting power of MHC’s outstanding
securities or (b) otherwise merges with MHC.

     “SSB” means Salomon Smith Barney Inc.

     “Status Reset Date” means the date following the end of any Fiscal Quarter
which is the earlier of (a) the 50th day following the end of such Fiscal
Quarter and (b) the date which is 5 days following the delivery of the reports
and other documents required by (i) the provisions of Section 5.05(a) for such
Fiscal Quarter (except for the Fiscal Quarter which ends on the date the Fiscal
Year ends) or (ii) the provisions of Section 5.05(b) for the Fiscal Quarter
which ends on the date the Fiscal Year ends; provided that the documents
contemplated by the preceding clause (ii) shall never be deemed delivered prior
to the 40th day following the end of the Fiscal Year.

     “Subordinate Indebtedness” means Indebtedness of the Borrower, the Parent
and their respective Subsidiaries which (a) shall not mature, become payable or
require the payment of any principal amount thereof (or any amount in lieu
thereof) or be mandatorily redeemable, pursuant to a sinking fund or otherwise
redeemable at the option of the holder thereof, in any case in whole or in
part, before the date that is 91 days after the Maturity Date and (b) shall be
junior and subordinate to the Senior Obligations and the Obligations and
subject to an intercreditor agreement or subordination provisions which is
acceptable to the Senior Administrative Agent and the Administrative Agent,
respectively.

-25-

 

     “Subsidiary” means, with respect to any Person, at any date, any other
Person in whom such Person holds an Investment and whose financial results
would be consolidated under GAAP with the financial results of such Person if
such statements were prepared as of such date.

     “Telerate” means the Telerate System.

     “Termination Event” means (a) the occurrence of a Reportable Event with
respect to a Plan, as described in Section 4043 of ERISA and the regulations
issued thereunder (other than a Reportable Event not subject to the provision
for 30-day notice to the PBGC under such regulations), (b) the withdrawal of
the Borrower or any of the Controlled Group from a Plan during a plan year in
which it was a “substantial employer” as defined in Section 4001(a)(2) of
ERISA, (c) the giving of a notice of intent to terminate a Plan under Section
4041(c) of ERISA, (d) the institution of proceedings to terminate a Plan by the
PBGC, or (e) any other event or condition which constitutes grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee
to administer, any Plan.

     “Total Indebtedness” of any Person means the sum of the following (without
duplication): (a) all Indebtedness of such Person and its Subsidiaries on a
Consolidated basis, plus (b) such Person’s and such Person’s Subsidiaries’
Unconsolidated Entity Percentage of Indebtedness of such Person’s and such
Person’s Subsidiaries’ Unconsolidated Entities, plus (c) to the extent not
already included in the calculation of either of the preceding clauses (a) or
(b), the aggregate amount of letters of credit for which such Person or any of
its Subsidiaries would have a direct or contingent obligation to reimburse the
issuers of such letters of credit upon a drawing under such letters of credit,
minus (d) to the extent included in the calculation of either of the preceding
clauses (a), (b), or (c), the amount of any minority interests.

     “Unconsolidated Entity” means, with respect to any Person, at any date,
any other Person in whom such Person holds an Investment and whose financial
results would not be consolidated under GAAP with the financial results of such
Person if such statements were prepared as of such date.

     “Unconsolidated Entity Percentage” means, for any Person, with respect to
a Person’s Unconsolidated Entity, the percentage of such Unconsolidated
Entity’s Indebtedness for which recourse may be made against such Person.

     “Units” means apartment or condominium units.

     “Wyndham” means Wyndham International, Inc.

     Section 1.02 Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including” and the words “to” and “until” each
means “to but excluding”.

     Section 1.03 Accounting Terms; Changes in GAAP.

		
	 	     (a) All accounting terms not specifically defined in this Agreement
shall be construed in accordance with GAAP applied on a consistent basis.

-26-

 

		
	 	     (b) Unless otherwise indicated, all financial statements of the
Borrower and the Parent, all calculations for compliance with covenants
in this Agreement, and all calculations of any amounts to be calculated
under the definitions in Section 1.01 shall be based upon the
Consolidated accounts of the Borrower, the Parent and their respective
Subsidiaries (as applicable) in accordance with GAAP.

		
	 	     (c) If any changes in accounting principles after March 31, 2002
required by GAAP or the Financial Accounting Standards Board of the
American Institute of Certified Public Accountants or similar agencies
results in a change in the method of calculation of, or affects the
results of such calculation of, any of the financial covenants, standards
or terms found in this Agreement, then the parties shall enter into and
diligently pursue negotiations in order to amend such financial
covenants, standards or terms so as to equitably reflect such change,
with the desired result that the criteria for evaluating the financial
condition of Borrower and its Subsidiaries (determined on a Consolidated
basis) shall be the same after such change as if such change had not been
made.

     Section 1.04 Intentionally Deleted.

     Section 1.05 Miscellaneous. Article, Section, Schedule and Exhibit
references are to Articles and Sections, of and Schedules and Exhibits, to this
Agreement, unless otherwise specified.

ARTICLE II

THE ADVANCE

     Section 2.01 The Advance.

		
	 	     (a) Advance. Subject to the terms and conditions set forth in this
Agreement, each Lender severally agrees to make an Advance to the
Borrower on the Closing Date, in an aggregate amount equal to such
Lender’s Commitment, so that the entire Facility Amount shall be advanced
on the Closing Date. No amount of such Advance or of the Loan that has
been repaid may be reborrowed.

     Section 2.02 Notes.

		
	 	     (a) Notes. The indebtedness of the Borrower to each Lender resulting
from the Advance of the Loan Amount on the Closing Date shall be
evidenced by a Note of the Borrower payable to the order of such Lender
in substantially the form of Exhibit A.

     Section 2.03 Fees.

		
	 	     (a) Administrative Agent’s Fees. The Borrower agrees to pay to the
Administrative Agent for its benefit the fees set forth in the
Administrative Agent Fee Letter as and when the same are due and payable
pursuant to the terms of the Administrative Agent Fee Letter.

-27-

 

		
	 	     (b) Other Fees. The Borrower agrees to pay to Lehman Brothers Inc.
for its benefit the fees set forth in the Fee Letter as and when the same
are due and payable pursuant to the terms of the Fee Letter.

     Section 2.04 Intentionally Deleted.

     Section 2.05 Repayment of Advances on Maturity Date; Extension.

		
	 	     (a) The Borrower shall repay the outstanding principal amount of the
Loan on the Maturity Date.

		
	 	     (b) If Borrower has extended the original Senior Revolving Maturity
Date pursuant to Section 2.05(b) of the Senior Credit Facility, then the
initial Maturity Date shall be automatically extended, whether or not a
Default or an Event of Default exists and is continuing, without any
further action on the part of the Borrower, Administrative Agent, Senior
Administrative Agent or any other party, for an additional one-year
period to January 31, 2007. Borrower shall have no right, and the
Lenders shall have no obligation to extend the Maturity Date in
connection with any extension of the maturity date under any Additional
Designated Senior Indebtedness or any other Senior Indebtedness except
the Senior Credit Facility.

     Section 2.06 Interest, Late Payment Fee. Subject to the terms of the
Intercreditor Agreement, the Borrower shall pay interest on the unpaid
principal amount of the Loan made by each Lender from the date of the Advance
until such principal amount shall be paid in full, at the following rates per
annum:

		
	 	     (a) Base Rate Portions. If any Loan Portion is a Base Rate Portion,
a rate per annum (computed on the actual number of days elapsed,
including the first day and excluding the last, based on a 365 day year)
equal at all times to the lesser of (i) the Base Rate in effect from time
to time plus the Applicable Margin and (ii) the Maximum Rate, payable in
arrears on the first Business Day of each calendar month and on the date
such Base Rate Portion shall be paid in full, provided that during the
continuance of an Event of Default, Base Rate Portions shall bear
interest at a rate per annum equal at all times to the lesser of (i) the
rate required to be paid on such Base Rate Portion had such Event of
Default not occurred plus three percent (3%) and (ii) the Maximum Rate.

		
	 	     (b) Eurodollar Portion. If any Loan Portion is a Eurodollar
Portion, a rate per annum (computed on the actual number of days elapsed,
including the first day and excluding the last, based on a 360 day year)
equal at all times during the Interest Period for such Eurodollar Portion
to the lesser of (i) the Eurodollar Rate for such Eurodollar Portion for
such Interest Period plus the Applicable Margin and (ii) the Maximum
Rate, payable in arrears on the first Business Day of each calendar
month, and on the date such Eurodollar Portion shall be paid in full,
provided that during the continuance of an Event of Default, Eurodollar
Portions shall bear interest at a rate per annum equal at all times to
the lesser of (i) the rate required to be paid on such Advance had such
Event of Default not occurred plus three percent (3%) and (ii) the
Maximum Rate.

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	 	     (c) Usury Recapture. In the event the rate of interest chargeable
under this Agreement or the Notes at any time is greater than the Maximum
Rate, the unpaid principal amount of the Notes shall bear interest at the
Maximum Rate until the total amount of interest paid or accrued on the
Notes equals the amount of interest which would have been paid or accrued
on the Notes if the stated rates of interest set forth in this Agreement
had at all times been in effect. In the event, upon payment in full of
the Notes, the total amount of interest paid or accrued under the terms
of this Agreement and the Notes is less than the total amount of interest
which would have been paid or accrued if the rates of interest set forth
in this Agreement had, at all times, been in effect, then the Borrower
shall, to the extent permitted by applicable law, pay the Administrative
Agent for the account of the Lenders an amount equal to the difference
between (i) the lesser of (A) the amount of interest which would have
been charged on the Notes if the Maximum Rate had, at all times, been in
effect and (B) the amount of interest which would have accrued on the
Notes if the rates of interest set forth in this Agreement had at all
times been in effect and (ii) the amount of interest actually paid or
accrued under this Agreement on the Notes. In the event the Lenders ever
receive, collect or apply as interest any sum in excess of the Maximum
Rate, such excess amount shall, to the extent permitted by law, be
applied to the reduction of the principal balance of the Notes, and if no
such principal is then outstanding, such excess or part thereof remaining
shall be paid to the Borrower.

		
	 	     (d) Other Amounts Overdue. If any amount payable under this
Agreement other than the Advances is not paid when due and payable,
including without limitation, accrued interest and fees, then such
overdue amount shall accrue interest hereon due and payable on demand at
a rate per annum equal to the Adjusted Base Rate plus three percent (3%),
from the date such amount became due until the date such amount is paid
in full.

		
	 	     (e) Late Payment Fee. Subject to the provisions of Section 10.11,
if any interest payable under this Agreement is not paid when due and
payable (after taking into account any applicable grace period), then the
Borrower will pay to the Lenders contemporaneously with the payment of
such past due interest a late payment fee equal to an amount equal to the
product of (i) such overdue interest times (ii) four percent (4%).

     Section 2.07 Prepayments.

		
	 	     (a) Right to Prepay. The Borrower shall have no right to prepay any
principal amount of any Advance except as provided in this Section 2.07.

		
	 	     (b) Optional Prepayments. After the repayment in full and
termination of the Senior Credit Facility, or prior thereto, to the
extent permitted under the terms of the Intercreditor Agreement or if
Senior Administrative Agent consents, in writing, the Borrower may elect
to prepay all or any part of the Loan, after giving by 12:00 a.m. (New
York, New York time) (i) in the case of Eurodollar Portions, at least
three (3) Business Days’, or (ii) in case of Base Rate Portions, at least
one (1) Business Day’s prior written notice to the Administrative Agent,
stating the proposed date and aggregate principal

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	 	amount of such prepayment, and if applicable, the relevant Interest
Period for the Loan Portion to be prepaid. If any such notice is given,
the Borrower shall prepay the Loan in an amount equal to the amount
specified in such notice, and shall also pay accrued interest to the date
of such prepayment on the principal amount prepaid and amounts, if any,
required to be paid pursuant to Section 2.08 as a result of such
prepayment being made on such date; provided, however, that each partial
prepayment shall be in an aggregate principal amount not less than
$500,000 and in integral multiples of $100,000.

		
	 	     (c) Mandatory Prepayments.

		
	 	     (i) Repayment Event. Upon the occurrence of any Repayment
Event, the Borrower shall prepay a portion of the Loan on the
Business Day the Net Cash Proceeds from such Repayment Event are
received by the Borrower or the Parent, as applicable, in an amount
equal to the lesser of (A) the amount of the outstanding principal
balance of the Loan on such Business Day and (B) 100% of the Net
Cash Proceeds of such Repayment Event. Such prepayments shall be
applied (A) first, to interest as provided in Section 2.07(c)(ii),
and (B) second, to the outstanding principal balance.

		
	 	     (ii) Accrued Interest. Each prepayment pursuant to this
Section 2.07(c) shall be accompanied by accrued interest on the
amount prepaid to the date of such prepayment and amounts, if any,
required to be paid pursuant to Section 2.08 as a result of such
prepayment being made on such date.

		
	 	     (d) Effect of Notice. All notices given pursuant to this Section
2.07 shall be irrevocable and binding upon the Borrower.

     Section 2.08 Breakage Costs. If (a) any payment of principal of any
Eurodollar Portion is made other than on the last day of the Interest Period
for such Eurodollar Portion as a result of any payment pursuant to Section 2.07
or the acceleration of the maturity of the Notes pursuant to Article VIII or
otherwise; or (b) the Borrower fails to make a principal or interest payment
with respect to any Eurodollar Portion on the date such payment is due and
payable, the Borrower shall, within 10 days of any written demand sent by any
Lender to the Borrower through the Administrative Agent, pay to the
Administrative Agent for the account of such Lender any amounts (without
duplication of any other amounts payable in respect of breakage costs) required
to compensate such Lender for any additional losses, out-of-pocket costs or
expenses which it may reasonably incur as a result of such payment or
nonpayment, including, without limitation, any loss, cost or expense incurred
by reason of the liquidation or reemployment of deposits or other funds
acquired by any Lender to fund or maintain such Advance.

     Section 2.09 Increased Costs.

		
	 	     (a) Eurodollar Portions. If, due to either (i) the introduction of
or any change in or in the interpretation of any law or regulation
(except with respect to Taxes or Other Taxes) following the date of this
Agreement or (ii) the compliance with any guideline or request from any
central bank or other Governmental Authority (whether or not having

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	 	the force of law) not complied with prior to the date of this
Agreement, there shall be any increase in the cost to any Lender of
agreeing to make or making, funding or maintaining Eurodollar Portions
(including, without limitation, (A) additional interest to compensate
such Lender for reserve costs actually incurred by such Lender associated
with Eurocurrency Liabilities, such additional interest to be calculated
by subtracting (1) the Eurodollar Rate for such Lender’s Pro Rata Share
of the Eurodollar Portion from (2) the rate obtained by dividing such
applicable interest rate for such Eurodollar Portion (excluding the
Applicable Margin) by a percentage equal to one minus the applicable
Eurodollar Rate Reserve Percentage of such Lender for such Interest
Period), then the Borrower shall from time to time, upon demand by such
Lender (with a copy of such demand to the Administrative Agent),
immediately pay to the Administrative Agent for the account of such
Lender additional amounts (without duplication of any other amounts
payable in respect of increased costs) sufficient to compensate such
Lender for such increased cost; provided, however, that, before making
any such demand, each Lender agrees to use commercially reasonable
efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Applicable Lending Office if the
making of such a designation would avoid the need for, or reduce the
amount of, such increased cost and would not, in the reasonable judgment
of such Lender, be otherwise disadvantageous to such Lender (except that
no Lender shall be required to redesignate its Applicable Lending Office
to avoid the incurrence of increased costs associated with additional
interest required to be paid by the Borrowers to any Lender in connection
with reserve costs attributable to Eurocurrency Liabilities). A
certificate as to the amount of such increased cost and detailing the
calculation of such cost submitted to the Borrower and the Administrative
Agent by such Lender at the time such Lender demands payment under this
Section shall be conclusive and binding for all purposes, absent manifest
error.

		
	 	     (b) Capital Adequacy. If any Lender determines in good faith that
compliance with any law or regulation or any guideline or request from
any central bank or other Governmental Authority (whether or not having
the force of law) implemented or effective after the date of this
Agreement affects or would affect the amount of capital required or
expected to be maintained by such Lender and that the amount of such
capital is increased by or based upon the existence of such Lender’s Pro
Rata Share of the Loan, then, upon 30 days prior written notice by such
Lender (with a copy of any such demand to the Administrative Agent), the
Borrower shall immediately pay to the Administrative Agent for the
account of such Lender, from time to time as specified by such Lender,
additional amounts (without duplication of any other amounts payable in
respect of increased costs) sufficient to compensate such Lender, in
light of such circumstances, to the extent that such Lender reasonably
determines such increase in capital to be allocable to the existence of
such Lender’s commitment to lend under this Agreement. A certificate as
to such amounts and detailing the calculation of such amounts submitted
to the Borrower and the Administrative Agent by such Lender shall be
conclusive and binding for all purposes, absent manifest error.

     Section 2.10 Payments and Computations.

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	 	     (a) Payment Procedures. Except if otherwise set forth herein, the
Borrower shall make each payment under this Agreement and under the Notes
not later than 12:00 a.m. (New York, New York time) on the day when due
to the Administrative Agent at the location referred to in the Notes (or
such other location as the Administrative Agent shall designate in
writing to the Borrower) in same day funds without set-off, deduction or
counterclaim. Except for amounts payable solely to the Administrative
Agent, or a specific Lender pursuant to Section 2.06(b), 2.08, 2.09,
2.11, or 2.12, but after taking into account payments effected pursuant
to Section 10.04, the Administrative Agent will on the same day cause to
be distributed like funds relating to the payment of principal, interest
or fees ratably to the Lenders in accordance with, in the case of a
payment made in respect of a Borrowing, each Lender’s Share, for the
account of their respective Applicable Lending Offices, and like funds
relating to the payment of any other amount payable to any Lender for the
account of its Applicable Lending Office, in each case to be applied in
accordance with the terms of this Agreement.

		
	 	     (b) Computations. All computations of interest based on the Base
Rate shall be made by the Administrative Agent on the basis of a year of
365 days and all computations of fees and interest based on the
Eurodollar Rate shall be made by the Administrative Agent on the basis of
a year of 360 days, in each case for the actual number of days (including
the first day, but excluding the last day) occurring in the period for
which such interest or fees are payable. Each determination by the
Administrative Agent of an interest rate shall be conclusive and binding
for all purposes, absent manifest error.

		
	 	     (c) Non-Business Day Payments. Whenever any payment shall be stated
to be due on a day other than a Business Day, such payment shall be made
on the next succeeding Business Day, and such extension of time shall in
such case be included in the computation of payment of interest or fees,
as the case may be; provided, however, that if such extension would cause
payment of interest on or principal of Eurodollar Portions to be made in
the next following calendar month, such payment shall be made on the next
preceding Business Day.

		
	 	     (d) Administrative Agent Reliance. Unless the Administrative Agent
shall have received written notice from the Borrower prior to the date on
which any payment is due to the Lenders that the Borrower will not make
such payment in full, the Administrative Agent may assume that the
Borrower has made such payment in full to the Administrative Agent on
such date and the Administrative Agent may, in reliance upon such
assumption, cause to be distributed to each Lender on such date an amount
equal to the amount then due such Lender. If and to the extent the
Borrower shall not have so made such payment in full to the
Administrative Agent, each Lender shall repay to the Administrative Agent
forthwith on demand such amount distributed to such Lender, together with
interest, for each day from the date such amount is distributed to such
Lender until the date such Lender repays such amount to the
Administrative Agent, at the Federal Funds Rate for each such day.

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	 	     (e) Application of Payments. Unless otherwise specified in Section
2.07 hereof, whenever any payment received by the Administrative Agent
under this Agreement is insufficient to pay in full all amounts then due
and payable under this Agreement and the Notes, such payment shall be
distributed and applied by the Administrative Agent and the Lenders in
the following order: first, to the payment of fees and expenses due and
payable to the Administrative Agent under and in connection with this
Agreement or any other Credit Document; second, to the payment of all
expenses due and payable under Section 2.11(c), ratably among the Lenders
in accordance with the aggregate amount of such payments owed to each
such Lender; third, to the payment of all other fees due and payable
under Section 2.03; and fourth, to the payment of the interest accrued on
and the principal amount of all of the other Notes and regardless of
whether any such amount is then due and payable, ratably among the
Lenders in accordance with the aggregate accrued interest plus the
aggregate principal amount owed to such Lender.

		
	 	     (f) Register. The Administrative Agent shall record in the Register
the Commitment and the Advances from time to time of each Lender and each
repayment or prepayment in respect to the principal amount of such
Advances of each Lender. Any such recordation shall be conclusive and
binding on the Borrower and each Lender, absent manifest error; provided
however, that failure to make any such recordation, or any error in such
recordation, shall not affect the Borrower’s obligations hereunder in
respect of such Advances.

     Section 2.11 Taxes.

		
	 	     (a) No Deduction for Certain Taxes. Any and all payments by the
Borrower shall be made, in accordance with Section 2.10, free and clear
of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, excluding, (i) in the case of each Lender and the
Administrative Agent, taxes imposed on its income, and franchise taxes
imposed on it, by the jurisdiction under the laws of which such Lender or
the Administrative Agent (as the case may be) is organized or carries on
business (other than as a result of a connection arising primarily from
the Lender or the Administrative Agent (as the case may be) having
executed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement) or any political subdivision or
taxing authority of such jurisdictions (all such nonexcluded taxes,
levies, imposts, deductions, charges, withholdings and liabilities being
hereinafter referred to as “Taxes”) and, (ii) in the case of each Lender,
Taxes by the jurisdiction of such Lender’s Applicable Lending Office or
any political subdivision of such jurisdiction. If the Borrower shall be
required by law to deduct any Taxes from or in respect of any sum payable
to any Lender or the Administrative Agent, (i) the sum payable shall be
increased as may be necessary so that, after making all required
deductions (including deductions applicable to additional sums payable
under this Section 2.11), such Lender or the Administrative Agent (as the
case may be) receives an amount equal to the sum it would have received
had no such deductions been made; provided, however, that if the
Borrower’s obligation to deduct or withhold Taxes is caused solely by
such Lender’s or the Administrative Agent’s failure to

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	 	provide the forms described in paragraph (e) of this Section 2.11
and such Lender or the Administrative Agent could have provided such
forms or if such Lender or the Administrative Agent (as the case may be)
fails to comply with Section 2.11(g), no such increase shall be required;
(ii) the Borrower shall make such deductions; and (iii) the Borrower
shall pay the full amount deducted to the relevant taxation authority or
other authority in accordance with applicable Legal Requirements.

		
	 	     (b) Other Taxes. In addition, the Borrower agrees to pay any
present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies which arise from any payment
made or from the execution, delivery or registration of, or otherwise
with respect to, this Agreement, the Notes, or the other Credit Documents
(hereinafter referred to as “Other Taxes”).

		
	 	     (c) Indemnification. The Borrower will indemnify each Lender and
the Administrative Agent for the full amount of Taxes or Other Taxes
(including, without limitation, any Taxes or Other Taxes imposed by any
Governmental Authority on amounts payable under this Section 2.11) paid
by such Lender or the Administrative Agent (as the case may be) and any
liability (including interest and expenses) arising therefrom or with
respect thereto, whether or not such Taxes or Other Taxes were correctly
or legally asserted. Each payment required to be made by the Borrower in
respect of this indemnification shall be made to the Administrative Agent
for the benefit of any party claiming such indemnification within 30 days
from the date the Borrower receives written demand detailing the
calculation of such amounts therefor from the Administrative Agent on
behalf of itself as Administrative Agent, or any such Lender. If any
Lender, or the Administrative Agent, receives a refund, offset, credit or
deduction in respect of any Taxes or Other Taxes paid by the Borrower
under this paragraph (c), such Lender, or the Administrative Agent, as
the case may be, shall promptly pay to the Borrower the Borrower’s share
of such refund, offset, credit or deduction, received by or credited to
the Lender, or the Administrative Agent, as the case may be, (reduced by
any Taxes imposed on the Lender, or the Administrative Agent, as the case
may be, by reason of the receipt, accrual or payment of such refund,
offset, credit or deduction).

		
	 	     (d) Evidence of Tax Payments. The Borrower will pay prior to
delinquency all Taxes and Other Taxes payable in respect of any payment.
Within 30 days after the date of any payment of Taxes, the Borrower will
furnish to the Administrative Agent, at its address referred to in
Section 10.02, the original or a certified copy of a receipt evidencing
payment of such Taxes or Other Taxes.

		
	 	     (e) Foreign Lender Withholding Exemption. Each Lender that is not
incorporated under the laws of the United States of America or a state
thereof agrees that it will deliver to the Borrower and the
Administrative Agent on the date of this Agreement or upon the
effectiveness of any Assignment and Acceptance two duly completed copies
of the Prescribed Forms, as the case may be, certifying in each case that
such Lender is entitled to receive payments under this Agreement and the
Notes payable to it, without deduction or withholding of any United
States federal income taxes. Each Lender which delivers to the Borrower
and the Administrative Agent a Prescribed Form

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	 	further undertakes to deliver to the Borrower and the Administrative
Agent on or before the date that any such form expires or becomes
obsolete or after the occurrence of any event requiring a change in the
most recent form previously delivered by it to the Borrower and the
Administrative Agent two further copies of a replacement Prescribed Form.
If an event (including without limitation any change in treaty, law or
regulation) has occurred prior to the date on which any delivery required
by the preceding sentence would otherwise be required which renders all
such forms inapplicable or which would prevent any Lender from duly
completing and delivering any such letter or form with respect to it and
such Lender advises the Borrower and the Administrative Agent that it is
not capable of receiving payments without any deduction or withholding of
United States federal income tax, and in the case of a Prescribed Form
establishing an exemption from, or a reduced rate of, United States
backup withholding tax, such Lender shall not be required to deliver such
forms. The Borrower shall withhold tax at the rate and in the manner
required by the laws of the United States with respect to payments made
to a Lender failing to timely provide the Prescribed Forms.

		
	 	     (f) Nothing in this Section 2.11 shall require any Lender or the
Administrative Agent to make available any of its tax returns (or any
other information that it deems to be confidential or proprietary, in its
sole discretion).

		
	 	     (g) If any Lender claims any additional amounts payable pursuant to
this Section 2.11, then such Lender (as the case may be) shall use its
reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to change the jurisdiction of its Applicable
Lending Office if the making of such a change would avoid the need for,
or reduce the amount of, any such additional amounts that would be
payable or may thereafter accrue and would not be otherwise
disadvantageous to such Lender.

     Section 2.12 Illegality. If any Lender shall notify the Administrative
Agent and the Borrower that the introduction of or any change in or in the
interpretation of any Legal Requirement makes it unlawful, or that any central
bank or other Governmental Authority asserts that it is unlawful for such
Lender or its Applicable Lending Office to perform its obligations under this
Agreement or to maintain Lender’s Pro Rata Share of any Eurodollar Portion of
such Lender then outstanding hereunder, then, notwithstanding anything herein
to the contrary, if demanded by such Lender by notice to the Borrower and the
Administrative Agent no later than 12:00 a.m. (New York, New York time), (a) if
not prohibited by Legal Requirement to maintain such Eurodollar Portion for the
duration of the Interest Period, on the last day of such Interest Period or (b)
if prohibited by Legal Requirement to maintain such Eurodollar Portion for the
duration of the Interest Period, on the second Business Day following its
receipt of such notice from such Lender, the affected Eurodollar Portion of
such Lender then outstanding shall automatically become a Base Rate Portion and
Borrower shall pay the amount, if any, required to be paid pursuant to Section
2.08 as a result of such conversion being made on such date. Each Lender
agrees to use commercially reasonable efforts (consistent with its internal
policies and legal and regulatory restrictions) to designate a different
Applicable Lending Office if the making of such designation would avoid the
effect of this paragraph and would not, in the reasonable judgment of such
Lender, be otherwise disadvantageous to such Lender.

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     Section 2.13 Eurodollar Rate Unascertainable.

		
	 	     (a) In the event that Administrative Agent shall have determined
(which determination shall be conclusive and binding upon Borrower absent
manifest error) that by reason of circumstances affecting the interbank
eurodollar market, adequate and reasonable means do not exist for
ascertaining the Eurodollar Rate, then Administrative Agent shall
forthwith give notice by telephone of such determination, to Borrower at
least one (1) Business Day prior to the last day of the related Interest
Period, with a written confirmation of such determination promptly
thereafter. If such notice is given, the Loan shall convert to a Base
Rate Portion and shall bear interest at the Base Rate plus the Applicable
Margin beginning on the first day of the next succeeding Interest Period.
If, pursuant to the terms of this Section 2.13, the Loan is a Base Rate
Portion and Administrative Agent shall determine (which determination
shall be conclusive and binding upon Borrower absent manifest error) that
the event(s) or circumstance(s) which resulted in such conversion shall
no longer be applicable, Administrative Agent shall give notice thereof
to Borrower by telephone of such determination, confirmed in writing, to
Borrower as soon as reasonably practical, but in no event later than one
(1) Business Day prior to the last day of the then current Interest
Period. If such notice is given, the Loan shall convert to a Eurodollar
Portion and shall bear interest at the Eurodollar Rate plus the
Applicable Margin beginning on the first day of the next succeeding
Interest Period.

     Section 2.14 Determination of Leverage Ratio and Senior Leverage Ratio.
In addition to the determination of the Leverage Ratio and the Senior Leverage
Ratio in a Compliance Certificate, the Leverage Ratio and the Senior Leverage
Ratio shall be determined by the Administrative Agent, as follows:

		
	 	     (a) Adjustments. Following each making, acquisition or disposition
by the Parent or its Subsidiary of an Investment or any Non-Replaced
Property with an Investment Amount in excess of $5,000,000 or the
incurrence by the Parent or its Subsidiary of additional Indebtedness
(excluding any Obligations) in excess of $5,000,000 (an “Adjustment
Event”), and the Administrative Agent’s receipt of an Adjustment Report
with respect thereto, the Administrative Agent shall adjust the Leverage
Ratio and the Senior Leverage Ratio accordingly.

		
	 	     (b) Notice of Leverage Ratio and Senior Leverage Ratio Change.
Promptly following any date the Leverage Ratio and the Senior Leverage
Ratio is determined in accordance with the preceding paragraph, the
Administrative Agent shall give notice to the Lenders and the Borrower of
the new Leverage Ratio and Senior Leverage Ratio.

     Section 2.15 Lender Replacement.

		
	 	     (a) Right to Replace. The Borrower shall have the right to replace
each Lender either (i) affected by a condition under Section 2.09, 2.11,
or 2.12 for more than 60 days or (ii) that refuses to consent to a
proposed change, waiver, discharge or termination with respect to this
Agreement which has been approved by 51% or more of the Non-Defaulting
Lenders entitled to vote on such proposed change, waiver, discharge

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	 	or termination, as (and to the extent) provided in Section 10.01
(each such affected or non-consenting Lender, an “Affected Lender”) in
accordance with the procedures in this Section 2.15 and provided that no
reduction of the total Commitments occurs as a result thereof.

		
	 	     (b) Replacement Allocation.

		
	 	     (i) Upon the occurrence of any condition permitting the
replacement of a Lender, the Administrative Agent in its sole
discretion shall have the right to reallocate the amount of the
Commitments of the Affected Lenders, including without limitation
to Persons which are not already party to this Agreement but which
qualify as Eligible Assignees, which election shall be made by
written notice within 30 days after the date such condition occurs.

		
	 	     (ii) If the aggregate amount of the reallocated Commitments is
less than the Commitments of the Affected Lenders, (A) the
respective Commitments of the Lenders which have received such
reallocated Commitments shall be increased by the respective
amounts of their proposed reallocations, and (B) the Borrower shall
have the right to add additional Lenders which are Eligible
Assignees to this Agreement to replace such Affected Lenders, which
additional Lenders would have aggregate Commitments no greater than
those of the Affected Lenders minus the amounts of the Commitments
already reallocated.

		
	 	     (iii) Notwithstanding any provision in this Section 2.15 to
the contrary, no Lender except for an Affected Lender may have such
Lender’s Commitment increased or decreased pursuant to the
provisions of this Section 2.15 without such Lender’s written
consent.

		
	 	     (c) Procedure. Any assumptions of Commitments pursuant to this
Section 2.15 shall be (i) made by the purchasing Lender or Eligible
Assignee and the selling Lender entering into an Assignment and
Assumption and by following the procedures in Section 10.06 for adding a
Lender. In connection with the reallocation of the Commitments of any
Lender pursuant to the foregoing paragraph (b), each Lender with a
reallocated Commitment shall purchase from the Affected Lenders at par
such Lender’s Pro Rata Share, of the outstanding Loan Amount.

     Section 2.16 Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off or otherwise) on account of the Advances made by it in excess of its
Pro Rata Share, as applicable, of payments or collateral on account of the
Advances obtained by all the Lenders, such Lender shall notify the
Administrative Agent and forthwith purchase from the other Lenders such
participations in the Advances, as applicable, made by them as shall be
necessary to cause such purchasing Lender to share the excess payment or
benefits of such collateral or proceeds ratably in accordance with the
requirements of this Agreement with each of them; provided, however, that if
all or any portion of such excess payment is thereafter recovered from such
purchasing Lender, such purchase from each Lender shall be rescinded and such
Lender shall repay to the purchasing Lender the

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 purchase price to the extent of such Lender’s ratable share (according to
the proportion of (a) the amount of the participation sold by such Lender to
the purchasing Lender as a result of such excess payment to (b) the total
amount of such excess payment) of such recovery, together with an amount equal
to such Lender’s ratable share (according to the proportion of (a) the amount
of such Lender’s required repayment to the purchasing Lender to (b) the total
amount of all such required repayments to the purchasing Lender) of any
interest or other amount paid or payable by the purchasing Lender in respect of
the total amount so recovered. The Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section 2.16
may, to the fullest extent permitted by Legal Requirement, unless and until
rescinded as provided above, exercise all its rights of payment (including the
right of set-off) with respect to such participation as fully as if such Lender
were the direct creditor of the Borrower in the amount of such participation.

     Section 2.17 Agreement to Subordinate. Administrative Agent and the
Lenders agree that Indebtedness for Borrowings under this Agreement represented
by the Notes shall be subordinated in right of payment, to the extent and in
the manner provided in the Intercreditor Agreement, to the prior payment in
full of the Senior Credit Facility. The Administrative Agent and the Lenders
further agree that in connection with any replacement or refinancing of the
Senior Credit Facility or any Additional Designated Senior Indebtedness which
is permitted by this Agreement, it shall enter into a new intercreditor or
subordination agreement on terms substantially similar to the Intercreditor
Agreement.

ARTICLE III

CONDITIONS OF LENDING

     Section 3.01 Conditions Precedent to the Initial Advance. The obligation
of each Lender to make the initial Advance of the Loan Amount hereunder is
subject to the following conditions precedent being satisfied on or prior to
January 10, 2003:

		
	 	     (a) Documentation. The Administrative Agent shall have received
counterparts of this Agreement executed by the Borrower and the Lenders,
and the following duly executed by all the parties thereto, in form and
substance satisfactory to the Administrative Agent, and, with respect to
this Agreement, all Guaranties and Environmental Indemnities, in
sufficient copies for each Lender:

		
	 	     (i) the Notes, and the Guaranties;

		
	 	     (ii) The Intercreditor Agreement.

		
	 	     (iii) a certificate from a Responsible Officer of the Parent
on behalf of the Borrower dated as of the Closing Date stating that
as of the Closing Date (A) all representations and warranties of
the Borrower set forth in this Agreement and the Credit Documents
are true and correct in all material respects; (B) no Default has
occurred and is continuing; (C) the conditions in this Section 3.01
have been met or waived in writing; and (D) to the best of the
Borrower’s knowledge there

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	 	are no claims, defenses, counterclaims or offsets against the
Lenders under the Credit Documents;

		
	 	     (iv) a certificate of the Secretary or an Assistant Secretary
of the Parent on behalf of the Borrower and each corporation that
is either a Guarantor or a general partner or manager of a
Guarantor dated as of the date of this Agreement certifying as of
the Closing Date (A) the names and true signatures of officers or
authorized representatives of the Parent and such other Persons
authorized to sign the Credit Documents to which such Person is a
party in the capacity therein indicated, (B) resolutions of the
Board of Directors or the members of the Parent and such other
Persons with respect to the transactions herein contemplated, and
(C) a true and correct copy of the Intercompany Agreement;

		
	 	     (v) (A) one or more favorable written opinions of DeCampo,
Diamond & Ash, special counsel for the Borrower, the Parent, and
their Subsidiaries, in a form reasonably acceptable to the
Administrative Agent, in each case dated as of the Closing Date and
with such changes as the Administrative Agent may approve, and (B)
such other legal opinions as either of the Administrative Agent
shall reasonably request, in each case dated as of the Closing Date
and with such changes as the Administrative Agent may approve,
provided that in the Administrative Agent’s discretion certain
legal opinions related to Guarantors which are domiciled outside
the United States may not be required;

		
	 	     (vi) a Compliance Certificate dated as of the Closing Date
reflecting for the financial tests covered therein the financial
performance for the Borrower for the Rolling Period ended September
30, 2002;

		
	 	     (vii) the Second Amendment to the Senior Credit Facility;

		
	 	     (viii) the Inter-Company Indebtedness Subordination Agreement
with respect to Approved Inter-Company Indebtedness; and

		
	 	     (ix) such other documents, governmental certificates,
agreements, lien searches as the Administrative Agent may
reasonably request.

		
	 	     (b) Prepayment of MHC Indebtedness. Borrower shall have delivered
evidence satisfactory to the Administrative Agent that (i) the proceeds
of the Loan to be advanced are, together with the sums permitted to be
paid by Borrower pursuant to the Second Amendment to the Senior Credit
Facility, sufficient to prepay the MHC Indebtedness in full and that the
MHC indebtedness shall be terminated upon such prepayment and (ii)
Borrower has paid such sums described in the preceding clause (i) to MHC
OP.

		
	 	     (c) Representations and Warranties. The representations and
warranties contained in Article IV hereof, the Guaranties shall be true
and correct in all material respects.

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	 	     (d) Certain Payments. The Borrower shall have paid the fees required
to be paid as of the execution of this Credit Agreement pursuant to (i)
the Fee Letter and (ii) the Administrative Agent Fee Letter.

		
	 	     (e) Compliance with Senior Credit Facility. Borrower shall have
delivered evidence reasonably satisfactory to the Administrative Agent
that all of the conditions precedent to the effectiveness of the Second
Amendment to the Senior Credit Facility (including, without limitation,
the payment of all required fees) have been complied with.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants as follows:

     Section 4.01 Existence; Qualification; Partners; Subsidiaries.

		
	 	     (a) The Borrower is a limited partnership duly organized, validly
existing, and in good standing under the laws of Delaware and in good
standing and qualified to do business in each jurisdiction where its
ownership or lease of property or conduct of its business requires such
qualification, except where the failure to so qualify would not cause a
Material Adverse Change to the Borrower.

		
	 	     (b) The Parent is a corporation duly organized, validly existing,
and in good standing under the laws of Delaware and in good standing and
qualified to do business in each jurisdiction where its ownership or
lease of property or conduct of its business requires such qualification,
except where the failure to so qualify would not cause a Material Adverse
Change to the Parent.

		
	 	     (c) The Parent is duly listed on the New York Stock Exchange, Inc.
and the Parent has timely filed all reports required to be filed by it
with the New York Stock Exchange, Inc. and the Securities and Exchange
Commission.

		
	 	     (d) The Parent owns approximately 97% of the partnership interest in
the Borrower and is the sole general partner of the Borrower.

		
	 	     (e) The entire authorized capital stock of the Parent consists of
(i) 50,000,000 shares of Parent common stock of which approximately
20,127,000 shares of Parent common stock are duly and validly issued and
outstanding, fully paid and nonassessable as of December 31, 2002 and
(ii) 1,000,000 shares of Parent preferred stock of which no shares are
issued or outstanding.

		
	 	     (f) Each Subsidiary of the Borrower is a limited partnership,
general partnership or limited liability company duly organized, validly
existing, and in good standing under the laws of its jurisdiction of
formation and in good standing and qualified to do business in each
jurisdiction where conduct of its business requires such qualification,
except where the failure to so qualify would not cause a Material Adverse
Change to such Subsidiary. Except for the Beverage Entities and the
Dissolving

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	 	Subsidiaries, the Parent has no Subsidiaries on the date of this
Agreement other than the Borrower and the Subsidiaries listed on the
attached Schedule 4.01, and Schedule 4.01 lists the jurisdiction of
formation, and the address of the principal office of each such
Subsidiary existing on the date of this Agreement. As of the date of
this Agreement, the Parent or the Borrower owns, directly or indirectly,
at least the percentage interests in each such Subsidiary listed on the
attached Schedule 4.01.

		
	 	     (g) Except for those Material Subsidiaries domiciled in a
jurisdiction outside the United States, each of the Borrower, the Parent
and each of the Material Subsidiaries is domiciled in the State of
Delaware.

		
	 	     (h) There has been no material change in any of the organizational
documents of Borrower, Parent or any Guarantor since July 31, 2002.

     Section 4.02 Partnership and Corporate Power. The execution, delivery,
and performance by the Borrower and each Guarantor of the Credit Documents to
which it is a party and the consummation of the transactions contemplated
hereby and thereby (a) are within such Persons’ partnership, limited liability
company and corporate powers, as applicable, (b) have been duly authorized by
all necessary corporate, limited liability company and partnership action, as
applicable, (c) do not contravene (i) such Person’s certificate or articles,
as the case may be, of incorporation or by-laws, operating agreement or
partnership agreement, as applicable, or (ii) any law or any contractual
restriction binding on or affecting any such Person, the contravention of which
could reasonably be expected to cause a Material Adverse Change, and (d) will
not result in or require the creation or imposition of any Lien prohibited by
this Agreement. At the time of each Borrowing, such Borrowing and the use of
the proceeds of such Borrowing will be within the Borrower’s partnership
powers, will have been duly authorized by all necessary partnership action, (a)
will not contravene (i) the Borrower’s partnership agreement or (ii) any law or
any contractual restriction binding on or affecting the Borrower (including
without limitation, the Senior Credit Facility), the contravention of which
could reasonably be expected to cause a Material Adverse Change, and (b) will
not result in or require the creation or imposition of any Lien prohibited by
this Agreement.

     Section 4.03 Authorization and Approvals. No authorization or approval or
other action by, and no notice to or filing with, any Governmental Authority is
required for the due execution, delivery and performance by the Borrower or any
Guarantor of the Credit Documents to which it is a party or the consummation of
the transactions contemplated thereby. At the time of each Borrowing, no
authorization or approval or other action by, and no notice to or filing with,
any Governmental Authority will be required for such Borrowing or the use of
the proceeds of such Borrowing the absence of which could reasonably be
expected to cause a Material Adverse Change.

     Section 4.04 Enforceable Obligations. This Agreement, the Notes, and the
other Credit Documents to which the Borrower is a party have been duly executed
and delivered by the Borrower; each Guaranty and the other Credit Documents to
which each Guarantor and the Parent is a party have been duly executed and
delivered by such Guarantor. Each Credit Document is the legal, valid, and
binding obligation of the Borrower, the Parent, and each

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 Guarantor which is a party to it enforceable against the Borrower, the
Parent, and each such Guarantor in accordance with its terms, except as such
enforceability may be limited by any applicable bankruptcy, insolvency,
reorganization, moratorium, or similar law affecting creditors’ rights
generally and by general principles of equity (whether considered in proceeding
at law or in equity).

     Section 4.05 Financial Statements. The respective Consolidated balance
sheets, statements of operations, shareholders’ equity and cash flows of Parent
and its Subsidiaries contained in its Financial Statements, and the
corresponding financial statements for the Parent and its Subsidiaries, fairly
present the financial condition in all material respects and reflects the
Indebtedness of such Person and such Person’s Subsidiaries on a Consolidated
basis as of the dates indicated in the Financial Statements and the respective
results of the operations for the periods indicated, and such balance sheets
and statements were prepared in accordance with GAAP, subject to year-end
adjustments. Since the date of such statements, no Material Adverse Change has
occurred.

     Section 4.06 True and Complete Disclosure. No representation, warranty,
or other statement made by the Borrower (or on behalf of the Borrower) in this
Agreement or any other Credit Document contains any untrue statement of a
material fact or omits to state any material fact necessary to make the
statements contained therein not misleading in light of the circumstances in
which they were made as of the date of this Agreement. There is no fact known
to any Responsible Officer of the Borrower or the Parent on the date of this
Agreement that has not been disclosed to the Administrative Agent which could
reasonably be expected to cause a Material Adverse Change. All projections,
estimates, and financial information furnished by the Borrower and/or the
Parent or on behalf of the Borrower were prepared on the basis of assumptions,
data, information, tests, or conditions believed to be reasonable at the time
such projections, estimates, and pro forma financial information were
furnished. No representation, warranty or other statement made in Parent’s
latest 10K, 10Q or annual report or the Registration Statements contains any
untrue statement of material fact or omits to state any material fact necessary
to make the statements contained therein not misleading in light of the
circumstances in which they were made as of the date same were made. Borrower
and/or Parent has made all filings required by the Exchange Act.

     Section 4.07 Litigation. Except as set forth in the attached Schedule
4.07, there is no pending or, to the best knowledge of the Borrower, threatened
investigation, action or proceeding affecting the Borrower or the Parent or any
of their respective Subsidiaries by or before any court, Governmental Authority
or arbitrator either (a) in which in Borrower’s good faith judgment the
anticipated loss is over $500,000 (provided that with respect to the giving of
this representation after the date of this Agreement, the representation shall
only be deemed to apply to those matters for which Administrative Agent would
have been entitled to notice under Section 5.05(k)) or (b) which in Borrower’s
good faith judgment would result in criminal penalties against the Parent, the
Borrower or their respective Subsidiaries which could reasonably be expected to
cause a Material Adverse Change.

     Section 4.08 Use of Proceeds.

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	 	     (a) Advances. The proceeds of the Advance shall be used by the
Borrower for the repayment of the MHC Indebtedness on the Closing Date.

		
	 	     (b) Regulations. No proceeds of the Loan will be used to purchase
or carry any Margin Stock or be used in violation of Regulations T, U or
X of the Federal Reserve Board, as the same is from time to time in
effect, and all official rulings and interpretations thereunder or
thereof. The Borrower is not engaged in the business of extending credit
for the purpose of purchasing or carrying Margin Stock.

     Section 4.09 Investment Company Act. Neither the Borrower, the Parent nor
any of their respective Subsidiaries is an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

     Section 4.10 Taxes. All federal, state, local and foreign tax returns,
reports and statements required to be filed (after giving effect to any
extension granted in the time for filing) by the Parent, the Borrower, their
respective Subsidiaries, or any member of a Controlled Group have been filed
with the appropriate governmental agencies in all jurisdictions in which such
returns, reports and statements are required to be filed, and where the failure
to file could reasonably be expected to cause a Material Adverse Change, except
where contested in good faith and by appropriate proceedings; and all taxes and
other impositions due and payable (which are material in amount) have been
timely paid prior to the date on which any fine, penalty, interest, late charge
or loss (which are material in amount) may be added thereto for non-payment
thereof except where contested in good faith and by appropriate proceedings.
As of the date of this Agreement, neither the Parent, the Borrower, any of
their respective Subsidiaries nor any member of a Controlled Group has given,
or been requested to give, a waiver of the statute of limitations relating to
the payment of any federal, state, local or foreign taxes or other impositions.
None of the Property owned by the Parent, the Borrower, any of their
respective Subsidiaries or any other member of a Controlled Group is Property
which the Parent, the Borrower, any of their respective Subsidiaries or any
member of a Controlled Group is required to be treated as being owned by any
other Person pursuant to the provisions of Section 168(f)(8) of the Code.
Proper and accurate amounts have been withheld by the Parent, the Borrower,
their respective Subsidiaries and all members of each Controlled Group from
their employees for all periods to comply in all material respects with the
tax, social security and unemployment withholding provisions of applicable
federal, state, local and foreign law. Timely payment of all material sales
and use taxes required by applicable law have been made by the Parent, the
Borrower, their respective Subsidiaries and all other members of each
Controlled Group, the failure to timely pay of which could reasonably be
expected to cause a Material Adverse Change. The amounts shown on all tax
returns to be due and payable have been paid in full or adequate provision
therefor is included on the books of the appropriate members of the applicable
Controlled Group.

     Section 4.11 Pension Plans. All Plans are in compliance in all material
respects with all applicable provisions of ERISA. No Termination Event has
occurred with respect to any Plan, and each Plan has complied with and been
administered in all material respects in accordance with applicable provisions
of ERISA and the Code. No “accumulated funding deficiency” (as

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 defined in Section 302 of ERISA) has occurred and there has been no excise
tax imposed under Section 4971 of the Code. No Reportable Event has occurred
with respect to any Multiemployer Plan, and to the Borrower’s actual knowledge
each Multiemployer Plan has complied with and been administered in all material
respects with applicable provisions of ERISA and the Code. Neither the
Borrower, nor any member of a Controlled Group has had a complete or partial
withdrawal from any Multiemployer Plan for which there is any material
withdrawal liability. As of the most recent valuation date applicable thereto,
neither the Borrower nor any member of a Controlled Group has received notice
that any Multiemployer Plan is insolvent or in reorganization.

     Section 4.12 Insurance. The Borrower and each of its Subsidiaries carry
the insurance required pursuant to the provisions of Section 5.07.

     Section 4.13 No Burdensome Restrictions; No Defaults.

		
	 	     (a) Except in connection with Indebtedness which is either (i)
permitted pursuant to the provisions of Section 6.02, or (ii) being
repaid with the proceeds of the initial Borrowing, neither the Borrower
nor any of its Subsidiaries is a party to any indenture, loan or credit
agreement. Neither the Borrower, the Parent nor any of their respective
Subsidiaries is a party to any agreement or instrument or subject to any
charter or corporate restriction or provision of applicable law or
governmental regulation which could reasonably be expected to cause a
Material Adverse Change. Neither the Borrower, nor the Parent, nor their
respective Subsidiaries has entered into or suffered to exist any
agreement (other than the Senior Credit Facility, this Agreement and the
Credit Documents and as set forth in the Permitted Property Agreements
and the Permitted Housing Agreements) (i) prohibiting the creation or
assumption of any Lien upon the Properties of the Parent, the Borrower or
any of their respective Subsidiaries (except for Properties of and
Ownership Interests in the Permitted Other Subsidiaries), whether now
owned or hereafter acquired, or (ii) requiring an obligation to be
secured if some other obligation is or becomes secured.

		
	 	     (b) Neither the Borrower, the Parent nor any of their Subsidiaries
is in default under or with respect to any contract or agreement which
could reasonably be expected to cause a Material Adverse Change. Neither
the Borrower, the Parent nor any of their Subsidiaries has received any
notice of default under any material contract or agreement which is
continuing and which, if not cured, could reasonably be expected to cause
a Material Adverse Change.

		
	 	     (c) No Default has occurred and is continuing (or with respect to
the giving of this representation after the date of this Agreement, as
otherwise disclosed to the Administrative Agent in writing after the date
of this Agreement and prior to the date such representation is deemed
given).

     Section 4.14 Environmental Condition.

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	 	     (a) Except as disclosed in Schedule 4.14 (or with respect to the
giving of this representation after the date of this Agreement, as
otherwise disclosed to the Administrative Agent in writing after the date
of this Agreement and prior to the date such representation is deemed
given), to the knowledge of the Borrower, the Borrower, the Parent and
their respective Subsidiaries (i) have obtained all Environmental
Permits material for the operation of their respective Properties and the
conduct of their respective businesses; (ii) have been and are in
material compliance with all terms and conditions of such Environmental
Permits and with all other requirements of applicable Environmental Laws;
(iii) have not received notice of any violation or alleged violation of
any Environmental Law or Environmental Permit; and (iv) are not subject
to any actual or contingent Environmental Claim.

		
	 	     (b) Except as disclosed in Schedule 4.14, to the knowledge of
Borrower, no Property which is presently or previously owned or operated
by the Borrower, the Parent or of any of their respective present or
former Subsidiaries, wherever located, (i) has been placed on or proposed
to be placed on the National Priorities List, the Comprehensive
Environmental Response Compensation Liability Information System list, or
their state or local analogs, or have been otherwise investigated,
designated, listed, or identified as a potential site for removal,
remediation, cleanup, closure, restoration, reclamation, or other
response activity under any Environmental Laws which could reasonably be
expected to cause a Material Adverse Change; (ii) is subject to a Lien,
arising under or in connection with any Environmental Laws, that attaches
to any revenues or to any Property operated by the Borrower, the Parent
or any of their respective Subsidiaries, wherever located; (iii) has been
the site of any Release, use or storage of Hazardous Substances or
Hazardous Wastes from present or past operations except for Permitted
Hazardous Substances, which Permitted Hazardous Substances have not
caused at the site or at any third-party site any condition that has
resulted in or could reasonably be expected to result in the need for
Response or (iv) none of the Improvements are constructed on land
designated by any Governmental Authority having land use jurisdiction as
wetlands.

     Section 4.15 Legal Requirements, Zoning. Except as set forth on Schedule
4.15 attached hereto, the current use and operation of each Property which is
presently owned or operated by the Borrower, the Parent or of any of their
respective Subsidiaries, wherever located, (a) constitutes a legal use under
applicable zoning regulations (as the same may be modified by special use
permits or the granting of variances) and (b) complies in all material respects
with all Legal Requirements, and does not violate in any material respect any
material approvals, material restrictions of record or any material agreement
affecting any such Property (or any portion thereof) except for non-legal use
or non-compliance which in the aggregate would not cause a Material Adverse
Change. The Borrower, the Parent and their respective Subsidiaries possess all
certificates of public convenience, authorizations, permits, licenses, patents,
patent rights or licenses, trademarks, trademark rights, trade names rights and
copyrights (collectively “Permits”) required by Governmental Authority to own
or operate Properties, as applicable, the Properties they own or operate,
except for those Permits that if not obtained would not cause a Material
Adverse Change. The Borrower, the Parent and their respective Subsidiaries own
and operate their business in material compliance with all applicable Legal
Requirements except for non-compliance which in the aggregate would not cause a
Material Adverse Change.

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     Section 4.16 Existing Indebtedness and Interest Rate Agreements; Solvency.

		
	 	     (a) Except for the Obligations, the only Indebtedness or Interest
Rate Agreements of the Borrower or any of its Subsidiaries existing as of
the Effective Date is the Senior Credit Facility and those set forth on
Schedule 4.16 attached hereto. No “default” or “event of default”,
however defined, has occurred and is continuing under the Senior Credit
Facility or any such Indebtedness or Interest Rate Agreement (or with
respect to the giving of this representation after the date of this
Agreement, as otherwise disclosed to the Administrative Agent in writing
after the date of this Agreement and prior to the date such
representation is deemed given).

		
	 	     (b) To the best of the Borrower’s knowledge, (i) the fair value and
present fair saleable value on a going concern basis of the Property of
the Parent, the Borrower and their respective Subsidiaries, on a
Consolidated basis, exceeds the amount that will be required to pay the
probable liabilities of such Persons, on a Consolidated basis, on their
Indebtedness, as such Indebtedness becomes absolute and matured, (ii) the
Parent, the Borrower and their respective Subsidiaries, on a Consolidated
basis, will have sufficient cash flow to enable them to pay their debts
as they mature, and (iii) the Parent, the Borrower and their respective
Subsidiaries, on a Consolidated basis, are able to pay their Indebtedness
as it matures in the normal course of business.

     Section 4.17 Leasing Arrangements. The only material leases for which
either the Borrower or a Guarantor is a lessee are the Existing Participating
Leases and office leases. The Existing Participating Leases are in full force
and effect; no monetary defaults by the Borrower or any Guarantor, or to the
actual knowledge of the Borrower by any other party thereto, exist thereunder;
and no other defaults by the Borrower or any Guarantor, or to the actual
knowledge of the Borrower by any other party thereto, exist thereunder which
could reasonably be expected to cause a Material Adverse Change (or with
respect to the giving of this representation after the date of this Agreement,
as otherwise disclosed to the Administrative Agent in writing after the date of
this Agreement and prior to the date such representation is deemed given).

     Section 4.18 Management Agreements. The only management agreements for
which either the Borrower or a Guarantor is a manager are the Existing
Management Agreements. The Existing Management Agreements are in full force
and effect; no monetary defaults by the Borrower or any Guarantor, or to the
actual knowledge of the Borrower by any other party thereto, exist thereunder;
and no other defaults by the Borrower or any Guarantor, or to the actual
knowledge of the Borrower by any other party thereto, exist thereunder which
could reasonably be expected to cause a Material Adverse Change (or with
respect to the giving of this representation after the date of this Agreement,
as otherwise disclosed to the Administrative Agent in writing after the date of
this Agreement and prior to the date such representation is deemed given). The
Existing Management Agreements with MHC and MHC’s Subsidiaries do not provide
for any performance standards for the year 2002.

     Section 4.19 Intercompany Agreement. The Intercompany Agreement is in
full force and effect and no material defaults by the Borrower or any
Guarantor, or to the actual knowledge of the Borrower by any other party
thereto, exist thereunder (or with respect to the giving of this

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 representation after the date of this Agreement, as otherwise disclosed to
the Administrative Agent in writing after the date of this Agreement and prior
to the date such representation is deemed given).

     Section 4.20 Franchise Agreements. The only franchise agreements or
license agreements to which the Borrower or a Guarantor are a party are those
certain agreements disclosed to the Administrative Agent in writing. Any such
franchise and license agreements are in full force and effect and no material
defaults by the Borrower or any Subsidiary exist thereunder (or with respect to
the giving of this representation after the date of this Agreement, as
otherwise disclosed to the Administrative Agent in writing after the date of
this Agreement and prior to the date such representation is deemed given).

     Section 4.21 Owned Hospitality Properties. Except as set forth on
Schedule 4.21 attached hereto, neither the Borrower, the Parent nor of any of
their respective Subsidiaries owns any Owned Hospitality Properties; provided
that such Persons do own Ownership Interests in Unconsolidated Entities which
own Owned Hospitality Properties. None of the Owned Hospitality Properties have
been or are subject to a condemnation proceeding or a casualty which
individually or in the aggregate could cause a Material Adverse Change.

     Section 4.22 Approved Inter-Company Indebtedness. The only inter-company
Indebtedness between the Parent, the Borrower and any of their respective
Subsidiaries is the Approved Inter-Company Indebtedness. The Approved
Inter-Company Indebtedness Loan Documents listed on Schedule 1.01(b) are all of
the documents evidencing or securing the Approved Inter-Company Indebtedness or
executed by the applicable parties in connection with the Approved
Inter-Company Indebtedness. The Borrower has provided the Administrative Agent
with a true, correct and complete copy of the Approved Inter-Company
Indebtedness Loan Documents and such documents have not been amended or
modified except as set forth in Schedule 1.01(b). The outstanding amount of the
Approved Inter-Company Indebtedness as of the date hereof is set forth on
Schedule 1.01(b).

     Section 4.23 Insurance Business.

		
	 	     (a) Insurance Companies, Insurance Licenses and Deposited
Securities. Each Insurance Company as of July 31, 2002, is listed in
Schedule 4.23(a). Schedule 4.23(a) hereto lists, as of July 31, 2002,
all of the jurisdictions in which each Insurance Company holds a
Insurance License and is authorized to transact insurance business as of
the Closing Date and the line or lines of insurance in which each
Insurance Company is engaged. No Insurance License held by any Insurance
Company, the loss of which could reasonably be expected to cause a
Material Adverse Change, is the subject of a proceeding for suspension or
revocation. To the knowledge of the Borrower, the Parent or any of their
respective Subsidiaries, there is not a sustainable basis for such
suspension or revocation, and no such suspension or revocation has been
threatened by any Governmental Authority. Each of the Insurance Companies
has filed all reports, statements, documents, registrations, filings or
submissions required to be filed by it with any applicable Governmental
Authority, which filings conform in all material respects to any
applicable Legal Requirements, except where the failure to so file or
conform could

-47-

 

		
	 	not, individually or in the aggregate, be reasonably expected to
cause a Material Adverse Change. Schedule 4.23(a) sets forth a true,
correct and complete listing of all securities deposited with state
insurance departments and other Governmental Authority, which deposits
have been completed in accordance with the schedule of deposits set forth
in each Insurance Company’s September 30, 2002 Insurance Annual
Statement. There have been no changes in or additions to the information
set forth on Schedule 4.23(c) since July 31, 2002 or September 30, 2002,
as applicable, that could reasonably be expected to cause a Material
Adverse Change.

		
	 	     (b) SAP Financial Statements, Examination Reports and Loss Runs.
The Borrower has previously delivered to the Administrative Agent for
distribution to each of the Lenders true and complete copies of the SAP
Financial Statements as filed with the domiciliary state insurance
departments of each Insurance Company as of and for the years ended
December 31, 2001, 2000 and 1999, prepared in compliance with GAAP. Each
of the SAP Financial Statements fairly presents in all material respects
the results of operations of the applicable Insurance Company for the
period therein set forth, in each case in accordance with SAP. The
schedules included in the SAP Financial Statements, when considered in
relation to the basic statutory financial statements included therein,
present fairly in all material respects the information shown therein.
Each of the SAP Financial Statements was correct in all material respects
when filed and did not omit to state any material facts required to be
stated or necessary in order to make the SAP Financial Statements not
misleading.

		
	 	     (c) Investment Portfolios. The Borrower has previously delivered to
the Administrative Agent for distribution to each of the Lenders true and
complete lists as of December 31, 2001 of all assets held in the
investment portfolios of the Insurance Companies. None of the
investments included in such investment portfolios is in default with
respect to the payment of principal, interest or dividends thereon or is
materially impaired. All such investments comply with all applicable
Legal Requirements except for non-compliance which in the aggregate would
not cause a Material Adverse Change. Each Insurance Company owns assets
which qualify as admitted assets under applicable state insurance Legal
Requirements in an amount at least equal to the sum of all of its
Insurance Reserve Liabilities and minimum statutory capital and Insurance
Surplus reflected on the latest SAP Financial Statements.

		
	 	     (d) Insurance Reserve Liabilities and Adequate Provisions. All
Insurance Reserve Liabilities as established or reflected in the SAP
Financial Statements (i) were determined in accordance with generally
accepted actuarial standards consistently applied, (ii) are fairly stated
in accordance with sound actuarial principles, (iii) are based on
actuarial assumptions that are in accordance with those called for by the
relevant Insurance Contract and the related Reinsurance Contract and (iv)
meet in all material respects the requirements of all applicable
insurance Legal Requirements. Adequate provision for such Insurance
Reserve Liabilities has been made (under generally accepted actuarial
principles consistently applied) to cover the total amount of all
reasonably anticipated matured and unmatured benefits, dividends, claims
and other liabilities of the Insurance Companies under all Insurance
Contracts and Reinsurance Contracts on the

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	 	date of such SAP Financial Statement based on then current
information that forms a reasonable basis for such determination. Each
of the Insurance Companies owns assets that qualify as legal reserve
assets under applicable insurance Legal Requirements in an amount at
least equal to all of such Insurance Company’s Insurance Reserve
Liabilities. Adequate provision has been made for all estimated losses,
settlements, costs and expenses from pending suits, actions and
proceedings contemplated by the SAP Financial Statements.

		
	 	     (e) Insurance Contracts and Reinsurance Contracts. Each outstanding
Insurance Contract issued, reinsured or underwritten by an Insurance
Company as of July 31, 2002 is listed in Schedule 4.23(e), together with
the maximum amount payable by an Insurance Company thereunder. All
outstanding Reinsurance Contracts with respect to such Insurance
Contracts as of July 31, 2002 are listed in Schedule 4.23(e), together
with the maximum amount payable by an Insurance Company thereunder. All
Insurance Contracts, Reinsurance Contracts and any and all marketing
materials are, to the extent required under applicable Legal
Requirements, on forms approved by the insurance regulatory authority of
the jurisdiction where issued or filed and have not been objected to by
such authority within the period provided for objection and have been
filed or registered as required with all other applicable Governmental
Authorities. As to premium rates established by each Insurance Company
and required to be filed or approved, the premiums charged comply with
the applicable Legal Requirements. In addition, there is no pending or,
to the knowledge of the Borrower, the Parent or any of their respective
Subsidiaries, threatened charge by any insurance regulatory authority
that any of the Insurance Companies has violated, nor any pending or, to
the knowledge of the Borrower, the Parent or any of their respective
Subsidiaries, threatened investigation by any insurance regulatory
authority with respect to possible violations of, any applicable Legal
Requirements where such violations would, individually or in the
aggregate, cause a Material Adverse Change. All Insurance Contracts and
Reinsurance Contracts have been marketed, sold and issued in compliance
with all applicable Legal Requirements, except as could not reasonably be
expected to cause a Material Adverse Change, including, without
limitation, in compliance with (i) all applicable prohibitions against
“redlining” or withdrawal of business lines, (ii) all applicable
requirements relating to the disclosure of the nature of insurance
products as policies of insurance and (iii) all applicable requirements
relating to insurance product projections and illustrations. There have
been no changes in or additions to the information set forth in Schedule
4.23(e) that could reasonably be expected to cause Material Adverse
Change.

		
	 	     (f) Payment of Benefits. All benefits payable with respect to each
Insurance Contract by a Insurance Company or, to the knowledge of the
Borrower, the Parent or any of their respective Subsidiaries, by any
other person that is a party to or bound by such Insurance Contract, have
in all material respects been paid in accordance with the terms of such
Insurance Contract. All benefits payable with respect to each Reinsurance
Contract, have in all material respects been paid in accordance with the
terms of such Reinsurance Contract.

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	 	     (g) Notice of Likely Defaults. No Insurance Company has received
any written, or to the knowledge of the Borrower, the Parent or any of
their respective Subsidiaries, oral information that would cause it to
believe that the financial condition of any other party to any Insurance
Contract or Reinsurance Contract is so impaired as to be reasonably
likely to result in a default by such party under such contract which
could reasonably be expected to cause a Material Adverse Change.

     Section 4.24 Permitted Housing Business Leasing. Schedule 4.24 sets forth
a true and accurate summary of the Units currently leased by the Parent and the
Parent’s Subsidiaries’ as of July 31, 2002, together with (a) a description of
the market for such Units, (b) the breakdown of whether the term of the
applicable lease of such Units is less than or equal to 1 year, greater than 1
year but less than 5 years, or equal to or greater than 5 years, and (c) the
occupancy level by market for such Units as of the Effective Date. There have
been no changes in or additions to the information set forth in Schedule 4.24
that could reasonably be expected to cause Material Adverse Change.

ARTICLE V

AFFIRMATIVE COVENANTS

     So long as any Note or any amount under any Credit Document shall remain
unpaid, the Borrower agrees to comply with the following covenants.

     Section 5.01 Compliance with Laws. The Borrower will comply, and cause
the Parent and each of its Subsidiaries to comply, in all material respects
with all Legal Requirements.

     Section 5.02 Preservation of Existence; Separateness, Etc.

		
	 	     (a) The Borrower will preserve and maintain, and cause each of its
Subsidiaries to preserve and maintain, its partnership, limited liability
company or corporate (as applicable) existence, rights, franchises and
privileges in the jurisdiction of its formation, and qualify and remain
qualified, and cause each such Subsidiary to qualify and remain
qualified, as a foreign partnership, corporation or limited liability
company, as applicable in each jurisdiction in which qualification is
necessary or desirable in view of its business and operations or the
ownership of its properties, and, in each case, where failure to qualify
or preserve and maintain its rights and franchises could reasonably be
expected to cause a Material Adverse Change.

		
	 	     (b) The Parent common stock shall at all times be duly listed on the
New York Stock Exchange, Inc. and (ii) the Parent shall timely file all
reports required to be filed by it with the New York Stock Exchange, Inc.
and the Securities and Exchange Commission.

		
	 	     (c) The Borrower shall cause the Permitted Other Subsidiaries which
have Indebtedness to, (i) maintain financial statements, accounting
records and other corporate records and other documents separate from all
non-Permitted Other Subsidiaries, (ii) maintain their own bank accounts
in their own name, separate from all non-Permitted Other Subsidiaries,
(iii) pay their own expenses and other liabilities from their own assets

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	 	and incur (or endeavor to incur) obligations to other Persons based
solely upon their own assets and creditworthiness and not upon the
creditworthiness of each other or any other Person, and (iv) file their
own tax returns or, if part of a consolidated group, join in the
consolidated tax return of such group as a separate member thereof.

		
	 	     (d) The Borrower shall, and shall cause the Permitted Other
Subsidiaries which have Indebtedness to, take all actions necessary to
keep such Permitted Other Subsidiaries, separate from the Borrower and
the Borrower’s other Subsidiaries, including, without limitation, (i) the
taking of action under the direction of the Board of Directors, members
or partners, as applicable, of such Permitted Other Subsidiaries and, if
so required by the Certificate of Incorporation or the Bylaws, operating
agreement or partnership agreement, as applicable, of such Permitted
Other Subsidiaries or by any Legal Requirement, the approval or consent
of the stockholders, members or partners, as applicable, of such
Permitted Other Subsidiaries, (ii) the preparation of corporate,
partnership or limited liability company minutes for or other appropriate
evidence of each significant transaction engaged in by such Permitted
Other Subsidiaries, (iii) the observance of separate approval procedures
for the adoption of resolutions by the Board of Directors or consents by
the partners, as applicable, of such Permitted Other Subsidiaries, on the
one hand, and of the Borrower and the Borrower’s other Subsidiaries, on
the other hand, and (iv) preventing the cash, cash equivalents, credit
card receipts or other revenues of the Hospitality Properties owned by
such Permitted Other Subsidiaries or any other assets of such Permitted
Other Subsidiaries from being commingled with the cash, cash equivalents,
credit card receipts or other revenues collected by the Borrower or the
Borrower’s other Subsidiaries.

		
	 	     (e) The Borrower shall take all steps reasonably necessary to avoid
(i) misleading any other Person as to the identity of the entity with
which such Person is transacting business or (ii) implying that the
Borrower is, directly or indirectly, absolutely or contingently,
responsible for the Indebtedness or other obligations of the Permitted
Other Subsidiaries or any other Person.

     Section 5.03 Payment of Taxes, Etc. The Borrower will pay and discharge,
and cause each of its Subsidiaries to pay and discharge, before the same shall
become delinquent (a) all taxes, assessments and governmental charges or levies
imposed upon it or upon its income or profits or Property that are material in
amount, prior to the date on which penalties attach thereto and (b) all lawful
claims that are material in amount which, if unpaid, might by Legal Requirement
become a Lien upon its Property; provided, however, that neither the Borrower
nor any such Subsidiary shall be required to pay or discharge any such tax,
assessment, charge, levy, or claim (a) which is being contested in good faith
and by appropriate proceedings, (b) with respect to which reserves in
conformity with GAAP have been provided, (c) such charge or claim does not
constitute and is not secured by any choate Lien on any portion of any Owned
Hospitality Property and no portion of any Owned Hospitality Property is in
jeopardy of being sold, forfeited or lost during or as a result of such
contest, (d) neither the Administrative Agent nor any Lender could become
subject to any civil fine or penalty or criminal fine or penalty, in each case
as a result of non-payment of such charge or claim and (e) such contest does
not, and could not reasonably be expected to, result in a Material Adverse
Change.

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     Section 5.04 Visitation Rights; Lender Meeting. Subject to the rights of
the owners of the Hospitality Properties for which there are Permitted Property
Agreements, at any reasonable time and from time to time and so long as any
visit or inspection will not unreasonably interfere with the Borrower’s or any
of its Subsidiary’s operations, upon reasonable notice, the Borrower will
permit the Administrative Agent and any Lender or any of its agents or
representatives thereof, to examine and make copies of and abstracts from the
records and books of account of, and visit and inspect at its reasonable
discretion the Properties owned or operated by the Borrower and any of its
Subsidiaries, to discuss the affairs, finances and accounts of such Persons
with any of their respective officers or directors. Without in any way
limiting the foregoing, the Borrower will, upon the request of the
Administrative Agent, participate in a meeting with the Administrative Agent
and the Lenders once during each calendar year to be held at the Borrower’s
office in the District of Columbia or Dallas, Texas (or such other location as
may be agreed to by the Borrower and the Administrative Agent) at such time as
may be agreed to by the Borrower and the Administrative Agent.

     Section 5.05 Reporting Requirements. The Borrower will furnish to the
Administrative Agent, with respect to those items set forth in clauses (a)-(c)
and (i), and each Lender:

		
	 	     (a) Quarterly Financials. As soon as available and in any event not
later than 50 days after the end of each Fiscal Quarter of the Parent
(except for the Fiscal Quarter which ends on the date the Fiscal Year
ends), the unaudited Consolidated balance sheets of the Parent and its
Subsidiaries as of the end of such quarter and the related unaudited
statements of income, shareholders’ equity and cash flows of the Parent
and its Subsidiaries for such Fiscal Quarter and the period commencing at
the end of the previous year and ending with the end of such Fiscal
Quarter, and the corresponding figures as at the end of, and for, the
corresponding periods in the preceding Fiscal Year, all duly certified
with respect to such statements (subject to year-end audit adjustments)
by a Responsible Officer of the Parent as having been prepared in
accordance with GAAP, together with (i) a Compliance Certificate duly
executed by a Responsible Officer of the Parent; provided that the
Parent’s Total Indebtedness used to calculate the Leverage Ratio and the
Senior Leverage Ratio in such Compliance Certificate shall be the
Parent’s Total Indebtedness as of the Status Reset Date during the Fiscal
Quarter in which such Compliance Certificate was delivered, and (ii) a
report certified by a Responsible Officer of the Parent setting forth for
each Hospitality Property owned or operated by the Parent or any of its
Subsidiaries as of the end of such Fiscal Quarter the Adjusted EBITDA for
such Hospitality Property for the Rolling Period then ended, both in
total and by Fiscal Quarter for such Rolling Period; provided that for
those Hospitality Properties for which the Parent or any of its
Subsidiaries is only a manager, the Borrower shall only be obligated to
use the Borrower’s commercially reasonable efforts to provide the
information required by this clause (ii) and shall not be obligated to
disclose any confidential information.

		
	 	     (b) Annual Financials. As soon as available and in any event not
later than 95 days after the end of each Fiscal Year of the Parent, a
copy of the Consolidated balance sheets of the Parent and its
Subsidiaries as of the end of such Fiscal Year and the related
Consolidated statements of income, shareholders’ equity and cash flows of
the Parent and

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	 	its Subsidiaries for such Fiscal Year, and the corresponding figures
as at the end of, and for, the preceding Fiscal Year, and audited and
certified by KPMG, L.L.P. or other independent certified public
accountants of nationally recognized standing reasonably acceptable to
the Administrative Agent in an opinion, without qualification as to the
scope, and including, if requested by the Administrative Agent, any
management letters delivered by such accountants to the Parent in
connection with such audit, together with (i) the documents required in
clauses (i) and (ii) of the preceding Section 5.05(a) and (ii) a
certificate duly executed by a Responsible Officer of the Parent which
reflects in detail reasonably acceptable to the Administrative Agent the
financial performance of the applicable Person related to the financial
covenants contained in the documentation for any Permitted Other
Indebtedness. As soon as available and in any event not later than 50
days after the end of each Fiscal Year of the Parent, the Borrower will
furnish to the Administrative Agent a draft Compliance Certificate duly
executed by a Responsible Officer of the Parent for such end of Fiscal
Year financial statements.

		
	 	     (c) Securities Law Filings. Promptly and in any event within 15
days after the sending or filing thereof, copies of all proxy material,
reports and other information which the Borrower, the Parent or any of
their respective Subsidiaries sends to or files with the United States
Securities and Exchange Commission or sends to all of the shareholders of
the Parent or partners of the Borrower.
	 
	 	     (d) Defaults. As soon as possible and in any event within five days
after the occurrence of each Default known to a Responsible Officer of
the Parent, the Borrower or any of their respective Subsidiaries, a
statement of an authorized financial officer or Responsible Officer of
the Borrower setting forth the details of such Default and the actions
which the Borrower has taken and proposes to take with respect thereto.
	 
	 	     (e) ERISA Notices. As soon as possible and in any event (i) within
30 days after the Parent, the Borrower or any of a Controlled Group knows
to know that any Termination Event described in clause (a) of the
definition of Termination Event with respect to any Plan has occurred,
(ii) within 10 days after the Parent, the Borrower or any of a Controlled
Group knows that any other Termination Event with respect to any Plan has
occurred, a statement of the Chief Financial Officer of the Parent
describing such Termination Event and the action, if any, which the
Parent, the Borrower or such member of such Controlled Group proposes to
take with respect thereto; (iii) within 10 days after receipt thereof by
the Parent, the Borrower or any of a Controlled Group from the PBGC,
copies of each notice received by the Parent, the Borrower or any such
member of such Controlled Group of the PBGC’s intention to terminate any
Plan or to have a trustee appointed to administer any Plan; and (iv)
within 10 days after receipt thereof by the Parent, the Borrower or any
member of a Controlled Group from a Multiemployer Plan sponsor, a copy of
each notice received by the Parent, the Borrower or any member of such
Controlled Group concerning the imposition or amount of withdrawal
liability pursuant to Section 4202 of ERISA.
	 
	 	     (f) Environmental Notices. Promptly upon the knowledge of any
Responsible Officer of the Borrower of receipt thereof by the Borrower or
any of its Subsidiaries, a

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	 	copy of any form of notice, summons or citation received from the
United States Environmental Protection Agency, or any other Governmental
Authority concerning (i) violations or alleged violations of
Environmental Laws, which seeks to impose liability therefor, (ii) any
action or omission on the part of the Parent or the Borrower or any of
their present or former Subsidiaries in connection with Hazardous Waste
or Hazardous Substances which, based upon information reasonably
available to the Borrower, could reasonably be expected to cause a
Material Adverse Change or an Environmental Claim in excess of
$1,000,000, (iii) any notice of potential responsibility under CERCLA, or
(iv) concerning the filing of a Lien upon, against or in connection with
the Parent, Borrower, their present or former Subsidiaries, or any of
their leased, owned or operated Property, wherever located.
	 
	 	     (g) Other Governmental Notices or Actions. Promptly and in any
event within five Business Days after receipt thereof by the Parent,
Borrower or any of their respective Subsidiaries, (i) a copy of any
notice, summons, citation, or proceeding seeking to adversely modify in
any material respect, revoke, or suspend any license, permit, or other
authorization from any Governmental Authority, which action could
reasonably be expected to cause a Material Adverse Change, and (ii) any
revocation or involuntary termination of any license, permit or other
authorization from any Governmental Authority, which revocation or
termination could reasonably be expected to cause a Material Adverse
Change.
	 
	 	     (h) Reports Affecting the Leverage Ratio and the Senior Leverage
Ratio. On or prior to the 15th day following any Adjustment Event, an
Adjustment Report with respect to such Adjustment Event.
	 
	 	     (i) Press Releases. Promptly and in any event within 5 days after
the sending or releasing thereof, copies of all press releases or other
releases of information to the public by the Borrower, the Parent or any
of their respective Subsidiaries or releases of information to the
Parent’s shareholders.
	 
	 	     (j) Corporate Activity. Promptly following any merger or
dissolution of any Subsidiary of the Borrower which is permitted
hereunder or event which would make any of the representations in Section
4.01-4.04 untrue, notice thereof.
	 
	 	     (k) Material Litigation. As soon as possible and in any event
within five days of any Responsible Officer of the Borrower, the Parent
or any of their respective Subsidiaries having knowledge thereof, notice
of any litigation, claim or any other event which could reasonably be
expected to cause a Material Adverse Change.
	 
	 	     (l) Operating Information. As soon as available and in any event
not later than 50 days after the end of each Fiscal Quarter of the
Parent, the Borrower shall provide the Administrative Agent (for
distribution to the Lenders) liquidity, cash flow and summary operating
information for such fiscal month and detailed information related to the
Borrower’s Permitted Housing Business and Permitted Property

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	 	Agreements, with all such information prepared by the Borrower in a
form reasonably satisfactory to the Required Lenders.
	 
	 	     (m) Insurance Information. As soon as available and in any event
not later than 95 days after the end of each Fiscal Year of the Parent,
the Borrower shall provide the Administrative Agent copies of the
unaudited Insurance Annual Statement of each Insurance Company, certified
by a Responsible Officer of the Parent as fairly presenting the financial
condition and results of operations of such Insurance Company in
accordance with SAP consistently applied throughout the periods reflected
therein. As soon as available and in any event not later than 50 days
after the end of each Fiscal Quarter of the Parent, the Borrower shall
provide the Administrative Agent with a schedule of the Insurance
Contracts and Reinsurance Contracts existing as of the last day of such
Fiscal Quarter, together with the maximum amount payable by the Insurance
Company thereunder. Within 10 days of request by the Administrative
Agent, the most recent examination reports and loss run sheets of the
Insurance Companies.
	 
	 	     (n) Budget. On or prior to January 31st of each Fiscal Year, the
Borrower shall provide the Administrative Agent (for distribution to the
Lenders) an operating budget for the Parent and its Subsidiaries on a
Consolidated basis for such Fiscal Year, including without limitation pro
forma balance sheet, income statement, cash flow and financial covenant
compliance.
	 
	 	     (o) Other Information. Such other information respecting the
business or Properties, or the condition or operations, financial or
otherwise, of the Borrower, the Parent or any of their respective
Subsidiaries, as any Lender through the Administrative Agent may from
time to time reasonably request.

     Section 5.06 Maintenance of Property. The Borrower will, and will cause
each of the Parent and its Subsidiaries to (a) maintain their Owned Hospitality
Properties in a manner consistent for Hospitality Properties and related
property of the same quality and character and shall keep or cause to be kept
every part thereof and its other properties in good condition and repair,
reasonable wear and tear excepted, and make all reasonably necessary repairs,
renewals or replacements thereto as may be reasonably necessary to conduct the
business of the Borrower and its Subsidiaries, (b) not knowingly or willfully
permit the commission of waste or other injury, or the occurrence of pollution,
contamination or any other condition in, on or about any of their Owned
Hospitality Properties, (c) substantially maintain and repair each of their
Owned Hospitality Properties as required by any franchise agreement, license
agreement, management agreement or ground lease for such Owned Hospitality
Property, and (d) perform such Person’s obligations under the Permitted
Property Agreements and the Permitted Housing Agreements to which such Person
is a party except where the non-performance thereof in the aggregate would not
reasonably be expected to cause a Material Adverse Change.

     Section 5.07 Insurance. The Borrower will maintain, and cause each of its
Subsidiaries to maintain, the insurance required pursuant to Schedule 5.07.

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     Section 5.08 Use of Proceeds. The proceeds of the Loan shall be used by
the Borrower for the purposes set forth in Section 4.08.

     Section 5.09 Intentionally Deleted.

     Section 5.10 New Subsidiaries. Except with respect to a Permitted Other
Subsidiary that has incurred or issued Permitted Other Indebtedness, within ten
(10) Business Days after either (a) the date that any Subsidiary of the Parent
that was not a Material Subsidiary becomes a Material Subsidiary, or (b) the
purchase by the Parent or any of its Subsidiaries of the Ownership Interests of
any Person, which purchase results in such Person becoming a Material
Subsidiary the Parent shall, in each case, cause (i) such Material Subsidiary
to execute and deliver to the Administrative Agent a Guaranty or an Accession
Agreement and (ii) the Persons who are party to the documents delivered
pursuant to the provisions of this Section 5.10 to provide such evidence of
authority to enter into such documents as the Administrative Agent may
reasonably request.

     Section 5.11 Insurance Business.

		
	 	     (a) The Borrower will cause each of the Insurance Companies to (i)
carry on and conduct its business only in substantially the same manner
and in substantially the same fields of enterprise as it is presently
conducted, (ii) only engage in the insurance business or the business of
a holding company owning entities engaged in the insurance business or
the business of insurance or reasonably incidental activities, (iii) do
all things necessary to renew, extend and continue in effect all
Insurance Licenses which may at any time and from time to time be
necessary for each Insurance Company to conduct business in compliance
with all applicable Legal Requirements, including, if applicable, the
filing of all appropriate Insurance Annual Statements and SAP Financial
Statements; provided, that each Insurance Company may withdraw from one
or more states (other than its state of domicile) as an admitted insurer
if such withdrawal is determined by the Insurance Company’s Board of
Directors to be in the best interest of the Insurance Companies and could
not reasonably be expected to cause a Material Adverse Change.

		
	 	     (b) The Borrower will not permit the Insurance Surplus, as of the
last day of each Fiscal Quarter, to be less than that required by
applicable Legal Requirements. The Borrower will not permit the maximum
amount payable by all Insurance Companies under Insurance Contracts or
Reinsurance Contracts, as of the last day of each Fiscal Quarter, to be
greater than $10,000,000.

     Section 5.12 Interest Rate Agreements. From the Closing Date until the
Maturity Date, the Borrower shall cause the Parent to obtain and thereafter
maintain Interest Rate Agreements reasonably satisfactory to the Administrative
Agent, sufficient to ensure that 50% of the Parent’s Total Indebtedness,
measured as of each day during such period, shall be covered by such Interest
Rate Agreements or shall have a fixed rate of interest. Any Interest Rate
Agreements for the Parent shall be provided by either a Senior Lender (to the
extent permitted under and as provided in the Senior Credit Facility or a bank
or other financial institution whose long-term debt rating is equal to or
greater than “A”.

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ARTICLE VI

NEGATIVE COVENANTS

     So long as any Note or any amount under any Credit Document shall remain
unpaid, or any Lender shall have any Commitment, the Borrower agrees to comply
with the following covenants.

     Section 6.01 Liens, Etc. The Borrower, the Parent and their respective
Subsidiaries will not create, assume, incur or suffer to exist, any Lien on or
in respect of any of its Property whether now owned or hereafter acquired, or
assign any right to receive income, except that the Borrower and its
Subsidiaries may create, incur, assume or suffer to exist Liens:

		
	 	     (a) securing the Senior Obligations under the Senior Credit Facility
in accordance with its terms or the obligations under any Additional
Designated Senior Indebtedness;
	 
	 	     (b) for taxes, assessments or governmental charges or levies on
Property of the Borrower or any Guarantor to the extent not required to
be paid pursuant to Sections 5.03;
	 
	 	     (c) imposed by law (such as landlords’, carriers’, warehousemen’s
and mechanics’ liens or otherwise arising from litigation) (i) which are
being contested in good faith and by appropriate proceedings, (ii) with
respect to which reserves in conformity with GAAP have been provided,
(iii) which have not resulted in any Collateral being in jeopardy of
being sold, forfeited or lost during or as a result of such contest, (iv)
neither the Administrative Agent nor any Lender could become subject to
any civil fine or penalty or criminal fine or penalty, in each case, as a
result of non-payment of such charge or claim and (v) such contest does
not, and could not reasonably be expected to, result in a Material
Adverse Change;
	 
	 	     (d) on leased personal property to secure solely the lease
obligations associated with such property;
	 
	 	     (e) on the Property of or Ownership Interests in a Permitted Other
Subsidiary securing Indebtedness set forth in paragraph (b) of the
definition of “Permitted Other Indebtedness” incurred by such Permitted
Other Subsidiary to the extent such Indebtedness is permitted pursuant to
the provisions of Section 6.02;
	 
	 	     (f) on the Ownership Interests in an Unconsolidated Entity securing
Permitted Non-Recourse Unconsolidated Entity Indebtedness incurred by
such Unconsolidated Entity;
	 
	 	     (g) granted to the owner of a Hospitality Property subject to a
Permitted Property Agreement on the accounts receivable, inventory, cash
or other property owned by the Borrower or the Borrower’s Subsidiary in
connection with such Hospitality Property;

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	 	     (h) on the Collateral (or on other assets of the Parent and its
Subsidiaries which are approved by the Senior Administrative Agent as
additional security for the Senior Obligations) to secure Additional
Designated Senior Indebtedness, provided that such Liens (i) also secure
the Senior Obligations on an equal and ratable basis with such
Indebtedness, and (ii) if not already granted by the Senior Security
Document, then are granted pursuant to documentation (including
documentation granting Liens to secure the Senior Obligations on an equal
and ratable basis) reasonably acceptable to the Senior Administrative
Agent and the Borrower; and
	 
	 	     (i) easements, rights of way, covenants, restrictions, zoning and
similar restrictions and other similar charges or encumbrances not
interfering with the ordinary conduct of the business of the Borrower or
its Subsidiaries and which do not detract materially from the value of
any of the Owned Hospitality Properties to which they attach or impair
materially the use thereof by the Borrower or the Borrower’s
Subsidiaries.

     Section 6.02 Indebtedness. The Borrower, the Parent and their respective
Subsidiaries will not incur or permit to exist any Indebtedness other than the
Obligations and the following:

		
	 	     (a) Permitted Other Indebtedness in an amount that does not cause a
breach at any time of the covenants contained in Article VII;
	 
	 	     (b) Capital Leases for Personal Property;
	 
	 	     (c) Interest Rate Agreements; provided that (i) such agreements
shall be unsecured except as provided in the Senior Credit Facility and
the Senior Security Documents, (ii) the dollar amount of indebtedness
subject to such agreements and the indebtedness subject to Interest Rate
Agreements in the aggregate shall not exceed the sum of the amount of the
Senior Commitments and the amount of the other Indebtedness of the
Borrower or its Affiliates which bears interest at a variable rate, and
(iii) the agreements shall be at such interest rates and otherwise in
form and substance reasonably acceptable to the Senior Administrative
Agent or, if the Senior Credit Facility has been repaid in full and has
been terminated, the Administrative Agent;
	 
	 	     (d) Any of the following Indebtedness incurred by the Parent or the
Borrower:

		
	 	     (i) guaranties in connection with Permitted Other Indebtedness
secured by an Owned Hospitality Property or interest in a Person
owning a Hospitality Property of (A) if the Hospitality Property is
subject to a ground lease, the payment of rent and performance of
obligations under such ground lease, (B) real estate taxes relating
to such Hospitality Property, and (C) capital reserves required
under such Indebtedness;
	 
	 	     (ii) customary indemnities for acts of malfeasance,
misappropriation and misconduct and an environmental indemnity for
the lender under Indebtedness permitted under this Agreement;

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	 	     (iii) guaranties of franchise and license agreements in
connection with Hospitality Properties; and
	 
	 	     (iv) guaranties of obligations of the Parent’s Subsidiaries or
Unconsolidated Entities with respect to Permitted Property
Agreements and Permitted Housing Agreements; and

		
	 	     (e) extensions, renewals and refinancing of any of the Indebtedness
specified in paragraphs (a)-(d) above so long as the principal amount
of such Indebtedness is not thereby increased.

     Section 6.03 Agreements Restricting Distributions From Subsidiaries. The
Borrower will not, nor will it permit any of its Subsidiaries (other than
Permitted Other Subsidiaries) to, enter into any agreement (other than a Credit
Document) which limits distributions to or any advance by any of the Borrower’s
Subsidiaries to the Borrower.

     Section 6.04 Restricted Payments. Neither the Parent, nor the Borrower,
nor any of their respective Subsidiaries, will make any Restricted Payment,
except that:

		
	 	     (a) provided that no Default has occurred and is continuing or would
result therefrom, the Borrower shall be entitled to make cash
distributions to its partners, including the Parent, which distributions
for partners other than the Parent and the Parent’s Subsidiaries do not
in the aggregate in any Fiscal Year exceed $100,000;
	 
	 	     (b) a Subsidiary of the Borrower may make a Restricted Payment to
the Borrower;
	 
	 	     (c) the limited partners of the Borrower shall be entitled to
exchange limited partnership interests in the Borrower for the Parent’s
common stock;
	 
	 	     (d) the Parent or the Borrower shall be entitled to make a one-time
payment to Wyndham of approximately $450,000 to redeem Wyndham’s
interest in Interstate Hotels, LLC;
	 
	 	     (e) provided that no Default has occurred and is continuing or would
result therefrom, the Parent or the Borrower shall be entitled to make
payments to repay the Designated Redemption Indebtedness if such Person
is contractually obligated to make such repayment at such time;
	 
	 	     (f) the Borrower shall be entitled to issue limited partnership
interests in the Borrower in exchange for Ownership Interests in
Subsidiaries and Unconsolidated Entities to the extent such Investment is
permitted pursuant to the provisions of Section 6.06;
	 
	 	     (g) provided that no monetary Default or Default in the covenants
set forth in Article VII has occurred and is continuing or would result
therefrom, then the Borrower shall be entitled to pay (i) interest, but
not principal (except only as permitted by clause

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	 	(ii) of this subsection (g)), of Subordinate Indebtedness permitted
pursuant to this Agreement, and (ii) principal of Approved Inter-Company
Indebtedness; provided that any such principal payments (A) are made to a
Guarantor, (B) are either retained by such Guarantor or distributed to
the Borrower, the Parent or another Guarantor and (C) are used in
accordance with the provisions of this Agreement; and
	 
	 	     (h) provided that (i) no monetary Default or Default in the
covenants set forth in Article VII has occurred and is continuing or
would result therefrom, (ii) on the date of such Restricted Payment after
taking into account such Restricted Payment (A) the Leverage Ratio shall
be less than 4.50 to 1.00 and (B) the Senior Leverage Ratio shall be less
than 2.75 to 1.00, and (iii) no Material Adverse Change has occurred, the
Parent shall be entitled to repurchase up to $5,000,000 in the aggregate
of the Parent’s currently outstanding common stock. Within ten (10)
Business Days of any such Restricted Payments in the aggregate reaching
increments of $250,000 (i.e. $250,000, $500,000, $750,000) the Borrower
shall execute and deliver to the Administrative Agent an Adjustment
Report dated as of the date of reaching such Restricted Payment increment
which takes into account such Restricted Payments. To the extent that
the Parent reaches multiple $250,000 increments over any ten (10)
Business Day period, then an Adjustment Report need only be provided as
of the date of the reaching of the last such $250,000 increment in such
ten (10) Business Day period. In addition, any Compliance Certificate
delivered by the Borrower shall state the dollar amount of such
Restricted Payments made in the Rolling Period covered by such Compliance
Certificate and the amount of all such Restricted Payments in the
aggregate.

     Section 6.05 Fundamental Changes; Asset Dispositions. Neither the Parent,
the Borrower, nor any of their respective Subsidiaries (other than the
Permitted Other Subsidiaries), will (a) merge or consolidate with or into any
other Person, unless (i) a Guarantor is merged into the Borrower and the
Borrower is the surviving Person or a Subsidiary (other than a Permitted Other
Subsidiary which has Indebtedness other than the Obligations) is merged into
any Subsidiary (other than a Permitted Other Subsidiary which has Indebtedness
other than the Obligations), and (ii) immediately after giving effect to any
such proposed transaction no Default would exist; (b) sell, transfer, or
otherwise dispose of all or any of such Person’s material Property except for a
Permitted Asset Disposition, or dispositions or replacements of personal
property in the ordinary course of business; (c) enter into, as lessor, a lease
(other than a lease which qualifies as a Permitted Asset Disposition) of all or
substantially all of any Owned Hospitality Property with any Person without the
consent of the Administrative Agent; (d) sell or otherwise dispose of any
material Ownership Interests of any Subsidiary (except for a Permitted Other
Subsidiary or a sale which qualifies as a Permitted Asset Disposition); (e)
except for (i) Capitalization Events for which the consideration is principally
cash or cash equivalents and for which the Net Cash Proceeds are applied in
accordance with the provisions of Section 2.07(c) and (ii) the issuance of
limited partnership interests in the Borrower in exchange for Ownership
Interests in Subsidiaries and Unconsolidated Entities to the extent permitted
pursuant to the provisions of Section 6.04, materially alter the corporate,
capital or legal structure of any such Person (except for a Permitted Other
Subsidiary); (f) enter into any forward sales of the Parent common stock or
Ownership Interests in the Borrower; (g) liquidate, wind-up or dissolve itself
(or suffer any liquidation or dissolution) provided that nothing herein shall
prohibit the Borrower

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 from dissolving any Subsidiary which has no assets on the date of
dissolution, (h) enter into any leases of Property or management agreements for
any Property except (1) Permitted Property Agreements, (2) Permitted Housing
Agreements, (3) leases of office space for the use of the Parent’s and the
Parent’s Subsidiaries’ employees, and (4) the leases of personal property
permitted by this Agreement or (i) materially alter the character of their
respective businesses from that conducted as of the date of this Agreement or
otherwise engage in any material business activity outside of the Hospitality
Management Business.

     Section 6.06 Investments and other Property. Neither the Parent, the
Borrower, nor any of their respective Subsidiaries, shall acquire by purchase
or otherwise any Investments or other Property, except the following:

		
	 	     (a) investments or Properties owned by such Persons as of the
Closing Date;
	 
	 	     (b) Liquid Investments;
	 
	 	     (c) trade and customer accounts receivable which are for goods
furnished or services rendered in the ordinary course of business and are
payable in accordance with customary trade terms, and receivables
purchased in connection with the acquisition of an Owned Hospitality
Property;
	 
	 	     (d) Investments in Permitted New Investments or Subsidiaries making
Permitted New Investments;
	 
	 	     (e) other assets, including Capital Expenditures, acquired or made
in the ordinary course of (i) owning the Parent’s and the Parent’s
Subsidiaries’ existing Investments and Properties and any Permitted New
Investments and (ii) operating a Hospitality Management Business; and
	 
	 	     (f) loans to employees of the Parent or its Subsidiaries which in
the aggregate do not exceed $100,000.

Notwithstanding the foregoing, neither the Borrower, nor the Parent, nor their
respective Subsidiaries shall make an Investment, acquire any other Property,
or enter into any Permitted Property Agreement or Permitted Housing Agreement
which would (a) cause a Default, (b) cause or result in the Borrower or the
Parent failing to comply with any of the financial covenants contained herein,
or (c) cause or result in the aggregate Adjusted EBITDA in any Rolling Period
derived from all Permitted Property Agreements, Permitted Housing Agreements or
other Investments related to Hospitality Properties which are not full-service
or limited service hotels to exceed 35% of the Parent’s Adjusted EBITDA for
such Rolling Period. In addition, neither the Borrower, nor the Parent, nor
their respective Subsidiaries shall enter into any agreements to purchase
Investments or other Property, unless with respect to such purchase such Person
at all times has available sources of funds equal to pay in full the cost of
the purchase of such Investments or other Property (to the extent that the
payment of such cost of purchase constitutes a recourse obligation of the
Parent, the Borrower or its Subsidiary), which available sources of funds may
include Advances to the extent that the Borrower may borrow the same for the
purposes required or other Indebtedness permitted by the terms of this
Agreement.

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     Section 6.07 Affiliate Transactions. Except for certain liquor license
agreements, the Borrower will not, and will not permit any of its Subsidiaries
to, make, directly or indirectly: (a) any transfer, sale, lease, assignment or
other disposal of any assets to any Affiliate of the Borrower which is not a
Guarantor or any purchase or acquisition of assets from any such Affiliate
except for purchases of new personal property (i) which in any calendar year do
not exceed $1,000,000 in the aggregate and (ii) for which the sales price is
the actual cost to the party selling; or (b) any arrangement or other
transaction directly or indirectly with or for the benefit of any such
Affiliate (including without limitation, guaranties and assumptions of
obligations of an Affiliate), other than in the ordinary course of business and
at market rates.

     Section 6.08 Sale or Discount of Receivables. The Borrower will not, and
will not permit any of its Subsidiaries to, directly or indirectly, sell with
recourse, or discount or otherwise sell for less than the face value thereof,
any of its notes or accounts receivable.

     Section 6.09 Material Documents. The Borrower will not, nor will it
permit any of its Subsidiaries to (a) amend the Borrower’s partnership
agreement in any material respect, (b) admit a new general partner to the
Borrower, (c) enter into any termination or material modification or amendment
of Permitted Property Agreements which singly or in the aggregate could
reasonably be expected to cause a Material Adverse Change, (d) enter into any
modification or amendment of any of the Permitted Property Agreements with MHC
or MHC’s Subsidiaries which would provide in any such Permitted Property
Agreements performance standards for the year 2002, or (e) modify the Approved
Inter-Company Indebtedness Loan Documents in any way that is materially adverse
to the Lenders.

     Any termination, modification or amendment prohibited under this Section
6.09 without the Required Lender’s written consent shall, to the extent
permitted by applicable law, be void and of no force and effect.

     Section 6.10 No Further Negative Pledges. Neither the Borrower, nor the
Parent, nor their respective Subsidiaries shall enter into or suffer to exist
any agreement (other than the Senior Credit Facility, this Agreement and the
Credit Documents and as set forth in the Permitted Property Agreements and the
Permitted Housing Agreements) (a) prohibiting the creation or assumption of any
Lien upon the Properties of the Parent, the Borrower or any of their respective
Subsidiaries (except for Properties of and Ownership Interests in the Permitted
Other Subsidiaries), whether now owned or hereafter acquired, or (b) requiring
an obligation to be secured if some other obligation is or becomes secured;
provided that in connection with the incurrence of Additional Designated Senior
Indebtedness, the Parent and its Subsidiaries may enter into such agreements
which (y) are in form and substance acceptable to the Senior Administrative
Agent in its reasonable discretion, and (z) would require that assets of the
Parent and its Subsidiaries which secure the Senior Obligations also secure on
an equal and ratable basis such Additional Designated Senior Indebtedness.

[REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

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ARTICLE VII

FINANCIAL COVENANTS

     So long as any Note or any amount under any Credit Document shall remain
unpaid, unless the Required Lenders shall otherwise consent in writing, the
Borrower agrees to comply and cause the Parent and the Parent’s Subsidiaries to
comply with the following covenants:

     Section 7.01 Interest Coverage Ratio. The Parent shall maintain at the
end of each Rolling Period (a) for the Rolling Period ending on September 30,
2002, an Interest Coverage Ratio of not less than 1.75 to 1.0, (b) for the
Rolling Periods ending on December 31, 2002 through September, 2003, an
Interest Coverage Ratio of not less than 2.25 to 1.00, and (c) for any Rolling
Period thereafter, an Interest Coverage Ratio of not less than 2.50 to 1.00.

     Section 7.02 Senior Interest Coverage Ratio. The Parent shall maintain at
the end of each Rolling Period (a) for the Rolling Period ending on September
30, 2002, a Senior Interest Coverage Rating of not less than 3.00 to 1.00 and
(b) for any Rolling Period thereafter, a Senior Interest Coverage Ratio of not
less than 3.50 to 1.00.

     Section 7.03 Leverage Ratio. (a) The Parent shall not on any date permit
the Leverage Ratio to exceed during the applicable period indicated in the
following chart the amount set forth in such chart for such period:

	 	 	 	 	 
	
	 	

	 	

	Beginning Date of
Applicable Period	 	
Ending Date of Applicable Period
	 	Leverage Ratio
	
	 	

	 	

	Closing Date	 	
The day immediately prior to the
Status Reset Date during the
Fiscal Quarter commencing
October 1, 2002
	 	6.00 to 1.00
	
	 	

	 	

	The Status Reset

Date during the

Fiscal Quarter

commencing October

1, 2002	 	
The day immediately prior to the
Status Reset Date during the
Fiscal Quarter commencing
January 1, 2003
	 	5.50 to 1.00
	
	 	

	 	

	The Status Reset

Date during the

Fiscal Quarter

commencing January

1, 2003	 	
The day immediately prior to the
Status Reset Date during the
Fiscal Quarter commencing July
1, 2003
	 	5.25 to 1.00
	
	 	

	 	

	The Status Reset
Date during the
Fiscal Quarter
commencing July 1,
2003	 	
The day immediately prior to the
Status Reset Date during the
Fiscal Quarter commencing
October 1, 2003
	 	4.75 to 1.00
	
	 	

	 	

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	The Status Reset

Date during the

Fiscal Quarter

commencing October

1, 2003	 	
The day immediately prior to the
Status Reset Date during the
Fiscal Quarter commencing
January 1, 2004
	 	4.50 to 1.00
	
	 	

	 	

	The Status Reset

Date during the

Fiscal Quarter

commencing January

1, 2004	 	
No ending date
	 	4.00 to 1.00
	
	 	

	 	

		
	 	     (a) For so long as the Senior Credit Facility is outstanding, a
breach of the covenant set forth in this Section 7.03 shall not be an
Event of Default unless such breach exists on two consecutive Status
Reset Dates.

     Section 7.04 Senior Leverage Ratio. The Parent shall not on any date
permit the Senior Leverage Ratio to exceed during the applicable period
indicated in the following chart the amount set forth in such chart for such
period:

	 	 	 	 	 
	
	 	

	 	

	Beginning Date of
Applicable Period	 	
Ending Date of
Applicable Period
	 	Senior Leverage Ratio
	
	 	

	 	

	Closing Date	 	
The day immediately
prior to the Status
Reset Date during the
Fiscal Quarter
commencing January 1,
2003
	 	4.00 to 1.00
	
	 	

	 	

	The Status Reset Date
during the Fiscal
Quarter commencing
January 1, 2003	 	
The day immediately
prior to the Status
Reset Date during the
Fiscal Quarter
commencing January 1,
2004
	 	3.25 to 1.00
	
	 	

	 	

	The Status Reset Date
during the Fiscal
Quarter commencing
January 1, 2004	 	
No ending date
	 	2.50 to 1.00
	
	 	

	 	

     Section 7.05 Maintenance of Net Worth. The Parent shall at all times
maintain an Adjusted Net Worth of not less than the Minimum Net Worth.

     Section 7.06 Waivers. Notwithstanding the foregoing, in the event that
the financial covenants in the Senior Credit Facility are modified or amended,
or compliance with such financial covenants are waived, by the Senior Lenders,
and such modification, amendment or

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 waiver results in financial covenants under the Senior Credit Facility
that are less onerous than the financial covenants contained in this Article
VII , the Administrative Agent and the Lenders shall be deemed to have modified
or amended, or waived compliance with, the applicable financial covenants
contained in this Article VII to conform to the financial covenants as
modified, amended or waived under the Senior Credit Facility for so long as
such modification, amendment or waiver is in effect or the Senior Credit
Facility is outstanding.

ARTICLE VIII

EVENTS OF DEFAULT; REMEDIES

     Section 8.01 Events of Default. The occurrence of any of the following
events shall constitute an “Event of Default” under any Credit Document:

		
	 	     (a) Principal Payment. The Borrower or any Guarantor shall fail to
pay any principal of any Note when the same becomes due and payable as
set forth in this Agreement;
	 
	 	     (b) Interest or Other Obligation Payment. The Borrower or any
Guarantor shall fail to pay any interest on any Note or any fee or other
amount payable hereunder or under any other Credit Document when the same
becomes due and payable as set forth in this Agreement or such other
Credit Document, as applicable, provided however that the Borrower and
the Guarantors will have a grace period of five (5) days after the
payments covered by this Section 8.01(b) becomes due and payable for the
first two defaults of such Persons collectively under this Section
8.01(b) in every calendar year;
	 
	 	     (c) Representations and Warranties. Any representation or warranty
made or deemed to be made (i) by the Borrower in this Agreement or in any
other Credit Document, (ii) by the Borrower (or any of its officers) in
connection with this Agreement or any other Credit Document, or (iii) by
any Guarantor in any Credit Document shall prove to have been incorrect
in any material respect when made or deemed to be made;
	 
	 	     (d) Covenant Breaches. (i) The Borrower shall fail to perform or
observe any covenant contained in Section 5.02, Article VI or Article VII
of this Agreement, (ii) the Borrower shall fail to perform or observe, or
shall fail to cause any Guarantor to perform or observe any covenant in
any Credit Document beyond any notice and/or cure period for such default
expressly provided in such Credit Document or (iii) the Borrower or any
Guarantor shall fail to perform or observe any term or covenant set forth
in any Credit Document which is not covered by clause (i) or (ii) above
or any other provision of this Section 8.01, in each case if such failure
shall remain unremedied for thirty (30) days after the earlier of the
date written notice of such default shall have been given to the Borrower
or such Guarantor by the Administrative Agent or any Lender or the date a
Responsible Officer of the Borrower or any Guarantor has actual knowledge
of such default, unless such default in this clause (iii) cannot be cured
in such thirty (30) day period and the Borrower is diligently proceeding
to cure such default, in which event the cure period shall be extended to
ninety (90) days; provided that the Borrower shall not be

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	 	entitled to more than the aforementioned thirty (30) day period to
cure a default under Section 5.09 of this Agreement;
	 
	 	     (e) Cross-Defaults. With respect to any Indebtedness of the
Borrower, the Parent or any of their respective Subsidiaries, including,
without limitation, the Senior Credit Facility (but excluding
Indebtedness evidenced by the Notes) which is outstanding in a principal
amount of at least $5,000,000 individually or when aggregated with all
such Indebtedness of the Borrower, the Parent or any of their respective
Subsidiaries any of the following:

		
	 	     (i) any such Indebtedness shall be declared to be due and
payable, or required to be prepaid (other than by a regularly
scheduled required prepayment), prior to the stated maturity
thereof,
	 
	 	     (ii) such Person shall fail to pay any principal of or premium
or interest of any of such Indebtedness (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise),
and such failure shall continue after the applicable grace period,
if any, specified in the agreement or instrument relating to such
Indebtedness, or
	 
	 	     (iii) any other event shall occur or condition shall exist
under any agreement or instrument relating to such Indebtedness,
and shall continue after the applicable grace period, if any,
specified in such agreement or instrument, if the effect of such
event or condition is to permit the holders of such Indebtedness to
accelerate the maturity of such Indebtedness;

		
	 	     (f) Insolvency. The Borrower, the Parent or any of their respective
Material Subsidiaries shall generally not pay its debts as such debts
become due, or shall admit in writing its inability to pay its debts
generally, or shall make a general assignment for the benefit of
creditors; or any proceeding shall be instituted by or against the
Borrower, the Parent or any of their respective Material Subsidiaries
seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation,
winding up, reorganization, arrangement, adjustment, protection, relief,
or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry
of an order for relief or the appointment of a receiver, trustee or other
similar official for it or for any substantial part of its property and,
in the case of any such proceeding instituted against the Borrower, the
Parent or any of their respective Material Subsidiaries, either such
proceeding shall remain undismissed for a period of 60 days or any of the
actions sought in such proceeding shall occur; or the Borrower, the
Parent or any of their respective Material Subsidiaries shall take any
corporate action to authorize any of the actions set forth above in this
paragraph (f);
	 
	 	     (g) Judgments. Any judgment or order for the payment of money in
excess of $2,500,000 or the Dollar Equivalent thereof (reduced for
purposes of this paragraph for the amount in respect of such judgment or
order that a reputable insurer has acknowledged being payable under any
valid and enforceable insurance policy) shall be

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	 	rendered against the Borrower, the Parent or any of their respective
Subsidiaries which, within 30 days from the date such judgment is
entered, shall not have been discharged or execution thereof stayed
pending appeal;
	 
	 	     (h) ERISA. (i) Any Person shall engage in any “prohibited
transaction” (as defined in Section 406 of ERISA or Section 4975 of the
Code) involving any Plan, (ii) any “accumulated funding deficiency” (as
defined in Section 302 of ERISA), whether or not waived, shall exist with
respect to any Plan, (iii) a Reportable Event shall occur with respect
to, or proceedings shall commence to have a trustee appointed, or a
trustee shall be appointed, to administer or to terminate, any Plan,
which Reportable Event or commencement of proceedings or appointment of a
trustee is likely to result in the termination of such Plan for purposes
of Title IV of ERISA, unless such Reportable Event, proceedings or
appointment are being contested by the Borrower in good faith and by
appropriate proceedings, (iv) any Plan shall terminate for purposes of
Title IV of ERISA, (v) the Borrower or any member of a Controlled Group
shall incur any liability in connection with a withdrawal from a
Multiemployer Plan or the insolvency (within the meaning of Section 4245
of ERISA) or reorganization (within the meaning of Section 4241 of ERISA)
of a Multiemployer Plan, unless such liability is being contested by the
Borrower in good faith and by appropriate proceedings, or (vi) any other
event or condition shall occur or exist, with respect to a Plan; and in
each case in clauses (i) through (vi) above, such event or condition,
together with all other such events or conditions, if any, could subject
the Borrower or any Guarantor to any tax, penalty or other liabilities in
the aggregate exceeding $10,000,000;
	 
	 	     (i) Guaranty. Any provision of any Guaranty shall for any reason
cease to be valid and binding on any Guarantor or any Guarantor shall so
state in writing;
	 
	 	     (j) Intentionally Deleted;
	 
	 	     (k) Parent
Common Stock; Repayment Event. The Parent at any time
hereafter fails to (i) cause the Parent common stock to be duly listed on
the New York Stock Exchange, Inc. and (ii) file timely all reports
required to be filed by the Parent with the New York Stock Exchange, Inc.
and the Securities and Exchange Commission and, with respect to a failure
under clause (ii), such failure remains uncured on the date which is the
earlier of (A) the date 30 days following the initial occurrence of such
failure and (B) the date specified by the New York Stock Exchange, Inc.
or the Securities and Exchange Commission as the date such failure needs
to be cured by. Upon the receipt by the Parent of any Net Cash Proceeds
from a Repayment Event, (a) the Parent fails to immediately make a
capital contribution or advance to the Borrower or a Subsidiary of the
Borrower in the aggregate amount of such Net Cash Proceeds, or otherwise
apply the Net Cash Proceeds from such Repayment Event in accordance with
the provisions of this Agreement or (b) the Borrower fails to apply such
Net Cash Proceeds in accordance with the provisions of this Agreement;
	 
	 	     (l) Change in Ownership or Management. Any of the following occur
without the written consent of the Required Lenders: (i) a Change in
Control occurs for either the

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	 	Parent or the Borrower; (ii) the Parent and any wholly-owned
Subsidiary of the Parent collectively owns less than 70% of the legal or
beneficial interest in the Borrower; (iii) unless a Specified Change of
Control Event shall have occurred, the Parent and MHC shall cease to have
at least 3 of the same individuals serving on their respective Boards of
Directors; or (iv) unless a Specified Change of Control Event shall have
occurred, the Parent and MHC shall cease to have at least one (1)
individual serving as a Responsible Officer of the Parent and MHC, and,
within 120 days following such occurrence for any reason, another person
acceptable to the Required Lenders in their sole discretion is not
employed as a Responsible Officers by the Parent and MHC; or
	 
	 	     (m) Permitted Property Agreements. Any of the following occur: (i)
sufficient Permitted Property Agreements shall for any reason cease to be
valid and binding on MHC, MHC OP or other Person party thereto, or MHC,
MHC OP or such other Person party thereto shall so state in writing, that
it could reasonably be expected to cause a Material Adverse Change; or
(ii) a default by the Parent, the Borrower or any of their respective
Subsidiaries shall occur under sufficient Permitted Property Agreements
that such default could reasonably be expected to cause a Material
Adverse Change.

     Section 8.02 Optional Acceleration of Maturity; Other Actions. If any
Event of Default (other than an Event of Default pursuant to paragraph (f) of
Section 8.01) shall have occurred and be continuing, then, and in any such
event,

		
	 	     (a) the Administrative Agent (i) shall at the request, or may with
the consent, of the Required Lenders, by notice to the Borrower, declare
the obligation of each Lender to make Advances to be terminated,
whereupon the same shall forthwith terminate, and (ii) shall at the
request, or may with the consent, of the Required Lenders, by notice to
the Borrower, declare the Notes, all interest thereon, and all other
amounts payable under this Agreement to be forthwith due and payable,
whereupon the Notes, all such interest, and all such amounts shall become
and be forthwith due and payable in full, without presentment, demand,
protest or further notice of any kind (including, without limitation, any
notice of intent to accelerate or notice of acceleration), all of which
are hereby expressly waived by the Borrower, and

		
	 	     (b) the Administrative Agent shall at the request of, or may with
the consent of, the Required Lenders proceed to enforce its rights and
remedies under the Credit Documents for the ratable benefit of the
Lenders by appropriate proceedings.

     Section 8.03 Automatic Acceleration of Maturity. If any Event of Default
pursuant to paragraph (f) of Section 8.01 shall occur, the obligation of each
Lender to make Advances and shall immediately and automatically be terminated
and the Notes, all interest on the Notes, and all other amounts payable under
this Agreement shall immediately and automatically become and be due and
payable in full, without presentment, demand, protest or any notice of any kind
(including, without limitation, any notice of intent to accelerate or notice of
acceleration), all of which are hereby expressly waived by the
Borrower.

     Section 8.04 Intentionally Deleted.

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     Section 8.05 Non-exclusivity of Remedies. No remedy conferred upon the
Administrative Agent or the Lenders is intended to be exclusive of any other
remedy, and each remedy shall be cumulative of all other remedies existing by
contract, at law, in equity, by statute or otherwise.

     Section 8.06 Right of Set-off.

		
	 	     (a) Upon (i) the occurrence and during the continuance of any Event
of Default pursuant to paragraph (f) of Section 8.01 or (ii) the making
of the request or the granting of the consent, if any, specified by
Section 8.02 to authorize the Administrative Agent to declare the Notes
and any other amount payable hereunder due and payable pursuant to the
provisions of Section 8.02 or the automatic acceleration of the Notes and
all amounts payable under this Agreement pursuant to Section 8.03, each
Lender and Affiliate thereof is hereby authorized at any time and from
time to time, to the fullest extent permitted by law, to set off and
apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other indebtedness at any time
owing by such Lender or any Affiliate thereof to or for the credit or the
account of the Borrower against any and all of the obligations of the
Borrower now or hereafter existing under this Agreement, the Note held by
such Lender, and the other Credit Documents, irrespective of whether or
not such Lender shall have made any demand under this Agreement, such
Note, or such other Credit Documents, and although such obligations may
be unmatured. Each Lender agrees to promptly notify the Borrower after
any such set-off and application made by such Lender or its Affiliate,
provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Lender
under this Section are in addition to any other rights and remedies
(including, without limitation, other rights of set-off) which such
Lender may have.

		
	 	     (b) The Borrower waives any right of set-off, defense or
counterclaim the Borrower has or may have against any Lender to apply any
amounts owed the Borrower by such Lender or any Affiliate thereof against
the Obligations hereunder.

ARTICLE IX

AGENCY AND ISSUING BANK PROVISIONS

     Section 9.01 Authorization and Action. Each Lender hereby appoints and
authorizes the Administrative Agent to take such action as Administrative Agent
on its behalf and to exercise such powers under this Agreement and the other
Credit Documents as are delegated to the Administrative Agent by the terms
hereof and of the other Credit Documents, together with such powers as are
reasonably incidental thereto. As to any matters not expressly provided for by
this Agreement or any other Credit Document (including, without limitation,
enforcement or collection of the Notes), the Administrative Agent shall not be
required to exercise any discretion or take any action, but shall be required
to act or to refrain from acting (and shall be fully protected in so acting or
refraining from acting) upon the instructions of the Required Lenders, and such
instructions shall be binding upon all Lenders and all holders of Notes;
provided, however, that the Administrative Agent shall not be required to take
any action which exposes the Administrative Agent to personal liability or
which is contrary to this Agreement, any other

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 Credit Document, or applicable law. The functions of the Administrative
Agent are administerial in nature and in no event shall the Administrative
Agent have a fiduciary or trustee relation in respect of any Lender by reason
of this Agreement or any other Credit Document. Within five (5) Business Days
of the Administrative Agent receiving actual knowledge (without any duty to
investigate) of a Default, the Administrative Agent will provide written notice
of such Default to the Lenders.

     Section 9.02 Administrative Agent’s Reliance, Etc. Neither the
Administrative Agent nor any of its directors, officers, agents or employees
shall be liable for any action taken or omitted to be taken (including such
Person’s own negligence) by it or them under or in connection with this
Agreement or the other Credit Documents, except for its or their own gross
negligence or willful misconduct. Without limitation of the generality of the
foregoing, the Administrative Agent: (a) may treat the payee of any Note as
the holder thereof until the Administrative Agent receives written notice of
the assignment or transfer thereof signed by such payee and in form
satisfactory to the Administrative Agent; (b) may consult with legal counsel
(including counsel for the Borrower), independent public accountants and other
experts selected by it and shall not be liable for any action taken or omitted
to be taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (c) makes no warranty or representation to any Lender
and shall not be responsible to any Lender for any statements, warranties or
representations made in or in connection with this Agreement or the other
Credit Documents; (d) shall not have any duty to ascertain or to inquire as to
the performance or observance of any of the terms, covenants or conditions of
this Agreement or any other Credit Document on the part of the Borrower, the
Parent or their respective Subsidiaries or to inspect the property (including
the books and records) of the Borrower, the Parent or their respective
Subsidiaries; (e) shall not be responsible to any Lender for the due execution,
legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or any other Credit Document other than with respect to the
Administrative Agent’s execution of the documents to which the Administrative
Agent is a party; and (f) shall incur no liability under or in respect of this
Agreement or any other Credit Document by acting upon any notice, consent,
certificate or other instrument or writing (which may be by telecopier,
telegram, cable or telex) believed by it to be genuine and signed or sent by
the proper party or parties.

     Section 9.03 Each Agent and Its Affiliates. With respect to its
Commitment, the Advances made by it and the Notes issued to it, the
Administrative Agent shall have the same rights and powers under this Agreement
as any other Lender and may exercise the same as though it were not an Agent.
The term “Lender” or “Lenders” shall, unless otherwise expressly indicated,
include the Administrative Agent in its individual capacity as a Lender. The
Administrative Agent, the Lenders and their respective Affiliates may accept
deposits from, lend money to, act as trustee under indentures of, and generally
engage in any kind of business with, the Borrower or any of its Subsidiaries,
and any Person who may do business with or own securities of the Borrower or
any such Subsidiary, all as if the Administrative Agent were not an
Administrative Agent hereunder or the Lenders were not Lenders hereunder and
without any duty to account therefor to the Lenders.

     Section 9.04 Lender Credit Decision. Each Lender acknowledges that it
has, independently and without reliance upon the Administrative Agent or any
other Lender and

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 based on the financial statements referred to in Section 4.07 and such
other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement.

     Section 9.05 Indemnification. The Lenders severally agree to indemnify
the Administrative Agent, (to the extent not reimbursed by the Borrower),
according to its Pro Rata Share from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed
on, incurred by, or asserted against the Administrative Agent, in any way
relating to or arising out of this Agreement or any action taken or omitted by
the Administrative Agent, under this Agreement or any other Credit Document
(including the Administrative Agent’s own negligence), provided that no Lender
shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Administrative Agent’s gross negligence or willful
misconduct. Without limitation of the foregoing, each Lender agrees to
reimburse the Administrative Agent promptly upon demand for its Pro Rata Share
of any out-of-pocket expenses (including counsel fees) incurred by the
Administrative Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement or any other Credit Document,
to the extent that the Administrative Agent is not reimbursed for such expenses
by the Borrower.

     Section 9.06 Successor Agent. The Administrative Agent, may resign at any
time by giving written notice thereof to the Lenders and the Borrower and may
be removed at any time with cause by the Required Lenders upon receipt of
written notice from the Required Lenders to such effect. Upon receipt of
notice of any such resignation or removal, the Required Lenders shall have the
right to appoint a successor Administrative Agent. If no successor
Administrative Agent shall have been so appointed, and shall have accepted such
appointment, within 30 days after the retiring Administrative Agent’s giving of
notice of resignation or the Required Lenders’ removal of the retiring
Administrative Agent, then the retiring Administrative Agent, may, on behalf of
the Lenders and the Borrower, appoint a successor Administrative Agent, which
shall be a commercial bank meeting the financial requirements of an Eligible
Assignee. Upon the acceptance of any appointment as Administrative Agent, by a
successor Administrative Agent, such successor Administrative Agent, shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Administrative Agent, and the retiring
Administrative Agent, shall be discharged from its duties and obligations under
this Agreement and the other Credit Documents. After any retiring
Administrative Agent’s resignation or removal hereunder as Administrative
Agent, the provisions of this Article IX shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was such Administrative
Agent, under this Agreement and the other Credit Documents.

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ARTICLE X

MISCELLANEOUS

     Section 10.01 Amendments, Etc.

		
	 	     (a) No amendment or waiver of any provision of this Agreement, the
Notes, or any other Credit Document, nor consent to any departure by the
Borrower or any Guarantor therefrom, shall in any event be effective
unless the same shall be in writing and signed by the Administrative
Agent, as specified in the particular provisions of the Credit Documents,
and the Borrower, and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given;
provided, however, that no amendment shall: (i) increase the aggregate
Commitments of the Lenders, (ii) reduce the principal of, or interest on,
the Notes or any fees or other amounts payable hereunder or under any
other Credit Document or otherwise release the Borrower from any
Obligations, (iii) postpone any date fixed for any payment of principal
of, or interest on, the Notes or any fees or other amounts payable
hereunder, (iv) amend this Section 10.01, (v) amend the definition of
“Required Lenders”, or (vi) release the Parent or any Subsidiary of the
Parent or the Borrower having Property or annual revenues in excess of
$7,500,000 from its obligations under the Guaranty except as
contemplated by the provisions of Section 5.09, and provided, further,
that no amendment, waiver or consent shall, unless in writing and signed
by the Administrative Agent, in addition to the Lenders required above to
take such action, affect the rights or duties of the Administrative
Agent, under this Agreement or any other Credit Document.

		
	 	     (b) In addition, none of the following decisions shall be made
without the prior written consent of the Required Lenders:

		
	 	     (i) release any Guarantor (except the Parent or any Subsidiary
of the Parent or the Borrower having Property or annual revenues in
excess of $7,500,000) from its obligations under any of the
Guaranties except as contemplated by the provisions of Section
5.09, provided that the Administrative Agent can, if no Default
then exists, release any Subsidiary of the Borrower which no longer
is a party to any Permitted Property Agreement or any Permitted
Housing Agreement or no longer owns any Investments or other
Property;
	 
	 	     (ii) any (A) determination to send notice to the Borrower of,
or otherwise declare, an Event of Default pursuant to Section 8.01
of this Agreement, (B) determination to accelerate the Obligations
pursuant to Section 8.02 of this Agreement, (C) exercise of
remedies under any Credit Document;
	 
	 	     (iii) any waiver or any amendment to the financial covenants
contained in Article VII of this Agreement or any definitions used
therein;
	 
	 	     (iv) any amendment of any of the definitions that are used in
the definition of “Leverage Ratio” or “Senior Leverage Ratio;”

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	 	     (v) any other material waiver or modification of the Credit
Documents not referred to in this Section 10.01, provided that if
within ten (10) Business Days of the Administrative Agent’s
approval of a non-material waiver or modification of the Credit
Documents the Required Lenders object in writing to such waiver or
modification, then such waiver or modification shall then not be
effective and shall be subject to the written consent of the
Required Lenders; and
	 
	 	     (vi) any amendment of any other provision of a Credit Document
which expressly requires the consent of the Required Lenders.

		
	 	     (c) Any amendment to a covenant of the Parent or any of its
Subsidiaries or amendment to a definition shall require the Borrower’s
written consent.

		
	 	     (d) If, in connection with any proposed change, waiver, discharge or
termination to any of the provisions of this Agreement which requires
unanimous consent of the Lenders the consent of 51% or more of the
Non-Defaulting Lenders entitled to vote on such proposed change, waiver,
discharge or termination is obtained but the consent of one or more of
such other Lenders whose consent is required is not obtained, then the
Borrower shall have the right, so long as all non-consenting Lenders
whose individual consent is required are treated as described below, to
replace each such non-consenting Lender or Lenders with one or more
Eligible Assignees pursuant to Section 2.15 so long as at the time of
such replacement, each such Eligible Assignee consents to the proposed
change, waiver, discharge or termination, provided further, that in any
event the Borrower shall not have the right to replace a Lender solely as
a result of the exercise of such Lender’s rights (and the withholding of
any required consent by such Lender) to increase any of such Lender’s
Commitments.

		
	 	     (e) Notwithstanding the foregoing, the Administrative Agent and the
Borrower (without the consent of any other Lender) may enter into
amendments of any Credit Document solely with respect to corrections of
formal defects not having any economic impact.

     Section 10.02 Notices, Etc. All notices and other communications shall be
in writing (including telecopy or telex) and mailed, telecopied, telexed, hand
delivered or delivered by a nationally recognized overnight courier, (a) if to
the Borrower, at its address at 1010 Wisconsin Avenue, N.W., Washington, D.C.
20007, Attn: Mr. John Emery; (b) if to any Lender, at its Applicable Lending
Office; (c) if to the Administrative Agent, at its address at 399 Park Avenue,
8th floor, New York, new York 10022, Attention Mr. Thomas Buffa, Telephone :
(212) 526- 5153, Facsimile: (646) 758-4672; or, (d) as to each party, at such
other address or teletransmission number as shall be designated by such party
in a written notice to the other parties. All such notices and communications
shall, when mailed, telecopied, telexed or hand delivered or delivered by
overnight courier, be effective three days after deposited in the mails, when
telecopy transmission is completed, when confirmed by telex answer-back or when
delivered, respectively, except that notices and communications to the
Administrative Agent pursuant to Article II or Article IX shall not be
effective until received by the Administrative Agent.

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     Section 10.03 No Waiver; Remedies. No failure on the part of any Lender,
or any Agent, to exercise, and no delay in exercising, any right hereunder or
under any Note shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The remedies provided in this
Agreement and the other Credit Documents are cumulative and not exclusive of
any remedies provided by law.

     Section 10.04 Costs and Expenses. The Borrower agrees to pay on demand
all out-of-pocket costs and expenses of the Administrative Agent in connection
with the preparation, execution, delivery, due diligence, administration,
modification and amendment of this Agreement, the Notes and the other Credit
Documents and syndication of the Obligations including, without limitation, (a)
the reasonable fees and out-of-pocket expenses of counsel for the
Administrative Agent, and (b) all reasonable out-of-pocket costs and expenses,
if any, of the Administrative Agent, and each Lender (including, without
limitation, reasonable counsel fees and expenses of the Administrative Agent,
and each Lender) in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of this Agreement and the other
Credit Documents, and (d) to the extent not included in the foregoing, the
costs of any local counsel, travel expenses, and any title or Uniform
Commercial Code search costs, any flood plain search costs, insurance
consultant costs and other costs usual and customary in connection with a
credit facility of this type.

     Section 10.05 Binding Effect. This Agreement shall become effective when
it shall have been executed by the Borrower and the Administrative Agent, and
when the Administrative Agent shall have, as to each Lender, either received a
counterpart hereof executed by such Lender or been notified by such Lender that
such Lender has executed it and thereafter shall be binding upon and inure to
the benefit of the Borrower, the Administrative Agent, and each Lender and
their respective successors and assigns, except that the Borrower shall not
have the right to assign its rights or delegate its duties under this Agreement
or any interest in this Agreement without the prior written consent of each
Lender.

     Section 10.06 Lender Assignments and Participations.

		
	 	     (a) Assignments. Any Lender may assign to one or more banks or
other entities all or any portion of its rights and obligations under
this Agreement (including, without limitation, all or a portion of its
Commitment, its Pro Rata Share of the Loan Amount owing to it, and the
Notes held by it; provided, however, that:

		
	 	     (i) each such assignment shall be of a constant, and not a
varying, percentage of all of such Lender’s rights and obligations
under this Agreement,

		
	 	     (ii) the amount of the resulting Commitments of the assigning
Lender (unless it is assigning all its Commitments) and the
assignee Lender pursuant to each such assignment (determined as of
the date of the Assignment and Acceptance with respect to such
assignment) shall in no event be less than $5,000,000 in total,
shall in no event be less than $1,000,000 for each Class assigned
and shall be an integral multiple of $1,000,000,

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	 	     (iii) each such assignment shall be to an Eligible Assignee,

		
	 	     (iv) the parties to each such assignment shall execute and
deliver to the Administrative Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance, together
with the Notes subject to such assignment,

		
	 	     (v) the Administrative Agent shall consent to such assignment,
which consent shall not be unreasonably withheld or delayed, and

		
	 	     (vi) each Eligible Assignee (other than an Eligible Assignee
which is an Affiliate of the assigning Lender) shall pay to the
Administrative Agent a $3,500 administrative fee; provided that, in
the case of contemporaneous assignments by a Lender to more than
one Related Fund (which Related Funds are not then Lenders
hereunder), only a single $3,500 such fee shall be payable for all
such contemporaneous assignments.

Upon such execution, delivery, acceptance and recording, from and after the
effective date specified in each Assignment and Acceptance, which effective
date shall be at least three Business Days after the execution thereof or
earlier such earlier date as agreed to by the Administrative Agent, (A) the
assignee thereunder shall be a party hereto for all purposes and, to the extent
that rights and obligations hereunder have been assigned to it pursuant to such
Assignment and Acceptance, have the rights and obligations of a Lender
hereunder and (B) such Lender thereunder shall, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment and
Acceptance, relinquish its rights and be released from its obligations under
this Agreement (and, in the case of an Assignment and Acceptance covering all
or the remaining portion of such Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto). Notwithstanding
anything herein to the contrary, (i) any Lender may assign or pledge, as
collateral or otherwise, any of its rights under the Credit Documents to any
Federal Reserve Bank and (ii) any Lender that is an Approved Fund or Related
Fund may, without the consent of the Administrative Agent or the Borrower,
pledge all or any portion of its Advances and Notes to any trustee for, or any
other representative of, holders of obligations owed, or securities issued, by
such Approved Fund or Related Fund, as security for such obligations or
securities; provided that (A) any foreclosure or similar action by such trustee
or representative shall be subject to the provisions of this Section 10.06(a)
concerning assignments, including without limitation the requirement that any
assignee of such Notes and Advances must qualify as an Eligible Assignee and
(B) such Lender shall not require such trustee’s or representative’s consent to
any matter under this Agreement, except (1) for a change in the principal
amount of any Note which has been so pledged, reductions in fees or interest,
or extending the Maturity Date except as permitted in this Agreement or (2) as
otherwise consented to by the Administrative Agent.

		
	 	     (b) Term of Assignments. By executing and delivering an Assignment
and Acceptance, the Lender thereunder and the assignee thereunder confirm
to and agree with each other and the other parties hereto as follows:
(i) other than as provided in such Assignment and Acceptance, such Lender
makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations

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	 	made in or in connection with this Agreement or the execution,
legality, validity, enforceability, genuineness, sufficiency of value of
this Agreement or any other instrument or document furnished pursuant
hereto; (ii) such Lender makes no representation or warranty and assumes
no responsibility with respect to the financial condition of the Borrower
or the Guarantors or the performance or observance by the Borrower or the
Guarantors of any of their obligations under this Agreement or any other
instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement, together with
copies of the financial statements referred to in Sections 4.06 and 5.05,
if applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into
such Assignment and Acceptance; (iv) such assignee will, independently
and without reliance upon the Administrative Agent, such Lender or any
other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement; (v) such assignee
appoints and authorizes the Administrative Agent to take such action as
agent on its behalf and to exercise such powers under this Agreement as
are delegated to the Administrative Agent by the terms hereof, together
with such powers as are reasonably incidental thereto; and (vi) such
assignee agrees that it will perform in accordance with their terms all
of the obligations which by the terms of this Agreement are required to
be performed by it as a Lender.

		
	 	     (c) The Register. The Administrative Agent shall maintain at its
address referred to in Section 10.02 a copy of each Assignment and
Acceptance delivered to and accepted by it and a register for the
recordation of the names and addresses of the Lenders and the Commitments
of, and principal amount of the Advances owing to, each Lender from time
to time (the “Register”). The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Administrative Agent, and the Lenders may treat each Person
whose name is recorded in the Register as a Lender hereunder for all
purposes of this Agreement. The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from
time to time upon reasonable prior notice.

		
	 	     (d) Procedures. Upon its receipt of an Assignment and Acceptance
executed by a Lender and an Eligible Assignee, together with the Note or
Notes subject to such assignment, the Administrative Agent shall, if such
Assignment and Acceptance has been completed and is in substantially the
form of the attached Exhibit C, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the
Register, and (iii) give prompt notice thereof to the Borrower. Within
five Business Days after its receipt of such notice, the Borrower, at its
own expense, shall execute and deliver to the Administrative Agent in
exchange for the surrendered Note or Notes, a new Note or Notes payable
to the order of such Eligible Assignee in amount equal to, Commitment and
the Pro Rata Shares of the Loan Amount assumed by it pursuant to such
Assignment and Acceptance, and if the assigning Lender has retained any
Commitment hereunder, a new Note or Notes payable to the order of such
Lender in an amount equal to, respectively, the Commitments and the Pro
Rata Shares of outstanding Loan Amount retained by it hereunder. Such
new Notes shall be dated the date of the original Notes

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	 	executed pursuant to this Agreement and shall otherwise be in
substantially the form of the attached Exhibit A.

		
	 	     (e) Participations. Each Lender may sell participations to one or
more banks or other entities in or to all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its Commitments, the Pro Rata Shares of the Loan Amount owing
to it, and the Notes held by it); provided, however, that (i) such
Lender’s obligations under this Agreement (including, without limitation,
its Commitments to the Borrower hereunder) shall remain unchanged, (ii)
such Lender shall remain solely responsible to the other parties hereto
for the performance of such obligations, (iii) such Lender shall remain
the holder of any such Notes for all purposes of this Agreement, (iv) the
Borrower, the Administrative Agent, and the other Lenders shall continue
to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement, (v) such Lender
shall not require the participant’s consent to any matter under this
Agreement, except for change in the principal amount of any Note in which
the participant has an interest, reductions in fees or interest, or
extending the Maturity Date except as permitted in this Agreement, and
(vi) such Lender shall give prompt notice to the Borrower of each such
participation sold by such Lender. The Borrower hereby agrees that
participants shall have the same rights under Sections 2.08, 2.09,
2.11(c), and 10.07 hereof as the Lender to the extent of their respective
participations.

		
	 	     (f) Confidentiality. Each Lender agrees to preserve the
confidentiality of any confidential information relating to the Parent,
the Borrower and their respective Subsidiaries received by Lender;
provided that each Lender may furnish any such confidential information
in the possession of such Lender from time to time to (i) assignees and
participants (including prospective assignees and participants), (ii) its
attorneys, accountants, regulators, the National Association of Insurance
Commissioners, governmental authorities and any self-governing
organization to which is a member, (iii) any direct or indirect
contractual counterparty to such Lender in swap agreements or such
contractual counterparty’s professional advisor and (iv) the Related
Funds, Affiliates, directors, partners, officers, employees of such
Person or its Affiliates or Related Funds; provided that, prior to any
such disclosure, such Person shall agree in writing to preserve the
confidentiality of any confidential information relating to the Borrower
and its Subsidiaries received by it from or on behalf of such Lender.

     Section 10.07 Indemnification. The Borrower shall indemnify the
Administrative Agent, the Lenders (including any lender which was a Lender
hereunder prior to any full assignment of its Commitment), any assignees and
participants permitted hereunder, and each affiliate thereof and their
respective directors, officers, employees and agents from, and discharge,
release, and hold each of them harmless against, any and all losses,
liabilities, claims or damages to which any of them may become subject, insofar
as such losses, liabilities, claims or damages arise out of or result from (i)
any actual or proposed use by the Borrower or any Affiliate of the Borrower of
the proceeds of any Advance, (ii) any breach by the Borrower or any Guarantor
of any provision of this Agreement or any other Credit Document, (iii) any
investigation, litigation or other proceeding (including any threatened
investigation or proceeding) relating to the foregoing,

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 or (iv) any Environmental Claim or requirement of Environmental Laws
concerning or relating to the present or previously-owned or operated
properties, or the operations or business, of the Borrower or any of its
Subsidiaries, and the Borrower shall reimburse the Administrative Agent, and
each Lender, and each affiliate thereof and their respective directors,
officers, employees and agents, upon demand for any reasonable out-of-pocket
expenses (including legal fees) incurred in connection with any such
investigation, litigation or other proceeding; and expressly including any such
losses, liabilities, claims, damages, or expense incurred by reason of such
indemnified Person’s own negligence, but excluding any such losses,
liabilities, claims, damages or expenses incurred by reason of the gross
negligence or willful misconduct of the Person to be indemnified.

     Section 10.08 Execution in Counterparts. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

     Section 10.09 Survival of Representations, Indemnifications, etc. All
representations and warranties contained in this Agreement or made in writing
by or on behalf of the Borrower in connection herewith shall survive the
execution and delivery of this Agreement and the Credit Documents, the making
of the Advances and any investigation made by or on behalf of the Lenders, none
of which investigations shall diminish any Lender’s right to rely on such
representations and warranties. All obligations of the Borrower provided for
in Sections 2.08, 2.09, 2.11(c), 9.05 and 10.07 shall survive any termination
of this Agreement and repayment in full of the Obligations.

     Section 10.10 Severability. In case one or more provisions of this
Agreement or the other Credit Documents shall be invalid, illegal or
unenforceable in any respect under any applicable law, the validity, legality
and enforceability of the remaining provisions contained herein or therein
shall not be affected or impaired thereby.

     Section 10.11 Usury Not Intended. It is the intent of the Borrower and
each Lender in the execution and performance of this Agreement and the other
Credit Documents to contract in strict compliance with applicable usury laws,
including conflicts of law concepts, governing the Advances of each Lender
including such applicable laws of the State of New York and the United States
of America from time to time in effect. In furtherance thereof, the Lenders
and the Borrower stipulate and agree that none of the terms and provisions
contained in this Agreement or the other Credit Documents shall ever be
construed to create a contract to pay, as consideration for the use,
forbearance or detention of money, interest at a rate in excess of the Maximum
Rate and that for purposes hereof “interest” shall include the aggregate of all
charges which constitute interest under such laws that are contracted for,
charged or received under this Agreement; and in the event that,
notwithstanding the foregoing, under any circumstances the aggregate amounts
taken, reserved, charged, received or paid on the Advances, include amounts
which by applicable law are deemed interest which would exceed the Maximum
Rate, then such excess shall be deemed to be a mistake and each Lender
receiving same shall credit the same on the principal of its Notes (or if such
Notes shall have been paid in full, refund said excess to the Borrower). In
the event that the maturity of the Notes is accelerated by reason of any
election of the holder thereof resulting from any Event of Default under this
Agreement or otherwise, or in

-78-

 

 the event of any required or permitted prepayment, then such consideration
that constitutes interest may never include more than the Maximum Rate and
excess interest, if any, provided for in this Agreement or otherwise shall be
canceled automatically as of the date of such acceleration or prepayment and,
if theretofore paid, shall be credited on the applicable Notes (or, if the
applicable Notes shall have been paid in full, refunded to the Borrower). In
determining whether or not the interest paid or payable under any specific
contingencies exceeds the Maximum Rate, the Borrower and the Lenders shall to
the maximum extent permitted under applicable law amortize, prorate, allocate
and spread in equal parts during the period of the full stated term of the
Notes all amounts considered to be interest under applicable law at any time
contracted for, charged, received or reserved in connection with the
Obligations. The provisions of this Section shall control over all other
provisions of this Agreement or the other Credit Documents which may be in
apparent conflict herewith.

     Section 10.12 GOVERNING LAW. THIS AGREEMENT AND THE OTHER CREDIT
DOCUMENTS SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED, AND ANY DISPUTE BETWEEN
THE BORROWER, THE ADMINISTRATIVE AGENT, ANY LENDER, OR ANY INDEMNITEE ARISING
OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED BETWEEN THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER
CREDIT DOCUMENTS, AND WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE,
SHALL BE RESOLVED IN ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING, WITHOUT
LIMITATION, SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW, BUT OTHERWISE
WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF NEW YORK.

     Section 10.13 CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL.

		
	 	     (A) EXCLUSIVE JURISDICTION. EXCEPT AS PROVIDED IN SUBSECTION (B),
EACH OF THE PARTIES HERETO AGREES THAT ALL DISPUTES AMONG THEM ARISING
OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED AMONG THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE
OTHER CREDIT DOCUMENTS WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR
OTHERWISE, SHALL BE RESOLVED EXCLUSIVELY BY STATE OR FEDERAL COURTS
LOCATED IN NEW YORK, NEW YORK, BUT THE PARTIES HERETO ACKNOWLEDGE THAT
ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED
OUTSIDE OF NEW YORK, NEW YORK. EACH OF THE PARTIES HERETO WAIVES IN ALL
DISPUTES BROUGHT PURSUANT TO THIS SUBSECTION (A) ANY OBJECTION THAT IT
MAY HAVE TO THE LOCATION OF THE COURT CONSIDERING THE DISPUTE.

		
	 	     (B) OTHER JURISDICTIONS. THE BORROWER AGREES THAT ANY AGENT, ANY
LENDER OR ANY INDEMNITEE SHALL HAVE THE RIGHT TO PROCEED AGAINST THE
BORROWER OR ITS PROPERTY IN A

-79-

 

		
	 	COURT IN ANY LOCATION TO ENABLE SUCH PERSON TO (1) OBTAIN PERSONAL
JURISDICTION OVER THE BORROWER OR (2) ENFORCE A JUDGMENT OR OTHER COURT
ORDER ENTERED IN FAVOR OF SUCH PERSON. THE BORROWER AGREES THAT IT WILL
NOT ASSERT ANY PERMISSIVE COUNTERCLAIMS IN ANY PROCEEDING BROUGHT BY SUCH
PERSON TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF SUCH
PERSON. THE BORROWER WAIVES ANY OBJECTION THAT IT MAY HAVE TO THE
LOCATION OF THE COURT IN WHICH SUCH PERSON HAS COMMENCED A PROCEEDING
DESCRIBED IN THIS SUBSECTION (B).

		
	 	     (C) SERVICE OF PROCESS. THE BORROWER WAIVES PERSONAL SERVICE OF ANY
PROCESS UPON IT AND IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY
WRITS, PROCESS OR SUMMONSES IN ANY SUIT, ACTION OR PROCEEDING BY THE
MAILING THEREOF BY ANY AGENT OR THE LENDERS BY REGISTERED OR CERTIFIED
MAIL, POSTAGE PREPAID, TO THE BORROWER ADDRESSED AS PROVIDED HEREIN.
NOTHING HEREIN SHALL IN ANY WAY BE DEEMED TO LIMIT THE ABILITY OF ANY
AGENT OR THE LENDERS TO SERVE ANY SUCH WRITS, PROCESS OR SUMMONSES IN ANY
OTHER MANNER PERMITTED BY APPLICABLE LAW. THE BORROWER IRREVOCABLY
WAIVES ANY OBJECTION (INCLUDING, WITHOUT LIMITATION, ANY OBJECTION OF THE
LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS) WHICH IT
MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH IN ANY
JURISDICTION SET FORTH ABOVE.

		
	 	     (D) WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY
WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE,
WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF,
CONNECTED WITH, RELATED TO OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED
AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH. EACH
OF THE PARTIES HERETO AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY
AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF
THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

		
	 	     (E) WAIVER OF BOND. THE BORROWER WAIVES THE POSTING OF ANY BOND
OTHERWISE REQUIRED OF ANY PARTY HERETO IN

-80-

 

		
	 	CONNECTION WITH ANY JUDICIAL PROCESS OR PROCEEDING TO REALIZE ON THE
COLLATERAL ENFORCE ANY JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF
SUCH PARTY, OR TO ENFORCE BY SPECIFIC PERFORMANCE, TEMPORARY RESTRAINING
ORDER, PRELIMINARY OR PERMANENT INJUNCTION, THIS AGREEMENT OR ANY OTHER
CREDIT DOCUMENT.

		
	 	     (F) ADVICE OF COUNSEL. EACH OF THE PARTIES REPRESENTS TO EACH OTHER
PARTY HERETO THAT IT HAS DISCUSSED THIS AGREEMENT AND, SPECIFICALLY, THE
PROVISIONS OF THIS SECTION 10.13 AND SECTION 10.20, WITH ITS COUNSEL.

     Section 10.14 Knowledge of Borrower. For purposes of this Agreement,
“knowledge of the Borrower” means the actual knowledge of any of the executive
officers and all other Responsible Officers of the Parent.

     Section 10.15 Lenders Not in Control. None of the covenants or other
provisions contained in the Credit Documents shall or shall be deemed to, give
the Lenders the rights or power to exercise control over the affairs and/or
management of the Borrower, any of its Subsidiaries or any Guarantor, the power
of the Lenders being limited to the right to exercise the remedies provided in
the Credit Documents; provided, however, that if any Lender becomes the owner
of any Ownership Interests in any Person, whether through foreclosure or
otherwise, such Lender shall be entitled (subject to requirements of law) to
exercise such legal rights as it may have by being owner of such Ownership
Interests in such Person.

     Section 10.16 Headings Descriptive. The headings of the several Sections
and paragraphs of the Agreement are inserted for convenience only and shall not
in any way affect the meaning or construction of any provision of this
Agreement.

     Section 10.17 Time is of the Essence. Time is of the essence under the
Credit Documents.

     Section 10.18 Intentionally Deleted.

     Section 10.19 Judgment Currency. The obligations of the Borrowers
hereunder and under the Notes to make payments in Dollars, shall not be
discharged or satisfied by any tender or recovery pursuant to any judgment
expressed in or converted into any currency other than Dollar.

     Section 10.20 No Consequential Damages. NOTWITHSTANDING ANYTHING
CONTAINED TO THE CONTRARY IN ANY OTHER PROVISION OF THIS AGREEMENT, EACH PERSON
PARTY HERETO FOR ITSELF AND ON BEHALF OF ITS AFFILIATES AGREES THAT THE
RECOVERY OF ANY DAMAGES SUFFERED OR INCURRED AS A RESULT OF ANY BREACH BY ANY
PERSON OF ANY OF ITS REPRESENTATIONS, WARRANTIES OR OBLIGATIONS UNDER THIS
AGREEMENT OR ANY OTHER CREDIT DOCUMENT SHALL BE LIMITED TO THE ACTUAL DAMAGES
SUFFERED OR INCURRED AS A RESULT OF THE BREACH BY THE BREACHING PARTY OF ITS

-81-

 

 REPRESENTATIONS, WARRANTIES OR OBLIGATIONS HEREUNDER OR UNDER ANY OTHER
CREDIT DOCUMENT AND IN NO EVENT SHALL THE BREACHING PARTY BE LIABLE TO ANY
NON-BREACHING PARTY FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR
PUNITIVE DAMAGES (INCLUDING, WITHOUT LIMITATION, ANY DAMAGES ON ACCOUNT OF LOST
PROFITS OR OPPORTUNITIES OR LOST OR DELAYED PRODUCTION) SUFFERED OR INCURRED BY
THE NON-BREACHING PARTY AS A RESULT OF THE BREACH BY THE BREACHING PARTY OF ANY
OF ITS REPRESENTATIONS, WARRANTIES OR OBLIGATIONS HEREUNDER OR UNDER ANY OTHER
CREDIT DOCUMENT.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-82-

 

SIGNATURE PAGE OF SUBORDINATE UNSECURED TERM LOAN AGREEMENT

     EXECUTED as of the date first referenced above.

	 	 	 	 
	 	BORROWER:
	 
	 	MERISTAR H & R OPERATING COMPANY, L.P.
	 
	 	By:     	Interstate Hotels & Resorts, Inc. (fka
MeriStar Hotels & Resorts, Inc.), its
general partner
	 
	 	By:
	 	

	 	Name:
	 	

	 	Title:
	 	

 

SIGNATURE PAGE OF SENIOR SECURED CREDIT AGREEMENT

	 	 	 
	 	LEHMAN COMMERCIAL PAPER INC.
	 
	 	By:
	 	

	 	Name:
	 	

	 	Title:
	 	

 

SIGNATURE PAGE OF SENIOR SECURED CREDIT AGREEMENT

	 	 	 
	 	LEHMAN BROTHERS INC.
	 
	 	By:
	 	

	 	Name:
	 	

	 	Title:
	 	

 

EXHIBIT A

FORM OF NOTE

	 	 	 	 	 	 	 
	$	 	 
	 	 
	 	,2003
	 	 	

	 	

	 	 

     For value received, the undersigned MeriStar H & R Operating Company,
L.P., a Delaware limited partnership, as the Borrower, hereby promises to pay
to the order of           , as the Lender, the principal amount of
and                /100 Dollars ($           ), together with interest on the unpaid
principal amount of this Note from the date advanced until such principal
amount is paid in full, at such interest rates, and at such times, as are
specified in the Credit Agreement.

     This Note is one of the Notes referred to in, and is entitled to the
benefits of, and is subject to the terms of, the Subordinate Unsecured Term
Loan Agreement dated as of January 10, 2003 (as the same may be amended or
modified from time to time, the “Credit Agreement”), among the Borrower, the
Lenders, Lehman Commercial Paper, Inc., as Administrative Agent, and Lehman
Brothers, Inc., as Lead Arranger and Book Runner. Capitalized terms used in
this Note that are defined in the Credit Agreement and not otherwise defined in
this Note have the meanings assigned to such terms in the Credit Agreement.
The Credit Agreement, among other things, contains provisions for acceleration
of the maturity of this Note upon the happening of certain events stated in the
Credit Agreement and for prepayments of principal prior to the maturity of this
Note upon the terms and conditions specified in the Credit Agreement.

     Both principal and interest are payable in Dollars, the lawful money of
the United States of America, to the Administrative Agent at 745 Seventh
Avenue, 16th Floor, New York, New York 10019, Fax No. 212-526-6643, Phone No.
212-526-6590, Attn: Diane Albanese, (or at such other location or address as
may be specified by the Administrative Agent to the Borrower) in same day funds
without set-off, deduction or counterclaim. The Lender shall record all
payments of principal made under this Note, but no failure of the Lender to
make such recordings shall affect the Borrower’s repayment obligations under
this Note.

     Except as specifically provided in the Credit Agreement, the Borrower
hereby waives presentment, demand, protest, notice of intent to accelerate,
notice of acceleration, and any other notice of any kind. No failure to
exercise, and no delay in exercising, any rights hereunder on the part of the
holder of this Note shall operate as a waiver of such rights.

 

 

     This Note shall be governed by, and construed and enforced in accordance
with, the laws of the state of New York.

	 	 	 	 	 	 	 
	 	 	MERISTAR H & R OPERATING COMPANY, L.P.
	 	 	 	 	 	 	 
	 	 	By:	 	Interstate Hotels & Resorts, Inc. (fka

MeriStar Hotels & Resorts, Inc.), its

general partner
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	

	 	 	 	 	 	 	 
	 	 	 	 	Name:
	 	

	 	 	 	 	 	 	 
	 	 	 	 	Title:
	 	

 

 

EXHIBIT B

FORM OF ADJUSTMENT REPORT

     This Adjustment Report (“Adjustment Report”) is executed this      day of
     , 20     and is prepared pursuant to Section 2.14 of that certain
Subordinate Unsecured Term Loan Agreement (as amended or modified from time to
time, the “Credit Agreement”) between MERISTAR H & R OPERATING COMPANY, L.P., a
Delaware limited partnership (the “Borrower”); LEHMAN COMMERCIAL PAPER, INC.,
as the Administrative Agent, LEHMAN BROTHERS, INC., as Lead Arranger and Book
Runner; and the other lenders party thereto. Capitalized terms used herein but
not otherwise defined herein shall have the meanings specified by the
Agreement.

     This Report is issued following the [making, acquisition, disposition or
incurrence] by the [Parent, Borrower or its Subsidiary] (the “Adjustment
Event”) of the following Investment or Indebtedness:

     Pursuant to Section 2.14 of the Credit Agreement, following each making,
acquisition or disposition by the Parent or its Subsidiary of an Investment
with an Investment Amount in excess of $5,000,000 or the incurrence by the
Parent or its Subsidiary of additional Indebtedness (excluding any Obligations)
in excess of $5,000,000, the Leverage Ratio and the Senior Leverage Ratio shall
be adjusted accordingly.

	 	 	 	 	 	 	 	 	 
	 	 	The Investment Amount for the Investment is:	 	$

	 	 
	 	 	 	 	 	 	 	 	 
	 	 	The Leverage Ratio for the Parent, prior to the Adjustment Event is set
forth in 3 below, based on the ratio of:	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
1.
	 	Parent’s Total Indebtedness as of the immediately preceding

Status Reset Date:
	 	$	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
2.
	 	Adjusted EBITDA of Parent and the Parent’s Subsidiaries

(on a Consolidated basis) for the preceding Rolling Period:
	 	$	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
3.
	 	Ratio of 1 to 2 above:	 	 	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	The Leverage Ratio for the Parent, immediately following the Adjustment
Event is set forth in 3 below, based on the ratio of:	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
1.
	 	Parent’s Total Indebtedness as of the date of the Adjustment

Event taking into account the Adjustment Event:
	 	$	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
2.
	 	Adjusted EBITDA of Parent and the Parent’s Subsidiaries

(on a Consolidated basis) for the preceding Rolling Period:
	 	$	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
3.
	 	Ratio of 1 to 2 above:	 	 	 	 
	 	 	 	 	 	 	
	 	 

     Required by the Agreement:

 

 

	 	 	 	 	 
	Beginning Date of	 	Ending Date of	 	 
	Applicable Period	 	Applicable Period	 	Leverage Ratio
	

	Closing Date	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing October
1, 2002
	 	5.50 to 1.00
	

	The Status Reset

Date during the
Fiscal Quarter
commencing October
1, 2002	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing January
1, 2003
	 	5.00 to 1.00
	

	The Status Reset

Date during the
Fiscal Quarter
commencing January
1, 2003	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing July 1,
2003
	 	4.75 to 1.00
	

	The Status Reset
Date during the
Fiscal Quarter
commencing July 1,
2003	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing October
1, 2003
	 	4.25 to 1.00
	

	The Status Reset

Date during the
Fiscal Quarter
commencing October
1, 2003	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing January
1, 2004
	 	4.00 to 1.00
	

	The Status Reset

Date during the
Fiscal Quarter
commencing January
1, 2004	 	
No ending date
	 	3.50 to 1.00
	

 

 

	 	 	 	 	 	 	 	 	 
	 	 	The Senior Leverage Ratio for the Parent, prior to the Adjustment Event  
is set forth in 3 below, based on the ratio of:
	 
	 	 	
1.
	 	Parent’s Senior Indebtedness as of the immediately preceding
Status Reset Date:
	 	$
	 	 	 	 	 	 	

	 
	 	 	
2.
	 	Adjusted EBITDA of Parent and the Parent’s Subsidiaries
(on a Consolidated basis) for the preceding Rolling Period:
	 	$
	 	 	 	 	 	 	

	 
	 	 	
3.
	 	Ratio of 1 to 2 above:	 	 
	 	 	 	 	 	 	

	 
	 	 	The Senior Leverage Ratio for the Parent, immediately following the
Adjustment Event is set forth in 3 below, based on the ratio of:
	 
	 	 	
1.
	 	Parent’s Senior Indebtedness as of the date of the Adjustment
Event taking into account the Adjustment Event:
	 	$
	 	 	 	 	 	 	

	 
	 	 	
2.
	 	Adjusted EBITDA of Parent and the Parent’s Subsidiaries
(on a Consolidated basis) for the preceding Rolling Period:
	 	$
	 	 	 	 	 	 	

	 
	 	 	
3.
	 	Ratio of 1 to 2 above:	 	 
	 	 	 	 	 	 	

     Required by the Agreement:

	 	 	 	 	 
	Beginning Date of	 	Ending Date of	 	 
	Applicable Period	 	Applicable Period	 	Senior Leverage Ratio
	

	Closing Date	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing January
1, 2003
	 	4.00 to 1.00
	

	The Status Reset

Date during the
Fiscal Quarter
commencing January
1, 2003	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing January
1, 2004
	 	3.25 to 1.00
	

	The Status Reset

Date during the
Fiscal Quarter
commencing January
1, 2004	 	
No ending date
	 	2.50 to 1.00
	

 

 

     The Borrower has caused this Adjustment Report to be executed this      
day of      , 20     .

	 	 	 	 	 	 	 
	 	 	MERISTAR H & R OPERATING COMPANY, L.P.
	 	 	 	 	 	 	 
	 	 	By:	 	Interstate Hotels & Resorts, Inc. (fka

MeriStar Hotels & Resorts, Inc.), its

general partner
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	

	 	 	 	 	Name:
	 	

	 	 	 	 	Title:
	 	

 

 

EXHIBIT C

FORM OF ASSIGNMENT AND ACCEPTANCE

DATED _______, 20___

     Reference is made to the Subordinate Unsecured Term Loan Agreement dated
as of January [10], 2003 (as the same may be amended or modified from time to
time, the “Credit Agreement”) among MeriStar H & R Operating Company, L.P., a
Delaware limited partnership (the “Borrower”), the Lenders; LEHMAN COMMERCIAL
PAPER, INC., as the Administrative Agent, LEHMAN BROTHERS, INC., as Lead
Arranger and Book Runner; and the other lenders party thereto. Capitalized
terms not otherwise defined in this Assignment and Acceptance shall have the
meanings assigned to them in the Credit Agreement.

     Pursuant to the terms of the Credit Agreement,      (“Assignor”)
wishes to assign and delegate certain of its rights and obligations under the
Credit Agreement. Therefore, Assignor,      (“Assignee”), and
the Administrative Agent agree as follows:

	1.	 	As of the Effective Date (as defined below), the Assignor hereby sells
and assigns and delegates to the Assignee, and the Assignee hereby
purchases and assumes from the Assignor, without recourse to the Assignor
and without representation or warranty except for the representations and
warranties specifically set forth in clauses (i)-(v) of Section 2, a
[     ] %1 interest in and to all of the Assignor’s rights and obligations
under the Credit Agreement in connection with Assignor’s Commitment, the
Advance owing to the Assignor, and the Note held by the Assignor (if
Assignor possesses a Note)].
	 
	2.	 	The Assignor (i) represents and warrants that, prior to executing this
Assignment and Acceptance, its Commitment is $     and the
aggregate outstanding principal amount of the Loan owed to it by the
Borrower is $     ; (ii) represents and warrants that it is
the legal and beneficial owner of the interest being assigned by it
hereunder and that such interest is free and clear of any adverse claim;
(iv) makes no representation or warranty and assumes no responsibility
with respect to any statements, warranties, or representations made in or
in connection with the Credit Agreement or any other Credit Document or
the execution, legality, validity, enforceability, genuineness,
sufficiency, or value of the Credit Agreement or any other Credit Document
or any other instrument or document furnished pursuant thereto; (v) makes
no representation or warranty and assumes no responsibility with respect
to the financial condition of the Borrower or any Guarantor or the
performance or observance by the Borrower or any Guarantor of any of its
obligations under the Credit Agreement or any other Credit Document or any
other instrument or document furnished pursuant thereto; [and (vi)
attaches the Note referred to in paragraph 1 above and requests that the
Administrative Agent exchange such note for a new Note, dated
     ]. 200     in the principal amount of $     , payable
to the order of the Assignee.
	 
	3.	 	The Assignee (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 5.05 thereof and such other documents and

	 	 	1 Specify percentage in no more than 5 decimal points.

 

 

	 	 	information as it has deemed appropriate to make its own credit analysis
and decision to enter into this Assignment and Acceptance; (ii) agrees
that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Credit Agreement or any
other Credit Document; (iii) appoints and authorizes the Administrative
Agent to take such action as administrative agent on its behalf and to
exercise such powers under the Credit Agreement and any other Credit
Document as are delegated to the Administrative Agent by the terms
thereof, together with such powers as are reasonably incidental thereto;
(iv) agrees that it will perform in accordance with their terms all of the
obligations which by the terms of the Credit Agreement or any other Credit
Document are required to be performed by it as a Lender; (v) specifies as
its Domestic Lending Office, Eurodollar Lending Office and credit contact
address the offices set forth beneath its name on the signature pages
hereof; (vi) attaches the forms prescribed by the Internal Revenue Service
of the United States certifying as to the Assignee’s status for purposes
of determining exemption from United States withholding taxes with respect
to all payments to be made to the Assignee under the Credit Agreement and
its Notes or such other documents as are necessary to indicate that all
such payments are subject to such rates at a rate reduced by an applicable
tax treaty2, and (viii) represents that it is an Eligible Assignee.
	 
	4.	 	The effective date for this Assignment and Acceptance shall be
     (the “Effective Date”)3 and following the execution of
this Assignment and Acceptance, the Administrative Agent will record it in
the Register pursuant to Section 10.06 of the Credit Agreement.
	 
	5.	 	Upon such recording, and as of the Effective Date, (i) the Assignee shall
be a party to the Credit Agreement for all purposes, and, to the extent
provided in this Assignment and Acceptance, have the rights and
obligations of a Lender thereunder and (ii) the Assignor shall, to the
extent provided in this Assignment and Acceptance, relinquish its rights
(other than rights against the Borrower pursuant to Sections 2.09, 2.11(c)
and 9.07 of the Credit Agreement, which shall survive this assignment) and
be released from its obligations under the Credit Agreement.
	 
	6.	 	Upon such recording, from and after the Effective Date, the
Administrative Agent shall make all payments under the Credit Agreement
and the Notes in respect of the interest assigned hereby (including,
without limitation, all payments of principal, interest, and commitment
fees) to the Assignee. The Assignor and Assignee shall make all
appropriate adjustments in payments under the Credit Agreement and the
Notes for periods prior to the Effective Date directly between themselves.
	 
	7.	 	This Assignment and Acceptance shall be governed by, and construed and
enforced in accordance with, the laws of the State of New York.

     The parties hereto have caused this Assignment and Acceptance to be duly
executed as of the date first above written.

	 	 	2 If the Assignee is organized under the laws of a jurisdiction outside the
United States.
	 
	 	 	3 See Section 10.06. Such date shall be at least three Business Days after the
execution of this Assignment and Acceptance.

 

 

	 	 	 	 	 	 
	 	 	[ASSIGNOR]
	 	 	 	 	 
	 	 	
By:

Name:

Title:
	 	

	 	 	 	 	 
	 	 	
Address:
	 	

	 	 	 	 	 
	 	 	
Attention:

Telecopy:

Telephone:
	 	

 

 

	 	 	 	 	 	 
	 	 	[ASSIGNEE]
	 	 	 	 	 
	 	 	
By:

Name:

Title:
	 	

	 	 	 	 	 
	 	 	Domestic Lending Office:
	 	 	 	 	 
	 	 	
Address:
	 	

	 	 	 	 	 
	 	 	
Attention:

Telecopy:

Telephone:
	 	

	 	 	 	 	 
	 	 	Eurodollar Lending Office:
	 	 	 	 	 
	 	 	
Address:
	 	

	 	 	 	 	 
	 	 	
Attention:

Telecopy:

Telephone:
	 	

	 	 	 	 	 
	 	 	Credit Contact Address:
	 	 	 	 	 
	 	 	
Address:
	 	

	 	 	 	 	 
	 	 	
Attention:

Telecopy:

Telephone:
	 	

	 	 	 	 	 
	 	 	Société Générale,

as Administrative Agent
	 	 	 	 	 
	 	 	
By:

Name:

Title:
	 	

	 	 	 	 	 	 
	 	 	
Address:
	 	2001 Ross Avenue

Suite 4900

Dallas, Texas 75201
	 	 	 	 	 
	 	 	Attention: Thomas K. Day

Telecopy: (214) 979-2727

Telephone: (24) 979-2777

 

 

EXHIBIT D

FORM OF COMPLIANCE CERTIFICATE

     This Compliance Certificate is executed this      of      , 200     and is
prepared pursuant to that certain Subordinate Unsecured Term Loan Agreement (as
amended or modified from time to time, the “Agreement”) between MERISTAR H & R
OPERATING COMPANY, L.P., a Delaware limited partnership (the “Borrower”);
LEHMAN COMMERCIAL PAPER, INC., as the Administrative Agent, LEHMAN BROTHERS,
INC., as Lead Arranger and Book Runner; and the other lenders party thereto.
Capitalized terms used herein but not otherwise defined herein shall have the
meanings specified by the Agreement.

	1.	 	Representations, Covenants, Defaults: Borrower hereby certifies to the
Administrative Agent and the Lenders, effective as of the date of
execution of this Compliance Certificate, as follows:

	 	1.1	 	Covenants. All covenants of Borrower set forth in Articles V
and VI of the Agreement required to be performed as of the date
hereof have been performed and maintained in all material respects,
and such covenants continue to be performed and maintained as of the
execution date of this certificate, except as follows:
	 
	 	1.2	 	Representations and Warranties. All representations and
warranties of Borrower set forth in Article IV of the Agreement are
true and correct in all material respects as of the execution date of
this certificate, except as follows:
	 
	 	1.3	 	Event of Default. There exists no Event of Default except as
follows:

	2.	 	Operating Covenants. Borrower hereby certifies to the Administrative
Agent and the Lenders that the amounts and calculations made hereunder
pursuant to Article VII of the Agreement are true and correct.

	 	2.1	 	Interest Coverage Ratio (Section 7.01 of the Agreement).

	 	 	The Interest Coverage Ratio for the Parent, for the Rolling Period
ending on      , 200     is as set forth in (c) below, based
on the ratio of:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
(a)
	 	Parent’s Adjusted EBITDA (on a Consolidated basis):
	 	$
	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
(b)
	 	Parent’s Interest Expense:
	 	$	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
(c)
	 	Ratio of (a) to (b) above:	 	 	 	 
	 	 	 	 	 	 	
	 	 

	 	 	 	Required by the Agreement:
	 
	 	 	 	The Parent shall maintain at the end of each Rolling Period
(a) for the Rolling Period ending on September 30, 2002, an
Interest Coverage Ratio of not less than 1.75 to 1.00, (b) for
the Rolling Periods ending on December 31, 2002 through
September, 2003, an Interest Coverage Ratio of not less than
2.25 to 1.00, and (c)

 

 

	 	 	 	for any Rolling Period thereafter, an Interest Coverage Ratio
of not less than 2.50 to 1.00.
	 
	 	2.2	 	Senior Interest Coverage Ratio (Section 7.02 of the Agreement).
	 
	 	 	 	The Senior Interest Coverage Ratio for the Parent, for the Rolling
Period ending on      , 200     , is as set forth in (c) below,
based on the ratio of:

	 	 	 	 	 	 	 	 	 
	 	 	
(a)
	 	Parent’s Adjusted EBITDA (on a Consolidated basis):
	 	$	 	 	 	 
	 	 	 	 	 	 	
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	
(b)
	 	Parent’s Interest Expense pertaining to Senior
Indebtedness:
	 	$	 	 	 
	 	 	 	 	 	 	
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	
(c)
	 	Ratio of (a) to (b) above:	 	 	 	 	 	 
	 	 	 	 	 	 	
	 	 	 

	 	 	 	Required by the Agreement:
	 
	 	 	 	The Parent shall maintain at the end of each Rolling Period, (a) for
the Rolling Period ending on September 30, 2002, a Senior Interest
Coverage Ratio of not less than 3.00 to 1.00 and (b) for any Rolling
Period thereafter, a Senior Interest Coverage Ratio of not less than
3.50 to 1.00.
	 
	 	2.3	 	Leverage Ratio (Section 7.03 of the Agreement).
	 
	 	 	 	The Leverage Ratio for the Parent, as of      , 200     (the
Status Reset Date for the current Fiscal Quarter) based on the
Parent’s Total Indebtedness as of such Status Reset Date and the
Parent’s Adjusted EBITDA for the Rolling Period ending on
     , 200     , is set forth in (c) below, based on the
	 
	 	 	 	ratio of:

	 	 	 	 	 	 	 	 	 
	 	 	(a)	 	
Parent’s Total Indebtedness:
	 	$	 	 	 	 
	 	 	 	 	 	 	
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	(b)	 	
Parent’s Adjusted EBITDA (on a Consolidated basis):
	 	$	 	 	 
	 	 	 	 	 	 	
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	(c)	 	
Ratio of (a) to (b) above:	 	 	 	 	 	 
	 	 	 	 	 	 	
	 	 	 

 

 

     Required by the Agreement:

	 	 	 	 	 
	Beginning Date of	 	Ending Date of	 	 
	Applicable Period	 	Applicable Period	 	Leverage Ratio
	

	Closing Date	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing October
1, 2002
	 	6.00 to 1.00
	

	The Status Reset

Date during the
Fiscal Quarter
commencing October
1, 2002	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing January
1, 2003
	 	5.50 to 1.00
	

	The Status Reset

Date during the
Fiscal Quarter
commencing January
1, 2003	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing July 1,
2003
	 	5.25 to 1.00
	

	The Status Reset
Date during the
Fiscal Quarter
commencing July 1,
2003	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing October
1, 2003
	 	4.75 to 1.00
	

	The Status Reset

Date during the
Fiscal Quarter
commencing October
1, 2003	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing January
1, 2004
	 	4.50 to 1.00
	

	The Status Reset

Date during the
Fiscal Quarter
commencing January
1, 2004	 	
No ending date
	 	4.00 to 1.00
	

	 	2.4	 	Senior Leverage Ratio (Section 7.04 of the Agreement).
	 
	 	 	 	The Senior Leverage Ratio for the Parent, as of      , 200     
(the Status Reset Date for the current Fiscal Quarter) based on the
Parent’s Total Indebtedness as of such Status Reset Date and the
Parent’s Adjusted EBITDA for the Rolling Period ending on
     , 200     , is set forth in (c) below, based on the
	 
	 	 	 	ratio of:

	 	 	 	 	 	 	 	 	 
	 	 	
(a)
	 	Parent’s Senior Indebtedness:
	 	$	 	 
	 	 	 	 	 	 	
	 	 
	 	 	
(b)
	 	Parent’s Adjusted EBITDA (on a Consolidated basis):
	 	$	 	 
	 	 	 	 	 	 	
	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	
(c)
	 	Ratio of (a) to (b) above:	 	 	 	 
	 	 	 	 	 	 	
	 	 

     Required by the Agreement:

	 	 	 	 	 
	Beginning Date of	 	Ending Date of	 	 
	Applicable Period	 	Applicable Period	 	Senior Leverage Ratio
	

	Closing Date	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing January
1, 2003
	 	4.00 to 1.00
	

	The Status Reset

Date during the
Fiscal Quarter
commencing January
1, 2003	 	
The day immediately
prior to the Status
Reset Date during
the Fiscal Quarter
commencing January
1, 2004
	 	3.25 to 1.00
	

	The Status Reset

Date during the
Fiscal Quarter
commencing January
1, 2004	 	
No ending date
	 	2.50 to 1.00
	

	 	2.5	 	Maintenance of Net Worth (Section 7.05 of the Agreement).
	 
	 	 	 	The Adjusted Net Worth for the Parent, as of the Rolling Period
ending on      , 200     , is as set forth in (d) below, based
on the sum of:

	 	 	 	 	 	 	 	 	 
	 	 	
(a)
	 	Parent’s Net Worth (determined in accordance
with GAAP):
	 	$	 	 
	 	 	 	 	 	 	
	 
	 	 	 	 	 	 	 	 	 
	 	 	
(b)
	 	minority interest of Parent (determined in
accordance with GAAP):
	 	$	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
(c)
	 	Sum of (a) and (b) above:
	 	$	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	The Minimum Net Worth for the Parent, as of the Rolling Period
ending on _____________, 200__, is as set forth in (e) below, based
upon the total of (a) plus (b) plus (c) minus (d):	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
(a)
	 	$75,000,000	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
(b)
	 	75% of the aggregate net proceeds received by the
Parent or any of its Subsidiaries after the date of the
Agreement in connection with any Capitalization Events
taken as a whole, including without limitation in
connection with the acquisition of any Investment
or other Property:
	 	$	 	 
	 	 	 	 	 	 	
	 
	 	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	
(c)
	 	to the extent a positive number, 75% of the
aggregate Net Income of the Parent and the
Parent’s Subsidiaries
for the period from and including July 1, 2002 to the date
of testing, on a Consolidated basis:
	 	$	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
(d)
	 	an amount equal to the lesser of (i) $25,000,000 or
(ii) the sum of (A) the Parent’s write-off under GAAP
of the Parent’s or the Parent’s Subsidiary’s Investment
with respect to the St. Louis Radisson Hotel up to a
maximum write-off of $11,500,000 and (B) the aggregate
amount of all of the Parent’s write-offs under GAAP of
intangible assets that occur after June 30, 2002:
	 	$	 	 
	 	 	 	 	 	 	
	 
	 	 	 	 	 	 	 	 	 
	 	 	
(e)
	 	The sum of (a) plus (b) plus (c) minus (d):
	 	$	 	 	 
	 	 	 	 	 	 	
	 	 

	 	 	 	Required by the Agreement:
	 
	 	 	 	The Parent shall at all times maintain an Adjusted Net Worth of not
less than the Minimum Net Worth.
	 
	 	2.6	 	Insurance Business (Section 5.11 of the Agreement).

	 	 	 	 	 	 	 	 	 
	 	 	 	 	
The maximum amount payable by all Insurance Companies
under Insurance Contracts or Reinsurance Contracts, as of the
Rolling Period ending on      , 200     , is:
	 	$	 	 
	 	 	 	 	 	 	
	 	 

	 	 	 	Required by the Agreement:
	 
	 	 	 	The Borrower will not permit the maximum amount payable by all
Insurance Companies under Insurance Contracts or Reinsurance
Contracts, as of the last day of each Fiscal Quarter, to be greater
than $10,000,000.

	3.	 	Other Covenants. Borrower hereby certifies to the Administrative Agent
and the Lenders, effective as of the Rolling Period ending      ,
200     , that the following amounts and calculations made pursuant to the
Agreement are true and correct:

	 	3.1	 	Investments and other Property (Section 6.06 of the Agreement)
	 
	 	 	 	Required by the Agreement:
	 
	 	 	 	Neither the Parent, the Borrower, nor any of their respective
Subsidiaries, shall acquire by purchase or otherwise any Investments
or other Property, except as provided in Section 6.06 of the
Agreement.

     Attach schedule for any transaction or Investment not in compliance with Section 6.06.

	 	3.2	 	Indebtedness (Section 6.02 of the Agreement)
	 
	 	 	 	Required by the Agreement:

 

 

	 	 	 	The Borrower, the Parent and their respective Subsidiaries will not
incur or permit to exist any Indebtedness other than as provided in
Section 6.02 of the Agreement.

          Attach schedule for any Indebtedness not in compliance with Section 6.02.

	4.	 	RECONCILIATION TO PUBLISHED FINANCIAL STATEMENTS

 

 

     EXECUTED as of the date first referenced above.

	 	 	 	 	 	 	 
	 	 	BORROWER:
	 	 	 	 	 	 	 
	 	 	MERISTAR H & R OPERATING COMPANY, L.P.
	 	 	 	 	 	 	 
	 	 	By:	 	Interstate Hotels & Resorts, Inc. (fka

MeriStar Hotels & Resorts, Inc.), its

general partner
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	

	 	 	 	 	Name:
	 	

	 	 	 	 	Title:
	 	

 

 

SCHEDULE 1.01(A)

Commitments

	 	 	 	 	 
	LENDER	 	TOTAL COMMITMENT
	
	 	

	Lehman Brothers Inc.
	 	$	40,000,000.00	 

 

 

SCHEDULE 1.01(B)

Approved Inter-Company Indebtedness

IHC Holdings, Inc. loans (unsecured inter-company lending arrangements):

		
	 	     Loan Agreement, dated as of September 10, 1999 (the “IHC Loan
Agreement”), among IHC Holdings, Inc., as lender, Interstate Hotels
Corporation, Interstate Hotels Company, Crossroads Hospitality
Management Company and certain other designated subsidiaries, as
borrowers. Currently the borrowers (including the other designated
borrowers) are:

	 	•	 	Interstate Hotels Corporation (no amounts outstanding);
	 
	 	•	 	Interstate Hotels Company (no amounts outstanding);
	 
	 	•	 	Crossroads Hospitality Management Company (no amounts
outstanding);

	•	 	Interstate Property Corporation ($375,000 principal amount
outstanding as of 3/28/01);
	 
	•	 	Interstate Partner Corporation ($12,000,000 principal amount
outstanding as of 3/28/01);
	 
	•	 	Interstate Pittsburgh Hotel Holdings, LLC ($5,700,000
principal amount outstanding as of 3/28/01).

 

 

SCHEDULE 1.01(C)

Non-Pledged Ownership Interests

	 	 	 	 	 	 	 	 	 
	 	 	 	 	% Ownership/	 	 	 	 
	Owner of Interest	 	Entity Owned	 	Amount	 	Hotel	 	Comments
	
	 	
	 	
	 	
	 	

	MeriStar H & R Operating
Company, L.P.	 	
MIP Lessee, LP
	 	9.5% (Limited)
	 	See Note 1
	 	Partnership
Agreement restricts pledge of partnership interest.
	 	 	 	 	 	 	 	 	 
	MeriStar H & R Operating
Company, L.P.	 	
IP GP, Inc.
	 	100%
	 	See Note 1
	 	Amended & Restated
Certificate of
Incorporation
prohibits pledge
	 	 	 	 	 	 	 	 	 
	MeriStar H & R Operating
Company, L.P.	 	
MIP GP, LLC
	 	99%
	 	See Note 1
	 	Operating Agreement
prohibits pledging
of membership
interest except to
lender is making a
loan secured in
whole or in part by
a mortgage/deed of
trust on a
property.
	 	 	 	 	 	 	 	 	 
	MIP GP, Inc.	 	
MIP GP, LLC
	 	1%
	 	See Note 1
	 	Operating Agreement
prohibits pledging
of membership
interest except to
lender is making a
loan secured in
whole or in part by
a mortgage/deed of
trust on a
property.
	 	 	 	 	 	 	 	 	 
	MIP GP, LLC	 	
MIP Lessee, LP
	 	0.5% (General)
	 	See Note 1
	 	Partnership
Agreement restricts
pledge of
partnership
interest.
	 	 	 	 	 	 	 	 	 
	CapStar BK Company,
L.L.C.	 	
BoyStar Ventures,
L.P.
	 	9% (Subordinated)
	 	Holiday Inn
Minneapolis West -
St.
Louis Park, MN
	 	Partnership
Agreement restricts
transfer of
partnership
interest.
	 	 	 	 	 	 	 	 	 
	MeriStar Management
Company, L.L.C.	 	
S.D. Bridgeworks, LLC
	 	10%
	 	Hilton Garden Inn -

San

Diego, CA
	 	Operating Agreement
makes transfer of
any member’s
interest subject to
provisions of
entity’s loan
documents with
entity’s lender;
Loan Agreement
requires lender’s
prior consent to
any pledge of
member’s interest
in entity
	 	 	 	 	 	 	 	 	 
	MeriStar Laundry, LLC	 	
Anchorage Linen

Service, a Joint

Venture
	 	35%
	 	Hotel Laundry

Business -
Anchorage, AK
	 	Any transfer of
interest in joint
venture requires
the consent of the
other joint
venturer.

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	% Ownership/	 	 	 	 
	Owner of Interest	 	Entity Owned	 	Amount	 	Hotel	 	Comments
	
	 	
	 	
	 	
	 	

	 	 	 	 	 	 	 	 	Partnership

Agreement requires:
	MeriStar Preston Center,
L.L.C.	 	
Park Cities Hotel, LP
	 	$500,000 Preferred

Interest
	 	Hilton Garden Inn -

Dallas,

TX
	 	(1) owner of
MeriStar’s limited
partnership
interest to be an
affiliate of the
Management Company
or any permitted
assignee of the
Management Company
under the MeriStar
Management
Agreement, and (2)
any pledge
agreement must
provide that if
pledging partner
defaults under
pledge agreement,
remaining partners
are provided notice
and opportunity to
purchase, without
recourse, pledging
partner’s loan from
the pledging
partner’s lender at
a cash price equal
to the outstanding
principal amount,
all unpaid interest
accrued and any
other sums due
thereon.
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	MeriStar Management
Company, L.L.C.	 	
Orchard Park
Associates, L.P.
	 	$150,000
	 	Comfort Suites

Norwich,

CT
	 	Loan Documents
	 	 	 	 	 	 	 	 	 
	Interstate/Dallas
Partnership, L.P.	 	
FCH/IHC Hotels, L.P.
	 	49.5% LP
	 	See Note 2 below
	 	Partnership
Agreement restricts
pledge of
partnership
interest.
	 	 	 	 	 	 	 	 	 
	 	 	
FCH/IHC Leasing, L.P.
	 	49.5% LP
	 	See Note 3 below
	 	Partnership
Agreement restricts
pledge of
partnership
interest.
	 	 	 	 	 	 	 	 	 
	Interstate/Dallas GP, LLC	 	
FCH/IHC Hotels, L.P.
	 	0.5% GP
	 	See Note 2 below
	 	Partnership
Agreement restricts
pledge of
partnership
interest.
	 	 	 	 	 	 	 	 	 
	 	 	
FCH/IHC Leasing, L.P.
	 	0.5% GP
	 	See Note 3 below
	 	Partnership
Agreement restricts
pledge of
partnership
interest.
	 	 	 	 	 	 	 	 	 
	Interstate Property
Partnership, L.P.	 	
Interconn Ponte
Vedra Company,
L.L.C.
	 	10% LP
	 	Marriott at
Sawgrass

Ponte Vedra, FL

	 	Operating Agreement
restricts
disposition of
membership
interest.
	 	 	 	 	 	 	 	 	 
	Interstate Houston
Partner, L.P.	 	
MRI Houston
Hospitality, L.P.
	 	25% LP
	 	Residence Inn by

Marriott

Houston

Astrodome/Medical

Center

Houston, TX
	 	Partnership
Agreement restricts
pledge of
partnership
interest.
	 	 	 	 	 	 	 	 	 
	Interstate Investment

Corporation	 	
CGLH-IHC Fund I, L.P.
	 	.5% GP
	 	Lehman Investment

Fund
	 	Partnership
Agreement restricts
pledge of
partnership
interest.
	 	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	% Ownership/	 	 	 	 
	Owner of Interest	 	Entity Owned	 	Amount	 	Hotel	 	Comments
	
	 	
	 	
	 	
	 	

	Interstate Property
Partnership, L.P.	 	
CGLH-IHC Fund I, L.P.
	 	36.875% LP
	 	Lehman Investment

Fund
	 	Partnership
Agreement restricts
pledge of
partnership
interest.
	 	 	 	 	 	 	 	 	 
	Interstate Manchester
Company, L.L.C.	 	
CNL-IHC Partners,
L.P.
	 	15% LP
	 	1) Courtyard by

Marriott

Hartford/Manchester

Manchester, CT 

2) Residence Inn

by Marriott

Hartford/Manchester

Manchester, CT
	 	Partnership
Agreement restricts
pledge of
partnership
interest.
	 	 	 	 	 	 	 	 	 
	[Interstate Hotels &
Resorts, Inc.]	 	
IHC II, LLC
	 	99.99%
	 	1) Harrisburg
Marriott
Harrisburg, PA

2)
Philadelphia

Marriott West —

Philadelphia, PA

3)
Indian River

Plantation Marriott —

Stuart, FL

4) Houston
Marriott

Greenspoint —

Houston, TX

5)
Atlanta Marriott

North Central —

Atlanta, GA
	 	Operating Agreement
prohibits pledging
of membership
interest.

Notes:

	1.	 	MIP Lessee, LP is the lessee of the following hotel properties:

Sheraton Anchorage Hotel — Anchorage, AK

Radisson Hotel San Diego — San Diego, CA

Newark-Fremont Hilton Hotel — Newark, CA

Sheraton City Centre Hotel — Iowa City, IA

Radisson Resort & Spa — Scottsdale, AZ

Trumbull Marriott Hotel — Trumbull, CT

Hilton Minneapolis-St. Paul Airport Hotel — Bloomington, MN

Milwaukee Wyndham Hotel — Milwaukee, WI

Embassy Suites Philadelphia Airport — Philadelphia, PA

Embassy Suites Walnut Creek — Walnut Creek, CA
	 
	2.	 	FCH/IHC Hotels, LP owns interests in the entities that own the following hotel properties:

Fairfield Inn Scottsdale Downtown — Scottsdale, AZ

Fairfield Inn Atlanta Downtown — Atlanta, GA

Courtyard by Marriott Atlanta Downtown — Atlanta, GA

Fairfield Inn Dallas/Stemmons Freeway — Dallas, TX

Courtyard by Marriott Houston/Galleria — Houston, TX

Fairfield Inn Houston/Galleria — Houston, TX

Fairfield Inn Houston/I-10 East — Houston, TX

Hampton Inn Houston/I-10 East — Houston, TX
	 
	3.	 	FCH/IHC Leasing, LP owns interests in the entities that lease the following hotel properties:

Fairfield Inn Scottsdale Downtown — Scottsdale, AZ

Fairfield Inn Atlanta Downtown — Atlanta, GA

Courtyard by Marriott Atlanta Downtown — Atlanta, GA

Fairfield Inn Dallas/Stemmons Freeway — Dallas, TX

Courtyard by Marriott Houston/Galleria — Houston, TX

Fairfield Inn Houston/Galleria — Houston, TX

 

 

	 	 	Fairfield Inn Houston/I-10 East — Houston, TX

Hampton Inn Houston/I-10 East — Houston, TX

 

 

SCHEDULE 1.01(D)

Existing Owned Hospitality Property Investments

	 	 	 	 	 	 	 
	Owner of Interest	 	Entity Owned	 	% Ownership/
Amount	 	Hotel
	
	 	
	 	
	 	

	Interstate Property Partnership, L.P.	 	
Interstate Pittsburgh Hotel

Holdings, L.L.C.
	 	100%	 	Residence Inn by Marriott

Pittsburgh Airport

North Fayette, PA
	 	 	 	 	 	 	 
	Interstate Houston Partner, L.P.	 	
MRI Houston Hospitality,

L.P.
	 	25% LP	 	Residence Inn by
Marriott

Houston Astrodome/
Medical
Center

Houston, TX
	 	 	 	 	 	 	 
	Interstate Dallas GP, LLC	 	
FCH/IHC Hotels, L.P.
	 	0.5% GP	 	See Note 1
	 	 	 	 	 	 	 
	 	 	
FCH/IHC Leasing, L.P.
	 	0.5% GP	 	See Note 1
	 	 	 	 	 	 	 
	Interstate/Dallas Partnership, L.P.	 	
FCH/IHC Hotels, L.P.
	 	49.5% LP	 	See Note 2
	 	 	 	 	 	 	 
	 	 	
FCH/IHC Leasing, L.P.
	 	49.5% LP	 	See Note 2

Notes:

	1.	 	Subsidiaries of FCH/IHC Hotels, L.P. own the following hotel properties:

Fairfield Inn Scottsdale Downtown — Scottsdale, AZ

Fairfield Inn Atlanta Downtown — Atlanta, GA

Courtyard by Marriott Atlanta Downtown — Atlanta, GA

Fairfield Inn Dallas/Stemmons Freeway — Dallas, TX

Courtyard by Marriott Houston/Galleria — Houston, TX

Fairfield Inn Houston/Galleria — Houston, TX

Fairfield Inn Houston/I-10 East — Houston, TX

Hampton Inn Houston/I-10 East — Houston, TX
	 
	2.	 	Subsidiaries of FCH/IHC Leasing, L.P. lease the following hotel properties:

Fairfield Inn Scottsdale Downtown — Scottsdale, AZ

Fairfield Inn Atlanta Downtown — Atlanta, GA

Courtyard by Marriott Atlanta Downtown — Atlanta, GA

Fairfield Inn Dallas/Stemmons Freeway — Dallas, TX

Courtyard by Marriott Houston/Galleria — Houston, TX

Fairfield Inn Houston/Galleria — Houston, TX

Fairfield Inn Houston/I-10 East — Houston, TX

Hampton Inn Houston/I-10 East — Houston, TX

 

 

SCHEDULE 1.01(E)

Existing Management Agreements

	1.	 	Master Fee Agreement, dated as of January 1, 2001, between MeriStar Hotel
Lessee, Inc., MeriStar SPE Leasing Corp., MeriStar SPE California Corp.,
MeriStar SPE Colorado Corp., MeriStar SPE North Carolina Corp., MeriStar
SPE Wisconsin Corp. and MeriStar Management Company, L.L.C. (“MMC”).
	 
	2.	 	Hotel Management Agreement, dated as of October 14, 1999, between MIP
Lessee, LP, and MMC, with respect to the Sheraton Anchorage Hotel, located
at 401 East 6th Avenue, Anchorage, AK.
	 
	3.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone Hospitality Management LLC
(“Flagstone”), with respect to Sheraton Hotel – Birmingham South, located
at 8 Perimeter Park Drive, Birmingham, AL.
	 
	4.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Sheraton Mesa Hotel,
located at 200 N. Centennial Way, Mesa, AZ, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	5.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., as Owner, and MMC, as Operator, with respect to the
Crowne Plaza Phoenix, located at 2532 W. Peoria Avenue, Phoenix, AZ, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.
	 
	6.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., as Owner, and MMC, as Operator, with respect to the
Embassy Suites International Airport, located at 7051 S. Tucson Blvd.,
Tucson, AZ, as amended by that certain Amendment to Management Agreement,
dated as of January 1, 2002.
	 
	7.	 	Hotel Management Agreement, dated as of November 30, 1999, between Triple
Tree Corporation and MMC, with respect to Radisson Poco Diablo Resort,
located at 1752 South Highway 179, Sedona, AZ.
	 
	8.	 	Hotel Management Agreement, dated December 14, 1999, between Champion
Investment Corporation and MMC, with respect to Hilton East Tucson,
located at 7600 East Broadway, Tucson, AZ.
	 
	9.	 	Hotel Management Agreement, dated as of March 31, 1999, between MIP
Lessee, LP and MMC, with respect to Radisson Resort & Spa Scottsdale,
located at 7171 North Scottsdale Road, Scottsdale, AZ.
	 
	10.	 	Hotel Management Agreement, dated as of December 24, 1999, between
Massachusetts Mutual Like Insurance Company and MMC, with respect to
Hilton Phoenix Airport, located at 2435 South 47th Street, Phoenix, AZ.

 

 

	11.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Chandler,
located at 7333 West Detroit Street, Chandler, AZ.
	 
	12.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Homewood Suites
Chandler, located at 7373 West Detroit Street, Chandler, AZ.
	 
	13.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Courtyard by Marriott
Century City, located at 10320 W. Olympic Blvd., Century City, CA, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.
	 
	14.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE California Corp., and MMC, with respect to the Courtyard by Marriott
Marina del Rey, located at 13480 Maxella Avenue, Marina del Rey, CA.
	 
	15.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Hilton Port of Los
Angeles/San Pedro, located at 2800 Via Cabrillo Marina, San Pedro, CA, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.
	 
	16.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE California Corp., and MMC, with respect to the Hilton Irvine/Orange
County Airport, located at 18800 MacArthur Blvd., Irvine, CA.
	 
	17.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE California Corp., and MMC, with respect to the Hilton Sacramento Arden
West, located at 2200 Harvard Street, Sacramento, CA.
	 
	18.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Los Angeles Marriott
Downtown, located at 333. S. Figueroa Street, Los Angeles, CA, as amended
by that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	19.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Doral Palm Springs Resort,
located at 67-967 Vista Chino, Cathedral City, CA, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	20.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Wyndham Hotel San Jose,
located at 1350 North 1st Street, San Jose, CA, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	21.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE California Corp., and MMC, with respect to the Crowne Plaza San Jose,
located at 282 Almaden Blvd., San Jose, CA.

 

 

	22.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE California Corp., and MMC, with respect to the Sheraton Fisherman’s
Wharf Hotel, located at 2500 Mason Street, San Francisco, CA.
	 
	23.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Hilton Monterey, located
at 1000 Aguajito Road, Monterey, CA, as amended by that certain Amendment
to Management Agreement, dated as of January 1, 2002.
	 
	24.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Santa Barbara Inn, located
at 901 East Cabrillo Blvd., Santa Barbara, CA, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	25.	 	Hotel Management Agreement, dated as of June 10, 1998, between SD
Bridgeworks, LLC and MMC, with respect to Hilton San Diego – Gaslamp
Quarter, located at 401 K Street, San Diego, CA, as amended by that
certain First Amendment to Hotel Management Agreement, dated as of July
20, 1998.
	 
	26.	 	Hotel Management Agreement, dated      , between      and MMC, with
respect to Quality Suites John Wayne Airport Santa Ana, located at 2701
Hotel Terrace Drive, Santa Ana, CA.
	 
	27.	 	Hotel Management Agreement, dated December 27, 1993, between Dr. Michael
Perley and MMC, with respect to Residence Inn Orange/Disneyland, located
at 3101 West Chapman Avenue, Orange, CA.
	 
	28.	 	Hotel Management Agreement, dated as of March 31, 1999, between MIP
Lessee, LP and MMC, with respect to Radisson Hotel San Diego, located at
1433 Camino Del Rio South, San Diego, CA.
	 
	29.	 	Hotel Management Agreement, dated as of December 1, 1999, between MIP
Lessee, LP and MMC with respect to Hilton Newark/Fremont, located at 3990
Balentine Drive, Newark, CA.
	 
	30.	 	Hotel Management Agreement, dated as of April 27, 2000, between MIP
Lessee, LP and MMC with respect to Embassy Suites Walnut Creek, located at
1345 Treat Boulevard, Walnut Creek, CA.
	 
	31.	 	Hotel Management Agreement, dated March 16, 1999, between Wave Crest
Resorts, LLC and MMC, with respect to Hilton Garden Inn Carlsbad Beach,
6450 Carlsbad Boulevard, Carlsbad, CA.
	 
	32.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Sheraton Hotel
Bakersfield, located at 5101 California Avenue, Bakersfield, CA.

 

 

	33.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Sheraton San
Jose/Milpitas, located at 1801 Barber Lane, Milpitas, CA.
	 
	34.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Beverly Heritage
Hotel, located at 1820 Barber Lane, Milpitas, CA.
	 
	35.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Four Points by
Sheraton Pleasanton, located at 5115 Hopyard Road, Pleasanton, CA.
	 
	36.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Residence Inn
Sacramento, located at 1530 Howe Avenue, Sacramento, CA.
	 
	37.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hilton Fisherman’s
Wharf, located at 2620 Jones Street, San Francisco, CA.
	 
	38.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Sheraton Hotel
Sunnyvale, located at 1100 North Mathilda Avenue, Sunnyvale, CA.
	 
	39.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Residence Inn
Torrance, located at 3701 Torrance Blvd., Torrance, CA.
	 
	40.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Doubletree Hotel Del
Mar, located at 11915 El Camino Real, San Diego, CA.
	 
	41.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Holiday Inn Garden of the
Gods, located at 505 Popes Bluff Trail, Colorado Springs, CO, as amended
by that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	42.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Colorado Corp., and MMC, with respect to the Sheraton Colorado Springs
Hotel, located at 2886 South Circle Drive, Colorado Springs, CO.
	 
	43.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Colorado Corp., and MMC, with respect to the Embassy Suites Denver
South, located at 10250 E. Costilla Avenue, Englewood, CO.
	 
	44.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn
Northwest/I-70 Denver, located at 4685 Quebec Street, Denver, CO.

 

 

	45.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Southwest
Denver, located at 3605 South Wadsworth Blvd., Lakewood, CO.
	 
	46.	 	Hotel Management Agreement, dated October 23, 1996, between Orchard Park
Associates, L.P. and MMC (as successor-in-interest to CapStar Management
Company, L.P.), with respect to Comfort Suites Norwich, located at 275
Otrobando Avneue, Norwich, CT.
	 
	47.	 	Hotel Management Agreement, dated as of May 26, 1999, between MIP Lessee,
LP and MMC, with respect to Marriot Trumbull, located at 180 Hawley Lane,
Trumbull, CT.
	 
	48.	 	Hotel Management Agreement, dated as of March      , 2000, between Campus
Associates Limited Partnership and MMC, with respect to Nathan Hale Inn &
Conference Center at the University of Connecticut, located at P.O. Box
364, Storrs, CT.
	 
	49.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Doubletree Hotel Bradley
International Airport, located at 16 Ella Grasso Turnpike, Windsor Locks,
CT, as amended by that certain Amendment to Management Agreement, dated as
of January 1, 2002.
	 
	50.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Hilton Hartford, located
at 315 Trumbull Street, Hartford, CT, as amended by that certain Amendment
to Management Agreement, dated as of January 1, 2002.
	 
	51.	 	Hotel Management Agreement, dated as of May 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Ramada Plaza Hotel
Shelton, located at 780 Bridgeport Avenue, Shelton, CT, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	52.	 	Hotel Management Agreement, dated as of December 1, 2001, between
MeriStar Hotel Lessee, Inc. and MMC, with respect to Ramada Plaza Meriden,
located at 275 Research Parkway, Meriden, CT, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	53.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Residence Inn
Wilmington, located at 240 Chapman Road, Newark, DE.
	 
	54.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Georgetown Inn, located at
1310 Wisconsin Ave, N.W., Washington, DC, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	55.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Hilton Washington Embassy
Row, located at

 

 

	 	 	2015 Massachusetts Avenue, N.W., Washington, DC, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	56.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to The Latham Hotel Georgetown,
located at 3000 M Street, N.W., Washington, DC, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	57.	 	Hotel Management Agreement, dated January 1, 1994, between Newco
Management Company and MMC, with respect to Best Western New Hampshire
Suites, located at 1121 New Hampshire Avenue, NW, Washington, DC.
	 
	58.	 	Hotel Management Agreement, dated June 30, 1997, between Massachusetts
Mutual Life Insurance Company and MMC, with respect to Crowne Plaza Hotel
Washington, located at 1001 14th Street, NW, Washington, DC.
	 
	59.	 	Hotel Management Agreement, dated as of December 23, 1998, between
Franklin Fourteen, L.L.C. and MMC, with respect to Hilton Garden Inn
Washington, located at 815 14th Street, NW (Franklin Square), Washington,
DC.
	 
	60.	 	Hotel Management Agreement, dated as of April 24, 2001, between
Whitewood, LLC and MMC, with respect to The Churchill Hotel, located at
1914 Connecticut Avenue, N.W., Washington, DC.
	 
	61.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Sheraton Safari Hotel,
located at 12205 Apopka Vineland Road, Lake Buena Vista, FL, as amended by
that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	62.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Courtyard by Marriott Walt
Disney World Village, located at 1805 Hotel Plaza Blvd., Lake Buena Vista,
FL, as amended by that certain Amendment to Management Agreement, dated as
of January 1, 2002.
	 
	63.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Radisson Universal Hotel,
located at 5780 Major Blvd., Orlando, FL, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	64.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Hilton Cocoa Beach,
located at 1550 N. Atlantic Avenue, Cocoa Beach, FL, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	65.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Hilton Clearwater, located
at 400 Mandalay Avenue, Clearwater, FL, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.

 

 

	66.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Doubletree Hotel
Westshore, located at 4500 W. Cypress St., Tampa, FL, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	67.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Holiday Inn Ft.
Lauderdale, located at 999 Ft. Lauderdale Beach Blvd., Ft. Lauderdale, FL,
as amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.
	 
	68.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Holiday Inn Madeira Beach,
located at 15208 Gulf Blvd., Madeira Beach, FL, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	69.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Ramada Inn Clearwater,
located at 521 S. Gulfview Blvd., Clearwater, FL, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	70.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Howard Johnson Resort Key
Largo, located at 102400 Overseas Highway, Key Largo, FL, as amended by
that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	71.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to The Westin Beach Resort Key
Largo, located at 97000 S. Overseas Highway, Key Largo, FL, as amended by
that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	72.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., as Owner, and MMC, as Operator, with respect to the
South Seas Resort, located at 5400 Plantation Road, Captiva, FL, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.
	 
	73.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., as Owner, and MMC, as Operator, with respect to the
Radisson Suites Beach Resort, located at 600 South Collier Blvd., Marco
Island, FL, as amended by that certain Amendment to Management Agreement,
dated as of January 1, 2002.
	 
	74.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Safety Harbor Resort &
Spa, located at 105 North Bayshore Drive, Safety Harbor, FL, as amended by
that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	75.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., as Owner, and MMC, as Operator, with respect to the
Sanibel Inn, located at

 

 

	 	 	937 East Gulf Drive, Sanibel Island, FL, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	76.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to The Dunes Golf & Tennis Club,
located at 949 Sandcastle Road, Sanibel Island, FL, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	77.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Seaside Inn, located at
541 East Gulf Drive, Sanibel Island, FL, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	78.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Song of the Sea, located
at 863 East Gulf Drive, Sanibel Island, FL, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	79.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Sundial Beach Resort,
located at 1451 Middle Gulf Drive, Sanibel Island, FL, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	80.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Best Western Sanibel
Island, located at 3287 West Gulf Drive, Sanibel Island, FL, as amended by
that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	81.	 	Hotel Management Agreement, dated January      , 1999, between AGL
Investments No. 2 Limited Partnership and MMC, with respect to Doubletree
Hotel Palm Beach Gardens, located at 4431 PGA Boulevard, Palm Beach
Gardens, FL.
	 
	82.	 	Hotel Management Agreement, dated as of November 30, 2001, between
BeachBoy, LLC and MMC, with respect to Best Western Pink Shell Resort,
located at 275 Estero Boulevard, Ft. Myers Beach, FL.
	 
	83.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Ft.
Lauderdale, located at 720 E. Cypress Creek, Ft. Lauderdale, FL.
	 
	84.	 	Hotel Management Agreement, dated as of      , 2001, by and between RFS
Leasing II, Inc. and Flagstone, with respect to Residence Inn Orlando,
located at 7975 Canada Avenue, Orlando, FL.
	 
	85.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Doubletree Guest Suites
Atlanta, located at 2780 Windy Ridge Parkway, Atlanta, GA, as amended by
that certain Amendment to Management Agreement, dated as of January 1,
2002.

 

 

	86.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to The Westin Atlanta Airport,
located at 4736 Best Road, Atlanta, GA, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	87.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Wyndham Garden Marietta,
located at 1775 Parkway Place, N.W., Marietta, GA, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	88.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Jekyll Inn, located at 975
North Beachview Drive, Jekyll Island, GA, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	89.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Comfort Inn Marietta
Atlanta, located at 2100 Northwest Parkway, Marietta, GA.
	 
	90.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Residence Inn
Perimeter West Atlanta, located at 6096 Barfield Road, Atlanta, GA.
	 
	91.	 	Hotel Management Agreement, dated as of      , between Broadmoor Joint
Venture and MMC (as successor to American General Hospitality, Inc.), with
respect to Courtyard by Marriott Boise, located at 222 South Broadway
Avenue, Boise, ID.
	 
	92.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Holiday Inn Chicago O’Hare
International, located at 5440 North River Road, Rosemont, IL, as amended
by that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	93.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Radisson Hotel Arlington
Heights, located at 75 West Algonquin Road, Arlington Heights, IL, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.
	 
	94.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Radisson Hotel & Suites
Chicago Downtown, located at 160 East Huron Street, Chicago, IL, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.
	 
	95.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Radisson Hotel Schaumburg,
located at 1725 East Algonquin Road, Schaumburg, IL, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.

 

 

	96.	 	Hotel Management Agreement, dated March 10, 2000, between AGL Investments
No. 17 Limited Partnership and MMC, with respect to Doral Chicago (f/k/a
Nordic Hills Resort & Conference Center), located at 1401 Nordic Road,
Itasca, IL.
	 
	97.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn Express
Arlington Heights, located at 2120 South Arlington Heights Road, Arlington
Heights, IL.
	 
	98.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn Crystal
Lake, located at 800 South Route 31, Crystal Lake, IL.
	 
	99.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn Express
Downers Grove, located at 3031 Finley Road, Downers Grove, IL.
	 
	100.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Doubletree Guest Suites,
located at 11355 North Meridian, Carmel, IN, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	101.	 	Hotel Management Agreement, dated as of      , 2000, between
Massachusetts Mutual Life Insurance Company and MMC, with respect to Omni
Hotel Indianapolis North, located at 8181 North Shadeland Avenue,
Indianapolis, IN.
	 
	102.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Airport,
located at 5601 Fortune Circle West, Indianapolis, IN.
	 
	103.	 	Hotel Management Agreement, dated as of March 31, 1999, between MIP
Lessee, LP and MMC, with respect to Sheraton Hotel Iowa City, located at
210 South Dubuque Street, Iowa City, IA.
	 
	104.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Seelbach Hilton
Louisville, located at 500 Fourth Avenue, Louisville, KY, as amended by
that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	105.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Leasing Corp. and MMC, with respect to the Radisson Plaza Hotel,
located at 369 West Vine Street, Lexington, KY.
	 
	106.	 	Hotel Management Agreement, dated as of January 10, 1996, between DJONT
Operations, L.L.C. and MMC (as successor to American General Hospitality,
Inc.), with respect to Hilton Suites of Lexington Green, located at 245
Lexington Green Circle, Lexington, KY.

 

 

	107.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn Southwest
Louisville, located at 4110 Dixie Highway, Louisville, KY.
	 
	108.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Hotel Maison dé Villé,
located at 727 Rue Toulouse, New Orleans, LA, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	109.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Leasing Corp. and MMC, with respect to the Holiday Inn Select New
Orleans Airport, located at 2929 Williams Blvd., New Orleans, LA.
	 
	110.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Leasing Corp. and MMC, with respect to the Hilton Lafayette & Towers,
located at 1521 West Pinhook Road, Lafayette, LA.
	 
	111.	 	Hotel Management Agreement, dated as of      , between      and MMC,
with respect to Quality Inn Bossier City, located at 4300 Industrial
Drive, Bossier City, LA.
	 
	112.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn Central
Lafayette, located at 2032 North Evangeline Thruway, Lafayette, LA.
	 
	113.	 	Management Agreement, dated as of December 16, 2002, between LHO New
Orleans One Lessee, LLC and MeriStar Management Company, L.L.C., with
respect to the New Orleans Grande Hotel, located at 614 Canal Street, New
Orleans, LA.
	 
	114.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to Radisson Hotel Annapolis,
located at 210 Holiday Court, Annapolis, MD, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	115.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to Radisson Hotel Cross Keys,
located at 5100 Falls Road, Baltimore, MD, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	116.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., as Owner, and MMC, as Operator, with respect to
Sheraton Columbia Hotel, located at 10207 Wincopin Circle, Columbia, MD,
as amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.
	 
	117.	 	Hotel Management Agreement, dated as of March 21, 1995, between
Congressional Plaza Hotel, Inc. and MMC, with respect to Ramada Inn
Rockville-Congressional Park, located at 1775 Rockville Pike, Rockville,
MD.

 

 

	118.	 	Hotel Management Agreement, dated as of June 1, 2000, between Laurel
Suite Limited Partnership and MMC, with respect to Comfort Suites Laurel
Lakes, located at 14402 Laurel Lakes Place, Laurel, MD.
	 
	119.	 	Hotel Management Agreement, dated as of October 29, 1997, between BWI
Hotel Associated Limited Partnership and MMC (successor-in-interest to
CapStar Management Company, L.P.), as amended by that certain Amendment to
Hotel Management Agreement, dated as of      , 2000, with respect to
Microtel Inn & Suites at BWI Airport, located at 1170 Winterson Road,
Linthicum, MD.
	 
	120.	 	Country Club Management Agreement, dated as of March 19, 2001, between
Swan Point Yacht & Country Club, Inc. and MMC d/b/a Doral® Golf, with
respect to Swan Point Yacht and Country Club, located at 11550 Swan Point
Boulevard, Issue, MD.
	 
	121.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Hilton Metro Airport &
Suites, located at 8600 Wickham Road, Romulus, MI, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	122.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Leasing Corp. and MMC, with respect to the Hilton Grand Rapids
Airport, located at 4747 28th Street, S.E., Grand Rapids, MI.
	 
	123.	 	Hotel Management Agreement, dated as of October 31, 2000, between
Corporate Property Associates 5 – A California Limited Partnership
(CPA:5), Corporate Property Associates 6 – A California Limited
Partnership (CPA:6), jointly and severally, and MMC, with respect to
Holiday Inn Alpena, located at 1000 U.S. 23 North, Alpena, MI.
	 
	124.	 	Hotel Management Agreement, dated as of October 31, 2000, between
Corporate Property Associates 5 – A California Limited Partnership
(CPA:5), Corporate Property Associates 6 – A California Limited
Partnership (CPA:6), jointly and severally, and MMC, with respect to
Holiday Inn Petoskey, located at 1444 U.S. 131 South, Petoskey, MI.
	 
	125.	 	Hotel Management Agreement, dated as of October 31, 2000, between between
Corporate Property Associates 6 – A California Limited Partnership
(CPA:6), Corporate Property Associates 7 – A California Limited
Partnership (CPA:7), jointly and severally, and MMC, with respect to
Holiday Inn Detroit West Livonia, located at 17123 Laurel Park Drive
North, Livonia, MI.
	 
	126.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Residence Inn Ann
Arbor, located at 800 Victors Way, Ann Arbor, MI.
	 
	127.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Courtyard by Marriott
Flint, located at 5205 Gateway Center, Flint, MI.

 

 

	128.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn Gateway
Center, located at 5353 Gateway Center, Flint, MI.
	 
	129.	 	Hotel Management Agreement, dated as of March 31, 1999, between MIP
Lessee, LP and MMC, with respect to Hilton Minneapolis/St. Paul Airport,
located at 3800 East 80th Street, Bloomington, MN.
	 
	130.	 	Hotel Management Agreement, dated as of November 30, 2001, between
Minneapolis Leasing, L.L.C. and MMC, with respect to the Holiday Inn
Minneapolis West, located at 9970 Wayzata Blvd., St. Louis Park, MN.
	 
	131.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Airport,
located at 4201 West 80th Street, Bloomington, MN.
	 
	132.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn Express
Bloomington, located at 814 East 79th Street, Bloomington, MN.
	 
	133.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn
Minnetonka, located at 10420 Wayzata Blvd., Minnetonka, MN.
	 
	134.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn
Hattiesburg, located at 4301 Hardy Street, Hattiesburg, MS.
	 
	135.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc. and MMC, with respect to the Holiday Inn Sports
Complex, located at 4011 Blue Ridge Cut-off, Kansas City, MO, as amended
by that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	136.	 	Hotel Management Agreement, dated as of      , between CapStar Hallmark
Company, L.L.C. and MMC, with respect to Radisson Hotel & Suites Downtown,
located at 200 North 4th Street, St. Louis, MO.
	 
	137.	 	Hotel Management Agreement, dated as of November 30, 2001, between Boykin
Kansas City, L.L.C and MMC, with respect to Doubletree Hotel Kansas City,
located at 1301 Wyandotte Street, Kansas City, MO.
	 
	138.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Sheraton Hotel Clayton
Plaza, located at 7730 Bonhomme Avenue, Clayton, MO.
	 
	139.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Residence Inn Kansas
City, located at 2975 Main Street – Union Hill, Kansas City, MO.

 

 

	140.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Airport
I-80 Lincoln, located at 1301 West Bond Circle, Lincoln, NE.
	 
	141.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Westroads
Mall Omaha, located at 9720 West Dodge Road, Omaha, NE.
	 
	142.	 	Hotel Management Agreement, dated as of December 1, 2001, between
MeriStar Hotel Lessee, Inc. and MMC, with respect to St. Tropez Hotel,
located at 455 East Harmon Avenue, Las Vegas, NV, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
(Note: Scheduled to be terminated on or before January 15, 2003.)
	 
	143.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Courtyard by Marriott
Meadowlands, located at 455 Harmon Meadow Blvd., Secaucus, NJ, as amended
by that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	144.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to The Westin Morristown,
located at 2 Whippany Road, Morristown, NJ, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	145.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Doral Forrestal Hotel &
Conference Center, located at 100 College Road, Princeton, NJ, as amended
by that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	146.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Leasing Corp., and MMC, with respect to the Somerset Marriott Hotel,
located at 110 Davidson Avenue, Somerset, NJ.
	 
	147.	 	Hotel Management Agreement, dated as of May 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Sheraton Crossroads
Hotel, located at Crossroads Corporate Center, Mahwah, NJ, as amended by
that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	148.	 	Hotel Management Agreement, dated as of May 24, 2000, between Household
Commercial Financial Services, Inc. and MMC with respect to Comfort Inn
West Atlantic City, located at 7095 Black Horse Pike, West Atlantic City,
NJ.
	 
	149.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Leasing Corp., and MMC, with respect to the Doubletree Hotel
Albuquerque, located at 201 Marquette NW, Albuquerque, NM.
	 
	150.	 	Hotel Management Agreement, dated as of January 1, 2001, MeriStar Hotel
Lessee, Inc., and MMC, with respect to the Wyndham Hotel Albuquerque,
located at 2910 Yale Blvd.,

 

 

	 	 	S.E., Albuquerque, NM, as amended by that certain Amendment to Management
Agreement, dated as of January 1, 2002.
	 
	151.	 	Hotel Management Agreement, dated as of January 1, 2001, MeriStar Hotel
Lessee, Inc., and MMC, with respect to the Radisson Hotel Rochester
Airport, located at 175 Jefferson Road, Rochester, NY, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	152.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Residence Inn
Fishkill, located at 14 Schuyler Boulevard, Fishkill, NY.
	 
	153.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Courtyard by Marriott
Durham, located at 1815 Front Street, Durham, NC, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	154.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Hilton Durham, located at
3800 Hillsborough Road, Durham, NC, as amended by that certain Amendment
to Management Agreement, dated as of January 1, 2002.
	 
	155.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE North Carolina Corp., and MMC, with respect to the Sheraton Airport
Plaza Hotel, located at 3315 I-85 Billy Graham Parkway, Charlotte, NC.
	 
	156.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn
Burlington, located at 2444 Maple Avenue, Burlington, NC.
	 
	157.	 	Hotel Management Agreement, dated as of January 1, 2001, MeriStar Hotel
Lessee, Inc., and MMC, with respect to the Hilton Toledo, located at 3100
Glendale Avenue, Toledo, OH, as amended by that certain Amendment to
Management Agreement, dated as of January 1, 2002.
	 
	158.	 	Hotel Management Agreement, dated as of January 1, 2001, MeriStar Hotel
Lessee, Inc., and MMC, with respect to the Radisson Hotel Cleveland
Southwest, located at 7230 Engle Road, Middleburg Heights, OH, as amended
by that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	159.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to The Westin Oklahoma City,
located at One North Broadway, Oklahoma City, OK, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	160.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Oklahoma
City Airport, located at 1905 South Meridian Avenue, Oklahoma City, OK.

 

 

	161.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Tulsa,
located at 3209 South 79th Avenue, Tulsa, OK.
	 
	162.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to Crowne Plaza Portland,
located at 14811 Kruse Oaks Blvd., Lake Oswego, OR, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	163.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Holiday Inn Select Bucks
County, located at 4700 Street Road, Trevose, PA, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	164.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Sheraton Great Valley
Hotel, located at 707 Lancaster Pike, Frazer, PA, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	165.	 	Hotel Management Agreement, effective date February 1, 1993, between HFC
Commercial Realty, Inc., Center Realty, Inc. and COM Realty, Inc., and
MMC, with respect to Sheraton Hotel Bucks County, located at 400 Oxford
Valley Road, Langhorne, PA.
	 
	166.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Leasing Corp., and MMC, with respect to the Embassy Suites Center
City, located at 1776 Ben Franklin Parkway, Philadelphia, PA.
	 
	167.	 	Hotel Management Agreement, dated as of June 27, 2000, between MIP
Lessee, LP and MMC, with respect to Embassy Suites Philadelphia
International Airport, located at 9000 Bartram Avenue, Philadelphia, PA.
	 
	168.	 	Hotel Management Agreement, dated as of      , 2000, between HJ &
VJ, LLC and MMC, with respect to Staybridge Suites Lehigh Valley Airport,
located at 1811 Airport Road, Allentown, PA.
	 
	169.	 	Hotel Management Agreement, dated as of      , 2001, between HJ &
VJ, LLC and MMC, with respect to Hilton Garden Inn Lehigh Valley Airport,
located at 1787 Airport Road, Allentown, PA.
	 
	170.	 	Hotel Management Agreement, dated as of      , 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to MainStay Suites
Pittsburgh, located at 1000 Park Lane Drive, Pittsburgh, PA.
	 
	171.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Residence Inn
Providence, located at 500 Kilvert Street, Warwick, RI.

 

 

	172.	 	Amended and Restated Hotel Management Agreement, dated as of December 2,
1996, between FMH, L.P. and MMC (successor-in-interest to CapStar
Management Company, L.P.) with respect to The Westin Francis Marion,
located at 387 King Street, Charleston, SC.
	 
	173.	 	Hotel Management Agreement, dated as of February 19, 1998, between Newco
Management Company, as agent for Whitney Properties, L.P., and MMC, with
respect to The Whitney Hotel, located at 700 Woodrow Street, Columbia, SC.
	 
	174.	 	Hotel Management Agreement, dated as of September 2, 1999, between
Poinsett Hotel Company, LLC and MMC, with respect to The Westin Poinsett,
located at 220 South Main Street, Greenville, SC.
	 
	175.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn Coliseum,
located at 630 Assembly Street, Columbia, SC.
	 
	176.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Comfort Inn Carowinds,
located at 3725 Avenue of the Carolinas, Ft. Mill, SC.
	 
	177.	 	Hotel Management Agreement, dated as of      , 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to MainStay Suites
Greenville, located at 2671 Dry Pocket Road, Greenville, SC.
	 
	178.	 	Hotel Management Agreement, dated as of February      , 2001, between West
End Hotel Partners, LLC and MMC, with respect to Stadium Club Marriott at
Vanderbilt University, located at 2525 West End, Nashville, TN.
	 
	179.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Walnut
Grove Memphis, located at 33 Humphrey Center Drive, Memphis, TN.
	 
	180.	 	Hotel Management Agreement, dated as of      , 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to MainStay Suites
Brentwood, located at 107 Brentwood Blvd., Brentwood, TN.
	 
	181.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Holiday Inn DFW Airport
West, located at 3005 Airport Freeway, Bedford, TX, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	182.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Holiday Inn Select DFW
Airport South, located at 4440 West Airport Freeway, Irving, TX, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.

 

 

	183.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Hilton Austin North &
Towers, located at 6000 Middle Fiskville Road, Austin, TX, as amended by
that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	184.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Leasing Corp., and MMC, with respect to the Hilton Houston Westchase &
Towers, located at 9999 Westheimer, Houston, TX.
	 
	185.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Hilton Midland & Towers,
located at 117 West Wall Avenue, Midland, TX, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	186.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Leasing Corp., and MMC, with respect to the Hilton Arlington, located
at 2401 East Lamar Blvd., Arlington, TX.
	 
	187.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Leasing Corp., and MMC, with respect to the Doubletree Hotel Austin,
located at 6505 I-35 North, Austin, TX.
	 
	188.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Sheraton Houston Hotel
Brookhollow, located at 3000 North Loop West, Houston, TX, as amended by
that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	189.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Sheraton Dallas Hotel
Brookhollow, located at 1241 West Mockingbird Lane, Dallas, TX, as amended
by that certain Amendment to Management Agreement, dated as of January 1,
2002
	 
	190.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Radisson Hotel Dallas,
located at 1893 West Mockingbird Lane, Dallas, TX, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	191.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Renaissance Hotel North
Dallas, located at 4099 Valley View Lane, Dallas, TX, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	192.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Leasing Corp., and MMC, with respect to the Houston Marriott Hotel
West Loop by the Galleria, located at 1750 West Loop South, Houston, TX.
	 
	193.	 	Management Agreement, dated as of March 29, 1995, between DJONT
Operations, L.L.C. and MMC (as successor to American General Hospitality,
Inc.), with respect to

 

 

	 	 	the Embassy Suites Hotel Love Field, located at 3880 West Northwest
Highway, Dallas, TX.
	 
	194.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn Express
I-35 Airport Austin, located at 7622 I-35 North, Austin, TX.
	 
	195.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Residence Inn River
Plaza, located at 1701 South University Drive, Ft. Worth, TX.
	 
	196.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to TownePlace Suites Ft.
Worth, located at 4200 International Plaza, Ft. Worth, TX.
	 
	197.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Hobby
Airport Houston, located at 8620 Airport Boulevard, Houston, TX.
	 
	198.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Hampton Inn Laredo,
located at 7903 San Dario, Laredo, TX.
	 
	199.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Residence Inn Tyler,
located at 3303 Troup Highway, Tyler, TX.
	 
	200.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Hilton Salt Lake City
Airport, located at 5151 Wiley Post Way, Salt Lake City, UT, as amended by
that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	201.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Radisson Hotel Old Town,
located at 901 North Fairfax Street, Alexandria, VA, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	202.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Holiday Inn & Suites
Historic District, located at 625 First Street, Alexandria, VA, as amended
by that certain Amendment to Management Agreement, dated as of January 1,
2002.
	 
	203.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Hilton Arlington &
Towers, located at 950 North Stafford Street, Arlington, VA, as amended by
that certain Amendment to Management Agreement, dated as of January 1,
2002.

 

 

	204.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Hilton Crystal City at
National Airport, located at 2399 Jefferson Davis Highway, Arlington, VA,
as amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.
	 
	205.	 	Hotel Management Agreement, dated as of February      , 2000, between
National Hospitality Corporation and MMC, with respect to the Sheraton
National Hotel, located at 900 South Orme Street, Arlington, VA.
	 
	206.	 	Hotel Management Agreement, dated as of December 5, 2000, between
JBG/Rockwood Gateway Plaza Operator, L.L.C. and MMC, with respect to the
Sheraton Reston Hotel, located at 11810 Sunrise Valley Drive, Reston, VA.
	 
	207.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Hilton Bellevue, located
at 100 112th Avenue, N.E., Bellevue, WA, as amended by that certain
Amendment to Management Agreement, dated as of January 1, 2002.
	 
	208.	 	Hotel Management Agreement, dated as of      , between      and MMC,
with respect to Holiday Inn Beckley, located at 1924 Harper Road, Beckley,
WV.
	 
	209.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Holiday Inn Madison,
located at 3841 East Washington Avenue, Madison, WI, as amended by that
certain Amendment to Management Agreement, dated as of January 1, 2002.
	 
	210.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
SPE Wisconsin Corp., and MMC, with respect to the Crowne Plaza Madison,
located at 4402 East Washington Avenue, Madison, WI.
	 
	211.	 	Hotel Management Agreement, dated as of February 2, 2000, between MIP
Lessee, LP and MMC, with respect to Wyndham Milwaukee Center, 139 Kilbourn
Avenue, Milwaukee, WI.
	 
	212.	 	Hotel Management Agreement, dated as of January 1, 2001, by and between
RFS Leasing II, Inc. and Flagstone, with respect to Holiday Inn Express
Mayfair Mall-Milwaukee, located at 11111 West North Avenue, Wauwatosa, WI.
	 
	213.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Holiday Inn Calgary
Airport, located at 1250 McKinnon Drive, N.E., Calgary, Alberta, Canada,
as amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.
	 
	214.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Holiday Inn Metrotown,
located at 4405 Central Blvd., Burnaby, British Columbia, Canada, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.

 

 

	215.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Sheraton Guildford Hotel,
located at 15269 104th Avenue, Surrey, British Columbia, Canada, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.
	 
	216.	 	Hotel Management Agreement, dated as of January 1, 2001, between MeriStar
Hotel Lessee, Inc., and MMC, with respect to the Ramada Vancouver Centre,
located at 898 West Broadway, Vancouver, British Columbia, Canada, as
amended by that certain Amendment to Management Agreement, dated as of
January 1, 2002.
	 
	217.	 	Hotel Management Agreement, dated as of April 15, 1999, among Crystal
Square Development Corp., Crystal Square Management Inc., TYBA Crystal
Investment Corp., Dong Ah Canada Development Corp., MeriStar Management
(Vancouver Metrotown) Ltd., and MMC, with respect to Hilton Vancouver
Metrotown, located at 6083 McKay Avenue, Burnaby, British Columbia,
Canada.
	 
	218.	 	Management Consulting Agreement, dated August 6, 2001, between American
Ski Company and certain of its subsidiaries and MMC, with respect to: (a)
Steamboat Grand Resort Hotel & Conference Center, located at 2300 Mount
Werner Circle, Steamboat Springs, CO; (b) Sunday River Grand Summit Hotel
& Conference Center, located at Sunday River Resort, Sunday River Access
Road, Bethel, ME; (c) Sugarloaf/USA Resort & Conference Center, located at
Sugarloaf, Rural Route One, Carrabassett Valley, ME (d) Attitash Resort,
Grand Summit Hotel and Conference Center, Route 302, Bartlett, NH; (e) The
Canyons Resort, located at 4000 The Canyons Resort Drive, Park City, UT;
(f) Killington Resort & Conference Center, located at 225 East Mountain
Road, Killington, VT; (g) Mount Snow Resort, located at 89 Mountain Road,
West Dover, VT.
	 
	219.	 	Services Agreement, dated as of December 21, 2001, between United Golf
LLC and MMC, with respect to (i) Blackhawk Golf Club, St. Charles, IL,
(ii) Cleghorn Plantation Golf Club, Rutherfordton, NC (iii) Lake Breeze
Golf Club, Winneconne, WI and (iv) Serenoa Golf Club, Sarasota, FL.

MANAGEMENT AGREEMENTS WITH CROSSROADS MANAGEMENT AND INTERSTATE HOTELS

	1.	 	Management Agreement, dated October 30, 1996, between City Square
Associates, LLC and Interstate Hotels Company (“Interstate”), as amended
by that certain First Amendment to Management Agreement, dated March 24,
1999, with respect to The Lexington Hotel, located at 4000 North Central
Avenue, Phoenix, AZ.
	 
	2.	 	Management Agreement, dated January 1, 2001, between FCH/Interstate
Leasing, L.L.C. and Crossroads Hotel Management Company, L.L.C.
(“Crossroads”) with respect to Fairfield Inn by Marriott Downtown
Scottsdale, located at 5101 N. Scottsdale Road, Scottsdale, AZ.
	 
	3.	 	Management Agreement, dated as of January 1, 2001 with ENN Leasing
Company, Inc. (“Equity”) and Crossroads, with respect to Hampton Inn
Scottsdale-Old Town, located at 4415 N. Civic Center Plaza, Scottsdale,
AZ.

 

 

	4.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company II, LLC and Crossroads, with respect to Residence Inn by Marriott
Tucson, located at 6477 East Speedway Boulevard, Tucson, AZ.
	 
	5.	 	Management Agreement, dated December 19, 1997, between Pacifica Hotel and
Conference Center Partnership and Interstate, with respect to Radisson Los
Angeles Westside, located at 6161 Centinela Avenue, Culver City, CA.
	 
	6.	 	Management Agreement, dated May 1, 1995, between Connecticut General Life
Insurance Company and Interstate Hotels LLC, as amended by that certain
Letter Amendment to Management Agreement, dated December 11, 1995, as
further amended by that certain Amendment to Management Agreement, dated
April 6, 1999, with respect to Marriott’s Laguna Cliff Resort (Dana
Point), located at 25135 Park Lantern, Dana Point, CA 92629.
	 
	7.	 	Management Agreement, dated June 30, 1995, between Today’s IV, Inc. and
Interstate Hotels, LLC, as amended by that certain Letter Agreement, dated
December 15, 1995, as further amended by that certain Letter Agreement,
dated October 24, 1997, that certain Amendment to Management Agreement,
dated August 10, 1999, and that certain Letter Agreement November 18,
2001, with respect to The Westin Bonaventure, located at 404 S. Figueroa
Street, Los Angeles, CA.
	 
	8.	 	Food and Beverage Operations Management Agreement, dated as of June 30,
1995, between FIT Investment Corporation d/b/a FIT Texas Investment
Corporation and Interstate Hotels, LLC, with respect to The Westin
Bonaventure, located at 404 S. Figueroa Street, Los Angeles, CA.
	 
	9.	 	Management Agreement dated as of August 11, 2000, between Amcor
Investments and Crossroads, with respect to Hampton Inn Milpitas, located
at 215 Barber Court, Milpitas, CA.
	 
	10.	 	Operation Agreement, dated September 29, 1997, between HMC/Interstate
Ontario, LP and Interstate Hotels LLC, as amended by that certain Consent,
Assignment and Assumption and Amendment of Operation Agreement, dated
December 31, 1998, with respect to the Marriott Ontario Airport, located
2200 East Holt Boulevard, Ontario, CA.
	 
	11.	 	Management Agreement, dated December 14, 1998, between Today’s VI, LLC
and Interstate Hotels Company, as amended by that certain Letter Agreement
re: Amendment to Management Agreement, dated November 18, 2001, with
respect to Ontario Amerisuites Hotel, located at 4760 East Mills Circle,
Ontario, CA.
	 
	12.	 	Operation Agreement, dated December 15, 1994, between Host Marriott, L.P.
and Interstate Hotels, LLC, as amended by that certain First Amendment to
Operation Agreement, dated November 1, 1996, as further amended by that
certain Second Amendment to Operation Agreement, dated January 31, 1997,
and that certain Consent, Assignment and Assumption and Amendment of
Operation Agreement December 31, 1998, with respect to the Marriott
Fisherman’s Wharf, located at 1250 Columbus Avenue, San Francisco, CA.

 

 

	13.	 	Management Agreement, dated May 30, 1992, between Today’s Hotel
Corporation and Interstate Hotels LLC, as amended by that certain Letter
Agreement re: Amendment to Management Agreement, dated November 18, 2001,
as further amended by that certain Second Amendment to Management
Agreement, dated September 14, 2001, and that certain Second Addendum to
Management Agreement and Related Agreements, dated August      2000, with
respect to the Holiday Inn San Francisco Golden Gateway, located at 1500
Van Ness Avenue, San Francisco, CA.
	 
	14.	 	Management Agreement, dated as of July 24, 2001, between SSF Investments,
LLC and Crossroads, with respect to the Comfort Suites South San
Francisco, located at 121 East Grand Avenue, South San Francisco, CA.
	 
	15.	 	Management Agreement, dated December 15, 1995, between Interstone/CGL WC
Partners, LP and Interstate Hotels, LLC, as amended by that certain Side
Letter re: sale of hotels, dated December 28, 1995, as further amended by
that certain Letter Notice, dated January 1, 1999, that certain Cash Flow
Letter, dated January 1, 1999, that certain Cash Flow Letter dated May 12,
1999, and that certain Letter re: Interstone/CGL WC Partners, LP, dated
January 1, 1999, with respect to the Marriott Warner Center, located at
21850 Oxnard Street, Woodland Hills, CA.
	 
	16.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company IV, LLC and Crossroads, with respect to the Hampton Inn
Denver/Aurora, located at 1500 South Abilene, Aurora, CO.
	 
	17.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Hampton Inn Colorado Springs/I-25 North,
located at 7245 Commerce Center Drive, Colorado Springs, CO.
	 
	18.	 	Management Agreement, dated as of February 12, 1999, between Colorado
Springs Hotel Partners, LLC and Crossroads with respect to the Hilton
Garden Inn Colorado Springs, located at 1810 Briargate Parkway, Colorado
Springs, CO.
	 
	19.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to Residence Inn by Marriott Colorado Springs,
located at 3880 North Academy Boulevard, Colorado Springs, CO.
	 
	20.	 	Management Agreement dated as of April 25, 2002, between Briad Lodging
Group Danbury, LLC and Crossroads Hospitality Management Company, with
respect to the Spring Hill Suites Danbury, located at 30 Old Ridgebury
Road, Danbury, Connecticut.
	 
	21.	 	Management Agreement, dated November 19, 2001, between CY Manchester
Tenant Corporation and Crossroads, with respect to the Courtyard By
Marriott Hartford/Manchester, located at 225 Slater Street, Manchester,
CT.
	 
	22.	 	Management Agreement, dated November 19, 2001, between RI Manchester
Tenant Corporation and Crossroads, with respect to the Residence Inn by
Marriott Hartford/Manchester, located at 210 Hale Road, Manchester, CT.

 

 

	23.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Hampton Inn Meriden, located at 10 Bee
Street, Meriden, CT 06450.
	 
	24.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Hampton Inn Milford, located at 129 Plains
Road, Milford, CT.
	 
	25.	 	Management Agreement, dated as of January 1, 2001, between Orange Hotel
Development, LP and Crossroads, as assigned pursuant to that certain
Assignment and Assumption of Management Agreement dated January 1, 2001,
with respect to the Courtyard by Marriott Orange, located at 136 Marsh
Hill Road, Orange, CT.
	 
	26.	 	Management Agreement, dated as of August      , 2002, between FCLC Shleton,
LLC and Crossroads Hospitality Management Company, with respect to the
AmeriSuites Hotel Shelton, 695 Bridgeport Avenue, Shelton, CT.
	 
	27.	 	Management Agreement, dated July 24, 2001, between Delaware Hotel
Associates, L.P. and Crossroads with respect to the Holiday Inn Select
Wilmington, located at 630 Naamans Road, Claymont, DE.
	 
	28.	 	Management Agreement April 16, 2001, between AGL Investments No. 3
Limited Partnership and Interstate Hotels Company, as amended by that
certain Addendum to Management Agreement April 16, 2001, with respect to
the Washington Terrace Hotel (f/k/a Washington Park Terrace Doubletree
Hotel), located at 1515 Rhode Island Avenue NW, Washington, DC.
	 
	29.	 	Amended and Restated Management Agreement, dated January 1, 2001, between
Massachusetts Mutual Life Insurance Company and Interstate Hotel Company,
with respect to the Sheraton Biscayne Bay Hotel, located at 495 Brickell
Ave., Miami, FL.
	 
	30.	 	Management Agreement, dated May 22, 1985, between Crocker Center
Associates III, Ltd. and      , as amended by that certain Amendment
to Management Agreement, December 20, 1994, and as further amended by that
certain First Amendment to Management Agreement, November 8, 1985; Third
Amendment to Management Agreement January 17, 2001; Extensions of
Management Agreement May 1998 through August 31, 1999, with respect to the
Marriott Boca Raton Hotel, located at 5150 Town Center Circle, Boca Raton,
FL.
	 
	31.	 	Management Agreement, dated December 21, 1996, between Don Cesar Resort
Hotel Ltd. and Interstate Hotels, LLC, as amended by that certain First
Amendment to Management Agreement, dated January 14, 1997, and as further
amended by that certain letter agreement, dated April 6, 1999, and that
certain letter agreement, dated February 8, 2002, with respect to the Don
Cesar Resort Hotel & Spa, located at 3400 Gulf Boulevard, St. Pete Beach,
FL.
	 
	32.	 	Primary Management Agreement, dated as of June 10, 1999, between Wyndham
International Operating Partnership, LP and IHC II, LLC; Submanagement
Agreement, dated as of June 10, 1999, between IHC II, LLC and Marriott,
both with respect to the Marriott Indian River Plantation, located at 555
N.E. Ocean Blvd., Stuart, FL.

 

 

	33.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company I, LLC and Crossroads, with respect to the Comfort Inn
Jacksonville Beach, located at 1515 North 1st Street, Jacksonville, FL.
	 
	34.	 	Management Agreement, dated as of January 1, 2001, between with ENN
Leasing Company I, LLC and Crossroads, with respect to the Hampton Inn
Jacksonville/Orange Park, located at 6135 Youngerman Circle, Jacksonville,
FL.
	 
	35.	 	Management Agreement, dated March 13, 1998, between Kendall Resort Hotel
Limited Partnership and Crossroads, as supplemented by that certain
Pre-Opening Activities Agreement, dated March 13, 1998, with respect to
the Radisson Suites Kendall, located at 9100 N. Kendall Drive, Miami, FL.
	 
	36.	 	Management Agreement February 20, 2002, effective April 1, 2002, as
amended April 29, 2002, Holiday Inn Key West Beachside, located at 3841 N.
Roosevelt Blvd., Key West, FL (Notice of termination of this agreement
pending sale of the hotel has been received).
	 
	37.	 	Management Agreement October 20, 2000, between Maingate Hospitality, L.P.
and Interstate Hotels Company, as amended by that certain Amendment, dated
February 21, 2002, with respect to the Renaissance Worldgate Hotel,
located at 3011 Maingate Lane, Kissimmee, FL.
	 
	38.	 	Management Agreement, dated October 25, 1988, between Teachers Retirement
System of the State of Illinois and Interstate Hotels LLC, as amended by
that certain Amendment to Management Agreement, dated September 26, 2001,
with respect to the Marriott Orlando Airport, located at 7499 Augusta
National Drive, Orlando, FL.
	 
	39.	 	Management Agreement, dated January 31, 2002, between Ganesh Hospitality
Inc. and Crossroads, with respect to the Best Western Universal Orlando,
located at 3618 Vineland Road, Orlando, FL.
	 
	40.	 	Management Agreement January 31, 2002, between Sita Resorts and
Crossroads, with respect to the Comfort Inn International, located at 8134
International Drive, Orlando, FL.
	 
	41.	 	Management Agreement January 15, 2001, between Universal Towers
Construction, Inc. and Interstate Hotels Company, with respect to the
Crowne Plaza Orlando, located at 7800 Universal Blvd., Orlando, FL.
	 
	42.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Homewood Suites Orlando Convention Center,
located at 8745 International Drive, Orlando, FL.
	 
	43.	 	Management Agreement, dated December 8, 2000, between Interconn Ponte
Vedra Company, LLC and Interstate Hotels Company, with respect to the
Marriott at Sawgrass, located at 1000 PGA Tour Boulevard, Ponte Vedra
Beach, FL.

 

 

	44.	 	Management Agreement, dated January 1, 2001, between FCH/Interstate
Leasing, L.L.C. and Crossroads, as assigned pursuant to that certain
Assignment and Assumption of Agreements re: Lease and Management
Agreement, dated March 26, 2001, with respect to the Fairfield Inn
Atlanta/Downtown, located at 175 Piedmont Avenue NE, Atlanta, GA.
	 
	45.	 	Primary Management Agreement, dated as of June 10, 1999, by and between
Wyndham International Operating Partnership, LP and IHC II, LLC;
Submanagement Agreement, dated as of June 10, 1999, by and between IHC II,
LLC and Marriott, both with respect to the Marriott Atlanta/North Central,
located at 2000 Century Blvd., N.E., Atlanta, GA.
	 
	46.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Hampton Inn Atlanta/Northlake, located at
3400 Northlake Parkway, Atlanta, GA.
	 
	47.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Homewood Suites Augusta, located at 1049
Stevens Creek Road, Augusta, GA.
	 
	48.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company I, LLC and Crossroads, with respect to the Hampton Inn Columbus
Airport, located at 5585 Whitesville Road, Columbus, GA.
	 
	49.	 	Management Agreement, dated January 31, 2000, between Forward One, LLC
and Interstate Hotels Company; Food and Beverage Operations Management
Agreement January 31, 2000, as amended by that certain Letter Agreement,
dated November 18, 2001, both with respect to the Renaissance Ilikai
Waikiki Hotel, located at 1777 Ala Moana Blvd., Honolulu, HI.
	 
	50.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect o the Boise Residence Inn by Marriott, located at
1401 S. Lusk Ave., Boise, ID.
	 
	51.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Homewood Suites Chicago Downtown, located
at 40 East Grand, Chicago, IL.
	 
	52.	 	Management Agreement, dated as of January 1, 2001, between State and
Grand Hotel Partners LLC and Interstate Hotels, LLC, with respect to the
Hilton Garden Inn Chicago Downtown North, located at Ten East Grand
Avenue, Chicago, IL; Management Services Agreement, dated as of January 1,
2001, between the same parties with respect to the same party.
	 
	53.	 	Management Agreement, dated as of January 1, 2001, with ENN Leasing
Company I, LLC and Crossroads, Hampton Inn Chicago/Naperville, located at
1087 Diehl Road, Naperville, IL.

 

 

	54.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company I, LLC and Crossroads, with respect to the Hampton Inn
Indianapolis Northeast/Castleton, located at 6817 East 82nd Street,
Indianapolis, IN.
	 
	55.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company II, LLC and Crossroads, with respect to the Hampton Inn Kansas
City/Overland Park, located 10591 Metcalf Frontage Road, Overland Park,
KS.
	 
	56.	 	Management Agreement, dated as of January 1, 2001 with ENN Leasing
Company I, LLC and Crossroads, with respect to the Hampton Inn Louisville
East (I-64), located at 1902 Embassy Square Boulevard, Louisville, KY.
	 
	57.	 	Management Agreement dated February 20, 2002, between HIM Portland, LLC
and Crossroads, with respect to the Portland Travelodge, located at 1200
Brighton Avenue, Portland, ME.
	 
	58.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company IV, LLC and Crossroads, with respect to the Hampton Inn
Baltimore/Glen Burnie, located at 6617 Gov. Ritchie Highway, Glen Burnie,
MD.
	 
	59.	 	Management Agreement, dated January 18, 1984, between Charles Square
Cambridge LLC and Cambridge Hotel Associates, as amended by that certain
First Amendment to Management Agreement, dated June 18, 1999, Letter
Agreement dated December 4, 1991; Assignment of Owner’s Interest dated
August 9, 2001, with respect to The Charles Hotel, located at One Bennett
Street, Cambridge, MA.
	 
	60.	 	Management Agreement, dated January 1, 2001, between Syracuse/Westborough
Hotel Associates and Crossroads, as assigned pursuant to that certain
Assignment and Assumption of Management Agreement, dated January 1, 2001,
with respect to the Westborough Courtyard by Marriott, located at 3
Technology Drive, Westborough, MA.
	 
	61.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company I, LLC and Crossroads, with respect to the Hampton Inn Ann Arbor
South, located at 925 Victors Way, Ann Arbor, MI.
	 
	62.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company III, LLC and Crossroads, with respect to the Hampton Inn
Detroit/Madison Heights, located at 32420 Stephenson Highway, Madison
Heights, MI.
	 
	63.	 	Management Agreement April 1, 2002, between Massachusetts Mutual Life
Insurance Company and Interstate Hotels Company, with respect to the
Marriott at Eagle Crest, located at 1275 S. Huron Street, Ypsilanti, MI.
	 
	64.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company II, LLC and Crossroads, with respect to the Residence Inn by
Marriott Minneapolis/St. Paul, located at 3040 Eagandale Place, Eagan, MN.

 

 

	65.	 	Management Agreement, dated September 4, 1997, between Lakeland Income
Properties, LLC and Crossroads, as amended by letter, dated January 14,
1999, as further amended by that certain Amendment to Management
Agreement, dated as of June 29, 2001, with respect to the Jackson Sleep
Inn, located at 4351 Lakeland Drive, Jackson, MS.
	 
	66.	 	Management Agreement, dated as of      , 2002, between Oxford
Asset Partners, LLC and Crossroads Hospitality Management Company, with
respect to the Downtown Inn of Oxford, located in Oxford, MS.
	 
	67.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company II, LLC and Crossroads, with respect to the Hampton Inn Kansas
City Airport, located at 11212 North Newark Circle, Kansas City, MO.
	 
	68.	 	Management Agreement, dated April 6, 1990, between Maryville Center Joint
Venture and Interstate Hotels Corporation, as amended by that certain
Amendment to Management Agreement, dated March 18, 1997, with respect to
the Marriott St. Louis West, located at 660 Maryville Centre Drive, St.
Louis, MO.
	 
	69.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company IV, LLC and Crossroads, with respect to the Hampton Inn St.
Louis/Westport, located at 2454 Old Dorsett Road, Maryland Heights, MO.
	 
	70.	 	Management Agreement, dated as of January 1, 2001, between Maryville
Center CBM Joint Venture and Crossroads, as assigned pursuant to that
certain Assignment and Assumption of Management Agreement, January 1,
2001, with respect to the Courtyard by Marriott St. Louis/Maryville,
located at 511 Maryville University Drive, St. Louis, MO.
	 
	71.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company I, LLC and Crossroads, with respect to the Residence Inn by
Marriott Omaha Central, located at 6990 Dodge Street, Omaha, NE.
	 
	72.	 	Management Agreement, dated May 20, 2002, between Cal-Neva Lodge, Inc.
and Interstate Hotels Company, with respect to the Cal-Neva Resort, Spa &
Casino, located at 2 Stateline Road, Crystal Bay, NV.
	 
	73.	 	Management Agreement, dated as of April 25, 2002, between Briad Lodging
Group Cranbury, LLC and Crossroads Hospitality Management Company, with
respect to Residence Inn by Marriott Cranbury, located at 2662 Route 130
Cranbury, NJ.
	 
	74.	 	Management Agreement, dated as of April 25, 2002, between Briad Lodging
Group Franklin, LLC and Crossroads Hospitality Management Company, with
respect to Residence Inn by Marriott Franklin, located at 37 World Fair
Drive, Somerset, NJ.
	 
	75.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company I, LLC and Crossroads, with respect to the Residence Inn by
Marriott Princeton, located at 4225 Route 1, P.O. Box 8388, Princeton, NJ.

 

 

	76.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company II, LLC and Crossroads, with respect to the Residence Inn by
Marriott Tinton Falls, located at 90 Park Road, Tinton Falls, NJ.
	 
	77.	 	Management Agreement, dated as of May 15, 2000, between Vail Mansion LLC
and Interstate Hotels Company, as amended by that certain Amendment, dated
as of August 17, 2001, with respect to The Inn at Vail Mansion, located in
Morristown, NJ.
	 
	78.	 	Management Agreement, dated as of September 16, 2002, between CNL GA
Tenant Corp. and Crossroads Hospitality Management Company, with respect
to the Courtyard by Marriott Edison-Raritan Center, located at 3105
Woodbridge Boulevard, Edison, NJ.
	 
	79.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company IV, LLC and Crossroads, with respect to the Hampton Inn Albany –
Wolf Road, located at 10 Ulenski Drive, Albany, NY.
	 
	80.	 	Management Agreement, dated May 14, 1997, between Med Inn Centers of
America, LLC and Crossroads, with respect to The Pillars Hotel, located at
125 High Street, Buffalo, NY.
	 
	81.	 	Management Agreement, dated March 31, 1995, between University Inn
Corporation and Crossroads, as amended by letter, dated August 31, 1995,
Canton Best Western University Inn, located at 90 East Main Street,
Canton, NY.
	 
	82.	 	Management Agreement, dated as of October 5, 2001, between Briad Lodging
Group Hauppauge, LLC and Crossroads Hospitality Management Company, as
amended by that certain First Amendment to Management Agreement, dated as
of April 25, 2002, with respect to Residence Inn Long Island/
Hauppauge/Islandia, located at 850 Veterans Memorial Highway, Hauppauge,
NY.
	 
	83.	 	Management Agreement January 11, 2000, between Granite JFK LLC and
Crossroads, as supplemented by Letter re: Loan Amount and Terms, dated
January 11, 2000, as amended by Letter, dated March 20, 2000, with respect
to the Courtyard by Marriott JFK International Airport, located at 145-11
North Conduit Avenue, Jamaica, NY.
	 
	84.	 	Management Agreement, dated June 20, 1996, between Granite Park LLC and
Crossroads, as assigned pursuant to that certain Assignment and Assumption
of Agreements July 31, 1997, with respect to the Times Square South
Courtyard by Marriott, located at 114 West 40th Street, New York, NY.
	 
	85.	 	Management Agreement, dated October 10, 1995, between Jetport Hotel
Corporation and Crossroads, as amended by that certain Amendment to
Management Agreement, dated January 1, 1998, as further amended by that
certain Second Amendment to Management Agreement, dated May 27, 1999, and
that certain Third Amendment to Management Agreement, dated December 31,
2000, with respect to the Comfort Inn Murray Hill, located at 42 West 35th
Street, New York, NY.

 

 

	86.	 	anagement Agreement, dated August 21, 2000, between Massachusetts Mutual
Life Insurance Company and Interstate Hotels Company, with respect to The
Muse Hotel, located at 130 West 46th Street New York, NY.
	 
	87.	 	Management Agreement June 6, 2001, between Unigroup Hotel LLC and
Crossroads, as supplemented by that certain Pre-Opening Activities
Agreement June 1, 2001, with respect to the Best Western New York City,
located at 522 West 38th Street, New York, NY.
	 
	88.	 	Management Agreement, dated as of June 27, 2001, between H. Park Central
Hotel and Interstate Hotels Company, as amended by that certain First
Amendment dated January 1, 2002, with respect to the Park Central Hotel,
located at 870 Seventh Avenue, New York, NY.
	 
	89.	 	Management Agreement, dated February 21, 1997, between Roosevelt Hotel
Corporation, N.V. and Interstate Hotels LLC, as amended by that certain
Amendment to Management Agreement, dated February 22, 1997, as further
amended by that certain First Amendment of Management Agreement, dated
July 21, 1997, with respect to The Roosevelt Hotel, located at 45 East
45th Street, New York, NY.
	 
	90.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Hampton Inn Chapel Hill, located at 1740
US15 and Highway 501, Chapel Hill, NC.
	 
	91.	 	Operation Agreement, dated January 5, 1995, between Host Marriott, L.P.
and Interstate Hotels, LLC, as amended by that certain First Amendment to
Operation Agreement, dated December 29, 1999, with respect to the Marriott
Charlotte Executive Park, located at 5700 Westpark Drive, Charlotte, NC.
	 
	92.	 	Management Agreement, dated as of January 1, 2001, ENN Leasing Company I,
LLC and Crossroads, with respect to the Hampton Inn Fayetteville/I-95,
located at 1922 Cedar Creek Road, Fayetteville, NC.
	 
	93.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company I, LLC and Crossroads, with respect to the Hampton Inn Gastonia,
located at 1859 Remount Road, Gastonia, NC.
	 
	94.	 	Management Agreement, dated November 28, 2001, between Raleigh Prism One
Limited Partnership and Interstate Hotels Company, with respect to the
Sheraton Raleigh Capital Center Hotel, located at 421 South Salisbury
Street, Raleigh, NC.
	 
	95.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Holiday Inn Express Wilkesboro, located at
1700 Winkler Street, Wilkesboro, NC.
	 
	96.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company I, LLC and Crossroads, with respect to the Holiday Inn
Winston-Salem, located at 2008 S. Hawthorne Road, Winston-Salem, NC.

 

 

	97.	 	Management Agreement, dated as of May 4, 1999, between Wyndham
International Operating Partnership, L.P. and Crossroads, with respect to
the Courtyard by Marriott Cleveland East, located at 3695 Orange Place,
Beachwood, OH.
	 
	98.	 	Management Agreement dated as of April 1, 2002, effective April 25, 2002,
between 5901 Pfeiffer Road Hotel and Suites, LLC and Crossroads, with
respect to the Clarion Hotel & Suites Cincinnati/ Blue Ash, located at
5901 Pfeiffer Road, Blue Ash, OH.
	 
	99.	 	Management Agreement, dated as of March 25, 1997, between 1460 Ninth
Street Associates Limited Partnership and Crossroads, with respect to the
Hampton Inn Cleveland Downtown, located at 1460 E. 9th Street, Cleveland,
OH.
	 
	100.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company I, LLC and Crossroads, with respect to the Hampton Inn
Cleveland/Westlake, located at 29690 Detroit Road, Westlake, OH.
	 
	101.	 	Management Agreement, dated as of July 10, 1998, between Connecticut
General Life Insurance Company and      , as amended by that certain
Amendment to Management Agreement, dated December 31, 1999, as further
amended by that certain Second Amendment to Management Agreement December
31, 2002, with respect to the Embassy Suite Columbus, located at 2700
Corporate Exchange Drive, Columbus, OH.
	 
	102.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company III, LLC and Crossroads, with respect to the Hampton Inn
Columbus/Dublin, located at 3920 Tuller Road, Dublin, OH.
	 
	103.	 	Management Agreement, dated as of January 1, 2001, between with ENN
Leasing Company II, LLC and Crossroads, with respect to the Homewood
Suites Cincinnati North, located at 2670 East Kemper Road, Sharonville,
OH.
	 
	104.	 	Management Agreement, dated November 19, 1999, supplemented by that
certain Supplement to Management Agreement, dated January      , 2001, as
amended by that certain Amendment to Management Agreement, dated May      ,
2001, and that certain Amendment, dated April 11, 2002, and effective May
1, 2002, with respect to the Quartz Mountain Resort, located at Route #1,
Box 37, Lone Wolf, OK.
	 
	105.	 	Management Agreement, dated as of January 1, 2001, between with ENN
Leasing Company IV, LLC and Crossroads, with respect to the Residence Inn
by Marriott Oklahoma City, located 4361 West Reno, Oklahoma City, OK.
	 
	106.	 	Operation Agreement, dated February 10, 1997, between HMC/Interstate
Waterford, L.P. and      , as amended by that certain Consent,
Assignment and Assumption and Amendment of Operation Agreement, dated
December 31, 1998, with respect to The Waterford Hotel, located at 6300
Waterford Boulevard, Oklahoma City, OK.
	 
	107.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Residence Inn by Marriott Portland
Downtown, located at 1710 NE Multnomah St., Portland, OR.

 

 

	108.	 	Primary Management Agreement, dated as of June 10, 1999, between Wyndham
International Operating Partnership, LP and IHC II, LLC; Submanagement
Agreement, dated as of June 10, 1999, between IHC II, LLC and Marriott,
both with respect to the Marriott Harrisburg, located at 4650 Lindle Road,
Harrisburg, PA.
	 
	109.	 	Management Agreement, dated November 2, 2001, between Tanjabal Inc. and
Crossroads, with respect to the Fairfield Inn Harrisburg/New Cumberland,
located at 175 Beacon Hill Blvd., New Cumberland, PA.
	 
	110.	 	Management Agreement dated January 23, 2002, between Lancaster County
Convention Center Authority and      , with respect to the
Lancaster County Convention Center, to be located in Downtown Lancaster,
PA.
	 
	111.	 	Management Agreement, dated January 5, 2001, between Penn Square Partners
and      , as amended by that certain First Amendment to Management
Agreement, dated July 11, 2001, with respect to the Marriott Lancaster
Hotel, to be located at Two East King Street, Lancaster, PA.
	 
	112.	 	Management Agreement September 22, 1997, between Majestic Holdings, LLC
and Crossroads, wit respect to the Holiday Inn Philadelphia Airport,
located at 45 Industrial Highway, Philadelphia, PA.
	 
	113.	 	Primary Management Agreement, dated as of June 10, 1999, between Wyndham
International Operating Partnership, LP and IHC II, LLC; Submanagement
Agreement, dated as of June 10, 1999, between IHC II, LLC and Marriott,
both with respect to the Marriott Philadelphia West, located at 111
Crawford Avenue, West Conshohocken, PA.
	 
	114.	 	Management Agreement November 1, 1999, between Interstate Pittsburgh
Hotel Holdings, LLC and Crossroads, with respect to the Residence Inn by
Marriott Pittsburgh Airport, located at 1500 Park Lane, North Fayette
Township, PA.
	 
	115.	 	Management Agreement, July 28, 2000, between Three Marquis Partners and
Crossroads, with respect to the Pittsburgh Country Inn & Suites, located
at 5311 Campbells Run Road, Pittsburgh, Pennsylvania.
	 
	116.	 	Management Agreement March 25, 1998, between Schenley Center Associates
LP and Crossroads, as amended by that certain First Amendment to
Management Agreement, dated September 29, 1998, as supplemented by that
certain Pre-Opening Activities Agreement, dated March 25, 1998, with
respect to the Residence Inn by Marriott Pittsbrugh/Oakland, located at
3896 Bigelow Blvd., Pittsburgh, PA.
	 
	117.	 	Management Agreement, dated as of January 1, 2001, between State College
BBQ/Concord Joint Venture and Crossroads, with respect to the Hampton Inn
State College, located at 1101 East College Avenue, State College, PA.
	 
	118.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company IV, LLC and Crossroads, with respect to the Hampton Inn Scranton
at Montage Mountain, located at Montage Mountain Rd. & David St.,
Scranton, PA.

 

 

	119.	 	Management Agreement, dated April l, 2000, between FFC/Providence Hotel
Partnership and Crossroads, with respect to the Courtyard by Marriott
Downtown Providence, located at 32 Exchange Terrace, Providence, RI.
	 
	120.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company IIII, LLC and Crossroads, with respect to the Hampton Inn
Charleston Airport/Coliseum, located at 4701 Saul White Blvd., North
Charleston, SC.
	 
	121.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Hampton Inn Columbia/I-26 Airport Area,
located at 1094 Chris Drive, West Columbia, SC.
	 
	122.	 	Management Agreement, dated August 18, 1996, between Massachusetts Mutual
Life Insurance Company and      , as amended by that certain Amendment
to Management Agreement, dated January 1, 1994, with respect to the
Marriott Memphis Hotel, located at 2625 Thousand Oaks Boulevard, Memphis,
TN.
	 
	123.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Comfort Inn Arlington South, located at
121 East I-20, Arlington, TX.
	 
	124.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company, I, LLC and Crossroads, with respect to the Hampton Inn Austin
North, located at 7619 IH-35N, Austin, TX.
	 
	125.	 	Management Agreement, dated as of October 3, 2000, between LB Beaumont
LLC and Crossroads, with respect to the Hilton Beaumont, located at 2335
I-10 South, Beaumont, TX.
	 
	126.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company I, LLC and Crossroads, with respect to the Hampton Inn College
Station, located at 320 Texas Avenue South, College Station, TX.
	 
	127.	 	Management Agreement, dated January 1, 2001, between FCH/Interstate
Leasing, L.L.C. and Crossroads, as assigned pursuant to that certain
Assignment and Assumption of Agreements re: Lease and Management
Agreement, dated March 26, 2001, with respect to the Fairfield Inn by
Marriott Dallas/Stemmons Freeway, located at 1575 Regal Row at Stemmons
Freeway, Dallas, TX.
	 
	128.	 	Management Agreement, dated as of August 18, 2000, between MRI Houston
Hospitality, L.P. and Crossroads, with respect to the Residence Inn by
Marriott Houston Astrodome/Medical Center, located at 7710 S. Main St.,
Houston, TX.
	 
	129.	 	Management Agreement, dated September 28, 2000, between HHG Partners, LLC
and Crossroads, with respect to the Hilton Garden Inn Houston/Bush
Intercontinental Airport, located at 15400 John F. Kennedy Boulevard,
Houston, TX 77032.
	 
	130.	 	Management Agreement, dated January 1, 2001, between FCH/Interstate
Leasing, L.L.C. and Crossroads, as assigned pursuant to that certain
Assignment and Assumption of

 

 

	 	 	Agreements re: Lease and Management Agreement, dated March 26, 2001, with
respect to the Courtyard by Marriott Houston/Galleria, located at 3131
West Loop South, Houston, TX.
	 
	131.	 	Management Agreement, dated January 1, 2001, between FCH/Interstate
Leasing, L.L.C. and Crossroads, as assigned pursuant to that certain
Assignment and Assumption of Agreements re: Lease and Management
Agreement, dated March 26, 2001, with respect to the Fairfield Inn
Houston/Galleria, located at 3131 West Loop South, Houston, TX.
	 
	132.	 	Management Agreement, dated January 1, 2001, between FCH/Interstate
Leasing, L.L.C. and Crossroads, as assigned pursuant to that certain
Assignment and Assumption of Agreements re: Lease and Management
Agreement, dated March 26, 2001, with respect to the Fairfield Inn
Houston/I-10 East, located at 10155 I-10 East Freeway, Houston, TX.
	 
	133.	 	Management Agreement, dated January 1, 2001, between FCH/Interstate
Leasing, L.L.C. and Crossroads, as assigned pursuant to that certain
Assignment and Assumption of Agreements re: Lease and Management
Agreement, dated March 26, 2001, with respect to the Hampton Inn
Houston/I-10 East, located at 828 Mercury Drive, Houston, TX.
	 
	134.	 	Management Agreement, dated as of September 4, 2002, between HI Galleria
Tenant Corporation and Crossroads Hospitality Management Company, with
respect to the Hampton Inn Houston Near the Galleria, located at 4500 Post
Oak Highway, Houston, TX.
	 
	135.	 	Primary Management Agreement, dated as of June 10, 1999, between Wyndham
International Operating Partnership, LP and IHC II, LLC; Submanagement
Agreement, dated as of June 10, 1999, between IHC II, LLC and Marriott,
both with respect to the Marriott Houston/Greenspoint, located at 255 N.
Sam Houston Parkway East, Houston, TX.
	 
	136.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Hampton Inn San Antonio Downtown, ,
located at 414 Bowie Street, San Antonio, TX.
	 
	137.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company III, LLC and Crossroads, with respect to the Comfort Inn
Rutland/Trolley Square, located at 19 Allen Street, Rutland, VT.
	 
	138.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company IV, LLC and Crossroads, with respect to the Hampton Inn Norfolk
Naval Base, located at 8501 Hampton Blvd., Norfolk, VA.
	 
	139.	 	Management Agreement, dated May 30, 1992, between Today’s Hotel Seattle
Corporation and Interstate Hotels, LLC, as amended by that certain First
Amendment to Management Agreement, dated July 8, 1992, as further amended
by that certain Second Amendment to Management Agreement, dated August 18,
1992, that certain Third Amendment to Management Agreement, dated November
     , 1992, and that certain Fourth Amendment to Management Agreement,
dated September 14, 2001, and by letter,

 

 

	 	 	dated November 18, 2001, with respect to the Crowne Plaza Seattle,
located at 1113 Sixth Avenue, Seattle, WA.
	 
	140.	 	Management Agreement, dated as of January 1, 2001, between with Equity
and Crossroads, with respect to Homewood Suites Seattle Downtown, located
at 206 Western Avenue West, Seattle, WA.
	 
	141.	 	Management Agreement, dated as of January 1, 2001, between ENN Leasing
Company IV, LLC and Crossroads, with respect to the Hampton Inn Beckley,
located at 110 Harper Park Drive, Beckley, WV.
	 
	142.	 	Management Agreement and Addendum, dated as of January 1, 2001, between
Equity and Crossroads, with respect to the Holiday Inn Bluefield, located
at Route 460, Bluefield, WV.
	 
	143.	 	Management Agreement, dated as of January 1, 2001, between Equity and
Crossroads, with respect to the Hampton Inn Morgantown, located at 1053
Van Voorhis Road, Morgantown, WV.
	 
	144.	 	Management Agreement, dated January 5, 2000, between Platinum Properties
LLC and      , as assigned pursuant to that certain Assignment and
Assumption dated August 8, 2001, with respect to the Radisson Morgantown
Hotel, located at University Avenue, Morgantown, WV.
	 
	145.	 	Management Agreement and Addendum, dated as of January 1, 2001, between
Equity and Crossroads, with respect to the Holiday Inn Oak Hill, located
340 Oyler Avenue, Oak Hill, WV.
	 
	146.	 	Management Agreement, dated December 29, 1993, between Singdeer
Investments Limited and      , as amended by that certain First
Amendment to Management Agreement, dated November 15, 1999, with respect
to the Toronto Colony Hotel, located at 89 Chestnut Street, Toronto,
Ontario, Canada.
	 
	147.	 	Operation Agreement January 29, 1996, between HMC AP Canada Inc. and
     , as amended by that certain Consent, Assignment and Assumption
and Amendment of Operation Agreement, dated December 31, 1998, with
respect to the Toronto Delta Meadowvale, located at 6750 Mississauga Road,
Mississauga, Ontario, Canada.
	 
	148.	 	Management Agreement, dated February 9, 1998, between Hotel da
Praia-Gestao e Exploracao de Hoteis and Interstate Hotels Corporation,
with respect to the Marriott Praia d’el Rey Hotel, located at Plots 78 and
79, Praia d’el Rey Golf & Country Club, Vale de Janeles Obidos, Portugal.
	 
	149.	 	Management Agreement and Memorandum, dated December 7, 2001, between
1,000 Y graluxservice and      , with respect to a hotel property to
be located at Gagarina Street, Khanti-Mansiisk, Russia.

 

 

	150.	 	Management Agreement, dated October 3, 1994, between Mospromstoi, Inc.
and      with respect to the Moscow Marriott Grand Hotel, located
at 26 Tverskaya Street, Moscow, Russia.
	 
	151.	 	Management Agreement, dated September 6, 1997, between Mospromstoi, Inc.
and Interstate Hotels Corporation with respect to Moscow Marriott Royal
Hotel (f/k/a The Westin Astoria and Aurora-Lux), located at 11/20 Petrovka
Street, Moscow, Russia.
	 
	152.	 	Management Agreement, dated April      , 1995, between Mospromstoi, Inc.
and Interstate Hotels Corporation, with respect to the Moscow Marriott
Tverskaya (f/k/a Colony Tverskaya), located at 34 First Tverskaya Yamskaya
St., Moscow, Russia.
	 
	153.	 	Management Agreement, dated June 14, 2001, between Eco Phoenix Holding,
PLC and Interstate Hotels Corporation, supplemented by that certain
Pre-Opening Consulting Services Agreement, dated July 25, 2001, that
certain Technical Services Agreement, dated July 25, 2001, with respect to
the Courtyard by Marriott St. Petersburg, located at 4 Goncharnaya Street,
St. Petersburg, Russia 193036 RF.
	 
	154.	 	Management Agreement dated as of December 4, 2000, between UAB Baltic
Mansion Hotels and Interstate Hotels Company, as amended by that certain
Letter, dated December 4, 2000, as further amended by that certain Letter
dated December 5, 2000, with respect to Marriott Vilnius, located at A.
Gostavto & Gyneju Streets, Vilnius, Lithuania.

 

 

SCHEDULE 1.01(F)

Existing Participating Leases

Doubletree Norfolk-Norfolk, VA – Hotel Lease Agreement, dated as of December
15, 1994, between Military Circle Hotel Limited Partnership and CapStar Hotels
of Norfolk, Inc., as amended by that certain First Amendment to Hotel Lease
Agreement, dated as of December 31, 1997, as assigned by CapStar Hotels of
Norfolk, Inc. to MeriStar H & R Operating Company, L.P. pursuant to that
certain Assignment of Lease, dated as of January 1, 1999, as further amended by
that certain Second Amendment to Hotel Lease Agreement, dated as of
           .

 

 

SCHEDULE 1.01(G)

Guarantors

Interstate Hotels & Resorts, Inc.

MeriStar Management Company, L.L.C.

MeriStar AGH Company, L.L.C.

CapStar Winston Company, L.L.C.

CapStar BK Company, L.L.C.

CapStar KCII Company, L.L.C.

CapStar Wyandotte Company, L.L.C.

CapStar St. Louis Company, L.L.C.

MeriStar Laundry, LLC

MeriStar Preston Center, L.L.C.

MeriStar Management (Canmore) Ltd.

MeriStar Management (Vancouver-Metrotown) Ltd.

MeriStar HGI Company, L.L.C.

MeriStar Storrs Company, L.L.C.

MeriStar Vacations, L.L.C.

The Net Effect Strategic Alliance, LLC

MeriStar Flagstone, LLC

BridgeStreet Corporate Housing Worldwide, Inc.

BridgeStreet Maryland, LLC

BridgeStreet Minneapolis, LLC

BridgeStreet Midwest, LLC

BridgeStreet Arizona, LLC

BridgeStreet Nevada, LLC

BridgeStreet Texas, L.P.

BridgeStreet Southwest, LLC

BridgeStreet Ohio, LLC

BridgeStreet California, LLC

BridgeStreet Colorado, LLC

BridgeStreet North Carolina, LLC

BridgeStreet Raleigh, LLC

BridgeStreet Canada, Inc.

BridgeStreet Accommodations, Ltd.

BridgeStreet Accommodations London Limited

Loryt(1), Ltd.

BridgeStreet Wardrobe Place Limited

Apalachee Bay SAS

Interstate Property Corporation

Interstate Property Partnership, L.P.

Interstate Partner Corporation

Interstate Investment Corporation

Interstate Hotels Company

Interstate Member, Inc.

 

 

Northridge Holdings, Inc.

Crossroads Hospitality Management Company

IHC Holdings, Inc.

Interstate Hotels, LLC

Interstate/Dallas GP, LLC

Interstate/Dallas Partnership, L.P.

Interstate Pittsburgh Hotel Holdings, LLC

Interstate Manchester Company, L.L.C.

Interstate Houston Partner, L.P.

Interstate/KP Holding Corporation

Interstate Kissimmee Partner, L.P.

Continental Design and Supplies Company, L.L.C.

IHC Moscow Services, L.L.C.

PAH-Hilltop GP, LLC

Hilltop Equipment Leasing Company, L.P.

PAH-Cambridge Holdings, LLC

Crossroads Hospitality Company, L.L.C.

IHC International Development (U.K.), L.L.C.

Northridge Insurance Company

Colony Hotels and Resorts Company

IHC Services Company, L.L.C.

Crossroads Hospitality Tenant Company, L.L.C.

IHC/Moscow Corporation

Future Financing Member Corporation

Crossroads Memphis Financing Corporation

Crossroads Memphis Financing II Corporation

Crossroads/Memphis Partnership, L.P.

Crossroads/Memphis Company, L.L.C.

Crossroads Future Company, L.L.C.

Crossroads Future Financing Company, L.L.C.

Crossroads/Memphis Financing Company, L.L.C.

Crossroads/Memphis Financing Company II, L.L.C.

 

 

SCHEDULE 1.01(I)

Specified Acquirer

FelCor.

 

 

SCHEDULE 4.01

Subsidiaries

	 	 	 	 	 	 	 
	Subsidiary	 	Jurisdiction	 	Principal Place of Business	 	Ownership Interest
	
	 	
	 	
	 	

	MeriStar H & R Operating Company, L.P.	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	1% Interstate Hotels & Resorts, Inc. (GP)

93.4% Interstate Hotels & Resorts, Inc. (LP)

1% CapStar Management Company, L.L.C. (LP)

4.6% : Other Third-Party Limited Partners
	MeriStar Management Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% MeriStar H & R Operating Company, L.P.

1% Interstate Hotels & Resorts, Inc
	MeriStar AGH Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% MeriStar H & R Operating Company, L.P.
	CapStar Winston Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% MeriStar H & R Operating Company, L.P.

1% Interstate Hotels & Resorts, Inc.
	CapStar BK Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% MeriStar H & R Operating Company, L.P.

1% MeriStar AGH Company, L.L.C. (GP)
	CapStar KCII Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% MeriStar H & R Operating Company, L.P.

1% Interstate Hotels & Resorts, Inc
	CapStar Wyandotte Company, L.L.C	 	
Missouri
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% CapStar KCII Company, L.L.C.
	CapStar St. Louis Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% MeriStar H & R Operating Company, L.P.

1% Interstate Hotels & Resorts, Inc.
	MIP GP Inc.	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% MeriStar H & R Operating Company, L.P.
	MIP GP, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% MeriStar H & R Operating Company, L.P.

1% MIP GP Inc.
	MeriStar Laundry, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% MeriStar H & R Operating Company, L.P.

1% Interstate Hotels & Resorts, Inc.
	MeriStar Preston Center, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% MeriStar H & R Operating Company, L.P.

 

 

	 	 	 	 	 	 	 
	Subsidiary	 	Jurisdiction	 	Principal Place of Business	 	Ownership Interest
	
	 	
	 	
	 	

	MeriStar Management (Canmore) Ltd.	 	
British Columbia

Canada
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% MeriStar Management Company, L.L.C.
	MeriStar Management
(Vancouver-Metrotown) Ltd.	 	
British Columbia

Canada
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% MeriStar Management Company, L.L.C.
	MeriStar HGI Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% MeriStar H & R Operating Company, L.P.
	MeriStar Storrs Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% MeriStar H & R Operating Company, L.P.

1% Interstate Hotels & Resorts, Inc.
	MeriStar Vacations, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% MeriStar H & R Operating Company, L.P.
	The NetEffect Strategic Alliance, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% MeriStar H & R Operating Company, L.P.
	MeriStar Flagstone, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% MeriStar H & R Operating Company, L.P.
	Flagstone Hospitality Management LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	51% MeriStar Flagstone LLC

(Balance of Interest to be acquired)
	BridgeStreet Corporate Housing
Worldwide, Inc.	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels & Resorts, Inc.
	BridgeStreet Maryland, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% BridgeStreet Corporate Housing
Worldwide, Inc.
	BridgeStreet Minneapolis, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% BridgeStreet Corporate Housing
Worldwide, Inc.
	BridgeStreet Midwest, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% BridgeStreet Corporate Housing
Worldwide, Inc.
	BridgeStreet Arizona, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% BridgeStreet Corporate Housing
Worldwide, Inc.

 

 

	 	 	 	 	 	 	 
	Subsidiary	 	Jurisdiction	 	Principal Place of Business	 	Ownership Interest
	
	 	
	 	
	 	

	BridgeStreet Nevada, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% BridgeStreet Corporate Housing
Worldwide, Inc.
	BridgeStreet Texas, L.P.	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% BridgeStreet Nevada, LLC

1% BridgeStreet Arizona, LLC
	BridgeStreet Southwest, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% BridgeStreet Corporate Housing
Worldwide, Inc.
	BridgeStreet Ohio, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% BridgeStreet Corporate Housing
Worldwide, Inc.
	BridgeStreet California, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% BridgeStreet Corporate Housing
Worldwide, Inc.
	BridgeStreet Colorado, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% BridgeStreet Corporate Housing
Worldwide, Inc.
	BridgeStreet North Carolina, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% BridgeStreet Corporate Housing
Worldwide, Inc.
	BridgeStreet Raleigh, LLC	 	
North Carolina
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% BridgeStreet Corporate Housing
Worldwide, Inc.
	BridgeStreet Canada, Inc.	 	
Canada
	 	1000 Yonge Street, Suite 301 Toronto,

Ontario, Canada
	 	100% BridgeStreet Corporate Housing
Worldwide, Inc.
	BridgeStreet Accommodations, Ltd.	 	
United Kingdom
	 	Compass House,

22 Redan Place, 6th Floor,

London, England
	 	100% BridgeStreet Corporate Housing
Worldwide, Inc.
	BridgeStreet Accommodations

London, Limited	 	
United Kingdom
	 	Compass House,

22 Redan Place, 6th Floor,

London, England
	 	99% BridgeStreet Accommodations, Inc.

1% BridgeStreet Accommodations, Ltd.
	Loryt(1) Limited	 	
United Kingdom
	 	Compass House,

22 Redan Place, 6th Floor,

London, England
	 	100% BridgeStreet Accommodations, Ltd.
	BridgeStreet Wardrobe Place Limited	 	
United Kingdom
	 	Compass House,

22 Redan Place, 6th Floor,

London, England
	 	100% BridgeStreet Accommodations, Ltd.
	Apalachee Bay SAS	 	
France
	 	21 Rue de Madrid

Paris, France
	 	100% BridgeStreet Accommodations, Ltd.

 

 

	 	 	 	 	 	 	 
	Subsidiary	 	Jurisdiction	 	Principal Place of Business	 	Ownership Interest
	
	 	
	 	
	 	

	Interstate Hotels Company	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels & Resorts, Inc.
	Crossroads Hospitality

Management Company	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels & Resorts, Inc.
	Northridge Holdings, Inc.	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels & Resorts, Inc.
	IHC Holdings, Inc.	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Northridge Holdings, Inc.
	Interstate Hotels, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	98.3373% Northridge Holdings, Inc.

1.6627% PAH-Interstate Holdings, Inc.
	Northridge Insurance Company	 	
Cayman Islands
	 	 	 	100% Interstate Hotels, LLC
	Interstate Property Corporation	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels & Resorts, Inc.
	Interstate Partner Corporation	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels & Resorts, Inc.
	Interstate/KP Holding Corporation	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Partner Corporation
	Interstate Property Partnership, L.P.	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% Interstate Partner Corporation (LP)

1% Interstate Property Corporation (GP)
	Interstate Pittsburgh
Hotel Holdings, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Property Partnership, L.P.
	Interstate Manchester Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Property Partnership, L.P.
	Interstate Houston Partner, L.P.	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% Interstate Property Partnership, L.P.(LP)

1% Interstate Property Corporation (GP)

 

 

	 	 	 	 	 	 	 
	Subsidiary	 	Jurisdiction	 	Principal Place of Business	 	Ownership Interest
	
	 	
	 	
	 	

	Interstate Kissimmee Partner, L.P.	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% Interstate/KP Holding Corporation (LP)

1% Interstate Property Corporation (GP)
	Interstate/Dallas Partnership, L.P.	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% Interstate Property Partnership, L.P. (LP)

1% Interstate Property Corporation (GP)
	Interstate/Dallas GP, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Property Corporation
	IHC II, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99.99% MeriStar H & R Operating Company, L.P.

..01% Marriott Hotel Services, Inc.
	Interstate Investment Corporation	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels & Resorts, Inc.
	Interstate Member, Inc.	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels & Resorts, Inc.
	IHC Moscow Services, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels, LLC
	IHC Services Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels, LLC
	Continental Design and Supplies
Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% Interstate Hotels, LLC

1% Interstate Member, Inc.
	PAH-Hilltop GP, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels, LLC
	Hilltop Equipment Leasing Company, L.P.	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% PAH-Hilltop GP, LLC (GP)

1% Interstate Member, Inc. (LP)
	PAH-Cambridge Holdings, LLC	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels, LLC

 

 

	 	 	 	 	 	 	 
	Subsidiary	 	Jurisdiction	 	Principal Place of Business	 	Ownership Interest
	
	 	
	 	
	 	

	IHC International Development (UK),
L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels, LLC
	Crossroads Hospitality Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% Interstate Hotels, LLC

1% Interstate Member, Inc.
	Colony Hotels and Resorts Company	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels LLC
	Crossroads Hospitality Tenant Company,
L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% Crossroads Hospitality Company, L.L.C.

1% Interstate Member, Inc.
	Crossroads/Memphis Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% Crossroads Hospitality Company, L.L.C.

1% Interstate Member, Inc.

	Crossroads/Memphis Partnership, L.P.	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	GP: 83.2329% Crossroads Memphis Company, L.L.C.

LP: 16.7671% Crossroads Hospitality Company, L.L.C.
	Crossroads/Memphis Financing Company,
L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Crossroads/Memphis Partnership, L.P.
	Crossroads/Memphis Financing Company
II, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Crossroads/Memphis Partnership, L.P.
	Crossroads Future Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	99% Crossroads Hospitality Company, L.L.C.

1% Interstate Member, Inc.
	Crossroads Future
Financing Company, L.L.C	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Crossroads Future Company, L.L.C.
	Future Financing Member Corporation	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels & Resorts, Inc.
	Crossroads/Memphis

Financing Corporation	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels & Resorts, Inc.

 

 

	 	 	 	 	 	 	 
	Subsidiary	 	Jurisdiction	 	Principal Place of Business	 	Ownership Interest
	
	 	
	 	
	 	

	Crossroads/Memphis

Financing II Corporation	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels & Resorts, Inc.
	IHC/Moscow Corporation	 	
Delaware
	 	1010 Wisconsin Avenue, N.W.

Washington, DC 20007
	 	100% Interstate Hotels, LLC

 

 

SCHEDULE 4.07

Litigation

	1.	 	Park Cities Hotel LP v. MeriStar Management Co. LLC; District Court of
Dallas County, TX, No. 01-08447.
	 
	 	 	This action was commenced on October 5, 2001 and alleges mismanagement
and breach of contract. A counterclaim was filed in late October,
alleging breach of contract for failure to pay management fees and
reimbursable expenses, and an action by MeriStar to seek repayment of its
loan.
	 
	2.	 	Review by Office of Federal Contract Compliance Programs (OFCCP)
	 
	 	 	Interstate’s corporate office has been involved in an Office of Federal
Contract Compliance Programs (OFCCP) corporate management review since
December 1999. The OFCCP has deemed Interstate to be a federal
government contractor because some of Interstate’s hotels have contracts
with the government that exceed $50,000. The OFCCP requested substantial
information regarding compensation for property officials selected by the
corporate office, specifically, General Managers, Directors of Sales, and
Controllers for various hotels throughout the country.
	 
	 	 	In October 2001, the OFCCP made its preliminary findings of the review,
and determined that the Agency has compensation “concerns” regarding for
certain women and minorities in the GM, DOS and Controller positions at a
sampling of hotels. The OFCCP proposed salary adjustments, back pay and
interest payments to 46 individuals totaling 1.8 million dollars. In
November 2001, the OFCCP issued a formal Notice of Violation outlining
their position.
	 
	 	 	In December 2002, the OFCCP recommended enforcement by the Department of
Labor Solicitor’s office and has forwarded the case file to the
Solicitor’s office for its review. At this time no Administrative
Complaint has been issued by the Solicitor’s office. Interstate’s
counsel has contacted the Solicitor’s office to engage them in discussion
about the resolution of this matter.
	 
	3.	 	Interstate Hotels Corporation (Stanley H. Trezevant, Jr. v. Interstate
Hotels Corporation, Interstate Hotels Corporation #112, Interstate Inns,
Inc., Massachusetts Mutual Life Insurance Company, Interstate/Memphis
Associates, Ltd., Milton Fine, Milton Fine Associates, and Inter Intermass
Memphis Associates, filed August 1, 1994).
	 
	 	 	The plaintiff was a partner with affiliates of the Company in a
partnership (the, “Partnership”) that developed the Memphis Marriott and
ultimately became a joint venture partner with Massachusetts Mutual Life
Insurance Company (“Mass Mutual”). In 1991, the joint venture could not
meet its cash obligations. When the Partnership failed to fulfill its
contribution obligations, Mass Mutual exercised its fights reader the
joint venture agreement to take over the Partnership’s interest in the
hotel. The plaintiff claims that representatives of the Company made
representations to him to the effect that he would not be required to
make capital contributions and, instead, capital contributions

 

 

	 	 	would be made on his behalf by the Company or its affiliates. The
plaintiff also claims that the Company and its affiliates charged
excessive management fees for managing the hotel and has received
reimbursement for certain expenses which the plaintiff alleges were
improper, In February, 2001, the judge in this case granted Mass Mutual’s
motion for summary judgment and dismissed all claims pending against Mass
Mutual. Pending Trezevant’s appeal of that summary judgment. Mass
Mutual participated in a mediation in August, 2001 and settled all of the
appealed claims. The Company has engaged Glanker Brown to represent the
Company and its affiliates in this matter, and, despite the Company’s
participation in the August, 2001 mediation, the claim against the
Company remain outstanding. In addition, pursuant to that certain
Distribution Agreement, dated as of June 18, 1999, by and among Patriot
American Hospitality, Inc., (now known as Wyndham International, Inc.),
Wyndham International, Inc. (“Wyndham”), Interstate Hotels, LLC and
Interstate Hotels Corporation, Wyndham agreed to indemnify the Company
for up to $500,000 of costs, expenses, judgments, settlements and
attorneys’ fees in connection with this matter.
	 
	4.	 	Crossroads Hospitality Company, LLC.
	 
	 	 	The owner of the Surfcomber Hampton Inn in Miami Beach, Florida has filed
with the American Arbitration Association a Demand for Arbitration
alleging a breach of hotel management agreement which the owner
terminated effective September 30, 1999. On August 8, 2000, Crossroads
finally received a specific description of the plaintiff’s claims,
alleging claims for breach of the management agreement as well as for
lost business, including damages of approximately $1.6 million of which
more than $1,000,000 is alleged as lost profits. The owner alleges that,
among other things, Crossroads (a) failed to properly market the hotel;
(b) committed egregious accounting and management errors; and (c)
wrongfully retained a termination fee. Crossroads’ initial response to
the claims was filed August 28, 2000. Crossroads considers these claims
to be invalid and frivolous and intends to vigorously defend them. The
arbitration panel has heard approximately six weeks of argument and
testimony, and recently entered an award in which the panel (x) did not
award to either party attorneys’ fees as the prevailing party and (y)
directed Crossroads to return to the owner of the hotel the $50,000
termination fee retained by Crossroads at the time the owner terminated
the management agreement. In response to this, Crossroads has petitioned
the Florida Circuit Court (11th Circuit) to vacate the award by the
arbitration panel and grant to Crossroads attorneys’ fees and expenses on
the basis that Crossroads prevailed on the substantial issues in the
dispute.
	 
	5.	 	Crossroads/Memphis Partnership, LP Carla J. Manley (Executrix of the
Estate of Kim N. Fisher) v. Damon’s, et al.
	 
	 	 	To comply with Pennsylvania liquor licensing requirements,
Crossroads/Memphis Partnership, L.P, was a joint venturer with an
unaffiliated franchisee of Damon’s, Inc. (which operates a Damon’s
restaurant adjacent to the Hampton Inn). The plaintiff has sued for
damages arising out of the wrongful death of a pedestrian who was struck
and killed by an intoxicated driver who was allegedly served alcoholic
beverages by the Damon’s franchise. Although all of the Crossroads
entities named in the complaint are

 

 

	 	 	entitled to indemnification from the Damon’s franchisee and insurance
coverage for the claim, a punitive damages claim exists.
	 
	6.	 	Sawgrass Country Inn and Suites:
	 
	 	 	On            , 2002, Sawgrass Hotel Partners, Ltd. filed a complaint
in Florida Circuit Court (11th Judicial Circuit) against Crossroads
Hospitality Company, L.L.C. and Interstate Hotels Corporation relating to
the Sawgrass Country Inn and Suites. The action alleges, inter alia,
breach of contract, breach of fiduciary duty, negligent misrepresentation
and breach of implied covenant of good faith and fair dealing.
Crossroads and Interstate have jointly moved the Circuit Court to dismiss
the complaint on the bases of both substantive and procedural defects.
The motion is still pending.

 

 

SCHEDULE 4.14

Environmental Condition

None.

 

 

SCHEDULE 4.15

Legal Requirements; Zoning; Utilities; Access

None.

 

 

SCHEDULE 4.16

Existing Indebtedness and Interest Rate Agreements

	1.	 	Promissory Note, dated      , made by Interstate/Dallas GP, LLC and
Interstate/Dallas Partnership, LP (the “Dallas Pledgors”) in favor of
FelCor Lodging Limited Partnership, in the original principal amount of
$4,170,000, and secured by a pledge of the interests of the Dallas
Pledgors in FCH/IHC Hotels, LP.
	 
	2.	 	IHC Holdings, Inc. loans (unsecured inter-company lending arrangements):
	 
	 	 	Loan Agreement, dated as of September 10, 1999 (the “IHC Loan
Agreement”), among IHC Holdings, Inc., as lender, Interstate Hotels
Corporation, Interstate Hotels Company, Crossroads Hospitality
Management Company and certain other designated subsidiaries, as
borrowers. Currently the borrowers (including the other designated
borrowers) are:

	 	•	 	Interstate Hotels Corporation (no amounts outstanding);
	 
	 	•	 	Interstate Hotels Company (no amounts outstanding);
	 
	 	•	 	Crossroads Hospitality Management Company (no amounts
outstanding);

	 	•	 	Interstate Property Corporation ($375,000 principal amount
outstanding as of 3/28/01);
	 
	 	•	 	Interstate Partner Corporation ($12,000,000 principal amount
outstanding as of 3/28/01);
	 
	 	•	 	Interstate Pittsburgh Hotel Holdings, LLC ($5,700,000
principal amount outstanding as of 3/28/01).

	3.	 	Interest Rate Agreements:

	 	•	 	Sociètè Gènèrale, New York Branch, dated April 10, 2002
– Notional Amount: $30,000,000.
	 
	 	•	 	Credit Lyonnais New York, dated September 17, 2002 –
Notional Amount: $40,000,000.

 

 

SCHEDULE 4.21

Owned Hospitality Properties

Pittsburgh Airport Residence Inn by Marriott

1500 Park Lane

North Fayette Township, Pennsylvania 15275

 

 

SCHEDULE 4.23(A)

Insurance Companies, Insurance Licenses and Deposited Securities

Northridge Insurance Company, a Cayman Islands corporation

	 	•	 	Jurisdictions in which Northridge holds a license to transact
business: Cayman Islands only.
	 
	 	•	 	Lines of insurance in which it is engaged: see Schedule
4.23(e).
	 
	 	•	 	Securities deposited with state insurance departments and
other governmental authorities: None.

 

 

SCHEDULE 4.23(E)

Insurance Contracts and Reinsurance Contracts

	 	 	 
	Policy Type	 	Limit
	
	 	

	Garagekeepers’ Physical Damage	 	
$250,000
	Automobile Physical Damage	 	
$1 million
	Innkeepers Liability DIC	 	
$1 million
	Employment Practices Liability	 	
$25,000 per claim; $250,000 per year
	Financial Indemnity	 	
$650,000
	Property Insurance	 	
$1,700,000
	Punitive Damages	 	
$1 million

 

 

SCHEDULE 4.24

Permitted Housing Business Leasing

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Equal to	 	Greater	 	Equal to	 	 	 	 
	 	 	or less	 	than 1 year	 	or Greater	 	 	 	 
	 	 	than	 	but less	 	than	 	 	 	 
	Market Name	 	1 year	 	than 5	 	5 years	 	Total
	
	 	
	 	
	 	
	 	

	Austin
	 	 	158	 	 	 	—	 	 	 	—	 	 	 	158	 
	Baltimore
	 	 	180	 	 	 	7	 	 	 	—	 	 	 	187	 
	Charlotte
	 	 	151	 	 	 	7	 	 	 	—	 	 	 	158	 
	Chicago
	 	 	188	 	 	 	19	 	 	 	—	 	 	 	207	 
	Cincinnati
	 	 	152	 	 	 	2	 	 	 	—	 	 	 	154	 
	Cleveland
	 	 	145	 	 	 	8	 	 	 	—	 	 	 	153	 
	Columbus
	 	 	159	 	 	 	—	 	 	 	—	 	 	 	159	 
	Dallas
	 	 	126	 	 	 	—	 	 	 	—	 	 	 	126	 
	Detroit
	 	 	80	 	 	 	1	 	 	 	—	 	 	 	81	 
	Louisville
	 	 	91	 	 	 	—	 	 	 	—	 	 	 	91	 
	Memphis
	 	 	166	 	 	 	—	 	 	 	—	 	 	 	166	 
	Milwaukee
	 	 	71	 	 	 	2	 	 	 	—	 	 	 	73	 
	Minneapolis
	 	 	144	 	 	 	6	 	 	 	—	 	 	 	150	 
	National Accounts
	 	 	198	 	 	 	—	 	 	 	—	 	 	 	198	 
	Network Partners
	 	 	153	 	 	 	—	 	 	 	—	 	 	 	153	 
	New York
	 	 	88	 	 	 	3	 	 	 	—	 	 	 	91	 
	Pittsburgh
	 	 	122	 	 	 	1	 	 	 	—	 	 	 	123	 
	Project Team
	 	 	36	 	 	 	1	 	 	 	—	 	 	 	37	 
	Raleigh
	 	 	108	 	 	 	—	 	 	 	—	 	 	 	108	 
	Sunnyvale
	 	 	32	 	 	 	—	 	 	 	—	 	 	 	32	 
	Washington, D.C
	 	 	365	 	 	 	1	 	 	 	—	 	 	 	366	 
	Toronto, Canada
	 	 	290	 	 	 	55	 	 	 	65	 	 	 	410	 
	Bristol, UK
	 	 	26	 	 	 	11	 	 	 	—	 	 	 	37	 
	London, UK
	 	 	138	 	 	 	159	 	 	 	60	 	 	 	357	 
	Manchester, UK
	 	 	31	 	 	 	7	 	 	 	—	 	 	 	38	 
	Newcastle, UK
	 	 	64	 	 	 	3	 	 	 	—	 	 	 	67	 
	South, UK
	 	 	90	 	 	 	4	 	 	 	—	 	 	 	94	 
	Paris, France
	 	 	—	 	 	 	25	 	 	 	—	 	 	 	25	 
	 
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 
	 	 	3,552	 	 	 	322	 	 	 	125	 	 	 	3,999	 
	 
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 

 

 

SECTION 5.07

Insurance

     (a)  Insurance Policies Required. While any obligation of the Borrower or
any Guarantor under any Credit Document remains outstanding, the Borrower shall
procure and maintain or shall cause to be procured and maintained continuously
in effect policies of insurance in form and amounts and issued by companies,
associations or organizations licensed to do business in the states the
Hospitality Properties are located, with a Best’s Rating of no less than A-, XI
and otherwise satisfactory to the Administrative Agent covering such
casualties, risks, perils, liabilities and other hazards required by the
Administrative Agent. All original policies, or certificates thereof, and
endorsements and renewals thereof shall be delivered to and retained by the
Administrative Agent unless the Administrative Agent waives this requirement in
writing. Without limiting the generality of the foregoing, the Borrower shall
provide or cause to be provided the following types of insurance coverage:

		
	 	     i. until repayment of the Notes and satisfaction of all obligations
under the Credit Documents: (i) for Owned Hospitality Properties only,
property insurance on an “all risks” (or “special form”) full replacement
cost basis without deduction for depreciation (or fire, extended coverage
and difference in conditions basis), including flood, earthquake (for any
Hospitality Property located in the State of California, or in any other
location that, according to determination by a Governmental Authority,
has an above average risk of seismic activity) and sinkhole coverages in
an amount equal to the replacement cost of the Improvements (except for
earthquake insurance which for each required Hospitality Property shall
be in an amount which is equal to or greater than the maximum probable
loss determined pursuant to a written report by a seismic engineer, which
report and engineer are acceptable to the Administrative Agent, provided,
however, that the aggregate amount of such earthquake insurance coverage
and the deductibles thereunder may be modified at the request of the
Borrower based upon industry standards, subject to approval of the
Administrative Agent); (ii) Commercial General Liability Insurance
(including contractual liability, owners and contractors protective
coverages, products & completed operations, personal & advertising injury
liability, fire damage legal liability and alienated premises coverage)
and Comprehensive Auto Liability Insurance in a minimum amount of
$25,000,000 each occurrence; (iii) Statutory Workers’ Compensation and
Employer’s Liability Insurance in the minimum amounts of $500,000 each
accident, $500,000 each employee -  disease, $500,000 policy limit -
disease; and (iv) for Owned Hospitality Properties only, Rent loss
insurance against loss of income by reason of any hazard covered under
the insurance required under this subparagraph (a) in an amount
sufficient to avoid any co-insurance penalty, but in any event for not
less than one (1) year’s income from all sources from the Hospitality
Property. Each such policy of property insurance shall contain a
replacement cost endorsement and such other endorsements as are
sufficient to prevent the Borrower, the Administrative Agent and/or the
Borrower’s Subsidiaries from becoming a co-insurer with respect to such
buildings and improvements.

		
	 	     ii. During the renovation or expansion of any Hospitality Property
the Borrower will (i) additionally provide: for Owned Hospitality
Properties only, Builder’s

 

 

		
	 	Risk Insurance on an “all risks” (or “special form”) and
non-reporting basis including flood, earthquake (if required pursuant to
the provisions of and in the amount stated in clause (a)) and sinkhole
coverages, and also including stored materials and materials while in
transit, and (ii) in addition to the Statutory Workers’ Compensation and
Employer’s Liability Insurance required of the Borrower in the foregoing
paragraph i, require each contractor and or subcontractor who may have
occasion to be at the job site to provide evidence of Statutory Workers’
Compensation and Employer’s Liability Insurance in the minimum amounts of
$100,000 each accident, $100,000 each employee - disease, $100,000 policy
limit - disease.

		
	 	     iii. Such additional insurance as may be reasonably required by the
Administrative Agent from time to time in the event that any Hospitality
Property is exposed to hazards and risks with respect to which the
Administrative Agent deems the existing insurance inadequate to properly
protect its interests.

     All policies of liability insurance shall name the Administrative Agent,
the Lenders and their respective directors, officers, representatives, agents
and employees (the “Lenders’ Parties”) as additional insureds. The Borrower
shall furnish the Administrative Agent with a certified copy of an original or
a certificate of insurance of all policies of insurance required. All policies
or certificates, as the case may be, of insurance shall set forth the coverage,
the limits of liability, the name of the carrier, the policy number, and the
period of coverage. In addition, all policies of insurance required under the
terms hereof shall contain an endorsement or agreement by the insurer that any
loss shall be payable in accordance with the terms of such policy
notwithstanding any act or negligence of the Borrower, or any other party
holding under any such Person which might otherwise result in a forfeiture of
said insurance and the further agreement of the insurer waiving all rights of
setoff, counterclaim or deductions against the Borrower. At least 15 days
prior to the expiration of each required policy, the Borrower shall deliver to
the Administrative Agent evidence of the renewal or replacement of such policy,
continuing such insurance in the form as required by this Agreement. All such
policies shall contain a provision that notwithstanding any contrary agreement
between the Borrower and the applicable insurance company, such policies will
not be canceled, allowed to lapse without renewal, surrendered or amended
(which provision shall include any reduction in the scope or limits of
coverage) without at least 15 days’ prior written notice to the Administrative
Agent.exv10w12w1

 

EXHIBIT 10.12.1

AMENDMENT

     This AMENDMENT to the EXECUTIVE EMPLOYMENT AGREEMENT effective as of
November 1, 2001, (“Employment Agreement”), by and among MeriStar Hotels &
Resorts, Inc. (the “Company”), MeriStar Management Company L.L.C. (the “LLC”),
and Paul W. Whetsell (the “Executive”), is hereby entered into on this 31st day
of July, 2002 by and among the parties.

     For good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged by Executive, the Company, and the LLC, the parties
each agree to amend the Employment Agreement as follows:

     Section 6(h)(v) of the Employment Agreement is hereby amended as follows:

(v)  A Change of Control; provided that a Change of Control shall only
constitute Good Reason if (i) the Executive terminates this Agreement within
the six month period following a Change of Control, (ii) the Company terminates
the Executive within two years following a Change of Control or (iii) the
Company changes the Executive’s job title, responsibilities or decreases
Executive’s compensation within two years following a Change of Control and
Executive within six months after such change (but not later than two years
following the Change of Control) terminates the Term of this Agreement. This
Section 6(h)(v) shall not be triggered, however, by the merger between
Interstate Hotels Corporation and MeriStar Hotels & Resorts, Inc. that occurred
on August 1, 2002.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment
effective as of the date first above written.

	 	 	 	 
	EXECUTIVE:	 	
MERISTAR HOTELS & RESORTS, INC.
	 
	By:__________________	 	 	
By:__________________
	 
	Paul W. Whetsell	 	 	
Name:
	 	 	 	
Title:
	 	 	
MERISTAR MANAGEMENT COMPANY, LLC

By:  MeriStar Hotels & Resorts, Inc.,

its general partner
	 
	 	 	 	
By:__________________
	 	 	 	
Name:
	 	 	 	
Title:

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