Document:

EXHIBIT 10.4
                              INNKEEPERS USA TRUST

                            1994 SHARE INCENTIVE PLAN

                           AMENDED AND RESTATED AS OF
                                FEBRUARY 3, 1997

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                                TABLE OF CONTENTS

ARTICLE I              DEFINITIONS

         1.01.         Acquiring Person...........................  1
         1.02.         Administrator..............................  1
         1.03.         Affiliate..................................  1
         1.04.         Agreement..................................  1
         1.05.         Associate..................................  1
         1.06.         Board......................................  1
         1.07.         Cause......................................  2
         1.08.         Change of Control..........................  2
         1.09.         Code.......................................  3
         1.10.         Committee..................................  3
         1.11.         Company....................................  3
         1.12.         Continuing Trustee.........................  3
         1.13.         Control Affiliate..........................  3
         1.14.         Control Change Date........................  3
         1.15.         Corresponding SAR..........................  3
         1.16.         Disability.................................  3
         1.17.         Dividend Equivalent Right Performance
                          Measures................................  4
         1.18.         Dividend Equivalent Right Performance
                          Period..................................  4
         1.19.         Exchange Act...............................  5
         1.20.         Fair Market Value..........................  5
         1.21.         Incentive Award............................  5
         1.22.         Initial Value..............................  5
         1.23.         Option.....................................  5
         1.24.         Participant................................  5
         1.25.         Performance Award..........................  6
         1.26.         Performance Shares.........................  6
         1.27.         Person.....................................  7
         1.28.         Plan.......................................  7
         1.29.         Related Entity.............................  7
         1.30.         SAR........................................  7
         1.31.         Share Award................................  8
         1.32.         Shares.....................................  8

ARTICLE II             PURPOSES...................................  8

ARTICLE III            ADMINISTRATION

ARTICLE IV             ELIGIBILITY................................ 10

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ARTICLE V              SHARES SUBJECT TO PLAN

         5.01.         Shares Issued.............................. 11
         5.02.         Aggregate Limit............................ 11
         5.03.         Reallocation of Shares..................... 11

ARTICLE VI             OPTIONS

         6.01.         Award...................................... 12
         6.02.         Option Price............................... 12
         6.03.         Maximum Option Period...................... 12
         6.04.         Nontransferability......................... 13
         6.05.         Transferable Options....................... 13
         6.06.         Employee Status............................ 14
         6.07.         Exercise................................... 14
         6.08.         Payment.................................... 15
         6.09.         Performance Awards......................... 15
         6.10.         Change of Control.......................... 15
         6.11.         Shareholder Rights......................... 15
         6.12.         Disposition of Shares...................... 15

ARTICLE VII            SARS

         7.01.         Award...................................... 16
         7.02.         Maximum SAR Period......................... 16
         7.03.         Nontransferability......................... 17
         7.04.         Transferable SARs.......................... 17
         7.05.         Exercise................................... 17
         7.06          Change of Control.......................... 18
         7.07.         Employee Status............................ 18
         7.08.         Settlement................................. 18
         7.09.         Shareholder Rights......................... 19

ARTICLE VIII           SHARE AWARDS

         8.01.         Award...................................... 19
         8.02.         Vesting.................................... 19
         8.03.         Performance Objectives..................... 19
         8.04.         Employee Status............................ 20
         8.05.         Change of Control.......................... 20
         8.06.         Shareholder Rights......................... 20

ARTICLE IX             PERFORMANCE SHARE AWARDS................... 21

         9.01.         Award...................................... 21

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         9.02.         Earning the Award.......................... 21
         9.03.         Payment.................................... 22
         9.04.         Shareholder Rights......................... 22
         9.05.         Nontransferability......................... 22
         9.06.         Transferable Performance Shares............ 23
         9.07.         Employee Status............................ 23
         9.08.         Change of Control.......................... 23

ARTICLE X              INCENTIVE AWARDS

         10.01.        Award...................................... 24
         10.02.        Terms and Conditions....................... 24
         10.03.        Nontransferability......................... 25
         10.04.        Transferable Incentive Awards.............. 25
         10.05.        Employee Status............................ 25
         10.06.        Change of Control.......................... 26
         10.07.        Shareholder Rights......................... 26

ARTICLE XI             INDEMNIFICATION............................ 26

ARTICLE XII            ADJUSTMENT UPON CHANGE IN SHARES........... 27

ARTICLE XIII           COMPLIANCE WITH LAW AND
                       APPROVAL OF REGULATORY BODIES.............. 28

ARTICLE XIV            GENERAL PROVISIONS

         14.01.        Effect on Employment and Service........... 29
         14.02.        Unfunded Plan.............................. 29
         14.03.        Rules of Construction...................... 30

ARTICLE XV             AMENDMENT.................................. 30

ARTICLE XVI            DURATION OF PLAN........................... 31

ARTICLE XVII           EFFECTIVE DATE OF PLAN..................... 31

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                              INNKEEPERS USA TRUST
                            1994 SHARE INCENTIVE PLAN

                                    ARTICLE I

                                   DEFINITIONS

1.01.    ACQUIRING PERSON means that a Person, considered alone or together with
all Control Affiliates and Associates of that Person, is or becomes directly or
indirectly the beneficial owner of securities representing at least thirty
percent (30%) of the Company's then outstanding securities entitled to vote
generally in the election of the Board.

1.02.    ADMINISTRATOR means the Committee and any delegate of the Committee
that is appointed in accordance with Article III.

1.03.    AFFILIATE means any "subsidiary" or "parent" corporation (within the
meaning of Section 424 of the Code) of the Company.

1.04.    AGREEMENT means a written agreement (including any amendment or
supplement thereto) between the Company and a Participant specifying the terms
and conditions of a Share Award, an award of Performance Shares, an Incentive
Award or an Option or SAR granted to such Participant.

1.05.    ASSOCIATE, with respect to any Person, is defined in Rule 12b-2 of the
General Rules and Regulations under the Exchange Act, as amended as of January
1, 1990. An Associate does not include the Company or a majority-owned
subsidiary of the Company.

1.06.    BOARD means the Board of Trustees of the Company.

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1.07.    CAUSE, with respect to a Participant, means (i) "Cause" as defined in
an Agreement with the Participant; or, if the Agreement does not contain a
definition of "Cause", (ii) "Cause" as defined in the employment agreement, as
in effect from time to time, between the Company and the Participant; or, if the
agreement described in subsection (ii) does not contain a definition of "Cause"
or there is no such agreement, (iii) "Cause" as defined in the employment
agreement, as in effect from time to time, between the Company and the Company's
Chief Executive Officer; or, if the agreement described in subsection (iii) does
not contain a definition of "Cause" or there is no such agreement, (iv)
Participant's being convicted of a felony involving theft, embezzlement or
misappropriation of the Company's property.

1.08.    CHANGE OF CONTROL means that (i) a Person is or becomes an Acquiring
Person; (ii) a Person enters into an agreement that would result in that
Person's becoming an Acquiring Person; (iii) the Company enters into any
agreement with a Person that involves the transfer of at least fifty percent
(50%) of the Company's total assets on a consolidated basis, as reported in the
Company's consolidated financial statements filed with the Securities and
Exchange Commission; (iv) the Company enters into any agreement to merge or
consolidate the Company or to effect a statutory share exchange with another
Person, regardless of whether the Company is intended to be the surviving or
resulting entity after the merger, consolidation, or statutory share exchange;
or (v) the Continuing Trustees cease for any reason to constitute a majority of
the Board.

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1.09.    CODE means the Internal Revenue Code of 1986, and any amendments
thereto.

1.10.    COMMITTEE means the Compensation Committee of the Board.

1.11.    COMPANY means Innkeepers USA Trust.

1.12.    CONTINUING TRUSTEE means any member of the Board, while a member of the
Board and (i) who was a member of the Board prior to March 1, 1997 or (ii) whose
nomination for or election to the Board was recommended or approved by a
majority of the Continuing Trustees.

1.13.    CONTROL AFFILIATE, with respect to any Person, means an affiliate as
defined in Rule 12b-2 of the General Rules and Regulations under the Exchange
Act, as amended as of January 1, 1990.

1.14.    CONTROL CHANGE DATE means the date on which a Change of Control occurs.
If a Change of Control occurs on account of a series of transactions, the
"Control Change Date" is the date of the last of such transactions.

1.15.    CORRESPONDING SAR means an SAR that is granted in relation to a
particular Option and that can be exercised only upon the surrender to the
Company, unexercised, of that portion of the Option to which the SAR relates.

1.16.    DISABILITY, with respect to a Participant, means a complete physical or
mental inability, confirmed by an independent licensed physician, to perform
substantially all of the services required by the Participant's employment
contract or required of an employee with Participant's job description
immediately before

                                       -3-

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Participant first became unable to perform those services, that continues for a
period of 240 consecutive days.

1.17.    DIVIDEND EQUIVALENT RIGHT PERFORMANCE MEASURES shall mean those
measures of the Company's, an Affiliate's or a Participant's performance over
the Dividend Equivalent Right Performance Period established by the
Administrator with respect to a particular Performance Award. If no Dividend
Equivalent Right Performance Measures are specified in an Agreement that
provides for a Performance Award, then Dividend Equivalent Right Performance
Measures shall mean achievement of a fifteen percent (15%) annual compounded
increase in the fair market value of an investment in Shares during the Dividend
Equivalent Right Performance Period, assuming all dividends payable with respect
to such investment are reinvested in Shares.

1.18.    DIVIDEND EQUIVALENT RIGHT PERFORMANCE PERIOD shall mean the period in
which Dividend Equivalent Right Performance Measures are measured that is
established by the Administrator with respect to a particular Performance Award.
If no Dividend Equivalent Right Performance Period is specified in an Agreement
that provides for a Performance Award, then Dividend Equivalent Right
Performance Period shall mean the five year period beginning on the later of the
date of grant of the Option to which the Performance Award relates or the date
of grant of the Performance Award; provided, however, that, in the absence of
contrary provisions in an Agreement, a Dividend Equivalent Right Performance
Period shall end on the earliest of (i) a Control Change Date or (ii) with
respect to a Participant to whom a

                                       -4-

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Performance Award has been granted, the date that such Participant's employment
with the Company terminates due to his death or Disability or is terminated by
the Company without Cause.

1.19.    EXCHANGE ACT means the Securities Exchange Act of 1934, as amended and
as in effect from time to time.

1.20.    FAIR MARKET VALUE means, on any given date, the closing price of a
Share as reported on the New York Stock Exchange composite tape on such date, or
if the Shares were not traded on the New York Stock Exchange on such date, then
on the next preceding day that the Shares were traded on such exchange, all as
reported by such source as the Administrator may select.

1.21.    INCENTIVE AWARD means an award which, subject to such terms and

conditions as may be prescribed by the Administrator, entitles the Participant
to receive a cash payment from the Company or an Affiliate.

1.22.    INITIAL VALUE means, with respect to an SAR, the Fair Market Value of
one Share on the date of grant.

1.23.    OPTION means a share option that entitles the holder to purchase from
the Company a stated number of Shares at the price set forth in an Agreement. In
the discretion of the Administrator and if provided in an Agreement, an Option
may include a Performance Award.

1.24.    PARTICIPANT means an employee of the Company or an Affiliate, including
an employee who is a member of the Board, who satisfies the requirements of
Article IV and is selected by the Administrator to receive a Share Award, an
award of

                                       -5-

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Performance Shares, an Option, an SAR, an Incentive Award or a combination
thereof.

1.25.    PERFORMANCE AWARD means the right, awarded in tandem with a newly
granted or outstanding Option, to receive a cash payment for all dividends that
would have been paid on each Share for which the related Option is exercised,
without interest or compounding, during the period from the date of grant of the
Option (or, if later, that date of grant of the Performance Award) through the
date that the Option is exercised for such Share, had such Share been
outstanding throughout that period. A Performance Award will be earned only if
the Dividend Equivalent Performance Measures have been satisfied for the
Dividend Equivalent Right Performance Period and only if Participant is employed
on the day preceding the last day of the Dividend Equivalent Right Performance
Period.

1.26.    PERFORMANCE SHARES means an award, in the amount determined by the
Administrator and specified in an Agreement, stated with reference to a
specified number of Shares, that in accordance with the terms of an Agreement
entitles the holder to receive a cash payment or Shares or a combination
thereof. In the discretion of the Administrator, a Performance Share award may
include the right to receive an additional payment for all dividends that would
have been paid on each specified Share, without interest or compounding, from
the date of grant through the date of settlement of the Performance Share award.
A Participant will be entitled to such a payment only if the performance
criteria that must be satisfied for the Performance Share award to be earned are
met and only to the extent the award is settled in Shares.

                                       -6-

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1.27.    PERSON means any human being, firm, corporation, partnership, or other
entity. Person also includes any human being, firm, corporation, partnership, or
other entity as defined in Sections 13(d)(3) and 14(d)(2) of the Exchange Act,
as amended as of January 1, 1990. The term Person does not include the Company
or any Related Entity, and the term Person does not include any employee-benefit
plan maintained by the Company or by any Related Entity, and any person or
entity organized, appointed, or established by the Company or by any subsidiary
for or pursuant to the terms of any such employee-benefit plan, unless the Board
determines that such an employee- benefit plan or such person or entity is a
Person.

1.28.    PLAN means the Innkeepers USA Trust 1994 Share Incentive Plan.

1.29.    RELATED ENTITY means any entity that is part of a controlled group of
corporations or is under common control with the Company within the meaning of
Code Section 1563(a), 414(b) or 414(c).

1.30.    SAR means a Share appreciation right that in accordance with the terms
of an Agreement entitles the holder to receive, with respect to each Share
encompassed by the exercise of such SAR, the amount determined by the
Administrator and specified in an Agreement. In the absence of such a
determination, the holder shall be entitled to receive, with respect to each
Share encompassed by the exercise of such SAR, the excess of the Fair Market
Value on the date of exercise over the Initial Value. References to "SARs"
include both Corresponding SARs and SARs granted independently of Options,
unless the context requires otherwise.

1.31.    SHARE AWARD means Shares awarded to a Participant under Article VIII.

                                       -7-

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1.32.    SHARES means the common shares of the Company.

                                   ARTICLE II

                                    PURPOSES

         The Plan is intended to assist the Company and its Affiliates in
recruiting and retaining individuals with ability and initiative by enabling
such persons to participate in the future success of the Company and its
Affiliates and to associate their interests with those of the Company and its
shareholders. The Plan is intended to permit the grant of both Options
qualifying under Section 422 of the Code ("incentive share options") and Options
not so qualifying, and the grant of SARs, Share Awards, Performance Awards,
Performance Shares and Incentive Awards. No Option that is intended to be an
incentive share option shall be invalid for failure to qualify as an incentive
share option. The proceeds received by the Company from the sale of Shares
pursuant to this Plan shall be used for general corporate purposes.

                                       -8-

<PAGE>

                                   ARTICLE III

                                 ADMINISTRATION

         The Plan shall be administered by the Administrator. The Administrator
shall have authority to grant Share Awards, Performance Awards, Performance
Shares, Incentive Awards, Options and SARs upon such terms (not inconsistent
with the provisions of this Plan), as the Administrator may consider
appropriate. Such terms may include conditions (in addition to those contained
in this Plan), on the exercisability of all or any part of an Option or SAR or
on the transferability or forfeitability of a Share Award, a Performance Award,
an award of Performance Shares or an Incentive Award. Notwithstanding any such
conditions, the Administrator may, in its discretion, (i) accelerate the time at
which any Option or SAR may be exercised, or the time at which a Share Award may
become transferable or nonforfeitable or the time at which an Incentive Award or
award of Performance Shares may be settled or (ii) suspend the forfeiture of any
award made under this Plan. In addition, the Administrator shall have complete
authority to interpret all provisions of this Plan; to prescribe the form of
Agreements; to adopt, amend, and rescind rules and regulations pertaining to the
administration of the Plan; and to make all other determinations necessary or
advisable for the administration of this Plan. The express grant in the Plan of
any specific power to the Administrator shall not be construed as limiting any
power or authority of the Administrator. Any decision made, or action taken, by
the Administrator or in connection with the administration of this Plan shall

                                       -9-

<PAGE>

be final and conclusive. Neither the Administrator nor any member of the
Committee shall be liable for any act done in good faith with respect to this
Plan or any Agreement, Option, SAR, Performance Award, Share Award, Incentive
Award or award of Performance Shares. All expenses of administering this Plan
shall be borne by the Company.

         The Committee, in its discretion, may delegate to one or more officers
of the Company all or part of the Committee's authority and duties with respect
to grants and awards to individuals who are not subject to the reporting and
other provisions of Section 16 of the Exchange Act. The Committee may revoke or
amend the terms of a delegation at any time but such action shall not invalidate
any prior actions of the Committee's delegate or delegates that were consistent
with the terms of the Plan.

                                   ARTICLE IV

                                   ELIGIBILITY

         Any employee of the Company or an Affiliate (including a corporation
that becomes an Affiliate after the adoption of this Plan), is eligible to
participate in this Plan if the Administrator, in its sole discretion,
determines that such person has contributed significantly or can be expected to
contribute significantly to the profits or growth of the Company or an
Affiliate. Trustees of the Company who are employees of the Company or an
Affiliate may be selected to participate in this Plan.

                                      -10-

<PAGE>

                                    ARTICLE V

                             SHARES SUBJECT TO PLAN

5.01.    SHARES ISSUED. Upon the award of Shares pursuant to a Share Award or in
settlement of an award of Performance Shares, the Company may issue Shares from
its authorized but unissued Shares. Upon the exercise of any Option or SAR, the
Company may deliver to the Participant (or the Participant's broker if the
Participant so directs), Shares from its authorized but unissued Shares.

5.02.    AGGREGATE LIMIT. The maximum aggregate number of Shares that may be
issued under this Plan pursuant to the exercise of SARs and Options and the
grant of Share Awards and the settlement of Performance Shares is 2,700,000
Shares. The maximum aggregate number of Shares that may be issued under this
Plan as Share Awards and in settlement of Performance Shares is 900,000 Shares.
The maximum aggregate number of Shares that may be issued under this Plan and
the maximum number of Shares that may be issued as Share Awards and in
settlement of Performance Shares shall be subject to adjustment as provided in
Article XII.

5.03.    REALLOCATION OF SHARES. If an Option is terminated, in whole or in
part, for any reason other than its exercise or the exercise of a Corresponding
SAR that is settled with Shares, the number of Shares allocated to the Option or
portion thereof may be reallocated to other Options, SARs, Performance Shares
and Share Awards to be granted under this Plan. If an SAR is terminated, in
whole or in part, for any

                                      -11-

<PAGE>

reason other than its exercise that is settled with Shares or the exercise of a
related Option, the number of Shares allocated to the SAR or portion thereof may
be reallocated to other Options, SARs, Performance Shares and Share Awards to be
granted under this Plan. If an award of Performance Shares is terminated, in
whole or in part, for any reason other than its settlement with Shares, the
number of Shares allocated to the Performance Shares or portion thereof may be
reallocated to other Options, SARs, Performance Shares and Share Awards to be
granted under this Plan. If a Share Award is forfeited, in whole or in part, for
any reason, the number of Shares allocated to the Share Award or portion thereof
may be reallocated to other Options, SARs, Performance Shares and Share Awards
to be granted under this Plan.

                                   ARTICLE VI

                                     OPTIONS

6.01.    AWARD. In accordance with the provisions of Article IV, the
Administrator will designate each individual to whom an Option is to be granted
and will specify the number of Shares covered by such awards; provided, however,
that no individual may be granted Options in any calendar year covering more
than 750,000 Shares.

6.02.    OPTION PRICE. The price per share for Shares purchased on the exercise
of an Option shall be determined by the Administrator on the date of grant, but
shall not be less than the Fair Market Value on the date the Option is granted.

6.03.    MAXIMUM OPTION PERIOD. The maximum period in which an Option may be
exercised shall be determined by the Administrator on the date of grant, except
that

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no Option that is an incentive share option shall be exercisable after the
expiration of ten years from the date such Option was granted. The terms of any
Option that is an incentive share option may provide that it is exercisable for
a period less than such maximum period.

6.04.    NONTRANSFERABILITY. Except as provided in Section 6.05, each Option
granted under this Plan shall be nontransferable except by will or by the laws
of descent and distribution. In the event of any transfer of an Option (by the
Participant or his transferee), the Option and any Corresponding SAR that
relates to such Option must be transferred to the same person or persons or
entity or entities. Except as provided in Section 6.05, during the lifetime of
the Participant to whom the Option is granted, the Option may be exercised only
by the Participant. No right or interest of a Participant in any Option shall be
liable for, or subject to, any lien, obligation, or liability of such
Participant.

6.05.    TRANSFERABLE OPTIONS. Section 6.04 to the contrary notwithstanding, if
the Agreement provides, an Option that is not an incentive share option may be
transferred by a Participant to the Participant's children, grandchildren,
spouse, one or more trusts for the benefit of such family members or a
partnership in which such family members are the only partners, on such terms
and conditions as may be permitted under Securities Exchange Commission Rule
16b-3 as in effect from time to time. The holder of an Option transferred
pursuant to this Section shall be bound by the same terms and conditions that
governed the Option during the period that it was held by the Participant;
provided, however, that such transferee may not transfer

                                      -13-

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the Option except by will or the laws of descent and distribution. In the event
of any transfer of an Option (by the Participant or his transferee), the Option
and any Corresponding SAR that relates to such Option must be transferred to the
same person or persons or entity or entities.

6.06.    EMPLOYEE STATUS. For purposes of determining the applicability of
Section 422 of the Code (relating to incentive share options), or in the event
that the terms of any Option provide that it may be exercised only during
employment or within a specified period of time after termination of employment,
the Administrator may decide to what extent leaves of absence for governmental
or military service, illness, temporary disability, or other reasons shall not
be deemed interruptions of continuous employment.

6.07.    EXERCISE. Subject to the provisions of this Plan and the applicable
Agreement, an Option may be exercised in whole at any time or in part from time
to time at such times and in compliance with such requirements as the
Administrator shall determine; provided, however, that incentive share options
(granted under the Plan and all plans of the Company and its Affiliates) may not
be first exercisable in a calendar year for Shares having a Fair Market Value
(determined as of the date an Option is granted) exceeding $100,000. An Option
granted under this Plan may be exercised with respect to any number of whole
Shares less than the full number for which the Option could be exercised. A
partial exercise of an Option shall not affect the right to exercise the Option
from time to time in accordance with this Plan and the applicable Agreement with
respect to the remaining Shares subject to the Option. The

                                      -14-

<PAGE>

exercise of an Option shall result in the termination of any Corresponding SAR
to the extent of the number of Shares with respect to which the Option is
exercised.

6.08.    PAYMENT. Subject to rules established by the Administrator and unless
otherwise provided in an Agreement, payment of all or part of the Option price
may be made in cash, a cash equivalent acceptable to the Administrator, or with
Shares which have been owned by the Participant for at least six months and
which have not been used for another exercise during the prior six months. If
Shares are used to pay all or part of the Option price, the sum of the cash and
cash equivalent and the Fair Market Value (determined as of the day preceding
the date of exercise) of the Shares surrendered must not be less than the Option
price of the Shares for which the Option is being exercised.

6.09.    PERFORMANCE AWARDS. If an Option Agreement includes a Performance
Award, the Participant shall be entitled to the payment (if any) that is due
thereunder within 30 days after the later of: (i) with respect to each Share for
which the Option is exercised, the date the Option is exercised for such Shares,
and (ii) the last day of the applicable Dividend Equivalent Right Performance
Period.

6.10.    CHANGE OF CONTROL. Section 6.07 to the contrary notwithstanding, each
outstanding Option shall be fully exercisable (in whole or in part at the
discretion of the holder) on and after a Control Change Date.

6.11.    SHAREHOLDER RIGHTS. No Participant shall have any rights as a
shareholder with respect to Shares subject to his Option until the date of
exercise of such Option.

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<PAGE>

6.12.    DISPOSITION OF SHARES. A Participant shall notify the Company of any
sale or other disposition of Shares acquired pursuant to an Option that was an
incentive share option if such sale or disposition occurs (i) within two years
of the grant of an Option or (ii) within one year of the issuance of Shares to
the Participant. Such notice shall be in writing and directed to the Secretary
of the Company.

                                   ARTICLE VII

                                      SARS

7.01.    AWARD. In accordance with the provisions of Article IV, the
Administrator will designate each individual to whom SARs are to be granted and
will specify the number of Shares covered by such awards; provided, however,
that no individual may be granted SARs in any calendar year covering more than
750,000 Shares. For purposes of the preceding sentence, an Option and
Corresponding SAR shall be treated as a single award. In addition no Participant
may be granted Corresponding SARs (under all incentive share option plans of the
Company and its Affiliates) that are related to incentive share options which
are first exercisable in any calendar year for Shares having an aggregate Fair
Market Value (determined as of the date the related Option is granted) that
exceeds $100,000.

7.02.    MAXIMUM SAR PERIOD. The term of each SAR shall be determined by the
Administrator on the date of grant, except that no Corresponding SAR that is
related

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to an incentive share option shall have a term of more than ten years from the
date such related Option was granted. The terms of any Corresponding SAR that is
related to an incentive share option may provide that it has a term that is less
than such maximum period.

7.03.    NONTRANSFERABILITY. Except as provided in Section 7.04, each SAR
granted under this Plan shall be nontransferable except by will or by the laws
of descent and distribution. In the event of any such transfer, a Corresponding
SAR and the related Option must be transferred to the same person or persons or
entity or entities. During the lifetime of the Participant to whom the SAR is
granted, the SAR may be exercised only by the Participant. No right or interest
of a Participant in any SAR shall be liable for, or subject to, any lien,
obligation, or liability of such Participant.

7.04.    TRANSFERABLE SARS. Section 7.03 to the contrary notwithstanding, if the
Agreement provides, an SAR, other than a Corresponding SAR that is related to an
incentive share option, may be transferred by a Participant to the Participant's
children, grandchildren, spouse, one or more trusts for the benefit of such
family members or a partnership in which such family members are the only
partners, on such terms and conditions as may be permitted under Securities
Exchange Commission Rule 16b-3 as in effect from time to time. The holder of an
SAR transferred pursuant to this Section shall be bound by the same terms and
conditions that governed the SAR during the period that it was held by the
Participant; provided, however, that such transferee may not transfer the SAR
except by will or the laws of descent and distribution. In the event of any
transfer of a Corresponding SAR (by the Participant

                                      -17-

<PAGE>

or his transferee), the Corresponding SAR and the related Option must be
transferred to the same person or person or entity or entities.

7.05.    EXERCISE. Subject to the provisions of this Plan and the applicable
Agreement, an SAR may be exercised in whole at any time or in part from time to
time at such times and in compliance with such requirements as the Administrator
shall determine; provided, however, that a Corresponding SAR that is related to
an incentive share option may be exercised only to the extent that the related
Option is exercisable and only when the Fair Market Value exceeds the option
price of the related Option. An SAR granted under this Plan may be exercised
with respect to any number of whole Shares less than the full number for which
the SAR could be exercised. A partial exercise of an SAR shall not affect the
right to exercise the SAR from time to time in accordance with this Plan and the
applicable Agreement with respect to the remaining Shares subject to the SAR.
The exercise of a Corresponding SAR shall result in the termination of the
related Option to the extent of the number of Shares with respect to which the
SAR is exercised.

7.06     CHANGE OF CONTROL. Section 7.05 to the contrary notwithstanding, each
outstanding SAR shall be fully exercisable (in whole or in part at the
discretion of the holder) on and after a Control Change Date.

7.07.    EMPLOYEE STATUS. If the terms of any SAR provide that it may be
exercised only during employment or within a specified period of time after
termination of employment, the Administrator may decide to what extent leaves of
absence for

                                      -18-

<PAGE>

governmental or military service, illness, temporary disability or other reasons
shall not be deemed interruptions of continuous employment.

7.08.    SETTLEMENT. At the Administrator's discretion, the amount payable as a
result of the exercise of an SAR may be settled in cash, Shares, or a
combination of cash and Shares. No fractional Share will be deliverable upon the
exercise of an SAR but a cash payment will be made in lieu thereof.

7.09.    SHAREHOLDER RIGHTS. No Participant shall, as a result of receiving an
SAR award, have any rights as a shareholder of the Company or any Affiliate
until the date that the SAR is exercised and then only to the extent that the
SAR is settled by the issuance of Shares.

                                  ARTICLE VIII

                                  SHARE AWARDS

8.01.    AWARD. In accordance with the provisions of Article IV, the
Administrator will designate each individual to whom a Share Award is to be made
and will specify the number of Shares covered by such awards; provided, however,
that no Participant may receive Share Awards in any calendar year for more than
150,000 Shares.

8.02.    VESTING. The Administrator, on the date of the award, may prescribe
that a Participant's rights in a Share Award shall be forfeitable or otherwise
restricted for a period of time or subject to such conditions as may be set
forth in the Agreement.

                                      -19-

<PAGE>

8.03.    PERFORMANCE OBJECTIVES. In accordance with Section 8.02, the
Administrator may prescribe that Share Awards will become vested or transferable
or both based on objectives stated with respect to the Company's return on
equity, total earnings, earnings per Share, earnings growth, return on capital,
return on assets, Fair Market Value, Share price appreciation, funds from
operations growth, or such other measures as may be selected by the
Administrator. If the Administrator, on the date of award, prescribes that a
Share Award shall become nonforfeitable and transferable only upon the
attainment of performance objectives, the Shares subject to such Share Award
shall become nonforfeitable and transferable only to the extent that the
Administrator certifies that such objectives have been achieved.

8.04.    EMPLOYEE STATUS. In the event that the terms of any Share Award provide
that Shares may become transferable and nonforfeitable thereunder only after
completion of a specified period of employment, the Administrator may decide in
each case to what extent leaves of absence for governmental or military service,
illness, temporary disability, or other reasons shall not be deemed
interruptions of continuous employment.

8.05.    CHANGE OF CONTROL. Sections 8.02, 8.03 and 8.04 to the contrary
notwithstanding, each outstanding Share Award shall be transferable and
nonforfeitable on and after a Control Change Date.

8.06.    SHAREHOLDER RIGHTS. Prior to their forfeiture (in accordance with the
applicable Agreement and while the Shares granted pursuant to the Share Award
may be forfeited or are nontransferable), a Participant will have all rights of
a shareholder

                                      -20-

<PAGE>

with respect to a Share Award, including the right to receive dividends and vote
the Shares; provided, however, that during such period (i) a Participant may not
sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of Shares
granted pursuant to a Share Award, (ii) the Company shall retain custody of the
certificates evidencing Shares granted pursuant to a Share Award, and (iii) the
Participant will deliver to the Company a Share power, endorsed in blank, with
respect to each Share Award. The limitations set forth in the preceding sentence
shall not apply after the Shares granted under the Share Award are transferable
and are no longer forfeitable.

                                   ARTICLE IX

                            PERFORMANCE SHARE AWARDS

9.01.    AWARD. In accordance with the provisions of Article IV, the
Administrator will designate each individual to whom an award of Performance
Shares is to be made and will specify the number of Shares covered by such
awards; provided, however, that no Participant may receive an award of
Performance Shares in any calendar year for more than 150,000 Shares.

9.02.    EARNING THE AWARD. The Administrator, on the date of the grant of an
award, shall prescribe that the Performance Shares, or portion thereof, will be
earned, and the Participant will be entitled to receive payment pursuant to the
award of Performance Shares, only upon the satisfaction of performance
objectives and such other criteria as may be prescribed by the Administrator
during a performance measurement period of at least one year. The performance
objectives may be stated

                                      -21-

<PAGE>

with respect to the Company's return on equity, total earnings, earnings per
Share, earnings growth, return on capital, return on assets, Fair Market Value,
Share price appreciation, funds from operations growth, or such other measures
as may be selected by the Administrator. No payments will be made with respect
to Performance Shares unless, and then only to the extent that, the
Administrator certifies that such objectives have been achieved.

9.03.    PAYMENT. In the discretion of the Administrator, the amount payable
when an award of Performance Shares is earned may be settled in cash, by the
issuance of Shares or a combination thereof. A Participant's rights in any
Shares issued in settlement of a Performance Share award may be forfeited or
otherwise restricted for a period of time or subject to such conditions as the
Administrator may prescribe. A fractional Share shall not be deliverable when an
award of Performance Shares is earned, but a cash payment will be made in lieu
thereof.

9.04.    SHAREHOLDER RIGHTS. No Participant shall, as a result of receiving an
award of Performance Shares, have any rights as a shareholder until and to the
extent that the award of Performance Shares is earned and settled in Shares. If
the Agreement so provides, a Participant may receive a cash payment equal to the
dividends that are payable with respect to the number of Shares covered by the
award between the date the Performance Shares are awarded and the date Shares
are issued pursuant to the Performance Share award. After an award of
Performance Shares is earned and settled in Shares, a Participant will have all
the rights of a shareholder as described in Section 8.06.

                                      -22-

<PAGE>

9.05.    NONTRANSFERABILITY. Except as provided in Section 9.06, Performance
Shares granted under this Plan shall be nontransferable except by will or by the
laws of descent and distribution. No right or interest of a Participant in any
Performance Shares shall be liable for, or subject to, any lien, obligation, or
liability of such Participant.

9.06.    TRANSFERABLE PERFORMANCE SHARES. Section 9.05 to the contrary
notwithstanding, if the Agreement provides, an award of Performance Shares may
be transferred by a Participant to the Participant's children, grandchildren,
spouse, one or more trusts for the benefit of such family members or a
partnership in which such family members are the only partners, on such terms
and conditions as may be permitted under Securities Exchange Commission Rule
16b-3 as in effect from time to time. The holder of Performance Shares
transferred pursuant to this Section shall be bound by the same terms and
conditions that governed the Performance Shares during the period that they were
held by the Participant; provided, however that such transferee may not transfer
Performance Shares except by will or the laws of descent and distribution.

9.07.    EMPLOYEE STATUS. In the event that the terms of any Performance Share
Award provide that no payment will be made unless the Participant completes a
stated period of employment, the Administrator may decide to what extent leaves
of absence for government or military service, illness, temporary disability, or
other reasons shall not be deemed interruptions of continuous employment.

                                      -23-

<PAGE>

9.08.    CHANGE OF CONTROL. Sections 9.02 to the contrary notwithstanding, on
and after a Control Change Date, each outstanding Performance Share award shall
be earned as of a Control Change Date. To the extent the Agreement provides that
the Performance Share award will be settled with Shares, such Shares shall be
nonforfeitable and transferable as of the Control Change Date.

                                    ARTICLE X

                                INCENTIVE AWARDS

10.01.   AWARD. The Administrator shall designate Participants to whom Incentive
Awards are made. All Incentive Awards shall be finally determined exclusively by
the Administrator under the procedures established by the Administrator;
provided, however, that no Participant may receive an Incentive Award payment in
any calendar year that exceeds the lesser of (i) $300,000 and (ii) 150% of the
Participant's base salary (prior to any salary reduction or deferral elections)
as of the date of grant of the Incentive Award.

10.02.   TERMS AND CONDITIONS. The Administrator, at the time an Incentive Award
is made, shall specify the terms and conditions which govern the award. Such
terms and conditions shall prescribe that the Incentive Award shall be earned
only upon, and to the extent that, performance objectives are satisfied. The
performance objectives may be stated with respect to the Company's return on
equity, total earnings, earnings

                                      -24-

<PAGE>

per Share, earnings growth, return on capital, return on assets, Fair Market
Value, Share price appreciation, funds from operations growth, or such other
measures as may be selected by the Administrator. Such terms and conditions also
may include other limitations on the payment of Incentive Awards including, by
way of example and not of limitation, requirements that the Participant complete
a specified period of employment with the Company or an Affiliate. The
Administrator, at the time an Incentive Award is made, shall also specify when
amounts shall be payable under the Incentive Award and whether amounts shall be
payable in the event of the Participant's death, disability, or retirement.

10.03.   NONTRANSFERABILITY. Except as provided in Section 10.04, Incentive
Awards granted under this Plan shall be nontransferable except by will or by the
laws of descent and distribution. No right or interest of a Participant in an
Incentive Award shall be liable for, or subject to, any lien, obligation, or
liability of such Participant.

10.04.   TRANSFERABLE INCENTIVE AWARDS. Section 10.03 to the contrary
notwithstanding, if provided in an Agreement, an Incentive Award may be
transferred by a Participant to the Participant's children, grandchildren,
spouse, one or more trusts for the benefit of such family members or to a
partnership in which such family members are the only partners, on such terms
and conditions as may be permitted by Securities Exchange Commission Rule 16b-3
as in effect from time to time. The holder of an Incentive Award transferred
pursuant to this Section shall be bound by the same terms and conditions that
governed the Incentive Award during the period

                                      -25-

<PAGE>

that it was held by the Participant; provided, however, that such transferee may
not transfer the Incentive Award except by will or the laws of descent and
distribution.

10.05.   EMPLOYEE STATUS. If the terms of an Incentive Award provide that a
payment will be made thereunder only if the Participant completes a stated
period of employment, the Administrator may decide to what extent leaves of
absence for governmental or military service, illness, temporary disability or
other reasons shall not be deemed interruptions of continuous employment.

10.06.   CHANGE OF CONTROL. Section 10.02 to the contrary notwithstanding, any
Incentive Award shall be earned in its entirety as of a Control Change Date.

10.07.   SHAREHOLDER RIGHTS. No Participant shall, as a result of receiving an
Incentive Award, have any rights as a shareholder of the Company or any
Affiliate on account of such award.

                                   ARTICLE XI

                                 INDEMNIFICATION

         A Participant shall be entitled to a payment under this Article XI if
(a) any benefit, payment, accelerated exercisability or vesting or other right
under this Plan constitutes a "parachute payment" (as defined in Code Section
280G(b)(2)(A), but without regard to Code Section 280G(b)(2)(A)(ii)), with
respect to such Participant and (b) the Participant incurs a liability under
Code Section 4999. The amount payable to a Participant described in the
preceding sentence shall be the amount required to indemnify the Participant and
hold him harmless from the application of

                                      -26-

<PAGE>

Code Sections 280G and 4999. To effect this indemnification, the Company must
pay such Participant an amount sufficient to pay the excise tax imposed on
Participant under Code Section 4999 with respect to benefits, payments,
accelerated exercisability and vesting and other rights under this Plan and any
other plan or agreement, and any income, employment, hospitalization, excise or
other taxes attributable to the indemnification payment. The benefit payable
under this Article XI shall be paid in a single cash sum not later than twenty
days after the date (or extended filing date) on which the tax return reflecting
liability for the Code Section 4999 excise tax is required to be filed with the
Internal Revenue Service.

                                   ARTICLE XII

                        ADJUSTMENT UPON CHANGE IN SHARES

         The maximum number of Shares as to which Options, SARs, Performance
Shares and Share Awards may be granted under this Plan, the terms of outstanding
Share Awards, Options, Performance Shares, Incentive Awards, and SARs, and the
per individual limitations on the number of Shares or for which Options, SARs,
Performance Shares, and Share Awards may be granted shall be adjusted as the
Committee shall determine to be equitably required in the event that (i) the
Company (a) effects one or more Share dividends, Share split-ups, subdivisions
or consolidations of shares or (b) engages in a transaction to which Section 424
of the Code applies or (ii) there occurs any other event which, in the judgment
of the

                                      -27-

<PAGE>

Committee necessitates such action. Any determination made under this Article XI
by the Committee shall be final and conclusive.

         The issuance by the Company of shares of any class, or securities
convertible into shares of any class, for cash or property, or for labor or
services, either upon direct sale or upon the exercise of rights or warrants to
subscribe therefor, or upon conversion of shares or obligations of the Company
convertible into such shares or other securities, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the maximum number
of shares as to which Options, SARs, Performance Shares and Share Awards may be
granted, the per individual limitations on the number of Shares for which
Options, SARs, Performance Shares and Share Awards may be granted or the terms
of outstanding Share Awards, Options, Performance Shares, Incentive Awards or
SARs.

         The Committee may make Share Awards and may grant Options, SARs,
Performance Shares, and Incentive Awards in substitution for performance shares,
phantom shares, share awards, stock options, stock appreciation rights, or
similar awards held by an individual who becomes an employee of the Company or
an Affiliate in connection with a transaction described in the first paragraph
of this Article XII. Notwithstanding any provision of the Plan (other than the
limitation of Section 5.02), the terms of such substituted Share Awards or
Option, SAR, Performance Shares or Incentive Award grants shall be as the
Committee, in its discretion, determines is appropriate.

                                      -28-

<PAGE>

                                  ARTICLE XIII

                             COMPLIANCE WITH LAW AND
                          APPROVAL OF REGULATORY BODIES

         No Option or SAR shall be exercisable, no Shares shall be issued, no
certificates for Shares shall be delivered, and no payment shall be made under
this Plan except in compliance with all applicable federal and state laws and
regulations (including, without limitation, withholding tax requirements), any
listing agreement to which the Company is a party, and the rules of all domestic
stock exchanges on which the Company's shares may be listed. The Company shall
have the right to rely on an opinion of its counsel as to such compliance. Any
share certificate issued to evidence Shares when a Share Award is granted, a
Performance Share is settled or for which an Option or SAR is exercised may bear
such legends and statements as the Administrator may deem advisable to assure
compliance with federal and state laws and regulations. No Option or SAR shall
be exercisable, no Share Award or Performance Share shall be granted, no Shares
shall be issued, no certificate for Shares shall be delivered, and no payment
shall be made under this Plan until the Company has obtained such consent or
approval as the Administrator may deem advisable from regulatory bodies having
jurisdiction over such matters.

                                      -29-

<PAGE>

                                   ARTICLE XIV

                               GENERAL PROVISIONS

14.01.   EFFECT ON EMPLOYMENT AND SERVICE. Neither the adoption of this Plan,
its operation, nor any documents describing or referring to this Plan (or any
part thereof), shall confer upon any individual any right to continue in the
employ or service of the Company or an Affiliate or in any way affect any right
and power of the Company or an Affiliate to terminate the employment or service
of any individual at any time with or without assigning a reason therefor.

14.02.   UNFUNDED PLAN. The Plan, insofar as it provides for grants, shall be
unfunded, and the Company shall not be required to segregate any assets that may
at any time be represented by grants under this Plan. Any liability of the
Company to any person with respect to any grant under this Plan shall be based
solely upon any contractual obligations that may be created pursuant to this
Plan. No such obligation of the Company shall be deemed to be secured by any
pledge of, or other encumbrance on, any property of the Company.

14.03.   RULES OF CONSTRUCTION. Headings are given to the articles and sections
of this Plan solely as a convenience to facilitate reference. The reference to
any statute, regulation, or other provision of law shall be construed to refer
to any amendment to or successor of such provision of law.

                                      -30-

<PAGE>

                                   ARTICLE XV

                                    AMENDMENT

         The Board may amend or terminate this Plan from time to time; provided,
however, that no amendment may become effective until shareholder approval is
obtained if (i) the amendment increases the aggregate number of Shares that may
be issued under the Plan or (ii) the amendment changes the class of individuals
eligible to become Participants. No amendment shall, without a Participant's
consent, adversely affect any rights of such Participant under any outstanding
Share Award, Performance Share Award, Option, SAR, Performance Award or
Incentive Award outstanding at the time such amendment is made.

                                      -31-

<PAGE>

                                   ARTICLE XVI

                                DURATION OF PLAN

         No Share Award, Performance Share Award, Option, SAR, Performance Award
or Incentive Award may be granted under this Plan after December 31, 2006. Share
Awards, Performance Share awards, Options, SARs, Performance Awards and
Incentive Awards granted before that date shall remain valid in accordance with
their terms.

                                  ARTICLE XVII

                             EFFECTIVE DATE OF PLAN

         Options, SARs, Performance Awards, Share Awards, Performance Shares and
Incentive Awards may be granted under this Plan upon its adoption by the Board;
provided that, unless this Plan is approved by a majority of the votes cast by
the Company's shareholders, voting either in person or by proxy, at a duly held
shareholders' meeting at which a quorum is present, (i) no Option granted on or
after February 3, 1997 shall be exercisable or effective to the extent its grant
would cause the maximum aggregate number of Shares issuable hereunder to exceed
800,000, and (ii) no SAR, Share Award, Performance Award, Performance Shares or
Incentive Award granted on or after February 3, 1997 shall be exercisable or
effective.

                                      -32-

<PAGE>

                 AMENDMENTS APPROVED AT 2000 SHAREHOLDER MEETING

               PROPOSAL TWO -- AMENDMENT OF 1994 PLAN TO INCREASE

             NUMBER OF SHARES AUTHORIZED FOR ISSUANCE UNDER THE PLAN

         GENERAL. The Board of Trustees is proposing for approval by
Shareholders an amendment to the 1994 Plan to increase the number of Common
Shares issuable under the 1994 Plan. The Board believes that the amendment
further the Board's philosophy of closely aligning the interests of the
Company's shareholders and management and using incentive based compensation to
encourage and reward performance. The amendment will permit the Company to
continue to emphasize compensation with a value directly tied to Company goals
and performance. The Board of Trustees believes that the amendment to the 1994
Plan will enable the Company to maintain a total compensation program which
combines salary, bonuses and long-term share incentive awards to encourage
management strategies and action that will continue to build shareholder value.
For these reasons, the Company recommends a vote FOR Proposal Two.

         As amended, the 1994 Plan will provide that a maximum of 3,700,000
Common Shares may be issued, up to 1,200,000 of which may be issued as
restricted share awards and in settlement of performance shares. As currently in
effect, the maximum number of Common Shares that may be issued is 2,700,000, up
to 900,000 of which may be issued as restricted share awards and in settlement
of performance shares.

         The following paragraphs summarize the principal features of the 1994
Plan. This summary is subject, in all respects, to the terms of the 1994 Plan.
The Company will provide promptly, upon request and without charge, a copy of
the full text of the 1994 Plan to each person to whom a copy of this proxy
statement is delivered. Requests should be directed to Investor Relations, 306
Royal Poinciana Plaza, Palm Beach, Florida 33480. The Company's telephone number
is (561) 835-1800. The Company's Investor Relations department may also be
contacted through the Company's website at www.innkeepersusa.com

                                      -33-

<PAGE>

         ADMINISTRATION. The 1994 Plan is administered by the Compensation
Committee, although the Compensation Committee may delegate its authority and
responsibilities under the 1994 Plan to one or more officers of the Company. The
Compensation Committee may not, however, delegate its authority with respect to
grants and awards to individuals subject to Section 16 of the Securities
Exchange Act of 1934. As used in this summary, the term "Administrator" means
the Compensation Committee or its delegate, as appropriate. The Administrator
generally has the authority, within limitations described in the 1994 Plan, (i)
to establish rules and policies concerning the 1994 Plan, (ii) to determine the
persons to whom share options, share appreciation rights ("SARs"), restricted
Common Shares, cash incentive awards and performance shares may be granted,
(iii) to fix the number of Common Shares to be covered by each award and the
value of incentive awards, and (iv) to set the terms of each award. Each type of
award is described below.

         ELIGIBILITY. Each employee of the Company, or an Affiliate (as defined
in the 1994 Plan), including an employee who is a member of the Board, is
eligible to participate in the 1994 Plan. The Administrator selects the
individuals who will participate in the 1994 Plan ("Participants") but no person
may participate in the 1994 Plan while he is a member of the Compensation
Committee. Under the 1994 Plan, no Participant may be granted, in any calendar
year, options for more than 750,000 Common Shares or SARs for more than 750,000
Common Shares. Options granted with related SARs shall be treated as a single
award for purposes of applying the limitation in the preceding sentence. Also,
under the 1994 Plan, no Participant may be granted, in any calendar year, an
award of more than 150,000 restricted shares or an award of more than 150,000
performance shares. In addition, no Participant may receive a cash incentive
award payment in any calendar year that exceeds the lesser of (i) $300,000 and
(ii) 150% of the Participant's base salary (prior to any salary reduction or
deferral election) as of the date of grant of the incentive award.

         OPTIONS. Options granted under the 1994 Plan may be incentive share
options ("ISOs") or nonqualified options. An option entitles a Participant to
purchase Common Shares from the Company at

                                      -34-

<PAGE>

the option price. The option price may be paid in cash, with Common Shares, or
with a combination of cash and Common Shares. The option price is fixed by the
Administrator at the time the option is granted, but the price cannot be less
than the shares' fair market value on the date of grant. No Participant may be
granted ISOs or related SARs (under all incentive share option plans of the
Company and its affiliates) which are first exercisable in any calendar year for
shares having an aggregate fair market value (determined as of the date the ISO
was granted) that exceeds $100,000. The term of an ISO cannot exceed ten years.

         The Administrator may also grant performance based dividend equivalent
rights ("Performance Awards") in tandem with newly granted or outstanding
options. A Performance Award entitles a Participant to receive a cash payment
for all dividends that would have been paid on each Common Share for which the
related option is exercised, during the period from the date of grant of the
option (or, if later, the date of grant of the Performance Award) through the
exercise date or dates of the option, had each such Common Share been held by
the Participant throughout that period. A Performance Award will vest only if
the performance measures designated by the Administrator are satisfied for the
period designated by the Administrator. In the absence of any such designation,
(i) the performance period will be the five year period beginning on the date of
grant; provided, however, that the performance period will end on such earlier
date on which (a) a Change of Control (as defined below) occurs, (b) the
Participant's employment is terminated by the Company without cause or (c) the
Participant's employment ceases due to death or disability, and (ii) the measure
of performance will be achievement of a 15% annual compounded increase in the
fair market value of an investment in Common Shares during the performance
period, assuming all dividends paid are reinvested in Common Shares. Settlement
of a Performance Award will be made on the last day of the performance period
or, if later, the exercise date or dates of the option, provided that a
Participant is an employee of the Company at the end of the performance period.

         If provided in the option agreement, the Administrator may grant
nonqualified share options that are transferable to a Participant's spouse,
children or grandchildren, to trusts for the benefit of such

                                      -35-

<PAGE>

persons, or to partnerships in which those persons are the only partners, on
such terms and conditions as may be permitted under Securities and Exchange
Commission Rule 16b-3 from time to time. The option will continue to be subject
to the same terms and conditions following the transfer, and no such transferee
may transfer the option other than by will or the laws of descent and
distribution. An option and any Corresponding SAR (defined below) that relates
to the option must be transferred to the same persons or entities.

         SARS. SARs may be granted under the 1994 Plan in relation to option
grants ("Corresponding SARs") or independently of option grants. The difference
between these two types of SARs is that to exercise a Corresponding SAR, the
Participant must surrender unexercised that portion of the option to which the
Corresponding SAR relates. SARs entitle the Participant to receive a payment
based on a formula determined by the Administrator and set forth in an agreement
with the Participant. In the absence of such a determination, the Participant is
entitled to receive the excess of the fair market value of a Common Share on the
date of exercise over the initial value of the SAR. The initial value of an SAR
that is granted independently of an option is the fair market value of a Common
Share on the date of grant. The initial value of a Corresponding SAR is the
option price per share of the related option. The amount payable upon the
exercise of an SAR may be paid in cash, Common Shares, or a combination of the
two. If the 1994 Plan amendments are approved, and if provided in the SAR
agreement, the Administrator may also grant SARs that are transferable, subject
to the same general conditions described above under "Options."

         RESTRICTED SHARE AWARDS. Under the 1994 Plan, Participants may be
awarded restricted shares. A Participant's rights in a restricted share award
are nontransferable or forfeitable or both unless certain conditions prescribed
by the Administrator, in its discretion, are satisfied. These conditions may
include, for example, a requirement that the Participant continue employment
with the Company for a specified period or that the Company or the Participant
achieve stated, performance-related objectives such as earnings per share, fair
market value, return on assets, the Company's return on equity, total

                                      -36-

<PAGE>

earnings, earnings growth, return on capital, Common Share price appreciation,
funds from operations growth, or other objectives. In cases where conditions on
vesting are performance-related, the vesting period shall be one year. In all
other cases, vesting will not occur sooner than three years after the award
date. These minimum vesting periods apply to restricted share awards granted
after June 19, 1997; except that the Company may grant restricted share awards
for up to ten percent of the aggregate number of shares authorized under the
1994 Plan that do not contain the minimum vesting periods.

         PERFORMANCE SHARE AWARDS. The 1994 Plan also provides for the award of
performance shares. A performance share award entitles the Participant to
receive a payment equal to the fair market value of a specified number of Common
Shares if certain standards are met. The Administrator prescribes the
requirements that must be satisfied before a performance share award is earned.
Those standards may be based on the fair market value of the Common Shares,
return on assets, earnings per share, the Company's return on equity, total
earnings, earnings growth, return on capital, Common Share price appreciation,
funds from operations growth, or other objectives. To the extent that
performance shares are earned, the obligation may be settled in cash, in Common
Shares (including restricted shares), or by a combination of the two. The period
in which performance is measured must be at least one year. The Administrator
may also award performance shares that include dividend equivalent rights. The
rights will entitle a Participant to receive a cash payment for accumulated
dividends that would have been paid during the period described in the following
sentence, without interest or compounding, on the number of Common Shares for
which the performance share award is settled. The payment is determined over the
period from the date of grant through the date of settlement of the performance
share award, and is paid only to the extent that the performance criteria which
must be satisfied for the performance share award to be earned are met. If
provided in the performance shares agreement, the Administrator may also grant
performance shares that are transferable, subject to the same general conditions
described above under "Options."

                                      -37-

<PAGE>

         INCENTIVE AWARDS. A Participant may also receive a cash incentive award
that will be earned if stated performance objectives and any other conditions
prescribed by the Administrator are met. Performance objectives may be stated
with respect to the Company's return on equity, total earnings, earnings growth,
return on capital, Common Share price appreciation, funds from operations growth
or other measures that the Administrator selects. The Administrator may also
provide in an incentive award agreement that the award is transferable, subject
to the same general conditions described above under "Options."

         CHANGE OF CONTROL AND OTHER ACCELERATION EVENTS. All options, SARs,
share awards, performance shares and incentive awards, including outstanding
awards, will be exercisable, vested or earned upon a "Change of Control" of the
Company (as defined below). In addition, in the event a Participant incurs an
excise tax under Code section 4999, and any payment under the 1994 Plan is
deemed a "parachute payment" under that Code section, the Company will indemnify
the Participant for his excise tax liability, including additional excise,
income and employment taxes incurred as a result of the initial indemnification
payment. Under the amended 1994 Plan, "Change of Control" means the occurrence
of one of the following events: (i) any person or entity (other than certain
entities related to the Company prior to the occurrence of the Change of
Control), together with any associate or affiliate of the person or entity (as
those terms are used in Rule 12b-2 under the Securities Exchange Act of 1934)
acquires or enters into an agreement for acquisition of beneficial ownership of
at least thirty percent (30%) of the Company's then outstanding securities
entitled to vote generally in the election of the Board; (ii) the Company enters
into any agreement with a person or entity that involves a transfer of at least
fifty percent (50%) of the Company's total assets on a consolidated basis, as
reported in the Company's consolidated financial statements filed with the
Securities and Exchange Commission; (iii) the Company enters into any agreement
to merge or consolidate the Company or to effect a statutory share exchange with
another entity, regardless of whether the Company is intended to be the
surviving or resulting entity after the merger, consolidation or statutory share
exchange; or (iv) the Continuing Trustees cease for any reason to constitute a
majority of the Board. For this purpose, "Continuing Trustee" means any member
of the

                                      -38-

<PAGE>

Board, while a member of the Board and (i) who was a member of the Board on
March 1, 1997 or (ii) whose nomination for or election or appointment to the
Board was recommended or approved by a majority of the Continuing Trustees.

         SHARE AUTHORIZATION. All awards made under the 1994 Plan are evidenced
by written agreements between the Company and the Participant. A maximum of
2,700,000 Common Shares may be issued under the 1994 Plan as currently in
effect. The maximum aggregate number of Common Shares that may be issued
currently under the 1994 Plan pursuant to an award of restricted shares and in
full or partial settlement of an award of performance shares is 900,000 Common
Shares. These share limitations and the terms of outstanding awards will be
adjusted, as the Compensation Committee deems appropriate, in the event of a
share dividend, share split, combination, reclassification, recapitalization or
other similar event. If the 1994 Plan amendments are approved by the Company's
shareholders, the maximum number of Common Shares issuable under the 1994 Plan
will be increased to 3,700,000. The maximum number of Common Shares issuable as
restricted share awards and in full or partial settlement of awards of
performance shares will increase to 1,200,000.

         TERMINATION AND AMENDMENT. No option, SAR, share award, performance
shares, or incentive award may be granted under the 1994 Plan after December 31,
2006. The Board may amend or terminate the 1994 Plan at any time, but an
amendment will not become effective without shareholder approval if the
amendment changes the eligibility requirements, increases the maximum number of
Common Shares that may be issued, or materially increases the benefits that may
be provided to Participants under the 1994 Plan.

         AWARDS. To date, the Company has granted awards under the 1994 Plan
covering a total of 2,675,938 Common Shares to executive officers as a group. Of
that total, the Company has granted Options to purchase 2,037,500 Common Shares,
and has granted restricted share awards for 638,438 Common Shares.

                                      -39-

<PAGE>

         Except for the foregoing awards and those already outstanding, neither
the number of individuals who will be selected to participate in the 1994 Plan
nor the type or size of awards that will be approved by the Compensation
Committee can be determined.

         FEDERAL INCOME TAXES. The Company has been advised by counsel regarding
the federal income tax consequences of the 1994 Plan. No income is recognized by
a Participant at the time an option is granted. If the option is an ISO, no
income will be recognized upon the Participant's exercise of the option. Income
is recognized by a Participant when he disposes of shares acquired under an ISO.
The exercise of a nonqualified share option generally is a taxable event that
requires the Participant to recognize, as ordinary income, the difference
between the shares' fair market value and the option price. No income is
recognized upon the grant of an SAR. The exercise of an SAR generally is a
taxable event. A Participant generally must recognize income equal to any cash
that is paid and the fair market value of Common Shares that are received in
settlement of an SAR. A Participant will recognize income on account of a
restricted share award on the first day that the shares are either transferable
or not subject to a substantial risk of forfeiture. The amount of income
recognized by the Participant is equal to the fair market value of the Common
Shares received on that date. A Participant will recognize income on account of
the settlement of a performance share award. A Participant will recognize income
equal to any cash that is paid and the fair market value of Common Shares (on
the date that the shares are first transferable or not subject to a substantial
risk of forfeiture) that are received in settlement of the award. No income is
recognized on the grant of a Performance Award or an incentive award. A
Participant will recognize income on settlement of a Performance Award or
incentive award equal to the amount of cash for which the award is settled. The
employer (either the Company or its Affiliate) will be entitled to claim a
federal income tax deduction on account of the exercise of a nonqualified option
or an SAR, the vesting of a share award and the settlement of a performance
share award, a Performance Award, or an incentive award. The amount of the
deduction is equal to the ordinary income recognized by the Participant. The
employer will not be entitled to a federal income tax deduction on account of
the grant or the exercise of

                                      -40-

<PAGE>

an ISO. The employer may claim a federal income tax deduction on account of
certain dispositions of Common Shares acquired upon the exercise of an ISO.

         Unless a shareholder specifies otherwise, each shareholder's shares
represented by the enclosed proxy will be voted FOR approval of the amendments
to the 1994 Plan.

                                      -41-

<PAGE>

                   MINUTES OF THE ANNUAL SHAREHOLDERS' MEETING

                                       OF

                              INNKEEPERS USA TRUST

                                   MAY 4, 2000

         The Annual Meeting of Shareholders of Innkeepers USA Trust (the
"Company") was called to order at 9:00 a.m., local time, on Thursday, May 4,
2000 at the Courtyard by Marriott, 2440 W. Cypress Creek Road, Ft. Lauderdale,
Florida 33309, pursuant to notice of the annual meeting mailed to shareholders
on or about March 31, 2000. Jeffrey H. Fisher, Chairman of the Board, served as
Chairman of the meeting. Mark A. Murphy was appointed to serve as Secretary of
the meeting. Mr. Fisher called the meeting to order and welcomed shareholders
and other guests.

         Mr. Murphy, Secretary, reported on mailing of the notice of the meeting
and the presence of a quorum. He also reported that a list of shareholders
entitled to vote at the meeting had been available at the Company's headquarters
for ten days prior to the meeting for examination by any shareholder desiring to
do so. A copy of the Notice of the Meeting is filed as a part of these minutes.
Mr. Murphy reported that immediately prior to the commencement of the meeting a
total of 32,461,873 of the Company's voting common shares were present in person
or by proxy. This constitutes approximately 93.6% of the outstanding voting
shares of the Company.

         The Chairman then declared a quorum present at the meeting and
appointed Mr. Murphy as Inspector of Elections for the meeting. Mr. Fisher
thanked the shareholders who returned their proxies.

         The next item of business was the election of two Class III trustees
each to serve until the 2003 annual meeting of shareholders or until their
successors are duly elected and qualified. The Chairman introduced himself,
Thomas J. Crocker and Rolf E. Ruhfus, nominees for Class III trustees. Upon
motion from the floor, duly seconded, it was moved that Jeffrey H. Fisher,
Thomas J. Crocker and Rolf E. Ruhfus be nominated for election as Class III
trustees to serve until the annual meeting of shareholders in 2003. There being
no other nominations, the Chairman declared the nominations closed.

         The next item of business was a proposal to amend the 1994 Share
Incentive Plan to increase by 1 million the number of shares authorized for
issuance under the plan. Upon a motion from the floor, duly seconded, it was
moved that the proposed amendment to the 1994 Share Incentive Plan be approved.

         The Chairman then made remarks with respect to the 1999 fiscal year
results and other matters. The Chairman also answered questions from the floor.
The Chairman asked those shareholders voting in person to mark their ballots.

         The Chairman asked the Inspector of Elections to report on voting. Mr.
Murphy reported the following results of balloting: (1) for the election of the
Class III trustees (a) 30,936,232 shares were voted in favor of Mr. Jeffrey H.
Fisher, and 1,525,649 shares withheld authority to vote for Mr. Fisher, (b)
32,085,913 shares were voted in favor of Mr. Thomas J. Crocker, and 375,959
shares withheld authority to vote for Mr. Crocker and (c) 32,084,439 shares were
voted in favor of Mr. Rolf E. Ruhfus, and 377,433 shares withheld authority for
Mr. Ruhfus, and (2) with respect to the proposed amendment to the 1994 Share
Incentive Plan, 30,516,531 share were voted in favor of the proposed amendment,
1,712,805 shares were voted against the proposed amendment, and 232,535 shares
abstained from voting.

<PAGE>

         The Chairman then declared that (a) Jeffrey H. Fisher, Thomas J.
Crocker and Rolf E. Ruhfus had been elected to serve as Class III trustees until
the annual meeting of shareholders in 2003 or until their successors are duly
elected and qualified and (b) the proposal to amend the 1994 Share Incentive
Plan had been approved by the shareholders.

         There being no further questions, the Chairman thanked shareholders who
attended the meeting in person as well as those who submitted their proxies, and
declared the meeting to be adjourned.

                                              ----------------------------------
                                                 Jeffrey H. Fisher, Chairman

                                              ----------------------------------
                                                       Mark A. Murphy
                                                  Secretary of the MeetingEXHIBIT 10.6(a)

                              EMPLOYMENT AGREEMENT
                          BETWEEN INNKEEPERS USA TRUST
                              AND JEFFREY H. FISHER

           THIS EMPLOYMENT AGREEMENT effective February 1, 1997, between
INNKEEPERS USA TRUST, a Maryland real estate investment trust (the "Company"),
and JEFFREY H. FISHER (the "Executive"), recites and provides as follows:

                              W I T N E S S E T H:

           WHEREAS, the Company is a self-advised equity real estate investment
trust which has been formed to own hotel properties (the "Hotel") directly and
through its subsidiaries; and

           WHEREAS, the Company desires to employ the Executive to devote
substantially all of his time (as defined in paragraph 4 hereunder) to the
business of the Company and to serve as the Chairman of the Board, Chief
Executive Officer and President of the Company; and

           WHEREAS, the Executive desires to be so employed on the terms and
subject to the conditions hereinafter stated.

           NOW, THEREFORE, in consideration of the premises and mutual
obligations hereinafter set forth, the parties agree as follows:

           1. RECITALS. The above recitals are incorporated by reference herein
and made a part hereof as set forth verbatim.

           2. EMPLOYMENT. The Company shall employ the Executive, and the
Executive agrees to be so employed, in the capacity of Chairman of the Board,
Chief Executive Officer and President of the Company to serve for the Term (as
hereinafter defined) hereof, subject to earlier termination as hereinafter
provided.

           3. TERM. The term of the Executive's employment hereunder (the
"Term") shall be for a period of five (5) years commencing on February 1, 1997,
and continuing until December 31, 2002, unless terminated earlier as provided
herein. If neither the Company nor the Executive has provided the other with
written notice of an intention to terminate this Agreement at least thirty (30
days before the end of the Term (or any subsequent renewal period), this
Agreement will automatically renew for successive twelve (12) month periods.

<PAGE>

           4. SERVICES. The Executive shall devote 100% of his time, attention
and effort to the Company's affairs. The Executive shall have full authority and
responsibility, subject to the general direction, approval and control of the
Board of Trustees for formulating policies and administering the Company in all
respects.

           5. COMPENSATION.

              (a) BASE SALARY. During the Term, the Company shall pay the
Executive for his services an annual Base Salary equal to $150,000.00, subject
to any increases approved by the Company's Board of Trustees and an automatic
annual adjustment based on any increase in the United States Consumer Price
Index for Wage Earners & Clerical Workers, United States Average, All Items
(1982-1984) (the "CPI") plus five percent (5%). The initial CPI adjustment shall
occur on January 1, 1998 and shall be based upon the percentage increase in the
CPI since January 1, 1997 (plus five percent (5%)). Subsequent adjustments shall
occur on January 1 of each year based on the percentage increase in the CPI
since the last adjustment date (plus five percent (5%)). The Executive's Base
Salary shall be also subject to such inreases as may be approved by the
Company's Baord of Trustees, in its sole discretion. Such Base Salary shall be
paid in twenty-six (26) bi-installments. Any increase in Base Salary shall not
serve to limit or reduce any other obligations to the Executive under this
Agreement.

              (b) ANNUAL BONUS. In addition to the annual Base Salary in Section
5(a) above, the Executive shall be entitled to a cash bonus, payable on or
before April 1 of the following year determined as follows: the Executive shall
be entitled to receive a cash bonus equal to 7.5% of any increase in Funds From
Operations (as defined below, "FFO") of Innkeepers USA Trust for the year over
the previous year. The maximum cash bonus payable to the Executive pursuant to
this Section 5(b) shall be equal to 100% of the annual Base Salary described in
Section 5(a) above. For the purposes of this Section 5(b), FFO will mean net
income (loss) computed in accordance with generally accepted accounting
principals, excluding gains (or losses) from debt restructuring and sales of
property, plus real estate depreciation and amortization, and after adjustments
for unconsolidated partnerships and joint ventures, as the same may be adjusted
from time to time by the National Association of Real Estate Investment Trusts.

                                       -2-

<PAGE>

              (c) STOCK OPTIONS. In addition to the Base Salary and Annual Bonus
indicated in (a) and (b) above, the Executive's compensation shall include any
and all stock options presently outstanding or granted by the Company in the
future.

           6. BENEFITS. The Company agrees to provide the Executive with the
following benefits:

              (a) VACATION. The Executive shall be entitled each year to a
vacation, during which time his compensation shall be paid in full. The time
allotted for such vacation shall be an aggregate three (3) weeks. In the year
Executive terminates employment, he shall be entitled to receive a prorated paid
vacation based upon the amount of time that he has worked during the year of
termination. In the event that he has not taken his vacation time computed on a
prorated basis, he shall be paid, at his regular rate of pay, for unused
vacation. In the event Executive has taken more vacation time than allotted for
the year of termination, there shall be no reduction in compensation otherwise
payable hereunder.

              (b) EMPLOYEE BENEFITS. During the Term of this Agreement, the
Executive and/or the Executive's family, as the case may be, shall be entitled
to all rights, benefits and privileges to which other management level employees
of the Company are entitled, including, but not limited to, any retirement,
pension, profit-insurance, hospital, or other plans which may now be in effect
or which may hereafter be adopted by the Company. Regarding life insurance, the
Executive shall have the right to name the beneficiary of such life insurance
policy.

           7. EXPENSES. The Company recognizes that the Executive will have to
incur certain out-of-pocket expenses, including, but not limited to travel
expenses, related to his services and the Company's business, and the Company
agrees to promptly reimburse the Executive for all reasonable expenses
necessarily incurred by him in the performance of his duties to the Company upon
presentation of a voucher or documentation indicating the amount and business
purposes of any such expenses. These expenses include, but are not limited to,
travel, meals, entertainment, etc.

           8. OFFICE AND SUPPORT STAFF. During the term of this Agreement, the
Executive shall be entitled to an office of a size and with furnishings and
other appointments, and to secretarial and

                                       -3-

<PAGE>

other assistants, at least equal to those provided to other management level
employees of the Company.

           9. TERMINATION.

              (a) GROUNDS. This Agreement shall terminate in the event of the
Executive's death. In the case of the Executive's Disability, the Company may
elect to terminate the Executive as a result of such Disability. Where
appropriate, the Company also may terminate the Executive pursuant to a
Termination With Cause. Finally, the Executive may terminate his employment with
the Company pursuant to either a Voluntary Termination or a Voluntary
Termination for Good Reason. For purposes of this Agreement, Disability,
Voluntary Termination, Voluntary Termination for Good Reason, and Termination
With Cause are defined in Section 10 of this Agreement.

              (b) NOTICE OF TERMINATION. Any termination by the Company or the
Executive (other than upon death) shall be communicated by Notice of Termination
to the Executive or the Company, as applicable. For purposes of this Agreement,
a "Notice of Termination" means a written notice which (i) indicates the
specific termination provision in this Agreement relied upon and the specific
ground for termination; (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for such termination; and (iii) the
date of termination in accordance with 9(c) below. The failure of the Executive
to set forth in the Notice of Termination any fact or circumstance which
contributes to a showing of Good Reason shall not waive any right of the
Executive hereunder or preclude the Executive from asserting such fact or
circumstance in enforcing his rights hereunder.

              (c) DATE OF TERMINATION. "Date of Termination" means (i) if the
Company intends to treat the termination as a termination based upon the
Executive's Disability, the Executive's employment with the Company shall
terminate effective on the sixtieth day after receipt of Notice of Termination
by the Company, provided that, within thirty (30) days after such receipt, the
Executive shall not have returned to full-time performance of the Executive's
duties; (ii) if the Executive's employment is terminated by reason of Death, the
Date of Termination shall be the date of death of the Executive; (iii) if the
Executive's employment is terminated by reason of Voluntary Termination, the
Date of Termination shall be thirty (30) days from the date of the Notice of
Termination. In addition, the Executive shall be deemed to have

                                       -4-

<PAGE>

terminated his employment by Voluntary Termination if the Executive voluntarily
refuses to provide substantially all the services described in Section 4 hereof
for a period greater than four (4) consecutive weeks; In such event, the Date of
Termination shall be the day after the last day of such four-week period; (iv)
if the Company intends to treat the termination as a Termination With Cause
based upon the grounds described in clauses 10 (c) (i) and (ii), then
Termination shall be effective upon Notice as defined in this Agreement; (v) if
the Company intends to treat the termination as a Termination With Cause based
upon the grounds described in clauses 10 (c) (iii) and (iv) of this Agreement,
the Company shall provide the Executive written notice of such grounds for
termination and the Executive shall have a period of thirty (30) days to cure
such cause to the reasonable satisfaction of the Chairman of the Board, failing
which employment shall be deemed terminated at the end of such thirty (30) day
period; and (vi) if the Executive's employment is terminated by reason of
Voluntary Termination for Good Reason, the date of termination shall be thirty
(30) days after the date of the Notice of Termination if the cause is not cured.

           10. DEFINITIONS. For the purposes of this Agreement, the following
terms shall have the following definitions:

              (a) "DISABILITY" means a complete physical or mental inability,
confirmed by three (3) independent licensed physicians, to perform substantially
all of the services described in Section 3 hereof that continues for a period of
one hundred twenty (120) consecutive days.

              (b) "VOLUNTARY TERMINATION" means the Executive's voluntary
termination of his employment, other than a Voluntary Termination for Good
Reason, hereunder for any reason. For purposes of this Section 10, voluntary
refusal to perform services shall not include taking a vacation in accordance
with Section 6(a) hereof, the Executive's failure to perform services on account
of his illness or the illness of a member of his immediate family, provided such
illness is adequately substantiated at the reasonable request of the Company, or
any other absence from service with the written consent of the Board of
Directors.

              (c) "TERMINATION WITH CAUSE" means the termination of the
Executive's employment by act of the Company's Board of Directors for any of the
following reasons:

                                       -5-

<PAGE>

                     (i) the Executive's conviction of a crime involving some
                act of dishonesty or moral turpitude (specifically excepting
                simple misdemeanors not involving acts of dishonesty and all
                traffic violations);

                     (ii) the Executive's theft, embezzlement, misappropriation
                of or intentional and malicious infliction of damage to the
                Company's property or business opportunity;

                     (iii) the Executive's abuse of alcohol, drugs or other
                substances as determined by an independent medical physician; or

                     (iv) the Executive engages in gross dereliction of duties,
                repeated refusal to perform assigned duties consistent with his
                position or repeated violation of the Company's written policies
                after written warning.

              (d) VOLUNTARY TERMINATION FOR "GOOD REASON" means the Executive's
termination of his employment hereunder following an intentional breach by the
Company of any material provision of this Agreement if such breach continues for
a period of thirty (30) days after the board of trustees of the Company receives
written notice of such breach. For purposes of this Agreement, such breaches
include, but are not limited to, the following:

                     (i) a material modification by the Company, and/or its
                affiliates, of the Executive's duties, functions and
                responsibilities as in effect immediately before such
                modification without the Executive's written consent;

                     (ii) the failure of the Company, and/or its affiliates, to
                permit the Executive to exercise such responsibilities as are
                consistent with the Executive's position and are of such a
                nature as are usually associated with such offices or positions
                of a company engaged in the same business as the Company for
                which the Executive performs services;

                                       -6-

<PAGE>

                     (iii) a requirement by the Company, and/or its affiliates,
                that the Executive relocate his employment more than fifty (50)
                miles from Palm Beach County, Florida, without the Executive's
                written consent; or

                     (iv) a reduction in the Executive's Base Salary.

              11. COMPENSATION UPON TERMINATION-OBLIGATIONS OF THE COMPANY UPON
                  TERMINATION.

              (a) If the Executive shall suffer a death, termination hereunder
based upon Executive's Disability or Voluntary Termination for Good Reason, as
defined under Section 10, then the Company shall pay the Executive cash
compensation in a lump sum equal to (a) the Executive's then current annual Base
Salary, (b) plus the average of the bonus paid to the Executive for the previous
year and the annualized bonus accrual for the Executive for the then-current
year, (c) multiplied by three (3), (d) minus all disability proceeds received by
the Executive under any disability insurance policies paid for by the Company.
The Company shall also be responsible for the following:

                     (i) the Executive's full Base Salary up to the Date of
                Termination at the rate in effect on the Date of Termination;

                     (ii) any stock option rights possessed by the Executive;

                     (iii) the product of the Annual Bonus paid to the Executive
                for the last full fiscal year and a fraction, the numerator of
                which is the number of days in the current fiscal year through
                the Date of Termination, and the denominator of which is 365;

                     (iv) any compensation previously deferred by the Executive
                (together with any accrued interest thereon) and not yet paid by
                the Company and any accrued vacation pay not yet paid by the
                Company; and

                                       -7-

<PAGE>

                     (v) any other amounts or benefits owing to, or accrued or
                vested for the account of, the Executive under the
                then-applicable employee benefit plans or policy of the Company.
                All such accrued obligations shall be paid to the Executive in a
                lump sum, in cash, within ninety (90) days of the Date of
                Termination. Anything in this Agreement to the contrary
                notwithstanding, the Executive's family shall be entitled to
                receive benefits at least equal to the benefits provided by the
                Company, under such plans, programs and policies relating to
                family death benefits, if any, in accordance with the most
                favorable policies of the Company.

              (b) If the Executive shall suffer a Termination With Cause or a
Voluntary Termination, then the Executive shall not be entitled to any
compensation after the effective date of such Termination With Cause or
Voluntary Termination (except compensation accrued but unpaid as of such
effective date, including any vested or accrued options, shares or similar
grants by the Company).

           12. CHANGE IN CONTROL. In the event of a Change in Control, as
defined below, either the Executive or the Company, shall have the option to
terminate Executive's employment.

              (a) NOTICE. Written notice that a "Change in Control" has occurred
must be delivered by the Company within ten (10) days after such "Change in
Control" occurs. Proper notice to effectuate a termination upon Change in
Control shall be effective the date either the Executive or the Company receives
written notice which (i) indicates that this Employment Agreement is being
terminated on the basis of Change in Control, and, (ii) sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for such
termination.

              (b) DEFINITIONS - CHANGE IN CONTROL.

                  (1) ACQUIRING PERSON means that a Person, considered alone or
together with all Control Affiliates and Associates of that Person, is or
becomes directly or indirectly the beneficial owner of securities representing
at least thirty (30)

                                       -8-

<PAGE>

percent of the Companies' then outstanding securities entitled to vote generally
in the election of the Board.

                  (2) AFFILIATE means any "subsidiary" or "parent" corporation
(within the meaning of Section 424 of the Code) of the Companies.

                  (3) BOARD means the Board of Directors of the Companies.

                  (4) CONTROL AFFILIATE, with respect to any Person, means an
Affiliate as defined in Rule 12B-2 of the General Rules and Regulations under
the Exchange Act, as amended as of January 1, 1990.

                  (5) EXCHANGE ACT means the Securities Exchange Act of 1934, as
amended and as in effect from time to time.

                  (6) PERSON means any human being, firm, corporation,
partnership, or other entity. Person also includes any human being, firm,
corporation, partnership , or other entity as defined in Sections 13(d)(3) and
14(d)(2) of the Exchange Act, as amended as of January 1, 1990. The term Person
does not include the Companies or any related entity within the meaning of Code
Section 1563(a), 414(b) or 414(c), and the term Person does not include any
employee-benefit plan maintained by the Companies or by any Related Entity, and
any Person or entity organized, appointed, or established by the Companies or by
any subsidiary for or pursuant to the terms of any such employee-benefit plan,
unless the Board determines that such an employee-benefit plan, or such Person
or entity is a Person.

                  (7) "CHANGE IN CONTROL". For purposes of this Agreement, a
"Change in Control" shall mean any of the following events:

                     (i) In the event a Person is or becomes an Acquiring
                Person;

                     (ii) In the event a Person enters into an agreement that
                would result in that Person's becoming an Acquiring Person;

                     (iii) In the event that the Company enters into any
                agreement with a Person that involves the

                                       -9-

<PAGE>

                transfer of at least fifty (50) percent of the Company's total
                assets on a consolidated basis, as reported in the Company's
                consolidated financial statements filed with the Securities and
                Exchange Commission;

                     (iv) In the event that the Company enters into an agreement
                to merge or consolidate the Company or to effect a statutory
                share exchange with another Person, regardless of whether the
                Company is intended to be the surviving or resulting entity
                after the merger, consolidation, or statutory share exchange;

                     (v) In the event the individuals who, as of the date of
                this Agreement, are members of the Board, cease for any reason
                to constitute a majority of the members of the Board;

                     (vi)  A complete liquidation or dissolution of
                the Company; or,

                     (vii) Notwithstanding the foregoing, a Change in Control
                shall not be deemed to control solely because any Person
                acquired Beneficial Ownership as defined in the Exchange Act of
                more than the permitted amount of the then outstanding
                securities as a result of the acquisition of securities by the
                Company which by reducing the number of securities then
                outstanding, increases the proportional number of shares
                Beneficially Owned by the subject Person(s), provided that if a
                Change in Control would occur as a result of the acquisition of
                securities by the Company, and after such share acquisition by
                the Company, the Person becomes the Beneficial Owner of any
                additional securities which increases the percentage of the then
                outstanding securities Beneficially Owned by the subject Person,
                then a Change in Control shall occur.

              (c) COMPENSATION UPON TERMINATION BASED UPON CHANGE IN CONTROL -
PAYMENT OF EXCISE TAXES. If a termination occurs upon a Change in Control as
defined above, then the Company shall pay the Executive those same amounts at
the same time as indicated in

                                      -10-

<PAGE>

Section 11 (i) - (v) (a "Termination Payment"). In addition, if the excise tax
on "excess parachute payments," as defined in Section 280G of the Internal
Revenue Code of 1986, as amended (the "Code"), will be imposed on the Executive
under Code Section 4999 as a result of the Executive's receipt of the
Termination Payment or any other payment, benefit, or compensation (without
regard to the "Additional Amount" described below) which the Executive receives
or has the right to receive from the Company or any of its affiliates (the
"Change of Control Benefits"), the Company shall indemnify the Executive and
hold him harmless against all claims, losses, damages, penalties, expenses, and
excise taxes. To effect this indemnification, the Company shall pay to the
Executive the "Additional Amount" described in this Section 12(c). The
Additional Amount shall be the amount that is sufficient to indemnify and hold
the Executive harmless from the application of Code Section 280G and 4999 of the
Code, including the amount of (i) the excise tax that will be imposed on the
Executive under Section 4999 of the Code with respect to the Change of Control
Benefits; (ii) the additional (A) excise tax under Section 4999 of the Code, (B)
hospital insurance tax under Section 3111(b) of the Code, and (C) federal, state
and local income taxes for which the Executive is or will be liable on account
of the payment of the amount described in item (i); and (iii) the further
excise, hospital insurance and income taxes for which the Executive is or will
be liable on account of the payment of the amount described in item (ii) and
this item (iii) and any other indemnification payment under this Section 12(c).
The Additional Amount shall be calculated and paid to the Executive at the time
that the Termination Payment is paid to the Executive. In calculating the
Additional Amount, the highest marginal rates of federal and applicable state
and local income taxes applicable to individuals and in effect for the year in
which the Change of Control occurs shall be used. Nothing in this Section 12(c)
shall give the Executive the right to receive indemnification from the Company
or its affiliates for federal, state or local income taxes or hospital insurance
taxes payable solely as a result of the Executive's receipt of (a) the
Termination Payment or (b) any additional payment, benefit or compensation OTHER
THAN additional compensation in the form of the excise tax payment specified in
item (i) above. As specified in items (ii) and (iii) above, all income, hospital
insurance and additional excise taxes resulting from additional compensation in
the form of the excise tax payment specified in item (i) above shall be paid to
the Executive.

                                      -11-

<PAGE>

           The provisions of this Section 12(c) are illustrated by the following
example:

           Assume that the Termination Payment and all other Change of Control
Benefits result in a total federal, state and local income tax and hospital
insurance tax liability of $180,000; and an excise tax liability under Code
Section 4999 of $70,000. Under such circumstances, the Executive is solely
responsible for the $180,000 income and hospital insurance tax liability; and
the Company must pay to the Executive $70,000, plus an amount necessary to
indemnify the Executive for all federal, state and local income taxes, hospital
insurance taxes, and excise taxes that will result from the $70,000 payment to
the Executive and from all further indemnification to the Executive of taxes
attributable to the initial $70,000 payment.

           13. CONFIDENTIAL INFORMATION. The executive recognizes that the
Company's business interests require a confidential relationship between the
Company and the Executive and the fullest practical protection and confidential
treatment of their trade secrets, operating manuals, marketing techniques,
designs, concepts, franchise operation and system management programs, customer
lists, innovations and improvements (collectively, "Information") that will be
conceived or learned by him in the course of his employment with the Company.
Accordingly, the Executive agrees, both during and after termination of his
employment, to keep secret and to treat confidentially all of the Company's
Information and not to use or aid others in using any such Information in
competition with the Company. The obligation set forth in this Paragraph 13
shall exist during the Executive's employment and shall continue after the
termination of the Executive's employment for so long as any of the Company's
Information retains any confidentiality.

           14. NOTICES. All notices or deliveries authorized or required
pursuant to this Agreement shall be deemed to have been given when in writing
and personally delivered or three (3) days following the date when deposited in
the U.S. mail, certified, return receipt requested, postage prepaid, addressed
to the parties at the following addresses or to such other addresses as either
may designate in writing to the other party:

               To the Company:     INNKEEPERS USA TRUST
                                   Attn: Mr. Jeffrey H. Fisher
                                   306 Royal Poinciana Way
                                   Palm Beach, FL 33487

                                      -12-

<PAGE>

               To the Executive:   JEFFREY H. FISHER
                                   234 List Road
                                   Palm Beach, FL 33480

           15. ENTIRE AGREEMENT. This Agreement supersedes in its entirety the
Amended and Restated Employment Agreement between the Executive and the Company
effective February 1, 1996. This Agreement contains the entire understanding
between the parties hereto with respect to the subject matter hereof and shall
not be modified in any manner except by instrument in writing signed, by or on
behalf of, the parties hereto. This Agreement shall be binding upon and inure to
the benefit of the heirs, successors and assigns of the parties hereto.

           16. ARBITRATION. Any claim or controversy arising out of, or relating
to, this Agreement or its breach, shall be settled by arbitration in Palm Beach
County, Florida in accordance with the governing rules of the American
Arbitration Association. Judgment upon the award rendered may be entered in any
court of competent jurisdiction. In the event one of the parties hereto requests
an arbitration proceeding under this Agreement, such proceeding shall commence
within 30 days from the date of such request. The prevailing party shall be
entitled to reasonable attorney's fees and costs.

           17. APPLICABLE LAW. This Agreement shall be governed and construed in
accordance with the laws of the State of Florida.

           18. NO SETOFF. The Company's obligation to make the payments provided
for in this Agreement and otherwise to perform its obligations hereunder shall
not be affected by a setoff, counterclaim, recoupment, defense or other claim,
right or action which the Company may have against the Executive or others. In
no event shall the Executive be obligated to seek other employment or take other
action by way of mitigation of the amounts payable to the Executive under the
provisions of this Agreement.

           19. ASSIGNMENT. The Executive acknowledges that his services are
unique and personal. Accordingly, the Executive may not assign his rights or
delegate his duties or obligations under this Agreement. The Executive's rights
and obligations under this

                                      -13-

<PAGE>

Agreement shall insure to the benefit of and shall be binding upon the
Executive's successors and assigns.

           20. HEADINGS. Headings in this Agreement are for convenience only and
shall not be used to interpret or construe its provisions.

           IN WITNESS WHEREOF, the parties have executed this Agreement as of
the _____ day of April, 1998.

                                        THE COMPANY:

                                        INNKEEPERS USA TRUST, a Maryland
                                        real estate investment trust

                                        By:
                                            -----------------------------
                                            Frederic M. Shaw
                                            Title: Executive Vice President and
                                                   Chief Operating Officer

                                        EXECUTIVE:

                                        By:
                                            -----------------------------
                                            Jeffrey H. Fisher

                                      -14-

<PAGE>

                                  AMENDMENT TO
                              EMPLOYMENT AGREEMENT

           THIS AMENDMENT TO EMPLOYMENT AGREEMENT, dated as of November 13,
2000, between INNKEEPERS USA TRUST, a Maryland real estate investment trust
("Company"), and JEFFREY H. FISHER ("Executive"), recites and provides as
follows:

           WHEREAS, the Company and Executive entered into an Employment
Agreement effective February 1, 1997 ("Employment Agreement"); and

           WHEREAS, the parties have agreed to amend the Employment Agreement to
provide for an increased Base Salary and extend the term.

           NOW, THEREFORE, in consideration of the premises and mutual
obligations set forth herein and in the Employment Agreement, the parties hereto
hereby agree as follows:

           1. The first sentence of Section 3 of the Employment Agreement shall
be deleted and replaced in its entirety with the following:

           "The term of the Executive's employment hereunder (the "Term") shall
           expire on January 2, 2004, unless terminated earlier as provided
           herein."

           2. Section 4 of the Employment Agreement is hereby deleted and
replaced in its entirety with the following:

           "The Executive shall devote substantially all of his time, attention
           and effort to the Company's affairs; provided that the Company
           acknowledges that the Executive may, from time to time, hold the
           position of President of Innkeepers Hospitality, Inc. and/or one or
           more of its sister companies whose primary business is leasing and/or
           managing properties in which the Company holds an interest, and that
           the Executive may devote business time to these companies so long as
           such activities do not interfere with the performance of Executive's
           duties hereunder. The Executive shall have full authority and
           responsibility, subject to the general direction, approval and
           control of the Company's Board of Trustees, for formulating policies
           and administering the Company in all respects."

           3. Section 5(a) of the Employment Agreement is hereby amended to
provide for a annual Base Salary in 2001 of $313,300, subject to increase in
each subsequent year of the Term as set forth in Section 5(a).

           4. The terms and provisions of the Employment Agreement shall not be
deemed to have been changed except as expressly modified hereby, and as so
modified the Employment Agreement shall remain in full force and effect.

                                      -15-

<PAGE>

           5. Capitalized terms not defined herein shall have the meanings
ascribed to such terms in the Employment Agreement.

           IN WITNESS WHEREOF, the parties have executed this Amendment to
Employment Agreement as of the 13th day of November, 2000.

                                    THE COMPANY:

                                    INNKEEPERS USA TRUST, a Maryland real estate
                                    investment trust

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

                                    Its:

                                    EXECUTIVE:

                                    -----------------------------
                                    JEFFREY H. FISHER

                                      -16-

<PAGE>

                                  AMENDMENT TO
                              EMPLOYMENT AGREEMENT

           THIS AMENDMENT TO EMPLOYMENT AGREEMENT, dated as of October 9, 1998,
between INNKEEPERS USA TRUST, a Maryland real estate investment trust
("Company"), and JEFFREY H. FISHER ("Executive"), recites and provides as
follows:

           WHEREAS, the Company and Executive entered into an Employment
Agreement effective February 1, 1997 ("Employment Agreement"); and

           WHEREAS, the parties have agreed to amend the Employment Agreement to
provide for an increased Base Salary and revised Annual Bonus formula.

           NOW, THEREFORE, in consideration of the premises and mutual
obligations set forth herein and in the Employment Agreement, the parties hereto
hereby agree as follows:

           1. Section 5(a) of the Employment Agreement is hereby amended to
provide for an annual Base Salary in 1999 of $250,000.00, subject to increase in
each subsequent year of the Term as set forth in Section 5(a).

           2. Section 5(b) is hereby deleted in its entirety and replaced with
the following:

         "(b) ANNUAL BONUS. In addition to the annual Base Salary in Section
5(a) above, the Executive shall be eligible for a cash bonus each year, payable
on or before April 1 of the following year, determined as follows:

                     (i) The Executive shall be entitled to receive a cash bonus
                equal to $75,000 if the Company achieves funds from operations
                ("FFO") per share for the year equal to ninety-five percent
                (95%) of the FFO per share budget for the year, as estimated by
                the Company and set forth in the budget presented to the Board
                of Trustees at the first Board meeting of the year;

                     (ii) The Executive shall be entitled to receive an
                additional cash bonus equal to $75,000 if the Company achieves
                FFO per share for the year equal to one-hundred percent (100%)
                of the FFO per share budget for the year, as estimated by the
                Company and set forth in the budget presented to the Board of
                Trustees at the first Board meeting of the year;

                     (iii) The Executive shall be entitled to receive a cash
                bonus equal to $25,000 if the Company achieves FFO per share for
                the year equal to one hundred five percent (105%) of the FFO per
                share budget for the year, as estimated by the Company and set
                forth in the budget presented to the Board of Trustees at the
                first Board meeting of the year; and

                                      -17-

<PAGE>

                     (iii) The Executive shall be entitled to receive an
         additional cash bonus of up to $25,000 if and to the extent approved by
         the Compensation Committee of the Board."

         3. The terms and provisions of the Employment Agreement shall not be
deemed to have been changed except as expressly modified hereby, and as so
modified the Employment Agreement shall remain in full force and effect.

         4. Capitalized terms not defined herein shall have the meanings
ascribed to such terms in the Employment Agreement.

         IN WITNESS WHEREOF, the parties have executed this Amendment to
Employment Agreement as of the _____ day of November, 1998.

                          THE COMPANY:

                          INNKEEPERS USA TRUST, a Maryland real estate
                          investment trust

                          By:
                               -----------------------------
                               Frederic M. Shaw
                          Its: Executive Vice President and Chief Operating
                               Officer

                          EXECUTIVE:

                          -----------------------------
                          JEFFREY H. FISHER

                                      -18-

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