Document:

EXHIBIT 10.96

                            APPLE SUITES SPE II, INC.

                                     BYLAWS

                                    ARTICLE I
                            MEETINGS OF SHAREHOLDERS

      1.1 PLACE AND TIME OF MEETINGS.  Meetings of shareholders shall be held at
such place,  either within or without the Commonwealth of Virginia,  and at such
time,  as may be  provided  in the notice of the  meeting  and  approved  by the
President or the Board of Directors.

      1.2 ANNUAL MEETING.  The annual meeting of shareholders,  shall be held on
the second Tuesday in August of each year, or on such date, as may be designated
by  resolution  of the Board of  Directors  from time to time for the purpose of
electing  directors  and  conducting  such other  business as may properly  come
before the meeting.

      1.3 SPECIAL  MEETINGS.  Special meetings of the shareholders may be called
by the  President or the Board of Directors and shall be called by the Secretary
upon demand of shareholders as required by law. Only business within the purpose
or purposes described in the notice for a special meeting of shareholders may be
conducted at the meeting.

      1.4 RECORD  DATES.  The Board of Directors  may fix, in advance,  a record
date to make a determination  of shareholders  entitled to notice of, or to vote
at, any meeting of  shareholders,  to receive any  dividend or for any  purpose,
such date to be not more than  seventy  (70) days  before the  meeting or action
requiring a determination  of  shareholders.  If no such record date is set then
the  record  date shall be the close of  business  on the day before the date on
which the first notice is given.

      When a determination of shareholders entitled to notice of, or to vote at,
any meeting of shareholders has been made, such determination shall be effective
for any  adjournment  of the meeting  unless the Board of Directors  fixes a new
record  date,  which it shall do if the meeting is adjourned to a date more than
one hundred twenty (120) days after the date fixed for the original meeting.

      1.5 NOTICE OF MEETINGS.  Written notice stating the place, day and hour of
each meeting of shareholders  and, in case of a special meeting,  the purpose or
purposes for which the meeting is called,  shall be given not less than ten (10)
nor more than sixty  (60) days  before the

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date of the meeting (except when a different time is required in these Bylaws or
by law) either personally or by mail, courier,  facsimile,  email, or other form
of wire or wireless  communication,  to each  shareholder of record  entitled to
vote at such  meeting.  Each such notice shall be deemed  effective  on: (a) the
fifth (5th)  business day after being mailed by United  States  certified  mail,
return receipt requested,  postage prepaid;  (b) the day when delivered by hand;
(c) the first  business  day after  being  deposited  with a national  overnight
courier; or (d) the day when transmitted by facsimile or email with confirmation
of receipt or successful transmission.

      If a meeting is adjourned to a different date, time or place,  notice need
not be given if the new date,  time or place is announced at the meeting  before
adjournment.  However,  if a new record date for an adjourned  meeting is fixed,
notice of the  adjourned  meeting shall be given to  shareholders  as of the new
record date, unless a court of competent jurisdiction provides otherwise.

      1.6 WAIVER OF NOTICE.  A shareholder may waive any notice required by law,
the Articles of  Incorporation or these Bylaws before or after the date and time
of the  meeting  that is the  subject of such  notice.  The  waiver  shall be in
writing,  be signed by the shareholder  entitled to the notice, and be delivered
to the Secretary of the  Corporation for inclusion in the minutes or filing with
the corporate records.

      A  shareholder  who attends a meeting  waives any objection (a) to lack of
notice or  defective  notice  of the  meeting,  unless  the  shareholder  at the
beginning of the meeting objects to holding the meeting or transacting  business
at the meeting,  and (b) to consideration of a particular  matter at the meeting
that is not within the purpose or  purposes  described  in the  meeting  notice,
unless the shareholder objects to considering the matter when it is presented.

      1.7 QUORUM AND VOTING  REQUIREMENTS.  Unless otherwise  required by law, a
majority of the votes  entitled to be cast on a matter  constitutes a quorum for
action on that matter. Once a share is represented for any purpose at a meeting,
it is deemed  present for quorum  purposes for the  remainder of the meeting and
for any  adjournment of that meeting unless a new record date is or shall be set
for that adjourned meeting. If a quorum exists,  action on a matter,  other than
the  election of  directors,  is approved if the votes cast  favoring the action
exceed  the  votes  cast  opposing  the  action,  unless  a  greater  number  of
affirmative votes is required by law.  Directors shall be elected by a plurality
of the votes cast by the shares entitled

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to vote in the  election at a meeting at which a quorum is present.  Less than a
quorum may adjourn a meeting.

      1.8 ACTION WITHOUT MEETING.  Action required or permitted to be taken at a
meeting of the shareholders may be taken without a meeting and without action by
the Board of Directors if the action is taken by all the  shareholders  entitled
to vote on the action.  The action  shall be  evidenced  by one or more  written
consents  describing  the  action  taken,  signed  by all the  shareholders  and
delivered to the  Secretary of the  Corporation  for inclusion in the minutes or
filing with the corporate  records.  Action taken by unanimous  consent shall be
effective  according to its terms when all consents are in the possession of the
Corporation,  unless the consent specifies a different  effective date, in which
event the action  taken  shall be  effective  as of the date  specified  therein
provided that the consent  states the date of execution by each  shareholder.  A
shareholder  may  withdraw  a consent  only by  delivering  a written  notice of
withdrawal  to the  Corporation  prior to the time that all  consents are in the
possession of the Corporation.

      If not otherwise  fixed pursuant to the provisions of Section,  the record
date for determining  shareholders  entitled to take action without a meeting is
the date the first  shareholder  signs the consent  described  in the  preceding
paragraph.

                                   ARTICLE II
                                    DIRECTORS

      2.1 GENERAL POWERS.  The Corporation shall have a Board of Directors.  All
corporate  powers  shall be  exercised  by or under the  authority  of,  and the
business and affairs of the  Corporation  managed  under the  direction  of, its
Board of  Directors,  subject to any  limitation  set forth in the  Articles  of
Incorporation.  Notwithstanding  any  provision of these Bylaws to the contrary,
the   Corporation   shall  comply  with  all   provisions  of  its  Articles  of
Incorporation  regarding  the  Board  of  Directors,  including  any  provisions
relating to the composition thereof or approval thereby.

      2.2 NUMBER, TERM AND ELECTION.  The number of directors of the Corporation
shall be a minimum of one (1) and a maximum of five (5). The number of directors
may be fixed or changed  from time to time,  within the minimum and the maximum,
by the  shareholders  or by the Board of Directors.  Only the  shareholders  may
change the range of the size of the

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Board of  Directors or  determine  whether the Board of  Directors  shall have a
fixed or  variable  size.  No  decrease  in  number  shall  have the  effect  of
shortening the term of any incumbent  director.  Each director shall hold office
until his death,  resignation,  retirement or removal, or until his successor is
elected.

      Except as provided in Section 2.3 of this Article,  the  directors  (other
than initial  directors) shall be elected by the holders of the Common Shares at
the annual meeting of  shareholders,  and those persons who receive the greatest
number of votes  shall be  deemed  elected  even  though  they do not  receive a
majority  of the  votes  cast.  No  individual  shall be named or  elected  as a
director without his prior consent.

      2.3  REMOVAL  AND  VACANCIES.  The  shareholders  may  remove  one or more
directors,  with or  without  cause,  if the  number of votes cast to remove him
constitutes  a  majority  of the votes  entitled  to be cast at an  election  of
directors.  A  director  may be removed  by the  shareholders  only at a meeting
called for the  purpose of removing  him and the meeting  notice must state that
the purpose, or one of the purposes of the meeting, is removal of the director.

      A vacancy on the Board of Directors,  including a vacancy  resulting  from
the  removal of a director or an  increase  in the number of  directors,  may be
filled  by (a)  the  shareholders,  (b)  the  Board  of  Directors  or  (c)  the
affirmative  vote of a majority of the  remaining  directors  though less than a
quorum of the Board of  Directors,  and may, in the case of a  resignation  that
will become  effective at a specified  later date,  be filled before the vacancy
occurs but the new director may not take office until the vacancy occurs.

      2.4  ANNUAL  AND  REGULAR  MEETINGS.  An  annual  meeting  of the Board of
Directors,   which  shall  be  considered  a  regular  meeting,  shall  be  held
immediately  following each annual meeting of  shareholders,  for the purpose of
electing  officers  and  carrying on such other  business as may  properly  come
before  the  meeting.  The  Board of  Directors  may also  adopt a  schedule  of
additional meetings which shall be considered regular meetings. Regular meetings
shall  be  held  at such  times  and at  such  places,  within  or  without  the
Commonwealth  of Virginia,  as the  President  or the Board of  Directors  shall
designate from time to time. If no place is designated,  regular  meetings shall
be held at the principal office of the Corporation.

      2.5 SPECIAL  MEETINGS.  Special  meetings of the Board of Directors may be
called by the President or a majority of the directors of the  Corporation,  and
shall  be  held  at such  times  and at  such  places,  within  or  without  the
Commonwealth  of Virginia,  as the person or persons  calling

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the meetings shall designate.  If no such place is designated in the notice of a
meeting, it shall be held at the principal office of the Corporation.

      2.6 NOTICE OF MEETINGS. No notice need be given of regular meetings of the
Board of Directors.

      Notices of special  meetings of the Board of  Directors  shall be given to
each  director in person or delivered to his  residence or business  address (or
such other place as he may have  directed in writing) not less than  twenty-four
(24) hours before the meeting by mail, courier,  facsimile, email, or other form
of wire or wireless communication or by telephoning such notice to him. Any such
notice  shall set forth the time and place of the  meeting and state the purpose
for which it is called.

      2.7 WAIVER OF NOTICE;  ATTENDANCE  AT  MEETING.  A director  may waive any
notice required by law, the Articles of Incorporation, or these Bylaws before or
after  the  date  and time  stated  in the  notice,  and  such  waiver  shall be
equivalent  to the  giving  of such  notice.  Except  as  provided  in the  next
paragraph  of this  section,  the  waiver  shall be in  writing,  signed  by the
director entitled to the notice and filed with the minutes or corporate records.

      A director who attends or  participates  at a meeting  waives any required
notice to him of the  meeting  unless  the  director,  at the  beginning  of the
meeting  or  promptly  upon his  arrival,  objects  to  holding  the  meeting or
transacting  business at the meeting and does not thereafter vote for, or assent
to, action taken at the meeting.

      2.8 QUORUM;  VOTING.  A majority of the number of directors fixed in these
Bylaws shall constitute a quorum for the transaction of business at a meeting of
the  Board of  Directors.  If a quorum  is  present  when a vote is  taken,  the
affirmative vote of a majority of the directors  present is the act of the Board
of  Directors.  A director who is present at a meeting of the Board of Directors
or a  committee  of the Board of  Directors  when  corporate  action is taken is
deemed to have  assented  to the  action  taken  unless  (a) he  objects  at the
beginning  of the  meeting,  or  promptly  upon his  arrival,  to  holding it or
transacting  specified  business at the  meeting;  or (b) he votes  against,  or
abstains from, the action taken.

      2.9  TELEPHONIC  MEETINGS.  The Board of  Directors  may permit any or all
directors  to  participate  in a regular or special  meeting  by, or conduct the
meeting  through the use of, any means of  communication  by which all directors
participating may simultaneously  hear each other

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during  the  meeting.  A  director  participating  in a meeting by this means is
deemed to be present in person at the meeting.

      2.10 ACTION WITHOUT MEETING. Action required or permitted to be taken at a
meeting of the Board of Directors  may be taken  without a meeting if the action
is taken by all members of the Board.  The action  shall be  evidenced by one or
more written consents  stating the action taken,  signed by each director either
before or after the action taken,  and included in the minutes or filed with the
corporate records  reflecting the action taken.  Action taken under this section
shall be effective  when the last director  signs the consent unless the consent
specifies  a  different  effective  date,  in which  event the  action  taken is
effective as of the date specified  therein provided the consent states the date
of execution by each director.

      2.11  COMPENSATION.  The Board of Directors  may fix the  compensation  of
directors  and may provide for the payment of all  expenses  incurred by them in
attending meetings of the Board of Directors.

                                   ARTICLE III
                                    OFFICERS

      3.1 OFFICERS.  The officers of the Corporation  shall be a President and a
Secretary and, in the discretion of the Board of Directors,  such other officers
as may be  deemed  necessary  or  advisable  to  carry  on the  business  of the
Corporation. Any two or more offices may be held by the same person.

      3.2 ELECTION AND TERM.  Officers shall be elected at the annual meeting of
the Board of  Directors  and may be  elected  at such other time or times as the
Board of Directors  shall  determine.  They shall hold office,  unless  removed,
until  the next  annual  meeting  of the  Board  of  Directors  or  until  their
successors  are elected.  Any officer may resign at any time upon written notice
to the Board of Directors,  and such resignation  shall be effective when notice
is delivered unless the notice specifies a later effective date.

      3.3 REMOVAL OF OFFICERS.  The Board of Directors may remove any officer at
any time, with or without cause.

      3.4 DUTIES OF OFFICERS. The President shall be the chief executive officer
of the Corporation.  He and the other officers shall have such powers and duties
as  generally  pertain to their  respective  offices as well as such  powers and
duties as may be delegated to them from time

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to time by the Board of Directors.  The President, if present, shall be chairman
of all meetings of the shareholders  and the Board of Directors,  as well as any
committee of which he is a member.

                                   ARTICLE IV
                               SHARE CERTIFICATES

      4.1 FORM. Shares of the Corporation,  when fully paid, may be evidenced by
certificates  containing such  information as is required by law and approved by
the Board of Directors.  Any share certificates shall be signed by the President
and the  Secretary  and may  (but  need  not) be  sealed  with  the  seal of the
Corporation.  The seal of the  Corporation  and any or all signatures on a share
certificate may be facsimile.  The validity of a share certificate that has been
duly signed by an officer of the Corporation shall not be affected in any way in
the event  that such  officer,  subsequent  to such  signature,  ceases to be an
officer of the Corporation.

      4.2  TRANSFER.  The Board of  Directors  may make  rules  and  regulations
concerning the issue, registration and transfer of certificates representing the
shares  of  the  Corporation.  Transfers  of  shares  and  of  the  certificates
representing  such  shares  shall be made upon the books of the  Corporation  by
surrender of the certificates  representing  such shares  accompanied by written
assignments given by the owners or their attorneys-in-fact.

      4.3  RESTRICTIONS  ON TRANSFER.  A lawful  restriction  on the transfer or
registration of transfer of shares is valid and  enforceable  against the holder
or a transferee of the holder if the restriction  complies with the requirements
of law and its  existence  is noted  conspicuously  on the  front or back of the
certificate  representing  the  shares.  Unless  so noted a  restriction  is not
enforceable against a person without knowledge of the restriction.

      4.4 LOST OR DESTROYED SHARE CERTIFICATES.  The Corporation may issue a new
share  certificate in the place of any certificate  theretofore  issued which is
alleged  to have  been  lost or  destroyed  and may  require  the  owner of such
certificate,  or his legal representative,  to give the Corporation a bond, with
or without surety, or such other agreement, undertaking or security as the Board
of Directors  shall  determine is  appropriate,  to  indemnify  the  Corporation
against any claim that may be made  against it on account of the alleged loss or
destruction or the issuance of any such new certificate.

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                                    ARTICLE V
                            MISCELLANEOUS PROVISIONS

      5.1 CORPORATE SEAL. The corporate seal of the  Corporation,  if any, shall
be  circular  and  shall  have   inscribed   thereon,   within  and  around  the
circumference the full name of the Corporation.  In the center shall be the word
"SEAL" or a substantially similar term.

      5.2 FISCAL YEAR. The fiscal year of the Corporation shall be determined in
the  discretion  of the  Board  of  Directors,  but in the  absence  of any such
determination it shall be the calendar year.

      5.3 AMENDMENTS.  Except as otherwise  provided by law, these Bylaws may be
amended  or  repealed,  and new  Bylaws  may be made at any  regular  or special
meeting of the Board of Directors.  Bylaws made by the Board of Directors may be
repealed  or changed  and new Bylaws  may be made by the  shareholders,  and the
shareholders  may  prescribe  that any Bylaw made by them shall not be  altered,
amended or repealed by the Board of Directors.

                                       8EXHIBIT 10.97

                           APPLE SUITES GENERAL, INC.
                             A VIRGINIA CORPORATION

                      ARTICLES OF AMENDMENT AND RESTATEMENT

                                     TO THE

                            ARTICLES OF INCORPORATION

      These Articles of Amendment and Restatement are being filed with the State
Corporation

Commission of Virginia in accordance with Section  13.1-710 and -711 of the Code
of Virginia.

1.    The name of the corporation is Apple Suites General, Inc.

2.    The  text  of  each  amendment adopted is set forth in Exhibit A, which is
attached hereto and made a part hereof by this reference.  The amendments modify
the  Articles  designated  as  Articles  II and  VI,  and  insert  new  Articles
designated as Articles III and VII.

3.    Each amendment was adopted as of September 6, 2000.

4.    The  Board of Directors of the Corporation, by written consent dated as of
September  6,  2000,  found  each  amendment  to be in  the  best  interests  of
Corporation,  approved  and  adopted  each  amendment,  and  directed  that each
amendment  be  submitted  to the sole  shareholder  of the  Corporation  for its
approval.

5.    Each amendment was adopted by the sole  shareholder of the  Corporation by
written consent dated as of September 6, 2000.

6.    The foregoing sets forth the  information  required by Section  13.-711 of
the Code of Virginia, and constitutes the certificate required thereby.

DATE:  September 6, 2000

                                        Apple Suites General, Inc.
                                        a Virginia corporation

                                        By: /s/ Glade M. Knight
                                        --------------------------------------
                                        Glade M. Knight, President

<PAGE>

                                                                       EXHIBIT A

                           APPLE SUITES GENERAL, INC.

                              AMENDED AND RESTATED
                            ARTICLES OF INCORPORATION

                                    ARTICLE I
                                      NAME

      1. Name. The name of the Corporation is Apple Suites General, Inc.

                                   ARTICLE II
                                     PURPOSE

      2.  Purpose.  Notwithstanding  any provision  hereof to the contrary,  the
following shall govern:  The nature of the  Corporation's  business,  and of the
purposes to be conducted and promoted by the Corporation,  are limited solely to
the following activities:

          (a) To  serve  as the  general  partner  of,  and  to  have a  general
partnership  interest  in, Apple  Suites REIT  Limited  Partnership,  a Virginia
limited  partnership  (the  "Partnership"),  in accordance  with the  provisions
hereof and the Limited Partnership Agreement of the Partnership,  whose business
is limited to the ownership,  operation and management of those certain  parcels
of real property  listed on Schedule A hereto,  together  with all  improvements
located  thereon  (collectively,   the  "Properties"),  and  whose  indebtedness
consists  only  of  a  first  lien  mortgage  on  the  Properties  arising  from
refinancing   by  First  Union  National  Bank  (the   "Mortgage"),   any  other
indebtedness  permitted under the Mortgage, and normal trade accounts payable in
the ordinary course of the Partnership's business; and

          (b) To exercise all powers that are  enumerated in the Virginia  Stock
Corporation  Act and are necessary or  convenient  to the conduct,  promotion or
attainment of the business or purposes of the Corporation as set forth herein.

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                                   ARTICLE III
                                  PROHIBITIONS

      3. Certain Prohibited Activities.  Notwithstanding any provision hereof to
the contrary, the following shall govern:

          (a) For so long as any  obligation  secured  by the  Mortgage  remains
outstanding and not paid in full, the Corporation's  indebtedness  shall consist
only of indebtedness it is permitted to have under the Mortgage and normal trade
accounts payable in the ordinary course of business,  and the Corporation  shall
not cause or permit  the  Partnership  to have any  indebtedness  other than the
following:  (i) the Mortgage,  (ii) any other  indebtedness  the  Partnership is
permitted to have under the Mortgage, and (iii) normal trade accounts payable in
the ordinary course of the Partnership's business.

          (b) The  Corporation  shall not  consolidate or merge with or into any
other entity,  or convey or transfer its properties and assets  substantially as
an entirety to any entity, unless:

              (i) the entity (if other than the Corporation) that is formed upon
or that survives such consolidation or merger, or that acquired by conveyance or
transfer  the  properties  and  assets of the  Corporation  substantially  as an
entirety,  shall:  (A) be organized  and  existing  under the laws of the United
States of America or any State or the District of  Columbia,  (B) include in its
organizational  documents the same limitations set forth in this Article III and
in Article VII  (Separateness  Covenants),  and (C) expressly assume the due and
punctual performance of the Corporation's obligations; and

              (ii)  immediately  after  giving  effect to such  transaction,  no
default or event of default  under any agreement to which the  Corporation  is a
party shall have been committed and be continuing.

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<PAGE>

          (b) The  Corporation  shall  not cause or permit  the  Partnership  to
consolidate  or merge with or into any other  entity,  or convey or transfer its
properties and assets substantially as an entirety to any entity, unless:

              (i) the entity (if other than the Partnership) that is formed upon
or that survives such consolidation or merger, or that acquired by conveyance or
transfer  the  properties  and  assets of the  Partnership  substantially  as an
entirety,  shall:  (A) be organized  and  existing  under the laws of the United
States of America or any State or the District of  Columbia,  (B) include in its
organizational  documents the same limitations set forth in this Article III and
in Article VII  (Separateness  Covenants),  and (C) expressly assume the due and
punctual performance of the Partnership's obligations; and

              (ii)  immediately  after  giving  effect to such  transaction,  no
default or event of default  under any agreement to which the  Partnership  is a
party shall have been committed and be continuing.

          (c) For so long as any  obligation  secured  by the  Mortgage  remains
outstanding and not paid in full, the Corporation shall not voluntarily commence
a case with respect to itself, as debtor,  under the Federal  Bankruptcy Code or
any  similar  federal  or state  statute,  and shall  not  cause or  permit  the
Partnership to voluntarily  commence a case with respect to the Partnership,  as
debtor,  under the  Federal  Bankruptcy  Code or any  similar  federal  or state
statute, without the unanimous consent of the Board of Directors. For so long as
any obligation secured by the Mortgage remains outstanding and not paid in full,
no material amendment to these Articles of Incorporation or to the Corporation's
Bylaws may be made  without  the prior  approval  of the  mortgagee  holding the
Mortgage,  and the Corporation shall not cause or permit any material  amendment
to be made to the  Partnership's  Certificate of Limited  Partnership or Limited
Partnership  Agreement  without the prior approval of the mortgagee  holding the
Mortgage.

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                                   ARTICLE IV
                                AUTHORIZED SHARES

      4.1.  Number and  Designation.  The number of shares  the  Corporation  is
authorized to issue is set forth below,  together with the  designation  thereof
and the par value per share:

            Number of Shares     Class Designation     Par Value Per Share
            ----------------     -----------------     -------------------

                  5,000             Common                 no par value

      4.2  Preemptive  Rights.  No holder of  outstanding  shares shall have any
preemptive  right  with  respect  to:  (a)  any  shares  of  any  class  of  the
Corporation,  whether now or hereafter authorized;  (b) any warrants,  rights or
options to purchase any such shares; or (c) any obligations convertible into any
such shares or into warrants, rights or options to purchase any such shares.

      4.3 Voting and Distributions.  The holders of the Common Shares shall have
unlimited  voting  rights and shall be entitled to receive the net assets of the
Corporation  upon the  liquidation of the  Corporation,  its  dissolution or the
winding up of its affairs.

                                    ARTICLE V
                       INITIAL REGISTERED OFFICE AND AGENT

      5.1  Initial  Registered  Office.  The  initial  registered  office of the
Corporation  is  located in the City of  Richmond,  Virginia,  at the  following
address:

                                    McGuireWoods LLP
                                    One James Center
                                    901 East Cary Street
                                    Richmond, Virginia  23219

      5.2  Initial  Registered  Agent.  The  initial  registered  agent  of  the
Corporation  is Martin B. Richards,  Esquire,  whose usiness office is identical
with the  initial  registered  office and who is a resident  of  Virginia  and a
member of the Virginia State Bar.

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                                   ARTICLE VI
                     LIMIT ON LIABILITY AND INDEMNIFICATION

      6.1 Limit on  Liability.  To the maximum  extent that the  Virginia  Stock
Corporation  Act, as it exists on the date hereof or may  hereafter  be amended,
permits  elimination  of, or  limitations  upon,  the liability of a director or
officer of a corporation,  the directors and officers of the  Corporation  shall
have, as applicable, no liability or limited liability to the Corporation or its
shareholders.

      6.2 Indemnification, Advancement of Expenses and Related Matters.

          (a) The Corporation,  in accordance with the mandatory indemnification
provisions of the Virginia Stock Corporation Act, shall indemnify a director who
entirely  prevails  in the  defense  of any  proceeding  to which he was a party
because he is or was a director of the Corporation  against reasonable  expenses
incurred by him in connection with the proceeding. An officer of the Corporation
shall be  entitled  to such  mandatory  indemnification  to the same extent as a
director.

          (b) In  addition to any  mandatory  indemnification,  the  Corporation
shall  provide the maximum  indemnification  permitted  by law to any  director,
officer,  employee or agent of the Corporation in connection with any proceeding
(including any proceeding by or in the right of the Corporation) that is brought
against such person and that is based on the actions  taken or not taken by such
person on  behalf  of the  Corporation,  or on the  status  of such  person as a
director,  officer,  employee or agent of the Corporation,  except to the extent
that such  person  has  engaged  in (i)  willful  misconduct,  or (ii) a knowing
violation of the criminal law.

          (c) The  provisions  of this  Article  shall not be deemed to prevent,
deny or limit (i) the  indemnification  or insurance  permitted under applicable
law to the directors,  officers, employees or agents of the Corporation, or (ii)
the authority of the Corporation  under applicable law to advance,  reimburse or
pay expenses for the benefit of any director, officer, employee or agent.

                                        5
<PAGE>

          (d) The  determination  of whether  the  Corporation  is  required  or
permitted, in a particular case, to indemnify a director,  officer,  employee or
agent (or to provide such person with related advances,  reimbursements or other
payments of expenses) shall be conducted in accordance with Section  13.1-701 of
the Virginia Stock Corporation Act, or any successor provision.

      6.3 Mandatory  Subordination.  Notwithstanding any provision hereof to the
contrary,  the  following  shall  govern:  Any  indemnification  shall  be fully
subordinated to any obligations of the Corporation respecting the Properties and
shall not constitute a claim against the Corporation in the event that cash flow
is insufficient to pay such obligations.

      6.4 Amendments. No amendment, modification or repeal of this Article shall
diminish the rights  provided  hereunder  to any person  arising from conduct or
events occurring before the adoption of such amendment, modification or repeal.

                                   ARTICLE VII
                             SEPARATENESS COVENANTS

      7.1 Separateness  Covenants.  Notwithstanding  any provision hereof to the
contrary,  the following shall govern:  For so long as any obligation secured by
the Mortgage remains  outstanding and not paid in full, in order to preserve and
ensure the Corporation's  separate and distinct corporate identity,  in addition
to the  other  provisions  set forth in these  Articles  of  Incorporation,  the
Corporation   shall  conduct  its  affairs  in  accordance  with  the  following
provisions:

          (a) It shall  establish  and  maintain  an  office  through  which its
business shall be conducted  separate and apart from those of its parent and any
affiliate  and shall  allocate  fairly and  reasonably  any  overhead for shared
office space.

          (b) It shall maintain separate  corporate records and books of account
from those of its parent and any affiliate.

                                        6
<PAGE>

          (c) Its Board of Directors shall hold appropriate  meetings (or act by
unanimous  consent) to  authorize  all  appropriate  corporate  actions,  and in
authorizing such actions, shall observe all corporate formalities.  The Board of
Directors shall include at least one individual who is an Independent Director.

          (d) It shall not  commingle  assets  with  those of its parent and any
affiliate.

          (e) It shall conduct its own business in its own name.

          (f) It shall maintain  financial  statements  separate from its parent
and any affiliate.

          (g) It  shall  pay any  liabilities  out of its own  funds,  including
salaries of any employees, not funds of its parent or any affiliate.

          (h) It shall maintain an arm's length relationship with its parent and
any affiliate.

          (i) It shall not  guarantee or become  obligated  for the debts of any
other  entity,  including  its parent or any affiliate or hold out its credit as
being available to satisfy the obligations of others.

          (j) It shall use  stationery,  invoices and checks  separate  from its
parent and any affiliate.

          (k) It shall  not  pledge  its  assets  for the  benefit  of any other
entity, including its parent and any affiliate.

          (l) It shall hold itself out as an entity separate from its parent and
any affiliate.

                                       7
<PAGE>

          (m) It shall  not  make  any  loans or  advances  to any  third  party
(including any affiliate).

          (n) It shall  comply with its  obligations  under the  agreements  and
instruments evidencing the Mortgage.

      7.2  Definitions.  For purpose of this Article VII,  the  following  terms
shall have the indicated meanings:

          (a) "Independent  Director" means a duly appointed member of the Board
of Directors of the Corporation who has not been at any time during the five (5)
years  preceding  his or her initial  appointment,  and shall not be at any time
while serving as Independent Director, any of the following:

              (i) a shareholder,  director (other than in his or her capacity as
an  Independent  Director),  officer  or  employee  of  the  Corporation  or its
shareholders, or any affiliate of any of the foregoing;

              (ii) a  shareholder,  director,  officer,  employee,  partner,  or
member  of  any  customer  of,  or  supplier  or  service  provider   (including
professionals)  to, or other person who derives  more than ten percent  (10%) of
its purchases, revenues,  compensation, or other financial remuneration from its
activities  with, the  Corporation,  its shareholders or any affiliate of any of
the foregoing,  or any person or entity who otherwise is  financially  dependent
upon an officer,  director,  or employee of the Corporation or its shareholders,
or any family  member (by blood or marriage) of any such officer,  director,  or
employee, or a business entity owned or controlled by any of the foregoing;

              (iii) a person or other entity controlling or under common control
with any shareholder,  director,  officer, employee, customer or supplier of the
Corporation; or

                                        8
<PAGE>

              (iv) a member of the immediate family of any individual  described
in clause (1), (2) or (3) above.

          (b) "affiliate" means, with respect to a specified person or entity:

              (i)  any  person  or  entity   directly  or   indirectly   owning,
controlling  or  holding  with  power to vote ten  percent  (10%) or more of the
outstanding voting securities or interests of the specified entity;

              (ii) any  person  or  entity  ten  percent  (10%) or more of whose
outstanding  voting securities are directly or indirectly  owned,  controlled or
held with power to vote by the specified person or entity;

              (iii) any person or entity  directly  or  indirectly  controlling,
controlled by or under common control with the specified person or entity;

              (iv) any officer,  director or partner of the specified  person or
entity;

              (v) if the specified  person or entity is an officer,  director or
partner,  any company for which the specified  person or entity acts in any such
capacity; and

              (vi) any close relative or spouse of the specified person.

          (c) "control"  means the  possession,  directly or indirectly,  of the
power to direct or cause the  direction  of the  management  and  policies  of a
person or entity, whether through ownership of voting securities, by contract or
otherwise.

          (d)  "parent"  means,  with  respect  to  a  corporation,   any  other
corporation owning or controlling,  directly or indirectly,  fifty percent (50%)
or more of the voting shares of such corporation.

                                        9
<PAGE>

          (e) "person" means any individual,  corporation,  partnership, limited
liability  company,  joint  venture,  association,  joint stock  company,  trust
(including any beneficiary thereof),  unincorporated organization, or government
or any agency or political subdivision thereof.

      7.3 Actions with  Respect to  Partnership.  For so long as any  obligation
secured  by  the  Mortgage  remains  outstanding  and  not  paid  in  full,  the
Corporation  shall cause the  Partnership's  Limited  Partnership  Agreement  to
include separateness covenants with respect to the Partnership that are the same
in all material  respects as the  separateness  covenants  contained herein with
respect to the Corporation.

                                       10
<PAGE>

                                   SCHEDULE A
                              (LIST OF PROPERTIES)

The Properties consist of those real properties,  together with all improvements
thereon,  that are located at the following  addresses  (and that are more fully
described in agreements and instruments evidencing the Mortgage):

Dallas-Addison Homewood Suites
4451 Beltline Road
Addison, TX  75244

Dallas-Irving/Las Colinas Homewood Suites
4300 Wingren Drive
Irving, TX  75039

North Dallas-Plano Homewood Suites
4705 Old Sheppard Place
Plano, TX  75093

                                       11

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