Document:

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                                                                   Exhibit 10.17

                             EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the "Agreement") is made this 23/rd/ day of
June, 1999, by Crestline Capital Corporation, a corporation formed under the
laws of the State of Maryland with its principal place of business at 6600
Rockledge Drive, Suite 600, Bethesda, MD 20817 ("Crestline") and James L.
Francis, residing at 19205 Autumn Maple Lane, Gaithersburg, MD 20879 ("Mr.
Francis").

     WHEREAS, Crestline desires to employ Mr. Francis and Mr. Francis desires to
be employed by Crestline; and

     WHEREAS, the parties wish to set forth the terms and conditions of that
employment;

     NOW THEREFORE, in consideration of the mutual covenants and promises
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the parties hereto, the parties
agree as follows:

1. Term of Employment
   ------------------

     Crestline hereby employs Mr. Francis, and Mr. Francis hereby accepts
employment with Crestline, upon the terms and conditions set forth in this
Agreement.  Unless terminated earlier pursuant to Section 5, Mr. Francis'
employment pursuant to this Agreement shall be for the two (2)-year period
commencing on January 1, 1999 (the "Commencement Date") and ending on December
31, 2000 (the "Initial Term"), and thereafter shall automatically renew for
successive twelve (12) month periods (each of which shall be an "Additional
Term"). The Initial Term, together with any Additional Term, shall be referred
to herein as the "Employment Period."

2. Title; Duties
   -------------

     (a)  Mr. Francis shall be employed as Executive Vice President, Chief
     Financial Officer and Treasurer of Crestline. Mr. Francis shall report to
     the President of Crestline (the "President"), who shall have the authority
     to direct, control and supervise the activities of Mr. Francis. Mr. Francis
     shall perform such services consistent with his position as may be assigned
     to him from time to time by the President and are consistent with the
     bylaws of Crestline, including, but not limited to, managing the financial
     affairs of Crestline.

     (b)  Mr. Francis' place of employment shall be Bethesda, Maryland, or such
     other location within a 75-mile radius of the address first written above
     as the President shall direct; provided, however, that Mr. Francis' duties
     may require extensive travel.

3. Extent of Services
   ------------------

     (a)  General.  Mr. Francis agrees not to engage in any business activities
          -------
     during the
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     Employment Period except those which are for the sole benefit of Crestline,
     and to devote his entire business time, attention, skill and effort to the
     performance of his duties under this Agreement. Notwithstanding the
     foregoing, Mr. Francis may (i) engage in personal investments and
     charitable, professional and civic activities which do not impair the
     performance of his duties to Crestline, and (ii) with the prior approval of
     the Board of directors of Crestline (the "Board of Directors"), serve on
     the boards of directors of corporations other than Crestline, provided,
     however, that no such approval shall be necessary for Mr. Francis'
     continued service on any board of directors to which he was elected prior
     to the date of this Agreement. Mr. Francis shall perform his duties to the
     best of his ability, shall adhere to Crestline's published policies and
     procedures, and shall use his best efforts to promote Crestline's
     interests, reputation, business and welfare.

     (b)  Corporate Opportunities.  Mr. Francis agrees that he will not take
          -----------------------
     personal advantage of any business opportunities which arise during his
     employment with Crestline and which may be of benefit to Crestline.  All
     material facts regarding such opportunities must be promptly reported to
     the Board of Directors for consideration by Crestline.

4. Compensation and Benefits
   -------------------------

     (a)  Salary. Crestline shall pay Mr. Francis a gross base annual salary
          ------
     ("Base Salary") of $330,000. The salary shall be payable in arrears in
     approximately equal semi-monthly installments (except that the first and
     last such semi-monthly installments may be prorated if necessary) on
     Crestline's regularly scheduled payroll dates, minus such deductions as may
     be required by law or reasonably requested by Mr. Francis. Crestline's
     Compensation Policy Committee (the "Compensation Committee") shall review
     his Base Salary annually in conjunction with its regular review of employee
     salaries and make such adjustments, if any, to his Base Salary as the
     Compensation Committee shall deem appropriate.

     (b)  Other Benefits.  Mr. Francis shall be entitled to paid time off and
          --------------
     holiday pay in accordance with Crestline's policies in effect from time to
     time and to participate in such life, health, and disability insurance,
     pension, deferred compensation and incentive plans, stock options and
     awards, performance bonuses and other benefits as Crestline extends, as a
     matter of policy, to its executive employees.

     (c)  Reimbursement of Business Expenses. Crestline shall reimburse Mr.
          ----------------------------------
     Francis for all reasonable travel, entertainment and other expenses
     incurred or paid by Mr. Francis in connection with, or related to, the
     performance of his duties, responsibilities or services under this
     Agreement, upon presentation by Mr. Francis of documentation, expense
     statements, vouchers, and/or such other supporting information as Crestline
     may reasonably request.

5. Termination
   -----------

     (a)  Termination by Crestline for Cause. Crestline may terminate Mr.
          ----------------------------------
     Francis' employment under this Agreement at any time for Cause, upon
     written notice by

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     Crestline to Mr. Francis. For purposes of this Agreement, "Cause" for
     termination shall mean any of the following: (i) the conviction of Mr.
     Francis of, or the entry of a plea of guilty or nolo contendere by Mr.
     Francis to, any felony; (ii) fraud, misappropriation or embezzlement by Mr.
     Francis; (iii) Mr. Francis' willful failure or gross negligence in the
     performance of his assigned duties for Crestline, which failure or
     negligence continues for more than thirty (30) calendar days following Mr.
     Francis' receipt of written notice of such willful failure or gross
     negligence; (iv) Mr. Francis' breach of his fiduciary duty to Crestline;
     (v) any act or omission of Mr. Francis that has a demonstrated and material
     adverse impact on Crestline's reputation for honesty and fair dealing; or
     (vi) the breach by Mr. Francis of any material term of this Agreement.

     (b)  Termination by Crestline or Mr. Francis Without Cause. Either party
          -----------------------------------------------------
     may terminate this Agreement at any time without Cause, upon giving the
     other party sixty (60) days written notice. At Crestline's sole discretion,
     it may substitute sixty (60) days salary in lieu of notice. Any salary paid
     to Mr. Francis in lieu of notice shall not be offset against any
     entitlement Mr. Francis may have to the Severance Payment pursuant to
     Section 6(b).

     (c)  Termination by Mr. Francis for Good Reason. Mr. Francis may terminate
          ------------------------------------------
     his employment under this Agreement at any time for Good Reason, upon
     written notice by Mr. Francis to Crestline. For purposes of this Agreement,
     "Good Reason" for termination shall mean (i) the assignment to Mr. Francis
     of substantial duties or responsibilities inconsistent with Mr. Francis'
     position at Crestline, or any other action by Crestline which results in a
     substantial diminution of Mr. Francis' duties or responsibilities; (ii) a
     requirement by Crestline that Mr. Francis work principally from a location
     outside the 75-mile radius specified in Section 2(b); (iii) Crestline's
     failure to pay Mr. Francis any Base Salary or other compensation to which
     he is entitled, other than an inadvertent failure which is remedied by
     Crestline within thirty (30) days after receipt of written notice thereof
     from Mr. Francis (or five (5) days for failure to pay Base Salary); or (iv)
     a substantial reduction in Mr. Francis' aggregate Base Salary and other
     compensation taken as a whole, excluding any reductions caused by the
     failure to achieve performance targets.

     (d)  Mr. Francis' Death or Disability. Mr. Francis' employment shall
          --------------------------------
     terminate immediately upon his death or, upon written notice as set forth
     below, his disability. As used in this Agreement, "Disability" shall mean
     such physical or mental impairment as would render Mr. Francis eligible to
     receive benefits under the long-term disability insurance plan then made
     available by Crestline to its employees. If the Employment Period is
     terminated by reason of Mr. Francis' Disability, either party shall give
     thirty (30) days advance written notice to that effect to the other.

6. Effect of Termination
   ---------------------

     (a)  General. Regardless of the reason for any termination of this
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     Agreement, Mr. Francis shall be entitled to (i) payment of any unpaid
     portion of his Base Salary through the effective date of termination; (ii)
     reimbursement for any outstanding reasonable business expense he has
     incurred in performing his duties hereunder; (iii) continued

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     insurance benefits to the extent required by law; and (iv) payment of any
     vested but unpaid rights as required independent of this Agreement by the
     terms of any bonus or other incentive pay or stock plan, or any other
     employee benefit plan or program of Crestline.

     (b)  Termination by Crestline for Cause or by Mr. Francis Without Good
          -----------------------------------------------------------------
     Reason. If Crestline terminates Mr. Francis' employment for Cause or Mr.
     ------
     Francis terminates his employment without Good Reason, Mr. Francis shall
     have no rights or claims against Crestline except to receive the payments
     and benefits described in Section 6(a).

     (c)  Termination by Crestline Without Cause or by Mr. Francis for Good
          -----------------------------------------------------------------
     Reason. If Crestline terminates Mr. Francis' employment without Cause
     ------
     pursuant to Section 5(b), or Mr. Francis terminates his employment for Good
     Reason pursuant to Section 5(c), Mr. Francis shall be entitled to receive,
     in addition to the items referenced in Section 6(a), the following:

          (i)   an amount equal to his Base Salary at the rate in effect on his
          last day of employment for a period of twelve (12) months (the
          "Severance Payment"). The Severance Payment shall be paid in
          approximately equal installments on Crestline's regularly scheduled
          payroll dates, subject to all legally required payroll deductions and
          withholdings for sums owed by Mr. Francis to Crestline;

          (ii)  continued payment by Crestline for Mr. Francis' life, health and
          disability insurance coverage during the twelve (12) month severance
          period referenced in Section 6(c)(i) to the same extent that Crestline
          paid for such coverage immediately prior to the termination of Mr.
          Francis' employment and subject to the eligibility requirements and
          other terms and conditions of such insurance coverage, provided that
          if any such insurance coverage shall become unavailable during the
          twelve (12) month severance period, Crestline thereafter shall be
          obliged only to pay to Mr. Francis an amount equal to the employer
          premiums for such insurance for the remainder of such severance
          period;

          (iii) vesting as of the last day of his employment in any unvested
          portion of any stock option and any restricted stock previously issued
          to Mr. Francis; and

          (iv)  a pro-rata share of any bonus to which Mr. Francis otherwise
          would have been entitled for the fiscal year in which his employment
          terminates without Cause or for Good Reason. Such pro-rated bonus
          shall be paid to Mr. Francis within sixty (60) days following the end
          of the fiscal year in which such termination occurs.

     (d)  Termination Following Change in Control.
          ---------------------------------------

          (i)   If, by giving sixty (60) days written notice commencing within
          twelve (12) months following a Change in Control, Crestline (or its
          successor) terminates Mr. Francis' employment without Cause or Mr.
          Francis terminates his employment for any reason, he shall be entitled
          to the Severance Payment, continued insurance benefits, accelerated
          vesting and pro-rated bonus set forth in Section 6(c). For purposes of
          this Agreement, a "Change in Control" shall mean any of the

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     following events:

               (A)  The ownership or acquisition (whether by a merger
               contemplated by Section 6(d)(i)(B) below, or otherwise)
               by any Person (other than a Qualified Affiliate), in a
               single transaction or a series of related or unrelated
               transactions, of Beneficial Ownership of thirty-five
               percent (35%) or more of (1) Crestline's outstanding
               common stock (the "Common Stock") or (2) the combined
               voting power of Crestline's outstanding securities
               entitled to vote generally in the election of directors
               (the "Outstanding Voting Securities");

               (B)  The merger or consolidation of Crestline with or
               into any other Person other than a Qualified Affiliate,
               if, immediately following the effectiveness of such
               merger or consolidation, Persons who did not
               Beneficially Own Outstanding Voting Securities
               immediately before the effectiveness of such merger or
               consolidation directly or indirectly Beneficially Own
               more than thirty-five percent (35%) of the outstanding
               shares of voting stock of the surviving entity of such
               merger or consolidation (including for such purpose in
               both the numerator and denominator, shares of voting
               stock issuable upon the exercise of then outstanding
               rights (including conversion rights), options or
               warrants) ("Resulting Voting Securities"), provided
               that, for purposes of this Section 6(d)(i)(B), if a
               person who Beneficially Owned Voting Securities
               immediately before the merger or consolidation
               Beneficially Owns a greater number of the Resulting
               Voting Securities immediately after the merger or
               consolidation than the number the Person received
               solely as a result of the merger or consolidation, that
               greater number will be treated as held by a Person who
               did not Beneficially Own Voting Securities before the
               merger or consolidation, and provided further that such
               merger or consolidation would also constitute a Change
               in Control if it would satisfy the foregoing test if
               rights, options and warrants were not included in the
               calculation;

               (C)  Any one or a series of related sales or
               conveyances to any Person other than any one or more
               Qualified Affiliates of all or substantially all of the
               assets of Crestline, but excluding sales or conveyances
               in connection with either the normal expiration or
               other termination of Crestline's hotel leases with Host
               Marriott Corporation or the affiliates of Host Marriott
               Corporation, or the termination of such hotel leases
               following a Tax Law change, as defined herein;

               (D)  Incumbent directors cease to be a majority of the
               members of the Board, where an "Incumbent Director" is
               (1) an individual

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               who is a member of the Board on the effective date of
               this Agreement or (2) any new director whose
               appointment or election by the Board or whose
               nomination for election by the stockholders was
               approved by a majority of the persons who were already
               Incumbent Directors, other than any individual who
               assumes office initially as a result of an actual or
               threatened election contest with respect to the
               election or removal of directors or other actual or
               threatened solicitation of proxies or consents by or on
               behalf of a Person other than the Board;

               (E)  Any other event that the Board determines, in its
               discretion and with reference to "Change in Control,"
               would materially alter the structure or business of the
               Company or its ownership; or

               (F)  A Change in Control shall also be deemed to have
               occurred immediately before the completion of a tender
               offer for Crestline's securities representing more than
               thirty five percent (35%) of the Outstanding
               Securities, other than a tender offer by a Qualified
               Affiliate.

               (G)  For purposes of this Agreement, the following
               definitions shall apply:

                    (1)  "Beneficial Ownership," "Beneficially Owned"
                    and "Beneficially Owns" shall have the meanings
                    provided in Exchange Act Rule 13d-3;

                    (2)  "Exchange Act" shall mean the Securities
               Exchange Act of 1934, as amended;

                    (3)  "Person" shall mean any individual, entity,
               or group (within the meaning of Section 13(d)(3) or
               14(d)(2) of the Exchange Act), including any natural
               person, corporation, trust, association, company,
               partnership, joint venture, limited liability company,
               legal entity of any kind, government, or political
               subdivision, agency or instrumentality of a government,
               as well as two or more Persons acting as a partnership,
               limited partnership, syndicate or other group for the
               purpose of acquiring, holding or disposing of Crestline
               securities; and

               (4)  "Qualified Affiliate" shall mean (i) any directly
               or indirectly wholly owned subsidiary of Crestline,
               (ii) any employee benefit plan (or related trust)
               sponsored or maintained by Crestline or by any entity
               controlled by Crestline; or (iii) any Person consisting
               of one or more individuals who are then Crestline's
               Chief Executive Officer or any other named executive
               officer (as defined in Item 402 of Regulation S-K under
               the

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               Securities Act of 1933) of Crestline as indicated in
               its most recent securities filing made before the date
               of the transaction.

          (ii) (A) In the event that any Severance Payment, insurance benefits,
          accelerated vesting, pro-rated bonus or other benefit payable to Mr.
          Francis shall (1) constitute "parachute payments" within the meaning
          of Section 280G (as it may be amended or replaced) of the Internal
          Revenue Code (the "Code") ("Parachute Payments") and (2) be subject to
          the excise tax imposed by Section 4999 (as it may be amended or
          replaced) of the Code ("the Excise Tax"), then Crestline shall pay to
          Mr. Francis an additional amount (the "Gross-Up Amount") such that the
          net benefits retained by Mr. Francis after the deduction of the Excise
          Tax (including interest and penalties) and any federal, state or local
          income taxes (including interest and penalties) upon the Gross-Up
          Amount shall be equal to the benefits that would have been delivered
          hereunder had the Excise Tax not been applicable and the Gross-Up
          Amount not paid.

               (B)  For purposes of determining the Gross-Up Amount: (1)
          Parachute Payments provided under arrangements with Mr. Francis other
          than the Plan and this Agreement, if any, shall be taken into account
          in determining the total amount of Parachute Payments received by Mr.
          Francis so that the amount of excess Parachute Payments that are
          attributable to provisions of the Plan and Agreement is maximized; and
          (2) Mr. Francis shall be deemed to pay federal, state and local income
          taxes at the highest marginal rate of taxation for Mr. Francis'
          taxable year in which the Parachute Payments are includable in Mr.
          Francis' income for purposes of federal, state and local income
          taxation.

               (C)  The determination of whether the Excise Tax is payable, the
          amount thereof, and the amount of any Gross-Up Amount shall be made in
          writing in good faith by a nationally recognized independent certified
          public accounting firm approved by Crestline and Mr. Francis, such
          approval not to be unreasonably withheld (the "Accounting Firm"). If
          such determination is not finally accepted by the Internal Revenue
          Service (or state or local revenue authorities) on audit, then
          appropriate adjustments shall be computed based upon the amount of
          Excise Tax and any interest or penalties so determined; provided,
          however, that Mr. Francis in no event shall owe Crestline any interest
          on any portion of the Gross-Up Amount that is returned to Crestline.
          For purposes of making the calculations required by this Section
          6(d)(ii), to the extent not otherwise specified herein, reasonable
          assumptions and approximations may be made with respect to applicable
          taxes and reasonable, good faith interpretations of the Code may be
          relied upon. Crestline and Mr. Francis shall furnish such information
          and documents as may be reasonably requested in connection with the
          performance of the calculations under this Section 6(d)(ii). Crestline
          shall bear all costs incurred in connection with the performance of
          the calculations contemplated by this Section 6(d)(ii). Crestline
          shall pay the Gross-Up Amount to Mr. Francis no later than sixty (60)
          days following receipt of the Accounting Firm's determination of the
          Gross-Up Amount.

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     (e)  Termination Following Tax Law Change.  If, by giving sixty (60) days
          ------------------------------------
     written notice commencing within twelve (12) months following a Tax Law
     Change, Crestline terminates Mr. Francis' employment without Cause or Mr.
     Francis terminates his employment for any reason, he shall be entitled to
     the Severance Payment, accelerated vesting and pro-rated bonus set forth in
     Section 6(c).  For purposes of this Agreement, a "Tax Law Change" shall
     mean any change in the Code (including, without limitation, a change in the
     United States Treasury regulations promulgated thereunder), or in the
     judicial or administrative interpretations of the Code, which would permit
     Host Marriott Corporation or another entity or entities in which Host
     Marriott Corporation owns a substantial economic interest to operate all or
     substantially all the hotels owned by Host Marriott Corporation or such
     affiliated entity or entities without adversely affecting Host Marriott
     Corporation's qualification for taxation as a real estate investment trust
     under applicable Code provisions.

     (f)  Termination In the Event of Death or Disability.
          -----------------------------------------------

          (i)  If Mr. Francis' employment terminates in the event of his death,
          any unvested portion of any stock option and any restricted stock
          previously issued to Mr. Francis shall become fully vested as of the
          date of his death. In addition, Mr. Francis' estate shall be entitled
          to receive a pro-rata share of any performance bonus to which he
          otherwise would have been entitled for the fiscal year in which his
          death occurs.

          (ii) In the event Mr. Francis' employment terminates due to his
          Disability, he shall be entitled to receive his Base Salary until such
          date as he shall commence receiving disability benefits pursuant to
          any long-term disability insurance provided to him by Crestline. In
          addition, as of the effective date of the termination notice specified
          in Section 5(d), Mr. Francis shall vest in any unvested portion of any
          stock option and any restricted shares previously granted to him by
          Crestline. Mr. Francis also shall be entitled to receive a pro-rata
          share of any performance bonus to which he otherwise would have been
          entitled for the fiscal year in which his employment terminates due to
          his Disability.

7.  Confidentiality
    ---------------

     (a)  Definition of Proprietary Information. Mr. Francis acknowledges that
          -------------------------------------
     he may be furnished or may otherwise receive or have access to confidential
     information which relates to Crestline's past, present or future business
     activities, strategies, services or products, research and development;
     financial analysis and data; improvements, inventions, processes,
     techniques, designs or other technical data; profit margins and other
     financial information; fee arrangements; terms and contents of leases,
     asset management agreements and other contracts; tenant and vendor lists or
     other compilations for marketing or development; confidential personnel and
     payroll information; or other information regarding administrative,
     management, financial, marketing, leasing or sales activities of Crestline,
     or of a third party which provided proprietary information to Crestline on
     a confidential basis. All such information, including any materials or
     documents containing such information, shall be considered by

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     Crestline and Mr. Francis as proprietary and confidential (the "Proprietary
     Information").

     (b)  Exclusions. Notwithstanding the foregoing, Proprietary Information
          ----------
     shall not include (i) information disseminated by Crestline to third
     parties in the ordinary course of business; or (ii) information in the
     public domain not as a result of a breach of any duty by Mr. Francis or any
     other person.

     (c)  Obligations.  Both during and after the Employment Period, Mr. Francis
          -----------
     agrees to preserve and protect the confidentiality of the Proprietary
     Information and all physical forms thereof, whether disclosed to him before
     this Agreement is signed or afterward. In addition, Mr. Francis shall not
     (i) disclose or disseminate the Proprietary Information to any third party,
     including employees of Crestline without a legitimate business need to
     know; (ii) remove the Proprietary Information from Crestline's premises
     without a valid business purpose; or (iii) use the Proprietary Information
     for his own benefit or for the benefit of any third party.

     (d)  Return of Proprietary Information. Mr. Francis acknowledges and agrees
          ---------------------------------
     that all the Proprietary Information used or generated during the course of
     working for Crestline is the property of Crestline. Mr. Francis agrees to
     deliver to Crestline all documents and other tangibles (including diskettes
     and other storage media) containing the Proprietary Information at any time
     upon request by the Board of Directors during his employment and
     immediately upon termination of his employment.

8. Noncompetition
   --------------

     (a)  Restriction on Competition.  For twelve (12) months following the
          --------------------------
     expiration or termination of Mr. Francis' employment by Crestline for any
     reason (the "Restricted Period"), Mr. Francis agrees not to engage,
     directly or indirectly, as an owner, employee, consultant, partner,
     principal, agent, representative, stockholder, or in any other individual,
     corporate or representative capacity, in any of the following: (i) acting
     as a lessee for public or private real estate investment trusts; (ii) asset
     management for hotel, independent living, assisted living or health-care
     communities, or (iii) any other business that Crestline conducts as of the
     date of Mr. Francis' termination of employment; provided, however, Mr.
     Francis shall not be deemed to have violated this Section 8(a) solely by
     reason of his ownership of five percent (5%) or less of the outstanding
     stock of any publicly traded corporation or other entity.

     (b)  Non-Solicitation of Clients. During the Restricted Period, Mr. Francis
          ---------------------------
     agrees not to solicit, directly or indirectly, on his own behalf or on
     behalf of any other person(s), any client of Crestline to whom Crestline
     had provided services at any time during Mr. Francis' employment with
     Crestline in any line of business that Crestline conducts as of the date of
     Mr. Francis' termination of employment or that Crestline is actively
     soliciting, for the purpose of marketing or providing any service
     competitive with any service then offered by Crestline.

     (c)  Non-Solicitation of Employees. During the Restricted Period, Mr.
          -----------------------------
     Francis agrees that he will not, directly or indirectly, hire or attempt to
     hire or cause any business, other

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<PAGE>

     than an affiliate of Crestline, to hire any person who is then or was at
     any time during the preceding six (6) months an employee of Crestline and
     who is at the time of such hire or attempted hire, or was at the date of
     such employee's separation from Crestline, either (i) in Grade Level 56 or
     above, or (ii) a Crestline director, vice president, senior vice president
     or executive vice president.

     (d)  Acknowledgement.  Mr. Francis acknowledges that he will acquire much
          ---------------
     Proprietary Information concerning the past, present and future business of
     Crestline as the result of his employment, as well as access to the
     relationships between Crestline and its clients and employees. Mr. Francis
     further acknowledges that the business of Crestline is very competitive and
     that competition by him in that business during his employment, or after
     his employment terminates, would severely injure Crestline. Mr. Francis
     understands and agrees that the restrictions contained in this Section 8
     are reasonable and are required for Crestline's legitimate protection, and
     do not unduly limit his ability to earn a livelihood.

     (e)  Exception.  Notwithstanding any other provision of this Agreement, Mr.
          ---------
     Francis shall not be subject to the provisions of Section 8(a)-(d) of this
     Agreement if his employment is terminated by Crestline (or its successor)
     or Mr. Francis following a Change in Control in accordance with Section
     6(d) or following a Tax Law Change in accordance with Section 6(e) of this
     Agreement.

9.  Employee Representation
    -----------------------

     Mr. Francis represents and warrants to Crestline that he is not now under
any obligation of a contractual or other nature to any person, business or other
entity which is inconsistent or in conflict with this Agreement or which would
prevent him from performing his obligations under this Agreement.

10. Arbitration
    -----------

     (a)  Any disputes between Crestline and Mr. Francis in any way concerning
     Mr. Francis' employment, the termination of his employment, this Agreement
     or its enforcement shall be submitted at the initiative of either party to
     mandatory arbitration in Maryland before a single arbitrator pursuant to
     the Commercial Arbitration Rules of the American Arbitration Association,
     or its successor, then in effect. The decision of the arbitrator shall be
     rendered in writing, shall be final, and may be entered as a judgment in
     any court in the State of Maryland. The parties irrevocably consent to the
     jurisdiction of the federal and state courts located in Maryland for this
     purpose. Each party shall be responsible for its or his own costs incurred
     in such arbitration and in enforcing any arbitration award, including
     attorneys' fees and expenses.

     (b)  Notwithstanding the foregoing, Crestline, in its sole discretion, may
     bring an action in any court of competent jurisdiction to seek injunctive
     relief and such other relief as Crestline shall elect to enforce Mr.
     Francis' covenants in Sections 7 and 8 of this Agreement.

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11. Miscellaneous
    -------------

     (a)  Notices. All notices required or permitted under this Agreement shall
          -------
     be in writing and shall be deemed effective (i) upon personal delivery,
     (ii) upon deposit with the United States Postal Service, by registered or
     certified mail, postage prepaid, or (iii) in the case of facsimile
     transmission or delivery by nationally recognized overnight deliver
     service, when received, addressed as follows:

          (i)  If to Crestline, to:

                    Crestline Capital Corporation
                    6600 Rockledge Drive
                    Suite 600
                    Bethesda, MD 20817
                    Attention:  Tracy M.J. Colden
                    Fax No. 240/694-2040

          (ii) If to Mr. Francis, to:

                    Mr. James L. Francis
                    19205 Autumn Maple Lane
                    Gaithersburg, MD 20879

          or to such other address or addresses as either party shall designate
          to the other in writing from time to time by like notice.

     (b)  Pronouns.  Whenever the context may require, any pronouns used in this
          --------
     Agreement shall include the corresponding masculine, feminine or neuter
     forms, and the singular forms of nouns and pronouns shall include the
     plural, and vice versa.

     (c)  Entire Agreement. This Agreement constitutes the entire agreement
          ----------------
     between the parties and supersedes all prior agreements and understandings,
     whether written or oral, relating to the subject matter of this Agreement.

     (d)  Amendment. This Agreement may be amended or modified only by a written
          ---------
     instrument executed by both Crestline and Mr. Francis.

     (e)  Governing Law.  This Agreement shall be construed, interpreted and
          -------------
     enforced in accordance with the laws of the State of Maryland, without
     regard to its conflicts of laws principles.

     (f)  Successors and Assigns. This Agreement shall be binding upon and inure
          ----------------------
     to the benefit of both parties and their respective successors and assigns,
     including any entity with which or into which Crestline may be merged or
     which may succeed to its assets or business or any entity to which
     Crestline may assign its rights and obligations under this Agreement;
     provided, however, that the obligations of Mr. Francis are personal and
     shall not be assigned or delegated by him.

                                      -11-
<PAGE>

     (g)  Waiver. No delays or omission by Crestline or Mr. Francis in
          ------
     exercising any right under this Agreement shall operate as a waiver of that
     or any other right. A waiver or consent given by Crestline or Mr. Francis
     on any one occasion shall be effective only in that instance and shall not
     be construed as a bar or waiver of any right on any other occasion.

     (h)  Captions. The captions appearing in this Agreement are for convenience
          --------
     of reference only and in no way define, limit or affect the scope or
     substance of any section of this Agreement.

     (i)  Severability. In case any provision of this Agreement shall be held by
          ------------
     a court or arbitrator with jurisdiction over the parties to this Agreement
     to be invalid, illegal or otherwise unenforceable, such provision shall be
     restated to reflect as nearly as possible the original intentions of the
     parties in accordance with applicable law, and the validity, legality and
     enforceability of the remaining provisions shall in no way be affected or
     impaired thereby.

     (j)  Counterparts. This Agreement may be executed in two or more
          ------------
     counterparts, each of which shall be deemed an original but all of which
     together shall constitute one and the same instrument.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first above written.

JAMES L. FRANCIS                           CRESTLINE CAPITAL CORPORATION

________________________________           By: ________________________________
                                               Tracy M. J. Colden
                                               Senior Vice President

                                      -12-<PAGE>

                                                                   Exhibit 10.18

                             EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the "Agreement") is made this 14th day of March,
2000, by Crestline Hotels & Resorts, Inc., a corporation formed under the laws
of the State of Delaware and a wholly owned subsidiary of Crestline Capital
Corporation ("Crestline") with its principal place of business at 6600 Rockledge
Drive, Suite 600, Bethesda, MD 20817 ("CHRI"), and David Durbin, residing at
1219 Potomac School Road, McLean, Virginia 22101 ("Mr. Durbin").

     WHEREAS, CHRI wishes to purchase substantially all of the assets used in,
or useful to, the operation of that certain hotel management and leasing
business heretofore conducted by one or more of Durbin Companies, Inc.,
Durbin/Haralson Companies, Inc., Durbin Hotel Group, Inc., Hotel on the Hill,
LLC, Beachside Hospitality, Inc., Singer Hospitality Management, Inc., PBG
Hospitality Management, Inc., Jacksonville Hotel Group, Durbin Harrisburg, Inc.,
Greenville Hospitality Management, Inc. and Jacksonville Hospitality, Inc.
(collectively, and jointly and severally, "the Durbin Group"), all on the terms
and conditions set forth in the Asset Purchase Agreement by and among CHRI, the
Durbin Group, and Mr. Durbin, Jean Durbin, David Durbin, Michael Andrews and
Thomas Baker of even date herewith (the "Asset Purchase Agreement");

     WHEREAS, Mr. Durbin is a shareholder in and officer of the Durbin Group;

     WHEREAS, as a material inducement and precondition to CHRI's consummation
of such acquisition and Mr. Durbin's execution of the Asset Purchase Agreement,
the parties have agreed to execute this Agreement and to be bound by the terms
and conditions hereof; and

     WHEREAS, CHRI desires to employ Mr. Durbin and to have the benefit of his
skills and services, and Mr. Durbin desires to be employed by CHRI, on the terms
and conditions set forth herein;
<PAGE>

     NOW THEREFORE, in consideration of the mutual covenants and promises
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the parties hereto, the parties
agree as follows:

1. Term of Employment
   ------------------

     CHRI hereby employs Mr. Durbin, and Mr. Durbin hereby accepts employment
with CHRI, upon the terms and conditions set forth in this Agreement.  Unless
terminated earlier pursuant to Section 5, Mr. Durbin's employment pursuant to
this Agreement shall be for the three (3)-year period commencing on the date
hereof (the "Commencement Date"). The period during which Mr. Durbin is employed
pursuant to this Agreement is the "Employment Period."

2. Title; Duties
   -------------

     Mr. Durbin shall be employed as an Executive Vice President of CHRI.  Mr.
Durbin shall report to the President and Chief Executive Officer of CHRI.  Mr.
Durbin shall perform such services consistent with his position as Executive
Vice President of CHRI as may be assigned to him from time to time by the
President and Chief Executive Officer of CHRI and are consistent with the bylaws
of CHRI, including, but not limited to, overall management of the affairs of
CHRI.

3. Extent of Services
   --------------------

     (a)  General.  Mr. Durbin agrees not to engage in any business activities
          -------
     during the Employment Period except those which are for the sole benefit of
     CHRI, and to devote his entire business time, attention, skill and effort
     to the performance of his duties under this Agreement.  Notwithstanding the
     foregoing, Mr. Durbin may engage in personal investment activities provided
     that those activities do not impair the performance of his responsibilities
     under this Agreement.  With the prior approval of the Board of Directors of
     CHRI, Mr. Durbin may serve on the boards of directors of other
     corporations.  Mr. Durbin shall perform his duties to the best of his
     ability, shall adhere to CHRI's published policies and procedures provided
     to him from time to time, and shall use his best efforts to promote CHRI's
     interests, reputation, business and welfare.

     (b)  Corporate Opportunities.  Mr. Durbin agrees that he will not take
          -----------------------
     personal

                                      -2-
<PAGE>

     advantage of any business opportunities which arise during his employment
     with CHRI and which may be of benefit to CHRI unless he shall have first
     received the approval of the President and Chief Executive Officer of
     Crestline after promptly disclosing to the President and Chief Executive
     Officer of Crestline all material facts regarding such opportunities.

4. Compensation and Benefits
   ---------------------------

     (a)  Salary. CHRI shall pay Mr. Durbin a gross base annual salary (as it
          ------
     may be adjusted from time to time, the "Base Salary") of $250,000 during
     the Employment Period. The Base Salary shall be payable in arrears in
     approximately equal semi-monthly installments (except that the first and
     last such semi-monthly installments may be prorated if necessary) on CHRI's
     regularly scheduled payroll dates, minus such deductions as may be required
     by law or reasonably requested by Mr. Durbin. Crestline's Compensation
     Policy Committee (the "Compensation Committee") shall review Mr. Durbin's
     Base Salary in conjunction with the regular review of employee salaries and
     make such adjustments, if any, to the Base Salary as the Compensation
     Committee shall deem appropriate.

     (b)  Incentive Bonus.  Mr. Durbin will be eligible to participate in CHRI's
          ---------------
     Annual Incentive Plan (the "Annual Incentive Plan"), with the opportunity
     to earn a bonus (the "Bonus") if he meets certain financial and
     discretionary measures set forth in the Annual Incentive Plan.  The Bonus
     will be expressed as a percentage of Base Salary, and will be calculated as
     follows:  twenty-five percent (25%) at threshold, fifty percent (50%) at
     target, and seventy-five percent (75%) at maximum.  Mr. Durbin's Bonus will
     be based on the goals set by the Compensation Committee for the executive
     group of Crestline.  Notwithstanding the foregoing, Mr. Durbin shall be
     guaranteed a minimum Bonus of fifty percent (50%) of Base Salary for year
     2000.

     (c)  Stock.  During the first quarter of 2000, Mr. Durbin will be awarded
          -----
     nonqualified stock options (the "Stock Options") to purchase 100,000 shares
     of Crestline's common stock and granted 15,000 shares of restricted
     Crestline stock (the "Restricted Stock").  The exercise price of the Stock
     Options will be determined under the Crestline Capital

                                      -3-
<PAGE>

     Corporation 1998 Comprehensive Stock Incentive Plan (the "Stock Incentive
     Plan") as of the date of grant. Mr. Durbin may elect to satisfy his minimum
     statutory tax withholding obligation with respect to the Restricted Stock
     by having CHRI (or Crestline) withhold shares in accordance with Article
     XIII of the Stock Incentive Plan. The Stock Options and Restricted Stock
     will vest in accordance with the following schedule:

                                              Vested        Vested Shares of
          Months of Continuous Employment     Options       Restricted Stock
          -------------------------------     -------       ----------------
                         12                    33,333             3,000
                         24                    33,333             3,000
                         36                    33,334             3,000
                         48                                       3,000
                         60                                       3,000

     Mr. Durbin will be eligible for future grants or programs under the Stock
     Incentive Plan at the sole discretion of the Compensation Committee or any
     subcommittee thereof that is responsible for administering the Stock
     Incentive Plan and pursuant to such terms as the Compensation Committee or
     such subcommittee shall determine.

     (d)  Other Benefits.  Mr. Durbin will be eligible to participate in the
          --------------
     employee benefit plans of CHRI (provided that such plans are not materially
     different from those of Crestline), including the Health Plan, Dental Plan,
     Flexible Spending Accounts, Employee Stock Purchase, Executive Deferred
     Compensation Plan, Retirement and Savings Plan, Group Term Life Plan,
     Disability Plan, and Paid Time Off in accordance with the terms of those
     plans and to the same extent they are available to CHRI's executive group;
     provided, however, that Mr. Durbin shall not be eligible to participate in
     any severance benefit plan or program of CHRI or Crestline.

     (e)  Reimbursement of Business Expenses. CHRI shall reimburse Mr. Durbin
          ----------------------------------
     for all reasonable travel, entertainment and other expenses incurred or
     paid by Mr. Durbin in connection with, or related to, the performance of
     his duties, responsibilities or services under this Agreement, upon
     presentation by Mr. Durbin of documentation, expense statements, vouchers,
     and/or such other supporting information as CHRI may reasonably

                                      -4-
<PAGE>

     request consistent with CHRI's business expense policy.

5. Termination
   -----------

     (a)  Termination by CHRI for Cause. CHRI may terminate Mr. Durbin's
          -----------------------------
     employment under this Agreement at any time for Cause, upon written notice
     by CHRI to Mr. Durbin. For purposes of this Agreement, "Cause" for
     termination shall mean any of the following: (i) the conviction of Mr.
     Durbin of, or the entry of a plea of guilty or nolo contendere by Mr.
     Durbin to, any felony; (ii) fraud, misappropriation or embezzlement by Mr.
     Durbin with regard to the assets of CHRI, Crestline, or any of their
     affiliates; (iii) Mr. Durbin's willful failure or gross negligence in the
     performance of his duties for CHRI as assigned to him in accordance with
     this Agreement, which failure or negligence continues for more than thirty
     (30) calendar days following Mr. Durbin's receipt of written notice of such
     willful failure or gross negligence; (iv) Mr. Durbin's breach of his
     fiduciary duty to CHRI, Crestline, or any of their affiliates; (v) the
     breach by Mr. Durbin of Sections 7 or 8 of this Agreement; (vi) any act or
     omission of Mr. Durbin that has a demonstrated and material adverse impact
     on CHRI's reputation for honesty and fair dealing; or (vii) the breach by
     Mr. Durbin of any other material term of this Agreement.

     (b)  Termination by CHRI or Mr. Durbin Without Cause.  Either party may
          -----------------------------------------------
     terminate this Agreement at any time without Cause, upon giving the other
     party thirty (30) days written notice.  At CHRI's sole discretion, it may
     substitute thirty (30) days salary in lieu of notice. Any salary paid to
     Mr. Durbin in lieu of notice shall not be offset against any entitlement
     Mr. Durbin may have to the Early Termination Payment pursuant to Section
     6(c).

     (c)  Termination by Mr. Durbin for Good Reason. Mr. Durbin may terminate
          -----------------------------------------
     his employment under this Agreement at any time for Good Reason, upon
     written notice by Mr. Durbin to CHRI given no later than sixty (60) days
     following the event constituting Good Reason. For purposes of this
     Agreement, "Good Reason" for termination shall mean (i) the assignment to
     Mr. Durbin of substantial duties or responsibilities inconsistent with Mr.
     Durbin's position at CHRI, or any other action by CHRI which results in a
     substantial diminution of Mr. Durbin's duties or responsibilities; (ii)
     CHRI's

                                      -5-
<PAGE>

     failure to pay Mr. Durbin any Base Salary or other compensation to which he
     is entitled, other than an inadvertent failure which is remedied by CHRI
     within thirty (30) days after receipt of written notice thereof from Mr.
     Durbin (or five (5) days for failure to pay Base Salary); (iii) any
     reduction in Base Salary or a significant reduction in Mr. Durbin's
     aggregate other compensation, excluding any reductions caused by the
     failure to achieve performance targets; or (iv) a Change in Control. For
     purposes of this Agreement, a "Change in Control" shall mean any of the
     following events: (A) any Person (as that term is used in Sections 13(d)
     and 14(d)(2) of the Securities Exchange Act of 1934 (the "Exchange Act")
     other than Crestline or a Qualified Affiliate is or becomes the beneficial
     owner (within the meaning of Rule 13d-3 promulgated under the Exchange
     Act), directly or indirectly, of more than 50% of the combined voting power
     of CHRI's then-outstanding voting securities; (B) the merger or
     consolidation of CHRI with or into any other entity, where after such
     merger or consolidation any Person other than Crestline or a Qualified
     Affiliate owns more than 50% of the combined voting power of the continuing
     or surviving entity's voting securities outstanding immediately after such
     merger or consolidation; (C) the approval by the stockholders of CHRI of a
     plan of complete liquidation of CHRI, other than a liquidation into
     Crestline or a Qualified Affiliate, or (D) the sale of all or substantially
     all of the assets of CHRI to any person other than Crestline or a Qualified
     Affiliate. For purposes of this Agreement, "Qualified Affiliate" shall mean
     any direct or indirect subsidiary of Crestline, any employee benefit plan
     (or related trust) sponsored or maintained by Crestline or by any entity
     controlled by Crestline, or any person consisting of one or more
     individuals who are then Crestline's Chief Executive Officer or any other
     named executive officer (as defined in Item 402 of Regulation S-K under the
     Securities Act of 1933) of Crestline as indicated in its most recent
     securities filing made before the date of the transaction.

     (d)  Mr. Durbin's Death or Disability. Mr. Durbin's employment shall
          --------------------------------
     terminate immediately upon his death or, upon written notice as set forth
     below, his Disability. As used in this Agreement, "Disability" shall mean
     such physical or mental impairment as would render Mr. Durbin eligible to
     receive benefits under the long-term disability insurance plan offered by
     CHRI in which Mr. Durbin shall have elected to participate. If either party
     terminates Mr. Durbin's employment because of Mr. Durbin's Disability, the

                                      -6-
<PAGE>

     terminating party shall give the other party thirty (30) days advance
     written notice to that effect.

6. Effect of Termination
   ---------------------

     (a)  General. Regardless of the reason for any termination of this
          -------
     Agreement, Mr. Durbin shall be entitled to (i) payment of any unpaid
     portion of his Base Salary through the effective date of termination; (ii)
     reimbursement for any outstanding reasonable business expense he has
     incurred in performing his duties hereunder; (iii) continued insurance
     benefits to the extent required by law; (iv) payment of any vested but
     unpaid rights as required by the terms of any employee benefit plan or
     program of CHRI or Crestline in which Mr. Durbin shall be entitled to
     participate pursuant to Section 4(d) of this Agreement; and (v) retention
     of any stock options or restricted stock in which Mr. Durbin shall already
     have vested prior to the effective date of termination, subject to the
     termination schedule for stock options set forth in Section 4(c).

     (b)  Termination by CHRI for Cause; Expiration of Agreement. If CHRI
          ------------------------------------------------------
     terminates Mr. Durbin's employment for Cause or Mr. Durbin's employment
     ends at the expiration of three years from the Commencement Date, Mr.
     Durbin shall have no rights or claims against CHRI, Crestline or their
     affiliates, except to receive the payments and benefits described in
     Section 6(a). Furthermore, if Mr. Durbin's employment by CHRI (or
     Crestline) is continued following three years from the Commencement Date,
     Mr. Durbin will be an employee "at-will" and shall be employed on such
     terms and conditions as are mutually determined by CHRI (or Crestline) and
     Mr. Durbin without regard to the terms of this Agreement.

     (c)  Termination by CHRI Without Cause or by Mr. Durbin for Good Reason. If
          ------------------------------------------------------------------
     CHRI terminates Mr. Durbin's employment without Cause pursuant to Section
     5(b), or Mr. Durbin terminates his employment for Good Reason pursuant to
     Section 5(c), Mr. Durbin shall be entitled to receive, in addition to the
     items referenced in Section 6(a), (i) early termination pay (the "Early
     Termination Payment") comprised of a pro-rated Bonus based upon the goals
     achieved by Mr. Durbin during the fiscal year in which the termination
     occurs, plus an amount equal to the lesser of (A) the Base Salary for a
     twelve

                                      -7-
<PAGE>

     (12) month period or (B) the Base Salary for any unexpired balance of the
     three-year term of this Agreement, in either case computed using the Base
     Salary in effect at the date of termination and subject to all legally
     required payroll deductions and withholdings for sums owed by Mr. Durbin to
     CHRI, and (ii) vesting as of the last day of his employment in any unvested
     portion of any stock option and any restricted stock previously issued to
     Mr. Durbin. CHRI may elect, in its sole discretion, to pay the Early
     Termination Payment to Mr. Durbin in a lump sum or over the remainder of
     the Employment Period in approximately equal installments on CHRI's
     regularly scheduled payroll dates.

     (d)  Termination In the Event of Death or Disability.  If Mr. Durbin's
          -----------------------------------------------
     employment terminates in the event of his Disability or death, Mr. Durbin
     or his estate shall be entitled to receive, in addition to the items
     referenced in Section 6(a), a pro-rata share of any Bonus to which he
     otherwise would have been entitled for the fiscal year in which his
     employment terminates and vesting as of the date of termination in any
     unvested portion of any stock options or restricted stock previously issued
     to Mr. Durbin.

7. Confidentiality
   ---------------

     (a)  Definition of Proprietary Information. Mr. Durbin acknowledges that he
          -------------------------------------
     may have been furnished or otherwise had access to, and may in the future
     be furnished or otherwise have access to, confidential information which
     relates to the following with regard to CHRI, Crestline, or their
     affiliates: past, present or future business activities, strategies,
     services or products, research and development; financial analysis and
     data; improvements, inventions, processes, techniques, designs or other
     technical data; profit margins and other financial information; fee
     arrangements; terms and contents of leases, hotel management agreements,
     hotel leases and other contracts; tenant and vendor lists or other
     compilations for marketing or development; confidential personnel and
     payroll information; or other information regarding administrative,
     management, financial, marketing, leasing or sales activities of CHRI,
     Crestline, or their affiliates, or of a third party which provided
     proprietary information to CHRI or Crestline on a confidential basis. All
     such information, including any materials or documents containing such
     information, shall be considered by CHRI and Mr. Durbin as proprietary and
     confidential

                                      -8-
<PAGE>

     (the "Proprietary Information").

     (b)  Exclusions. Notwithstanding the foregoing, Proprietary Information
          ----------
     shall not include (i) information disseminated by CHRI, Crestline or their
     affiliates to third parties in the ordinary course of business; or (ii)
     information in the public domain not as a result of a breach of any duty by
     Mr. Durbin or any other person; or (iii) general hotel industry knowledge,
     expertise, contacts, know-how and experience developed by Mr. Durbin prior
     to the date hereof.

     (c)  Obligations.  Both during and after the Employment Period, Mr. Durbin
          -----------
     agrees to preserve and protect the confidentiality of the Proprietary
     Information and all physical forms thereof, whether disclosed to him before
     this Agreement is signed or afterward.  In addition, Mr. Durbin shall not
     (i) disclose or disseminate the Proprietary Information to any third party,
     including employees of CHRI, Crestline or their affiliates without a
     legitimate business need to know; (ii) remove the Proprietary Information
     from the premises of CHRI, Crestline or their affiliates without a valid
     business purpose; or (iii) use the Proprietary Information for his own
     benefit or for the benefit of any third party.

     (d)  Return of Proprietary Information.  Mr. Durbin acknowledges and agrees
          ---------------------------------
     that all the Proprietary Information used or generated during the course of
     working for CHRI or Crestline is the property of CHRI or Crestline,
     respectively.  Mr. Durbin agrees to deliver to CHRI or Crestline all
     documents and other tangibles (including diskettes and other storage media)
     containing the Proprietary Information at any time upon request by the
     President and Chief Executive Officer of Crestline during his employment
     and immediately upon termination of his employment.

8. Noncompetition
   --------------

     (a)  Restriction on Competition.  During the Employment Period and (i) the
          --------------------------
     twelve (12) month period following the expiration or termination of Mr.
     Durbin's employment with CHRI for any reason other than termination by CHRI
     without Cause or by Mr. Durbin for Good Reason or (ii) the lesser of the
     twelve (12) month period following termination of Mr. Durbin's employment
     or the unexpired balance of the three-year term of this Agreement if such
     termination is by CHRI without Cause or by Mr. Durbin for

                                      -9-
<PAGE>

     Good Reason (the "Restricted Period"), Mr. Durbin agrees not to engage,
     directly or indirectly, as an owner, employee, consultant, partner,
     principal, agent, representative, stockholder, or in any other individual,
     corporate or representative capacity, in any activities competitive with
     those of CHRI, Crestline or their affiliates. Notwithstanding the
     prohibition in the immediately preceding sentence, (i) following the later
     of Mr. Durbin's termination of employment or the third anniversary of the
     Commencement Date, Mr. Durbin may be employed by an entity engaged in
     activities that are competitive with CHRI, Crestline or their affiliates,
     provided that such entity has been in existence for at least twelve (12)
     months at the time it employs Mr. Durbin, and (ii) Mr. Durbin shall not be
     deemed to have violated this Section 8(a) by reason of his ownership of
     shares in any public company, where Mr. Durbin's shareholding is five
     percent (5%) or less of the shares then outstanding, provided in all cases
     that Mr. Durbin continues to comply with his other legal obligations to
     CHRI, Crestline and their affiliates, including without limitation his
     obligations pursuant to Sections 7 and 8(b) and (c) of this Agreement.

     (b)  Non-Solicitation of Clients.  During the Restricted Period, Mr. Durbin
          ---------------------------
     agrees that he will not, directly or indirectly, as an owner, employee,
     consultant, partner, principal, agent, representative, stockholder, or in
     any other individual, corporate or representative capacity, solicit any
     Client on behalf of a competitor of CHRI, Crestline or their affiliates or
     otherwise interfere with CHRI's, Crestline's or their affiliate's
     relationship with such client.  For purposes of this Agreement, a "Client"
     is any person or entity that (i) is a client of CHRI, Crestline or their
     affiliates on the date of Mr. Durbin's termination of employment, (ii) was
     a client of CHRI, Crestline or their affiliates at any time during the one-
     year period preceding the date of Mr. Durbin's termination of employment,
     or (iii) is, on the date of Mr. Durbin's termination of employment, being
     contacted by CHRI, Crestline or their affiliates as a prospective client.
     To facilitate Mr. Durbin's compliance with this Section 8(b), CHRI shall
     provide to him at the time of his termination of employment a list of those
     persons or entities who are to be considered "prospective clients" for
     purposes of this Section 8(b), which list shall constitute Proprietary
     Information and shall be used by Mr. Durbin for no purpose other than
     compliance with this Section 8(b).

                                      -10-
<PAGE>

     (c)  Non-Solicitation of Employees or Consultants.  During the Restricted
          --------------------------------------------
     Period, Mr. Durbin agrees that he will not, directly or indirectly, as an
     owner, employee, consultant, partner, principal, agent, representative,
     stockholder, or in any other individual, corporate or representative
     capacity, solicit or induce any employee or consultant who is an employee
     or consultant of CHRI, Crestline, or an affiliate of either of them, at the
     time of such solicitation or inducement or held such a position at any time
     within the six-month period preceding the date of such solicitation or
     inducement to sever the employment or engagement of the employee or
     consultant with CHRI, Crestline or their affiliate, or accept employment
     with, or otherwise provide services to any person or entity engaged in
     activities competitive with those of CHRI, Crestline or their affiliates.

     (d)  Acknowledgement.  Mr. Durbin acknowledges that he will acquire certain
          ---------------
     Proprietary Information concerning the past, present and future business of
     CHRI, Crestline and their affiliates as the result of his employment, as
     well as access to the relationships between CHRI, Crestline, and their
     affiliates, and their clients and employees.  Mr. Durbin further
     acknowledges that the business of CHRI, Crestline, and their affiliates is
     very competitive and that competition by him in that business during his
     employment, or after his employment terminates, would severely injure CHRI,
     Crestline and their affiliates.  Mr. Durbin understands and agrees that the
     restrictions contained in this Section 8 are reasonable and are required
     for the legitimate protection of CHRI, Crestline and their affiliates, and
     do not unduly limit his ability to earn a livelihood.

9.  Employee Representation
    -----------------------

     Mr. Durbin represents and warrants to CHRI that he is not now under any
obligation of a contractual or other nature to any person, business or other
entity which is inconsistent or in conflict with this Agreement or which would
prevent him from performing his obligations under this Agreement.

10. Arbitration
    -----------

     (a)  Any disputes between CHRI and Mr. Durbin in any way concerning Mr.
     Durbin's employment, the termination of his employment, this Agreement or
     its enforcement shall be submitted at the initiative of either party to
     mandatory arbitration in Maryland before a

                                      -11-
<PAGE>

     single arbitrator pursuant to the Commercial Arbitration Rules of the
     American Arbitration Association, or its successor, then in effect. The
     decision of the arbitrator shall be rendered in writing, shall be final,
     and may be entered as a judgment in any court in the State of Maryland. The
     parties irrevocably consent to the jurisdiction of the federal and state
     courts located in Maryland for this purpose. Each party shall be
     responsible for its or his own costs incurred in such arbitration and in
     enforcing any arbitration award, including attorneys' fees and expenses.

     (b)  Notwithstanding the foregoing, CHRI, in its sole discretion, may bring
     an action in any court of competent jurisdiction to seek injunctive relief
     and such other relief as CHRI shall elect to enforce Mr. Durbin's covenants
     in Sections 7 and 8 of this Agreement.

     (c)  In any dispute between CHRI and Mr. Durbin in any way concerning Mr.
     Durbin's employment, the termination of his employment, this Agreement or
     its enforcement, including any injunctive action brought by CHRI pursuant
     to Section 10(b), the party who prevails on the merits of any claim shall
     be entitled to reimbursement by the other party for all costs and expenses
     reasonably incurred by the prevailing party (including arbitration costs
     and legal fees and expenses) with respect to such claim.

11. Miscellaneous
    -------------

     (a)  Notices. All notices required or permitted under this Agreement shall
          -------
     be in writing and shall be deemed effective (i) upon personal delivery,
     (ii) upon deposit with the United States Postal Service, by registered or
     certified mail, postage prepaid, or (iii) in the case of facsimile
     transmission or delivery by nationally recognized overnight deliver
     service, when received, addressed as follows:

          (i)  If to CHRI, to:

                    Crestline Hotels & Resorts, Inc.
                    c/o Crestline Capital Corporation
                    6600 Rockledge Drive, Suite 600
                    Bethesda, MD 20817

                                      -12-
<PAGE>

                    Attention:  General Counsel
                    Fax No. 240/694-2040

          (ii) If to Mr. Durbin, to:

                    Mr. David Durbin
                    1219 Potomac School Road
                    McLean, Virginia 22101

          With a copy to:

                    Cohen Mohr LLP
                    1420 Beverly Road
                    Suite 380
                    McLean, VA 22101

                    Attention:  Daniel H. DuVal
                    Fax No.  703/761-0180
                    Telephone No.  703/761-1100

          or to such other address or addresses as either party shall designate
          to the other in writing from time to time by like notice.

     (b)  Pronouns.  Whenever the context may require, any pronouns used in this
          --------
     Agreement shall include the corresponding masculine, feminine or neuter
     forms, and the singular forms of nouns and pronouns shall include the
     plural, and vice versa.

     (c)  Entire Agreement.  This Agreement and the Asset Purchase Agreement
          ----------------
     constitute the entire agreement between the parties and supersede all prior
     agreements and understandings, whether written or oral, relating to the
     subject matter of this Agreement.

     (d)  Amendment. This Agreement may be amended or modified only by a written
          ---------
     instrument executed by both CHRI and Mr. Durbin.

     (e)  Governing Law.  This Agreement shall be construed, interpreted and
          -------------
     enforced in accordance with the laws of the State of Maryland, without
     regard to its conflicts of laws principles, and Mr. Durbin irrevocably
     consents to, and waives any objection to the exercise of, personal
     jurisdiction by the state and federal courts located in Maryland with

                                      -13-
<PAGE>

     respect to any injunctive action or proceeding arising out of this
     Agreement.

     (f)  Successors and Assigns. This Agreement shall be binding upon and inure
          ----------------------
     to the benefit of both parties and their respective successors and assigns,
     including any entity with which or into which CHRI may be merged or which
     may succeed to its assets or business or any entity to which CHRI may
     assign its rights and obligations under this Agreement; provided, however,
     that the obligations of Mr. Durbin are personal and shall not be assigned
     or delegated by him.

     (g)  Waiver.  No delays or omission by CHRI or Mr. Durbin in exercising any
          ------
     right under this Agreement shall operate as a waiver of that or any other
     right.  A waiver or consent given by CHRI or Mr. Durbin on any one occasion
     shall be effective only in that instance and shall not be construed as a
     bar or waiver of any right on any other occasion.

     (h)  Captions. The captions appearing in this Agreement are for convenience
          --------
     of reference only and in no way define, limit or affect the scope or
     substance of any section of this Agreement.

     (i)  Severability. In case any provision of this Agreement shall be held by
          ------------
     a court or arbitrator with jurisdiction over the parties to this Agreement
     to be invalid, illegal or otherwise unenforceable, such provision shall be
     restated to reflect as nearly as possible the original intentions of the
     parties in accordance with applicable law, and the validity, legality and
     enforceability of the remaining provisions shall in no way be affected or
     impaired thereby.

     (j)  Counterparts. This Agreement may be executed in two or more
          ------------
     counterparts, each of which shall be deemed an original but all of which
     together shall constitute one and the same instrument.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first above written.

DAVID DURBIN                            CRESTLINE HOTELS & RESORTS, INC.

                                      -14-
<PAGE>

________________________________   By: _______________________________________
                                       Larry K. Harvey
                                       Vice President, Chief Financial Officer
                                       and Treasurer

                                      -15-

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