Document:

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                                                                   EXHIBIT 10.27

                                   AGREEMENT

     This Agreement (the "Agreement"), dated as of August 8, 2000 is made by
and between Charles E. Fioretti ("Seller") and Mannatech, Incorporated, a Texas
corporation ("Company").

     WHEREAS, Seller is the holder of 4,989,549 shares of Company common stock,
$.0001 par value per share (the "Common Stock ").

     WHEREAS, Company has agreed to loan Seller an amount of $500,000, subject
to the terms and conditions of this Agreement.

     WHEREAS, Seller desires to sell certain shares of Common Stock to Company
and Company desires to purchase such shares of Common Stock from Seller, subject
to the terms and conditions of this Agreement.

     WHEREAS, Company holds a Renewal and Extension Promissory Note dated
February 17, 1999 made by Seller in the principal amount of $199,896.10 (the
"Agritech Note") and Seller hereby desires to grant Company the right to require
Seller to purchase the Agritech Note.

     WHEREAS, Seller has agreed to certain restrictions on sale of shares of
Common Stock, subject to the terms and conditions of this Agreement.

     NOW, THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, hereby agree as follows:

                            STATEMENT OF AGREEMENT

     1. Loan to Seller. As of the date of this Agreement, and upon the terms and
        --------------
subject to the conditions of this Agreement, Company agrees to make a loan to
Seller in the amount of $500,000 in exchange for Seller's execution and delivery
of a promissory note (the "Note") in the form attached hereto as Exhibit A.

     2. Provisions Applicable to the Note.
        ---------------------------------

          (a) Repayment of the Note. The outstanding balance of the Note shall
              ---------------------
be payable in (6) successive monthly installments of 26,455 [$83,333.33 divided
by the product of the (agreed price of stock on August 8, 2000 at 3.50 times
0.90] shares of Common Stock (each a "Loan Payment") commencing on September 3,
2000 and continuing on the third day of each successive month thereafter,
through and including February 3, 2001; at which time the outstanding balance
under the Note shall be due and payable in full.

                                      (1)
<PAGE>

          (b) Delivery of Stock. On each payment date set forth in Section 2(a)
              -----------------
above, Seller shall transfer and deliver to Company the Loan Payment in a
certificate or certificates representing the shares of Common Stock then due and
owing (the "Loan Shares"), together with a stock power in the form of Exhibit B
hereto (the "Stock Power"), attached thereto and duly executed in blank, in
proper form for transfer.

          (c) Pledge of Shares. Seller hereby assigns, pledges and grants a
              ----------------
security interest in 174,570 shares of Common Stock owned of record and
beneficially owned by Seller (the "Pledged Shares"), all certificates
representing the Pledged Shares, and all options and other rights, contractual
or otherwise, arising in connection with, or related to the Pledged Shares,
provided, however, so long as there exists no default by Seller under this
Agreement, Seller may exercise all shareholder voting rights of the Pledged
Shares. This security interest secures the full and punctual payment and
performance of all indebtedness and obligations now or hereafter owed under the
Note.

          (d) Release of Pledged Shares. Upon the termination of the Initial
              -------------------------
Lock-Up Period (as defined below) and the Extended Lock-Up Period, if applicable
(as defined below) and provided that all indebtedness and obligations secured
hereunder have been paid in full or cancelled, the Pledged Shares shall be
released from pledge and returned to Seller no later than three days after the
provisions specified in this Section 2(d) are satisfied.

     3. Purchase and Sale of Common Stock. On each Purchase Date (as defined
        ---------------------------------
below) and upon the terms and subject to the conditions of this Agreement,
Seller shall sell, transfer and deliver to Company and Company shall purchase
from Seller, all of Seller's right, title and interest in and to that whole
number of shares of Common Stock (the "Sale Shares") that is obtained by
dividing $83,333.33 by the Purchase Price (as defined below). On each such
Purchase Date, Seller shall deliver to Company a certificate or certificates
representing the Sale Shares, together with a Stock Power, attached thereto and
duly executed in blank, in proper form for transfer. On each such Purchase Date,
in exchange for the Shares, Company shall pay to Seller the amount of
$83,333.33.

          For purposes of this Section 3, the term "Purchase Date" shall mean
March 3, 2001 and the third day of every month thereafter, ending with March 3,
2002; provided, however, that in the event a Purchase Date is on a day that the
United States securities markets are not open for trading, the Purchase Date
shall be extended to the next succeeding trading day; and the term "Purchase
Price" shall mean a per share amount equal to the product obtained by
multiplying (A) the last reported sale price of the Common Stock on the Purchase
Date, times (B) 0.9.

     4.  Representations and Warranties of Seller.  Seller hereby represents and
         ----------------------------------------
warrants to Company as follows:

                                      (2)
<PAGE>

          (a) Ownership. All of the shares of Common Stock held by Seller
              ---------
(collectively, the "Shares") are owned of record and beneficially by Seller, and
Seller has, and the transfer by Seller of the Loan Shares, Sale Shares, Put
Shares and Option Shares hereunder will pass to Company, good and marketable
title to the Common Stock, free and clear of any claims, liens, encumbrances,
pledges, security interests or other arrangements or restrictions whatsoever,
except for such legend and related transfer restrictions as are required under
the Securities Act of 1933, as amended. There are no other outstanding
subscriptions, options, warrants, rights, contracts, understandings or
agreements to purchase or otherwise acquire any shares of Common Stock.

          (b) Legal Capacity. Seller has full legal capacity to enter into this
              --------------
Agreement and to consummate the transactions contemplated hereby. This Agreement
has been duly executed and delivered by Seller and constitutes a valid and
binding obligation of Seller, enforceable in accordance with its terms, except
as enforceability may be limited by bankruptcy, insolvency or other similar laws
or equitable principles affecting the enforcement of creditors' rights
generally.

     5. Representations and Warranties of Company. Company hereby represents and
        -----------------------------------------
warrants to Seller as follows:

          (a) Corporate Status and Power. Company is a corporation existing
              --------------------------
under the laws of the State of Texas. Company has the requisite corporate power
and authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby.

          (b) Authority. This Agreement has been duly executed and delivered by
              ---------
Company and constitutes a valid and binding obligation of Company, enforceable
in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency or other similar laws or equitable principles affecting
the enforcement of creditors' rights generally.

     6.  Lock-Up Agreement.
         -----------------

          (a) Initial Lock-Up. Except as contemplated by this Agreement, Seller
              ---------------
hereby agrees that for a period of eighteen months from the date hereof (the
"Initial Lock-Up Period") he will not offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, any shares of Common Stock or
securities convertible into or exchangeable or exercisable for any shares of
Common Stock, enter into a transaction which would have the same effect, or
enter into any swap, hedge or other arrangement that transfers, in whole or in
part, any of the economic consequences of ownership of the Common Stock, whether
any such aforementioned transaction is to be settled by delivery of the Common
Stock or such other securities, in cash or otherwise, or publicly disclose the
intention to make any such offer, sale, pledge or disposition, or to enter into
any such transaction, swap, hedge or other arrangement, without, in each case,
the prior written consent of Company. Any securities received upon exercise of
options granted to Seller will also be subject to the provisions set forth in
this Section 6. Seller agrees and consents to the entry and stop transfer
instructions with Company's transfer agent against any transfer of shares

                                      (3)
<PAGE>

of Common Stock held directly or indirectly by Seller not in compliance with
this Agreement. Notwithstanding the foregoing, Seller may sell, contract to
sell, pledge or otherwise dispose of shares of Common Stock to Jett, provided
that Seller receives prior written approval by the Board of Directors of Company
and such sale is at a purchase price in excess of $2.00 per share.

          (b) Extended Lock-Up.  The restrictions and obligations of Seller
              ----------------
under Section 6(a) shall be extended without any further action (the "Extended
      ------------
Lock-Up Period") if Company notifies Seller of its intention to exercise its
Option as set forth in Section 8 below.  The Lock-up shall be extended only so
                       ---------
long as Mannatech continues to purchase Option Shares pursuant to the Option set
forth in Section 8, below.  The Extended Lock-Up shall terminate if the Seller
shall receive a good faith bona fide offer from a third party to purchase all of
his shares, provided that the Company shall have both the right of first refusal
and the right to match such offer of the third party, which remain unexercised
under the terms set forth below.  The Seller shall notify the Company in writing
of any such offer, and allow it a 20-day period in which to make a competing
offer, he shall notify the Company in writing of the same, allowing it a 20-day
period in which to match such third-party offer and proceed to Closing.  If the
Company has no good faith interest in pursuing the purchase of all of the
Seller's shares it may notify the Seller of the same and allow him to proceed
immediately to closing by waiving the effect of this Section.

     7.  Put Right.
         ---------

          (a) Exercise of Put Right. Mannatech shall have the option at any time
              ---------------------
during the term of this Agreement to cause Seller to repurchase the Agritech
Note by delivering written notice of such election to Seller, which specifies
the date of such repurchase, which shall be at least three business days after
the date of such written notice (the "Put Date"). Repurchase of the Agritech
Note shall be a condition precedent to the operation of Section 8, hereof
"Option to Purchase Common Stock."

          (b) Payment of Exercise of Put Right. On the Put Date, Seller shall
              --------------------------------
pay to Company that certain whole number of shares of Common Stock (the "Put
Shares") obtained by dividing (i) the amount outstanding on the Agritech Note as
of the Put Date, including accrued and unpaid interest by (ii) the Per Share Put
Price (as defined). For purposes of this Agreement, the "Per Share Put Price"
shall mean a per share amount equal to the product obtained by multiplying (A)
the last reported sale price of the Common Stock on the Put Date, times (B) 0.8.
On the Put Date, Seller shall transfer and deliver to Company a certificate or
certificates representing the Put Shares, together with a Stock Power attached
thereto and duly executed in blank, in proper form for transfer.

     8.  Option to Purchase Common Stock.
         -------------------------------

          (a) Exercise of Option.  At the option of the Company, provided that
              ------------------
Mannatech shall have repurchased the Agritech Note, in accordance with Sections
7(a) and (b) hereof, commencing on March 3, 2002 and on the third day of each
month thereafter (each an "Option Purchase Date"), the Company may purchase from
Seller not less than 50,000 shares of Mannatech stock at the Option Price, as
herein defined, so long as it has adequate cash flow, in the good faith opinion
of the Chief Financial Officer of the Company to effect such a transaction with
adequate reserves and cash on hand to properly operate the business.  In months
in which the Chief Financial Officer of Mannatech is of the opinion that the
Company has inadequate reserves and/or cash on hand to effect such a purchase of
50,000 Option Shares, then the Company may purchase not less than $100,000 in
value of shares at the Option price (the "Option"), thereby keeping the Lockup,
as extended in full force and effect.  Any shares purchased pursuant to this
Section shall be "Option Shares."  For purposes of this Agreement, the "Option
Price" shall mean a per share amount equal to the product obtained by
multiplying (A) the last reported sale price of the Common Stock on the Option
Purchase Date, times (B) 0.9, but in no event less than $2.00 per share.

          (b) Payment of Option. On each Option Purchase Date, Company shall pay
              -----------------
to Seller $100,000 for the Option Shares and Seller shall deliver to Company a
certificate or

                                      (4)
<PAGE>

certificates representing the Option Shares, together with a Stock Power
attached thereto and duly executed in blank, in proper form for transfer.

     9.  Miscellaneous.
         -------------
          (a) Survival of Representations and Warranties. All representations
              ------------------------------------------
and warranties contained herein shall survive the execution and delivery of this
Agreement and the delivery of the Shares, regardless of any investigation at any
time made by or on behalf of any party hereto.

          (b) Further Assurances. From time to time, and without additional
              ------------------
consideration, Seller and Company, as the case may be, shall execute and
deliver, or cause to be executed and delivered, such additional or further
transfers, assignments, endorsements, consents and other instruments as Company
or Seller, as the case may be, may reasonably request for the purpose of
effectively carrying out the transactions contemplated by this Agreement.

          (c) Successors and Assigns. This Agreement will be binding upon, inure
              ----------------------
to the benefit of, and be enforceable by the parties hereto and their respective
successors and assigns.

          (d) Amendments. This Agreement may not be amended, supplemented or
              ----------
modified except by an instrument in writing signed by each of the parties
hereto.

          (e) Interpretation. The headings contained in this Agreement are for
              --------------
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

          (f) Counterparts. This Agreement may be executed in multiple
              ------------
counterparts, each of which shall be deemed to be an original and which taken
together shall constitute one and the same agreement.

          (g) Entire Agreement. This Agreement (i) constitutes the entire
              ----------------
agreement and supersedes all prior agreements and understandings, both written
and oral, among the parties with respect to the subject matter hereof and (ii)
is not intended to confer upon any person other than the parties hereto any
rights or remedies hereunder.

          (h) Taxes. Seller shall pay all stamp and other taxes, if any, that
              -----
may be payable in respect of the sale and delivery to Company of any shares of
Common Stock pursuant to this Agreement.

          (i) Notice. All notices and other communications required or permitted
              ------
hereunder shall be in writing and shall be hand delivered, mailed by certified
mail (return receipt requested) or sent by overnight delivery service to the
parties at the following addresses (or at such other address for a party as
shall be specified by like notice):

                                      (5)
<PAGE>

                    If to Seller:       Charles E. Fioretti
                                        600 South Royal Lane, Suite 500
                                        Coppell, TX 75019

                    If to Company:      Mannatech, Incorporated
                                        600 South Royal Lane, Suite 200
                                        Coppell, Texas  75019
                                        Attn:  Deanne Varner, General Counsel

          (j) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
              -------------
IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT GIVING EFFECT TO THE
CONFLICTS OF LAWS RULES THEREOF. EACH PARTY HERETO AGREES THAT IT SHALL BRING
ANY ACTION OR PROCEEDING IN RESPECT OF ANY CLAIM ARISING OUT OF OR RELATED TO
THIS AGREEMENT OR THE TRANSACTIONS CONTAINED IN OR CONTEMPLATED HEREBY, WHETHER
IN TORT OR CONTRACT OR AT LAW OR IN EQUITY, EXCLUSIVELY IN THE STATE COURTS OF
TEXAS OR THE FEDERAL COURTS OF THE NORTHERN DISTRICT OF TEXAS (THE "CHOSEN
COURTS") AND (i) IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE CHOSEN
COURTS, (ii) WAIVES ANY OBJECTION TO LAYING VENUE IN ANY SUCH ACTION OR
PROCEEDING IN THE CHOSEN COURTS AND (iii) WAIVES ANY OBJECTION THAT THE CHOSEN
COURTS ARE AN INCONVENIENT FORUM OR DO NOT HAVE JURISDICTION OVER ANY PARTY
HERETO.

                                      (6)
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date
first above written.

     SELLER:                       By: /s/ CHARLES E. FIORETTI
                                       --------------------------------
                                   Name:  Charles E. Fioretti

     COMPANY:                      MANNATECH, INCORPORATED,
                                   a Texas corporation

                                   By: /s/ ROBERT M. HENRY
                                       --------------------------------
                                   Name:  Robert M. Henry
                                         ------------------------------
                                   Title:   Chief Executive Officer
                                           ----------------------------

                                      (7)

<PAGE>

                                   EXHIBIT A
                                   ---------

                                PROMISSORY NOTE

$500,000                         Dallas, Texas                  August 8, 2000

FOR VALUE RECEIVED, the undersigned, Charles E. Fioretti, an individual residing
in the State of Texas ("Maker"), promises to pay to the order of Mannatech,
Incorporated, a Texas corporation ("Payee"), the sum of Five Hundred Thousand
Dollars ($500,000).  This Note is executed in connection with that certain Note
and Stock Purchase Agreement, dated of even date herewith, by and between Maker
and Payee (the "Purchase Agreement") and is subject to the terms of such
Purchase Agreement.

     Reference is hereby made to the Purchase Agreement for provisions affecting
this Note regarding payment, and such provisions are hereby incorporated in this
Note by reference.  All payments made by Maker hereunder shall be made at such
location as is directed by Payee without set-off, deduction or counterclaim.
All payments shall be applied first to payment of costs and expenses (including
reasonable attorneys' fees) incurred by Payee in enforcing this Note, including
all costs of collection, next to payment of accrued and unpaid interest and then
to the reduction principal.

     All past due principal and accrued interest on this Note shall bear
interest from maturity until paid at the rate of the lesser of (i) eighteen
percent (18%) per annum or (ii) the maximum rate of interest permitted under
applicable law. A per annum rate of interest of 6.9% shall be imputed but not
charged.

     The entire unpaid principal balance of, and all accrued interest on, this
Note shall immediately be due and payable at the option of Payee (or with
respect to clause (c) automatically without notice of any kind) upon the
occurrence of (a) a failure by the undersigned to pay when due any installment
of principal or interest under this Note or any other cost due hereunder, (b)
any breach of any representation or warranty or any material breach of any
covenant or agreement set forth in this Note or the Purchase Agreement on the
part of Maker, (c) the commencement of a voluntary case under Title 11 of the
United States Code, the filing of an answer or other pleading admitting or
failing to deny the material allegations of a petition filed against Maker
commencing an involuntary case under said Title 11 or the failure to controvert
timely the material allegations of such petition (each such event, an "Event of
Default").

     No delay on the part of the holder of this Note in the exercise of any
power or right under this Note or under any other instrument executed pursuant
hereto shall operate as a waiver thereof, nor shall a single or partial exercise
of any power or right preclude other or further exercise thereof or the exercise
of any other power or right.

     Except as expressly otherwise provided for herein, Maker and all endorsers
of this Note waive demand, presentment, protest, notice of dishonor, notice of
nonpayment, notice
<PAGE>

of intention to accelerate, notice of protest and any and all lack of diligence
or delay in collection or the filing of suit hereon which may occur, and agree
to all extensions and partial payments, before or after maturity, without
prejudice to the holder hereof.

     In the event that one or more Events of Default shall occur, and in the
event that thereafter this Note is placed in the hands of an attorney for
collection, or in the event that this Note is collected in whole or in part
through legal proceedings of any nature, then and in any such case, there shall
be added to the unpaid principal balance hereof all reasonable costs of
collection, including but not limited to reasonable attorneys' fees, on account
of such collection, whether or not suit is filed.

     THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
TEXAS.

     All agreements between Maker and the holder of this Note, whether now
existing or hereafter arising and whether written or oral, are expressly limited
so that in no contingency or event whatsoever, whether by acceleration of the
maturity of this Note or otherwise, shall the amount paid, or agreed to be paid,
to the holder hereof for the use, forbearance or detention of the money to be
loaned hereunder or otherwise, exceed the maximum amount permissible under
applicable law. If from any circumstances whatsoever fulfillment of any
provision of this Note or of any other document evidencing, securing or
pertaining to the indebtedness evidenced hereby, at the time performance of such
provision shall be due, shall involve transcending the limit of validity
prescribed by law, then, ipso facto, the obligation to be fulfilled shall be
reduced to the limit of such validity, and if from any such circumstances the
holder of this Note shall ever receive as interest under this Note or any other
document evidencing, securing or pertaining to the indebtedness evidenced hereby
or otherwise an amount that would exceed the highest lawful rate, such amount
that would be excessive interest shall be applied to the reduction of the
principal amount owing under this Note or on account of any other indebtedness
of Maker to the holder hereof relating to this Note, and not to the payment of
interest, or if such excessive interest exceeds the unpaid balance of principal
of this Note and such other indebtedness, such excess shall be refunded to
Maker. In determining whether or not the interest paid or payable with respect
to any indebtedness of Maker to the holder hereof, under any specific
contingency, exceeds the highest lawful rate, Maker and the holder hereof shall,
to the maximum extent permitted by applicable law, (a) characterize any non-
principal payment as an expense, fee or premium rather than as interest, (b)
exclude voluntary prepayments and the effects thereof, (c) amortize, prorate,
allocate and spread the total amount of interest throughout the full term of
such indebtedness so that the actual rate of interest on account of such
indebtedness is uniform throughout the term thereof, and/or (d) allocate
interest between portions of such indebtedness, to the end that no such portion
shall bear interest at a rate greater than that permitted by law. The terms and
provisions of this paragraph shall control and supersede every other conflicting
provision of all agreements between Maker and the holder hereof.
<PAGE>

     All of the stipulations, promises and agreements in this Note contained by
or on behalf of Maker and Payee shall bind the successors and assigns of Maker
and Payee, whether so expressed or not, and inure to the benefit of the
successors and assigns of Maker and Payee.

     In the event any one or more of the provisions contained in this Note shall
for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provision hereof, and this Note shall be construed as if such invalid, illegal
or unenforceable provision had never been contained herein.

     IN WITNESS WHEREOF, the undersigned has executed this Note as of the date
first above written.

                            /s/ CHARLES E. FIORETTI
                          ---------------------------------
                          Charles E. Fioretti
<PAGE>

                                   EXHIBIT B
                                   ---------

                                  STOCK POWER

     FOR VALUE RECEIVED,                 (the "Transferor") does hereby sell,
                         ---------------
assign and transfer unto                 (        ) shares of the Common Stock,
                         ---------------  --------
$.01 par value, of Mannatech, Incorporated (the "Company") standing in the
Transferor's name on the books of the Company, represented by Certificate No.
      herewith, and does hereby irrevocably constitute and appoint
-----
                attorney to transfer the said stock on the books of the Company
---------------
with full power of substitution in the premises.

     Dated             , 2000.
           ------------

                                   By:   /s/ CHARLES E. FIORETTI
                                        ---------------------------------

In presence of

--------------------------------<PAGE>

                                                                    EXHIBIT 10.1

                        EXECUTIVE EMPLOYMENT AGREEMENT

     This EXECUTIVE EMPLOYMENT AGREEMENT ("Agreement") is made as of the 31 day
of May, 2000, between Wyndham International, Inc., a Delaware corporation (the
"Company"), and Richard A. Smith ("Executive"), effective as of April 10, 2000
(the "Effective Date").

     WHEREAS, Executive is currently employed by the Company in a senior
executive capacity;

     WHEREAS, the Company desires to continue to employ Executive and Executive
desires to continue to be employed by the Company;

     WHEREAS, as an additional inducement to Executive to enter into this
Agreement, the Company shall, as of the Effective Date, grant Executive an
option to purchase a certain number of shares of Class A common stock of the
Company as set forth in the agreement attached hereto as Exhibit A (the
                                                         ---------
"Option"); and

     WHEREAS, Executive is desirous of committing to serve the Company on the
terms herein provided.

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

1.   Employment. The term of this Agreement shall extend from the Effective Date
until the third anniversary of the Effective Date; provided, however, that the
term of this Agreement shall automatically be extended for one additional year
on the third anniversary of the Effective Date and each anniversary thereafter
unless, not less than ninety (90) days prior to each such date, either party
shall have given notice to the other that it does not wish to extend this
Agreement; provided, further, that if a Change in Control occurs during the
original or extended term of this Agreement, the term of this Agreement shall
continue in effect until the later of the end of the initial term described
above or the end of the eighteenth (18th) month following the month in which the
Change in Control occurred. The term of this Agreement shall be subject to
termination as provided in Paragraph 6 and may be referred to herein as the
"Period of Employment."

2.   Position and Duties. During the Period of Employment, Executive shall serve
as an Executive Vice President of the Company, shall have supervision and
control over and responsibility for the day-to-day business and affairs of those
functions and operations of the Company and shall have such other powers and
duties as may from time to time be prescribed by the Chairman of the Board of
the Company (the "Chairman") or the Chief Executive Officer of the Company (the
"CEO") or other executive authorized by the Chairman or CEO, provided that such
duties are consistent with Executive's position or other positions that he may
hold from

                                       1
<PAGE>

time to time. Executive shall devote his full working time and efforts to the
business and affairs of the Company. Notwithstanding the foregoing, Executive
may serve on other boards of directors, with the approval of the Chairman or
CEO, or engage in religious, charitable or other community activities as long as
such services and activities are disclosed to the Chairman or CEO and do not
materially interfere with Executive's performance of his duties to the Company
as provided in this Agreement.

3.   Compensation and Related Matters.

     (a) Base Salary and Incentive Compensation.  Executive's initial annual
base salary ("Base Salary") shall be $325,000.  Executive's Base Salary shall be
redetermined at least thirty (30) days before each annual compensation
determination date established by the Company during the Period of Employment in
an amount to be fixed by the Board of Directors of the Company or a Committee
thereof or a duly authorized officer (the "Board").  The Base Salary, as
redetermined, may be referred to herein as "Adjusted Base Salary."  The Base
Salary or Adjusted Base Salary shall be payable in substantially equal bi-weekly
installments and shall in no way limit or reduce the obligations of the Company
hereunder.

     In addition to Base Salary or, if applicable, Adjusted Base Salary,
Executive shall be eligible to receive in each fiscal year during the Period of
Employment, on or about the Annual Compensation Determination Date (or earlier
as provided in Paragraph 7 and 8 of this Agreement), cash incentive compensation
(the "Incentive Compensation") in an amount determined annually by the
Compensation Committee of the Board of Directors based on individual
performance, "Employer EBITDA Achievement" (as hereinafter defined), and total
return to shareholders.  Incentive Compensation shall be paid to Executive no
later than the date incentive compensation is paid by the Company to similarly
situated executives of the Company.  Incentive Compensation shall equal from
zero to one and one-half times the then current Base Salary or, if applicable,
Adjusted Base Salary.  "Employer EBITDA Achievement" is the degree to which the
annual budget established by the Company for earnings before interest, taxes,
depreciation, and amortization is achieved.  Incentive Compensation shall be
fixed and guaranteed at $325,000 for the year ending December 31, 2000.
Thereafter, Incentive Compensation shall be targeted at a minimum of 100% of the
Base Salary or, if applicable, Adjusted Base Salary for any year in which
Employer EBITDA Achievement is one hundred percent (100%) or more ("Target
Incentive Compensation").  The maximum Incentive Compensation payable to
Executive for any fiscal year shall be equal to one hundred fifty percent (150%)
of the Base Salary, or if applicable, Adjusted Base Salary.

     "Pro Rata Incentive Compensation" shall be paid to Executive if Executive's
employment is terminated by reason of Executive's death or disability, as
provided in Subparagraphs 6(a) and 6(b), if Executive's employment is terminated
by the Executive for Good Reason, as provided in Subparagraph 6(e), or if
Executive's employment is terminated by the Company without Cause, as provided
in Subparagraph 6(d). Pro Rata Incentive Compensation equals the Incentive
Compensation for the fiscal year of termination multiplied by a fraction, the
numerator of which is the number of days in the current fiscal year through Date
of Termination and the denominator is 365.

                                       2
<PAGE>

     If, for the purpose of calculating Incentive Compensation or Pro Rata
Incentive Compensation, the Incentive Compensation cannot be determined by the
time required to be paid, the Company shall make a good faith estimate of the
pro rata amount based on an amount Executive would have earned had he continued
employment for the entire fiscal year; provided, however, that where the Date of
Termination occurs during the first six months of any fiscal year, the Pro Rata
Incentive Compensation paid to Executive if Executive's employment is terminated
by reason of Executive's death or disability, by the Executive for Good Reason,
or by the Company without Cause shall not exceed fifty percent (50%) of the
maximum Incentive Compensation which could have been paid to Executive in the
fiscal year immediately preceding the fiscal year of termination.

     Executive will also participate in such other incentive compensation plans,
policies or practices as the Board shall determine.

     (b) Expenses.  Executive shall be entitled to receive prompt reimbursement
for all reasonable expenses incurred by him (in accordance with the policies and
procedures then in effect and established by the Company for its senior
executive officers) in performing services hereunder during the Period of
Employment, provided that Executive properly accounts therefor in accordance
with Company policy.

     (c) Other Benefits.  During the Period of Employment, Executive shall be
entitled to continue to participate in or receive benefits under all of the
Company's Employee Benefit Plans in effect on the date hereof, or under plans or
arrangements that provide Executive with at least substantially equivalent
benefits to those provided under such Employee Benefit Plans.  As used herein,
"Employee Benefit Plans" include, without limitation, each pension and
retirement plan; supplemental pension, retirement and deferred compensation
plan; savings and profit-sharing plan; stock ownership plan; stock purchase
plan; stock option plan; life insurance plan; medical insurance plan; disability
plan; and health and accident plan or arrangement established and maintained by
the Company on the date hereof for employees of the same status within the
hierarchy of the Company.  To the extent that the scope or nature of benefits
described in this section are determined under the policies of the Company based
in whole or in part on the seniority or tenure of an employee's service,
Executive shall be deemed to have a tenure with the Company equal to the actual
time of Executive's service with Company.  During the Period of Employment,
Executive shall be entitled to participate in or receive benefits under any
employee benefit plan or arrangement which may, in the future, be made available
by the Company to its executives and key management employees, subject to and on
a basis consistent with the terms, conditions and overall administration of such
plan or arrangement.  Any payments or benefits payable to Executive under a
plan or arrangement referred to in this Subparagraph 3(c) in respect of any
calendar year during which Executive is employed by the Company for less than
the whole of such year shall, unless otherwise provided in the applicable plan
or arrangement, be prorated in accordance with the number of days in such
calendar year during which he is so employed.  Should any such payments or
benefits accrue on a fiscal (rather than calendar) year, then the proration in
the preceding sentence shall be on the basis of a fiscal year rather than
calendar year.

     (d) Life Insurance.  The Company shall pay the premiums on, and maintain in
effect throughout the Period of Employment, a life insurance policy on the life
of Executive in an

                                       3
<PAGE>

amount not less than the amount of Executive's then current Base Salary or
Adjusted Base Salary. Executive shall have the right to designate the
beneficiary under such policy.

     (e) Vacations.  Executive shall be entitled to the number of paid vacation
days in each calendar year determined by the Company from time to time for
executives at the same level as Executive.  Executive shall also be entitled to
all paid holidays given by the Company to its executives.  To the extent that
the scope or nature of benefits described in this section are determined under
the policies of the Company based in whole or in part on the seniority or tenure
of an employee's service, Executive shall be deemed to have a tenure with the
Company equal to the actual time of Executive's service with Company.

     (f) Disability Insurance.  The Company shall pay the premiums on, and
maintain in effect through the Period of Employment, long-term disability
insurance providing for payment of benefits at rates not less than sixty percent
(60%) of Executive's current Base Salary or Adjusted Base Salary.

4.   Unauthorized Disclosure.

     (a) Confidential Information.  Executive acknowledges that in the course of
his employment with the Company (and, if applicable, its predecessors), he has
been allowed to become, and will continue to be allowed to become, acquainted
with the Company's business affairs, information, trade secrets, and other
matters which are of a proprietary or confidential nature, including but not
limited to the Company's and its predecessors' operations, business
opportunities, price and cost information, finance, customer information,
business plans, various sales techniques, manuals, letters, notebooks,
procedures, reports, products, processes, services, and other confidential
information and knowledge (collectively the "Confidential Information")
concerning the Company's and its predecessors' business.  The Company agrees to
provide on an ongoing basis such Confidential Information as the Company deems
necessary or desirable to aid Executive in the performance of his duties.
Executive understands and acknowledges that such Confidential Information is
confidential, and he agrees not to disclose such Confidential Information to
anyone outside the Company except to the extent that (i) Executive deems such
disclosure or use reasonably necessary or appropriate in connection with
performing his duties on behalf of the Company, (ii) Executive is required by
order of a court of competent jurisdiction (by subpoena or similar process) to
disclose or discuss any Confidential Information, provided that in such case,
Executive shall promptly inform the Company of such event, shall cooperate with
the Company in attempting to obtain a protective order or to otherwise restrict
such disclosure, and shall only disclose Confidential Information to the minimum
extent necessary to comply with any such court order; (iii) such Confidential
Information becomes generally known to and available for use by the hotel and
hospitality industry (the "Hotel Industry"), other than as a result of any
action or inaction by Executive; or (iv) such information has been rightfully
received by a member of the Hotel Industry or has been published in a form
generally available to the Hotel Industry prior to the date Executive proposes
to disclose or use such information.  Executive further agrees that he will not
during employment and/or at any time thereafter use such Confidential
Information in competing, directly or indirectly, with the Company.  At such
time as Executive shall cease to be employed by the Company, he will immediately
turn over to

                                       4
<PAGE>

the Company all Confidential Information, including papers, documents, writings,
electronically stored information, other property, and all copies of them
provided to or created by him during the course of his employment with the
Company.

     (b) Heirs, successors, and legal representatives.  The foregoing provisions
of this Paragraph 4 shall be binding upon Executive's heirs, successors, and
legal representatives. The provisions of this Paragraph 4 shall survive the
termination of this Agreement for any reason.

5.   Covenant Not to Compete.  In consideration for the Option, the Company's
promise to provide Confidential Information as set forth in Paragraph 4 above,
and for Executive's employment by the Company under the terms provided in this
Agreement, and as a means to aid in the performance and enforcement of the terms
of and preserve the rights of the Company pursuant to the Unauthorized
Disclosure provisions of Paragraph 4, Executive agrees as follows:

     (a) during the term of Executive's employment with the Company and for a
period of twenty-four (24) months thereafter, regardless of the reason for
termination of employment, Executive will not, directly or indirectly, as an
owner, director, principal, agent, officer, employee, partner, consultant,
servant, or otherwise, carry on, operate, manage, control, or become involved in
any manner with any business, operation, corporation, partnership, association,
agency, or other person or entity which is in the business of owning, operating,
managing or granting franchise rights with respect to hotels, motels or other
lodging facilities in any area or territory in which the Company conducts
operations; provided, however, that the foregoing shall not prohibit Executive
from owning up to one percent (1%) of the outstanding stock of a publicly held
company engaged in the hospitality business.  Notwithstanding the foregoing,
after Executive's employment with the Company has terminated, upon receiving
written permission by the Board, Executive shall be permitted to engage in such
activities with respect to any other hotel, motel or lodging facility that would
be immaterial to the operations of the Company in the area or territory in
question.  Immateriality, for purposes of the foregoing sentence, shall be
determined in the sole discretion of the Board in good faith.

     (b) during the term of Executive's employment with the Company and for a
period of twenty-four (24) months thereafter, regardless of the reason for
termination of employment, Executive will not, directly or indirectly, either
for himself or for any other business, operation, corporation, partnership,
association, agency, or other person or entity, call upon, compete for, solicit,
divert, or take away, or attempt to divert or take away any of the customers
(including, without limitation, any hotel owner, lessor or lessee, asset
manager, trustee, consumer with whom the Company from time to time (i) has an
existing agreement or business relationship; (ii) has had an agreement or
business relationship within the two-year period preceding the Executive's last
day of employment with the Company; or (iii) has included as a prospect in its
applicable pipeline) or vendors of the Company in any of the areas or
territories in which the Company conducts operations if such action has the
intent or effect of interfering with the Company's relationship with the vendor
or customer.

     (c) during the term of Executive's employment with the Company and for a
period of twenty-four (24) months thereafter, regardless of the reason for
termination of employment,

                                       5
<PAGE>

Executive will not directly or indirectly solicit or induce any current or
prospective employee of the Company (including, without limitation, any current
or prospective employee of the Company within the six-month period preceding
Executive's last day of employment with the Company or within the 24-month
period of this covenant) to accept employment with Executive or with any
business, operation, corporation, partnership, association, agency, or other
person or entity with which Executive may be associated, and Executive will not
employ or cause any business, operation, corporation, partnership, association,
agency, or other person or entity with which Executive may be associated to
employ any current or prospective employee of the Company without providing the
Company with ten (10) days' prior written notice of such proposed employment.

     (d) Executive agrees and acknowledges that the restrictions contained in
this noncompetition covenant are reasonable in scope and duration and are
necessary to protect the Company's business interests and Confidential
Information after the Effective Date of this Agreement. If any provision of this
noncompetition covenant as applied to any party or to any circumstance is
adjudged by a court to be invalid or unenforceable, the same will in no way
affect any other circumstance or the validity or enforceability of this
Agreement. If any such provision, or any part thereof, is held to be
unenforceable because of the duration of such provision or the area covered
thereby, the parties agree that the court making such determination shall have
the power to reduce the duration and/or area of such provision, and/or to delete
specific words or phrases, and in its reduced form, such provision shall then be
enforceable and shall be enforced. The parties agree and acknowledge that the
breach of this noncompetition covenant will cause irreparable damage to the
Company, and upon breach of any provision of this noncompetition covenant, the
Company shall be entitled to injunctive relief, specific performance, or other
equitable relief; provided, however, that this shall in no way limit any other
remedies which the Company may have (including, without limitation, the right to
seek monetary damages).

     (e) Should Executive violate the provisions of this Paragraph, then in
addition to all other rights and remedies available to the Company at law or in
equity, the duration of this covenant shall automatically be extended for the
period of time from which Executive began such violation until he permanently
ceases such violation.

6.   Termination. Executive's employment hereunder may be terminated without any
breach of this Agreement under the following circumstances:

     (a) Death.  Executive's employment hereunder shall terminate upon his
death.

     (b) Disability.  If, as a result of Executive's incapacity due to physical
or mental illness, Executive shall have been absent from his duties hereunder on
a full-time basis for one hundred eighty (180) calendar days in the aggregate in
any twelve (12) month period, the Company may terminate Executive's employment
hereunder.

     (c) Termination by Company For Cause.  At any time during the Period of
Employment, the Company may terminate Executive's employment hereunder for Cause
if such

                                       6
<PAGE>

termination is approved by not less than a majority of the Board of Directors at
a meeting of such Board of Directors called and held for such purpose. Any
determination by the Board of Directors that "Cause" exists shall be made by the
Board of Directors in good faith. For purposes of this Agreement "Cause" shall
mean: (A) conduct by Executive constituting a material act of willful misconduct
in connection with the performance of his duties, including, without limitation,
misappropriation of funds or property of the Company or any of its affiliates
other than the occasional, customary and de minimis use of Company property for
personal purposes; (B) criminal or civil conviction of Executive, a plea of nolo
contendere by Executive or conduct by Executive that would reasonably be
expected to result in material injury to the reputation of the Company if he
were retained in his position with the Company, including, without limitation,
conviction of a felony involving moral turpitude; (C) continued, willful and
deliberate non-performance by Executive of his duties hereunder (other than by
reason of Executive's physical or mental illness, incapacity or disability) and
such non-performance has continued for more than thirty (30) days following
written notice of such non-performance from the Board; (D) a breach by Executive
of any of the provisions contained in Paragraphs 4 and 5 of this Agreement; or
(E) a violation by Executive of the Company's employment policies and such
violation has continued for more than thirty (30) days following written notice
of such violation from the Board.

     (d) Termination Without Cause.  At any time during the Period of
Employment, the Company may terminate Executive's employment hereunder without
Cause if such termination is approved by a majority of the Board of Directors at
a meeting of the Board of Directors called and held for such purpose.  Any
termination by the Company of Executive's employment under this Agreement which
does not constitute a termination for Cause under Subparagraph 6(c) or result
from the death or disability of the Executive under Subparagraph 6(a) or (b)
shall be deemed a termination without Cause.  If the Company provides notice to
the Executive under Paragraph 1 that it does not wish to extend the Period of
Employment, such action shall be deemed a termination without Cause.

     (e) Termination by Executive.  At any time during the Period of Employment,
Executive may terminate his employment hereunder for any reason, including but
not limited to Good Reason.  If Executive provides notice to the Company under
Paragraph 1 that he does not wish to extend the Period of Employment, such
action shall be deemed a voluntary termination by Executive and one without Good
Reason.  For purposes of this Agreement, "Good Reason" shall mean that Executive
has complied with the "Good Reason Process" (hereinafter defined) following the
occurrence of any of the following events:  (A) a substantial diminution or
other substantive adverse change, not consented to by Executive, in the nature
or scope of Executive's responsibilities, authorities, powers, functions or
duties, other than a change in Executive's position or reporting relationship;
(B) any removal, during the Period of Employment, from Executive of his title of
Executive Vice President; (C) an involuntary reduction in Executive's Base
Salary or Adjusted Base Salary or involuntary reduction in cash incentive
compensation plan (but not reduction in incentive compensation appropriate for
level of performance) except for across-the-board salary reductions similarly
affecting all or substantially all management employees; (D) a breach by the
Company of any of its other material obligations under this Agreement and the
failure of the Company to cure such breach within thirty (30) days after written
notice thereof by Executive; (E) the involuntary relocation of the Company's
offices at

                                       7
<PAGE>

which Executive is principally employed or the involuntary relocation of the
offices of Executive's primary workgroup to a location more than thirty (30)
miles from such offices (other than a relocation in either event to Dallas,
Texas), or the requirement by the Company for Executive to be based anywhere
other than the Company's offices at such location or in Dallas, Texas on an
extended basis, except for required travel on the Company's business to an
extent substantially consistent with Executive's business travel obligations; or
(F) the requirement that Executive report to a person who is below the level of
Chief Financial Officer. "Good Reason Process" shall mean that (i) the Executive
reasonably determines in good faith that a "Good Reason" event has occurred;
(ii) Executive notifies the Company in writing of the occurrence of the Good
Reason event; (iii) Executive cooperates in good faith with the Company's
efforts, for a period not less than ninety (90) days following such notice, to
modify Executive's employment situation in a manner acceptable to Executive and
Company; and (iv) notwithstanding such efforts, one or more of the Good Reason
events continues to exist and has not been modified in a manner acceptable to
Executive. If the Company cures the Good Reason event during the ninety (90) day
period, Good Reason shall be deemed not to have occurred.

     (f) Notice of Termination.  Except for termination as specified in
Subparagraph 6(a), any termination of Executive's employment by the Company or
any such termination by Executive shall be communicated by written Notice of
Termination to the other party hereto.  For purposes of this Agreement, a
"Notice of Termination" shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon.

     (g) Date of Termination.  "Date of Termination" shall mean:  (A) if
Executive's employment is terminated by his death, the date of his death; (B) if
Executive's employment is terminated on account of disability under Subparagraph
6(b) or by the Company for Cause under Subparagraph 6(c), the date on which
Notice of Termination is given; (C) if Executive's employment is terminated by
the Company under Subparagraph 6(d), sixty (60) days after the date on which a
Notice of Termination is given; and (D) if Executive's employment is terminated
by Executive under Subparagraph 6(e), thirty (30) days after the date on which a
Notice of Termination is given.

                                       8
<PAGE>

7.   Compensation Upon Termination or During Disability.

     (a) If Executive's employment terminates by reason of his death, the
Company shall, within ninety (90) days of death, pay in a lump sum amount to
such person as Executive shall designate in a notice filed with the Company or,
if no such person is designated, to Executive's estate, Executive's accrued and
unpaid Base Salary or, if applicable, his Adjusted Base Salary, to the date of
his death, plus accrued and unpaid Incentive Compensation, if any, for the
fiscal year preceding termination and Pro Rata Incentive Compensation, if any,
under Subparagraph 3(a).  For a period of one (1) year following the Date of
Termination, the Company shall pay such health insurance premiums as may be
necessary to allow Executive's spouse and dependents to receive health insurance
coverage substantially similar to coverage they received prior to the Date of
Termination.  In addition to the foregoing, any payments to which Executive's
spouse, beneficiaries, or estate may be entitled under any employee benefit plan
shall also be paid in accordance with the terms of such plan or arrangement.
Such payments, in the aggregate, shall fully discharge the Company's obligations
hereunder.

     (b) During any period that Executive fails to perform his duties hereunder
as a result of incapacity due to physical or mental illness, Executive shall
continue to receive his accrued and unpaid Base Salary or, if applicable, his
Adjusted Base Salary and Incentive Compensation payments, if any, under
Subparagraph 3(a), until Executive's employment is terminated due to disability
in accordance with Subparagraph 6(b) or until Executive terminates his
employment in accordance with Subparagraph 6(e), whichever first occurs, at
which point executive shall then receive any accrued and unpaid Incentive
Compensation, if any, for the fiscal year preceding termination and Pro Rata
Incentive Compensation, if any, under Subparagraph 3(a).  For a period of one
(1) year following the Date of Termination, the Company shall pay such health
insurance premiums as may be necessary to allow Executive, Executive's spouse
and dependents to receive health insurance coverage substantially similar to
coverage they received prior to the Date of Termination.  Upon termination due
to death prior to the termination first to occur as specified in the preceding
sentence, Subparagraph 7(a) shall apply.

     (c) If Executive's employment is terminated by Executive other than for
Good Reason as provided in Subparagraph 6(e), then the Company shall, through
the Date of Termination, pay Executive his accrued and unpaid Base Salary or, if
applicable, his Adjusted Base Salary at the rate in effect at the time Notice of
Termination is given.  Thereafter, the Company shall have no further obligations
to Executive except as otherwise expressly provided under this Agreement,
provided any such termination shall not adversely affect or alter Executive's
rights under any employee benefit plan of the Company in which Executive, at the
Date of Termination, has a vested interest, unless otherwise provided in such
employee benefit plan or any agreement or other instrument attendant thereto.

     (d) If Executive terminates his employment for Good Reason as provided in
Subparagraph 6(e) or if Executive's employment is terminated by the Company
without Cause as provided in Subparagraph 6(d), then the Company shall, through
the Date of Termination, pay Executive his accrued and unpaid Base Salary or, if
applicable, his Adjusted Base Salary at the rate in effect at the time Notice of
Termination is given and accrued and unpaid Incentive

                                       9
<PAGE>

Compensation, if any, for the fiscal year preceding termination and Pro Rata
Incentive Compensation, if any, under Subparagraph 3(a). In addition, subject to
signing by Executive of a general release of claims in a form and manner
satisfactory to the Company,

          (i) the Company shall continue Executive's compensation at a rate
     equal to the sum of Executive's Average Base Salary and his Average
     Incentive Compensation, payable for the remaining length of the Period of
     Employment after the Date of Termination, but in no event for fewer than
     twenty-four (24) months (the "Severance Amount").  The Severance Amount
     shall be paid out in substantially equal bi-weekly installments, in
     arrears; provided, however, that in the event Executive commences any
     employment with an employer other than the Company during the twelve (12)
     month period ending on the first anniversary of the Date of termination,
     the Company shall be entitled to set-off against the remaining Severance
     Amount fifty percent (50%) of the amount of any cash compensation received
     by Executive from the new employer during such period; provided, further,
     that in the event Executive commences any employment with, or is employed
     by, any employer other than the Company during the twelve (12) month period
     following the first anniversary of the Date of Termination, the Company
     shall be entitled to set-off against the remaining Severance Amount twenty-
     five percent (25%) of the amount of any cash received by Executive from
     such employer during such period.  From time to time, Executive may be
     asked to certify to the Company that he has not accepted employment with a
     new employer (including, without limitation, contract and consulting
     agreements).  For purposes of this Agreement, "Average Base Salary" shall
     mean the average of the annual Base Salary or, if applicable, Adjusted Base
     Salary received by Executive for each of the three (3) immediately
     preceding fiscal years or such fewer number of complete fiscal years as
     Executive may have been employed by the Company.  For purposes of this
     Agreement, "Average Incentive Compensation" shall mean the average of the
     annual incentive compensation under Subparagraph 3(a) received by Executive
     for the three (3) immediately preceding fiscal years or such fewer number
     of complete fiscal years as Executive may have been employed by the
     Company.  In no event shall "Average Incentive Compensation" include any
     sign-on bonus, retention bonus or any other special bonus.  Notwithstanding
     the foregoing, if the Executive breaches any of the provisions contained in
     Paragraphs 4 and 5 of this Agreement, all payments of the Severance Amount
     shall immediately cease.  Notwithstanding the foregoing, in the event
     Executive terminates his employment for Good Reason as provided in
     Subparagraph 6(e), he shall be entitled to the Severance Amount only if he
     provides the Notice of Termination provided for in Subparagraph 6(f) within
     thirty (30) days after the occurrence of the event or events which
     constitute such Good Reason as specified in clauses (A), (B), (C), (D), (E)
     and (F) of Subparagraph 6(e);

          (ii) in addition to any other benefits to which Executive may be
     entitled in accordance with the Company's then existing severance policies,
     the Company shall, for a period of one (1) year commencing on the Date of
     Termination, pay such health insurance premiums as may be necessary to
     allow Executive, Executive's spouse and dependents to continue to receive
     health insurance coverage substantially similar to the coverage they
     received prior to his termination of employment.

                                       10
<PAGE>

     (e) If Executive's employment is terminated by the Company for Cause as
provided in Subparagraph 6(c), then the Company shall, through the Date of
Termination, pay Executive his accrued and unpaid Base Salary or, if applicable,
his Adjusted Base Salary at the rate in effect at the time Notice of Termination
is given.  Thereafter, the Company shall have no further obligations to
Executive except as otherwise expressly provided under this Agreement, provided
any such termination shall not adversely affect or alter Executive's rights
under any employee benefit plan of the Company in which Executive, at the Date
of Termination, has a vested interest, unless otherwise provided in such
employee benefit plan or any agreement or other instrument attendant thereto.

     (f) Regardless of the reason for termination, for a period of five (5)
years beginning on the Date of Termination, the Company will provide such
reasonable assistance and support to Executive as he shall reasonably require in
connection with the preparation and filing of tax returns, statements and forms
insofar as such returns, statements or forms relate to Executive's association
with the Company or any of its predecessors or affiliates.  At the Company's
election, such assistance and support shall be provided by either tax personnel
from the Company or certified public accountants selected and compensated by the
Company.

     (g) Nothing contained in the foregoing Subparagraphs 7(a) through 7(e)
shall be construed so as to affect Executive's rights or the Company's
obligations relating to agreements or benefits which are unrelated to
termination of employment.

8.   Change in Control Payment.  The provisions of this Paragraph 8 set forth
certain terms of an agreement reached between Executive and the Company
regarding Executive's rights and obligations upon the occurrence of a Change in
Control of the Company.  These provisions are intended to assure and encourage
in advance Executive's continued attention and dedication to his assigned duties
and his objectivity during the pendency and after the occurrence of any such
event.  These provisions shall apply in lieu of, and expressly supersede, the
provisions of Subparagraph 7(d)(i) regarding severance pay upon a termination of
employment, if such termination of employment occurs within eighteen (18) months
after the occurrence of the first event constituting a Change of Control;
provided that such first event occurs during the Period of Employment.  These
provisions shall terminate and be of no further force or effect beginning
eighteen (18) months after the occurrence of a Change of Control.

                                       11
<PAGE>

     (a)  Change in Control.

          (i) If within eighteen (18) months after the occurrence of the first
     event constituting a Change in Control, Executive's employment is
     terminated by the Company without Cause as provided in Subparagraph 6(d) or
     Executive terminates his employment for Good Reason as provided in
     Subparagraph 6(e), then the Company shall pay Executive the Severance
     Amount as provided in Subparagraph 7(d)(i) in substantially bi-weekly
     installments, in arrears, over twenty-four (24) months.  Notwithstanding
     the foregoing, if the Executive breaches any of the provisions contained in
     Paragraphs 4 and 5 of this Agreement, all payments of the Severance Amount
     shall immediately cease; and

          (ii) Within fifteen (15) days after Executive becomes entitled to
     receive the Severance Amount under (i) above, the Company shall place funds
     in an amount equal to the estimated Severance Amount in escrow, pursuant to
     arrangements that are mutually acceptable to the Company and Executive (the
     "Escrow Arrangement").  The Escrow Arrangement shall be maintained until
     the final installment payment of the Severance Amount has been made;

          (iii)  Notwithstanding anything to the contrary in any applicable
     option agreement or stock-based award, in the event of a Change in Control
     during the Period of Employment, any unvested portions of any stock option
     or other stock-based award shall fully vest and become exercisable one
     hundred eighty (180) days after the date of the Change in Control or, if
     earlier, on the date the Executive's employment with the Company is
     terminated by the Company without Cause or by the Executive for Good
     Reason.  Executive shall have three hundred sixty (360) days following the
     Date of Termination to exercise all his stock options.  Executive shall
     also be entitled to any other rights and benefits with respect to stock-
     related awards, to the extent and upon the terms provided in the employee
     stock option or incentive plan or any agreement or other instrument
     attendant thereto pursuant to which such options or awards were granted;
     and

          (iv) The Company shall, for a period of one (1) year commencing on the
     Date of Termination, pay such health insurance premiums as may be necessary
     to allow Executive, Executive's spouse and dependents to continue to
     receive health insurance coverage substantially similar to the coverage
     they received prior to his termination of employment.

     (b)  Gross Up Payment

          (i) Excess Parachute Payment.  If Executive incurs the tax (the
     "Excise Tax" imposed by Section 4999 of the Internal Revenue Code of 1986
     (the "Code") on "excess parachute payments" within the meaning of Section
     280G(b)(1) of the Code, the Company will pay to Executive an amount (the
     "Gross Up Payment" such that the net amount retained by Executive, after
     deduction of any Excise Tax on the excess parachute payment and any
     federal, state and local income taxes and employment taxes (together

                                       12
<PAGE>

     with penalties and interest) and Excise Tax upon the payment provided for
     by this Subparagraph 8(c)(i), will be equal to the Severance Amount.

          (ii) Applicable Rates.  For purposes of determining the amount of the
     Gross Up Payment, Executive will be deemed to pay federal income taxes at
     the highest marginal rate of federal income taxation in the calendar year
     in which the Gross Up Payment is to be made and state and local income
     taxes at the highest marginal rates of taxation in the state and locality
     of Executive's residence on the date of Executive's Termination, net of the
     maximum reduction in federal income taxes that could be obtained from
     deduction of such state and local taxes.

          (iii) Determination of Gross Up Payment Amount.  The determination of
     whether the Excise Tax is payable and the amount thereof will be based upon
     the opinion of tax counsel selected by Executive and approved by the
     Company, which approval will not be unreasonably withheld.  If such opinion
     is not finally accepted by the Internal Revenue Service (or state and local
     taxing authorities), then appropriate adjustments to the Excise Tax will be
     computed and additional Gross Up Payments will be made in the manner
     provided by this Subparagraph (c).

          (iv) Time for Payment.  The Company will pay the estimated amount of
     the Gross Up Payment in cash to Executive at such time or times when the
     Excise Tax is due.  Executive and the company agree to reasonably cooperate
     in the determination of the actual amount of the Gross Up Payment.
     Further, Executive and the Company agree to make such adjustments to the
     estimated amount of the Gross Up Payment as may be necessary to equal the
     actual amount of the Gross Up Payment, which in the case of Executive will
     refer to refunds of prior overpayments and in the case of the Company will
     refer to makeup of prior underpayments.

     (c) Definitions.  For purposes of this Paragraph 8, the following terms
shall have the following meanings:

          "Change in Control" shall mean any of the following:

          (a) the acquisition by any individual, entity or group (within the
     meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (the
     "Acquiring Person"), other than the Company, or any of its Subsidiaries or
     any Investor or Excluded Group, of beneficial ownership (within the meaning
     of Rule 13d-3 promulgated under the Exchange Act) of thirty-five percent
     (35%) or more of the combined voting power or economic interests of the
     then outstanding voting securities of the Company entitled to vote
     generally in the election of directors; provided, however, that any
     transfer from any Investor or Excluded Group will not result in a Change in
     Control if such transfer was part of a series of related transactions the
     effect of which, absent the transfer to such Acquiring Person by the
     Investor or Excluded Group, would not have resulted in the acquisition by
     such Acquiring Person of thirty-five percent (35%) or more of the combined
     voting power or economic interests of the then outstanding voting
     securities; or

                                       13
<PAGE>

          (b) during any period of twelve (12) consecutive months after the
     Issuance Date, the individuals who at the beginning of any such 12-month
     period constituted a majority of the Class A Directors and Class C
     Directors (the "Incumbent Non-Investor Majority") cease for any reason to
     constitute at least a majority of such Class A Directors and Class C
     Directors; provided that (i) any individual becoming a director whose
     election, or nomination for election by the Company's stockholders, was
     approved by a vote of the stockholders having the right to designate such
     director and (ii) any director whose election to the Board or whose
     nomination for election by the stockholders of the Company was approved by
     the requisite vote of directors entitled to vote on such election or
     nomination in accordance with the Restated Certificate of Incorporation of
     the Company, shall, in each such case, be considered as though such
     individual were a member of the Incumbent Non-Investor Majority, but
     excluding, as a member of the Incumbent Non-Investor Majority, any such
     individual whose initial assumption of office is in connection with an
     actual or threatened election contest relating to the election of the
     directors of the Company (as such terms are used in Rule 14a-11 of
     Regulation 14A promulgated under the Exchange Act) and further excluding
     any person who is an affiliate or associate of an Acquiring Person having
     or proposing to acquire beneficial ownership of twenty-five percent (25%)
     or more of the combined voting power of the then outstanding voting
     securities of the Company entitled to vote generally in the election of
     directors; or

          (c) the approval by the stockholders of the Company of a
     reorganization, merger or consolidation, in each case, with respect to
     which all or substantially all of the individuals and entities who were the
     respective beneficial owners of the voting securities of the Company
     immediately prior to such reorganization, merger or consolidation do not,
     following such reorganization, merger or consolidation, beneficially own,
     directly or indirectly, more than fifty-seven and one-half percent (57.5%)
     of the combined voting power of the then outstanding voting securities
     entitled to vote generally in the election of directors of the Company
     resulting from such reorganization, merger or consolidation; or

          (d) the sale or other disposition of assets representing fifty percent
     (50%) or more of the assets of the Company in one transaction or series of
     related transactions.

     All defined terms used in the definition of "Change in Control" shall have
     the same meaning as set forth in the Form of Certificate of Designation of
     Series B Convertible Preferred Stock of Wyndham International, Inc.

          "Company" shall mean not only Wyndham International, Inc., but also
     its successors by merger or otherwise.

9.  Notice.  For purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
certified mail, return receipt requested, postage prepaid, addressed as follows:

                                       14
<PAGE>

     if to the Executive:

          At his home address as shown
          in the Company's personnel records;

     if to the Company:

          Wyndham International, Inc.
          1950 Stemmons Freeway
          Suite 6001
          Dallas, TX  75207
          Attention: Senior Vice President of Human Resources and General
                     Counsel

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

10.  Miscellaneous. No provisions of this Agreement may be modified, waived, or
discharged unless such waiver, modification, or discharge is agreed to in
writing and signed by Executive and such officer of the Company as may be
specifically designated by the Board.  No waiver by either party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.  This Agreement, with
its Exhibit A, constitutes the entire agreement between the parties with respect
to the subject matter hereof.  No agreements or representations, oral or
otherwise, express or implied, unless specifically referred to herein, with
respect to the subject matter hereof have been made by either party which are
not set forth expressly in this Agreement and Exhibit A.  This Agreement
supersedes all prior agreements between the parties with respect to any related
subject matter.  The validity, interpretation, construction, and performance of
this Agreement shall be governed by the laws of the State of Texas (without
regard to principles of conflicts of laws).

11.  Validity.  The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.  The invalid portion of this Agreement, if any, shall be modified by any
court having jurisdiction to the extent necessary to render such portion
enforceable.

12.  Counterparts.  This Agreement may be executed in several counterparts, each
of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

13.  Arbitration; Other Disputes.  In the event of any dispute or controversy
arising under or in connection with this Agreement, the parties shall first
promptly try in good faith to settle such dispute or controversy by mediation
under the applicable rules of the American Arbitration Association before
resorting to arbitration.  In the event such dispute or controversy remains

                                       15
<PAGE>

unresolved in whole or in part for a period of thirty (30) days after it arises,
the parties will settle any remaining dispute or controversy exclusively by
arbitration in Dallas, Texas, in accordance with the rules of the American
Arbitration Association then in effect.  Judgment may be entered on the
arbitrator's award in any court having jurisdiction.  Notwithstanding the above,
the Company shall be entitled to seek a restraining order or injunction in any
court of competent jurisdiction to prevent any continuation of any violation of
Paragraph 4 or 5 hereof.  Furthermore, should a dispute occur concerning
Executive's mental or physical capacity as described in Subparagraph 6(b), 6(c)
or 7(b), a doctor selected by Executive and a doctor selected by the Company
shall be entitled to examine Executive.  If the opinion of the Company's doctor
and Executive's doctor conflict, the Company's doctor and Executive's doctor
shall together agree upon a third doctor, whose opinion shall be binding.  Any
amount to which Executive is entitled under this Agreement (including any
disputed amount), which is not paid when due, shall bear interest at a rate
equal to the lesser of eighteen percent (18%) per annum or the maximum lawful
rate.

14.  Third-Party Agreements and Rights.  Executive represents to the Company
that Executive's execution of this Agreement, Executive's employment with the
Company and the performance of Executive's proposed duties for the Company will
not violate any obligations Executive may have to any employer or other party,
and Executive will not bring to the premises of the Company any copies or other
tangible embodiments of non-public information belonging to or obtained from any
such previous employment or other party.

15.  Litigation and Regulatory Cooperation.  During and after Executive's
employment, Executive shall reasonably cooperate with the Company in the defense
or prosecution of any claims or actions now in existence or which may be brought
in the future against or on behalf of the Company which relate to events or
occurrences that transpired while Executive was employed by the Company;
provided, however, that such cooperation shall not materially and adversely
affect Executive or expose Executive to an increased probability of civil or
criminal litigation.  Executive's cooperation in connection with such claims or
actions shall include, but not be limited to, being available to meet with
counsel to prepare for discovery or trial and to act as a witness on behalf of
the Company at mutually convenient times.  During and after Executive's
employment, Executive also shall cooperate fully with the Company in connection
with any investigation or review of any federal, state or local regulatory
authority as any such investigation or review relates to events or occurrences
that transpired while Executive was employed by the Company.  The Company shall
also provide Executive with compensation on an hourly basis (to be derived from
the sum of his Base Salary or, if applicable, Adjusted Base Salary and Average
Incentive Compensation) for requested litigation and regulatory cooperation that
occurs after his termination of employment, and reimburse Executive for all
costs and expenses incurred in connection with his performance under this
Paragraph 15, including, but not limited to, reasonable attorneys' fees and
costs.

16.  Gender Neutral.  Wherever used herein, a pronoun in the masculine gender
shall be considered as including the feminine gender unless the context clearly
indicates otherwise.

                                       16
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement effective on
the date and year first above written.

                                                   WYNDHAM INTERNATIONAL, INC.

                                                   By: /s/ MARY WATSON
                                                       -----------------------
                                                   Its: Sr. VP HR
                                                        ----------------------

                                                        /s/ RICHARD A. SMITH
                                                        ----------------------
                                                        Richard A. Smith

                                       17

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