Document:

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                                                                     EXHIBIT 4.1

THE WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT (THE
"SECURITIES") HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
"SECURITIES ACT") OR UNDER ANY STATE SECURITIES OR BLUE SKY LAWS ("BLUE SKY
LAWS"). NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER
DISPOSITION OF THIS WARRANT OR THE SECURITIES OR ANY INTEREST THEREIN MAY BE
MADE EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND ANY APPLICABLE BLUE SKY LAWS OR (B) IF THE COMPANY HAS BEEN
FURNISHED WITH BOTH AN OPINION OF COUNSEL FOR THE HOLDER, WHICH OPINION AND
COUNSEL SHALL BE REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT NO
REGISTRATION IS REQUIRED BECAUSE OF THE AVAILABILITY OF AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE BLUE SKY LAWS, AND
ASSURANCES THAT THE TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER
DISPOSITION WILL BE MADE ONLY IN COMPLIANCE WITH THE CONDITIONS OF ANY SUCH
REGISTRATION OR EXEMPTION.

                   WARRANT TO PURCHASE SHARES OF COMMON STOCK
                           OF METEOR INDUSTRIES, INC.

WARRANT NO. _________                                           Denver, Colorado
                                                             _____________, 2001

         This certifies that, for value received, _____________________________,
or [its/his/her] successors or assigns (the "Holder") is entitled to purchase
from Meteor Industries, Inc. (the "Company") _______________________________
(__________) fully paid and nonassessable shares (the "Shares") of the Company's
Common Stock, $.001 par value (the "Common Stock"), at an exercise price of
$5.50 per share (the "Exercise Price"), subject to adjustment as herein
provided. This Warrant may be exercised by Holder at any time after the date
hereof; provided, however, that, Holder shall in no event have the right to
exercise this Warrant or any portion thereof later than the five (5) year
anniversary of the date hereof, at which time all of Holder's rights hereunder
shall expire.

         This Warrant is subject to the following provisions, terms and
conditions:

         1. Exercise of Warrant. The rights represented by this Warrant may be
exercised by the Holder, in whole or in part (but not as to a fractional share
of Common Stock), by the surrender of this Warrant (properly endorsed, if
required, at the Company's principal office in Denver, Colorado, or such other
office or agency of the Company as the Company may designate by notice in
writing to the Holder at the address of such Holder appearing on the books of
the Company at any time within the period above named), and upon payment to it
by certified check, bank draft or cash of the purchase price for such Shares.
The Company agrees that the Shares so purchased shall have and are deemed to be
issued to the Holder as the record owner of such Shares as of the close of
business on the date on which this Warrant shall have been surrendered and
payment made for such Shares as aforesaid. Certificates for the Shares of Common
Stock so purchased shall be delivered to the Holder within a reasonable time,
not exceeding ten (10) days, after the rights represented by this Warrant shall
have been so exercised, and, unless this Warrant has expired, a new Warrant
representing the number of Shares, if any, with respect to which this Warrant
shall not then have been exercised shall also be delivered to the Holder within
such time. The Company may require that any such new Warrant or any certificate
for Shares purchased upon the exercise hereof bear a legend substantially
similar to that which is contained on the face of this Warrant.

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         2. Transferability of this Warrant. This Warrant is issued upon the
following terms, to which Holder consents and agrees:

                  (a) Until this Warrant is transferred on the books of the
Company, the Company will treat the Holder of this Warrant registered as such on
the books of the Company as the absolute owner hereof for all purposes without
being affected by any notice to the contrary.

                  (b) This Warrant may not be exercised, and this Warrant and
the Shares underlying this Warrant shall not be transferable, except in
compliance with all applicable state and federal securities laws, regulations
and orders, and with all other applicable laws, regulations and orders.

                  (c) The Warrant may not be transferred, and the Shares
underlying this Warrant may not be transferred, without the Holder obtaining an
opinion of counsel satisfactory in form and substance to the Company's counsel
stating that the proposed transaction will not result in a prohibited
transaction under the Securities Act of 1933, as amended ("Securities Act"), and
applicable Blue Sky laws. By accepting this Warrant, the Holder agrees to act in
accordance with any conditions reasonably imposed on such transfer by such
opinion of counsel.

                  (d) Neither this issuance of this Warrant nor the issuance of
the Shares underlying this Warrant have been registered under the Securities
Act.

         3. Certain Covenants of the Company. The Company covenants and agrees
that all Shares which may be issued upon the exercise of the rights represented
by this Warrant, upon issuance and full payment for the Shares so purchased,
will be duly authorized and issued, fully paid and nonassessable and free from
all taxes, liens and charges with respect to the issue hereof, except those that
may be created by or imposed upon the Holder or its property, and without
limiting the generality of the foregoing, the Company covenants and agrees that
it will from time to time take all such actions as may be requisite to assure
that the par value per share of the Common Stock is at all times equal to or
less than the effective purchase price per share of the Common Stock issuable
pursuant to this Warrant. The Company further covenants and agrees that during
the period within which the rights represented by this Warrant may be exercised,
the Company will at all times have authorized and reserved free of preemptive or
other rights for the exclusive purpose of issue upon exercise of the purchase
rights evidenced by this Warrant, a sufficient number of shares of its Common
Stock to provide for the exercise of the rights represented by this Warrant.

         4. Adjustment of Exercise Price and Number of Shares. The Exercise
Price and number of Shares are subject to the following adjustments:

                  (a) Adjustment of Exercise Price for Stock Dividend, Stock
Split or Stock Combination. In the event that (i) any dividends on any class of
stock of the Company payable in Common Stock or securities convertible into or
exercisable for Common Stock ("Common Stock Equivalents") shall be paid by the
Company, (ii) the Company shall subdivide its then outstanding shares of Common
Stock into a greater number of shares, or (iii) the Company shall combine its
outstanding shares of Common Stock, by reclassification or otherwise, then, in
any such event, the Exercise Price in effect immediately prior to such event
shall (until adjusted again pursuant hereto) be adjusted immediately after such
event to a price (calculated to the nearest full cent) determined by dividing
(a) the number of shares of Common Stock outstanding immediately prior to such
event, multiplied by the then existing Exercise Price, by (b) the total number
of shares of Common Stock outstanding

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immediately after such event, and the resulting quotient shall be the adjusted
Exercise Price per share. No adjustment of the Exercise Price shall be made if
the amount of such adjustment shall be less than $.05 per share, but in such
case any adjustment that would otherwise be required then to be made shall be
carried forward and shall be made at the time and together with the next
subsequent adjustment which, together with any adjustment or adjustments so
carried forward, shall amount to not less than $.05 per share.

                  (b) Adjustment of Number of Shares Purchasable on Exercise of
Warrants. Upon each adjustment of the Exercise Price pursuant to this Section,
the Holder shall thereafter (until another such adjustment) be entitled to
purchase at the adjusted Exercise Price the number of shares, calculated to the
nearest full share, obtained by multiplying the number of shares specified in
such Warrant (as adjusted as a result of all adjustments in the Exercise Price
in effect prior to such adjustment) by the Exercise Price in effect prior to
such adjustment and dividing the product so obtained by the adjusted Exercise
Price.

                  (c) Notice as to Adjustment. Upon any adjustment of the
Exercise Price and any increase or decrease in the number of shares of Common
Stock purchasable upon the exercise of the Warrant, then, and in each such case,
the Company within thirty (30) days thereafter shall give written notice
thereof, by first class mail, postage prepaid, addressed to each Holder as shown
on the books of the Company, which notice shall state the adjusted Exercise
Price and the increased or decreased number of shares purchasable upon the
exercise of the Warrants, and shall set forth in reasonable detail the method of
calculation and the facts upon which such calculation is based.

                  (d) Effect of Reorganization, Reclassification, Merger, etc.
If at any time while this Warrant is outstanding there should be (i) any capital
reorganization of the capital stock of the Company (other than the issuance of
any shares of Common Stock in subdivision of outstanding shares of Common Stock
by reclassification or otherwise and other than a combination of shares provided
for in Section 4(a) hereof), (ii) any consolidation or merger of the Company
with another corporation, or any sale, conveyance, lease or other transfer by
the Company of all or substantially all of its property to any other
corporation, which is effected in such a manner that the holders of Common Stock
shall be entitled to receive cash, stock, securities, or assets with respect to
or in exchange for Common Stock, or (iii) any dividend or any other distribution
upon any class of stock of the Company payable in stock of the Company of a
different class, other securities of the Company, or other property of the
Company (other than cash), then, as a part of such transaction, lawful provision
shall be made so that Holder shall have the right thereafter to receive, upon
the exercise hereof, the number of shares of stock or other securities or
property of the Company, or of the successor corporation resulting from such
consolidation or merger, or of the corporation to which the property of the
Company has been sold, conveyed, leased or otherwise transferred, as the case
may be, which the Holder would have been entitled to receive upon such capital
reorganization, reclassification of capital stock, consolidation, merger, sale,
conveyance, lease or other transfer, if this Warrant had been exercised
immediately prior to such capital reorganization, reclassification of capital
stock, consolidation, merger, sale, conveyance, lease or other transfer. In any
such case, appropriate adjustments (as determined by the Board of Directors of
the Company) shall be made in the application of the provisions set forth in
this Warrant (including the adjustment of the Exercise Price and the number of
Shares issuable upon the exercise of the Warrant) to the end that the provisions
set forth herein shall thereafter be applicable, as near as reasonably may be,
in relation to any shares or other property thereafter deliverable upon the
exercise of the Warrant as if the Warrant had been exercised immediately prior
to such capital reorganization, reclassification of capital stock, such
consolidation, merger, sale, conveyance, lease or other transfer and the Holder
had carried out the terms

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of the exchange as provided for by such capital reorganization, consolidation or
merger. The Company shall not effect any such capital reorganization,
consolidation, merger or transfer unless, upon or prior to the consummation
thereof, the successor corporation or the corporation to which the property of
the Company has been sold, conveyed, leased or otherwise transferred shall
assume by written instrument the obligation to deliver to the Holder such shares
of stock, securities, cash or property as in accordance with the foregoing
provisions such Holder shall be entitled to purchase.

         5. Redemption of Warrants

                  (a) Redemption Price. This Warrant may be redeemed at the
option of the Company, at any time after the first anniversary of the date
hereof following a period of fourteen (14) consecutive trading days where the
per share average closing bid price of the Common Stock exceeds Seven and 50/100
Dollars ($7.50), on notice as set forth in Section 5(b) hereof, and at a
redemption price equal to One Cent ($.01) for each Share purchasable under this
Warrant; provided, however, that this Warrant may not be redeemed by the Company
unless the Shares purchasable hereunder have been registered with the Securities
and Exchange Commission or are otherwise freely tradable. For purposes of this
Section, the closing bid price of the Common Stock shall be determined by the
closing bid price as reported by Nasdaq so long as the Common Stock is quoted on
the Nasdaq National Market or SmallCap Market Systems and, if the Common Stock
is listed on a national securities exchange, shall be determined by the last
reported sale price on the primary exchange on which the Common Stock is traded.

                  (b) Notice of Redemption. In the case of any redemption of
this Warrant, the Company shall give notice of such redemption to the Holder
hereof as provided in this Section 5(b). Notice of redemption to the Holder of
this Warrant shall be given by mailing by first-class mail, postage prepaid, a
notice of such redemption not less than thirty (30) days prior to the date fixed
for redemption. Any notice which is given in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the Holder
receives the notice. Each such notice shall specify the date fixed for
redemption, the place of redemption and the redemption price of $.01 per Share
at which this Warrant is to be redeemed, and shall state that payment of the
redemption price of the Warrant will be made up on surrender of this Warrant at
such place of redemption, and that if not exercised by the close of business on
the date fixed for redemption, the exercise rights of the Warrant shall expire
unless extended by the Company. Such notice shall also state the current
Exercise Price and the date on which the right to exercise the Warrant will
expire unless extended by the Company.

                  (c) Payment of Redemption Price. If notice of redemption shall
have been given as provided in Section 5(b), the redemption price of $.01 per
Share shall, unless the Warrant is theretofore exercised pursuant to the terms
hereof, become due and payable on the date and at the place stated in such
notice. On and after such date of redemption, the exercise rights of this
Warrant shall expire. On presentation and surrender of this Warrant at such
place of payment in such notice specified, this Warrant shall be paid and
redeemed at the redemption price of $.01 per Share within tem (10) days
thereafter.

         6. No Rights as Shareholders. This Warrant shall not entitle the Holder
as such to any voting rights or other rights as a shareholder of the Company.

         7. Registration Rights. If at any time the Company shall propose to
file any registration statement (other than any registration on Form S-4, S-8 or
any other similarly inappropriate form, or any

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successor forms thereto) under the 1933 Act covering a public offering of the
Company's Common Stock (the "Registration Statement"), it will notify the Holder
hereof at least thirty (30) days prior to each such filing (the "Registration
Notice") and will use its best efforts to include in the Registration Statement
(to the extent permitted by applicable regulation), the Shares purchased or
purchasable by the Holder upon the exercise of the Warrant to the extent
requested by the Holder hereof within twenty (20) days after receipt of notice
of such filing (which request shall specify the interest in this Warrant or the
Shares intended to be sold or disposed of by such Holder and describe the nature
of any proposed sale or other disposition thereof); provided, however, that if a
greater number of Shares is offered for participation in the proposed offering
than in the reasonable opinion of the managing underwriter of the proposed
offering can be accommodated without adversely affecting the proposed offering,
then the amount of Shares proposed to be offered by such Holder for
registration, as well as the number of securities of any other selling
shareholders participating in the registration, shall be proportionately reduced
to a number deemed satisfactory by the managing underwriter. The Company shall
bear all expenses and fees incurred in connection with the preparation, filing,
and amendment of the Registration Statement with the Commission, except that the
Holder shall pay all fees, disbursements and expenses of any counsel or expert
retained by the Holder and all underwriting discounts and commissions, filing
fees and any transfer or other taxes relating to the Shares included in the
Registration Statement. The Holder of this Warrant agrees to cooperate with the
Company in the preparation and filing of any Registration Statement, and in the
furnishing of information concerning the Holder for inclusion therein, or in any
efforts by the Company to establish that the proposed sale is exempt under the
1933 Act as to any proposed distribution. The Holder understands that if the
Company has not received such information requested by the Company in the
Registration Notice within 20 days after Holder's receipt thereof, the Company
shall have no obligation to include any of Holder's Shares in the Registration
Statement.

         8. Governing Law. This Warrant shall be governed by and construed in
accordance with the laws of the State of Colorado.

         9. Amendments and Waivers. The provisions of this Warrant may not be
amended, modified or supplemented, and waiver or consents to departures from the
provisions hereof may not be given, unless the Company agrees in writing and has
obtained the written consent of the Holder.

         10. Notices. All notices or communications hereunder, except as herein
otherwise specifically provided, shall be in writing and if sent to the Holder
shall be mailed, delivered, or telefaxed and confirmed to the Holder at his or
her address set forth on the records of the Company; or if sent to the Company
shall be mailed, delivered, or telefaxed and confirmed to Meteor Industries,
Inc., 1401 Blake Street, Suite 200, Denver, Colorado 80202, or to such other
address as the Company or the Holder shall notify the other as provided in this
Section.

         IN WITNESS WHEREOF, Meteor Industries, Inc. has caused this Warrant to
be signed by its duly authorized officer in the date set forth above.

                                    METEOR INDUSTRIES, INC.

                                    By:_____________________________________
                                           Edward J. Names
                                           President and Chief Executive Officer

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                                SUBSCRIPTION FORM

         To be signed only upon exercise of Warrant.

         The undersigned, the holder of the within Warrant, hereby irrevocably
elects to exercise the purchase right represented by such Warrant for, and to
purchase thereunder, ____________________ of the shares of Common Stock of
Meteor Industries, Inc. (the "Shares") to which such Warrant relates and
herewith makes payment of $_____________ therefor in cash, certified check or
bank draft and requests that a certificate evidencing the Shares be delivered
to, ____________________________, the address for whom is set forth below the
signature of the undersigned:

Dated: ____________________

                                            ____________________________________
                                            (Signature)

                                            ____________________________________
                                            ____________________________________
                                            (Address)

                                     * * *

                                 ASSIGNMENT FORM

         To be signed only upon authorized transfer of Warrant.

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and
transfers unto _____________________________________ the right to purchase
shares of Common Stock of Meteor Industries, Inc. to which the within Warrant
relates and appoints ____________________ attorney, to transfer said right on
the books of _________________ with full power of substitution in the premises.

Dated: ____________________

                                            ____________________________________
                                            (Signature)

                                            ____________________________________
                                            ____________________________________
                                            (Address)<PAGE>   1

                                                                    EXHIBIT 10.1

                                                              March 21, 2001

CONFIDENTIAL

Ms. Glyn F. Aeppel
81 Parkridge Lane
Pittsburgh, PA  15228

RE:      EMPLOYMENT AGREEMENT

Dear Glyn:

It is my pleasure to confirm to you in this Employment Agreement ("Agreement")
the terms of your employment with Interstate Hotels Corporation ("Interstate"),
a Maryland corporation (the "Company") as Executive Vice President, Business
Development and Acquisitions.

                                TERM OF AGREEMENT

This Employment Agreement commences on March 29, 2001, and shall continue at the
will of the Company in accordance with the section of this Agreement captioned
Termination.

                           DUTIES AND RESPONSIBILITIES

As Executive Vice President, Business Development and Acquisitions, you will
report to the Vice Chairman and Chief Financial Officer and be a member of the
Executive Committee of the Company. You will perform such duties assigned to you
by the Vice Chairman and Chief Financial Officer or other executive officers of
the Company. The Company may change or modify your duties and responsibilities
with good reason.

While employed by the Company, you shall faithfully and diligently perform your
duties. At all times you shall exhibit the highest level of professional loyalty
for the Company, its shareholders, directors, officers, and employees.

                                  COMPENSATION

Your compensation shall consist of the following:

1.       Base Salary. It is understood that your Base Salary will be Eight
         Thousand Four Hundred Sixty-one and 53/100 Dollars ($8,461.53)
         bi-weekly. At the Company's discretion, the Base Salary may be adjusted
         to reflect merit increases based on your performance and other relevant
         circumstances. The Company will recognize

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Ms. Glyn F. Aeppel
March 21, 2001
Page 2 of 9

         a March __, 2002 review date, which will be a review of performance
         and/or merit.

2.       Cash Performance Bonus. You shall be eligible for a Performance Bonus
         based upon the Schedule attached to this Agreement as Exhibit "A". The
         payment of any bonus is subject to, and contingent upon, the approval
         of the Board of Directors. The precise method of the bonus
         calculations, and specific amount of the bonus shall be at the sole
         discretion of the Company and the Company has the right to alter, amend
         or terminate the bonus plan.

3.       Stock Options. Upon your commencement of employment with the Company,
         you will receive thirty thousand (30,000) stock option shares of the
         Company's common stock with an exercise price of $2.25 per option
         share. The option shares shall vest to the extent of one-third of the
         option shares on each of the first three anniversaries of your
         employment with the Company. All aspects of the vesting, issuance and
         administration of the option shares will be subject to the terms of the
         Company's Equity Incentive Plan.

                                    BENEFITS

1.       Health and Welfare. While employed by The Company, you shall be
         eligible to participate in any of The Company's health, dental and
         other insurance programs applicable to salaried employees. The Company
         shall pay a portion of the health care premium and you shall pay the
         remainder. If you are currently enrolled in any of The Company's health
         care plans, your current benefits will remain in effect with no lapse
         in coverage. If you are currently employed by The Company and are not
         enrolled in any of The Company's health care plans, you may apply as a
         late entrant in November each year. If you apply as a Late Entrant
         prior to the deadline in November, your coverage would become effective
         on the subsequent January 1. You may also apply as a Special Enrollee
         if you apply within thirty (30) days of either the involuntary loss of
         other health care coverage or within thirty (30) days of acquiring a
         new dependent as a result of marriage, birth, adoption or placement for
         adoption.

         For all new enrollees, the plan imposes a preexisting condition
         limitation. For New Enrollees and Special Enrollees, expenses related
         to a preexisting condition will not be considered if they are incurred
         within the first consecutive twelve (12) months beginning with the
         earlier of the first day of your waiting period or the first day of
         participation on the plan. For Late Entrants, expenses related to a
         pre-existing condition will not be considered if the expenses are
         incurred within the first consecutive eighteen (18) months beginning
         with the first day of your participation on the plan. The period of any
         preexisting exclusion that would otherwise apply to you or your
         dependents under the health care plan is reduced by the number of days
         of creditable coverage you or your dependants have as of the enrollment
         date in the plan.

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Ms. Glyn F. Aeppel
March 21, 2001
Page 3 of 9

         The current rate for employee contributions for family coverage under
         the highest level plan is approximately Fifty Five Dollars and Seventy
         Five Cents ($55.75) per week. Associate coverage under the highest
         level plan is approximately Twenty-Eight Dollars and Sixty Cents
         ($28.60) per week. For associates covering themselves plus one or two
         children, the highest level plan is approximately Forty-Five Dollars
         and Thirty Cents ($45.30) per week.

2.       Life and Accidental Death and Dismemberment Insurance. You
         automatically receive Life and Accidental Death and Dismemberment
         Insurance at no additional cost UPON COMMENCEMENT OF YOUR PARTICIPATION
         IN ONE OF THE COMPANY'S HEALTH PLANS. Both Life and Accidental Death
         and Dismemberment Insurance are in the amount of $500,000.

3.       Long-Term Disability (LTD) Insurance. You are eligible to purchase
         Long-Term Disability Insurance beginning the first day of the month
         after you complete ninety (90) days of full-time service. You shall pay
         the premium for Long-Term Disability Insurance in accordance with the
         terms and provisions of the applicable policies.

4.       Salary Continuance. If you become medically disabled, you will receive
         Salary Continuance in accordance with the terms and provisions of the
         applicable policies. No additional cost will be incurred UPON
         COMMENCEMENT OF YOUR PARTICIPATION IN THE LONG-TERM DISABILITY PLAN.

5.       Travel Accident Insurance. You are eligible to receive Travel Accident
         Insurance in accordance with the terms and provisions of the applicable
         policies. Your position entitles you to additional optional air travel
         benefits (for a nominal personal cost). An enrollment form is enclosed.
         You must complete this form, even if it is just to decline this
         additional coverage.

6.       Car Allowance. You shall receive a bi-weekly car allowance of Three
         Hundred Thirty-six Dollars and Ninety-two Cents ($336.92). This
         allowance shall be processed through payroll and subject to all
         applicable taxes.

7.       Executive Retirement Plan. Your position entitles you to participate in
         the Interstate Hotels Executive Retirement Plan. Under the current
         Plan, the annual contribution to your account will equal 8% of your
         Base Salary earned during the year. All aspects of the contribution,
         vesting, distribution, and administration of the Plan will be governed
         by the terms of the Plan then in effect.

8.       Additional Benefits. With the approval of the Board of Directors, new
         or enhanced programs such as Stock Options Stock Purchase Programs may
         be made available. At such time, you will be eligible to participate at
         the Vice President level. All aspects of the contributions, vesting
         distribution, and administration of such plans will be governed by the
         terms of the plans if and when in effect.

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Ms. Glyn F. Aeppel
March 21, 2001
Page 4 of 9

9.       Vacation. You will be entitled to not less than twenty days of paid
         vacation per year. However, you may take a reasonable amount of paid
         vacation in addition to that provided by the foregoing, consistent with
         your personal needs, and the requirements of your job subject to the
         approval of your supervisor.

                                 CONFIDENTIALITY

You acknowledge and agree that any and all Intellectual Property and Proprietary
Information of the Company or which relates to, directly or indirectly, the
business or operations of the Company, is and shall be the exclusive property of
the Company. You shall not disclose such Proprietary Information or any other
confidential information to anyone not employed by the Company without the
express written permission of the Company. You agree that this obligation will
continue after the expiration of this Agreement until such Proprietary
Information becomes public information as a result of having been publicized by
the Company. Proprietary Information is defined as all papers, books and records
of every kind and description relating to the business affairs of the Company,
whether or not prepared by you, shall be the sole and exclusive property of the
Company, and you shall surrender them to the Company at any time upon request of
the Company.

For the purposes of the Agreement, the term "Intellectual Property" shall be
defined as suggestions, patents, plans, proposals, inventions, improvements,
processes, designs, logos, symbols, trademarks, service marks, trade names,
writings, documents, notes, sketches, manuals, graphics, marketing materials,
and any copyrighted materials.

                  NONSOLICITATION, NONPIRACY AND NONCOMPETITION

During a period which ends six (6) months after the termination of this
Agreement, you shall not (i) directly or indirectly, either yourself or anyone
else solicit any customer of the Company or any hotel managed or owned by the
Company for the purpose of selling to such customer any services provided by the
Company or any hotel managed or owned by the Company or (ii) solicit or endeavor
to cause any employee of the Company or any affiliated or related entity to
leave his/her employment with the Company or induce or attempt to induce any
such employee to breach any employment agreement with the Company or any
affiliated or related entity or otherwise interfere with the employment of any
such employee or (iii) work for any company that competes with the Company.

                                   TERMINATION

1.       Termination Provisions. Notwithstanding anything herein to the
         contrary, both you and the Company have the right to terminate your
         employment at any time, with or without cause, and with or without
         notice during the term of this Employment Agreement. The term "Cause"
         shall include, but is not limited to: breach of this Agreement; theft;
         drunkenness; drug use; fraud; harassment; conflict of interest; gross
         negligence; willful misconduct; insubordination; or any

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Ms. Glyn F. Aeppel
March 21, 2001
Page 5 of 9

other act
         constituting "gross misconduct" as defined from time to time in the
         Company's Associate Handbook.

2.       No-Fault Separation. If the Company separates your employment without
         Cause, including as a result of change of control (as defined below in
         Section 3 hereof), you will receive no-fault separation pay ("No-Fault
         Separation Pay"), as a full settlement of any and all of the Company's
         obligations to you. However, you will not receive No-Fault Separation
         pay if your employment ends with the Company due to cause or as a
         result of the progressive discipline policy contained within the
         Company's Associate Handbook. The provisions of your No-Fault
         Separation Pay are described as follows:

         (a)      Commencing the week following the date of termination, the
                  Company will pay to you a lump sum equal to your Base Salary
                  for a period of six (6) months.

         (b)      The Company will reimburse you the cost of your COBRA coverage
                  for a period of six (6) months.

         (c)      The Company will pay to you your car allowance for a period of
                  six (6) months.

         (d)      In no event will you be reimbursed for any of your vested or
                  unvested sick days or vacation.

         (e)      You will receive a pro-rata payment (based upon the date of
                  separation of employment) of any portion of your Performance
                  Bonus relating to previously completed transactions and
                  allocable to the then-current calendar year.

You agree to accept your No-Fault Separation Pay as your complete and exclusive
relief for a breach or termination of this Employment Agreement by the Company.

3.       Change of Control. In the event that a change of control of the Company
         results in the termination of your employment, without cause, and such
         termination occurs within one year after such change of control, you
         shall receive from the Company a lump sum payment equal to your Base
         Salary for the six month period immediately preceding such termination
         of employment.

         "Change of Control" shall mean the occurrence of any one of the
         following events:

<PAGE>   6
Ms. Glyn F. Aeppel
March 21, 2001
Page 6 of 9

                  (i) any Person, as such term is used in Sections 13(d) and
         14(d) of the Securities Exchange Act of 1934, as amended (the "Act")
         (other than the Company, any of its subsidiaries, or any trustee,
         fiduciary or other person or entity holding securities under any
         employee benefit plan or trust of the Company or any of its
         subsidiaries), together with all "affiliates" and "associates" (as such
         terms are defined in Rule 12b-2 under the Act) of such person, shall
         become the "beneficial owner" (as such term is defined in Rule 13d-3
         under the Act), directly or indirectly, of securities of the Company
         representing fifty percent (50%) or more of the combined voting power
         of the Company's then outstanding securities having the right to vote
         in an election of the Company's Board of Directors ("Voting
         Securities") (in such case other than as a result of an acquisition of
         securities directly from the Company); or

                  (ii) the stockholders of the Company shall approve (A) any
         consolidation or merger of the Company where the stockholders of the
         Company, immediately prior to the consolidation or merger, would not,
         immediately after the consolidation or merger, beneficially own (as
         such term is defined in Rule 13d-3 under the Act), directly or
         indirectly, shares representing in the aggregate more than 50 percent
         of the voting shares of the corporation issuing cash or securities in
         the consolidation or merger (or of its ultimate parent corporation, if
         any), (B) any sale, lease, exchange or other transfer (in one
         transaction or a series of transactions contemplated or arranged by any
         party as a single plan) of all or substantially all of the assets of
         the Company or (C) any plan or proposal for the liquidation or
         dissolution of the Company.

         Notwithstanding the foregoing, a "Change of Control" shall not be
deemed to have occurred for purposes of the foregoing clause (i) solely as the
result of an acquisition of securities by the Company which, by reducing the
number of shares of Voting Securities outstanding, increases the proportionate
number of shares of Voting Securities beneficially owned by any person to 50
percent or more of the combined voting power of all then outstanding Voting
Securities; provided, however, that if any person referred to in this sentence
shall thereafter become the beneficial owner of any additional shares of Voting
Securities (other than pursuant to a stock split, stock dividend, or similar
transaction or as a result of an acquisition of securities directly from the
Company), then a "Change of Control" shall be deemed to have occurred for
purposes of the foregoing clause (i).

                                   ARBITRATION

If a dispute arises between you and the Company regarding your employment, you
and the Company agree that the dispute shall be submitted to arbitration by the
American Arbitration Association according to the following procedures:

1.       Selection of an Arbitrator. The Company shall request from the American
         Arbitration Association a list of the names of five (5) impartial
         arbitrators. The

<PAGE>   7
Ms. Glyn F. Aeppel
March 21, 2001
Page 7 of 9

         arbitrator shall be chosen by the Company and you, in turn, striking a
         name from the list until one name remains. The expenses of the
         arbitrator shall be borne equally by the Company and you, and each
         party shall bear its own preparation and presentation expenses.

2.       Arbitrator Limited to Terms of the Agreement. The arbitrator shall not
         have the power to add to, ignore, or modify any of the terms or
         conditions of this Employment Agreement.

         The arbitrator's decisions shall not go beyond what is necessary for
         the interpretation and application of this Agreement in the case of the
         specific termination at issue. The arbitrator shall not substitute
         his/her judgment for that of the parties in the exercise of rights
         granted or retained by this Agreement. An award by the arbitrator shall
         not exceed the specific provisions for No-Fault Separation Pay. The
         arbitrator's award and decision shall be based upon the issue as
         drafted and submitted by the Company and the relevant and competent
         evidence adduced at the hearing. The arbitrator's written decision
         shall be rendered within sixty (60) days of the hearing.

3.       Final and Binding. The decision reached by the arbitrator concerning
         the termination shall be final and binding upon the parties as to the
         matter in dispute. The parties agree that the decision shall be
         enforceable in a court of law, and that this arbitration procedure
         shall be the exclusive procedure for challenging the exercise of the
         termination section of this Agreement.

4.       Locale.  The arbitration shall take place in Pittsburgh, Pennsylvania.

                               NO VESTED INTEREST

You shall acquire no vested interest in any rights or benefits granted in this
Employment Agreement which are not subject to being changed, revised, or
divested in accordance with this Employment Agreement, the rules of the Board of
Directors of the Company or the decision of the shareholders of the Company. All
rights or benefits which you acquire under the terms of this Employment
Agreement shall extend only for the duration of this Employment Agreement.

                            CITIZENSHIP VERIFICATION

You will provide to the Company verification of your eligibility to work in the
United States in accordance with the Immigration Reform and Control Act of 1986.

                                ENTIRE AGREEMENT

This Employment Agreement represents the entire agreement between you and the
Company and shall supersede any and all previous verbal or written contracts,

<PAGE>   8
Ms. Glyn F. Aeppel
March 21, 2001
Page 8 of 9

arrangements or understandings between the parties. Your acceptance of this
Agreement will confirm your acknowledgement that no representations or
commitments regarding the terms of your employment by the Company have been made
by or on behalf of the Company except as expressly provided in this Employment
Agreement. The terms of your employment may only be modified by me or another
executive officer of the Company in writing.

Please acknowledge your acceptance of the foregoing by executing the enclosed
copy of this Agreement at the place indicated below and returning it in the
enclosed envelope no later than five (5) days upon receipt of this Agreement.

                                    Sincerely,

                                    INTERSTATE HOTELS CORPORATION

                                    /s/  J. William Richardson
                                    ------------------------------------
                                    J. William Richardson
                                    Vice Chairman and Chief Financial Officer
JWR/khp
Attachment
c:       Tom Hewitt
         Tim Hudak
         Sandy Streily
         Erin Meyers

ACCEPTED AND AGREED TO:

By:      /s/  Glyn F. Aeppel              Dated:        March 29, 2001
   -----------------------------------
              Glyn F. Aeppel

<PAGE>   9

Ms. Glyn F. Aeppel
March 21, 2001
Page 9 of 9

                                    EXHIBIT A

         EXECUTIVE VICE PRESIDENT, BUSINESS DEVELOPMENT AND ACQUISITIONS
                                 BONUS CRITERIA

Bonus will be paid on all deals closed by the Company after commencement of
employment except for the Host transaction and any transactions that are in very
advanced stages of closing.

The following will be the formula for bonus payments:

1.       New Management Contracts - No Investment by IHC - A bonus payment of 5%
         of fees collected. The bonus will be paid for 3 years or the term of
         the contract, whichever is shorter.

2.       Management Contracts with Investments - Paid as in #1 above but the
         bonus percentage is 3%.

3.       Minority Investments for IHC - A bonus of 10% of IHC cash flows will be
         paid after IHC receives a 12% return on its investment. This will be
         paid for 5 years or the term of the equity investment, whichever is
         shorter.

4.       A phantom tracking interest tied to capital events will exist relative
         to IHC's interest in the joint venture with the investor group. All
         costs of capital that IHC incurs will be a deduct in arriving at the
         payout. The interest will be 1.5% of IHC's returns until IHC achieves a
         30% IRR, 2% thereafter.

5.       In addition to the above, you will be eligible for an annual bonus
         payment (the plan to be determined) from 0-25% of base salary. This
         payment will be at the sole discretion of the Company.

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