DRAFT

SHG-Saunders Hotel Group Incentive Plan basic components of the Saunders Hotel Group Management (franchise hotels) quarterly Incentive plan (effective 1/1/05): Eligibility The first of the month following 30 days of employment. Gatekeeper The gatekeeper will be each hotels GOP dollar amount. Failure to meet the minimum threshold of 80% of GOP goal will eliminate bonus eligibility. Bonus Target The bonus target for Managers will be 5% of base salary. Total maximum payment is 15% of base salary.

Financial Performance GOP $'s

50% Weight

Achievement percentage is based upon actual GOP dollar amounts compared to GOP budget. Management Performance These elements of the plan are critical in focusing our management teams on quality and operational initiatives which serve These individual factors will calculate, but will only be included in bonus calculation if gatekeeper is satisfied. These management goals are: Flow Through 15% Weight

Flow Through is the percent of revenue variance (difference between actual and budgeted revenue dollars) versus GOP variance (difference between actual and budgeted GOP dollars) (manually input actual and budgeted revenue and GOP dollar amounts).

REVPAR Index Measurement

10% Weight

The quarterly percentage change from the Star Report from the last month of the quarter versus the same period in previous year Guest Satisfaction "Intent to Return GSI" 3 month rolling average 15% Weight

Quality Assurance

10%

Quality Assurance is your actual score for the most recent "brand" inspection.

WHIP - General Manager

Data Entry Instructions: - Only enter data in highlighted fields. - Name and Hotel need only be entered on Quarter 1. - Salary must be entered on each quarter - should the salary change within the quarter, the new salary should be entered and used for that quarter. - Bonus percent and pay out will automatically calculate. - To receive the score associated with the performance rating, the minimum threshhold must be met. Flow Through Actual performance Points 56% 8 54% 7 A score of 55% would be 7 points. For example: - Summary Sheet does not require any data entry. GOP $'s 1 Input Actual and Budget dollar amounts for each month. 2 Actual Performance (% of goal) calculates for you. 3 Input Corresponding Points (Score) or the words Not Bonus Eligible. 4 Value caluclates for you (or indicates the gatekeeper has not been met - Not Bonus Eligible). Flow Through 1 Input Actual and Budget dollar amounts for each month's Revenue. 2 Totals and Differences calculate for you. 3 Actual Performance (% of goal) calculates for you. 4 Input Corresponding Points (Score). 5 Value caluclates for you. RevPAR Measurement 1 Input the percentage point change for the quarter from the Star Report for the last month of the quarter. 2 Actual Performance calculates for you. 3 Input Corresponding Points (Score). 4 Value calculates for you. Guest Satisfaction 1 Enter the actual GSA score based on overall intent to return 2 Actual Performance (three month average) calculates for you. 3 Input Corresponding Points (Score). 4 Value calculates for you. Quality Assurance 1 Enter the actual score from the most recent inspection. 2 Actual Performance calculates for you. 3 Input Corresponding Points (Score). 4 Value calculates for you.

SAUNDERS HOTEL GROUP

PERFORMANCE INDEXING Management Level Franchised Hotels

Manager: Hotel: Quarter: Annual Salary:

Jennifer Dekkers CIS 1 $47,407.00

WITS
W I T S WOW the customer Continuously Improve
Be a passionate and committed Team Sustain and share bottom-line Success Actual Performance: Max:

WITS
G H T

WITS

WITS

WITS

SA GU TI ES SF T AC TI O N

R E EA VP SU AR R EM EN

O U

G (G O P at $'s ek ee pe r)

FL O W

109% 120% or above 116-119% 112-115% 108-111% 104-107%

132% 60% or above 58% 56% 54% 52% 50% 48% 46% 44% 42% 40% or below

118% 120% 118% 116% 114% 112% 110% 108% 106% 104% 102%

83 94 92 90 88 86 85 84 83 82 81 80% or below

95 100 98 96 94 92 89

Q U A SS LI UR TY A N CE
Possible Points

TH R

Bonus Percentage

10 9 8 7 6 5 4 3 2 1

15 12 10 8 6 5 4 3 2 1 0 0
Total Bonus % 8

Target:

100-103% 96-99% 92-95% 88-91% 84-87% 80-83% 79% or below

88 or below

0
Not Bonus Eligible

Score: Weight: Value:

7 50% 3.50

10 15% 1.50

9 10% 0.90

3 15% 0.45

7 10% 0.70

Total Value 7.05

GOP $'s Budget: Actual: Revenue $'s Budget: Actual:

Jan 112864.00 101008.00 Jan 421488.00 402758.00 March Star Report 118

Feb 109628.00 124102.00 Feb 415857.00 433054.00

Mar 167037.00 201092.00 Mar 494165.00 523482.00

Total

389529.00 426202.00
Total

Difference 36673.00

1331510.00 1359294.00

Difference 27784.00

RevPAR Measurement:

Guest Satisfaction Overall Stay

Jan 85

Feb 84

Mar 79

Quality Assurance Actual: GOP $'s FLOW THROUGH REVPAR MEASUREMENT GUEST SATISFACTION QUALITY ASSURANCE

Score 95
Percent of GOP goal Rvenue variance to budget versus GOP variance to budget. Ratio between the RevPar Index and Goal from the monthly Star Report. "Intent to Return GSI" 3 month rolling average

Actual score from most recent "brand" inspection.

Quarterly Incentive (%) Salary for Quarter Incentive Amount

8
$11,851.75
$948.14

APPROVAL

Attach all supporting documentation.

SAUNDERS HOTEL GROUP

PERFORMANCE INDEXING Management Level Franchised Hotels

Manager: Hotel: Quarter: Annual Salary:

Jennifer Dekkers CIS 2 $47,407.00

WITS
W I T S WOW the customer Continuously Improve
Be a passionate and committed Team Sustain and share bottom-line Success Actual Performance: Max:

WITS
G H T

WITS

WITS

WITS

SA GU TI ES SF T AC TI O N

R E EA VP SU AR R EM EN

O U

G (G O P at $'s ek ee pe r)

FL O W

102% 120% or above 116-119% 112-115% 108-111% 104-107%

66% 60% or above 58% 56% 54% 52% 50% 48% 46% 44% 42% 40% or below

106% 120% 118% 116% 114% 112% 110% 108% 106% 104% 102% 100%

84 94 92 90 88 86 85 84 83 82 81 80% or below

96 100 98 96 94 92 89

Q U A SS LI UR TY A N CE
Possible Points

TH R

Bonus Percentage

10 9 8 7 6 5 4 3 2 1

15 12 10 8 6 5 4 3 2 1 0 0
Total Bonus % 6.0

Target:

100-103% 96-99% 92-95% 88-91% 84-87% 80-83% 79% or below

88 or below

0
Not Bonus Eligible

Score: Weight: Value:

5 50% 2.50

10 15% 1.50

3 10% 0.30

4 15% 0.60

8 10% 0.80

Total Value 5.70

GOP $'s Budget: Actual: Revenue $'s Budget: Actual:

APR 248621.00 234455.00 Apr 591608.00 568903.00 June Star Report 106

May 274498.00 275773.00 May 640077.00 621356.00

Jun 295506.00 321418.00 Jun 645833.00 667464.00

Total

818625.00 831646.00
Total

Difference 13021.00

101.6%

1877518.00 1857723.00

Difference 19795.00

98.9%

RevPAR Measurement:

65.8%

Guest Satisfaction Overall Stay

Apr 86

May 80

Jun 85

Quality Assurance Actual: GOP $'s FLOW THROUGH REVPAR MEASUREMENT GUEST SATISFACTION QUALITY ASSURANCE

Score 96
Percent of GOP goal Rvenue variance to budget versus GOP variance to budget. Ratio between the RevPar Index and Goal from the monthly Star Report. "Intent to Return GSI" 3 month rolling average

Actual score from most recent "brand" inspection.

Quarterly Incentive (%) Salary for Quarter Incentive Amount

6.0
$11,851.75
$711.11

APPROVAL

Attach all supporting documentation.

SAUNDERS HOTEL GROUP

PERFORMANCE INDEXING Management Level Franchised Hotels

Manager: Hotel: Quarter: Annual Salary:

Jennifer Dekkers CIS 3 $47,407.00

WITS
W I T S WOW the customer Continuously Improve
Be a passionate and committed Team Sustain and share bottom-line Success Actual Performance: Max:

WITS
G H T

WITS

WITS

WITS

SA GU TI ES SF T AC TI O N

R E EA VP SU AR R EM EN

O U

G (G O P at $'s ek ee pe r)

FL O W

120% 120% or above 116-119% 112-115% 108-111% 104-107%

79% 60% or above 58% 56% 54% 52% 50% 48% 46% 44% 42% 40% or below

12% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%

82 94 92 90 88 86 85 84 83 82 81 80% or below

95 100 98 96 94 92 89

Q U A SS LI UR TY A N CE
Possible Points

TH R

Bonus Percentage

10 9 8 7 6 5 4 3 2 1

15 12 10 8 6 5 4 3 2 1 0 0
Total Bonus % 10

Target:

100-103% 96-99% 92-95% 88-91% 84-87% 80-83% 79% or below

88 or below

0
Not Bonus Eligible

Score: Weight: Value:

10 50% 5.00

10 15% 1.50

10 10% 1.00

2 15% 0.30

7 10% 0.70

Total Value 8.50

GOP $'s Budget: Actual: Revenue $'s Budget: Actual:

Jul 271006.00 313423.00 Jul 610641.00 659434.00 September Star Report 12 Jul 80

Aug 249782.00 303512.00 Aug 588089.00 647368.00

Sep 239464.00 291928.00 Sep 563664.00 644751.00

Total

760252.00 908863.00
Total

Difference 148611.00

1762394.00 1951553.00

Difference 189159.00

RevPAR Measurement: % Change for Quarter: Guest Satisfaction Overall Stay

Aug 83

Sep 82

Quality Assurance Actual: GOP $'s FLOW THROUGH REVPAR MEASUREMENT GUEST SATISFACTION QUALITY ASSURANCE

Score 95
Percent of GOP goal Rvenue variance to budget versus GOP variance to budget. Ratio between the RevPar Index and Goal from the monthly Star Report. "Intent to Return GSI" 3 month rolling average

Actual score from most recent "brand" inspection.

Quarterly Incentive (%) Salary for Quarter Incentive Amount

10
$11,851.75
$1,185.18

APPROVAL

Attach all supporting documentation.

SAUNDERS HOTEL GROUP

PERFORMANCE INDEXING Management Level Franchised Hotels

Manager: Hotel: Quarter: Annual Salary:

Jennifer Dekkers CIS 4 $47,407.00

WITS
W I T S WOW the customer Continuously Improve
Be a passionate and committed Team Sustain and share bottom-line Success Actual Performance: Max:

WITS
G H T

WITS

WITS

WITS

SA GU TI ES SF T AC TI O N

R E EA VP SU AR R EM EN

O U

G (G O P at $'s ek ee pe r)

FL O W

118% 120% or above 116-119% 112-115% 108-111% 104-107%

69% 60% or above 58% 56% 54% 52% 50% 48% 46% 44% 42% 40% or below

109% 120% 118% 116% 114% 112% 110% 108% 106% 104% 102%

82 94 92 90 88 86 85 84 83 82 81 80% or below

95 100 98 96 94 92 89

Q U A SS LI UR TY A N CE
Possible Points

TH R

Bonus Percentage

10 9 8 7 6 5 4 3 2 1

15 12 10 8 6 5 4 3 2 1 0 0
Total Bonus % 8

Target:

100-103% 96-99% 92-95% 88-91% 84-87% 80-83% 79% or below

88 or below

0
Not Bonus Eligible

Score: Weight: Value:

9 50% 4.50

10 15% 1.50

4 10% 0.40

2 15% 0.30

7 10% 0.70

Total Value 7.40

GOP $'s Budget: Actual: Revenue $'s Budget: Actual:

Oct 281752.00 335421.00 Oct 615875.00 691472.00 December Star Report 109 Oct 83

Nov 145652.00 174069.00 Nov 443901.00 481676.00

Dec 111579.00 127274.00 Dec 402601.00 430531.00

Total

538983.00 636764.00
Total

Difference 97781.00

1462377.00 1603679.00

Difference 141302.00

RevPAR Measurement: % Change for Quarter: Guest Satisfaction Overall Stay

Nov 78

Dec 85

Quality Assurance Actual: GOP $'s FLOW THROUGH REVPAR MEASUREMENT GUEST SATISFACTION QUALITY ASSURANCE

Score 95
Percent of GOP goal Rvenue variance to budget versus GOP variance to budget. Ratio between the RevPar Index and Goal from the monthly Star Report. "Intent to Return GSI" 3 month rolling average

Actual score from most recent "brand" inspection.

Quarterly Incentive (%) Salary for Quarter Incentive Amount

8
$11,851.75
$948.14

APPROVAL

Attach all supporting documentation.

SAUNDERS HOTEL GROUP

PERFORMANCE INDEXING MANAGEMENT LEVEL Franchised Hotels

Manager: Hotel: Year Annual Salary:

Jennifer Dekkers CIS 2006 $45,150.00

WITS
W I T S WOW the customer Continuously Improve
Be a passionate and committed Team Sustain and share bottom-line Success Q1 Actual Performance: Q2 Actual Performance:

WITS
G H T

WITS

WITS

WITS

SA GU TI ES SF T AC TI O N

R E EA VP SU AR R EM EN

O U

G (G O P at $'s ek ee pe r)

Q U A SS LI UR TY A N CE

TH R

FL O W

Total Incentive % 8 8

Total Payout $903.00 $948.14

108% 111%

61% 69%

26% 10%

84 82%

96 95%

Q3 Actual Performance:

120%

79%

12%

82%

95%

10

$1,185.18

Q4 Actual Performance:

118%

69%

9%

82%

95%

$948.14

Overall Performance:

113%

70%

14%

83

96

9%

$3,984.46

GOP $'s Budget: Actual:

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

310757.00 333926.00

622448.00 651370.00

674187.00 728671.00

519793.00 468800.00

GOP $'s FLOW THROUGH REVPAR MEASUREMENT GUEST SATISFACTION QUALITY ASSURANCE

Percent of GOP goal Rvenue variance to budget versus GOP variance to budget. Ratio between the RevPar Index and Goal from the monthly Star Report. "Intent to Return GSI" 3 month rolling average

Actual score from most recent inspection.

Attach all supporting documentation.