Creation of the Operating Partners Program

The Generation Companies ("Generation") is a privately held, North Carolina company engaged in direct management and development of real estate intensive businesses valued in excess of $100,000,000 employing over 200 associates in the North Carolina, Virginia and Kentucky. We have created an Owner-type opportunity within the property management leadership to distinguish select General Managers ("GM") who display an uncommon commitment to quality, radical guest service, and an aptitude for exceptional profit performance. Leaders who fulfill the criteria outlined below will be invited to participate in the Generation Hotel Operating Partner Program (the "Plan") as Operating Partners ("OP").

Why Are We Introducing This Program?

When it comes to operating any service business, leadership is an essential ingredient for success. The motivation and training of hotel staff, satisfaction of guests, and profit performance often rise and fall based on the management skills, motivation and marketing savvy of the senior property leader, which traditionally has been a General Manager.

The Generation Companies seeks to attract the highest caliber hotel operating team in the industry. We are also committed to personal and professional growth, excellence and creativity. Therefore, we have developed a unique, trend-setting program to create an ownership-oriented Operating Partner position that represents an increase in status, authority, responsibility, and opportunity from the position of General Manager. Only General Managers who have proved their commitment and abilities related to the goals of the Operating Partner Program will be accepted.

The creation of the Operating Partner Program, we believe, is in accordance with our desire to serve you by providing you with greater opportunity than can be found anywhere in our industry. We also believe we would like for the leaders of our company to provide this type of opportunity to us if we were General Managers. The following excerpt is from our Employee Handbook for your reference:

Our Corporate Service Center Purpose and Mission Statement

"Generation was founded on some simple, yet timeless, principles and values. These principles and values create a context for defining who we are as an organization and how we conduct our business. One of these principles is: We believe, as human beings, we have been made by our Creator to serve one another to the fullest of our ability. Another foundational principal is the Golden Rule: Do unto others as you would have them do unto you. Acting according to these principles creates an atmosphere of mutual respect and dignity that we believe is critical to maintain if we are to achieve our mission, which is:

To passionately glorify God and radically serve people using all of our gifts
and talents to create temporal and eternal value, inspiring others to do the same.

While this mission may seem to some to be lofty idealism, we believe that only by "aiming high" can we begin to approach the excellence we desire. Although no one at Generation has "arrived" at fulfilling this mission, we have had many successes that have contained all the elements of our mission. We invite you to pursue this ideal with us as we learn from each other and from our collective successes and failures along the way."

We look forward to the increased value you may have the opportunity to add as an Operating Partner.

Values
Essential to becoming a successful Generation Operating Partner is a working understanding of our Guiding Principles. Although we encourage a diversity of experiences and backgrounds in our selection of leaders, a successful Operating Partner candidate will aim toward implementing our Guiding Principles in their personal and professional lives.

OUR GUIDING PRINCIPLES…the building blocks of personal and organizational character.

1. Honor Each Other and Clients In Every Situation.
   …Respect
2. Encourage Each Other To Produce Meaningful and Lasting Results.
   …Growth
3. Seek Out Instruction and Learn From Mistakes.
   …Learning
4. Seek To Prosper In All Areas of Life.
   …Balance
5. Be Responsible For Yourself and Your Teammates.
   …Accountability
6. Be Extremely Dedicated To Delivering Exceptional Customer Experiences.
   …Service
7. Value Listening and Strive For Honesty, Clarity and Effectiveness In Communicating.
   …Communication
8. Promise Only That Which Can Be Delivered and Then Deliver More Than Promised.
   …Excellence
9. Determine To Maximize The Gifts, Talents and Resources Entrusted To Us All.
   …Stewardship
10. Approach Work With A Bias For Speed, Action and Enthusiasm.
    …Urgency
11. Promote Thinking "Outside The Box" and Embrace Innovation.
    …Creativity
12. Internalize A Commitment to Be Part Of An Eternal Plan.
    …Faith
13. Demonstrate True Character By Doing What Is Right Regardless Of The Consequences.
    …Integrity (moral courage to consistently apply all of the other values)