James H.M. Sprayregen, P.C. Paul M. Basta Stephen E. Hessler Brian S.

Lennon KIRKLAND & ELLIS LLP 601 Lexington Avenue New York, New York 10022-4611 Telephone: (212) 446-4800 Facsimile: (212) 446-4900 and Anup Sathy, P.C. KIRKLAND & ELLIS LLP 300 North LaSalle Chicago, Illinois 60654-3406 Telephone: (312) 862-2000 Facsimile: (312) 862-2200 Counsel to the Debtors and Debtors in Possession UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK In re: INNKEEPERS USA TRUST, et al.,1 Debtors. ) ) ) ) ) ) ) Chapter 11 Case No. 10-13800 (SCC) Jointly Administered

NOTICE OF FILING OF STIPULATION AND AGREED ORDER MODIFYING THE AUTOMATIC STAY FOR THE PLAINTIFFS IN THE PREPETITION MOBLEY LITIGATION 1 PLEASE TAKE NOTICE that the above-captioned debtors and debtors in possession (collectively, the Debtors) hereby file the Stipulation and Agreed Order Modifying the
1

The list of Debtors in these Chapter 11 Cases along with the last four digits of each Debtors federal tax identification number can be found by visiting the Debtors restructuring website at www.omnimgt.com/innkeepers or by contacting Omni Management Group, LLC at Innkeepers USA Trust c/o Omni Management Group, LLC, 16161 Ventura Boulevard, Suite C, PMB 606, Encino, California 91436. The location of the Debtors corporate headquarters and the service address for their affiliates is: c/o Innkeepers USA, 340 Royal Poinciana Way, Suite 306, Palm Beach, Florida 33480.

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Automatic Stay for the Plaintiffs in the Prepetition Mobley Litigation (the Stipulation), which the Debtors are submitting to the Court for entry. PLEASE TAKE FURTHER NOTICE that objections, if any, to the Stipulation may be raised at or prior to the hearing presently scheduled for August 2, 2011 at 2:00 p.m. prevailing Eastern Time in Courtroom 610, United States Bankruptcy Court, One Bowling Green, New York, New York 10004-1408. PLEASE TAKE FURTHER NOTICE that copies of the documents referenced herein may be obtained free of charge by visiting the Debtors restructuring website at www.omnimgt.com/innkeepers or by contacting Omni Management Group, LLC at Innkeepers USA Trust c/o Omni Management Group, LLC, 16161 Ventura Boulevard, Suite C, PMB 606, Encino, California 91436. You may also obtain copies of any pleadings by visiting the Courts website at http://www.nysb.uscourts.gov in accordance with the procedures and fees set forth therein.

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New York, New York Dated: July 22, 2011

/s/ Brian S. Lennon James H.M. Sprayregen, P.C. Paul M. Basta Stephen E. Hessler Brian S. Lennon KIRKLAND & ELLIS LLP 601 Lexington Avenue New York, New York 10022-4611 Telephone: (212) 446-4800 Facsimile: (212) 446-4900 and Anup Sathy, P.C. KIRKLAND & ELLIS LLP 300 North LaSalle Chicago, Illinois 60654-3406 Telephone: (312) 862-2000 Facsimile: (312) 862-2200 Counsel to the Debtors and Debtors in Possession

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UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK In re: INNKEEPERS USA TRUST, et al.,1 Debtors. ) ) ) ) ) ) ) Chapter 11 Case No. 10-13800 (SCC) Jointly Administered

STIPULATION AND AGREED ORDER MODIFYING THE AUTOMATIC STAY FOR THE PLAINTIFFS IN THE PREPETITION MOBLEY LITIGATION 1 Innkeepers USA Trust and certain of its affiliates as debtors and debtors in possession (collectively, the Debtors) and David Mobley and Brenda Allerheiligen, individually and as parents and natural guardians of their child, Michael Mobley (together with Michael Mobley, the Plaintiffs, and together with the Debtors, the Parties), through their undersigned counsel, hereby enter into this stipulation and agreed order (the Stipulation and Order). WHEREAS, on June 13, 2006, the Plaintiffs commenced a lawsuit in the Circuit Court In and For Okaloosa Country, Florida alleging injury to then-minor Plaintiff Michael Mobley, and seeking money damages against multiple defendants, including Debtors Innkeepers USA Limited Partnership and KPA Leaseco, Inc. (together, the Debtor Defendants) and KPA Ft. Walton LLC (the Non-Debtor Affiliate), in connection with alleged injuries to Plaintiff Michael Mobley arising out of an alleged accident occurring on June 7, 2005 (the Prepetition Mobley Litigation);

The list of Debtors in these Chapter 11 Cases along with the last four digits of each Debtors federal tax identification number can be found by visiting the Debtors restructuring website at www.omnimgt.com/innkeepers or by contacting Omni Management Group, LLC at Innkeepers USA Trust c/o Omni Management Group, LLC, 16161 Ventura Boulevard, Suite C, PMB 606, Encino, California 91436. The location of the Debtors corporate headquarters and the service address for their affiliates is: c/o Innkeepers USA, 340 Royal Poinciana Way, Suite 306, Palm Beach, Florida 33480.

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WHEREAS, on July 19, 2010 (the Petition Date), the Debtors commenced these voluntary cases under title 11 of the United States Code (the Bankruptcy Code) and are continuing to operate their business and manage their properties as debtors in possession pursuant to sections 1107 and 1108 of the Bankruptcy Code; WHEREAS, upon the filing of the Debtors chapter 11 petitions, the automatic stay of section 362 of the Bankruptcy Code came into effect and stayed certain actions against the Debtors; WHEREAS, the Plaintiffs believe that they may be entitled to recover on account of certain claims asserted in the Prepetition Mobley Litigation against third-party insurance policies to which the Debtor Defendants and/or the non-Debtor Affiliate are insured parties; and WHEREAS, the Debtors and the Plaintiffs wish to modify the automatic stay on the terms set forth herein. NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and between the Debtors and the Plaintiffs, which agreement, when so-ordered by the Court, shall constitute an order of the Court, as follows: 1. The automatic stay shall be modified solely for the limited purpose of permitting

the Plaintiffs to proceed against the Debtor Defendants and the non-Debtor Affiliate in the Prepetition Mobley Litigation as nominal defendants only, at no cost to the Debtor Defendants, the non-Debtor Affiliate, or the Debtors, their estates, or their successors, so that the Plaintiffs may seek to establish liability and damages against the Debtor Defendants and/or the non-Debtor Affiliate for the sole purpose of recovering against proceeds of applicable insurance policies, if any (the Insurance Policies).

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2.

Any recoveries based upon any judgment, settlement, mediation, arbitration, or

otherwise on account of the Plaintiffs claims against the Debtors, the Debtor Defendants, or the non-Debtor Affiliate, including relating to the Prepetition Mobley Litigation, shall be solely from the proceeds of the Insurance Policies and not against the Debtors, their estates, their successors, the non-Debtor Affiliate, or other affiliates (as defined in section 101(2) of the Bankruptcy Code) of the Debtors. 3. The Debtors make no representation as to the existence or availability of any

insurance coverage or insurance policies, the amount of coverage, or the likelihood of recovery against any such insurance policies, if any. 4. Any and all proofs of claim filed by the Plaintiffs in these chapter 11 cases

relating to the Prepetition Mobley Litigation are disallowed and expunged for all purposes, and the Plaintiffs shall not be entitled to receive any distributions from any of the Debtors, their estates, or their successors in their chapter 11 cases under a plan of reorganization or otherwise on behalf of such claims. 5. The Plaintiffs shall not have an allowed claim (as defined in section 101(5) of the

Bankruptcy Code) pursuant to section 502 of the Bankruptcy Code based upon the Prepetition Mobley Litigation (or the claims asserted therein) against any of the Debtors and shall not be entitled to any distributions from the non-Debtor Affiliate or any of the Debtors, their estates, their successors, or other affiliates of the Debtors, whether under a chapter 11 plan or otherwise on behalf of such claim; provided, that to the extent the Insurance Policies are unable to satisfy a judgment or other disposition with respect to the Prepetition Mobley Litigation, the Plaintiffs agree that any such unsatisfied portion, which could otherwise be considered a general unsecured claim in the Debtors chapter 11 cases or a claim against the non-Debtor Affiliate or other

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affiliates of the Debtors, is hereby fully and finally waived and forever released, and the Plaintiffs shall not otherwise engage in any efforts to collect any amount from the Debtors, their estates, their successors, the non-Debtor Affiliate, or other affiliates of the Debtors, based upon the Prepetition Mobley Litigation (or the claims asserted therein). 6. The Plaintiffs shall file this Stipulation and Order in the court in which the

Prepetition Mobley Litigation is pending within ten (10) business days after the entry of this Stipulation and Order. 7. Under no circumstances shall the non-Debtor Affiliate or the Debtors, their

estates, their successors, or other affiliates of the Debtors be required to pay or otherwise satisfy: (a) any self-insured retention or deductible liability; (b) any obligation to post any security or deposit with an insurer pursuant to the terms of any insurance policy; (c) any defense costs; (d) any judgment above the applicable insurance coverage; or (e) any other costs of any kind, including, without limitation, any claims by insurance companies against the non-Debtor Affiliate or the Debtors, their estates, their successors, or other affiliates of the Debtors related to the Prepetition Mobley Litigation, or the claims subject thereof (collectively,

the Administrative Costs). 8. To the extent required by an insurer, the Plaintiffs shall fund any Administrative

Costs. If, however, the Plaintiffs are unwilling or unable to fund any such Administrative Costs, the Plaintiffs shall immediately abandon pursuit of any Insurance Policy and all of the Plaintiffs claims against the Debtors, the non-Debtor Affiliate, and other affiliates of the Debtors will be forever released and waived. 9. The Plaintiffs will indemnify and hold the Debtors, their estates, their successors,

the non-Debtor Affiliate, and other affiliates of the Debtors harmless against any requirement by

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or claim of any insurer for the payment by the non-Debtor Affiliate and the Debtors, their estates, or their successors of any Administrative Costs. 10. This Stipulation and Order shall not become effective unless and until it is

approved and entered by the Court. 11. By entering into this Stipulation and Order, the non-Debtor Affiliate and the

Debtors are not waiving any defenses at law or in equity, including as to the Prepetition Mobley Litigation. 12. Neither the Stipulation and Order nor any negotiations and writings in connection

with this Stipulation and Order shall in any way be construed as or deemed to be evidence of or an admission on behalf of any Party regarding any claim or right that such Party may have against the other Party. 13. The Stipulation and Order shall be binding on and inure to the benefit of the

Parties hereto and their respective successors and assigns. 14. This Stipulation and Order shall not be modified, altered, amended, or vacated

without written consent of all Parties hereto. Any such modification, alteration, amendment or vacation, in whole or in part, shall be subject to the approval of the Court. 15. This Stipulation and Order contains the entire agreement by and between the

Debtors and the Plaintiffs with respect to the subject matter hereof, and all prior understandings or agreements, if any, are merged into the Stipulation and Order. 16. Each of the undersigned counsel represents that he or she is authorized to execute

the Stipulation and Order on behalf of his or her respective client.

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17.

This Stipulation and Order may be executed in multiple counterparts, any of

which may be transmitted by facsimile or electronic mail, and each of which shall be deemed an original, but all of which together shall constitute one instrument. 18. The Debtors are authorized to take all actions necessary to effectuate the relief

provided by this Stipulation and Order. 19. The terms and conditions of the Stipulation and Order shall be immediately

effective and enforceable upon its entry. 20. The Court retains jurisdiction to hear and determine all matters arising from or

related to the implementation, interpretation, and/or enforcement of the Stipulation and Order.

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Dated: July 19, 2011 New York, New York

/s/ Matthew D. Schultz Matthew D. Schultz Levin, Papantonio, Thomas, Mitchell, Echsner & Proctor, P.A. 316 S. Baylen St., Suite 600 Pensacola, FL 32502 Telephone: (850) 435-7140 Facsimile: (850) 436-6140 Attorney for Michael Mobley, David Mobley, and Brenda Allerheiligen

/s/ Brian S. Lennon James H.M. Sprayregen, P.C. Paul M. Basta Stephen E. Hessler Brian S. Lennon KIRKLAND & ELLIS LLP 601 Lexington Avenue New York, New York 10022-4611 Telephone: (212) 446-4800 Facsimile: (212) 446-4900 and Anup Sathy, P.C. KIRKLAND & ELLIS LLP 300 North LaSalle Street Chicago, Illinois 60654-3406 Telephone: (312) 862-2000 Facsimile: (312) 862-2200 Counsel to the Debtors and Debtors in Possession

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SO ORDERED this ___ day of __________, 2011 ___________________________________ The Honorable Shelley C. Chapman United States Bankruptcy Judge

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