##### 



Exhibit 10.35.1
 
 LOAN AGREEMENT
   FELCOR/JPM HOTELS, L.L.C. and DJONT/JPM LEASING, L.L.C ,
  BANK OF AMERICA, N.A.,




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I. DEFINITIONS; PRINCIPLES OF CONSTRUCTION
    
    
    9Section 1.1 Definitions
    
    
    9Section 1.2 Principles of Construction
    
    
    34II. GENERAL TERMS
    
    
    35Section 2.1 Loan Commitment; Disbursement to Borrower
    
    
    352.1.1 Agreement to Lend and Borrow
    
    
    352.1.2 Single Disbursement to Borrower
    
    
    352.1.3 The Note, Security Instruments and Loan Documents
    
    
    352.1.4 Use of Proceeds
    
    
    35Section 2.2 Interest; Loan Payments; Late Payment Charge
    
    
    352.2.1 Payments
    
    
    352.2.2 Interest Calculation
    
    
    362.2.3 Eurodollar Rate Unascertainable; Illegality; Increased Costs
    
    
    362.2.4 Payment on Maturity Date
    
    
    382.2.5 Payments after Default
    
    
    382.2.6 Late Payment Charge
    
    
    392.2.7 Usury Savings
    
    
    392.2.8 Foreign Taxes
    
    
    39Section 2.3 Prepayments
    
    
    402.3.1 Voluntary Prepayments
    
    
    402.3.2 Mandatory Prepayments
    
    
    412.3.3 Prepayments After Default
    
    
    422.3.4 Making of Payments
    
    
    422.3.5 Application of Prepayments
    
    
    42Section 2.4 Interest Rate Cap Agreement
    
    
    43Section 2.5 Release of Property
    
    
    442.5.1 Release of Individual Property
    
    
    442.5.2 Release on Payment in Full
    
    
    46Section 2.6 Substitution of Properties
    
    
    46Section 2.7 Releases of Certain Parcels
    
    
    53III. CASH MANAGEMENT
    
    
    53




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Section 3.1 Establishment of Accounts
    
    
    53Section 3.2 Deposits into Lockbox Account
    
    
    54Section 3.3 Account Name
    
    
    55Section 3.4 Eligible Accounts
    
    
    55Section 3.5 Permitted Investments
    
    
    55Section 3.6 Intentionally Omitted
    
    
    56Section 3.7 Transfer To and Disbursements from the Lockbox Account
    
    
    56Section 3.8 Withdrawals From the Tax Account and the Insurance Premium Account
    
    
    57Section 3.9 Withdrawals from the Replacement Reserve Account
    
    
    57Section 3.10 Withdrawals from the Required Repair Account
    
    
    57Section 3.11 Withdrawals from the Debt Service Account
    
    
    57Section 3.12 Intentionally Omitted
    
    
    57Section 3.13 Intentionally Omitted
    
    
    57Section 3.14 Withdrawals from the Ground Rent Account
    
    
    57Section 3.15 Disbursement Upon Lockbox Trigger Event Cure
    
    
    57Section 3.16 Lockbox Trigger Event Cure
    
    
    57Section 3.17 Sole Dominion and Control
    
    
    58Section 3.18 Security Interest
    
    
    58Section 3.19 Rights on Default
    
    
    58Section 3.20 Financing Statement; Further Assurances
    
    
    58Section 3.21 Borrowers Obligation Not Affected
    
    
    59Section 3.22 Payments Received Under this Agreement
    
    
    59IV. REPRESENTATIONS AND WARRANTIES
    
    
    59Section 4.1 Borrower Representations
    
    
    594.1.1 Organization
    
    
    594.1.2 Proceedings
    
    
    604.1.3 No Conflicts
    
    
    604.1.4 Litigation
    
    
    604.1.5 Agreements
    
    
    604.1.6 Solvency
    
    
    614.1.7 Full and Accurate Disclosure
    
    
    614.1.8 No Plan Assets
    
    
    61
 3




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4.1.9 Compliance
    
    
    624.1.10 Financial Information
    
    
    624.1.11 Condemnation
    
    
    624.1.12 Federal Reserve Regulations
    
    
    624.1.13 Utilities and Public Access
    
    
    634.1.14 Not a Foreign Person
    
    
    634.1.15 Separate Lots
    
    
    634.1.16 Assessments
    
    
    634.1.17 Enforceability
    
    
    634.1.18 No Prior Assignment
    
    
    634.1.19 Insurance
    
    
    634.1.20 Use of Property
    
    
    644.1.21 Certificate of Occupancy; Licenses
    
    
    644.1.22 Flood Zone
    
    
    644.1.23 Physical Condition
    
    
    644.1.24 Boundaries
    
    
    644.1.25 Leases
    
    
    654.1.26 Survey
    
    
    654.1.27 Intentionally Omitted
    
    
    654.1.28 Filing and Recording Taxes
    
    
    654.1.29 Franchise Agreement; PIPs
    
    
    654.1.30 Management Agreement/Operating Lease
    
    
    664.1.31 Illegal Activity
    
    
    664.1.32 No Change in Facts or Circumstances; Disclosure
    
    
    664.1.33 Investment Company Act
    
    
    664.1.34 Principal Place of Business; State of Organization
    
    
    674.1.35 Single Purpose Entity
    
    
    674.1.36 Business Purposes
    
    
    714.1.37 Taxes
    
    
    714.1.38 Intentionally Omitted
    
    
    724.1.39 Environmental Representations and Warranties
    
    
    724.1.40 Taxpayer Identification Number
    
    
    724.1.41 Embargoed Person and Patriot Act
    
    
    72
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4.1.42 Ground Lease Representations
    
    
    734.1.43 Deposit Accounts
    
    
    75Section 4.2 Survival of Representations
    
    
    75V. BORROWER COVENANTS
    
    
    75Section 5.1 Affirmative Covenants
    
    
    755.1.1 Existence; Compliance with Legal Requirements
    
    
    765.1.2 Taxes and Other Charges
    
    
    775.1.3 Litigation
    
    
    775.1.4 Access to Properties
    
    
    775.1.5 Notice of Default
    
    
    775.1.6 Cooperate in Legal Proceedings
    
    
    785.1.7 Award and Insurance Benefits
    
    
    785.1.8 Further Assurances
    
    
    785.1.9 Mortgage and Intangible Taxes
    
    
    785.1.10 Financial Reporting
    
    
    795.1.11 Business and Operations
    
    
    815.1.12 Costs of Enforcement
    
    
    825.1.13 Estoppel Statement
    
    
    825.1.14 Loan Proceeds
    
    
    835.1.15 Performance by Borrower
    
    
    835.1.16 Confirmation of Representations
    
    
    835.1.17 Leasing Matters
    
    
    835.1.18 Management Agreement
    
    
    855.1.19 Environmental Covenants
    
    
    875.1.20 Alterations
    
    
    885.1.21 Franchise Agreement
    
    
    895.1.22 Operating Lease
    
    
    905.1.23 OFAC
    
    
    915.1.24 The Ground Lease
    
    
    915.1.25 O&M Program
    
    
    935.1.26 Condominium Provisions
    
    
    94Section 5.2 Negative Covenants
    
    
    945.2.1 Liens
    
    
    95
 5




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5.2.2 Dissolution
    
    
    955.2.3 Change In Business
    
    
    955.2.4 Debt Cancellation
    
    
    955.2.5 Zoning
    
    
    955.2.6 No Joint Assessment
    
    
    955.2.7 Name, Identity, Structure, or Principal Place of Business
    
    
    965.2.8 ERISA
    
    
    965.2.9 Affiliate Transactions
    
    
    975.2.10 Transfers
    
    
    97VI. INSURANCE; CASUALTY; CONDEMNATION; REQUIRED REPAIRS
    
    
    99Section 6.1 Insurance
    
    
    99Section 6.2 Casualty
    
    
    104Section 6.3 Condemnation
    
    
    104Section 6.4 Restoration
    
    
    105VII. RESERVE FUNDS
    
    
    109Section 7.1 Required Repair Funds
    
    
    1097.1.1 Deposits
    
    
    1097.1.2 Release of Required Repair Funds
    
    
    110Section 7.2 Tax and Insurance Escrow Fund
    
    
    110Section 7.3 Replacements and Replacement Reserve
    
    
    1117.3.1 Replacement Reserve Fund
    
    
    1117.3.2 Disbursements from Replacement Reserve Account
    
    
    1117.3.3 Performance of Capital Expenditures
    
    
    1127.3.4 Failure to Make Capital Expenditures
    
    
    1147.3.5 Balance in the Replacement Reserve Account
    
    
    114Section 7.4 Ground Lease Escrow Fund
    
    
    115Section 7.5 Intentionally Omitted
    
    
    115Section 7.6 Reserve Funds, Generally
    
    
    115VIII. DEFAULTS
    
    
    116Section 8.1 Event of Default
    
    
    116Section 8.2 Remedies
    
    
    122Section 8.3 Remedies Cumulative; Waivers
    
    
    123IX. SPECIAL PROVISIONS
    
    
    123
 6




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Section 9.1 Sale of Notes and Securitization
    
    
    123Section 9.2 Securitization Indemnification
    
    
    125Section 9.3 Servicer
    
    
    127Section 9.4 Exculpation
    
    
    128Section 9.5 Contributions and Waivers
    
    
    130Section 9.6 Reallocation of Loan Amounts
    
    
    133X. MISCELLANEOUS
    
    
    134Section 10.1 Survival
    
    
    134Section 10.2 Lenders Discretion
    
    
    134Section 10.3 Governing Law
    
    
    134Section 10.4 Modification, Waiver in Writing
    
    
    135Section 10.5 Delay Not a Waiver
    
    
    135Section 10.6 Notices
    
    
    136Section 10.7 Trial by Jury
    
    
    137Section 10.8 Headings
    
    
    137Section 10.9 Severability
    
    
    137Section 10.10 Preferences
    
    
    137Section 10.11 Waiver of Notice
    
    
    137Section 10.12 Remedies of Borrower
    
    
    138Section 10.13 Expenses; Indemnity
    
    
    138Section 10.14 Schedules and Exhibits Incorporated
    
    
    139Section 10.15 Offsets, Counterclaims and Defenses
    
    
    139Section 10.16 No Joint Venture or Partnership; No Third Party Beneficiaries
    
    
    140Section 10.17 Publicity
    
    
    140Section 10.18 Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets
    
    
    140Section 10.19 Waiver of Counterclaim
    
    
    141Section 10.20 Conflict; Construction of Documents; Reliance
    
    
    141Section 10.21 Brokers and Financial Advisors
    
    
    142Section 10.22 Prior Agreements
    
    
    142Section 10.23 Counterparts
    
    
    142Section 10.24 Liability
    
    
    142
 7




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Schedule I:
    
    Allocated Loan AmountsSchedule II:
    
    FF&E ExpendituresSchedule III:
    
    Required RepairsSchedule IV:
    
    Organizational Chart of BorrowerSchedule V:
    
    List of ManagersSchedule VI:
    
    Monthly Pegged AmountsSchedule VII:
    
    Franchise Agreement/FranchisorSchedule VIII:
    
    Operating LeaseSchedule IX:
    
    Property ManagerSchedule X:
    
    Property Account/Concentration Account BankSchedule XI:
    
    Environmental ReportsSchedule XII:
    
    Ground LeasesSchedule XIII:
    
    ReservedSchedule XIV:
    
    O&M Program PropertiesSchedule XV:
    
    Form of Operating StatementSchedule XVI:
    
    Disclosure ScheduleSchedule XVII:
    
    Information Schedule of Capital ExpendituresExhibit A:
    
    Property Account AgreementExhibit B:
    
    Tenant Notice LetterExhibit C:
    
    Assignment of Interest Rate Cap AgreementExhibit D:
    
    Credit Card Company Notice LetterExhibit E:
    
    Condemnation ProceedingsExhibit F:
    
    San Antonio Release Parcel
 8




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LOAN AGREEMENT
      I. DEFINITIONS; PRINCIPLES OF CONSTRUCTION
 Section 1.1 Definitions.




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33




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Section 1.2 Principles of Construction.
  34




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II. GENERAL TERMS
 Section 2.1 Loan Commitment; Disbursement to Borrower.
 Agreement to Lend and Borrow.
  Single Disbursement to Borrower.
  The Note, Security Instruments and Loan Documents.
  Use of Proceeds.
  Section 2.2 Interest; Loan Payments; Late Payment Charge.
 Payments.
 Interest
 35




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Interest Calculation.
  Eurodollar Rate Unascertainable; Illegality; Increased Costs.
   36




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37




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Payment on Maturity Date.
  Payments after Default.
  38




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Late Payment Charge.
  Usury Savings.
  Foreign Taxes.
  39




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Section 2.3 Prepayments.
 Voluntary Prepayments.
  40




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Mandatory Prepayments.
  41




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Prepayments After Default.
  Making of Payments.
 # #
 Application of Prepayments.
   42




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Section 2.4 Interest Rate Cap Agreement.
     43




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Section 2.5 Release of Property.
 Release of Individual Property.
  44




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45




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Release on Payment in Full.
  Section 2.6 Substitution of Properties.
      46




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Section 2.7 Releases of Certain Parcels
   III. CASH MANAGEMENT
 Section 3.1 Establishment of Accounts
    53




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Section 3.2 Deposits into Lockbox Account
  54




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Section 3.3 Account Name.
   Section 3.4 Eligible Accounts.
  Section 3.5 Permitted Investments.
  55




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Section 3.6 Intentionally Omitted.
 Section 3.7 Transfer To and Disbursements from the Lockbox Account.
          56




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Section 3.8 Withdrawals From the Tax Account and the Insurance Premium Account.
  Section 3.9 Withdrawals from the Replacement Reserve Account.
  Section 3.10 Withdrawals from the Required Repair Account.
  Section 3.11 Withdrawals from the Debt Service Account.
  Section 3.12 Intentionally Omitted.
 Section 3.13 Intentionally Omitted.
 Section 3.14 Withdrawals from the Ground Rent Account
  Section 3.15 Disbursement Upon Lockbox Trigger Event Cure.
  Section 3.16 Lockbox Trigger Event Cure.
  57




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Section 3.17 Sole Dominion and Control.
  Section 3.18 Security Interest.
  Section 3.19 Rights on Default.
  Section 3.20 Financing Statement; Further Assurances.
  58




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Section 3.21 Borrowers Obligation Not Affected.
  Section 3.22 Payments Received Under this Agreement.
  IV. REPRESENTATIONS AND WARRANTIES
 Section 4.1 Borrower Representations.
  Organization.
   59




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Proceedings.
  No Conflicts.
  Litigation.
  Agreements.
  60




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Solvency.
  Full and Accurate Disclosure.
  No Plan Assets.
  61




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Compliance.
  Financial Information.
  Condemnation.
 Exhibit E
 Federal Reserve Regulations.
  62




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Utilities and Public Access.
  Not a Foreign Person.
  Separate Lots.
  Assessments.
  Enforceability.
  No Prior Assignment.
  Insurance.
  63




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Use of Property.
  Certificate of Occupancy; Licenses.
  Flood Zone.
  Physical Condition.
  Boundaries.
  64




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Leases.
  Survey.
  Intentionally Omitted.
 Filing and Recording Taxes.
  Franchise Agreement; PIPs.
 65
         Management Agreement/Operating Lease.
   Illegal Activity.
  No Change in Facts or Circumstances; Disclosure.
  Investment Company Act.
  66




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Principal Place of Business; State of Organization.
 .
 Single Purpose Entity.
       67




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68




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69




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70




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Business Purposes.
  Taxes.
  71




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Intentionally Omitted.
 Environmental Representations and Warranties.
 Schedule X
 Taxpayer Identification Number.
  Embargoed Person and Patriot Act
 72
         Ground Lease Representations.
 73
                 74




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Deposit Accounts.
       Section 4.2 Survival of Representations.
  V. BORROWER COVENANTS
 Section 5.1 Affirmative Covenants.
  75




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Existence; Compliance with Legal Requirements.
  76
       Taxes and Other Charges.
  Litigation.
  Access to Properties.
  Notice of Default.
  77




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Cooperate in Legal Proceedings.
  Award and Insurance Benefits.
  Further Assurances.
     Mortgage and Intangible Taxes.
  78




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Financial Reporting.
   79
        80
             Business and Operations.
  81




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Costs of Enforcement.
  Estoppel Statement.
     82




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Loan Proceeds.
  Performance by Borrower.
  Confirmation of Representations.
  Leasing Matters.
  83




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84




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Management Agreement.
  85




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86




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Environmental Covenants.
  87




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Alterations.
  88




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Franchise Agreement.
   89




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Operating Lease.
     90




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OFAC.
  The Ground Lease.
   91




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92




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O&M Program.
  93




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Condominium Provisions.
       Section 5.2 Negative Covenants.
  94




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Liens.
  Dissolution.
  Change In Business.
  Debt Cancellation.
  Zoning.
  No Joint Assessment.
  95




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Name, Identity, Structure, or Principal Place of Business.
  ERISA.
      96




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Affiliate Transactions.
  Transfers.
    97




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98




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VI. INSURANCE; CASUALTY; CONDEMNATION; REQUIRED REPAIRS
 Section 6.1 Insurance.
     99




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100




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101




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102




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103




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Section 6.2 Casualty.
  Section 6.3 Condemnation.
  104




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Section 6.4 Restoration.
       105




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106




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107




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108




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VII. RESERVE FUNDS
 Section 7.1 Required Repair Funds.
   109




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Release of Required Repair Funds.
 .
 Section 7.2 Tax and Insurance Escrow Fund.
  110




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Section 7.3 Replacements and Replacement Reserve.
 Replacement Reserve Fund.
  Disbursements from Replacement Reserve Account.
  111




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Performance of Capital Expenditures.
    112




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113




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Failure to Make Capital Expenditures.
   Balance in the Replacement Reserve Account.
  114




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Section 7.4 Ground Lease Escrow Fund.
  Section 7.5 Intentionally Omitted.
 Section 7.6 Reserve Funds, Generally.
      115




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VIII. DEFAULTS
 Section 8.1 Event of Default.
       116




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117




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118




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119




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120




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121




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Section 8.2 Remedies.
   122




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Section 8.3 Remedies Cumulative; Waivers.
  IX. SPECIAL PROVISIONS
 Section 9.1 Sale of Notes and Securitization
  123




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124




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Section 9.2 Securitization Indemnification.
   125




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126




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Section 9.3 Servicer.
  127




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Section 9.4 Exculpation.
   128




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129




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Section 9.5 Contributions and Waivers.
       130




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131




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132




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Section 9.6 Reallocation of Loan Amounts.
  133




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X. MISCELLANEOUS
 Section 10.1 Survival.
  Section 10.2 Lenders Discretion.
  Section 10.3 Governing Law.
  134




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Section 10.4 Modification, Waiver in Writing.
  Section 10.5 Delay Not a Waiver.
  135




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Section 10.6 Notices.
  If to Borrower:
    
    c/o FelCor Lodging Trust Incorporated545 E. John Carpenter Freeway, Suite 1300Irving, Texas 75062Attention: General CounselFacsimile No.: (972) 444-4949With a copy to:
    
    Jenkens & Gilchrist1445 Ross Avenue, Suite 3200Dallas, Texas 75202Attention: Robert W. Dockery, Esq.Facsimile No.: (214) 855-4300If to Lender:
    
    Bank of America, N.A.Capital Markets Servicing Group900 West Trade Street, Suite 650Mail Code: NC1-026-06-01Charlotte, North Carolina 28255Telephone No.: (866) 531-0957Facsimile No.: (704) 317-4501andWith a copy to:
    
    Thacher Proffitt & Wood LLPTwo World Financial CenterNew York, New York 10281Attention: David S. Hall, Esq.Facsimile No.: (212) 912-7751
   136




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Section 10.7 Trial by Jury.
  Section 10.8 Headings.
  Section 10.9 Severability.
  Section 10.10 Preferences.
  Section 10.11 Waiver of Notice.
  137




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Section 10.12 Remedies of Borrower.
  Section 10.13 Expenses; Indemnity.
  138




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Section 10.14 Schedules and Exhibits Incorporated.
  Section 10.15 Offsets, Counterclaims and Defenses.
  139




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Section 10.16 No Joint Venture or Partnership; No Third Party Beneficiaries.
   Section 10.17 Publicity.
  Section 10.18 Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets.
  140




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Section 10.19 Waiver of Counterclaim.
  Section 10.20 Conflict; Construction of Documents; Reliance.
  141




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Section 10.21 Brokers and Financial Advisors.
  Section 10.22 Prior Agreements.
  Section 10.23 Counterparts.
  Section 10.24 Liability.
  [NO FURTHER TEXT ON THIS PAGE]
 142




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FELCOR/JPM HOTELS, L.L.C., a Delaware limited
liability companyBy:
    
    /s/ Joel M. EastmanName: Joel M. EastmanTitle: Vice PresidentDJONT/JPM LEASING, L.L.C., a Delaware limited
liability companyBy:
    
    /s/ Joel M. EastmanName: Joel M. EastmanTitle: Vice PresidentBANK OF AMERICA, N.A., a national banking associationBy:
    
    Michael S. BirajiclianName: Michael S. BirajiclianTitle: PrincipalAcknowledged and agreed to with respect to its
obligations set forth in Article 9 hereof:FELCOR LODGING LIMITED PARTNERSHIP a
Delaware limited partnershipBy:
    
    FelCor Lodging Trust Incorporated, a
Maryland corporation, its generalpartnerBy:
    
    /s/ Jonathan H. YellenName: Jonathan H. YellenTitle: Executive Vice President