Document:

Exhibit
4.3

 

(Face of Note)

 

8 7/8%
SENIOR NOTES DUE 2011

CUSIP  50419Q AC 6

 

	
   

  	
  No.  R-1

  	
   

  	
  $322,775,000

  

 

LA
QUINTA PROPERTIES, INC.

 

promises to pay to CEDE & CO., INC. or its registered assigns, the
principal sum of THREE HUNDRED TWENTY-TWO MILLION SEVEN HUNDRED SEVENTY-FIVE
THOUSAND Dollars ($322,775,000) on March 15, 2011.

 

Interest Payment Dates:  March
15 and September 15, commencing September 15, 2003.

 

Record Dates:  March 1 and September 1.

 

 

IN WITNESS WHEREOF, the Company has caused this Note
to be signed by its duly authorized officer.

 

	
   

  	
  LA QUINTA PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Rea

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David L. Rea

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  Chief Financial Officer

  
					

 

	
  This is one of the Global

  Notes referred to in the

  within-mentioned Indenture:

  

 

	
  U.S. BANK TRUST NATIONAL ASSOCIATION

  
	
  as Trustee

  

 

	
  By:

  	
       /s/ Cheryl L. Clarke

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:  March
  19, 2003

  	
   

  	
   

  
					

 

 

(Back of Note)

 

8 7/8% SENIOR NOTES DUE
2011

 

THE NOTES EVIDENCED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR OTHER SECURITIES LAWS.  NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION UNLESS THE TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT.  THE HOLDER OF THIS SECURITY BY ITS
ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT IS A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR
(B) IT IS NOT A U.S. PERSON AND IS ACQUIRING ITS NOTE IN AN “OFFSHORE
TRANSACTION” PURSUANT TO RULE 904 OF REGULATION S UNDER THE
SECURITIES ACT, (2) AGREES THAT IT WILL NOT PRIOR TO (X) THE DATE
WHICH IS TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY
RULE 144(k) UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION
THEREUNDER) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR OF ANY
PREDECESSOR OF THIS NOTE) OR THE LAST DAY ON WHICH THE COMPANY OR ANY AFFILIATE
OF THE COMPANY WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE) AND
(Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW (THE
“RESALE RESTRICTION TERMINATION DATE”), OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE
EXCEPT (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT
WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A
PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED
IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A INSIDE THE UNITED
STATES, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT
OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER
THE SECURITIES ACT OR (E) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT
WILL GIVE TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND; PROVIDED THAT THE COMPANY, THE
TRUSTEE AND THE REGISTRAR SHALL HAVE THE RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER (I) PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH
OF THEM, AND (II) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A
CERTIFICATION OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS NOTE
IS COMPLETED AND DELIVERED BY THIS TRANSFEROR TO THE TRUSTEE.  THIS LEGEND WILL BE REMOVED UPON THE REQUEST
OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.  AS USED HEREIN, THE TERMS “OFFSHORE
TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM
BY REGULATION S UNDER THE SECURITIES ACT.

 

THIS GLOBAL NOTE IS HELD
BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS
NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE
MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF
THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN
PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY
BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

UNLESS AND UNTIL IT IS
EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT
BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO 

 

 

THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW
YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE
& CO. OR IN SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS
MAY BE  REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

Capitalized terms used
herein shall have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

 

1.                                       Interest.  La
Quinta Properties, Inc., a Delaware corporation (the “Company”), promises to pay
interest (as defined in the Indenture) on the principal amount of this Note at
8 7/8% per annum until maturity and shall pay Additional Interest, if any, as
provided in the Registration Rights Agreement relating to these Notes.  The Company shall pay interest semi-annually
in arrears in cash on March 15 and September 15 of each year, or if any such
day is not a Business Day, on the next succeeding Business Day (each an “Interest
Payment Date”).  Interest on
the Notes shall accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from March 19, 2003; provided,
however, that if there is no existing Default in the payment of
interest, and if this Note is authenticated between a record date referred to
on the face hereof and the next succeeding Interest Payment Date, interest
shall accrue from such next succeeding Interest Payment Date; provided,
further,
that the first Interest Payment Date shall be September 15, 2003.  The Company shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, from time to time at a rate that is 1% per annum
in excess of the interest rate then in effect under the Indenture and this
Note; it shall pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue installments of interest (without regard
to any applicable grace periods), from time to time at the same rate to the
extent lawful.  Interest shall be computed on the basis of a 360-day
year of twelve 30-day months.

 

2.                                       Method of Payment. 
The Company shall pay interest on the Notes (except defaulted interest) to the
Persons in whose name this Note (or one or more Predecessor Notes) is
registered at the close of business on March 1 or September 1 preceding the
Interest Payment Date, even if such Notes are cancelled after such record date
and on or before such Interest Payment Date, except as provided in Section 2.12
of the Indenture with respect to defaulted interest.  The Notes shall be
payable as to principal, premium, if any, and interest at the office or agency
of the Company maintained for such purpose, or, at the option of the Company,
payment of interest may be made by check mailed to the Holders at their
addresses set forth in the Security Register; provided, however,
that payment by wire transfer of immediately available funds shall be required
with respect to principal of and interest and premium, if any, on, all Global
Notes and all other Notes the Holders of which shall have provided wire
transfer instructions to the Company or the Paying Agent.  Such payment shall be in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

 

3.                                       Paying Agent and Registrar.  Initially, U.S. Bank Trust National
Association, the Trustee under the Indenture, shall act as Paying Agent and
Registrar.  The Company may change any Paying Agent or Registrar without
notice to any Holder.  The Company,
Parent Guarantor or any of their Subsidiaries may act in any such capacity.

 

4.                                       Indenture.  The Company issued the Notes under an
Indenture, dated as of March 19, 2003 (“Indenture”), among the Company, Parent
Guarantor and the Trustee.  The terms of
the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S.
Code Sections  77aaa-77bbbb). 
The Notes are subject to all such terms, and Holders are referred to the
Indenture and such Act for a statement of such terms.  To the extent any provision of this Note conflicts with the
express provisions of the Indenture, the provisions of the Indenture shall govern
and be controlling.

 

 

5.                                       Optional Redemption.

 

(a)                                  At
any time prior to March 15, 2007, the Company may redeem all or any portion of
the Notes, at once or over time, after giving the required notice under the
Indenture at a redemption price equal to the greater of (i) 100% of the
principal amount of the Notes to be redeemed, and (ii) the sum of the
present values of (1) the redemption price of the Notes at March 15, 2007
(as set forth below) and (2) the remaining scheduled payments of interest
from the redemption date through March 15, 2007, but excluding accrued and
unpaid interest through the redemption date, discounted to the redemption date
(assuming a 360-day year consisting of twelve 30-day months), at the
Treasury Rate plus 50 basis points, plus, in either case, accrued and unpaid interest,
if any, to the redemption date (subject to the right of Holders of record on
the relevant record date to receive interest due on the relevant Interest
Payment Date).

 

(b)                                 In
addition, before March 15, 2006, subject to the provisions contained in the
Credit Agreement prohibiting the purchase of Notes by the Company, unless and
until any Indebtedness outstanding under the Credit Agreement is repaid in
full, the Company may redeem, on any one or more occasions, with the net cash
proceeds of one or more public offerings of common equity, including
Class B Common Stock, of the Company and/or Parent Guarantor (within
60 days of the consummation of any public Equity Offering), up to 35% of
the aggregate principal amount of the Notes at a redemption price equal to
108.875% of the principal amount of the Notes issued under the Indenture, plus
accrued and unpaid interest thereon, if any, to the redemption date; provided,
however, that, in order to redeem the Notes with the net cash
proceeds of a public Equity Offering, at least 65% of the aggregate principal
amount of the Notes originally issued under the Indenture must remain
outstanding immediately following any such redemption.

 

(c)                                  On
or after March 15, 2007, the Company may redeem all or a part of the Notes upon
notice in accordance with Section 3.03 of the Indenture, at the redemption
prices (expressed as percentages of principal amount) set forth below, plus
accrued and unpaid interest thereon to the redemption date, if redeemed during
the 12-month period beginning on March 15 of the years indicated below: 

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
  104.438

  	
  %

  
	
  2008

  	
   

  	
  102.219

  	
  %

  
	
  2009 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

(d)                                 Any
prepayment pursuant to this paragraph shall be made pursuant to the provisions
of Sections 3.01 through 3.06 of the Indenture.

 

6.                                       Mandatory Redemption.  Except as set forth in Sections 4.12 and
4.18 of the Indenture, the Company shall not be required to make mandatory
redemption or sinking fund payments with respect to the Notes.

 

7.                                       Repurchase at Option of Holder.

 

(a)                                  Upon
the occurrence of a Change of Control, the Company shall, within 10 days of a
change of control, make an offer, pursuant to the procedures set forth in
Section 3.09 of the Indenture, to all Holders to repurchase all or any portion
(equal to $1,000 or an integral multiple of $1,000) of such Holder’s Notes at a
purchase price, in cash, equal to 101% of the aggregate principal amount of the
Notes repurchased, plus accrued and unpaid interest on the Notes repurchased to
the Purchase Date.

 

(b)                                 If
Parent Guarantor or a Restricted Subsidiary consummates any Asset Sales, Parent
Guarantor shall not be required to apply
any Net Proceeds to repurchase Notes in accordance with the Indenture until the
aggregate Excess Proceeds from all Asset Sales following the date the Notes are
first issued exceeds $15.0 million.
Thereafter, the Company shall make an Asset Sale Offer to all Holders of Notes
and other Indebtedness that ranks by its terms equally in right of payment with
the Notes and the terms of which contain substantially similar requirements
with respect to the application of proceeds from sales of assets or in
connection with securitizations as are set forth in the Indenture to
purchase on a proportional basis the maximum principal amount of Notes, that is
an integral multiple of $1,000, that may be purchased out of the Excess
Proceeds, at an offer price in cash equal to

 

 

100% of the principal amount of the Notes plus accrued and unpaid
interest thereon, if any, to the Purchase Date in accordance with the
procedures set forth in the Indenture. 
To the extent that the aggregate amount of Notes and other Indebtedness
tendered under such Asset Sale Offer is less than the Excess Proceeds, any
remaining Excess Proceeds may be used for any purpose not otherwise prohibited
by the Indenture, including general corporate purposes.  If the aggregate principal amount of Notes
surrendered by Holders thereof exceeds the amount of Excess Proceeds available
for purchases of such Notes, the Trustee shall select the Notes to be purchased
in the manner set forth in Section 3.02 of the Indenture.

 

8.                                       Notice of Redemption. 
Notices of redemption shall be mailed at least 30 days but not more than 60
days before the redemption date to each Holder whose Notes are to be redeemed
at its registered address.  Notes in denominations larger than $1,000 may
be redeemed in part but only in integral multiples of $1,000, unless all of the
Notes held by a Holder are to be redeemed.  On and after the redemption
date interest shall cease to accrue on Notes or portions thereof called for
redemption.

 

9.                                       Denominations, Transfer, Exchange. 
The Notes are in registered form without coupons in denominations of $1,000 and
integral multiples of $1,000.  This Note shall represent the aggregate
principal amount of outstanding Notes from time to time endorsed hereon and the
aggregate principal amount of Notes represented hereby may from time to time be
reduced or increased, as appropriate, to reflect exchanges and redemptions.  The transfer of Notes may be registered and
Notes may be exchanged as provided in the Indenture.  The Registrar and
the Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay
any taxes and fees required by law or permitted by the Indenture.  The Company need not exchange or register
the transfer of any Note or portion of a Note selected for redemption, except
for the unredeemed portion of any Note being redeemed in part.  Also, the
Company need not exchange or register the transfer of any Notes for a period of
15 days before a selection of Notes to be redeemed or during the period between
a record date and the corresponding Interest Payment Date.

 

10.                                 Persons Deemed Owners. 
The registered Holder of a Note may be treated as its owner for all purposes.

 

11.                                 Amendment, Supplement and Waiver. 
Subject to certain exceptions, the Company and the Trustee may amend or
supplement the Indenture or the Notes with the consent of the Holders of at
least a majority in principal amount of the Notes, including Additional Notes,
if any then outstanding, voting as a single class (including consents obtained
in connection with a purchase of or tender offer or exchange offer for the
Notes), and, subject to Sections 6.04 and 6.07 of the Indenture, any existing
Default or Event of Default (except a continuing Default or Event of Default
(i) in the payment of principal, premium, if any, interest, if any, on the
Notes and (ii) in respect of a covenant or provision which under the Indenture
cannot be modified or amended without the consent of the Holder of each Note
affected by such modification or amendment) or compliance with any provision of
the Indenture or the Notes may be waived with the consent of the Holders of at
least a majority in principal amount of the Notes, including Additional Notes,
if any, then outstanding voting as a single class (including consents obtained
in connection with a purchase of or tender offer or exchange offer for the Notes).  Without the consent of any Holder, the
Company and the Trustee may amend or supplement the Indenture or the Notes to
(a) cure any ambiguity, defect or inconsistency; (b) provide for uncertificated
Notes in addition to or in place of certificated Notes (provided that the
uncertificated Notes are issued in registered form for purposes of Section
163(f) of the Code, or in a manner such that the uncertificated Notes are
described in Section 163(f)(2)(B) of the Code); (c) provide for the assumption
of the obligations of the Company or any Guarantor to Holders in the case of a
merger, consolidation or sale of all or substantially all of the assets of the
Company or any Guarantor; (d) make any change that would provide any additional
rights or benefits to the Holders or that does not adversely affect the legal
rights under the Indenture of any such Holder; (e) release Guarantors from
guarantees as provided or permitted by the terms of the Indenture; or (f)
comply with requirements of the SEC in order to effect or maintain the
qualification of the Indenture under the TIA.

 

12.                                 Defaults and Remedies.  Each of the following constitutes an Event
of Default with respect to the Notes: 
(i) default for 30 days in the payment when due of interest,
if any, on the Notes; (ii) default in payment when due of the principal of
or premium, if any, on the Notes at maturity, upon redemption or otherwise,
including the failure to make a payment to purchase Notes tendered pursuant to
a Change of Control Offer or an Asset Sale Offer; (iii) failure by Parent
Guarantor or any Restricted Subsidiary to comply with the provisions of Section
5.01 of the

 

 

Indenture; (iv) failure by Parent Guarantor or any Restricted
Subsidiary for 30 days in the performance of any other covenant, warranty
or agreement in the Indenture or the Notes after written notice shall have been
given to the Company by the Trustee or to the Company and the Trustee by
Holders of at least 25% in principal amount of the Notes then outstanding;
(v) for so long as any of the Existing Notes remain outstanding, a payment
default resulting from the failure to pay at maturity any Indebtedness of
Parent Guarantor or any Restricted Subsidiary in an aggregate principal amount
greater than $10.0 million; (vi) a default under any Indebtedness by
Parent Guarantor or any Restricted Subsidiary that results in acceleration of
the maturity of such Indebtedness, or failure to pay any such Indebtedness at
maturity, in an aggregate amount greater than $10.0 million;
(vii) failure by Parent Guarantor or any Restricted Subsidiary to pay
final judgments rendered against them (other than judgment liens without
recourse to any of Parent Guarantor’s or any Restricted Subsidiary’s assets or
property other than assets or property securing Non-Recourse Indebtedness)
aggregating in excess of $20.0 million, which judgments are not paid,
discharged or stayed for a period of 60 days, except for judgments as to
which a reputable insurance company has accepted full liability;
(viii) except as permitted by the Indenture, any guarantee by an
Additional Guarantor that is a Significant Subsidiary with respect to the Notes
shall be held in a judicial proceeding to be unenforceable or invalid or shall
cease for any reason to be in full force and effect or Parent Guarantor or an
Additional Guarantor that is a Significant Subsidiary (in both cases, including
its successors and assigns), or any Person acting on behalf of such Guarantor
(or its successors and assigns), shall deny or disaffirm its obligations or
shall fail to comply with any obligations under its guarantee; and (h) certain
events of bankruptcy, insolvency or reorganization affecting the Company,
Parent Guarantor or any of its Significant Subsidiaries as set forth in the
Indenture.

 

If any Event of Default
(other the Events of Default arising from certain events of bankruptcy or
insolvency) occurs and is continuing, the Trustee or the Holders of at least
25% in principal amount of the then outstanding Notes may declare all the Notes
to be due and payable.  Notwithstanding
the foregoing, in the case of an Event of Default arising from certain events
of bankruptcy or insolvency described in the Indenture, all outstanding Notes
shall become due and payable immediately without further action or notice.  Holders may not enforce the Indenture or the
Notes except as provided in the Indenture. 
Subject to certain limitations, Holders of a majority in aggregate
principal amount of the then outstanding Notes may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from Holders notice of
any continuing Default or Event of Default (except a Default or Event of
Default relating to the payment of principal, premium, if any, or interest, if
any) if and so long as a committee of its Responsible Officers in good faith
determines that withholding notice is in the interests of the Holders.  The Holders of a majority in aggregate
principal amount of the Notes then outstanding by notice to the Trustee may on
behalf of the Holders of all of the Notes waive any existing Default or Event
of Default and its consequences under the Indenture except a continuing Default
or Event of Default or (i) in the payment of the principal of, or interest on,
the Notes and (ii) in respect of a covenant or provision which under the
Indenture cannot be modified or amended without the consent of the Holder of
each Note affected by such modification or amendment).  The Company is required to deliver to the
Trustee annually a statement regarding compliance with the Indenture, and the
Company is required upon becoming aware of any Default or Event of Default, to
deliver to the Trustee a statement specifying such Default or Event of Default.

 

13.                                 Trustee Dealings with Company.  Subject to certain limitations, the Trustee
in its individual or any other capacity may become the owner or pledgee of
Notes and may otherwise deal with the Company or any Affiliate of the Company
with the same rights it would have if it were not Trustee.

 

14.                                 No Recourse Against Others. 
No past, present or future director, officer, employee, incorporator or
stockholder of the Company or of any Guarantor, as such, shall have any
liability for any obligations of the Company or any Guarantor under the
Indenture, the Notes, the guarantees or for any claim based on, in respect of,
or by reason of, such obligations or their creation.  Each Holder by
accepting a Note waives and releases all such liability.

 

15.                                 Authentication. 
This Note shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

 

16.                                 Abbreviations. 
Customary abbreviations may be used in the name of a Holder or an assignee,
such as:  TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act).

 

 

17.                                 Additional Rights of Holders of
Restricted Global Notes and Restricted Definitive Notes.  In addition to the rights provided to
Holders of Notes under the Indenture, Holders of Restricted Global Notes and
Restricted Definitive Notes that are Initial Notes shall have all the rights
set forth in the Registration Rights Agreement, dated as of March 19,
2003, among the Company, Parent Guarantor and the parties named on the
signature pages thereto or, in the case of Additional Notes, Holders of
Restricted Global Notes and Restricted Definitive Notes shall have the rights
set forth in one or more Registration Rights Agreements, if any, among the
Company and the other parties thereto, relating to rights given by the Company
to the purchasers of such Additional Notes.

 

18.                                 CUSIP Numbers.  Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on the Notes and has directed the Trustee to
use CUSIP numbers in notices of redemption or notices of Offers to Purchase as
a convenience to Holders.  No
representation is made as to the correctness of such numbers either as printed
on the Notes or as contained in any notice of redemption or notice of an Offer
to Purchase and reliance may be placed only on the other identification numbers
printed thereon and any such redemption or Offer to Purchase shall not be
affected by any defect in or omission of such numbers.

 

The Company shall furnish
to any Holder upon written request and without charge a copy of the
Indenture.  Requests may be made to: La
Quinta Properties, Inc., 909 Hidden Ridge, Suite 600, Irving, Texas  75038, Attention:  Corporate Secretary.

 

19.                            Governing Law.  The internal law of the State of New York
shall govern and be used to construe this Note without giving effect to
applicable principals of conflicts of law to the extent that the application of
the laws of another jurisdiction would be required thereby.

 

 

Option of Holder to Elect
Purchase

 

If you want to elect to have this Note purchased by the Company
pursuant to Section 4.12 or 4.18 of the Indenture, check the box below:

 

o                                    Section
4.12

 

o                                    Section
4.18

 

If you want to elect to have only part of this Note purchased by the
Company pursuant to Section 4.12 or Section 4.18 of the Indenture, state the
amount you elect to have purchased: 
$                    

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the face of
  this Note)

  
	
   

  	
   

  
	
   

  	
  Tax Identification No.:

  
	
  :

  	
   

  
	
   

  	
   

  
	
   

  	
  SIGNATURE GUARANTEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signatures must be guaranteed by an “eligible
  guarantor institution” meeting the requirements of the Registrar, which
  requirements include membership or participation in the Security Transfer
  Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
  as may be determined by the Registrar in addition to, or in substitution for,
  STAMP, all in accordance with the Securities Exchange Act of 1934, as
  amended.

  

 

 

Assignment
Form

 

To assign this Note, fill in the form below:

 

	
  (I) or (we) assign and transfer this Note to

  	
   

  
	
   

  	
   

  
	
  (Insert assignee’s
  social security or other tax I.D. no.)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Print or type
  assignee’s name, address and zip code)

  	
   

  
	
   

  	
   

  
	
  and irrevocably appoint

  	
   

  	
   

  	
   

  
	
   

  	
  as agent to transfer this Note on the books of the
  Company.  The agent may substitute another to act for him.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the face of
  this Note)

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  .

  	
  Signatures must be guaranteed by an “eligible
  guarantor institution” meeting the requirements of the Registrar, which
  requirements include membership or participation in the Security Transfer
  Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
  as may be determined by the Registrar in addition to, or in substitution for,
  STAMP, all in accordance with the Securities Exchange Act of 1934, as
  amended.

  	
   

  
										

 

 

SCHEDULE OF EXCHANGES OF
INTERESTS IN THE GLOBAL NOTE

 

The following exchanges of a part of this Global Note
for an interest in another Global Note or for a Definitive Note, or exchanges
of a part of another Global Note or Definitive Note for an interest in this
Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of

  decrease in

  Principal Amount

  of this Global Note

  	
   

  	
  Amount of
  increase

  in Principal Amount

  of this Global Note

  	
   

  	
  Principal
  Amount

  of this Global Note

  following such

  decrease (or

  increase)

  	
   

  	
  Signature
  of

  authorized signatory

  of Trustee or

  Note Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

(Face of Note)

 

8 7/8%
SENIOR NOTES DUE 2011

 

CUSIP  U51318 AA 8

 

	
   

  	
  No.  R-2

  	
   

  	
  $2,225,000

  

 

LA
QUINTA PROPERTIES, INC.

 

promises to pay to CEDE & CO., INC. or its registered assigns, the
principal sum of TWO MILLION TWO HUNDRED TWENTY-FIVE THOUSAND Dollars
($2,225,000) on March 15, 2011.

 

Interest Payment Dates:  March
15 and September 15, commencing September 15, 2003.

 

Record Dates:  March 1 and September 1.

 

 

IN WITNESS WHEREOF, the Company has caused this Note
to be signed by its duly authorized officer.

 

	
   

  	
  LA QUINTA PROPERTIES, INC.

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
     /s/ David L. Rea

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David L. Rea

  	
   

  	 

	
   

  	
   

  	
  Title:

  	
  Executive Vice President and Chief Financial Officer

  	 

	
   

  	
   

  	
   

  	 

	
  This is one of the Global

  Notes referred to in the

  within-mentioned Indenture:

  	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  U.S. BANK TRUST NATIONAL ASSOCIATION

  	
   

  	
   

  	 

	
  as Trustee

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  By:

  	
       /s/ Cheryl L. Clark

  	
   

  	
   

  	 

	
   

  	
  Authorized Signatory

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  Dated:  March
  19, 2003

  	
   

  	
   

  	 

										

 

 

(Back of Note)

 

8 7/8% SENIOR NOTES DUE
2011

 

THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR OTHER
SECURITIES LAWS.  NEITHER THIS NOTE NOR
ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION UNLESS THE TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.  THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF
(1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS NOT A
U.S. PERSON AND IS ACQUIRING ITS NOTE IN AN “OFFSHORE TRANSACTION” PURSUANT TO
RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (2) AGREES
THAT IT WILL NOT PRIOR TO (X) THE DATE WHICH IS TWO YEARS (OR SUCH SHORTER
PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER THE SECURITIES ACT OR ANY
SUCCESSOR PROVISION THEREUNDER) AFTER THE LATER OF THE ORIGINAL ISSUE DATE
HEREOF (OR OF ANY PREDECESSOR OF THIS NOTE) OR THE LAST DAY ON WHICH THE
COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE (OR ANY
PREDECESSOR OF THIS NOTE) AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE
REQUIRED BY APPLICABLE LAW (THE “RESALE RESTRICTION TERMINATION DATE”), OFFER,
SELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE COMPANY,
(B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A INSIDE THE UNITED STATES,
(D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR
OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT OR (E) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT
WILL GIVE TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND; PROVIDED THAT THE COMPANY, THE
TRUSTEE AND THE REGISTRAR SHALL HAVE THE RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER (I) PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH
OF THEM, AND (II) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATION
OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS NOTE IS COMPLETED
AND DELIVERED BY THIS TRANSFEROR TO THE TRUSTEE.  THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER
THE RESALE RESTRICTION TERMINATION DATE. 
AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND
“U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE
SECURITIES ACT.

 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED
IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT
OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER
ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS
MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (II) THIS GLOBAL
NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF
THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL
NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF THE COMPANY.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART
FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO 

 

 

THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”),
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS MAY BE  REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.

 

Capitalized terms used herein shall have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated.

 

1.                                       Interest.  La
Quinta Properties, Inc., a Delaware corporation (the “Company”), promises to pay
interest (as defined in the Indenture) on the principal amount of this Note at
8 7/8% per annum until maturity and shall pay Additional Interest, if any, as
provided in the Registration Rights Agreement relating to these Notes.  The Company shall pay interest semi-annually
in arrears in cash on March 15 and September 15 of each year, or if any such
day is not a Business Day, on the next succeeding Business Day (each an “Interest
Payment Date”).  Interest on
the Notes shall accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from March 19, 2003; provided,
however, that if there is no existing Default in the payment of
interest, and if this Note is authenticated between a record date referred to
on the face hereof and the next succeeding Interest Payment Date, interest
shall accrue from such next succeeding Interest Payment Date; provided,
further,
that the first Interest Payment Date shall be September 15, 2003.  The Company shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, from time to time at a rate that is 1% per annum
in excess of the interest rate then in effect under the Indenture and this
Note; it shall pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue installments of interest (without regard
to any applicable grace periods), from time to time at the same rate to the
extent lawful.  Interest shall be computed on the basis of a 360-day
year of twelve 30-day months.

 

2.                                       Method of Payment. 
The Company shall pay interest on the Notes (except defaulted interest) to the
Persons in whose name this Note (or one or more Predecessor Notes) is
registered at the close of business on March 1 or September 1 preceding the
Interest Payment Date, even if such Notes are cancelled after such record date
and on or before such Interest Payment Date, except as provided in Section 2.12
of the Indenture with respect to defaulted interest.  The Notes shall be
payable as to principal, premium, if any, and interest at the office or agency
of the Company maintained for such purpose, or, at the option of the Company,
payment of interest may be made by check mailed to the Holders at their
addresses set forth in the Security Register; provided, however,
that payment by wire transfer of immediately available funds shall be required
with respect to principal of and interest and premium, if any, on, all Global
Notes and all other Notes the Holders of which shall have provided wire
transfer instructions to the Company or the Paying Agent.  Such payment shall be in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

 

3.                                       Paying Agent and Registrar.  Initially, U.S. Bank Trust National
Association, the Trustee under the Indenture, shall act as Paying Agent and
Registrar.  The Company may change any Paying Agent or Registrar without
notice to any Holder.  The Company,
Parent Guarantor or any of their Subsidiaries may act in any such capacity.

 

4.                                       Indenture.  The Company issued the Notes under an
Indenture, dated as of March 19, 2003 (“Indenture”), among the Company, Parent
Guarantor and the Trustee.  The terms of
the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S.
Code §§ 77aaa-77bbbb). 
The Notes are subject to all such terms, and Holders are referred to the
Indenture and such Act for a statement of such terms.  To the extent any provision of this Note conflicts with the
express provisions of the Indenture, the provisions of the Indenture shall
govern and be controlling.

 

 

5.                                       Optional Redemption.

 

(a)                                  At
any time prior to March 15, 2007, the Company may redeem all or any portion of
the Notes, at once or over time, after giving the required notice under the
Indenture at a redemption price equal to the greater of (i) 100% of the
principal amount of the Notes to be redeemed, and (ii) the sum of the
present values of (1) the redemption price of the Notes at March 15, 2007
(as set forth below) and (2) the remaining scheduled payments of interest
from the redemption date through March 15, 2007, but excluding accrued and
unpaid interest through the redemption date, discounted to the redemption date
(assuming a 360-day year consisting of twelve 30-day months), at the
Treasury Rate plus 50 basis points, plus, in either case, accrued and unpaid
interest, if any, to the redemption date (subject to the right of Holders of
record on the relevant record date to receive interest due on the relevant
Interest Payment Date).

 

(b)                                 In
addition, before March 15, 2006, subject to the provisions contained in the
Credit Agreement prohibiting the purchase of Notes by the Company, unless and
until any Indebtedness outstanding under the Credit Agreement is repaid in
full, the Company may redeem, on any one or more occasions, with the net cash
proceeds of one or more public offerings of common equity, including
Class B Common Stock, of the Company and/or Parent Guarantor (within
60 days of the consummation of any public Equity Offering), up to 35% of
the aggregate principal amount of the Notes at a redemption price equal to
108.875% of the principal amount of the Notes issued under the Indenture, plus
accrued and unpaid interest thereon, if any, to the redemption date; provided,
however, that, in order to redeem the Notes with the net cash proceeds
of a public Equity Offering, at least 65% of the aggregate principal amount of
the Notes originally issued under the Indenture must remain outstanding
immediately following any such redemption.

 

(c)                                  On
or after March 15, 2007, the Company may redeem all or a part of the Notes upon
notice in accordance with Section 3.03 of the Indenture, at the redemption
prices (expressed as percentages of principal amount) set forth below, plus
accrued and unpaid interest thereon to the redemption date, if redeemed during
the 12-month period beginning on March 15 of the years indicated below: 

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
  104.438

  	
  %

  
	
  2008

  	
   

  	
  102.219

  	
  %

  
	
  2009 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

(d)                                 Any
prepayment pursuant to this paragraph shall be made pursuant to the provisions
of Sections 3.01 through 3.06 of the Indenture.

 

6.                                       Mandatory Redemption.  Except as set forth in Sections 4.12 and
4.18 of the Indenture, the Company shall not be required to make mandatory
redemption or sinking fund payments with respect to the Notes.

 

7.                                       Repurchase at Option of Holder.

 

(a)                                  Upon
the occurrence of a Change of Control, the Company shall, within 10 days of a
change of control, make an offer, pursuant to the procedures set forth in
Section 3.09 of the Indenture, to all Holders to repurchase all or any portion
(equal to $1,000 or an integral multiple of $1,000) of such Holder’s Notes at a
purchase price, in cash, equal to 101% of the aggregate principal amount of the
Notes repurchased, plus accrued and unpaid interest on the Notes repurchased to
the Purchase Date.

 

(b)                                 If
Parent Guarantor or a Restricted Subsidiary consummates any Asset Sales, Parent
Guarantor shall not be required to apply
any Net Proceeds to repurchase Notes in accordance with the Indenture until the
aggregate Excess Proceeds from all Asset Sales following the date the Notes are
first issued exceeds $15.0 million.
Thereafter, the Company shall make an Asset Sale Offer to all Holders of Notes
and other Indebtedness that ranks by its terms equally in right of payment with
the Notes and the terms of which contain substantially similar requirements
with respect to the application of proceeds from sales of assets or in
connection with securitizations as are set forth in the Indenture to
purchase on a proportional basis the maximum principal amount of Notes, that is
an integral multiple of $1,000, that may be purchased out of the Excess
Proceeds, at an offer price in cash equal to 

 

 

100% of the principal amount of the Notes plus accrued and unpaid
interest thereon, if any, to the Purchase Date in accordance with the
procedures set forth in the Indenture. 
To the extent that the aggregate amount of Notes and other Indebtedness
tendered under such Asset Sale Offer is less than the Excess Proceeds, any
remaining Excess Proceeds may be used for any purpose not otherwise prohibited
by the Indenture, including general corporate purposes.  If the aggregate principal amount of Notes
surrendered by Holders thereof exceeds the amount of Excess Proceeds available
for purchases of such Notes, the Trustee shall select the Notes to be purchased
in the manner set forth in Section 3.02 of the Indenture.

 

8.                                       Notice of Redemption. 
Notices of redemption shall be mailed at least 30 days but not more than 60
days before the redemption date to each Holder whose Notes are to be redeemed
at its registered address.  Notes in denominations larger than $1,000 may
be redeemed in part but only in integral multiples of $1,000, unless all of the
Notes held by a Holder are to be redeemed.  On and after the redemption
date interest shall cease to accrue on Notes or portions thereof called for
redemption.

 

9.                                       Denominations, Transfer, Exchange. 
The Notes are in registered form without coupons in denominations of $1,000 and
integral multiples of $1,000.  This Note shall represent the aggregate
principal amount of outstanding Notes from time to time endorsed hereon and the
aggregate principal amount of Notes represented hereby may from time to time be
reduced or increased, as appropriate, to reflect exchanges and redemptions.  The transfer of Notes may be registered and
Notes may be exchanged as provided in the Indenture.  The Registrar and
the Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay
any taxes and fees required by law or permitted by the Indenture.  The Company need not exchange or register
the transfer of any Note or portion of a Note selected for redemption, except
for the unredeemed portion of any Note being redeemed in part.  Also, the
Company need not exchange or register the transfer of any Notes for a period of
15 days before a selection of Notes to be redeemed or during the period between
a record date and the corresponding Interest Payment Date.

 

10.                                 Persons Deemed Owners. 
The registered Holder of a Note may be treated as its owner for all purposes.

 

11.                                 Amendment, Supplement and Waiver. 
Subject to certain exceptions, the Company and the Trustee may amend or
supplement the Indenture or the Notes with the consent of the Holders of at
least a majority in principal amount of the Notes, including Additional Notes,
if any then outstanding, voting as a single class (including consents obtained
in connection with a purchase of or tender offer or exchange offer for the
Notes), and, subject to Sections 6.04 and 6.07 of the Indenture, any existing
Default or Event of Default (except a continuing Default or Event of Default
(i) in the payment of principal, premium, if any, interest, if any, on the
Notes and (ii) in respect of a covenant or provision which under the Indenture
cannot be modified or amended without the consent of the Holder of each Note
affected by such modification or amendment) or compliance with any provision of
the Indenture or the Notes may be waived with the consent of the Holders of at
least a majority in principal amount of the Notes, including Additional Notes,
if any, then outstanding voting as a single class (including consents obtained
in connection with a purchase of or tender offer or exchange offer for the
Notes).  Without the consent of any
Holder, the Company and the Trustee may amend or supplement the Indenture or
the Notes to (a) cure any ambiguity, defect or inconsistency; (b) provide for
uncertificated Notes in addition to or in place of certificated Notes (provided
that the uncertificated Notes are issued in registered form for purposes of
Section 163(f) of the Code, or in a manner such that the uncertificated Notes
are described in Section 163(f)(2)(B) of the Code); (c) provide for the
assumption of the obligations of the Company or any Guarantor to Holders in the
case of a merger, consolidation or sale of all or substantially all of the
assets of the Company or any Guarantor; (d) make any change that would provide
any additional rights or benefits to the Holders or that does not adversely
affect the legal rights under the Indenture of any such Holder; (e) release
Guarantors from guarantees as provided or permitted by the terms of the
Indenture; or (f) comply with requirements of the SEC in order to effect or
maintain the qualification of the Indenture under the TIA.

 

12.                                  Defaults and Remedies.  Each of the following constitutes an Event
of Default with respect to the Notes: 
(i) default for 30 days in the payment when due of interest,
if any, on the Notes; (ii) default in payment when due of the principal of
or premium, if any, on the Notes at maturity, upon redemption or otherwise,
including the failure to make a payment to purchase Notes tendered pursuant to
a Change of Control Offer or an Asset Sale Offer; (iii) failure by Parent
Guarantor or any Restricted Subsidiary to comply with the provisions of Section
5.01 of the 

 

 

Indenture; (iv) failure by Parent Guarantor or any Restricted
Subsidiary for 30 days in the performance of any other covenant, warranty
or agreement in the Indenture or the Notes after written notice shall have been
given to the Company by the Trustee or to the Company and the Trustee by
Holders of at least 25% in principal amount of the Notes then outstanding; (v) for
so long as any of the Existing Notes remain outstanding, a payment default
resulting from the failure to pay at maturity any Indebtedness of Parent
Guarantor or any Restricted Subsidiary in an aggregate principal amount greater
than $10.0 million; (vi) a default under any Indebtedness by Parent
Guarantor or any Restricted Subsidiary that results in acceleration of the
maturity of such Indebtedness, or failure to pay any such Indebtedness at
maturity, in an aggregate amount greater than $10.0 million;
(vii) failure by Parent Guarantor or any Restricted Subsidiary to pay
final judgments rendered against them (other than judgment liens without
recourse to any of Parent Guarantor’s or any Restricted Subsidiary’s assets or
property other than assets or property securing Non-Recourse Indebtedness)
aggregating in excess of $20.0 million, which judgments are not paid,
discharged or stayed for a period of 60 days, except for judgments as to
which a reputable insurance company has accepted full liability; (viii) except
as permitted by the Indenture, any guarantee by an Additional Guarantor that is
a Significant Subsidiary with respect to the Notes shall be held in a judicial
proceeding to be unenforceable or invalid or shall cease for any reason to be
in full force and effect or Parent Guarantor or an Additional Guarantor that is
a Significant Subsidiary (in both cases, including its successors and assigns),
or any Person acting on behalf of such Guarantor (or its successors and
assigns), shall deny or disaffirm its obligations or shall fail to comply with
any obligations under its guarantee; and (h) certain events of bankruptcy,
insolvency or reorganization affecting the Company, Parent Guarantor or any of
its Significant Subsidiaries as set forth in the Indenture.

 

If any Event of Default (other the Events of Default
arising from certain events of bankruptcy or insolvency) occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare all the Notes to be due and
payable.  Notwithstanding the foregoing,
in the case of an Event of Default arising from certain events of bankruptcy or
insolvency described in the Indenture, all outstanding Notes shall become due
and payable immediately without further action or notice.  Holders may not enforce the Indenture or the
Notes except as provided in the Indenture. 
Subject to certain limitations, Holders of a majority in aggregate principal
amount of the then outstanding Notes may direct the Trustee in its exercise of
any trust or power. The Trustee may withhold from Holders notice of any
continuing Default or Event of Default (except a Default or Event of Default
relating to the payment of principal, premium, if any, or interest, if any) if
and so long as a committee of its Responsible Officers in good faith determines
that withholding notice is in the interests of the Holders.  The Holders of a majority in aggregate
principal amount of the Notes then outstanding by notice to the Trustee may on
behalf of the Holders of all of the Notes waive any existing Default or Event
of Default and its consequences under the Indenture except a continuing Default
or Event of Default or (i) in the payment of the principal of, or interest on,
the Notes and (ii) in respect of a covenant or provision which under the
Indenture cannot be modified or amended without the consent of the Holder of
each Note affected by such modification or amendment).  The Company is required to deliver to the
Trustee annually a statement regarding compliance with the Indenture, and the
Company is required upon becoming aware of any Default or Event of Default, to
deliver to the Trustee a statement specifying such Default or Event of Default.

 

13.                                 Trustee Dealings with Company.  Subject to certain limitations, the Trustee
in its individual or any other capacity may become the owner or pledgee of
Notes and may otherwise deal with the Company or any Affiliate of the Company
with the same rights it would have if it were not Trustee.

 

14.                                 No Recourse Against Others. 
No past, present or future director, officer, employee, incorporator or
stockholder of the Company or of any Guarantor, as such, shall have any
liability for any obligations of the Company or any Guarantor under the
Indenture, the Notes, the guarantees or for any claim based on, in respect of,
or by reason of, such obligations or their creation.  Each Holder by
accepting a Note waives and releases all such liability.

 

15.                                 Authentication. 
This Note shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

 

16.                                 Abbreviations. 
Customary abbreviations may be used in the name of a Holder or an assignee,
such as:  TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act).

 

 

17.                                 Additional Rights of Holders of
Restricted Global Notes and Restricted Definitive Notes.  In addition to the rights provided to
Holders of Notes under the Indenture, Holders of Restricted Global Notes and
Restricted Definitive Notes that are Initial Notes shall have all the rights
set forth in the Registration Rights Agreement, dated as of March 19,
2003, among the Company, Parent Guarantor and the parties named on the
signature pages thereto or, in the case of Additional Notes, Holders of
Restricted Global Notes and Restricted Definitive Notes shall have the rights
set forth in one or more Registration Rights Agreements, if any, among the
Company and the other parties thereto, relating to rights given by the Company
to the purchasers of such Additional Notes.

 

18.                                 CUSIP Numbers.  Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on the Notes and has directed the Trustee to
use CUSIP numbers in notices of redemption or notices of Offers to Purchase as
a convenience to Holders.  No representation
is made as to the correctness of such numbers either as printed on the Notes or
as contained in any notice of redemption or notice of an Offer to Purchase and
reliance may be placed only on the other identification numbers printed thereon
and any such redemption or Offer to Purchase shall not be affected by any
defect in or omission of such numbers.

 

The Company shall furnish to any Holder upon written
request and without charge a copy of the Indenture.  Requests may be made to: La Quinta Properties, Inc., 909 Hidden
Ridge, Suite 600, Irving, Texas  75038,
Attention:  Corporate Secretary.

 

19.                            Governing Law.  The internal law of the State of New York
shall govern and be used to construe this Note without giving effect to
applicable principals of conflicts of law to the extent that the application of
the laws of another jurisdiction would be required thereby.

 

 

Option of Holder to Elect
Purchase

 

If you want to elect to have this Note purchased by the Company
pursuant to Section 4.12 or 4.18 of the Indenture, check the box below:

 

o                                    Section
4.12

 

o                                    Section
4.18

 

If you want to elect to have only part of this Note purchased by the
Company pursuant to Section 4.12 or Section 4.18 of the Indenture, state the
amount you elect to have purchased:  $                                                               

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the face of
  this Note)

  
	
   

  	
   

  
	
   

  	
  Tax Identification No.:

  
	
  :

  	
   

  
	
   

  	
   

  
	
   

  	
  SIGNATURE GUARANTEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signatures must be guaranteed by an “eligible
  guarantor institution” meeting the requirements of the Registrar, which
  requirements include membership or participation in the Security Transfer
  Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
  as may be determined by the Registrar in addition to, or in substitution for,
  STAMP, all in accordance with the Securities Exchange Act of 1934, as
  amended.

  

 

 

Assignment
Form

 

To assign this Note, fill in the form below:

 

	
  (I) or (we) assign and transfer this Note to

  	
   

  
	
   

  	
   

  
	
  Insert assignee’s
  social security or other tax I.D. no.)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Print or type
  assignee’s name, address and zip code)

  	
   

  
	
   

  	
   

  
	
  and irrevocably appoint

  	
   

  	
   

  	
   

  
	
   

  	
  as agent to transfer this Note on the books of the
  Company.  The agent may substitute another to act for him.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the face of
  this Note)

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  .

  	
  Signatures must be guaranteed by an “eligible
  guarantor institution” meeting the requirements of the Registrar, which
  requirements include membership or participation in the Security Transfer
  Agent Medallion Program (“STAMP”) or such other “signature guarantee program”
  as may be determined by the Registrar in addition to, or in substitution for,
  STAMP, all in accordance with the Securities Exchange Act of 1934, as amended

  	
   

  
										

 

 

SCHEDULE OF EXCHANGES OF
INTERESTS IN THE GLOBAL NOTE

 

The following exchanges of a part of this Global Note
for an interest in another Global Note or for a Definitive Note, or exchanges
of a part of another Global Note or Definitive Note for an interest in this
Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of

  decrease in

  Principal Amount

  of this Global Note

  	
   

  	
  Amount of
  increase

  in Principal Amount

  of this Global Note

  	
   

  	
  Principal
  Amount

  of this Global Note

  following such

  decrease (or

  increase)

  	
   

  	
  Signature
  of

  authorized signatory

  of Trustee or

  Note CustodianExhibit 4.4

 

LA QUINTA CORPORATION

LA QUINTA PROPERTIES, INC.

 

SECOND AMENDMENT

TO CREDIT AGREEMENT

 

This SECOND
AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is dated as of
March 5, 2003 and entered into by and among La Quinta Corporation (formerly known
as Meditrust Operating Company), a Delaware corporation (“La Quinta”), La Quinta Properties, Inc.
(formerly known as Meditrust Corporation), a Delaware corporation (“La Quinta Properties,” and together with La
Quinta, the “Borrowers”), the
financial institutions listed on the signature pages hereof (“Lenders”),
Canadian Imperial Bank of Commerce, as administrative agent for Lenders (“Administrative  Agent”), and for purposes of
Section 4 hereof, the Credit Support Parties (as defined in Section 4 hereof) listed
on the signature pages hereof, and is made with reference to that certain
Credit Agreement dated as of June 6, 2001, as amended by the First
Amendment to the Credit Agreement dated as of March 29, 2002
(collectively, the “Credit Agreement”), by and among Borrowers,
Lenders and Administrative Agent. 
Capitalized terms used herein without definition shall have the same
meanings herein as set forth in the Credit Agreement.

 

RECITALS

 

WHEREAS, Borrowers
and Lenders desire to amend the Credit Agreement to (i) amend certain of the
covenants set forth therein and certain related definitions; and (ii) make
certain other amendments as set forth below;

 

NOW, THEREFORE, in
consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto agree as follows:

 

Section 1.                                          AMENDMENTS
TO THE CREDIT AGREEMENT

 

1.1                               Amendments to Section 1:  Provisions Relating to Defined Terms

 

A.                                    Subsection 1.1 of
the Credit Agreement is hereby amended by deleting the definition of “Consolidated
EBITDA” and replacing it with the following definition:

 

“‘Consolidated
EBITDA’ means, for any period, without duplication the sum of the
amounts for such period of (i) Consolidated Net Income,
(ii) Consolidated Net Interest Expense, (iii) provisions for taxes
based on income, (iv) total depreciation expense, (v) total amortization
expense (including amortization of restricted stock), (vi) other non-recurring
and non-cash items reducing Consolidated Net Income, (vii) Restructuring
Charges, (viii) deferred financing amounts, (ix) FASB 133 adjustments and (x)
non-cash expense related to stock options, less any non-recurring and
non-cash items increasing Consolidated Net Income, all of the

 

1

 

foregoing as determined on a consolidated basis for Borrowers and their
Subsidiaries (including without limitation discontinued operations) in
conformity with GAAP and to be calculated on a Pro Forma Basis.”

 

B.                                    Subsection 1.1 of
the Credit Agreement is hereby amended by adding the following definitions in
alphabetical order:

 

“‘Fixed
Income Refinancing’ means the issuance by any Borrower of
Refinancing Indebtedness in an original principal amount of not less than
$150,000,000 in the aggregate, provided that the net proceeds of such
senior notes are (A) either applied to the redemption of Borrowers’ then
outstanding 7.82% Senior Notes due September 2026 and Borrowers’ 7.51% Medium
Term Notes due 2003 or, pending such application, are held available by
Borrowers for such purpose as Cash and/or Cash Equivalents and (B) to the
extent such net proceeds exceed the outstanding aggregate principal amount of
Borrowers’ 7.82% Senior Notes due September 2026 and Borrowers’ 7.51% Medium
Term Notes due 2003, such net proceeds are applied to the repayment, repurchase
or redemption of other Senior Notes in accordance with subsection 7.5B or,
pending such application, are held available by Borrowers for such purpose as
Cash and/or Cash Equivalents.

 

‘Second Amendment
Effective Date’ means the date on which the Second
Amendment to Credit Agreement dated as of March 5, 2003, by and among
Borrowers, Administrative Agent, Collateral Agent and Lenders becomes effective
in accordance with its terms.”

 

1.2                                 Amendments
to Section 2.  Amounts and Terms of
Commitments and Loans

 

A.                                    Subsection 2.1A(ii)
of the Credit Agreement is hereby amended by (a) adding as a third
sentence in the first paragraph of such subsection the following:

 

“In addition,
on the Second Amendment Effective Date, the aggregate amount of the Revolving
Loan Commitments of the Lenders shall be reduced to $175,000,000.”

 

; and (b) by adding at the end
of subclause (ii) in the second paragraph of subsection 2.1A(ii) the following:

 

“provided that for purposes of making the determinations
provided for in this clause (ii), Cash and Cash Equivalents which constitute
proceeds of any Fixed Income Refinancing and which are being held by the
Borrowers pending the application of such proceeds to the repayment, repurchase
or redemption of Senior Notes (including without limitation the Borrowers’
7.51% Medium Term Notes due 2003), in accordance with the definition of Fixed
Income Refinancing shall be excluded from such determinations,”

 

B.                                    Subsection
2.1A(iii) of the Credit Agreement is hereby amended by deleting it in its
entirety and substituting the following therefor:

 

2

 

 

“(iii)                         Intentionally Omitted.”

 

C.                                    Subsection
2.4B(iii)(b) of the Credit Agreement is hereby amended by deleting it in its entirety
and substituting the following therefor:

 

“(b)                             Prepayments
and Revolving Loan Commitment Reductions Due to Issuance of Debt or Equity
Securities.  On the first Business
Day after the date of receipt by Borrowers or any Subsidiary of Net Securities Proceeds other than proceeds
from the Fixed Income Refinancing, Borrowers shall prepay the Revolving
Loan by an amount equal to such Net Securities Proceeds (without any reduction
of the Revolving Loan Commitments).  On
the First Business Day after the consummation of the Fixed Income Refinancing,
the Revolving Loan Commitment shall be automatically and permanently reduced to
$150,000,000 and in the event that the Fixed Income Refinancing is for an
amount greater than $150,000,000, then the Revolving Loan Commitment shall be
automatically and permanently further reduced by an amount equal to the lesser
of (x) the amount by which the Fixed Income Refinancing exceeds $150,000,000
and (y) $25,000,000 but in no event shall the Revolving Loan Commitment be
reduced pursuant to this sentence to an amount which is less than $125,000,000,
and, in either case, to the extent that the Borrowers’ outstanding Revolving
Loan Exposure exceeds the aggregate Revolving Loan Commitment, as so reduced,
Borrowers shall prepay such Revolving Loans.”

 

D.                                    Subsection
2.4B(iii)(d) of the Credit Agreement is hereby amended by adding at the end of
clause (2) thereof the following:

 

“provided
that for purposes of making the determinations provided for in this clause (2),
Cash and Cash Equivalents which constitute proceeds of any Fixed Income
Refinancing and which are being held by the Borrowers pending the application
of such proceeds to the repayment, repurchase or redemption of Senior Notes
(including without limitation the Borrowers’ 7.51% Medium Term Notes due 2003),
in accordance with the definition of Fixed Income Refinancing shall be excluded
from such determinations,”

 

E.                                      Subsection 2.9B
of the Credit Agreement is hereby amended (a) by deleting the phrase “Borrowers
may, in their sole discretion” from the first sentence thereof and by
substituting the phrase “(1) Prior to the Fixed Income Refinancing, Borrowers
may, in their sole discretion” and (b) by adding at the end of such subsection
the following:

 

“(2)                            Upon,
and subject to the consummation of, the Fixed Income Refinancing, the Borrowers
hereby elect to extend the Revolving Loan Commitment Termination Date to
January 4, 2004.  Such election
shall automatically and unconditionally take effect upon the date of the
consummation of the Fixed Income Refinancing.”

 

F.                                      Subsection
2.9B(i) of the Credit Agreement is hereby amended by deleting it in its
entirety and substituting the following therefor:

 

3

 

“(i)                               On,
or no earlier than 30 days before, April 30, 2003, Borrowers may elect to
extend the Revolving Loan Commitment Termination Date to December 31, 2003
by providing the Extension Notice to the Administrative Agent; and”

 

G.                                    Subsection 2.9B(ii)
of the Credit Agreement is hereby amended by deleting the date “April 30, 2004”
each place it appears and substituting therefor the date “January 4,
2004”.

 

H.                                    Subsection
2.9B(iii) of the Credit Agreement is hereby amended by deleting it in its
entirety and substituting the following therefor:

 

“(iii)                         The
notice of extension contemplated by Section 2.9B(ii) hereof shall be
accompanied by an Officers’ Certificate certifying that either the refinancing
contemplated by clause (x) of subparagraph (ii) above has occurred or that
Borrowers have the Liquidity required pursuant to clause (y) of subparagraph
(ii) above and, in such event, setting out the calculations establishing such
Liquidity in reasonable detail.”

 

1.3                               Amendments
to Section 7.  Borrowers’ Negative
Covenants

 

A.                                    Subsection 7.1(v)
of the Credit Agreement is hereby amended by deleting it in its entirety and
substituting the following therefor:

 

“(v)                           Borrowers
may remain liable with respect to the Senior Notes and may incur unsubordinated
Indebtedness secured on the same basis as the Indebtedness so refinanced and
Subordinated Indebtedness to refinance all or any of the Senior Notes, provided
that (1) the obligor on such refinancing Indebtedness is the same as the
obligor on the Indebtedness so refinanced and that in the case of the Fixed
Income Refinancing La Quinta Corporation may guarantee such Fixed Income
Refinancing Indebtedness pursuant to a guarantee containing customary terms and
conditions, (2) all of the proceeds thereof (net of reasonable and customary
fees, costs and expenses) shall be applied to the repayment, repurchase or
redemption of such Senior Notes or, in the case of the Fixed Income
Refinancing, shall be held by the Borrowers as Cash and/or Cash Equivalents,
pending application to such repayment, repurchase or redemption of Senior
Notes, (3) the covenants of such refinancing Indebtedness shall be less
restrictive than those in this Agreement, (4) such covenants shall be on
generally prevailing market terms available to the Borrowers for such
refinancing Indebtedness, and (5) the maturity date thereof or any date on
which such refinancing Indebtedness may be required to be repurchased at the
option of the holder thereof shall not be earlier than November 30, 2005
(collectively, the “Refinancing Indebtedness”);”

 

B.                                    Subsection 7.2A(ii) of the Credit Agreement
is hereby amended by deleting it in its entirety and substituting the following
therefor:

 

“(ii)                            Liens
granted pursuant to the Collateral Documents, including without limitation,
Liens which equally and ratably secure (1) to the extent required by the Senior
Note Documents, the aggregate principal amount of the Senior Notes

 

4

 

outstanding on
the date hereof including, without limitation, the 7.114% Senior Notes, and (2)
the Fixed Income Refinancing;”

 

C.                                    Subsection 7.3(i) of the Credit
Agreement is hereby amended by deleting it in its entirety and substituting the
following therefor:

 

“(i)                               Borrowers
and their Subsidiaries may make and own Investments in Joint Ventures and
Franchise Arrangements in Borrowers’ and their Subsidiaries’ ordinary course of
business; provided (A) Borrowers may continue to own the Investments in
Joint Ventures and Franchise Agreements held by them on December 31, 2002, to
the extent such Investments were permitted under the Credit Agreement as in
effect prior to the Second Amendment Effective Date, and (B) from
January 1, 2003, through the Revolving Loan Commitment Termination Date,
Borrowers may make and own additional Investments in Joint Ventures and Franchise
Arrangements provided that such Investments shall not exceed $10,000,000
in the aggregate, and to the extent that Borrowers have either repaid
Borrowers’ 7.82% Senior Notes due September 2026 and Borrowers’ 7.51% Medium
Term Notes due 2003 or Borrowers have Cash and/or Cash Equivalents in an amount
not less than the then outstanding aggregate amount of Borrowers’ 7.82% Senior
Notes due September 2026 and Borrowers’ 7.51% Medium Term Notes due 2003, such
Investments shall not exceed $20,000,000 in the aggregate, provided that
proceeds of Revolving Loans borrowed under this Agreement (excluding Letters of
Credit and amounts borrowed under this Agreement to reimburse drawings pursuant
to Letters of Credit) shall not be used to fund such Investments in Joint
Ventures and Franchise Arrangements in excess of $10,000,000;”

 

D.                                    Subsection 7.3 of
the Credit Agreement is hereby amended by adding a new clause (xi) after clause
(x) thereof as follows:

 

“(xi)                          Borrowers
and their respective Subsidiaries may make and own Investments in securities
issued by the Meditrust Exercisable Put Option Securities Trust to the extent
owned as of the Second Amendment Effective Date or as permitted by clause
(B)(ii) of subsection 7.5B hereof.”

 

E.                                      Subsection
7.4(iii) of the Credit Agreement is hereby amended by deleting it in its
entirety and substituting the following therefor:

 

“(iii)                         Borrowers
and their Subsidiaries may become and remain liable with respect to Contingent
Obligations in respect of any Indebtedness of Borrowers or any of the
Subsidiaries permitted by subsection 7.1; provided that Subsidiaries of
Borrowers may not become liable in respect of Indebtedness of Borrowers under
subsections 7.1(v) and 7.1(vi); provided  further notwithstanding
the foregoing, La Quinta Corporation may become and remain liable with respect
to Contingent Obligations in respect of any Fixed Income Refinancing;”

 

5

 

F.                                      Subsection
7.5A(iii) of the Credit Agreement is hereby amended by deleting it in its
entirety and substituting the following therefor:

 

“(iii)                         in
addition to the payments under clauses (i) and (ii) above, Borrowers may
declare and pay cash dividends and make distributions on account of or
repurchase any of their capital stock including without limitation any paired
share repurchases; provided (A) except as permitted pursuant to
clause (B) below, from January 1, 2003, through the Revolving Loan
Commitment Termination Date, the aggregate amount thereof shall not exceed
$5,000,000; (B) to the extent that Borrowers have either repaid Borrowers’
7.82% Senior Notes due September 2026 and Borrowers’ 7.51% Medium Term Notes
due 2003 or Borrowers have Cash and/or Cash Equivalents in an amount not less
than the then outstanding aggregate amount of Borrowers’ 7.82% Senior Notes due
September 2026 and Borrowers’ 7.51% Medium Term Notes due 2003, such aggregate
amount shall not exceed $20,000,000, provided, that proceeds of
Revolving Loans borrowed under this Agreement (excluding Letters of Credit and
amounts borrowed under this Agreement to reimburse drawings pursuant to Letters
of Credit) shall not be used to fund such dividends, distributions or
repurchases in excess of $5,000,000;”

 

G.                                    Subsection 7.5B of
the Credit Agreement is hereby amended by deleting it in its entirety and
substituting the following therefor:

 

“Borrowers
shall not, and shall not permit any of their Subsidiaries to, directly or
indirectly, prepay, redeem, repurchase, retire, defease or make any similar
payment with respect to any Indebtedness (other than Indebtedness under this
Agreement); provided (A) that if no Potential Event of Default or Event
of Default shall have occurred and be continuing or would arise as a result
thereof, Borrowers may prepay, redeem, repurchase, retire, defease or make
similar payments with respect to (i) Borrowers’ 7.82% Senior Notes due
September 2026, to the extent such holders have exercised their right to
require the Borrowers to repurchase such notes; and (ii) Borrowers’ 7.51%
Medium Term Notes due 2003, (B) after the consummation of the Fixed Income
Refinancing, Borrowers may prepay, redeem, repurchase, retire, defease or make
similar payments with respect to (i) Borrowers’ 7.25% Senior Notes due March
2004, (ii) the securities of the Meditrust Exercisable Put Option Securities
Trust which represent beneficial interests in such Trust which holds, as its
sole or principal asset, the Borrowers’ 7.114% Notes due August 2011, which
securities will not be thereafter sold or transferred by Borrowers, (iii)
Borrowers’ 7.40% Notes due September 2005, (iv) Borrowers’ 7.82% Senior Notes
due September 2026 and (v) Borrowers’ 7.51% Medium Term Notes due 2003; provided,
however, the Borrowers may not prepay, redeem, repurchase, retire,
defease or make similar payments under the foregoing subclauses (B)(i), (ii) or
(iii) if (X) any amounts are then outstanding under the Revolving Loan
Commitments (excluding Letters of Credit and amounts borrowed under this
Agreement to reimburse drawings pursuant to Letters of Credit), and (Y) the
Borrowers have not repaid Borrowers’ 7.82% Senior Notes due September 2026 and
Borrowers’ 7.51% Medium Term Notes

 

6

 

due 2003, or
Borrowers are not maintaining Cash and/or Cash Equivalents in an amount which
is not less than the then outstanding aggregate amount of Borrowers’ 7.82%
Senior Notes due September 2026 and Borrowers’ 7.51% Medium Term Notes due
2003.”

 

H.                                    Subsection 7.6A
of the Credit Agreement is hereby amended by deleting it in its entirety and
substituting the following therefor:

 

“A.                             Maximum
Total Leverage Ratio.  Borrowers
shall not permit the Total Leverage Ratio as of the last day of any Fiscal
Quarter set forth below to exceed the correlative ratio indicated below:

 

	
  Period

  	
   

  	
  Maximum Total Leverage

  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4th Fiscal Quarter, Fiscal Year
  2002

  	
   

  	
  4.60:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1st Fiscal Quarter, Fiscal Year 2003

  	
   

  	
  4.85:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2nd Fiscal Quarter, Fiscal Year 2003 and
  thereafter

  	
   

  	
  5.00:1.00

  	
   

  

 

I.                                         Subsection 7.6B
of the Credit Agreement is hereby amended by deleting it in its entirety and
substituting the following therefor:

 

“B.                             Intentionally
Omitted.”

 

J.                                      Subsection 7.6C
of the Credit Agreement is hereby amended by deleting it in its entirety and
substituting the following therefor:

 

“C.                             Minimum
Interest Coverage Ratio.  Borrowers
shall not permit the ratio of (i) Consolidated EBITDA to (ii) Consolidated
Net Interest Expense for any four consecutive Fiscal Quarter period ending on
the last day of any Fiscal Quarter to be less than: (a) so long as no Fixed
Income Refinancing has been consummated, 2.50:1.00, (b) if a Fixed Income
Refinancing in a principal amount of at least $150,000,000 but less than
$200,000,000 has been consummated, 2.30:1.00, (c) if a Fixed Income Refinancing
in a principal amount of at least $200,000,000 but less than $250,000,000 has
been consummated, 2.20:1.00 and (d) if a Fixed Income Refinancing in a
principal amount of at least $250,000,000 has been consummated, 2.10:1.00.”

 

K.                                    Subsection 7.6D
of the Credit Agreement is hereby amended by deleting it in its entirety and
substituting the following therefor:

 

“D.                             Minimum
Fixed Charge Coverage Ratio. 
Borrowers shall not permit the ratio of (i) Consolidated EBITDA minus
the Capital Expenditure Reserve to (ii)  Fixed Charges for any four
consecutive Fiscal Quarter period ending on the

 

7

 

last day of any Fiscal Quarter to be less than (a) so long as no Fixed
Income Refinancing has been consummated, 1.55:1.00, (b) if a Fixed Income
Refinancing in a principal amount of at least $150,000,000 but less than
$200,000,000 has been consummated, 1.45:1.00, (c) if a Fixed Income Refinancing
in a principal amount of at least $200,000,000 but less than $250,000,000 has
been consummated, 1.40:1.00 and (d) if a Fixed Income Refinancing in a
principal amount of at least $250,000,000 has been consummated, 1.35:1.00.”

 

L.                                     Subsection 7.8A
of the Credit Agreement is hereby amended by deleting it in its entirety and
substituting the following therefor:

 

“A.                              Borrowers shall not, and
shall not permit their Subsidiaries to, make or incur Capital Expenditures from
January 1, 2003 through to the Revolving Loan Commitment Termination Date in
excess of $80,000,000 (the “Annual CapEx Amount”); provided (A),
to the extent that Borrowers have either repaid Borrowers’ 7.82% Senior Notes
due September 2026 and Borrowers’ 7.51% Medium Term Notes due 2003 or Borrowers
have Cash and/or Cash Equivalents in an amount not less than the then
outstanding aggregate amount of Borrowers’ 7.82% Senior Notes due September
2026 and Borrowers’ 7.51% Medium Term Notes due 2003, the Annual CapEx Amount
shall be increased to $95,000,000 so long as no proceeds of Revolving Loans
borrowed under this Agreement (excluding Letters of Credit and amounts borrowed
under this Agreement to reimburse drawings pursuant to Letters of Credit) are
used to fund such Capital Expenditures in excess of $80,000,000 and (B) that
Permitted Reinvestment Capital Expenditures and Investments shall not be
included in Capital Expenditures for purposes of determining the Annual CapEx
Amount.”

 

1.4                               Amendments
to Pledge Agreement Schedules

 

A.                                    Borrowers, Credit
Support Parties, Collateral Agent and Lenders hereby agree that upon
consummation of the Fixed Income Refinancing, Borrowers shall deliver a new
Schedule B to the Pledge Agreement which new Schedule B shall supplement
Schedule B as delivered on the Closing Date by adding a description of the
Indebtedness issued in the Fixed Income Refinancing (the “New Senior Notes”) and the indenture
pursuant to which such Indebtedness has been issued (the “New Senior Indenture”).  Upon delivery of such supplemented Schedule
B, Collateral Agent is hereby authorized to attach such supplemented Schedule B
to the Pledge Agreement and the New Senior Notes shall constitute “Senior
Notes” and “Note Obligations” under the Pledge Agreement and the New Senior
Indenture shall constitute a “Senior Indenture” under the Pledge Agreement for
all purposes of the Pledge Agreement to the same extent as if originally
described on Schedule B to the Pledge Agreement on the Closing Date.  Upon request of the Borrowers, Collateral
Agent will enter into such additional documents or agreements as may be
necessary to implement providing such New Senior Notes with equal and ratable
security in the Collateral, the form and substance of such additional documents
or agreements to be reasonably satisfactory to Collateral Agent.  The costs and expenses related to such
additional documents or agreements shall be borne by the Borrowers.

 

8

 

1.5                               Compliance
Certificate

 

A.                                    Upon the occurrence
of the Second Amendment Effective Date, Borrowers and Administrative Agent
agree to amend Exhibit VI (Form of Compliance Certificate) to the extent
necessary to reflect the covenant amendments effected by this Amendment.

 

Section 2.                                          CONDITIONS
TO EFFECTIVENESS

 

Section 1
of this Amendment shall become effective only upon the satisfaction of all of
the following conditions precedent (the date of satisfaction of such conditions
being referred to herein as the “Second
Amendment
Effective Date”):

 

A.                                    On or before the
Second Amendment Effective Date, Borrowers shall deliver to Lenders (or to
Administrative Agent for Lenders) the following, each, unless otherwise noted,
dated the Second Amendment Effective Date:

 

1.                                       Signature
and incumbency certificates of each Loan Parties’ officers executing this
Amendment; and

2.                                       Copies
of this Amendment executed by Borrowers and the Credit Support Parties.

 

B.                                    Requisite Lenders
shall have executed this Amendment.

 

C.                                    The Borrowers shall
have paid to each Lender that executes and returns this Amendment to the
Administrative Agent prior to 5:00 p.m. Eastern Time on March 7, 2003, a
fee equal to 0.125% of such Lender’s Revolving Loan Commitment after giving
effect to the Revolving Loan Commitment reduction effected hereby.

 

D.                                    On
or before the Second Amendment Effective Date, all corporate and other
proceedings taken or to be taken in connection with the transactions
contemplated hereby and all documents incidental thereto not previously found
acceptable by Administrative Agent, acting on behalf of Lenders, and its
counsel shall be satisfactory in form and substance to Administrative Agent and
such counsel, and Administrative Agent and such counsel shall have received all
such counterpart originals or certified copies of such documents as
Administrative Agent may reasonably request.

 

Section 3.                                          BORROWERS’
REPRESENTATIONS AND WARRANTIES

 

In order to
induce Lenders to enter into this Amendment and to amend the Credit Agreement
in the manner provided herein, each Borrower represents and warrants to each
Lender that the following statements are true, correct and complete:

 

A.                                    Corporate
Power and Authority.  Each Loan
Party has all requisite corporate power and authority to enter into this
Amendment and to carry out the transactions contemplated by, and perform its
obligations under, the Credit Agreement as amended by this Amendment (the “Amended
Agreement”).

 

9

 

B.                                    Authorization
of Agreements.  The execution and
delivery of this Amendment and the performance of the Amended Agreement have
been duly authorized by all necessary corporate action on the part of each Loan
Party.

 

C.                                    No
Conflict.  The execution and
delivery by each Loan Party of this Amendment and the performance by each Loan
Party of the Amended Agreement do not and will not (i) violate any provision of
any law or any governmental rule or regulation applicable to any Loan Party,
the Certificate or Articles of Incorporation or Bylaws of any Loan Party or any
order, judgment or decree of any court or other agency of government binding on
any Loan Party, (ii) conflict with, result in a breach of or constitute (with
due notice or lapse of time or both) a default under any Contractual Obligation
of any Loan Party, (iii) result in or require the creation or imposition
of any Lien upon any of the properties or assets of any Loan Party (other than
Liens created under any of the Loan Documents in favor of Administrative Agent
on behalf of Lenders and the Senior Notes), or (iv) require any approval
of stockholders or any approval or consent of any Person under any Contractual
Obligation of any Loan Party.

 

D.                                    Governmental
Consents.  The execution and
delivery by each Loan Party of this Amendment and the performance by each Loan
Party of the Amended Agreement do not and will not require any registration
with, consent or approval of, or notice to, or other action to, with or by, any
federal, state or other governmental authority or regulatory body.

 

E.                                      Binding
Obligation.  This Amendment and the
Amended Agreement have been duly executed and delivered by each Loan Party and
are the legally valid and binding obligations of each Loan Party, enforceable
against each Loan Party in accordance with their respective terms, except as
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or limiting creditors’ rights generally or by equitable
principles relating to enforceability.

 

F.                                      Incorporation
of Representations and Warranties From Credit Agreement.  The representations and warranties contained
in Section 5 of the Credit Agreement are and will be true, correct and
complete in all material respects on and as of the Second Amendment Effective
Date to the same extent as though made on and as of that date, except to the
extent such representations and warranties specifically relate to an earlier
date, in which case they were true, correct and complete in all material
respects on and as of such earlier date.

 

G.                                    Absence
of Default.  No event has occurred
and is continuing or will result from the consummation of the transactions
contemplated by this Amendment that would constitute an Event of Default or a
Potential Event of Default.

 

Section 4.                                          ACKNOWLEDGEMENT
AND CONSENT

 

Each Borrower
is a party to the Pledge Agreement and certain of the Collateral Documents, as
amended through the Second Amendment Effective Date, pursuant to which each
Borrower has created Liens in favor of Administrative Agent on certain
Collateral to secure the Obligations. 
The stock of each Subsidiary Guarantor is pledged under the Pledge
Agreement, each Subsidiary Guarantor is a party to the Subsidiary Guaranty and
certain of the Collateral Documents, in each case as amended through the Second
Amendment Effective Date, pursuant

 

10

 

to which each Subsidiary
Guarantor has (i) guarantied the Obligations and (ii)  created Liens
in favor of Administrative Agent on certain Collateral and pledged certain
Collateral to Administrative Agent to secure the obligations of such Subsidiary
Guarantor  under the Subsidiary
Guaranty.  Each Borrower and Subsidiary
Guarantor are collectively referred to herein as the “Credit Support Parties”, and
the Pledge Agreement and the Subsidiary Guaranty are collectively referred to
herein as the “Credit Support Documents”.

 

Each Credit
Support Party hereby acknowledges that it has reviewed the terms and provisions
of the Credit Agreement and this Amendment and consents to the amendment of the
Credit Agreement and Pledge Agreement effected pursuant to this Amendment.  Each Credit Support Party hereby confirms
that each Credit Support Document to which it is a party or otherwise bound and
all Collateral encumbered thereby will continue to guaranty or secure, as the
case may be, to the fullest extent possible the payment and performance of all
“Obligations” and “Secured Obligations,” as the case may be (in each case as
such terms are defined in the applicable Credit Support Document), including
without limitation the payment and performance of all such “Obligations” and
“Secured Obligations,” as the case may be, in respect of the Obligations of
each Borrower now or hereafter existing under or in respect of the Amended
Agreement and the Notes defined therein.

 

Each Credit
Support Party acknowledges and agrees that any of the Credit Support Documents
to which it is a party or otherwise bound shall continue in full force and
effect and that all of its obligations thereunder shall be valid and
enforceable and shall not be impaired or limited by the execution or
effectiveness of this Amendment.  Each Credit
Support Party represents and warrants that all representations and warranties
contained in the Amended Agreement and the Credit Support Documents to which it
is a party or otherwise bound are true, correct and complete in all material
respects on and as of the Second Amendment Effective Date to the same extent as
though made on and as of that date, except to the extent such representations
and warranties specifically relate to an earlier date, in which case they were
true, correct and complete in all material respects on and as of such earlier
date.

 

Each Credit
Support Party (other than the Borrowers) acknowledges and agrees that
(i) notwithstanding the conditions to effectiveness set forth in this
Amendment, such Credit Support Party is not required by the terms of the Credit
Agreement or any other Loan Document to consent to the amendments to the Credit
Agreement and Pledge Agreement effected pursuant to this Amendment and
(ii) nothing in the Credit Agreement, this Amendment or any other Loan
Document shall be deemed to require the consent of such Credit Support Party to
any future amendments to the Credit Agreement.

 

Section 5.                                          MISCELLANEOUS

 

A.                                    Reference
to and Effect on the Credit Agreement and the Other Loan Documents.

 

(i)                                       On
and after the Second Amendment Effective Date, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like
import referring to the Credit Agreement, and each reference in the other Loan
Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import

 

11

 

 

referring to the Credit Agreement shall mean and be a reference to the
Amended Agreement.

 

(ii)                                    Except
as specifically amended by this Amendment, the Credit Agreement and the other
Loan Documents shall remain in full force and effect and are hereby ratified
and confirmed.

 

(iii)                                 The
execution, delivery and performance of this Amendment shall not, except as
expressly provided herein, constitute a waiver of any provision of, or operate
as a waiver of any right, power or remedy of Administrative Agent or any Lender
under, the Credit Agreement or any of the other Loan Documents.

 

B.                                    Fees
and Expenses.  Each Borrower
acknowledges that all costs, fees and expenses as described in
subsection 10.2 of the Credit Agreement incurred by Administrative Agent
and its counsel with respect to this Amendment and the documents and
transactions contemplated hereby shall be for the account of the Borrowers.

 

C.                                    Headings.  Section and subsection headings in
this Amendment are included herein for convenience of reference only and shall
not constitute a part of this Amendment for any other purpose or be given any
substantive effect.

 

D.                                    Applicable
Law.  THIS AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES.

 

E.                                      Counterparts.  This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and
attached to a single counterpart so that all signature pages are physically
attached to the same document.

 

[Remainder of page intentionally left blank]

 

12

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed and delivered
by their respective officers thereunto duly authorized as of the date first written
above.

 

	
   

  	
  BORROWERS:

  	
   

  
	
   

  	
   

  
	
   

  	
  LA QUINTA CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  	
  David L. Rea

  
	
   

  	
  Title:

  	
  Executive
  Vice President and Chief

  
	
   

  	
   

  	
  Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LA QUINTA PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  	
  David L. Rea

  
	
   

  	
  Title:

  	
  Executive
  Vice President and Chief

  
	
   

  	
   

  	
  Financial
  Officer

  
					

 

S-1

 

	
   

  	
  CREDIT SUPPORT PARTIES:

  
	
   

  	
   

  
	
   

  	
  MEDITRUST HEALTHCARE

  CORPORATION

  
	
   

  	
   

  
	
   

  	
  MEDITRUST MORTGAGE

  INVESTMENTS, INC.

  
	
   

  	
   

  
	
   

  	
  MEDITRUST FINANCIAL SERVICES

  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  
	
   

  	
  On behalf of
  each of the entities immediately preceding this signature block (for the
  purposes of Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  David L. Rea

  
	
   

  	
  Title:

  	
  Vice
  President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MEDITRUST TRS, INC.

  
	
   

  	
   

  
	
   

  	
  LA QUINTA TRS, INC.

  
	
   

  	
   

  
	
   

  	
  LA QUINTA TRS II, INC.

  
	
   

  	
   

  
	
   

  	
  LA QUINTA TRS III, INC.

  
	
   

  	
   

  
	
   

  	
  LA QUINTA TRS IV, INC.

  
	
   

  
	
   

  	
  By:

  	
  /s/ Francis
  W. Cash

  	
   

  
	
   

  	
   

  
	
   

  	
  On behalf of
  each of the entities immediately preceding this signature block (for the
  purposes of Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Francis W.
  Cash

  
	
   

  	
  Title:

  	
  President

  
					

 

S-2

 

	
   

  	
  LA QUINTA REALTY CORP.

  
	
   

  	
   

  
	
   

  	
  LQI ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
  LA QUINTA INVESTMENTS, INC.

  
	
   

  	
   

  
	
   

  	
  LA QUINTA LEASING COMPANY

  
	
   

  	
   

  
	
   

  	
  MOC HOLDING COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  
	
   

  	
  On behalf of
  each of the entities immediately preceding this signature block (for the
  purposes of Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  David L. Rea

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LA QUINTA INNS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  
	
   

  	
  On behalf of
  the entity immediately preceding this signature block (for the purposes of
  Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  David L. Rea

  
	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  
					

 

S-3

 

	
   

  	
  LA QUINTA FRANCHISE, LLC

  
	
   

  	
   

  
	
   

  	
  LA QUINTA WORLDWIDE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  
	
   

  	
  On behalf of
  each of the entities immediately preceding this signature block (for the
  purposes of Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  David L. Rea

  
	
   

  	
  Title:

  	
  Manager,
  President and Treasurer

  
	
   

  	
   

  
	
   

  	
  LA QUINTA TEXAS PROPERTIES,

  
	
   

  	
  L.P. (for the purposes of Section 4 only),
  as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  LA QUINTA REALTY CORP., as General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  	
  Name:  David L. Rea

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  LQ INVESTMENTS I

  
	
   

  	
   

  
	
   

  	
  LQ INVESTMENTS II

  
	
   

  	
   

  
	
   

  	
  LQ – EAST IRVINE JOINT VENTURE

  
	
   

  	
   

  
	
   

  	
  On behalf of
  each of the entities immediately preceding this signature block (for the
  purposes of Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  By:

  	
  LA QUINTA PROPERTIES,

  
	
   

  	
   

  	
  INC., as General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David L. Rea

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  
								

 

S-4

 

	
   

  	
  LQC LEASING, LLC

  
	
   

  	
   

  
	
   

  	
  LA QUINTA LODGING INVESTMENTS, LLC

  
	
   

  	
   

  
	
   

  	
  On behalf of
  each of the entities immediately preceding this signature block (for the
  purposes of Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  By:

  	
  LA QUINTA PROPERTIES, INC., as Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David L. Rea

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
  LQ – LNL, L.P.

  
	
   

  	
   

  
	
   

  	
  LQ BATON ROUGE JOINT VENTURE

  
	
   

  	
   

  
	
   

  	
  LA QUINTA DENVER – PEORIA STREET LTD.

  
	
   

  	
   

  
	
   

  	
  LA QUINTA DEVELOPMENT PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
  On behalf of
  each of the entities immediately preceding this signature block (for the
  purposes of Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  By:

  	
  LA QUINTA PROPERTIES, INC., as General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David L. Rea

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  

 

S-5

 

	
   

  	
  MT LIMITED I LLC

  
	
   

  	
   

  
	
   

  	
  MEDITRUST ACQUISITION COMPANY LLC

  
	
   

  	
   

  
	
   

  	
  MEDITRUST ACQUISITION COMPANY II LLC

  
	
   

  	
   

  
	
   

  	
  MT GENERAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  
	
   

  	
  On behalf of
  each of the entities immediately preceding this signature block (for the
  purposes of Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  Name: David
  L. Rea

  
	
   

  	
  Title:   Vice
  President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LQM OPERATING PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  LA QUINTA REALTY CORP., its General Partner

  
	
   

  	
   

  
	
   

  	
  On behalf of
  each of the entities immediately preceding this signature block (for the
  purposes of Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  	
  Name:  David L. Rea

  
	
   

  	
   

  	
  Title:    Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TELEMATRIX, INC. (for the purposes of
  Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
  Name:  David
  L. Rea

  
	
   

  	
  Title:  Assistant
  Treasurer

  
						

 

S-6

 

	
   

  	
  T AND F PROPERTIES, LP (for the purposes of
  Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MT GENERAL LLC, as General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  MEDITRUST HEALTHCARE CORPORATION, its
  Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  	
  Name: David
  L. Rea

  
	
   

  	
   

  	
  Title:  Vice
  President and Treasurer

  
	
   

  	
   

  
	
   

  	
  MEDITRUST MANAGEMENT COMPANY (for the
  purposes of Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MEDITRUST HEALTHCARE CORPORATION, its
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David L. Rea

  
	
   

  	
   

  	
  Title:

  	
  Vice President
  and Treasurer

  
	
   

  	
   

  
	
   

  	
  LQ – WB, LLC (for the purposes of Section 4
  only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  By:

  	
  LA QUINTA LEASING COMPANY, a Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
  Name:

  	
  David L. Rea

  
	
   

  	
  Title:

  	
  Vice
  President

  
												

 

S-7

 

	
   

  	
  TELEMATRIX EQUIPMENT LLC (for the purposes
  of Section 4 only), as a Credit Support Party

  
	
   

  	
   

  
	
   

  	
  By:

  	
  LA QUINTA LEASING COMPANY, a Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L.
  Rea

  	
   

  
	
   

  	
  Name: David
  L. Rea

  
	
   

  	
  Title:  Vice
  President

  

 

S-8

 

	
   

  	
  ADMINISTRATIVE AGENT AND COLLATERAL AGENT:

  
	
   

  	
   

  
	
   

  	
  CANADIAN IMPERIAL
  BANK OF COMMERCE, as Administrative Agent and
  Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dean J. Decker

  	
   

  
	
   

  	
   

  
	
   

  	
  Dean J. Decker

  
	
   

  	
  Managing Director

  
	
   

  	
  CIBC World Markets Corp., AS AGENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  CANADIAN IMPERIAL BANK OF COMMERCE

  
	
   

  	
  425
  Lexington Avenue

  
	
   

  	
  New York,
  New York 10017

  
	
   

  	
  Attn.:  Agency Services Dept.

  
	
   

  	
  Facsimile
  No.: (212) 856-3799

  
	
   

  	
   

  
	
   

  	
  With a Copy
  to:

  
	
   

  	
   

  
	
   

  	
  CIBC WORLD MARKETS CORP.

  
	
   

  	
  10880 Wilshire Boulevard, Suite 1700

  
	
   

  	
  Los Angeles,
  California  90024

  

 

S-9

 

	
   

  	
  LENDERS:

  
	
   

  	
   

  
	
   

  	
  CIBC, INC., as
  a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dean J. Decker

  	
   

  
	
   

  	
  Dean J. Decker

  
	
   

  	
  Managing Director

  
	
   

  	
  CIBC World Markets Corp., AS AGENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  CIBC, INC.

  
	
   

  	
  425
  Lexington Avenue

  
	
   

  	
  New York,
  New York  10017

  
	
   

  	
  Attn.:
  Agency Services Dept.

  
	
   

  	
  Facsimile
  No.: (212) 856-3799

  
	
   

  	
   

  
	
   

  	
  With a Copy
  to:

  
	
   

  	
   

  
	
   

  	
  CIBC WORLD MARKETS CORP.

  
	
   

  	
  10880 Wilshire Boulevard, Suite 1700

  
	
   

  	
  Los Angeles,
  California  90024

  

 

S-10

 

	
   

  	
  FLEET NATIONAL BANK,
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mathew S. Latham

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:  Mathew S. Latham

  
	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  Fleet National Bank

  
	
   

  	
  Mark R. Luster

  
	
   

  	
  Vice President

  
	
   

  	
  777 Main Street

  
	
   

  	
  Hartford, CN 06115

  
	
   

  	
  Mail Stop: CTEH40224E

  

 

S-11

 

	
   

  	
  Credit Lyonnais

  New York Branch, as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruno
  DeFloor

  	
   

  
	
   

  	
  Name:

  	
  Bruno
  DeFloor

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President

  	
   

  

 

S-12

 

	
   

  	
  JPMorgan Chase Bank,
as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John F.
  Mix

  	
   

  
	
   

  	
  Name:

  	
  John F. Mix

  	
   

  
	
   

  	
  Title:

  	
  Vice-President

  	
   

  

 

S-13

 

 

	
   

  	
  Lehman Commercial Paper Inc.,
as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Francis
  Chang

  	
   

  
	
   

  	
  Name:

  	
  Francis
  Chang

  	
   

  
	
   

  	
  Title:

  	
  Authorized
  Signatory

  	
   

  

 

S-14

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