Document:

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EXHIBIT 10.1

Execution Copy

PLEDGE AGREEMENT

     This PLEDGE AGREEMENT (this “Agreement”), dated as of October 31, 2006, from FELCOR
HOLDINGS TRUST, a Massachusetts business trust (the “Assignor”) in favor of JPMORGAN CHASE
BANK, N.A. (“JPMC”), in its capacity as Collateral Agent for the Secured Parties (as
defined below) (the “Assignee”).

     WHEREAS, the Assignor is the legal and beneficial owner of certain units of limited partner
interests of FelCor Lodging Limited Partnership, a Delaware limited partnership (the
“Partnership”), as more particularly described on
Exhibit A attached hereto (the “LP
Units”);

     WHEREAS, pursuant to the terms of a Credit Agreement dated as of December 12, 2005, as amended
by Amendment No. 1 to Credit Agreement, dated as of January 12, 2006, Amendment No. 2 to Credit
Agreement, dated as of January 25, 2006, and Amendment No. 3 to Credit Agreement dated as of March
31, 2006 and as further amended by that certain Amendment No. 4 to Credit Agreement dated as of
October 26, 2006 (“Amendment No. 4”), between the Partnership, FelCor Lodging Trust Incorporated
(the “Company”, and together with the Partnership, the “Borrowers”), JPMC, as
Administrative Agent (in such capacity, the “Administrative Agent”), and JPMC and certain other
lenders party thereto (the “Lenders”) (such agreement as so modified and as further
amended, modified, or amended and restated, and including any replacements thereof, the “Credit
Agreement”), the Lenders have, upon the terms and subject to the conditions contained therein,
agreed to make loans and otherwise to extend credit to the Borrowers; and

     WHEREAS, the Borrowers requested that the Lenders make certain amendments to the Credit
Agreement, and such amendments are now reflected in Amendment No. 4;

     WHEREAS, it is a requirement under Amendment No. 4 that the Assignor execute and deliver to
the Assignee a pledge agreement in substantially the form hereof;

     WHEREAS, the Borrowers and certain other parties have entered into (a) the Indenture dated as
of June 4, 2001 with respect to the 8-1/2% Senior Notes due 2011 and (b) the Indenture dated as of
October 1, 1997 with respect to the 7-5/8% Senior Notes due 2007 (collectively, such agreements, as
modified to date and as further amended, modified, or amended and restated, the “Existing
Indentures”);

     WHEREAS, the Borrowers and certain other parties have entered into that certain Indenture
dated as of October 31, 2006 with respect to the Senior Secured Floating Rate Notes due 2011 (such
agreement as amended, modified, or amended and restated, the “New Indenture”);

     WHEREAS, it is a requirement under the Existing Indentures and the New Indenture that the
Assignor execute and deliver to the Assignee a pledge agreement in substantially the form hereof so
that the Notes issued under the Existing Indentures and the New Indenture shall

 

 

be equally and ratably secured by any collateral that is granted to secure the obligations
under the Credit Agreement;

     WHEREAS, the Assignor and the Borrowers are part of a group of related companies, and the
Assignor has received and/or expects to receive substantial direct and indirect benefits from the
loans and extensions of credit to the Borrowers pursuant to the Credit Agreement, the New Indenture
and the Existing Indentures (which benefits are hereby acknowledged);

     WHEREAS, the Administrative Agent, U.S. Bank National Association, as successor to SunTrust
Bank, as Trustee under the Existing Indentures (the “Existing Trustee”), and U.S. Bank National
Association, as Trustee under the New Indenture (the “New Trustee”) have entered into that certain
Collateral Agency Agreement dated as of October 31, 2006 (as amended, amended and restated,
supplemented or otherwise modified and in effect from time to time, the “Collateral Agency
Agreement”), pursuant to which the parties set forth their relative rights with respect to the
Collateral (as defined below);

     NOW, THEREFORE, in consideration of the premises contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

1. DEFINITIONS.

     All terms not specifically defined herein, which terms are defined in the Uniform Commercial
Code as in effect in the State of New York, shall have the meanings assigned to them therein. The
following terms shall have the following meanings herein:

     Administrative Agent. See preamble.

     Amendment No. 4. See preamble.

     Assignor. See preamble.

     Assigned Interests. See §2.1 hereof.

     Assignee. See preamble.

     Borrowers. See preamble.

     Business Day. Any day on which banks are open for business in New York, New York.

     Cash Collateral. See §4.2.

     Cash Collateral Account. See §4.2.

     Collateral. The Assigned Interests, the Cash Collateral, the Cash Collateral Account,
and all other property now or hereafter pledged or assigned to the Assignee by the Assignor
hereunder, and all income therefrom, increases therein and proceeds thereof.

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     Collateral Agency Agreement. See preamble.

     Company. See preamble.

     Credit Agreement. See preamble.

     Credit Documents. As defined in the Collateral Agency Agreement.

     Event of Default. See §5.

     Existing Indentures. See preamble.

     Existing Trustee. See preamble.

     LP Units. See preamble.

     JPMC. See preamble.

     New Indenture. See preamble.

     New Trustee. See preamble.

     Partnership. See preamble.

     Partnership Agreement. The Second Amended and Restated Agreement of Limited
Partnership dated as of December 31, 2001, as amended by Addendum No. 1 (and the annexes thereto),
Addendum No. 2, Addendum No. 3, Addendum No. 4, First Amendment dated as of April 1, 2002, Second
Amendment dated as of August 31, 2002, Third Amendment dated as of October 1, 2002, Fourth
Amendment dated as of July 1, 2003, Fifth Amendment dated as of April 2, 2004, Sixth Amendment
dated as of August 23, 2004, Seventh Amendment dated as of April 7, 2005, and Eighth Amendment
dated as of August 30, 2005, as the same may be further amended or amended and restated from time
to time.

     Secured Obligations. As defined in the Collateral Agency Agreement.

     Secured Parties. As defined in the Collateral Agency Agreement.

     Time Deposits. See §4.2.

2. PLEDGE.

     2.1. Grant of Security Interest. The Assignor hereby pledges, grants a security
interest in, mortgages, and collaterally assigns and transfers to the Assignee, for the benefit of
the Secured Parties, as security for the payment and performance in full when due of all of the
Secured Obligations, all the right, title and interest of the Assignor in and to the LP Units,
wherever located and whether now owned or hereafter acquired or arising, including, without
limitation, (a) all payments or distributions, whether in cash, property or otherwise, at any time
owing or payable to the Assignor on account of its interest as a limited partner in the
Partnership,

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     (b) all of the Assignor’s rights and interests as a limited partner under the Partnership
Agreement, including all voting rights and all rights to grant or withhold consents or approvals in
its capacity as a limited partner, (c) all rights as a limited partner of access and inspection to
and use of all books and records, including computer software and computer software programs, of
the Partnership, (d) all other rights, interests, property or claims to which the Assignor may be
entitled in its capacity as a limited partner of the Partnership, and (e) all proceeds and products
of any of the foregoing (all of the foregoing rights, title and interest described in the foregoing
clauses (a) through (e) being herein referred to collectively as the “Assigned Interests”).

     2.2. Pledge of Cash Collateral Account. The Assignor also hereby pledges and assigns
to the Assignee, for the benefit of the Secured Parties, and grants to the Assignee, for the
benefit of the Secured Parties, a security interest in, the Cash Collateral Account and all of the
Cash Collateral, subject to the terms of this Agreement.

     2.3. Waiver of Certain Partnership Agreement Provisions. The Assignor irrevocably
waives any and all provisions of the Partnership Agreement that (a) prohibit, restrict, condition
or otherwise affect the grant hereunder of any lien, security interest or encumbrance on any of the
Collateral or any enforcement action which may be taken in respect of any such lien, security
interest or encumbrance, or (b) otherwise conflict with the terms of this Agreement.

     2.4. Authorization to File Financing Statement. The Assignor hereby authorizes the
Assignee to file in any Uniform Commercial Code filing office a financing statement naming the
Assignor as the debtor and indicating the Collateral as the collateral. The financing statement
may indicate some or all of the collateral on the financing statement, whether specifically or
generally.

     2.5. Tender of Partners’ Consents. The Assignor has tendered to the Assignee the
consent of any other partner of the Partnership deemed necessary or appropriate by the Assignee for
the consummation of the transactions contemplated hereby.

     2.6. Delivery of Certificates. The certificates for the LP Units, accompanied by
appropriate instruments of assignment thereof duly executed in blank by the Assignor, have been
delivered to the Assignee.

     2.7. Additional Interests. In case the Assignor shall acquire any additional common
LP Units or common limited partner interests of the Partnership, or any other equity interests
exchangeable for or convertible into common LP Units or common limited partner interests of the
Partnership, whether by purchase, dividend, split or otherwise, then (i) such common LP Units and
common limited partner interests and equity interests shall automatically be subject to the pledge,
assignment and security interest granted to the Assignee, for the benefit of the Secured Parties,
under this Agreement and the Assigned Interests shall include such additional LP Units and
additional limited partner interests and (ii) the Assignor shall deliver to the Assignee forthwith
any certificates therefor, accompanied by appropriate instruments of assignment duly executed by
the Assignor in blank and the Assignee may update Exhibit A to reflect such additional LP Units or
limited partner interests. In any event, on the last day of each calendar quarter, the Assignor
shall update Exhibit A to reflect the LP Units then owned by the

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Assignor, and the Assignor and the Assignee shall make deliveries of the certificates for the
LP Units pledged under this Agreement so that such certificates are reconciled with such updated
Exhibit A.

3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF ASSIGNOR.

     3.1. Representations and Warranties. The Assignor hereby represents and warrants to
Assignee as follows:

     (a) The Partnership is duly organized, validly existing, and in good standing under the
laws of the State of Delaware and all other jurisdictions where the Partnership does
business; the Partnership Agreement is in full force and effect; the Assignor is a duly
constituted partner of the Partnership pursuant to the Partnership Agreement; the persons
and entities listed as partners in the Partnership Agreement and its related certificates
and schedules are the only partners of the Partnership; and the Assigned Interests are
validly issued, non-assessable and, except as set forth in §3.1(g) hereof, fully paid
partnership interests in the Partnership.

     (b) The Assignor has full right, power and authority to make this Agreement (including
the provisions enabling the Assignee or its nominee, upon the occurrence of an Event of
Default, to exercise the voting or other rights provided for herein), under the Partnership
Agreement and under applicable law, without the consent, approval or authorization of, or
notice to, any other person, including any regulatory authority or any person having any
interest in the Partnership, other than any consents to this Agreement required to be given
by the other partners under the Partnership Agreement, which consents, if any, have been
duly received.

     (c) The execution, delivery, and performance of this Agreement and the transactions
contemplated hereby (i) have been duly authorized by all necessary trust proceedings on
behalf of the Assignor, (ii) do not conflict with or result in any breach or contravention
of any applicable law, regulation, judicial order or decree to which such Assignor is
subject, (iii) do not conflict with or violate any provision of the declaration of trust or
other organizational documents of the Assignor, and (iv) do not violate, conflict with,
constitute a default or event of default under, or result in any rights to accelerate or
modify any obligations under any agreement, instrument, lease, mortgage or indenture to
which such Assignor is party or subject, or to which any of its assets are subject.

     (d) This Agreement has been duly executed and delivered by the Assignor and is the
legal, valid, and binding obligation of the Assignor enforceable against it in accordance
with the terms hereof except as enforceability is limited by bankruptcy, insolvency,
reorganization, moratorium, or other laws relating to or affecting generally the enforcement
of creditors’ rights and except to the extent that availability of the remedy of specific
performance or injunctive relief is subject to the discretion of the court before which any
case or proceeding therefor may be brought.

     (e) The Assignor is the sole, direct, legal and beneficial owner of all Assigned
Interests, which Assigned Interests constitute at least 95% of the common limited

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partnership interest in the Partnership, and has good and marketable title thereto,
free and clear of any lien, security interest, mortgage or other encumbrance, other than the
liens and security interest granted to the Assignee hereunder; and the liens and security
interests hereunder constitute valid and perfected first priority liens and security
interests.

     (f) The Assignor’s type and jurisdiction of organization and the Assignor’s tax
identification number and organizational identification number, if the Assignor has one, is
set forth below the Assignor’s signature to this Agreement. The Assignor’s principal place
of business, chief executive office, and the place where its records concerning the
Collateral are kept is located at 545 E. John Carpenter Freeway, Suite 1300, Irving, Texas
75002.

     (g) The Assignor has no obligation to make any contribution, capital call or other
payment to the Partnership with respect to the Assigned Interests.

     (h) The copy of the Partnership Agreement delivered to the Assignee is a true, correct,
and complete copy thereof, and the Partnership Agreement has not been amended or modified in
any respect, except for such amendments or modifications as are attached to the copy thereof
delivered to the Assignee.

     (i) The partnership interest of the Assignor in the Partnership is not a security
governed by Article 8 of the Uniform Commercial Code of the jurisdiction in which the
Partnership is organized.

     3.2. Covenants. The Assignor covenants to the Assignee as follows:

     (a) The Assignor will not permit or agree to any amendment or modification of the
Partnership Agreement (except for ministerial or other non-substantive amendments or
modifications) as in effect on the date hereof (or other governing document with respect to
the Assigned Interests), or waive any rights or benefits under the Partnership Agreement (or
such other governing document), without the prior written consent of the Assignee.

     (b) Without the prior written consent of the Assignee, the Assignor will not sell,
dispose of or assign, beneficially or of record, or grant, create, permit or suffer any lien
or encumbrance on, any of the Assigned Interests, or withdraw as a limited partner of the
Partnership.

     (c) Without the prior written consent of the Assignee, the Assignor shall not cast any
vote or give or grant any consent, waiver or ratification or take any other action which
could reasonably be expected to (i) directly or indirectly authorize or permit the
dissolution, liquidation or sale of the Partnership, whether by operation of law or
otherwise, (ii) have the result of materially and adversely affecting any of the Assignee’s
rights under this Agreement, (iii) violate the terms of this Agreement or any of the other
Credit Documents, (iv) have the effect of impairing the validity, perfection or priority of
the security interest of the Assignee in any manner whatsoever, or (v) cause an Event of
Default.

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     (d) The Assignor will comply with all laws, regulations, judicial orders or decrees
applicable to the Collateral or any portion thereof, and perform and observe its duties
under the Partnership Agreement or other governing documents with respect to the Assigned
Interests.

     (e) The Assignor will (i) keep and maintain at its own cost and expense at its
principal place of business satisfactory and complete records of the Collateral including a
record of all payments received and all other dealings of a material nature with the
Collateral, and (ii) mark its books and records pertaining to the Collateral and its books
and records kept in its jurisdiction of organization to evidence this Agreement and the
liens and security interests granted hereby.

     (f) The Assignor will pay promptly when due any taxes, assessments, and governmental
charges or levies imposed upon the Collateral or in respect of its income or profits
therefrom, as well as all claims of any kind except that no such charge need be paid if (i)
the validity thereof is being diligently contested in good faith by appropriate proceedings;
(ii) such proceedings do not involve any danger of the sale, forfeiture, or loss of any of
the Collateral or any interest therein; and (iii) such charge is adequately reserved against
in a manner acceptable to the Assignee.

     (g) The Assignor will advise the Assignee promptly, in reasonable detail, of (i) any
lien, charge, claim or other encumbrance made or asserted against any of the Collateral;
(ii) any material change in the composition of the Collateral; (iii) the occurrence of any
other event or condition which to its knowledge would have a material effect on the
validity, perfection or priority of the liens and security interests granted hereunder; and
(iv) any bankruptcy or litigation case or proceeding relating to any of the Collateral.

     (h) The Assignor will not (i) change its type or jurisdiction of organization or, if it
has one, its organizational identification number, (ii) change its principal place of
business or chief executive office or the location of the records concerning the Collateral
without giving prior written notice to the Assignee and taking such actions as may be
necessary or appropriate in the reasonable opinion of the Assignee duly to perfect and
continue the perfection of the Assignee’s first priority lien and security interest in the
Collateral pursuant to the laws of any jurisdiction into which such place of business, chief
executive office, or records is or are transferred, and (iii) change its name in any matter
that might make any financing statement filed hereunder misleading or invalid unless the
Assignor shall have notified the Assignee thereof and taken all such actions as may be
necessary or appropriate in the reasonable opinion of the Assignee to make any financing
statement filed in favor of the Assignee not misleading or invalid.

     (i) The Assignor shall do or cause to be done all things necessary to preserve, renew
and keep in full force and effect its legal existence and that of the Partnership, the power
and authority of each of the Assignor and the Partnership to own its property and carry on
its business, the qualification of each of the Assignor and the Partnership to do business
in its jurisdiction of organization, and the qualification of each of the Assignor

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and the Partnership to do business in each other jurisdiction where such qualification
is necessary except where the failure so to qualify would not have a material adverse effect
on the rights and interests of the Assignee hereunder.

     (j) Without the prior written consent of the Assignee, the Assignor will not cause or
permit the limited partner interest of the Assignor in the Partnership to constitute a
security governed by Article 8 of the Uniform Commercial Code of the jurisdiction in which
the Partnership is organized. If the partnership interest at any time constitutes a
security governed by Article 8 of the Uniform Commercial Code of the jurisdiction in which
the Partnership is organized, the Assignor will, if it has not already done so, forthwith
obtain an agreement from the Partnership, in form and substance satisfactory to the
Assignee, that the Partnership will comply with instructions of the Assignee as to the
Assigned Interests without further consent of the Assignor.

4. RIGHTS OF ASSIGNEE.

     4.1. Assignee Appointed Attorney-in-Fact. The Assignor hereby irrevocably constitutes
and appoints the Assignee, its successors and assigns, its true and lawful attorney-in-fact, with
full power and authority and with full power of substitution, at the expense of the Assignor,
either in the Assignee’s own name or in the name of the Assignor, at any time and from time to
time, in each case as the Assignee in its sole discretion may determine (i) to take any and all
appropriate action and to execute any and all documents and instruments that may be necessary or
desirable to accomplish the purposes of this Agreement and (ii) upon the occurrence and during the
continuance of an Event of Default:

     (a) to take any action and execute any instruments that such attorney-in-fact may deem
necessary or advisable to accomplish the purposes hereof;

     (b) to ask, demand, collect, receive, receipt for, sue for, compound, and give
acquittance for any and all sums or properties that may be or become due, payable, or
distributable in respect of the Collateral or that constitute a part thereof, with full
power to settle, adjust, or compromise any claim thereunder or therefor as fully as the
Assignor could do;

     (c) to endorse or sign the name of the Assignor on all instruments given in payment or
in part payment thereof and all documents of satisfaction, discharge, or receipt required or
requested in connection therewith; and

     (d) to file or take any action or institute any case or proceeding that the Assignee
may deem necessary or appropriate to collect or otherwise realize upon any or all of the
Collateral, or effect a transfer thereof, or that may be necessary or appropriate to protect
and preserve the right, title, and interest of the Assignee in and to the Collateral and the
security intended to be afforded hereby.

     4.2. Cash Collateral Account. Unless applied by the Assignee to Secured Obligations
then due and payable, all sums of money that are paid to the Assignee pursuant to this Agreement
with respect to the Collateral shall be deposited into an interest bearing account

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with the Assignee or another financial institution selected by the Assignee in its sole
discretion (the “Cash Collateral Account”). Some or all of the funds from time to time in the Cash
Collateral Account may be invested in time deposits, including certificates of deposit issued by
the Assignee or another financial institution selected by the Assignee in its sole discretion (such
certificates of deposit or other time deposits being hereinafter referred to, collectively, as
“Time Deposits”) that are satisfactory to the Assignee, provided, in any such case, arrangements
satisfactory to the Assignee are made to perfect, and to ensure the first priority of, its lien and
security interest in such Time Deposits. Interest earned on the Cash Collateral Account and on the
Time Deposits, and the principal of the Time Deposits at maturity that is not invested in new Time
Deposits, shall be deposited in the Cash Collateral Account. The Cash Collateral Account, all sums
from time to time standing to the credit of the Cash Collateral Account, any and all Time Deposits,
any and all instruments or other writings evidencing Time Deposits, and any and all proceeds of any
thereof are hereinafter referred to as the “Cash Collateral.” If the Cash Collateral Account is
not maintained with the Assignee, the Assignor shall, at the Assignee’s request and option,
pursuant to an agreement in form and substance satisfactory to the Assignee, either (a) cause the
depositary bank with which the Cash Collateral Account is maintained to agree to comply at any time
with instructions from the Assignee to such depositary bank directing the funds comprising the Cash
Collateral, without further consent of the Assignee, or (b) arrange for the Assignee to become the
customer of such depositary bank with respect to the Cash Collateral Account.

     4.3. Distributions, Conversion, Voting, etc. So long as no Event of Default shall
have occurred and be continuing and to the extent permitted under the Credit Agreement, the
Assignor shall be entitled to:

     (a) receive all cash and other distributions paid in respect of the Assigned Interests
not authorized or made in violation of the Credit Agreement;

     (b) exercise any voting rights relating to the Assigned Interests; and

     (c) give consents, waivers, approvals, and ratifications in respect of the Assigned
Interests.

All such rights of the Assignor to receive cash and other distributions shall cease if an Event of
Default shall have occurred and be continuing, except to the extent permitted under the Credit
Agreement, the Existing Indentures and the New Indenture, and in each such case the Assignor shall
(i) at the request of the Assignee, issue appropriate instructions that any such distributions be
paid directly to the Assignee or to such account as the Assignee may designate, and (ii) hold in
trust for the Assignee and immediately pay over to the Assignee any such distributions received by
the Assignor, except in each case to the extent permitted under the Credit Agreement, the Existing
Indentures and the New Indenture. All such rights of the Assignor referred to in clauses (b) and
(c) shall, at the Assignee’s sole option, as evidenced by the Assignee’s notifying the Assignor in
writing of its exercise of such option, cease in case an Event of Default shall have occurred and
be continuing.

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     4.4. No Assignment of Duties. This Agreement constitutes an assignment of the
Assigned Interests and the other Collateral only and not an assignment of any duties or obligations
of the Assignor with respect thereto, and by its acceptance hereof and whether or not the Assignee
shall have exercised any of its rights or remedies hereunder, the Assignee does not undertake to
perform or discharge, and shall not be responsible or liable for the performance or discharge of,
any such duties or responsibilities, including, without limitation, for capital calls. The
Assignor agrees that, notwithstanding the exercise by the Assignee of any of its rights hereunder,
the Assignor shall remain liable for the full and prompt performance of all of the Assignor’s
obligations and liabilities under the Partnership Agreement. Under no circumstances shall the
Assignee or any holder of any of the Secured Obligations as such be deemed to be a partner of the
Partnership by virtue of the provisions of this Agreement unless expressly agreed to in writing by
the Assignee. Without limiting the generality of the foregoing, the Assignee shall have no
partnership fiduciary duty to the Assignor, whether by virtue of the security interests and liens
hereunder, or any enforcement action in respect of such security interests and liens, unless and
until the Assignee is admitted to the Partnership as a substitute partner after exercising
enforcement rights under §9-610 or §9-620 of the Uniform Commercial Code in effect in the State of
New York, or otherwise.

5. EVENTS OF DEFAULT.

     Any one or more of the following events shall constitute an “Event of Default” hereunder:

     (a) The Assignor shall fail to perform any of its obligations under the Partnership
Agreement that results in a default thereunder following the expiration of any applicable
notice and cure periods; or

     (b) The occurrence of any Actionable Default (as defined in the Collateral Agency
Agreement).

6. REMEDIES.

     6.1. Remedies. During the continuance of an Event of Default, the Assignee shall
have, in addition to the rights, powers and authorizations to collect the sums assigned hereunder,
all rights and remedies of a secured party under the Uniform Commercial Code and under other
applicable law with respect to the Assigned Interests and any other Collateral hereunder,
including, without limitation, the following rights and remedies:

     (a) if the Assignee so elects and gives written notice of such election to the
Assignor, the Assignee may, in its sole discretion, (i) exercise any voting rights relating
to the Assigned Interests (whether or not the same shall have been transferred into its name
or the name of its nominee or nominees) for any lawful purpose, including for the amendment
or modification of the Partnership Agreement or other governing documents or the liquidation
of the assets of the Partnership, (ii) give all consents, waivers, approvals, and
ratifications in respect of such Assigned Interests, and (iii) otherwise act with respect
thereto as though it were the outright owner thereof (the Assignor hereby

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irrevocably constituting and appointing the Assignee the proxy and attorney-in-fact of
the Assignor, with full power and authority of substitution, to do so);

     (b) the Assignee may, in its sole discretion, demand, sue for, collect, compromise, or
settle any rights or claims in respect of any Collateral, as attorney-in-fact pursuant to
§4.1 or otherwise;

     (c) (i) the Assignee may, in its sole discretion, sell, resell, assign, deliver, or
otherwise dispose of any or all of the Collateral, for cash or credit or both and upon such
terms, in such manner, at such place or places, at such time or times, and to such persons
or entities as the Assignee thinks expedient, all without demand for performance by the
Assignor or any notice or advertisement whatsoever except as expressly provided herein or as
may otherwise be required by applicable law; and (ii) at the time of any such sale or other
disposition, the Assignee or its nominee or any purchaser of the Collateral at a foreclosure
sale may, in its sole discretion, cause the Partnership to make an election under §754 of
the Internal Revenue Code as to the basis of any Assigned Interest being sold or otherwise
disposed of.

     (d) the Assignee may, in its sole discretion, cause all or any part of the Assigned
Interests held by it to be transferred into its name or the name of its nominee or nominees;
and

     (e) the Assignee may, in its sole discretion, set off against the Secured Obligations
or place an administrative hold or freeze on any and all sums deposited with it or held by
it, including any sums standing to the credit of the Cash Collateral Account and any Time
Deposits issued by the Assignee, with any withdrawal penalty relating to Time Deposits being
an expense of collection.

     6.2. Remedies Not Exclusive. No single or partial exercise by the Assignee of any
right, power or remedy hereunder shall preclude any other or further exercise thereof or the
exercise of any other right, power or remedy. Each right, power and remedy herein specifically
granted to the Assignee or otherwise available to it shall be cumulative, and shall be in addition
to every other right, power, and remedy herein specifically given or now or hereafter existing at
law, in equity, or otherwise. Each such right, power and remedy, whether specifically granted
herein or otherwise existing, may be exercised at any time and from time to time and as often and
in such order as may be deemed expedient by the Assignee in its sole discretion.

     6.3. Public Sale. In the event of any sale or other disposition of the Collateral as
provided in §6.1(c), the Assignee shall give to the Assignor at least five (5) Business Days’ prior
written notice of the time and place of any public sale or other disposition of the Collateral or
of the time after which any private sale or any other disposition is to be made. The Assignor
hereby acknowledges that five (5) Business Days’ prior authenticated notice of such sale or other
disposition or sales or other dispositions shall be reasonable notice. The Assignee may enforce
its rights hereunder without any other notice and without compliance with any other condition
precedent now or hereafter imposed by law, regulation, judicial order or decree or otherwise (all
of which are hereby expressly waived by the Assignor, to the fullest extent permitted by law).

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The Assignee may buy any part or all of the Collateral at any public sale or other disposition
and if any part or all of the Collateral is of a type customarily sold or otherwise disposed of in
a recognized market or is of a type which is the subject of widely-distributed standard price
quotations, the Assignee may buy at private sale or other disposition and may make payments thereof
by any means. The Assignee may apply the cash proceeds actually received from any sale or other
disposition to the reasonable expenses of retaking, holding, preparing for sale, selling, and the
like, to reasonable attorneys’ fees, travel, and all other expenses which may be incurred by the
Assignee in attempting to collect the Secured Obligations or to enforce this Agreement or in the
prosecution or defense of any case or proceeding related to this Agreement, and then to the Secured
Obligations in accordance with the requirements of the Collateral Agency Agreement.

     6.4. Private Sale. The Assignor recognizes that the Assignee may be unable to effect
a public sale or other disposition of the Collateral by reason of the lack of a ready market for
the Collateral, of the limited number of potential buyers of the Collateral or of certain
prohibitions contained in the Securities Act of 1933, state securities laws, and other applicable
laws, and that the Assignee may be compelled to resort to one or more private sales or other
dispositions thereof to a restricted group of purchasers. The Assignor agrees that any such
private sales or other dispositions may be at prices and other terms less favorable to the seller
than if sold at public sales or other dispositions and that such private sales or other
dispositions shall not solely by reason thereof be deemed not to have been made in a commercially
reasonable manner. The Assignee shall be under no obligation hereunder or otherwise (except as
provided by applicable law) to delay a sale or other disposition of any of the Collateral for the
period of time necessary to permit the registration of such securities for public sale or other
public disposition under the Securities Act of 1933 and applicable state securities laws. Any such
sale or other disposition of all or a portion of the Collateral may be for cash or on credit or for
future delivery and may be conducted at a private sale or other disposition where the Assignee or
any other person or entity may be the purchaser of all or part of the Assigned Interests so sold or
otherwise disposed of. The Assignor agrees that to the extent notice of sale or other disposition
shall be required by law, at least five (5) Business Days’ prior notice to the Assignor of the time
and place after which any private sale is to be made shall constitute reasonable notification.
Subject to the foregoing, the Assignee agrees that any sale or other disposition of the Assigned
Interests shall be made in a commercially reasonable manner. The Assignee shall incur no liability
as a result of the sale or other disposition of any of the Collateral, or any part thereof, at any
private sale which complies with the requirements of this §6.4. The Assignor hereby waives, to the
extent permitted by applicable law, any claims against the Assignee arising by reason of the fact
that the price at which any of the Collateral, or any part thereof, may have been sold or otherwise
disposed of at such private sale was less than the price that might have been obtained at a public
sale or other public disposition, even if the Assignee accepts the first offer deemed by the
Assignee in good faith deemed to be commercially reasonable under the circumstances and does not
offer any of the Collateral to more than one offeree.

     6.5. Title. Nothing contained in this Agreement shall be construed to require the
Assignee to take any action with respect to the Assigned Interests, whether by way of foreclosure
or otherwise and except as required by the Partnership Agreement, in order to permit the

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Assignee to become a substitute limited partner of the Partnership under the Partnership
Agreement.

7. ASSIGNMENT NOT AFFECTED BY OTHER ACTS.

     The Assignor acknowledges and agrees that the security interests and collateral assignments
herein provided for shall remain in full force and effect and shall not be impaired by any
acceptance by the Assignee of any other collateral security for or guaranty of any of the Secured
Obligations, or by any failure or neglect or omission on the part of the Assignee to realize upon,
collect or protect any Secured Obligations or any Collateral. The security interests and
collateral assignments herein provided for shall not in any manner be affected or impaired by any
renewal, extension, modification, amendment, waiver, or restatement of any of the Secured
Obligations or of any collateral security therefor, or of any guaranty thereof, the Assignor hereby
waiving any and all suretyship defenses to the extent otherwise applicable. In order to sell or
otherwise dispose of or otherwise realize upon the security interests and assignments herein
granted and provided for, and exercise the rights granted the Assignee hereunder and under
applicable law, there shall be no obligation on the part of the Assignee at any time to first
resort for payment to any guarantors of the Secured Obligations or any part thereof or to resort to
any other collateral security, property, liens or other rights or remedies whatsoever, and the
Assignee shall have the right to enforce the security interests and collateral assignments herein
provided for irrespective of whether or not other proceedings are pending for realization upon or
from any of the foregoing.

8. MISCELLANEOUS.

     8.1. Additional Instruments and Assurances. The Assignor hereby agrees, at its own
expense, to execute and deliver, from time to time, any and all further, or other, instruments, and
to perform such acts, as the Assignee may reasonably request to effect the purposes of this
Agreement and to secure to the Assignee the benefits of all rights and remedies conferred upon the
Assignee by the terms of this Agreement.

     8.2. Release. If and only if all of the indebtedness and obligations of the Borrowers
under the New Indenture shall have been indefeasibly paid, performed, and discharged in full in
cash, or the security interest in the Collateral otherwise shall have been released by the New
Trustee in accordance with the New Indenture, the lien and security interest created hereby shall
be automatically released with respect to all Secured Parties and the Assignee shall, upon demand
and at the sole expense of the Assignor, deliver, file or record the proper instrument or
instruments to evidence such release, and such release shall be binding upon all of the Secured
Parties notwithstanding that Secured Obligations may then be outstanding.

     8.3. Assignee’s Exoneration. Under no circumstances shall the Assignee be deemed to
assume any responsibility for or obligation or duty with respect to any part or all of the
Collateral of any nature or kind or any matter or proceeding arising out of or relating thereto,
other than (a) to exercise reasonable care in the physical custody of the Collateral and (b) if an
Event of Default shall have occurred and be continuing, to act in a commercially reasonable manner
in exercising its rights and remedies with respect to the Collateral. Subject to the

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foregoing, the Assignee shall not be required to take any action of any kind to collect,
preserve or protect its or the Assignor’s rights in the Collateral.

     8.4. No Waiver, etc. Any term of this Agreement may be amended or modified with, but
only with, the written consent of the Assignor and the Assignee. Any term of this Agreement may be
waived by a writing executed by the party to be charged with such waiver. No act, failure, or
delay by the Assignee shall constitute a waiver of its rights and remedies hereunder or otherwise.
No single or partial waiver by the Assignee of any default, right, or remedy that it may have shall
operate as a waiver of any other default, right, or remedy or of the same default, right, or remedy
on a future occasion.

     8.5. Waiver By Assignor. The Assignor hereby waives presentment, notice of dishonor,
and protest of all instruments included in or evidencing any of the Secured Obligations or the
Collateral, and any and all other notices and demands whatsoever (except as expressly provided
herein or in the Collateral Agency Agreement or for notices required in connection with judicial
proceedings).

     8.6. Notice, etc. All notices, requests, and other communications hereunder shall be
made and effective in the manner and at the address set forth on the signature pages hereto or at
such other address as may be set forth or in a notice from the notifying party to the other parties
hereto.

     8.7. Overdue Amounts. Until paid, all amounts due and payable by the Assignor
hereunder shall be a debt secured by the Collateral and shall bear, whether before or after
judgment, interest at the rate of interest for overdue principal set forth in the Credit Agreement.

     8.8. Governing Law; Consent to Jurisdiction. This Agreement is intended to take
effect as a sealed instrument and shall be governed by, and construed in accordance with, the laws
of the State of New York. THE ASSIGNOR AGREES THAT ANY PROCEEDING FOR THE ENFORCEMENT OF THIS
AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING
THEREIN AND CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF SUCH COURT AND TO SERVICE OF PROCESS IN
ANY SUCH PROCEEDING BEING MADE UPON THE ASSIGNOR BY MAIL AT THE ADDRESS SPECIFIED IN §8.6. THE
ASSIGNOR HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH
PROCEEDING OR ANY SUCH COURT OR THAT SUCH PROCEEDING IS BROUGHT IN AN INCONVENIENT COURT.

     8.9. Waiver of Jury Trial. EACH OF THE ASSIGNOR AND THE ASSIGNEE HEREBY WAIVES ITS
RIGHT TO A JURY TRIAL WITH RESPECT TO ANY PROCEEDING ARISING OUT OF ANY DISPUTE IN CONNECTION WITH
THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER, OR THE PERFORMANCE OF ANY SUCH RIGHTS OR
OBLIGATIONS.

     8.10. Limitation of Liability. Except as prohibited by applicable law, each of the
Assignor and assignee waives any right which it may have to claim or recover in any proceeding
referred to in the preceding sentence any special, exemplary, or punitive damages or any

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damages other than, or in addition to, actual or consequential damages. The Assignor (a)
certifies that neither the Assignee nor any representative, agent, or attorney of the Assignee has
represented, expressly or otherwise, that the Assignee would not, in the event of any proceeding,
seek to enforce the foregoing waivers and (b) acknowledges that, in entering into this Agreement,
the Assignee is relying upon, among other things, the waivers and certifications contained in this
§8.10.

     8.11. Severability and Enforceability. All provisions hereof are severable and the
invalidity or unenforceability of any of such provisions shall in no manner affect or impair the
validity and enforceability of the remaining provisions hereof.

     8.12. Successors and Assigns. This Agreement shall be binding upon the Assignor and
upon the legal representatives, successors and assigns of the Assignor and shall inure to the
benefit of the Assignee and its successors and assigns.

     8.13. Counterparts. This Agreement may be executed in any number of counterparts,
each constituting an original, but all together one and the same instrument. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be effective as
delivery of a manually executed counterpart of this Agreement.

     8.14. Entire Agreement. This Agreement, the Collateral Agency Agreement and the
Credit Documents and any other document executed in connection herewith or therewith express the
entire understanding of the parties with respect to the transactions contemplated hereby. Neither
this Agreement nor any terms hereof may be changed, waived or terminated except by a writing signed
by each party hereto.

     8.15. Limitation of Liability. The Assignor has been formed under the laws of the
Commonwealth of Massachusetts pursuant to a Declaration of Trust dated as of July 31, 2002. In
accordance with the Declaration of Trust, none of the shareholders, trustees or officers of the
Assignor shall be personally liable for the obligations arising under this Agreement, and the
Assignee shall look solely to the trust estate comprising the Assignor for the payment of any claim
under such obligations or for the performance of such obligations.

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     IN WITNESS WHEREOF, the Assignor and the Assignee have executed this Agreement as of the date
first above written, as an instrument under seal.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	ASSIGNOR:	 	FELCOR HOLDINGS TRUST
	 
	 

	 	 	 	By:	 	/s/ Lester C. Johnson	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Lester C.
Johnson	 	 	 
	
 	 	 	 	 	 	Title: Trustee	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Larry J. Mundy	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Larry J. Mundy	 	 	 
	 

	 	 	 	 	 	Title: Trustee	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Type of organization: business trust
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Jurisdiction of organization: Massachusetts
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Tax identification number: 68-6222007
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Organizational identification number (or state “none” if the jurisdiction does not issue one):
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	000823956	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Address:
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	ASSIGNEE:	 	JPMORGAN CHASE BANK, N.A., AS COLLATERAL AGENT
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Donald Shokrian	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Donald
Shokrian	 	 	 
	 

	 	 	 	 	 	Title: Managing
Director	 	 	 
	 

	 	 	 	 	 	Address:
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	277 Park Avenue, 3rd Floor
	 	 	 	 	 	 	New York, NY 10172

 

 

EXHIBIT A

LP Units

61,926,494 units of common limited partnership interests represented by Certificate No. 97.exv10w2

 

EXHIBIT 10.2

Execution Copy

COLLATERAL
AGENCY AGREEMENT

DATED as of October 31, 2006

among

JPMORGAN CHASE BANK, N.A.,

U.S. BANK NATIONAL ASSOCIATION, as Trustee,

U.S. BANK NATIONAL ASSOCIATION, as Trustee

and

FELCOR LODGING TRUST INCORPORATED AND

FELCOR LODGING LIMITED PARTNERSHIP

 

 

COLLATERAL AGENCY AGREEMENT

     This COLLATERAL AGENCY AGREEMENT (this “Agreement”) is made as of October 31, 2006, among (a)
JPMORGAN CHASE BANK, N.A., as collateral agent (in such capacity, the “Collateral Agent”) for the
Secured Parties (as hereinafter defined) and as Administrative Agent (the “Agent”) for the Lenders
(as hereinafter defined), (b) U.S. BANK NATIONAL ASSOCIATION, as Trustee (the “New Trustee”) on
behalf of the holders of New Debentures (as defined below), (c) U.S. BANK NATIONAL ASSOCIATION, AS
SUCCESSOR TO SUNTRUST BANK, as Trustee (the “Existing Trustee”) on behalf of the holders of the
Existing Debentures (as defined below), (d) FELCOR LODGING TRUST INCORPORATED (“FelCor Trust”) and
FELCOR LODGING LIMITED PARTNERSHIP (“FelCor Partnership”) (collectively, the “Borrowers”) and (e)
FELCOR HOLDINGS TRUST (the “Pledgor”).

     WHEREAS, pursuant to a Credit Agreement dated as of December 12, 2005, as amended by Amendment
No. 1 to Credit Agreement, dated as of January 12, 2006, Amendment No. 2 to Credit Agreement, dated
as of January 25, 2006, and Amendment No. 3 to Credit Agreement dated as of March 31, 2006 and as
further amended by that certain Amendment No. 4 to Credit Agreement dated as of October 26, 2006
(“Amendment No. 4”) (such agreement as so amended and as further amended and in effect from time to
time, the “Original Credit Agreement”), among the Borrowers, JPMorgan Chase Bank, N.A. and the
other financial institutions which may from time to time become parties thereto (the “Lenders”) and
JPMorgan Chase Bank, N.A., as Agent for the Lenders, the Lenders have, upon the terms and subject
to the conditions contained therein, agreed to make loans and otherwise extend credit to the
Borrowers;

     WHEREAS, the Borrowers requested that the Lenders make certain amendments to the Credit
Agreement, and such amendments are now reflected in Amendment No. 4;

     WHEREAS, it is a requirement under Amendment No. 4 that Pledgor grant to the Lenders and the
Agent, as security for the Borrowers’ obligations to the Lenders and the Agent under or in respect
of the Original Credit Agreement, a first priority perfected lien on and security interest in the
Collateral (as hereinafter defined);

     WHEREAS, pursuant to an Indenture dated as of October 31, 2006 (as amended and in effect from
time to time, the “New Indenture”), among the Borrowers and the New Trustee, the Borrowers have
agreed to issue their Senior Secured Floating Rate Notes due 2011 (together with any other notes
issued pursuant to the New Indenture after the date hereof which are permitted under the Credit
Agreement, the “New Debentures”);

     WHEREAS, in order for the New Debentures to be issued by FelCor Partnership and to be accepted
by the holders thereof, the New Indenture requires that the Pledgor grant to the Collateral Agent,
as security for FelCor Partnership’s obligations to the holders of New Debentures and the New
Trustee under the New Indenture, an equal and ratable security interest in the Collateral;

     WHEREAS, pursuant to (a) the Indenture dated as of June 4, 2001 with respect to the 8-1/2%
Senior Notes due 2011 and (b) the Indenture dated as of October 1, 1997 with respect to

 

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the 7-5/8% Senior Notes due 2007 (such Indentures, as amended and supplemented and in effect
from time to time, the “Existing Indentures”), among FelCor Partnership and the Existing Trustee,
FelCor Partnership issued such notes (the “Existing Debentures”);

     WHEREAS, the Existing Indentures require that the Pledgor grant to the Collateral Agent, as
security for FelCor Partnership’s obligations to the holders of the Existing Debentures and the
Existing Trustee under the Existing Indentures, an equal and ratable security interest on the
Collateral to the same extent granted to secure the Lenders and the Agent;

     WHEREAS, concurrently herewith, the Borrowers, the Pledgor and the Collateral Agent have
entered into certain pledge agreements and related documents pursuant to which the Pledgor has
granted or agreed to grant to the Collateral Agent, for the benefit of the Secured Parties, a
security interest in and lien upon the Collateral; and

     WHEREAS, the parties hereto wish to set forth their relative rights and priorities with
respect to the Collateral;

     NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

1. DEFINITIONS.

     1.1. Definitions of Terms Used in Credit Agreement. All capitalized terms used but
not defined herein shall have the meanings assigned to such terms in the Credit Agreement as in
effect on the date hereof and as amended from time to time hereafter (but only to the extent any
such amendment complies with the provisions of this Agreement).

     1.2. Definitions. The following terms shall have the meanings set forth in this §1 or
elsewhere in the provisions of this Agreement referred to below:

     Act. See §2.2.

     Actionable Default. Any Event of Default under and as defined in the Credit Agreement
or Event of Default under and as defined in any of the Indentures.

     Agent. As defined in the preamble hereto and shall include any replacement or
successor Agent under the Original Credit Agreement, or any like agent(s) (or replacement(s)
thereof or successor(s) thereto) under any other Credit Agreement.

     Agreement. This Collateral Agency Agreement.

     Bank Debt. The “Obligations” as defined in the Original Credit Agreement, or any like
term of the same meaning contained in any replacement of the Original Credit Agreement. Bank Debt
shall include all obligations, liabilities and indebtedness (including, without limitation,
principal, interest (including, without limitation, all interest that accrues after the
commencement of any case, proceeding or other action relating to the bankruptcy, insolvency,
reorganization or similar proceeding of the Borrowers or the Pledgor at the rate provided for in
the respective

 

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documentation, whether or not a claim for post-petition interest is allowed in any such
proceeding)) owing to the Agent and the Lenders under the Credit Agreement and any other documents
executed in connection therewith and the due performance and compliance by the Borrowers with all
of the terms, conditions and agreements contained in the Credit Agreement and any other documents
executed in connection therewith; (ii) any and all sums advanced by the Agent in accordance with
the Credit Agreement or any of the Security Documents in order to preserve the Collateral or
preserve its security interest in the Collateral; and (iii) in the event of any proceeding for the
collection or enforcement of any indebtedness, obligations, or liabilities of the Borrowers
referred to in clause (i) above, the reasonable expenses of retaking, holding, preparing for sale
or lease, selling or otherwise disposing of or realizing on the Collateral, or of any exercise by
the Agent of its rights hereunder, together with reasonable attorneys’ fees and court costs.

     Bank Loan Documents. The “Loan Documents”, as defined in the Original Credit
Agreement, or any like term of the same meaning contained in any other Credit Agreement.

     Borrowers. As defined in the preamble hereto.

     Business Day. Any date for which banks are open for business in New York, New York.

     Collateral. Any of the properties and assets of whatever nature, tangible or
intangible, now owned or existing or hereafter acquired or arising, of the Borrowers and their
subsidiaries in which any of the Borrowers and their respective subsidiaries have at the time of
reference granted a Lien to the Collateral Agent to secure the Bank Debt and the Debenture Debt and
which has not been released pursuant to the terms hereof, including the Collateral under the Pledge
Agreement.

     Collateral Agent. As defined in the preamble hereto unless and until a successor
Collateral Agent shall have been appointed pursuant to §5.4 hereof, and thereafter “Collateral
Agent” shall mean such successor Collateral Agent.

     Credit Agreement. The Original Credit Agreement and the other Loan Documents (as
defined therein), and any agreement or agreements designated as a “Credit Agreement” or other “Loan
Documents” hereunder by written notice by the Borrowers to the Collateral Agent with the written
consent of the Agent and governing Indebtedness permitted under the Indentures all or part of which
was incurred to refund, refinance or replace all or any portion of the Indebtedness under the
Original Credit Agreement, as the same may hereafter be amended, renewed, extended, restated,
supplemented or otherwise modified (including by increasing the amount of Indebtedness thereunder
or by otherwise providing additional financing to the Borrowers) from time to time to the extent
permitted by the Indentures.

     Credit Documents. Collectively, the Credit Agreement, the Indentures, and the
Security Documents.

     Debenture Debt. Collectively, the New Debenture Debt and the Existing Debenture Debt.

     Debentures. Collectively, the New Debentures and the Existing Debentures.

 

-4-

     Existing Debenture Debt. (i) All obligations, liabilities and indebtedness
(including, without limitation, principal, premium, interest (including, without limitation, all
interest that accrues after the commencement of any case, proceeding or other action relating to
the bankruptcy, insolvency, reorganization or similar proceeding of the Borrowers or the Pledgor at
the rate provided for in the respective documentation, whether or not a claim for post-petition
interest is allowed in any such proceeding)) owing to the Existing Trustee and the holders of
Existing Debentures under the Existing Debentures, the Existing Indentures and any other documents
executed in connection therewith and the due performance and compliance by the Borrowers with all
of the terms, conditions and agreements contained in the Existing Debentures, the Existing
Indentures and any other documents executed in connection therewith; (ii) any and all sums advanced
by the Existing Trustee in accordance with the Existing Indentures or any of the Security Documents
in order to preserve the Collateral or preserve its security interest in the Collateral; and (iii)
in the event of any proceeding for the collection or enforcement of any indebtedness, obligations,
or liabilities of the Borrowers referred to in clause (i) above, the reasonable expenses of
retaking, holding, preparing for sale or lease, selling or otherwise disposing of or realizing on
the Collateral, or of any exercise by the Existing Trustee of its rights hereunder, together with
reasonable attorneys’ fees and court costs.

     Existing Debentures. As defined in the preamble hereto.

     Existing Indentures. As defined in the preamble hereto and shall include any
amendment or supplement thereof.

     Existing Trustee. As defined in the preamble hereto and shall any replacement or
successor Trustee under the Existing Indentures.

     Indentures. Collectively, the New Indenture and the Existing Indentures.

     Lenders. As defined in the preamble hereto, together with their respective successors
and assigns, and shall include any replacement or successive lenders under the Credit Agreement.

     Lien. Any consensual mortgage, security deed, deed of trust, pledge, lien, security
interest or other voluntary encumbrance, whether now existing or hereafter created, acquired or
arising.

     New Debenture Debt. (i) All obligations, liabilities and indebtedness (including,
without limitation, principal, premium, interest (including, without limitation, all interest that
accrues after the commencement of any case, proceeding or other action relating to the bankruptcy,
insolvency, reorganization or similar proceeding of the Borrowers or the Pledgor at the rate
provided for in the respective documentation, whether or not a claim for post-petition interest is
allowed in any such proceeding)) owing to the New Trustee and the holders of New Debentures under
the New Debentures, the New Indenture and any other documents executed in connection therewith and
the due performance and compliance by the Borrowers with all of the terms, conditions and
agreements contained in the New Debentures, the New Indenture and any other documents executed in
connection therewith; (ii) any and all sums advanced by the New Trustee in accordance with the New
Indenture or any of the Security Documents in order to preserve the Collateral or preserve its
security interest in the Collateral; and (iii) in the event of any

 

-5-

proceeding for the collection or enforcement of any indebtedness, obligations, or liabilities
of the Borrowers referred to in clause (i) above, the reasonable expenses of retaking, holding,
preparing for sale or lease, selling or otherwise disposing of or realizing on the Collateral, or
of any exercise by the New Trustee of its rights hereunder, together with reasonable attorneys’
fees and court costs.

     New Debentures. As defined in the preamble hereto.

     New Indenture. As defined in the preamble hereto and shall include any amendment or
supplement thereof.

     New Trustee. As defined in the preamble hereto and shall include any replacement or
successor Trustee under the New Indenture.

     Notice of Actionable Default. A notice by a Requisite Party delivered to the
Collateral Agent, stating that an Actionable Default has occurred. A Notice of Actionable Default
shall be deemed to have been given when the notice referred to in the preceding sentence has
actually been received by the Collateral Agent and to have been rescinded when the Collateral Agent
has actually received from the notifying Requisite Party a notice withdrawing such Notice. A
Notice of Actionable Default shall be deemed to be outstanding at all times after such Notice has
been given until such time, if any, as such Notice has been rescinded.

     Person. Any individual, corporation, partnership, trust, unincorporated association,
business or other legal entity, and any government or any governmental agency or political
subdivision thereof.

     Pledge Agreement. The Pledge Agreement dated as of the date hereof between the
Pledgor and the Collateral Agent.

     Pledgor. As defined in the preamble hereto.

     Requisite Parties. The Agent and the New Trustee.

     Secured Obligations. Collectively, (a) the Bank Debt (unless and until the Agent has
given notice in writing to the Collateral Agent that either (i) the Bank Debt has been paid in full
and all commitments under the Credit Agreement have been reduced to zero or (ii) the Bank Debt
otherwise no longer constitutes Secured Obligations under the Security Documents), (b) the New
Debenture Debt (unless and until the New Trustee has given notice in writing to the Collateral
Agent that either (i) the New Debenture Debt has been paid in full or (ii) the New Debenture Debt
no longer constitutes Secured Obligations under the Security Documents) and (c) the Existing
Debenture Debt (unless and until the Existing Trustee has given notice in writing to the Collateral
Agent that either (i) all or any portion of the Existing Indenture Debt has been paid in full or
(ii) all or any portion of the Existing Debenture Debt no longer constitutes Secured Obligations
under the Security Documents or is otherwise no longer entitled to the benefits of the Collateral,
including, without limitation, as a result of the amendment of the applicable Existing Indenture to
no longer require that such Existing Debenture Debt be secured by the
Collateral).

     Secured Party Representatives: The Agent, the New Trustee and the Existing Trustee.

 

-6-

     Secured Parties. The Agent, the Lenders, the New Trustee, the holders of New
Debentures, the Existing Trustee, and the holders of the Existing Debentures.

     Security Documents. The Pledge Agreement and any instrument or agreement pursuant to
which a Lien in Collateral is created or arises to secure the Bank Debt and the Debenture Debt.

     Trustees. Collectively, the New Trustee and the Existing Trustee.

     1.3. Terms Generally. The definitions in §1.2 shall apply equally to both the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. All
references herein to Sections shall be deemed references to Sections of this Agreement unless the
context shall otherwise require.

2. RECOURSE OF SECURED PARTIES; OTHER COLLATERAL; ACTS OF SECURED PARTIES.

     2.1. Recourse of Secured Parties; Other Collateral. Each of the Secured Parties
acknowledges and agrees that (i) it shall only have recourse to the Collateral through the
Collateral Agent and that it shall have no independent recourse to the Collateral and (ii) except
as otherwise provided in §3.2 hereof, the Collateral Agent shall have no obligation to take any
action, or refrain from taking any action, except upon instructions from all the Requisite Parties
in accordance with §2.2 hereof. Nothing contained herein shall (a) restrict the Trustees’ rights
to pursue remedies, by proceedings in law and equity, to collect principal of or interest on the
Debentures or to enforce the performance of and provisions of the Debentures or (b) restrict the
Agent’s rights to pursue remedies, by proceedings in law and equity, to collect principal of or
interest on the Bank Debt or to enforce the performance of and provisions of the Credit Agreement,
in each case to the extent that such remedies do not relate to the Collateral or interfere with the
Collateral Agent’s right to take action hereunder or under the Security Documents.

     2.2. Acts of Secured Parties. Any request, demand, authorization, direction, notice,
consent, waiver or other action permitted or required by this Agreement to be given or taken by the
Requisite Parties, may be and, at the request of the Collateral Agent, shall be embodied in and
evidenced by one or more instruments satisfactory in form to the Collateral Agent and signed by or
on behalf of the Requisite Parties and, except as otherwise expressly provided in any such
instrument, any such action shall become effective when such instrument or instruments shall have
been delivered to the Collateral Agent. The instrument or instruments evidencing any action (and
the action embodied therein and evidenced thereby) are sometimes referred to herein as an “Act” of
the persons signing such instrument or instruments. The Collateral Agent shall be entitled to rely
absolutely upon an Act of the Requisite Parties if such Act purports to be taken by or on behalf of
the Requisite Parties, and nothing in this §2.2 or elsewhere in this Agreement shall be construed
to require the Agent or a Trustee to demonstrate that it has been authorized by the Lenders or, as
the case may be, holders of the Debentures to take any action which it purports to be taking, the
Collateral Agent being entitled to rely

 

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conclusively, and being fully protected in so relying, on any Act of the Agent or such
Trustee, as the case may be.

     2.3. Determination of Amounts of Secured Obligations. Whenever the Collateral Agent
is required to determine the existence or amount of any of the Secured Obligations or the existence
of any Actionable Default for any purposes of this Agreement, it shall provide notice to each of
the Secured Party Representatives in accordance with §12.4 specifying the length of time for
response thereto by the Secured Parties. Each Secured Party Representative shall then provide a
certificate to the Collateral Agent certifying as to the existence of any Actionable Default under
its respective Credit Documents or the existence or amount of its respective Secured Obligations
and shall include supporting information as reasonably requested by the Collateral Agent with
respect to the existence or amount of any Secured Obligations. The Collateral Agent shall make a
determination as to the existence of an Actionable Default or as to the existence or amount of the
Secured Obligations on the basis of such certificates and supporting information of the Secured
Parties or the Requisite Party, as applicable; provided, however, that if,
notwithstanding the request of the Collateral Agent, a Secured Party Representative shall fail or
refuse promptly (within at least 10 Business Days after such notice) to certify as to the existence
or amount of any Secured Obligation or the existence of any Actionable Default, the Collateral
Agent shall be entitled to determine such existence or amount by such method as the Collateral
Agent may, in its sole discretion, determine, including by reliance upon a certificate of the
Borrowers or any of their Subsidiaries. The Collateral Agent may rely conclusively, and shall be
fully protected in so relying, on any determination made by it in accordance with the provisions of
the preceding sentence (or as otherwise directed by a court of competent jurisdiction) and shall
have no liability to the Borrowers, any of their Subsidiaries, any holder of any Secured Obligation
or any other person as a result of such determination. For all purposes of this Agreement, (a) the
amount of any Secured Obligation constituting a guaranty of another obligation shall be deemed to
equal the amount of the underlying obligation subject to any applicable limit in the guaranty and
(b) to the extent any Secured Obligation has been taken into account for purposes of determining
the amount to which any Secured Party is entitled in any distribution hereunder, any guaranty of
such Secured Obligation which is itself a Secured Obligation shall not be taken into account for
such purpose.

3. DUTIES OF COLLATERAL AGENT.

     3.1. Notices to the Secured Parties and the Borrowers. The Collateral Agent shall
within five (5) Business Days following receipt thereof furnish to each of the Agent, the New
Trustee, the Existing Trustee and the Borrowers:

     (a) a copy of each Notice of Actionable Default received by the Collateral Agent;

     (b) a copy of each certificate received by the Collateral Agent rescinding a Notice of
Actionable Default;

     (c) written notice of any release or subordination by the Collateral Agent of any
Collateral; and

 

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     (d) such other notices required by the terms of this Agreement to be furnished by the
Collateral Agent.

     3.2. Actions Under Security Documents. The Collateral Agent shall not be obligated to
take any action under this Agreement or any of the Security Documents except for the performance of
such duties as are specifically set forth herein or therein. Subject to the provisions of §5
hereof, the Collateral Agent shall take any action under or with respect to the Security Documents
which is requested by all Requisite Parties and which is not inconsistent with or contrary to the
provisions of this Agreement or the Credit Documents; provided that the Collateral Agent
shall not amend or waive any provision of the Security Documents except in accordance with §9
hereof. At any time when a Notice of Actionable Default shall have been given and shall be
outstanding, the Collateral Agent shall, subject in all cases to the provisions of §5 hereof,
exercise or refrain from exercising all such rights, powers and remedies as shall be available to
it under the Security Documents or any of them in accordance with any written instructions received
from all Requisite Parties. Notwithstanding the foregoing or anything else to the contrary set
forth in this Agreement, if a Notice of Actionable Default has been delivered to the Secured Party
Representatives and is outstanding and if the Requisite Party that delivered such Notice of
Actionable Default or the Collateral Agent has requested in writing that the other Requisite Party
provide instructions to the Collateral Agent as to the actions to be taken under the Security
Documents and such other Requisite Party fails to provide any such instructions within thirty (30)
days of such request, then the Requisite Party that delivered the Notice of Actionable Default,
acting by itself, may instruct the Collateral Agent regarding the actions to be taken under the
Security Documents, and such instructions shall be deemed to be the instructions of all Requisite
Parties for all purposes under this Agreement. The Collateral Agent shall have the right to
decline to follow any such direction if the Collateral Agent, being advised by counsel, determines
that the directed action is not permitted by the terms of this Agreement, the Security Documents or
the other Credit Documents, may not lawfully be taken or would involve it in personal liability,
and the Collateral Agent shall not be required to take any such action unless any indemnity which
is required hereunder in respect of such action has been provided. Subject to §5 hereof, the
Collateral Agent may rely on any such direction given to it by the Requisite Parties and shall be
fully protected, and shall under no circumstances (absent the gross negligence and willful
misconduct of the Collateral Agent) be liable to the Borrowers, any holder of any Secured
Obligations or any other Person for taking or refraining from taking action in accordance
therewith. Absent written instructions from the Requisite Parties (i) at a time when a Notice of
Actionable Default shall be outstanding or (ii) in the case of an emergency in order to protect any
of the Collateral, the Collateral Agent may take, but shall have no obligation to take, any and all
such actions under the Security Documents or any of them or otherwise as it shall deem to be in the
best interests of the Secured Parties. Except as provided in the preceding sentence and in the
last sentence of §3.1(d), in the absence of written instructions (which may relate to the exercise
of specific remedies or to the exercise of remedies in general) from the Requisite Parties, the
Collateral Agent shall not exercise remedies available to it under any Security Documents with
respect to the Collateral or any part thereof.

 

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4. PRIORITY OF RIGHTS AGAINST COLLATERAL AND PROCEEDS THEREOF.

     It is the intent of the parties hereto that the Bank Debt, the New Debenture Debt and the
Existing Debenture Debt shall be equally and ratably secured by the Collateral. Accordingly, the
parties hereto acknowledge and agree as follows:

     (a) If the Collateral Agent receives any cash amounts in respect of the Collateral
(which amounts, under the terms of any of the Security Documents, are to be applied to any
of the Secured Obligations), including, without limitation, any net proceeds received by the
Collateral Agent in connection with any sale, exchange, destruction, condemnation, or other
disposition of any of the Collateral and, if applicable, any sum received by the Collateral
Agent pursuant to §507(b) of the Bankruptcy Code in any bankruptcy case in which a Borrower
is a debtor, such cash amounts shall be paid as follows:

     (i) first, to the Collateral Agent for or in respect of all reasonable costs,
expenses, disbursements, and losses which shall have been incurred or sustained by
the Collateral Agent in connection with the collection of such monies by the
Collateral Agent, for the exercise, protection or enforcement by the Collateral
Agent of all or any of the rights, remedies, powers and privileges of the Collateral
Agent under this Agreement or any of the other Security Documents in respect of the
Collateral;

     (ii) second, to the Secured Parties, to pay ratably any reimbursements of
expenses, disbursements and losses described in clause (i) above then due in respect
of the Secured Obligations;

     (iii) third, to the Secured Parties, to pay ratably any fees then due in
respect of the Secured Obligations;

     (iv) fourth, to the Secured Parties to pay ratably interest then due and
payable in respect of the Secured Obligations;

     (v) fifth, to the Secured Parties, to pay or prepay ratably principal amounts
in respect of the Secured Obligations; and

     (vi) sixth, to the Secured Parties, to the ratable payment of all other Secured
Obligations until all Secured Obligations have been indefeasibly paid in full in
cash.

     Amounts distributable pursuant to this §4.1(a) comprising postpetition interest or
postpetition reasonable fees, costs or expenses not allowed or allowable in a bankruptcy
case should be determined as if such amounts were allowed or allowable so long as the
principal claim to which they relate is allowed or allowable in the bankruptcy case.

     (b) If the Collateral Agent receives any non-cash distributions or proceeds in respect
of the Collateral, then, unless the Security Documents expressly provide to the

 

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contrary,
the Collateral Agent shall hold such non-cash distributions and proceeds as
Collateral upon the terms of this Agreement and the Security Documents until converted
to cash and thereupon distributed in accordance with paragraph (a) of this §4.

5. CONCERNING THE COLLATERAL AGENT.

     5.1. Appointment of Collateral Agent. The Agent, acting on instructions from the
Lenders, the New Trustee, acting pursuant to the New Indenture, and the Existing Trustee, acting
pursuant to the Existing Indentures, hereby appoint JPMorgan Chase Bank, N.A. to act as Collateral
Agent pursuant to the terms of this Agreement and the Security Documents. The relationship between
the Collateral Agent and the holders of the Secured Obligations is and shall be that of agent and
principal only, and nothing contained in this Agreement or any of the Credit Documents shall be
construed to constitute the Collateral Agent as a trustee for any such holder.

     5.2. Limitations on Responsibility of Collateral Agent. The Collateral Agent shall
not be responsible in any manner whatsoever for the correctness of any recitals, statements,
representations or warranties contained herein or in any Security Document, except for those made
by it herein. The Collateral Agent makes no representation as to the value or condition of the
Collateral or any part thereof, as to the title of the Borrowers to the Collateral, as to the
security afforded by this Agreement or any Security Document or, except as set forth in §6, as to
the validity, execution, enforceability, legality or sufficiency of this Agreement or any Security
Document, and the Collateral Agent shall incur no liability or responsibility in respect of any
such matters. The Collateral Agent shall not be responsible for insuring the Collateral, for the
payment of taxes, charges, assessments or liens upon the Collateral or otherwise as to the
maintenance of the Collateral, except as provided in the immediately following sentence when the
Collateral Agent has possession of the Collateral. The Collateral Agent shall have no duty to the
Borrowers or to the holders of any of the Secured Obligations as to any Collateral in its
possession or control or in the possession or control of any agent or nominee of the Collateral
Agent or any income thereon or as to the preservation of rights against prior parties or any other
rights pertaining thereto, except the duty to accord such of the Collateral as may be in its
possession substantially the same care as it accords its own assets and the duty to account for
monies received by it. The Collateral Agent shall not be responsible for any loss suffered with
respect to any investment permitted to be made under this Agreement and shall not be responsible
for the consequences of any oversight or error of judgment whatsoever, except that the Collateral
Agent may be liable for losses due to its willful misconduct or gross negligence. The Collateral
Agent shall not be required to ascertain or inquire as to the performance by the Borrowers of any
of the covenants or agreements contained herein or any of the Credit Documents. Neither the
Collateral Agent nor any officer, agent or representative thereof shall be personally liable for
any action taken or omitted to be taken by any such person in connection with this Agreement or any
Security Document except for such person’s own gross negligence or willful misconduct. Neither the
Collateral Agent nor any officer, agent or representative thereof shall be personally liable for
any action taken by any such person in accordance with any notice given by the Requisite Party
pursuant to the terms of this Agreement even if, at the time such action is taken by any such
person, the Requisite Party or person purporting to be the Requisite Party is not entitled to give
such notice, except where the account officer of the Collateral Agent active upon the Borrowers’
account has actual knowledge that such Requisite Party or person purporting to be the Requisite
Party is not entitled to give such notice. The Collateral Agent may

 

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execute any of the powers granted under this Agreement or any of the Security Documents and
perform any duty hereunder or thereunder either directly or by or through agents or
attorneys-in-fact, and shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it without gross negligence or willful misconduct.

     5.3. Reliance by Collateral Agent; etc. Whenever in the performance of its duties
under this Agreement the Collateral Agent shall deem it necessary or desirable that a matter be
proved or established with respect to any Person in connection with the taking, suffering or
omitting of any action hereunder by the Collateral Agent, such matter may be conclusively deemed to
be proved or established by a certificate executed by an officer of such Person, and the Collateral
Agent shall have no liability with respect to any action taken, suffered or omitted in reliance
thereon. The Collateral Agent may consult with counsel and shall be fully protected in taking any
action hereunder in accordance with any advice of such counsel. The Collateral Agent shall have
the right but not the obligation at any time to seek instructions concerning the administration of
this Agreement, the duties created hereunder, or any of the Collateral from any court of competent
jurisdiction.

     5.3.1. Resolutions, etc. The Collateral Agent shall be fully protected in
relying upon any resolution, statement, certificate, instrument, opinion, report, notice,
request, consent, order or other paper or document which it believes to be genuine and to
have been signed or presented by the proper party or parties. In the absence of its gross
negligence or willful misconduct, the Collateral Agent may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein, upon any
certificate or opinions furnished to the Collateral Agent in connection with this Agreement.

     5.3.2. Actionable Defaults. The Collateral Agent shall not be deemed to have
actual, constructive, direct or indirect notice or knowledge of the occurrence of any
Actionable Default unless and until the Collateral Agent shall have received a Notice of
Actionable Default. The Collateral Agent shall have no obligation whatsoever either prior
to or after receiving such a Notice of Actionable Default to inquire whether an Actionable
Default has, in fact, occurred and shall be entitled to rely conclusively, and shall be
fully protected in so relying, on any certificate so furnished to it and shall have no
obligation, absent written instructions from the Requisite Parties, to take or omit to take
any action with respect to such Notice of Actionable Default.

     5.3.3. No Obligation to Act. If the Collateral Agent has been requested by the
Requisite Parties to take any specific action pursuant to any provision of this Agreement,
the Collateral Agent shall not be under any obligation to exercise any of the rights or
powers vested in it by this Agreement in the manner so requested unless, if so requested by
the Collateral Agent, it shall have been provided indemnity satisfactory to it against the
costs, expenses and liabilities which may be incurred by it in compliance with such request
or direction.

     5.3.4. Disputes. If any dispute or disagreement shall arise as to the
allocation of any sum of money received by the Collateral Agent hereunder or under any
Security

 

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Document, the Collateral Agent shall have the right to deliver such sum to a court
of competent jurisdiction and therein commence an action for interpleader.

     5.4. Resignation of the Collateral Agent. The Collateral Agent may at any time resign
by giving thirty (30) days’ prior written notice thereof to each Secured Party Representative and
the Borrowers, provided that no resignation shall be effective until a successor for the
Collateral Agent is appointed. Upon such resignation, the Secured Party Representatives shall have
the right to appoint a successor Collateral Agent. If no successor Collateral Agent shall have
been so appointed by the Secured Party Representatives and shall have accepted such appointment
within thirty (30) days after the retiring Collateral Agent’s giving of notice of resignation, then
the retiring Collateral Agent may, on behalf of the Secured Parties, appoint a successor Collateral
Agent, which shall be a financial institution having a long-term bank deposit rating of not less
than “A” if rated by Standard & Poor’s Corporation or Moody’s Investors Services, Inc. Upon the
acceptance of any appointment as Collateral Agent hereunder by a successor Collateral Agent, such
successor Collateral Agent shall thereupon succeed to and become vested with all the rights,
powers, privileges and duties of the retiring Collateral Agent, and the retiring Collateral Agent
shall be discharged from its duties and obligations hereunder. After any retiring Collateral
Agent’s resignation, the provisions of this Agreement and the Security Documents shall continue in
effect for its benefit in respect of any actions taken or omitted to be taken by it while it was
acting as Collateral Agent.

     5.5. Expenses and Indemnification by the Borrowers. By countersigning this Agreement,
the Borrowers jointly and severally agree (i) to reimburse the Collateral Agent, on demand, for any
expenses incurred by the Collateral Agent, including reasonable counsel fees and disbursements and
compensation of agents, arising out of, in any way connected with, or as a result of, the execution
or delivery of this Agreement or any Security Document or any agreement or instrument contemplated
hereby or thereby or the performance by the parties hereto or thereto of their respective
obligations hereunder or thereunder or in connection with the enforcement or protection of the
rights of the Collateral Agent and the Secured Parties hereunder or under the Security Documents,
(ii) to indemnify and hold harmless the Collateral Agent and its directors, officers, employees and
agents, on demand, from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by or asserted against the Collateral Agent in its
capacity as the Collateral Agent or any of them in any way relating to or arising out of this
Agreement or any Security Document or any action taken or omitted by them under this Agreement or
any Security Document; provided that the Borrowers shall not be liable to the Collateral
Agent for any portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from the gross negligence or willful
misconduct of the Collateral Agent or any of its directors, officers, employees or agents as
determined by a final non-appealable order of a court of competent jurisdiction, (iii) to indemnify
and hold harmless the Collateral Agent, on demand, from and against any and all liabilities which
may be imposed on or incurred by the Collateral Agent (in its capacity as Collateral Agent) for the
net amount of taxes (after taking into account any deduction, credit or other tax reduction or
benefit available by reason of the imposition of any such tax) in any jurisdiction in which the
Collateral Agent would not otherwise be subject to tax except by reason of its acting under this
Agreement or the Security Documents (directly or through agents); provided that such
indemnification for taxes (A) shall apply only in respect of

 

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taxes attributable to the performance
of the Collateral Agent’s obligations hereunder and (B) shall in no event cover any federal, state,
local or other taxes imposed upon the Collateral Agent with respect to or measured by its gross or
net income or profits. A statement by the Collateral
Agent that is submitted to the Borrowers with respect to the amount of such expenses and
containing a basic description thereof and/or the amount of its indemnification obligation shall be
prima facie evidence of the amount thereof owing to the Collateral Agent.

     5.6. Expenses and Indemnification by Secured Parties. Each of the Secured Parties
severally agree (i) to reimburse the Collateral Agent, on demand, in the amount of its pro
rata share, for any expenses referred to in §5.5 and fees due pursuant to §5.7. which shall
not have been reimbursed or paid by the Borrowers or paid from the proceeds of Collateral as
provided herein and (ii) to indemnify and hold harmless the Collateral Agent and its directors,
officers, employees and agents, on demand, in the amount of such pro rata share,
from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements referred to in §5.5, to the extent the same
shall not have been reimbursed by the Borrowers or paid from the proceeds of Collateral as provided
herein; provided that no Secured Party shall be liable to the Collateral Agent for any
portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from the gross negligence or willful misconduct of the
Collateral Agent or any of its directors, officers, employees or agents as determined by a final
non-appealable order of a court of competent jurisdiction. For the purposes of this §5.6,
pro rata shares at any time shall be determined based upon the principal amount of
loans or other credit outstanding at the time such expenses were incurred.

     5.7. Collateral Agent’s Fee. By countersigning this Agreement, the Borrowers jointly
and severally agree to pay to the Collateral Agent for the Collateral Agent’s own account, a
non-refundable Collateral Agent’s fee in the amount of $5,000 per annum on the Closing Date and on
each anniversary thereof thereafter until the Collateral has been released from any Liens securing
the Secured Obligations and the Collateral Agent no longer has any duties hereunder.

6. REPRESENTATIONS AND WARRANTIES.

     Each of the Collateral Agent, the Agent, the New Trustee, the Existing Trustee, and, by
countersigning this Agreement, the Borrowers represents and warrants to the other parties hereto
that (i) the execution, delivery and performance of this Agreement (A) have been duly authorized by
all requisite corporate action on its part and, in the case of the Agent, by the Lenders, and, in
the case of the Trustees, by the respective Indentures to which it is a party, and (B) do not
conflict with or result in any breach or contravention of any provision of law, statute, rule or
regulation to which it is subject or any judgment, order, writ, injunction, license or permit
applicable to it and will not conflict with any provision of its corporate charter or bylaws or any
agreement or other instrument binding upon it; and (ii) this Agreement has been duly executed and
delivered by it and constitutes its legal, valid and binding obligation, enforceable in accordance
with its terms.

 

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7. CERTAIN INTERCREDITOR ARRANGEMENTS.

     7.1. Turnover of Collateral. If any Secured Party acquires custody, control or
possession of any Collateral or proceeds therefrom, other than pursuant to the terms of this
Agreement, such Secured Party shall promptly cause such Collateral or proceeds to be delivered to
or put in the custody, possession or control of the Collateral Agent or, if the Collateral Agent
shall so designate, an agent of the Collateral Agent (which agent may be a branch or affiliate of
the Collateral Agent or any Lender) in the same form of payment received, with appropriate
endorsements, in the country in which such Collateral is held for distribution in accordance with
the provisions of §4. Until such time as the provisions of the immediately preceding sentence have
been complied with, such Secured Party shall be deemed to hold such Collateral and proceeds in
trust for the Collateral Agent.

     7.2. Setoffs. If any Secured Party exercises any right of setoff, banker’s lien or
similar right with respect to any Collateral for payment of any Secured Obligations, each of the
Secured Parties agrees with each other Secured Party that if such Secured Party shall receive from
the Borrowers, whether by voluntary payment, exercise of the right of setoff, counterclaim, cross
action, enforcement of the claim evidenced by the Secured Obligations held by such Secured Party by
proceedings against the Borrowers at law or in equity or by proof thereof in bankruptcy,
reorganization, liquidation, receivership or similar proceedings, or otherwise, and shall retain
and apply to the payment of the Secured Obligations held by such Secured Party any amount from the
Collateral in excess of its ratable portion of the payments received by the other Secured Parties
with respect to the Secured Obligations held by all of the Secured Parties as contemplated by this
Agreement, such Secured Party will make such disposition and arrangements with the other Secured
Parties with respect to such excess, either by way of distribution, pro tanto assignment of claims,
subrogation or otherwise as shall result in each Secured Party receiving in respect of the Secured
Obligations held by it its proportionate payment as contemplated by this Agreement;
provided that if all or any part of such excess payment is thereafter recovered from such
Secured Party, such disposition and arrangements shall be rescinded and the amount restored to the
extent of such recovery, but without interest.

8. RELEASE OR SUBORDINATION OF COLLATERAL; FREEDOM TO DEAL.

     8.1. Release of Collateral. The Collateral Agent is hereby authorized, upon receipt
of instructions from all Requisite Parties, to release any Collateral and to provide such releases
and termination statements with respect to any Collateral in connection with any sale, exchange or
other disposition thereof so long as (i) the Collateral Agent obtains a perfected security interest
in any non-cash proceeds of such sale, exchange or other disposition and (ii) any net cash proceeds
of such sale, exchange or other disposition are paid in accordance with §§4(a) or (b).

     8.2. Legally Required Releases. Whether or not so instructed by the Requisite
Parties, (i) the Collateral Agent may release any Collateral and may provide any release,
termination statement or instrument of subordination required by order of a court of competent
jurisdiction or otherwise required by applicable law and (ii) the Collateral Agent shall release
the Collateral upon any event requiring such release pursuant to Section 8.2 of the Pledge
Agreement, which includes any event requiring release of the Collateral as described in Section
12.03 of the New Indenture.

 

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9. AMENDMENT OF THIS AGREEMENT.

     9.1. General. No modification or amendment of this Agreement shall be effective
unless the same shall be in writing and signed by the Secured Party Representatives, the Collateral
Agent and the Borrowers and no modification or amendment of any Security Document shall be
effective without the written consent of the Agent, the New Trustee and the Existing Trustee;
provided, however, (i) no amendment or waiver shall adversely affect any of the
Collateral Agent’s rights, immunities or rights to indemnification hereunder or under any of the
Security Documents or expand its duties or reduce any amount payable to the Collateral Agent
hereunder or under any Security Documents without the written consent of the Collateral Agent; and
(ii) §§3, 5 and 8 of this Agreement and any other provision of this Agreement affecting the rights
and obligations of the Collateral Agent hereunder may not be amended without the written consent of
the Collateral Agent.

     9.2. Waiver. No waiver of any provision of this Agreement and no consent to any
departure by any party hereto from the provisions hereof shall be effective unless such waiver or
consent shall be set forth in a written instrument executed by the party against which it is sought
to be enforced, and then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given. No notice to or demand on any party hereto in any case shall
entitle such party to any other or further notice or demand in the same, similar or other
circumstances.

10. APPROVAL BY THE BORROWERS; BORROWERS’ OBLIGATIONS ABSOLUTE.

     By countersigning this Agreement, each of the Borrowers acknowledges and consents to and
agrees to perform and be bound by each provision of this Agreement which expressly recites that the
Borrowers are agreeing to by countersigning this Agreement. Nothing contained in this Agreement
shall impair, as between the Borrowers and each of the Secured Parties, for the benefit of the
holders of the Secured Obligations for which it acts, the obligation of the Borrowers to pay to
such Secured Party, for the benefit of the holders of the Secured Obligations for which it acts,
all amounts payable in respect of the Secured Obligations as and when the same shall become due and
payable in accordance with the terms thereof, or prevent a Secured Party (except as expressly
otherwise provided in this Agreement) from exercising all rights, powers and remedies otherwise
permitted by the Credit Documents to which it is a party and by applicable law upon a default in
the payment of the applicable Secured Obligations, all, however, subject to the terms of this
Agreement.

11. COLLATERAL AGENT AS AGENT AND LENDER.

     In its individual capacity and in its capacity as Agent, JPMorgan Chase Bank, N.A. shall have
the same obligations and the same rights, powers and privileges as it would have had were it not
also the Collateral Agent.

 

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12. MISCELLANEOUS.

     12.1. Further Assurances, etc. Each of the Agent, the New Trustee and the Existing
Trustee and, by countersigning this Agreement, the Borrowers agree to execute and deliver such
other documents and instruments, in form and substance reasonably satisfactory to the Collateral
Agent, and shall take such other action, in each case as the Collateral Agent or any Secured Party
may reasonably request (at the sole cost and expense of the Borrowers which, by countersigning this
Agreement, jointly and severally agree to pay such reasonable costs and expenses), to effectuate
and carry out the provisions of this Agreement including, without limitation, by recording or
filing in such places as the requesting party may deem desirable, this Agreement or such other
documents or instruments.

     12.2. No Individual Action; Marshaling; etc. No holder of any Secured Obligations may
require the Collateral Agent to take or refrain from taking any action hereunder or under any of
the Security Documents or with respect to any of the Collateral except as and to the extent
expressly set forth in this Agreement. The Collateral Agent shall have no duty to, and the Secured
Parties hereby waive any and all right to require the Collateral Agent to, marshal any assets or
otherwise to take any actions with respect to marshaling.

     12.3. Successors and Assigns. This Agreement shall be binding on and inure to the
benefit of the Collateral Agent, each of the Lenders, the Agent, the New Trustee, the Existing
Trustee and each of the Debenture Debt holders and their respective successors and permitted
assigns and shall be binding on the Borrowers and their respective successors and permitted
assigns. Each Trustee acknowledges that the provisions of this Agreement apply to each of the
holders of Debentures for which such Trustee acts regardless of any sale, transfer, pledge,
assignment, hypothecation or other disposition by such Debenture holder to any person or entity.

     12.4. Notices. All notices and other communications made or required to be given
pursuant to this Agreement or the Security Documents shall be in writing and shall be delivered in
hand, mailed by United States registered or certified first class mail, postage prepaid, sent by
overnight courier or sent by telegraph, telecopy, facsimile or telex, confirmed by delivery via
courier or postal service addressed as follows:

	 	 	 	 	 	 	 
	(a)	 	if to the Agent, at
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	JPMorgan Chase Bank, N.A.
	 

	 	 	 	 	 	277 Park Avenue, 3rd Floor
	 

	 	 	 	 	 	New York, New York 10172
	 
	 	 	 	 	 	 
	 	 	 	 	Attention: Donald Shokrian;

 

-17-

	 	 	 	 	 	 	 
	(b)	 	if to the New Trustee, at
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	U.S. Bank National Association
	 

	 	 	 	 	 	60 Livingston Avenue
	 

	 	 	 	 	 	EP-MN-WS3C
	 

	 	 	 	 	 	St. Paul, MN 55107-2292
	 
	 	 	 	 	 	 
	 	 	 	 	Attention: Richard Prokosch;
	 
	 	 	 	 	 	 
	(c)	 	if to the Existing Trustee, at
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	U.S. Bank National Association
	 

	 	 	 	 	 	25 Park Place, 24th Floor
	 

	 	 	 	 	 	Mail Code 008
	 

	 	 	 	 	 	Atlanta, Georgia 30303-2900
	 
	 	 	 	 	 	 
	 	 	 	 	Attention: George Hogan;
	 
	 	 	 	 	 	 
	(d)
 	 	if to the Collateral Agent, at
	 

	 	 	 	 	 	JPMorgan Chase Bank, N.A.
	 

	 	 	 	 	 	277 Park Avenue, 3rd Floor
	 

	 	 	 	 	 	New York, New York 10172
	 
	 	 	 	 	 	 
	 	 	 	 	Attention: Donald Shokrian; and
	 
	 	 	 	 	 	 
	(e)	 	if to the Borrowers or Pledgor, at
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	545 E. John Carpenter Freeway
	 

	 	 	 	 	 	Suite 1300
	 

	 	 	 	 	 	Irving, Texas 75002
	 
	 	 	 	 	 	 
	 	 	 	 	Attention: General Counsel

Any such notice and other communications shall be deemed to have been duly given or made and to
have become effective (i) if delivered by hand, overnight courier or facsimile to a responsible
officer of the party to which it is directed, at the time of the receipt thereof by such officer or
the sending of such facsimile and (ii) if mailed, sent by registered or certified first class mail
postage prepaid, on the third Business Day following the mailing thereof; provided,
however, that a Notice of Actionable Default or any other notice to be delivered to the
Collateral Agent pursuant to the terms of this Agreement shall not be deemed to have been received
by the Collateral Agent until the Collateral Agent actually receives such notice.

     12.5. Termination. Upon (i) receipt by the Collateral Agent from the New Trustee of
notice that (A) the New Debenture Debt has been paid in full in cash or defeased in accordance with
the New Indenture or (B) the security interest in the Collateral otherwise shall have been released
by the New Trustee in accordance with the New Indenture or the New Debenture Debt

 

-18-

otherwise no longer constitutes Secured Obligations under the Security Documents, and (ii)
payment in full in cash of all amounts payable to the Collateral Agent pursuant to §§5.5 and 5.7,
any remaining Liens created by the Security Documents shall terminate forthwith and all right,
title and interest in the Collateral shall revert to the Borrowers and their successors and
assigns.

     12.5.1. Actions of Collateral Agent. Upon the termination of the Collateral
Agent’s Liens and the release of the Collateral in accordance with subsection (a) of this
Section, the Collateral Agent will promptly at the Borrowers’ written request and expense,
(i) execute and deliver to the Borrowers or the Pledgor such documents as the Borrowers or
the Pledgor shall reasonably request to evidence the termination of such security interest
or the release of the Collateral and (ii) deliver or cause to be delivered to the Borrowers
or the Pledgor all property of the Borrowers and the Pledgor constituting Collateral and
then held by Collateral Agent or any agent thereof.

     12.5.2. Survival of Agreement. Notwithstanding any termination of Liens and
release of Collateral, §§5.5 and 5.6 of this Agreement shall survive, and remain operative
and in full force and effect.

     12.6. Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO CONFLICT OF LAWS) AND SHALL BE
A SEALED INSTRUMENT UNDER SUCH LAWS. THE PARTIES AGREE THAT ANY SUIT FOR THE ENFORCEMENT OF THIS
AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING
THEREIN AND CONSENT TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE OF PROCESS IN ANY
SUCH SUIT BEING MADE UPON THE PARTIES BY MAIL AT THE ADDRESSES SPECIFIED IN §12.4. THE PARTIES
HEREBY WAIVE ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY
SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT COURT.

     12.7. Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY WAIVES ITS RIGHT TO A
JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS
AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER, OR THE PERFORMANCE OF ANY SUCH RIGHTS AND
OBLIGATIONS. Except as prohibited by law, each of the parties hereto hereby waive any right which
it may have to claim or recover in any litigation referred to in the preceding sentence any
special, exemplary, punitive or consequential damages or any damages other than, or in addition to,
actual damages. Each of the parties hereto (i) certifies that neither the Collateral Agent, the
Agent, the Lenders, the New Trustee or the Existing Trustee nor any representative, agent or
attorney of the Collateral Agent, the Agent, the Lenders, the New Trustee or the Existing Trustee
has represented, expressly or otherwise, that the Collateral Agent would not, in the event of
litigation, seek to enforce the foregoing waivers, and (ii) acknowledges that, in entering into
this Agreement, the Collateral Agent, the Agent, the Lenders, the New Trustee and the Existing
Trustee are relying upon, among other things, the waivers and certifications contained in this
§12.7.

 

-19-

     12.8. Waiver of Rights. Neither any failure nor any delay on the part of any party
hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof, and
a single or partial exercise thereof shall not preclude any other or further exercise or the
exercise of any other right, power or privilege.

     12.9. Severability. In case any one or more of the provisions contained in this
Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any way be affected or
impaired thereby. The parties shall endeavor in good faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions the economic effect of which comes as
close as possible to that of the invalid, illegal or unenforceable provision.

     12.10. Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall constitute an original, but all of which, when taken together, shall constitute but
one instrument. Delivery of an executed counterpart of a signature page of this Agreement by
telecopy shall be effective as delivery of a manually executed counterpart of this Agreement.

     12.11. Section Headings. The section headings used herein are for convenience of
reference only and are not to affect the construction of or be taken into consideration in
interpreting this Agreement.

     12.12. Complete Agreement. This Agreement constitutes the entire agreement among the
parties hereto with respect to the subject matter hereof and supersedes all prior representations,
negotiations, writings, memoranda and agreements. To the extent any provision of this Agreement
conflicts with the Credit Agreement, the Indentures or any other Credit Document, as among the
Secured Parties the provisions of this Agreement shall be controlling. Nothing in this Agreement,
expressed or implied, is intended to confer upon any person other than the parties hereto and the
Secured Parties any rights or remedies under or by reason of this Agreement.

     12.13. Limitation of Liability. The Pledgor has been formed under the laws of the
Commonwealth of Massachusetts pursuant to a Declaration of Trust dated as of July 31, 2002. In
accordance with the Declaration of Trust, none of the shareholders, trustees or officers of the
Pledgor shall be personally liable for the obligations arising under this Agreement, and the
Collateral Agent shall look solely to the trust estate comprising the Pledgor for the payment of
any claim under such obligations or for the performance of such obligations.

[Remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, the Collateral Agent, the Agent, the Lenders, the New Trustee, the
Existing Trustee and the Borrowers have caused this Agreement to be duly executed by their duly
authorized officers, all as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., in its capacity as Agent
and Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Donald Shokrian	 	 
	 

	 	Name:
	 	 
Donald
Shokrian
	 	 
	 

	 	Title:
	 	 
Managing
Director
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee under the
New Indenture	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Richard Prokosch	 	 
	 

	 	Name:
	 	 
Richard Prokosch
	 	 
	 

	 	Title:
	 	 
Vice
President
	 	 
	 

	 	 	 	 

	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee under the
Existing Indentures	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Hogan	 	 
	 

	 	Name:
	 	 
George Hogan
	 	 
	 

	 	Title:
	 	 
Vice
President
	 	 
	 

	 	 	 	 

	 	 

 

 

	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 
	 
	 	 	 	 
	FELCOR LODGING TRUST INCORPORATED	 	 
	 
	 	 	 	 
	By:
	 	/s/ Jonathan H. Yellen	 	 
	Name:
	 	
Jonathan H. Yellen
	 	 
	Title:
	 	
Executive Vice President, General Counsel and Secretary
	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	FELCOR LODGING LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 
	By:
	 	/s/ Jonathan H. Yellen	 	 
	Name:

	 	
Jonathan H. Yellen
	 	 
	Title:

	 	
Executive Vice President, General Counsel and Secretary
	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	FELCOR HOLDINGS TRUST	 	 
	 
	 	 	 	 
	By:
	 	/s/ Lester C. Johnson	 	 
	Name:

	 	
Lester
C. Johnson
	 	 
	Title:

	 	 

Trustee
	 	 
	 
	 	 	 	 
	By:
	 	/s/ Larry J. Mundy	 	 
	Name:

	 	;
Larry J. Mundy
	 	 
	Title:

	 	 

Trustee

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