Document:

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                                                                   EXHIBIT 10.27

                          REGISTRATION RIGHTS AGREEMENT

                             Dated December 3, 2001

                                      AMONG

                       FELCOR LODGING LIMITED PARTNERSHIP,

                        FELCOR LODGING TRUST INCORPORATED

                                       and

                        THE PLACEMENT AGENTS NAMED HEREIN

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                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT") is made and
entered into as of December 3, 2001, among FELCOR LODGING LIMITED PARTNERSHIP, a
Delaware limited partnership (the "OPERATING PARTNERSHIP"), FELCOR LODGING TRUST
INCORPORATED, a Maryland corporation ("FELCOR" and, together with the Operating
Partnership, the "COMPANY"), and DEUTSCHE BANC ALEX. BROWN INC., J.P. MORGAN
SECURITIES INC., BANC OF AMERICA SECURITIES LLC, MORGAN STANLEY & CO.
INCORPORATED and SALOMON SMITH BARNEY INC., as placement agents (collectively,
the "PLACEMENT AGENTS").

         This Agreement is made pursuant to the Placement Agreement dated as of
November 16, 2001, between the Operating Partnership, FelCor and the Placement
Agents (the "PLACEMENT AGREEMENT"), which provides for the sale by the Operating
Partnership to the Placement Agents of $100,000,000 aggregate principal amount
of 9 1/2% Senior Notes due 2008 of the Operating Partnership (the "NOTES") to be
issued pursuant to the Indenture (as defined below). The Notes will be
guaranteed by FelCor and the Subsidiary Guarantors (as defined herein) so long
as they are obligors on other indebtedness of FelCor and the Operating
Partnership which is pari passu with or subordinated to the Notes. In order to
induce the Placement Agents to enter into the Placement Agreement, the Company
has agreed to provide to the Placement Agents and their direct and indirect
transferees the registration rights with respect to the Notes set forth in this
Agreement. The execution of this Agreement is a condition to the closing under
the Placement Agreement.

         In consideration of the foregoing, the parties hereto agree as follows:

         1. Definitions. As used in this Agreement, the following capitalized
defined terms shall have the following meanings:

         "1933 ACT" shall mean the Securities Act of 1933, as amended from time
to time.

         "1934 ACT" shall mean the Securities Exchange Act of 1934, as amended
from time to time.

         "CLOSING DATE" shall mean the Closing Date as defined in the Placement
Agreement.

         "COMPANY" shall have the meaning set forth in the preamble to this
Agreement and shall also include the Company's successors.

         "EXCHANGE NOTES" shall mean Notes issued by the Operating Partnership
under the Indenture containing terms identical to the Notes (except that (i)
interest thereon shall accrue from the last date on which interest was paid on
the Notes or, if no such interest has been paid, from December 3, 2001, (ii) the
Exchange Notes will not contain restrictions on transfer and (iii) certain
provisions relating to an increase in the stated rate of interest thereon shall
be eliminated) and to be offered to Holders of Notes in exchange for Notes
pursuant to the Exchange Offer.

         "EXCHANGE OFFER" shall mean the exchange offer by the Company of
Exchange Notes for Registrable Notes pursuant to Section 2(a) hereof.

         "EXCHANGE OFFER REGISTRATION" shall mean a registration under the 1933
Act effected pursuant to Section 2(a) hereof.

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                                      -2-

         "EXCHANGE OFFER REGISTRATION STATEMENT" shall mean an exchange offer
registration statement on Form S-4 (or, if applicable, on another appropriate
form) and all amendments and supplements to such registration statement, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

         "HOLDER" shall mean the Placement Agents, for so long as any of them
own any Registrable Notes, and their successors, assigns and direct and indirect
transferees who become registered owners of Registrable Notes under the
Indenture; provided that for purposes of Sections 4 and 5 of this Agreement, the
term "Holder" shall include Participating Broker-Dealers (as defined in Section
4(a)).

         "INDENTURE" shall mean the Indenture relating to the Notes dated as of
September 15, 2000 between the Operating Partnership, FelCor, the Subsidiary
Guarantors and SunTrust Bank, as trustee, and as the same may be amended or
supplemented from time to time in accordance with the terms thereof.

         "MAJORITY HOLDERS" shall mean the Holders of a majority of the
aggregate principal amount of outstanding Registrable Notes; provided that
whenever the consent or approval of Holders of a specified percentage of
Registrable Notes is required hereunder, Registrable Notes held by the Company
or any of its affiliates (as such term is defined in Rule 405 under the 1933
Act) (other than the Placement Agents or subsequent holders of Registrable Notes
if such subsequent holders are deemed to be such affiliates solely by reason of
their holding of such Registrable Notes) shall not be counted in determining
whether such consent or approval was given by the Holders of such required
percentage or amount.

         "NOTES" shall have the meaning set forth in the second paragraph of
this Agreement.

         "PERSON" shall mean an individual, partnership, corporation, trust or
unincorporated organization, or a government or agency or political subdivision
thereof.

         "PLACEMENT AGENTS" shall have the meaning set forth in the preamble to
this Agreement.

         "PLACEMENT AGREEMENT" shall have the meaning set forth in the second
paragraph of this Agreement.

         "PROSPECTUS" shall mean the prospectus included in a Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including a prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Notes covered by a Shelf Registration Statement, and by all other
amendments and supplements to such prospectus, including post-effective
amendments, and in each case including all material incorporated by reference
therein.

         "REGISTRABLE NOTES" shall mean the Notes other than the Exchanges
Notes; provided, however, that a Note shall cease to be a Registrable Note (i)
when a Registration Statement with respect to such Note shall have been declared
effective under the 1933 Act and such Note shall have been disposed of pursuant
to such Registration Statement, (ii) when such Note has been sold to the public
pursuant to Rule 144(k) (or any similar provision then in force, but not Rule
144A) under the 1933 Act or (iii) when such Note shall have ceased to be
outstanding.

         "REGISTRATION EXPENSES" shall mean any and all expenses incident to
performance of or compliance by the Company with this Agreement, including
without limitation: (i) all SEC, stock exchange or National Association of
Securities Dealers, Inc. (the "NASD") registration and filing fees, (ii) all
fees and expenses incurred in connection with compliance with state securities
or blue sky laws (including reasonable fees and disbursements of counsel for any
underwriters or Holders in connection with blue sky qualification of any of the
Exchange Notes or Registrable Notes), (iii) all expenses of any Persons in
preparing or assisting in preparing, word proc-

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                                      -3-

essing, printing and distributing any Registration Statement, any Prospectus,
any amendments or supplements thereto, any underwriting agreements, securities
sales agreements and other documents relating to the performance of and
compliance with this Agreement, (iv) all rating agency fees, (v) all fees and
disbursements relating to the qualification of the Indenture under applicable
securities laws, (vi) the fees and disbursements of the Trustee and its counsel,
(vii) the fees and disbursements of counsel for the Company and, in the case of
a Shelf Registration Statement, the reasonable fees and disbursements of one
counsel for the Holders (which counsel shall be selected by the Majority Holders
and which counsel may also be counsel for the Placement Agents) and (viii) the
fees and disbursements of the independent public accountants of the Company,
including the expenses of any special audits or "cold comfort" letters required
by or incident to such performance and compliance, but excluding fees and
expenses of counsel to the underwriters (other than reasonable fees and expenses
set forth in clause (ii) above) or the Holders and underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of
Registrable Notes by a Holder.

         "REGISTRATION STATEMENT" shall mean any registration statement of
FelCor and the Operating Partnership that covers any of the Exchange Notes or
Registrable Notes pursuant to the provisions of this Agreement and all
amendments and supplements to any such Registration Statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated by reference
therein.

         "SEC" shall mean the Securities and Exchange Commission.

         "SHELF REGISTRATION" shall mean a registration effected pursuant to
Section 2(b) hereof.

         "SHELF REGISTRATION STATEMENT" shall mean a "shelf" registration
statement of the Company pursuant to the provisions of Section 2(b) of this
Agreement which covers all of the Registrable Notes (but no other Notes unless
approved by the Holders whose Registrable Notes are covered by such Shelf
Registration Statement) on an appropriate form under Rule 415 under the 1933
Act, or any similar rule that may be adopted by the SEC, and all amendments and
supplements to such registration statement, including post-effective amendments,
in each case including the Prospectus contained therein, all exhibits thereto
and all material incorporated by reference therein.

         "SUBSIDIARY GUARANTORS" shall mean each of (i) FelCor/CSS Hotels,
L.L.C., a Delaware limited liability company, (ii) FelCor/LAX Hotels, L.L.C., a
Delaware limited liability company, (iii) FelCor/CSS Holdings, L.P., a Delaware
limited partnership, (iv) FelCor/St. Paul Holdings, L.P., a Delaware limited
partnership, (v) FelCor/LAX Holdings, L.P., a Delaware limited partnership, (vi)
FelCor Eight Hotels, L.L.C., a Delaware limited liability company, (vii) FelCor
Hotel Asset Company, L.L.C., a Delaware limited liability company, (viii) FelCor
Nevada Holdings L.L.C., a Nevada limited liability company, (ix) FHAC Nevada
Holdings, L.L.C., a Nevada limited liability company, (x) FHAC Texas Holdings,
L.P., a Texas limited partnership, (xi) FelCor Omaha Hotel Company, L.L.C., a
Delaware limited liability company, (xii) FelCor Country Villa Hotel, L.L.C., a
Delaware limited liability company, (xiii) FelCor Moline Hotel, L.L.C., a
Delaware limited liability company, (xiv) FelCor Canada Co., a Nova Scotia
unlimited liability company, (xv) Kingston Plantation Development Corp., a
Delaware corporation, and (xvi) FelCor TRS Holdings, L.P., a Delaware limited
partnership, and each other entity that becomes a Subsidiary Guarantor in
accordance with the terms of the Indenture.

         "TRUSTEE" shall mean the trustee with respect to the Notes under the
Indenture.

         "UNDERWRITTEN REGISTRATION" or "UNDERWRITTEN OFFERING" shall mean a
registration in which Registrable Notes are sold to an Underwriter (as
hereinafter defined) for reoffering to the public.

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         2. Registration Under The 1933 Act. (a) To the extent not prohibited by
any applicable law or applicable interpretation of the Staff of the SEC, the
Company shall cause to be filed after the Closing Date an Exchange Offer
Registration Statement covering the offer by the Company to the Holders to
exchange all of the Registrable Notes for Exchange Notes, use its best efforts
to have such Registration Statement declared effective by the SEC, and to have
such Exchange Offer Registration Statement remain effective until the closing of
the Exchange Offer. The Company shall commence the Exchange Offer promptly after
the Exchange Offer Registration Statement has been declared effective by the SEC
and use its best efforts to have the Exchange Offer consummated not later than
180 days after the Closing Date. The Company shall commence the Exchange Offer
by mailing the related exchange offer Prospectus and accompanying documents to
each Holder stating, in addition to such other disclosures as are required by
applicable law:

                  (i) that the Exchange Offer is being made pursuant to this
         Agreement and that all Registrable Notes validly tendered will be
         accepted for exchange;

                 (ii) the dates of acceptance for exchange (which shall be a
         period of at least 20 business days from the date such notice is
         mailed) (the "EXCHANGE DATES");

                (iii) that any Registrable Note not tendered will remain
         outstanding and continue to accrue interest in accordance with the
         terms of the Notes, but will not retain any rights under this
         Registration Rights Agreement;

                 (iv) that Holders electing to have a Registrable Note exchanged
         pursuant to the Exchange Offer will be required to surrender such
         Registrable Note, together with the enclosed letters of transmittal, to
         the institution and at the address located in the Borough of Manhattan,
         The City of New York, specified in the notice prior to the close of
         business on the last Exchange Date; and

                  (v) that Holders will be entitled to withdraw their election,
         not later than the close of business on the last Exchange Date, by
         sending to the institution and at the address located in the Borough of
         Manhattan, The City of New York, specified in the notice a telegram,
         telex, facsimile transmission or letter setting forth the name of such
         Holder, the principal amount of Registrable Notes delivered for
         exchange and a statement that such Holder is withdrawing his election
         to have such Notes exchanged.

         As soon as practicable after the last Exchange Date, the Company shall:

                  (i) accept for exchange Registrable Notes or portions thereof
         tendered and not validly withdrawn pursuant to the Exchange Offer; and

                 (ii) deliver, or cause to be delivered, to the Trustee for
         cancellation all Registrable Notes or portions thereof so accepted for
         exchange by the Company and issue, and cause the Trustee to promptly
         authenticate and mail to each Holder, an Exchange Note equal in
         principal amount to the principal amount of the Registrable Notes
         surrendered by such Holder.

The Company shall use its best efforts to complete the Exchange Offer as
provided above and shall comply with the applicable requirements of the 1933
Act, the 1934 Act and other applicable laws and regulations in connection with
the Exchange Offer. The Exchange Offer shall not be subject to any conditions,
other than that the Exchange Offer does not violate applicable law or any
applicable interpretation of the Staff of the SEC. The Company shall inform the
Placement Agents, if requested by the Placement Agents, of the names and
addresses of the

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Holders to whom the Exchange Offer is made, and the Placement Agents shall have
the right, subject to applicable law, to contact such Holders and otherwise
facilitate the tender of Registrable Notes in the Exchange Offer.

                  (b) In the event that (i) the Company determines that the
Exchange Offer Registration provided for in Section 2(a) above is not available
or may not be consummated as soon as practicable after the last Exchange Date
because it would violate applicable law or the applicable interpretations of the
Staff of the SEC, (ii) the Exchange Offer is not for any other reason
consummated on or prior to 180 days after the Closing Date, or (iii) in the
opinion of counsel for the Placement Agents a Registration Statement must be
filed and a Prospectus must be delivered by the Placement Agents in connection
with any offering or sale of Registrable Notes, the Company shall cause to be
filed as soon as practicable after such determination, date or notice of such
opinion of counsel is given to the Company, a Shelf Registration Statement
providing for the sale by the Holders of all of the Registrable Notes and use
its best efforts to have such Shelf Registration Statement declared effective by
the SEC. In the event the Company is required to file a Shelf Registration
Statement solely as a result of the matters referred to in clause (iii) of the
preceding sentence, the Company shall file and use its best efforts to have
declared effective by the SEC both an Exchange Offer Registration Statement
pursuant to Section 2(a) with respect to all Registrable Notes and a Shelf
Registration Statement (which may be a combined Registration Statement with the
Exchange Offer Registration Statement) with respect to offers and sales of
Registrable Notes held by such Placement Agents after completion of the Exchange
Offer. The Company agrees to use its best efforts to keep the Shelf Registration
Statement continuously effective until the expiration of the period referred to
in Rule 144(k) with respect to all Registrable Notes covered by the Shelf
Registration Statement or such shorter period that will terminate when all of
the Registrable Notes covered by the Shelf Registration Statement have been sold
pursuant to the Shelf Registration Statement. The Company further agrees to
supplement or amend the Shelf Registration Statement if required by the rules,
regulations or instructions applicable to the registration form used by the
Company for such Shelf Registration Statement or by the 1933 Act or by any other
rules and regulations thereunder for shelf registration or if reasonably
requested by a Holder with respect to information relating to such Holder, and
to use its best efforts to cause any such amendment to become effective and such
Shelf Registration Statement to become usable as soon as thereafter practicable.
The Company agrees to furnish to the Holders of Registrable Notes copies of any
such supplement or amendment promptly after its being used or filed with the
SEC.

                  (c) The Company shall pay all Registration Expenses in
connection with the registration pursuant to Section 2(a) or Section 2(b). Each
Holder shall pay all underwriting discounts and commissions and transfer taxes,
if any, relating to the sale or disposition of such Holder's Registrable Notes
pursuant to the Shelf Registration Statement.

                  (d) An Exchange Offer Registration Statement pursuant to
Section 2(a) hereof or a Shelf Registration Statement pursuant to Section 2(b)
hereof will not be deemed to have become effective unless it has been declared
effective by the SEC; provided, however, that, if, after it has been declared
effective, the offering of Registrable Notes pursuant to a Shelf Registration
Statement is interfered with by any stop order, injunction or other order or
requirement of the SEC or any other governmental agency or court, such
Registration Statement will be deemed not to have become effective during the
period of such interference until the offering of Registrable Notes pursuant to
such Registration Statement may legally resume. As provided for in the
Indenture, in the event that the Exchange Offer is not consummated, and if a
Shelf Registration Statement is required hereby, the Shelf Registration
Statement is not declared effective on or prior to 180 days after the Closing
Date, the interest rate on the Notes (and the Exchange Notes) will increase by
0.5% per annum until the Exchange Offer is consummated or a Shelf Registration
Statement is declared effective.

                  (e) Without limiting the remedies available to the Placement
Agents and the Holders, the Company acknowledges that any failure by the Company
to comply with its obligations under Section 2(a) and

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                                      -6-

Section 2(b) hereof may result in material irreparable injury to the Placement
Agents or the Holders for which there is no adequate remedy at law, that it will
not be possible to measure damages for such injuries precisely and that, in the
event of any such failure, the Placement Agents or any Holder may obtain such
relief as may be required to specifically enforce the Company's obligations
under Section 2(a) and Section 2(b) hereof.

         3. Registration Procedures. In connection with the obligations of the
Company with respect to the Registration Statements pursuant to Section 2(a) and
Section 2(b) hereof, the Company shall as expeditiously as possible:

                  (a) prepare and file with the SEC a Registration Statement on
         the appropriate form under the 1933 Act, which form (x) shall be
         selected by the Company and (y) shall, in the case of a Shelf
         Registration, be available for the sale of the Registrable Notes by the
         selling Holders thereof and (z) shall comply as to form in all material
         respects with the requirements of the applicable form and include all
         financial statements required by the SEC to be filed therewith, and use
         its best efforts to cause such Registration Statement to become
         effective and remain effective in accordance with Section 2 hereof;

                  (b) prepare and file with the SEC such amendments and
         post-effective amendments to each Registration Statement as may be
         necessary to keep such Registration Statement effective for the
         applicable period and cause each Prospectus to be supplemented by any
         required prospectus supplement and, as so supplemented, to be filed
         pursuant to Rule 424 under the 1933 Act; to keep each Prospectus
         current during the period described under Section 4(3) and Rule 174
         under the 1933 Act that is applicable to transactions by brokers or
         dealers with respect to the Registrable Notes or Exchanges Notes;

                  (c) in the case of a Shelf Registration, furnish to each
         Holder of Registrable Notes, to counsel for the Placement Agents, to
         counsel for the Holders and to each Underwriter of an Underwritten
         Offering of Registrable Notes, if any, without charge, as many copies
         of each Prospectus, including each preliminary Prospectus, and any
         amendment or supplement thereto and such other documents as such Holder
         or Underwriter may reasonably request, in order to facilitate the
         public sale or other disposition of the Registrable Notes; and the
         Company consents to the use of such Prospectus and any amendment or
         supplement thereto in accordance with applicable law by each of the
         selling Holders of Registrable Notes and any such Underwriters in
         connection with the offering and sale of the Registrable Notes covered
         by and in the manner described in such Prospectus or any amendment or
         supplement thereto in accordance with applicable law;

                  (d) use its reasonable best efforts to register or qualify the
         Registrable Notes under all applicable state securities or "blue sky"
         laws of such jurisdictions as any Holder of Registrable Notes covered
         by a Registration Statement shall reasonably request in writing by the
         time the applicable Registration Statement is declared effective by the
         SEC, to cooperate with such Holders in connection with any filings
         required to be made with the NASD and do any and all other acts and
         things which may be reasonably necessary or advisable to enable such
         Holder to consummate the disposition in each such jurisdiction of such
         Registrable Notes owned by such Holder; provided, however, that the
         Company shall not be required to (i) qualify as a foreign corporation
         or as a broker or dealer in securities in any jurisdiction where it
         would not otherwise be required to qualify but for this Section 3(d),
         (ii) file any general consent to service of process or (iii) subject
         itself to taxation in any such jurisdiction that it is already not so
         subject;

                  (e) in the case of a Shelf Registration, notify each Holder of
         Registrable Notes, counsel for the Holders and counsel for the
         Placement Agents promptly and, if requested by any such Holder or
         counsel, confirm such advice in writing (i) when such Registration
         Statement has become effective and

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                                      -7-

         when any post-effective amendment thereto has been filed and becomes
         effective, (ii) of any request by the SEC or any state securities
         authority for amendments and supplements to such Registration Statement
         and Prospectus or for additional information after such Registration
         Statement has become effective, (iii) of the issuance by the SEC or any
         state securities authority of any stop order suspending the
         effectiveness of such Registration Statement or the initiation of any
         proceedings for that purpose, (iv) if, between the effective date of
         such Registration Statement and the closing of any sale of Registrable
         Notes covered thereby, the representations and warranties of the
         Company contained in any underwriting agreement, securities sales
         agreement or other similar agreement, if any, relating to the offering
         cease to be true and correct in any material respect or if the Company
         receives any notification with respect to the suspension of the
         qualification of the Registrable Notes for sale in any jurisdiction or
         the initiation of any proceeding for such purpose, (v) of the happening
         of any event during the period a Shelf Registration Statement is
         effective such that such Registration Statement or the related
         Prospectus contains an untrue statement of a material fact or omits to
         state a material fact required to be stated therein or necessary to
         make statements therein not misleading and (vi) of any determination by
         the Company that a post-effective amendment to such Registration
         Statement would be appropriate;

                  (f) make every reasonable effort to obtain the withdrawal of
         any order suspending the effectiveness of a Registration Statement at
         the earliest possible moment and provide immediate notice to each
         Holder of the withdrawal of any such order;

                  (g) in the case of a Shelf Registration, furnish to each
         Holder of Registrable Notes, without charge, at least one conformed
         copy of each Registration Statement and any post-effective amendment
         thereto (without documents incorporated therein by reference or
         exhibits thereto, unless requested);

                  (h) in the case of a Shelf Registration, cooperate with the
         selling Holders of Registrable Notes to facilitate the timely
         preparation and delivery of certificates representing Registrable Notes
         to be sold and not bearing any restrictive legends and enable such
         Registrable Notes to be in such denominations (consistent with the
         provisions of the Indenture) and registered in such names as the
         selling Holders may reasonably request at least one business day prior
         to the closing of any sale of Registrable Notes;

                  (i) in the case of a Shelf Registration, upon the occurrence
         of any event contemplated by Section 3(e)(v) or (vi) hereof, use its
         best efforts to prepare and file with the SEC a supplement or
         post-effective amendment to a Registration Statement or the related
         Prospectus or any document incorporated therein by reference or file
         any other required document so that, as thereafter delivered to the
         purchasers of the Registrable Notes, such Prospectus will not contain
         any untrue statement of a material fact or omit to state a material
         fact necessary to make the statements therein, in the light of the
         circumstances under which they were made, not misleading. The Company
         agrees to notify the Holders to suspend use of the Prospectus as
         promptly as practicable after the occurrence of such an event, and the
         Holders hereby agree to suspend use of the Prospectus upon receipt of
         such notice until the Company has amended or supplemented the
         Prospectus to correct such misstatement or omission;

                  (j) a reasonable time prior to the filing of any Registration
         Statement, any Prospectus, any amendment to a Registration Statement or
         amendment or supplement to a Prospectus or any document which is to be
         incorporated by reference into a Registration Statement or a Prospectus
         after initial filing of a Registration Statement, provide copies of
         such document to the Placement Agents and their counsel, upon request,
         (and, in the case of a Shelf Registration Statement, the Holders and
         their counsel) and make such of the representatives of the Company as
         shall be reasonably requested by the Placement

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                                      -8-

         Agents or their counsel (and, in the case of a Shelf Registration
         Statement, the Holders or their counsel) available for discussion of
         such document, and shall not at any time file or make any amendment to
         the Registration Statement, any Prospectus or any amendment of or
         supplement to a Registration Statement or a Prospectus or any document
         which is to be incorporated by reference into a Registration Statement
         or a Prospectus, of which the Placement Agents and their counsel (and,
         in the case of a Shelf Registration Statement, the Holders and their
         counsel) shall not have previously been advised and furnished a copy or
         to which the Placement Agents or their counsel (and, in the case of a
         Shelf Registration Statement, the Holders or their counsel) shall
         reasonably object;

                  (k) to cause the Indenture to be qualified under the Trust
         Indenture Act of 1939, as amended (the "TIA"), in connection with the
         registration of the Exchange Notes or Registrable Notes, as the case
         may be, cooperate with the Trustee and the Holders to effect such
         changes to the Indenture as may be required for the Indenture to be so
         qualified in accordance with the terms of the TIA and execute, and use
         its reasonable best efforts to cause the Trustee to execute, all
         documents as may be required to effect such changes and all other forms
         and documents required to be filed with the SEC to enable the Indenture
         to be so qualified in a timely manner;

                  (l) in the case of a Shelf Registration, make available for
         inspection by a representative of the Holders of the Registrable Notes,
         any Underwriter participating in any disposition pursuant to such Shelf
         Registration Statement, and attorneys and accountants designated by the
         Holders, at reasonable times and in a reasonable manner, all financial
         and other records, pertinent documents and properties of the Company,
         and cause the respective officers, directors and employees of the
         Company to supply all information reasonably requested by any such
         representative, Underwriter, attorney or accountant in connection with
         a Shelf Registration Statement;

                  (m) in the case of a Shelf Registration, use its best efforts
         to cause all Registrable Notes to be listed on any securities exchange
         or any automated system on which similar securities issued by FelCor or
         the Operating Partnership are then listed if requested by the Majority
         Holders, to the extent such Registrable Notes satisfy applicable
         listing requirements;

                  (n) use its best efforts to cause the Exchange Notes or
         Registrable Notes, as the case may be, to be rated by two nationally
         recognized statistical rating organizations (as such term is defined in
         Rule 436(g)(2) under the 1933 Act);

                  (o) if reasonably requested by any Holder of Registrable Notes
         covered by a Registration Statement in order to accurately reflect
         information regarding such Holder or such Holder's plan of distribution
         as required by such Registration Statement, (i) promptly incorporate in
         a Prospectus supplement or post-effective amendment such required
         information with respect to such Holder as such Holder reasonably
         requests to be included therein and (ii) make all required filings of
         such Prospectus supplement or such post-effective amendment as soon as
         the Company has received notification of the matters to be incorporated
         in such filing; and

                  (p) in the case of a Shelf Registration, use its reasonable
         best efforts to enter into such customary agreements and take all such
         other actions in connection therewith (including those requested by the
         Holders of a majority of the Registrable Notes being sold) in order to
         expedite or facilitate the disposition of such Registrable Notes
         including, but not limited to, an Underwritten Offering and in such
         connection, (i) to the extent possible, make such representations and
         warranties to the Holders and any Underwriters of such Registrable
         Notes with respect to the business of the Company and its subsidiaries,
         the Registration Statement, Prospectus and documents incorporated by
         reference or deemed incorpo-

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                                      -9-

         rated by reference, if any, in each case, in form, substance and scope
         as are customarily made by issuers to underwriters in Underwritten
         Offerings (but in no event more onerous to the Company than those
         contained in the Placement Agreement), and confirm the same if and when
         requested, (ii) obtain opinions of counsel to the Company (which
         counsel and opinions, in form, scope and substance, shall be reasonably
         satisfactory to the Holders and such Underwriters and their respective
         counsel) addressed to each selling Holder and Underwriter of
         Registrable Notes covering the matters customarily covered in opinions
         requested in Underwritten Offerings (but in no event more onerous to
         the Company than those opinions required in the Placement Agreement),
         (iii) obtain "cold comfort" letters from the independent certified
         public accountants of FelCor and the Operating Partnership (and, if
         necessary, any other certified public accountant of any subsidiary of
         the Company, or of any business acquired by the Company for which
         financial statements and financial data are or are required to be
         included in the Registration Statement) addressed to each selling
         Holder and Underwriter of Registrable Notes, such letters to be in
         customary form and covering matters of the type customarily covered in
         "cold comfort" letters in connection with Underwritten Offerings, and
         (iv) deliver such documents and certificates as may be reasonably
         requested by the Holders of a majority in principal amount of the
         Registrable Notes being sold or the Underwriters, and which are
         customarily delivered in Underwritten Offerings, to evidence the
         continued validity of the representations and warranties of the Company
         made pursuant to clause (i) above and to evidence compliance with any
         customary conditions contained in an underwriting agreement.

         In the case of a Shelf Registration Statement, the Company may require
each Holder of Registrable Notes to furnish to the Company such information
regarding such Holder and the proposed distribution by such Holder of such
Registrable Notes as the Company may from time to time reasonably request in
writing.

         In the case of a Shelf Registration Statement, each Holder agrees that,
upon receipt of any notice from the Company of the happening of any event of the
kind described in Section 3(e)(v) or (vi) hereof, such Holder will forthwith
discontinue disposition of Registrable Notes pursuant to a Registration
Statement until such Holder's receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 3(i) hereof, and, if so directed by
the Company, such Holder will deliver to the Company (at its expense) all copies
in its possession, other than permanent file copies then in such Holder's
possession, of the Prospectus covering such Registrable Notes current at the
time of receipt of such notice. The Company may suspend the availability of any
Shelf Registration Statement for not more than two times during any 365 day
period and any such suspensions may not exceed 30 days for each suspension. If
the Company shall give any such notice to suspend the disposition of Registrable
Notes pursuant to a Registration Statement, the Company shall extend the period
during which the Registration Statement shall be maintained effective pursuant
to this Agreement by the number of days during the period from and including the
date of the giving of such notice to and including the date when the Company
shall have made available to the Holders copies of the supplemented or amended
Prospectus necessary to resume such dispositions.

         The Holders of Registrable Notes covered by a Shelf Registration
Statement who desire to do so may sell such Registrable Notes in an Underwritten
Offering; provided that the Company shall be required to use its best efforts to
make an Underwritten Offering only upon the request of Holders of at least 25%
of the Registrable Notes outstanding at the time such request is delivered to
the Company. In the case of any Underwritten Offering, the Company shall (x)
provide written notice to the Holders of all Registrable Notes of such
Underwritten Offering at least 30 days prior to the filing of a prospectus for
such Underwritten Offering, (y) specify a date, which shall be no earlier than
10 days following the date of such notice, by which each such Holder must inform
the Company of its intent to participate in such Underwritten Offering and (z)
include reasonable procedures that are customary to underwritten offerings of
the type contemplated herein that such Holder must follow in order to
participate in such Underwritten Offering. In any such Underwritten Offering,
the investment banker or invest-

<PAGE>
                                      -10-

ment bankers and manager or managers (the "UNDERWRITERS") that will administer
the offering will be selected by the Majority Holders of the Registrable Notes
included in such offering and shall be approved by the Company, which approval
shall not be unreasonably withheld.

         4. Participation of Broker-Dealers In Exchange Offer. (a) The Staff of
the SEC has taken the position that any broker-dealer that receives Exchange
Notes for its own account in the Exchange Offer in exchange for Notes that were
acquired by such broker-dealer as a result of market-making or other trading
activities (a "PARTICIPATING BROKER-DEALER"), may be deemed to be an
"underwriter" within the meaning of the 1933 Act and must deliver a prospectus
meeting the requirements of the 1933 Act in connection with any resale of such
Exchanges Notes.

         The Company understands that it is the Staff's position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a
plan of distribution containing a statement to the above effect and the means by
which Participating Broker-Dealers may resell the Exchange Notes, without naming
the Participating Broker-Dealers or specifying the amount of Exchange Notes
owned by them, such Prospectus may be delivered by Participating Broker-Dealers
to satisfy their prospectus delivery obligation under the 1933 Act in connection
with resales of Exchange Notes for their own accounts, so long as the Prospectus
otherwise meets the requirements of the 1933 Act.

                  (b) In light of the above, notwithstanding the other
provisions of this Agreement, the Company agrees that the provisions of this
Agreement as they relate to a Shelf Registration shall also apply to an Exchange
Offer Registration to the extent, and with such reasonable modifications thereto
as may be, reasonably requested by the Placement Agents or by one or more
Participating Broker-Dealers, in each case as provided in clause (ii) below, in
order to expedite or facilitate the disposition of any Exchange Notes by
Participating Broker-Dealers consistent with the positions of the Staff recited
in Section 4(a) above; provided that:

                  (i) the Company shall not be required to amend or supplement
         the Prospectus contained in the Exchange Offer Registration Statement,
         as would otherwise be contemplated by Section 3(i), for a period
         exceeding 180 days after the last Exchange Date (as such period may be
         extended pursuant to the penultimate paragraph of Section 3 of this
         Agreement) and Participating Broker-Dealers shall not be authorized by
         the Company to deliver and shall not deliver such Prospectus after such
         period in connection with the resales contemplated by this Section 4;
         and

                 (ii) the application of the Shelf Registration procedures set
         forth in Section 3 of this Agreement to an Exchange Offer Registration,
         to the extent not required by the positions of the Staff of the SEC or
         the 1933 Act and the rules and regulations thereunder, will be in
         conformity with the reasonable request to the Company by the Placement
         Agents or with the reasonable request in writing to the Company by one
         or more broker-dealers who certify to the Placement Agents and the
         Company in writing that they anticipate that they will be Participating
         Broker-Dealers; and provided further that, in connection with such
         application of the Shelf Registration procedures set forth in Section 3
         to an Exchange Offer Registration, the Company shall be obligated (x)
         to deal only with one entity representing the Participating
         Broker-Dealers, which shall be Deutsche Bank Securities Inc. unless it
         elects not to act as such representative, (y) to pay the fees and
         expenses of only one counsel representing the Participating
         Broker-Dealers, which shall be counsel to the Placement Agents unless
         such counsel elects not to so act and (z) to cause to be delivered only
         one, if any, "cold comfort" letter with respect to the Prospectus in
         the form existing on the last Exchange Date and with respect to each
         subsequent amendment or supplement, if any, effected during the period
         specified in clause (i) above.

<PAGE>
                                      -11-

                  (c) The Placement Agents shall have no liability to the
Company or any Holder with respect to any request that it may make pursuant to
Section 4(b) above.

         5. Indemnification and Contribution. (a) The Company agrees to
indemnify and hold harmless each Placement Agent, each Holder and each person,
if any, who controls such Placement Agent or any Holder within the meaning of
either Section 15 of the 1933 Act or Section 20 of the 1934 Act, or is under
common control with, or is controlled by, such Placement Agents or any Holder,
from and against all losses, claims, damages and liabilities (including, without
limitation, any legal or other expenses reasonably incurred by such Placement
Agent, any Holder or any such controlling or affiliated person in connection
with defending or investigating any such action or claim) caused by any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement (or any amendment thereto) pursuant to which Exchange
Notes or Registrable Notes were registered under the 1933 Act, including all
documents incorporated therein by reference, or caused by any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, or caused by any
untrue statement or alleged untrue statement of a material fact contained in any
Prospectus (as amended or supplemented if the Company shall have furnished any
amendments or supplements thereto), or caused by any omission or alleged
omission to state therein a material fact necessary to make the statements
therein in the light of the circumstances under which they were made not
misleading, except insofar as such losses, claims, damages or liabilities are
caused by any such untrue statement or omission or alleged untrue statement or
omission based upon information relating to such Placement Agent or any Holder
furnished to the Company in writing by such Placement Agent or such Holder
expressly for use therein. In connection with any Underwritten Offering
permitted by Section 3, the Company will also indemnify the Underwriters, if
any, their officers and directors and each Person who controls such Persons
(within the meaning of the Securities Act and the Exchange Act) to the same
extent as provided above with respect to the indemnification of the Holders, if
requested in connection with any Registration Statement.

                  (b) Each Holder agrees, severally and not jointly, to
indemnify and hold harmless the Company, each Placement Agent and the other
selling Holders, and each of their respective directors, officers who sign the
Registration Statement and each person, if any, who controls the Company, each
Placement Agent and any other selling Holder within the meaning of either
Section 15 of the 1933 Act or Section 20 of the 1934 Act to the same extent as
the foregoing indemnity from the Company to each Placement Agent and the
Holders, but only with reference to information relating to such Holder
furnished to the Company in writing by such Holder expressly for use in any
Registration Statement (or any amendment thereto) or any Prospectus (or any
amendment or supplement thereto).

                  (c) In case any proceeding (including any governmental
investigation) shall be instituted involving any person in respect of which
indemnity may be sought pursuant to either paragraph (a) or paragraph (b) above,
such person (the "INDEMNIFIED PARTY") shall promptly notify the person against
whom such indemnity may be sought (the "INDEMNIFYING PARTY") in writing and the
indemnifying party, upon request of the indemnified party, shall retain counsel
reasonably satisfactory to the indemnified party to represent the indemnified
party and any others the indemnifying party may designate in such proceeding and
shall pay the reasonable fees and disbursements of such counsel related to such
proceeding. In any such proceeding, any indemnified party shall have the right
to retain its own counsel, but the fees and expenses of such counsel shall be at
the expense of such indemnified party unless (i) the indemnifying party and the
indemnified party shall have mutually agreed to the retention of such counsel,
(ii) the named parties to any such proceeding (including any impleaded parties)
include both the indemnifying party and the indemnified party and representation
of both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them or (iii) the indemnifying party does
not, within a reasonable period of time after request of such indemnified party,
retain counsel to represent such indemnified party. It is understood that the
indemnifying party shall not, in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for (A) the reasonable fees and
expenses of more than

<PAGE>
                                      -12-

one separate firm (in addition to any local counsel) for the Placement Agents
and all persons, if any, who control the Placement Agents within the meaning of
either Section 15 of the 1933 Act or Section 20 of the 1934 Act, (B) the
reasonable fees and expenses of more than one separate firm (in addition to any
local counsel) for the Company, its directors and officers who sign the
Registration Statement and each person, if any, who controls the Company within
the meaning of either such Section and (C) the fees and expenses of more than
one separate firm (in addition to any local counsel) for all Holders and all
persons, if any, who control any Holders within the meaning of either such
Section, and that all such fees and expenses shall be reimbursed as they are
incurred. In such case involving the Placement Agents and persons who control
the Placement Agents, such firm shall be designated in writing by Deutsche Banc
Alex. Brown, Inc. In such case involving the Holders and such persons who
control Holders, such firm shall be designated in writing by the Majority
Holders. In all other cases, such firm shall be designated by the Company. The
indemnifying party shall not be liable for any settlement of any proceeding
effected without its written consent but, if settled with such consent or if
there be a final judgment for the plaintiff, the indemnifying party agrees to
indemnify the indemnified party from and against any loss or liability by reason
of such settlement or judgment. Notwithstanding the foregoing sentence, if at
any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for reasonable fees and expenses of counsel as
contemplated by the second and third sentences of this paragraph, the
indemnifying party agrees that it shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the
aforesaid request and (ii) such indemnifying party shall not have reimbursed the
indemnified party for such fees and expenses of counsel in accordance with such
request prior to the date of such settlement. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened proceeding in respect of which such
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.

                  (d) If the indemnification provided for in paragraph (a) or
paragraph (b) of this Section 5 is unavailable to an indemnified party or
insufficient in respect of any losses, claims, damages or liabilities, then each
indemnifying party under such paragraph, in lieu of indemnifying such
indemnified party thereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or
liabilities in such proportion as is appropriate to reflect the relative fault
of the indemnifying party or parties on the one hand and of the indemnified
party or parties on the other hand in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities, as well
as any other relevant equitable considerations. The relative fault of the
Company and the Holders shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company or by the Holders and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Holders' respective obligations to contribute
pursuant to this Section 5(d) are several in proportion to the respective number
of Registrable Notes of such Holder that were registered pursuant to a
Registration Statement.

                  (e) The Company and each Holder agree that it would not be
just or equitable if contribution pursuant to this Section 5 were determined by
pro rata allocation or by any other method of allocation that does not take
account of the equitable considerations referred to in paragraph (d) above. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages and liabilities referred to in paragraph (d) above shall be
deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 5, no Holder shall be required to indemnify or
contribute any amount in excess of the amount by which the total price at which
Registrable Notes were sold by such Holder exceeds the amount of any damages
that such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation

<PAGE>
                                      -13-

(within the meaning of Section 11(f) of the 1933 Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The remedies provided for in this Section 5 are not exclusive
and shall not limit any rights or remedies which may otherwise be available to
any indemnified party at law or in equity.

         The indemnity and contribution provisions contained in this Section 5
shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of
the Placement Agents, any Holder or any person controlling the Placement Agents
or any Holder, or by or on behalf of the Company, its officers or directors or
any person controlling the Company, (iii) acceptance of any of the Exchange
Notes and (iv) any sale of Registrable Notes pursuant to a Shelf Registration
Statement.

         6. Miscellaneous.

                  (a) No Inconsistent Agreements. The Company has not entered
into, and on or after the date of this Agreement will not enter into, any
agreement which is inconsistent with the rights granted to the Holders of
Registrable Notes in this Agreement or otherwise conflicts with the provisions
hereof. The rights granted to the Holders hereunder do not in any way conflict
with and are not inconsistent with the rights granted to the holders of the
Company's other issued and outstanding securities under any such agreements.

                  (b) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given unless the Company has obtained the written consent of Holders
of at least a majority in aggregate principal amount of the outstanding
Registrable Notes affected by such amendment, modification, supplement, waiver
or consent; provided, however, that no amendment, modification, supplement,
waiver or consents to any departure from the provisions of Section 5 hereof
shall be effective as against any Holder of Registrable Notes unless consented
to in writing by such Holder.

                  (c) Notices. All notices and other communications provided for
or permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, facsimile or any courier guaranteeing overnight delivery (i)
if to a Holder, at the most current address given by such Holder to the Company
by means of a notice given in accordance with the provisions of this Section
6(c), which address initially is, with respect to the Placement Agents, the
address set forth in the Placement Agreement; and (ii) if to the Company,
initially at the Company's address set forth in the Placement Agreement and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 6(c).

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five business
days after being deposited in the mail, postage prepaid, if mailed; when receipt
is confirmed, if faxed; and on the next business day if timely delivered to an
air courier guaranteeing overnight delivery.

         Copies of all such notices, demands, or other communications shall be
concurrently delivered by the person giving the same to the Trustee, at the
address specified in the Indenture.

                  (d) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors, assigns and transferees of each
of the parties, including, without limitation and without the need for an
express assignment, subsequent Holders; provided that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Registrable
Notes in violation of the terms of the Placement Agreement. If any transferee of
any Holder shall acquire Registrable Notes, in any manner, whether by operation
of law or otherwise, such Registrable Notes shall be held subject to all of the
terms of this Agreement, and by taking

<PAGE>
                                      -14-

and holding such Registrable Notes such person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of
this Agreement and such person shall be entitled to receive the benefits hereof.
The Placement Agents (in their capacity as Placement Agents) shall have no
liability or obligation to the Company with respect to any failure by a Holder
to comply with, or any breach by any Holder of, any of the obligations of such
Holder under this Agreement.

                  (e) Purchases and Sales of Notes. The Company shall not, and
shall use its best efforts to cause its affiliates (as defined in Rule 405 under
the 1933 Act) not to, purchase and then resell or otherwise transfer any Notes
other than Notes acquired and cancelled.

                  (f) Third Party Beneficiary. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Placement Agents, on the other hand, and shall have the right to
enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights or the rights of Holders hereunder.

                  (g) Counterparts. This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

                  (h) Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                  (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.

                  (j) Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

                                 FELCOR LODGING TRUST INCORPORATED

                                 By:      /s/ Lawrence D. Robinson
                                     -------------------------------------------
                                     Lawrence D. Robinson
                                     Executive Vice President & General Counsel

                                 FELCOR LODGING LIMITED PARTNERSHIP

                                 By: FelCor Lodging Trust Incorporated,
                                      General Partner

                                 By:      /s/ Lawrence D. Robinson
                                     -------------------------------------------
                                     Lawrence D. Robinson
                                     Executive Vice President & General Counsel

                                      S-1
<PAGE>

The foregoing Registration Rights Agreement
is hereby confirmed and accepted as of the
date hereof by:

DEUTSCHE BANC ALEX. BROWN INC.
J.P. MORGAN SECURITIES INC.
BANC OF AMERICA SECURITIES LLC
MORGAN STANLEY & CO. INCORPORATED
SALOMON SMITH BARNEY INC.

Acting on behalf of itself and as
Representative of the several Placement Agents

By:  DEUTSCHE BANC ALEX. BROWN INC.

By:  /s/ A. Drew Goldman
     ----------------------------------------------
     Name:  A. Drew Goldman
     Title: Director

By:     /s/ [ILLEGIBLE]
     ----------------------------------------------
     Name:
     Title:

                                      S-2<PAGE>
                                                                   Exhibit 10.22

              TERMINATION, SEVERANCE AND GENERAL RELEASE AGREEMENT

         This Termination, Severance and General Release Agreement ("this
Agreement"), dated as of March 18, 2002, is entered into by and between Allan
Brown ("Executive") and his employer Simon Worldwide, Inc. and its subsidiary
Simon Marketing, Inc. (together "Simon" or "the Company").

         Reference is made to the above-named parties' Employment Agreement
dated September 1, 1999, ("the Employment Agreement"), and to their Retention
and Amendment Agreement dated August 29, 2001 ("the Retention Agreement").

         Executive and Simon have agreed, and hereby confirm, that it is in
their mutual best interests to terminate Executive's employment on the terms
described below.

         NOW THEREFORE, the parties agree as follows:

         1.       TERMINATION OF EMPLOYMENT. Subject to Executive's receipt of
the payment provided for in Paragraph 3 hereof, effective as of March 18, 2002
(the "Effective Date"), Executive's employment shall be terminated, in any
capacity, including his senior management positions with Simon and affiliates
and any and all other positions held by him with Simon, except Executive shall
remain on the Simon Worldwide, Inc. Board of Directors until such time, if at
all, that the Simon Worldwide, Inc. Board of Directors, under its bylaws, or
otherwise, is reduced to three members, consisting of J. Anthony Kouba, George
Golleher and Joseph Bartlett. While serving on Simon Worldwide, Inc.'s Board,
Executive shall be paid $6,250 per quarter plus $2,000 for each Board or
Committee meeting he attends. Simon shall reimburse Executive for the medical
expenses and benefits, personal attorneys' and accountants' and club-membership
fees incurred by him through the Effective Date. In addition, Simon shall
reimburse Executive for the personal attorneys' and accountants' and
club-membership fees incurred by him from the day following the Effective Date
through March 31, 2002, up to a total maximum reimbursement amount of $10,000.
Simon's obligation to reimburse Executive for the fees described above shall be
subject to Executive's providing appropriate documentation of such fees, and
Executive shall exercise his best efforts to provide such documentation to Simon
by March 31, 2002. If Executive is unable despite such efforts to provide any
such documentation to Simon by March 31, 2002, Executive shall do so as soon
thereafter as he is able.

         2.       TERMINATION OF AGREEMENTS. Except as specifically otherwise
provided in this Agreement, upon Executive's receipt of the payment provided for
in Paragraph 3 hereof, the Employment Agreement, the Retention Agreement, the
Control Agreement (as defined in the Retention Agreement) and any and all other
agreements between Executive and the Company shall all be terminated, and all
rights and obligations under said Agreements shall be deemed mutually cancelled,
waived, released and terminated. Such terminated and released rights and
obligations specifically include, but are not limited to, the following: payment
and enforcement of any loans (except in connection with the $575,000
non-recourse loan from Simon to Executive of June 9, 1997, Executive shall
release and transfer to Simon the pledged 52,904 shares of the common stock of
Simon in full payment of said

<PAGE>

loan), lines of credit, pledges, interest and promissory notes; the payment of
any salaries, bonuses, expense reimbursements or benefits of any description
that otherwise would be incurred by Executive on or after the Effective Date;
any termination rights, obligations, causes or actions; any non-competition and
non-solicitation obligations; and any confidentiality obligations. On and after
the Effective Date, Simon and Executive shall have (i) no further employment
relationship, and (ii) no further contractual relationship except as may arise
out of this Agreement, or as may be created by future agreements in writing.
Executive waives any right or claim to reinstatement as an employee or officer
of Simon and will not seek such reinstatement, appointment or retention in the
future with Simon, and Simon shall not take any action, direct or indirect, to
interfere with Executive's new employment and/or business ventures. In this
regard, Executive is free to engage in any business he may choose; provided,
however, Executive covenants that until all disputes between McDonald's
Corporation ("McDonald's") and its affiliates on the one hand and Simon and its
affiliates on the other hand have been finally resolved through a settlement or
a final court judgment, he will not, without the prior written consent of Simon,
on his own behalf or on behalf of any person, firm or company, directly or
indirectly, consult or contact McDonald's or any of its subsidiaries,
affiliates, associated companies, suppliers or agents with respect to any matter
relating to McDonald's; provide service to, or solicit or seek to procure orders
from or do business with McDonald's; or sell, provide or cause to be
manufactured any toys, promotional premiums, or other goods for sale or
distribution by McDonald's or any of its restaurants anywhere in the world.

         3.       PAYMENT. On the Effective Date, Simon shall deliver to
Executive a lump-sum payment in the gross amount of $998,000, less payroll
deductions required by law, as a liquidated payment in resolution of all
liabilities and disputes among the parties. This payment shall be inclusive of
any and all amounts (including accrued, unused vacation time) to which Executive
otherwise would have been entitled under the Employment Agreement, the Retention
Agreement or any other agreement between the parties, or otherwise as a result
of Executive's employment by Simon.

         4.       INDEMNITY. In addition to the indemnity provisions of
Paragraph 5 of the Employment Agreement, the Indemnification Agreement between
Executive and Simon dated as of February 6, 2002, and the contemplated
Indemnification Trust Agreement, Simon shall continue in effect, and arrange at
its expense for Executive to be protected by the same indemnity agreements,
arrangements and insurance policies to the broadest extent currently afforded,
and as may, on or after the Effective Date, be afforded to the other officers
and/or directors of the Company. The same indemnification provisions shall also
cover Executive's future consultation services under Paragraph 5 below.

         5.       CONSULTING. On and after the Effective Date, during the
Consulting Term, which is six (6) consecutive months immediately following the
Effective Date, Executive shall make himself available at reasonable times and
upon reasonable notice by Simon to consult with Simon, on a non-exclusive basis.
The specific nature and extent of consulting services to be rendered shall be
determined by Simon from time to time; provided, however, Executive shall be
available to provide consulting services only in Los Angeles, California. During
the Consulting Term, (a) Simon shall pay Executive a consulting fee of $46,666
per month (whether or not Simon utilizes Executive's consulting services); (b)
Simon shall pay

                                      -2-
<PAGE>
the monthly premiums for Executive's continued coverage, pursuant to the
Consolidated Omnibus Budget Reconciliation Act of 1985, under Simon's group
medical insurance plan; (c) Simon shall provide Executive with an office without
cost to him; and (d) Simon shall reimburse Executive for his business expenses
(including telephone expenses) incurred in accordance with Simon's policies. In
addition, upon execution of this Agreement, Simon shall provide Executive with
an additional one-time lump-sum payment in the amount of $12,000, in respect of
any future medical-related expenses that Executive may incur which are not
covered by Simon's group medical insurance. After the end of the Consulting
Term, Executive, on the reasonable request of Simon, agrees to make himself
reasonably available in Los Angeles, California, on a non-exclusive basis, to
consult with Simon for a fee of $750 per hour and reimbursement of business
expenses incurred by him that have been approved in advance by Simon.

         6.       RELEASE BY EXECUTIVE. Upon receipt of the payment provided for
in Paragraph 3 hereof, and except for those obligations created by or arising
out of this Agreement, the indemnification obligations of Simon under the
Indemnification Agreement dated as of February 6, 2002, the indemnification
obligations of Simon as set forth in Paragraph 5 of the Employment Agreement,
and Paragraph 4 hereof, and excepting The Yucaipa Companies LLC, its affiliates,
including Overseas Toys, L.P., OA3, LLC, and Multi-Accounts, LLC, and Ronald
Burkle, Executive hereby covenants not to sue and fully releases and discharges
Simon, and its parent, subsidiary and affiliated entities, past and present, and
each of them, as well as its and their trustees, directors, officers, agents,
attorneys, insurers, employees, stockholders, representatives, assigns, and
successors, past and present, and each of them (hereinafter together and
collectively referred to as the "Simon Releasees") with respect to and from any
and all claims, wages, demands, rights, liens, agreements, contracts, the
terminated and released rights and obligations set forth in Paragraph 2 hereof,
covenants, actions, suits, causes of action, obligations, debts, interest,
costs, expenses, attorneys' fees, damages, judgments, orders and liabilities of
whatever kind or nature, in law, equity or otherwise, whether now known or
unknown, suspected or unsuspected, and whether or not concealed or hidden, which
he now owns or holds or has at any time heretofore owned or held or may in the
future hold as against said Simon Releasees, arising out of or in any way
connected with his employment relationship with Simon or the termination
thereof, his stockholder status, his Board of Directors status or any other
transactions, occurrences, acts or omissions or any loss, damage or injury of
any nature or cause whatsoever, known or unknown, suspected or unsuspected,
resulting from any act or omission by or on the part of Simon and/or the Simon
Releasees, or any of them, committed or omitted prior to the Effective Date,
including, without limiting the generality of the foregoing, any claim under
Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment
Act, the Americans with Disabilities Act, the Family and Medical Leave Act of
1993, the California Fair Employment and Housing Act, and the California Family
Rights Act (collectively "Executive Claims").

         7.       RELEASE BY SIMON. Except for those obligations created by or
arising out of this Agreement, Simon, on its own behalf and on behalf of its
subsidiaries, hereby fully releases and discharges, and covenants not to sue,
Executive and/or his descendents, dependents, heirs, executors, spouse,
administrators, assigns and successors, past and present, and each of them (the
"Executive Releasees"), with respect to and from any and all

                                      -3-
<PAGE>
claims, agreements, obligations, losses, liens, damages, injuries, causes of
action, rights, demands, contracts, the terminated and released rights and
obligations set forth in Paragraph 2 hereof (excepting the $575,000 non-recourse
loan described in Paragraph 2 hereof, which will be paid in full by Executive
with the pledged shares), covenants, actions, suits, debts, interest, costs,
expenses, attorneys' fees, judgments, orders and liabilities of whatever kind or
nature, in law, equity or otherwise, known or unknown, suspected or unsuspected,
and whether or not concealed or hidden, which it now owns or holds or has at any
time owned or held or may in the future hold against Executive and/or the
Executive Releasees, resulting from any act or omission by or on the part of
Executive and/or the Executive Releasees, or any of them, committed or omitted
prior to the Effective Date, including but not limited to any and all claims
arising out of or in any way connected with Executive's employment relationship
with Simon, or any other occurrences, acts or omissions, or any loss, damage or
injury of any nature or cause whatsoever, known or unknown, suspected or
unsuspected, hidden or concealed, which Simon now owns or holds or has at any
time heretofore owned or held as against Executive and/or the Executive
Releasees (collectively "Simon Claims").

         8.       MUTUAL WAIVER OF CIVIL CODE SS. 1542. It is the intention of
Simon and Executive in executing the releases in Paragraphs 6 and 7, that said
releases shall be effective as a bar to each and every claim, demand and cause
of action hereinabove specified. In furtherance of this intention, each hereby
knowingly, intentionally, voluntarily, and expressly waives any and all rights
and benefits conferred by the provisions of SECTION 1542 OF THE CALIFORNIA CIVIL
CODE and expressly consents that this Agreement shall be given full force and
effect according to each and all of its express terms and provisions, including
those related to unknown and unsuspected claims, demands and causes of action,
if any, as well as those relating to any other claims, demands and causes of
action hereinabove specified. SECTION 1542 provides:

         "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
         NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE
         RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
         SETTLEMENT WITH THE DEBTOR."

         Simon and Executive each acknowledge that he or it may hereafter
discover claims or facts in addition to or different from those which he or it
now knows or believes to exist with respect to the subject matter of this
Agreement or otherwise and which, if known or suspected at the time of executing
this Agreement, may have materially affected this settlement. Nevertheless, each
hereby knowingly, intentionally, voluntarily, and expressly waives any right,
claim or cause of action that might arise as a result of such different or
additional claims or facts. Each acknowledges that he or it understands the
significance and consequence of such release and such specific waiver of SECTION
1542.

         Simon and Executive also knowingly, intentionally, voluntarily, and
expressly waive any and all rights and benefits conferred by law of any state or
territory of the United States or any foreign country or principle of common law
that is similar to SECTION 1542 OF THE CALIFORNIA CIVIL CODE.

                                      -4-

<PAGE>
         9.       ADEA WAIVER. Executive expressly acknowledges and agrees that,
by entering into this Agreement, he is waiving any and all rights or claims that
he may have arising under the Age Discrimination in Employment Act of 1967, as
amended, which may have arisen on or before the Effective Date. To this end,
Executive further expressly acknowledges and agrees that:

                  a.       In return for this Agreement, he will receive
compensation beyond that which he was already entitled to receive before
entering into this Agreement;

                  b.       He was advised by Simon and is hereby advised in
writing by this Agreement to consult with an attorney before signing this
Agreement;

                  c.       He was given a copy of this Agreement on March __,
2002, and informed that he had twenty-one (21) days within which to consider the
Agreement (although he may voluntarily choose to shorten that consideration
period by signing earlier); and

                  d.       He was informed that he has seven (7) days following
the date of his execution of the Agreement in which to revoke the Agreement.

         10.      NO ASSIGNMENT OR TRANSFER. Simon warrants and represents that
it has not heretofore assigned or transferred to any person not a party to this
Agreement any Simon Claim or any part or portion thereof, and Executive warrants
and represents that he has not heretofore assigned or transferred to any person
not a party to this Agreement any Executive Claim or any part or portion
thereof. Simon and Executive shall each defend, indemnify and hold harmless the
other from and against any claim (including the payment of attorneys' fees and
costs actually incurred whether or not litigation is commenced) based on or in
connection with or arising out of any such assignment or transfer made,
purported or claimed.

         11.      TAXES. Executive agrees that he shall be exclusively liable
for the payment of all of his federal and state taxes which may be due as the
result of the consideration received from the settlement of disputed claims as
set forth herein and Executive hereby represents that he shall make payments on
such taxes at the time and in the amount required of him.

         12.      COMPANY PROPERTY. On or before the Effective Date, excluding
the Company telephone system installed in Executive's house, Executive shall
return to Simon all property belonging to Simon, except that Simon shall give
Executive the opportunity to purchase, at their fair-market value, the Company
photocopier, computer and fax machine located in Executive's home office, as
well as Executive's office furniture (provided, however, that to the extent that
any such furniture is currently leased rather than owned by Simon, Executive may
elect to assume the payments on such leases and all other obligations
thereunder).

         13.      CONFIDENTIAL INFORMATION. Executive will not at any time,
directly or indirectly, disclose or divulge, any Confidential Information (as
hereinafter defined) acquired by him during or in connection with his employment
with Simon. As used herein

                                      -5-

<PAGE>
"Confidential Information" means all trade secrets of Simon and all other
information relating to Simon's business that Simon treats as confidential,
including information of others that Simon has agreed to keep confidential;
provided, that Confidential Information shall not include any information that
has entered or enters the public domain through no fault of Executive or which
Executive is required to disclose by legal process or to defend himself in legal
proceeding. Executive shall make no use whatsoever, directly or indirectly, of
any Confidential Information, except nothing herein is intended to preclude
Executive after termination of his employment with Simon from being employed in
a similar capacity by others or for his own account and from using the business
techniques, knowledge, marketing skills and contacts and relationships which
Executive possesses.

         14.      ENTIRE AGREEMENT. This instrument constitutes and contains the
entire agreement and understanding concerning Executive's employment,
termination from the same and the other subject matters addressed herein between
the parties, and supersedes and replaces all prior negotiations and all
agreements proposed or otherwise, whether written or oral, concerning the
subject matters hereof. This is an integrated document. It can be amended only
by a written instrument executed by Executive and by a duly authorized officer
of Simon.

         15.      NO WAIVER. The failure to enforce at any time any of the
provisions of this Agreement, or to require at any time performance by the other
party of any of the provisions hereof, shall in no way be construed to be a
waiver of such provisions or to affect either the validity of this Agreement or
any part hereof or the right of either party thereafter to enforce each and
every provision in accordance with the terms of this Agreement. Any waiver must
be in writing signed by the party making the waiver.

         16.      REVOCATION RIGHTS. Executive may revoke this Agreement in its
entirety during the seven (7) days following execution of the Agreement by
Executive. Any revocation of the Agreement must be in writing and hand delivered
to the offices of Tony Kouba, 1445 Fifth Street, Santa Monica, California 90401,
during the revocation period. This Agreement will become effective and
enforceable seven (7) days following execution by Executive, unless it is
revoked during the seven (7) day period.

         17.      CHOICE OF LAW. This Agreement shall be deemed to have been
executed and delivered within the State of California, and the rights and
obligations of the parties hereunder shall be construed and enforced in
accordance with, and governed by, the laws of the State of California without
regard to principles of conflict of laws.

         18.      CONSTRUCTION OF AGREEMENT. Each party has cooperated in the
drafting and preparation of this Agreement, and, accordingly, in any
construction or interpretation of this Agreement, the same shall not be
construed against any party by reason of the source of drafting.

         19.      COUNTERPARTS. This Agreement may be executed in counterparts,
and each counterpart, when executed, shall have the efficacy of a signed
original. Photographic copies of such signed counterparts may be used in lieu of
the originals for any purpose.

                                      -6-

<PAGE>
         20.      ADVICE. In entering this Agreement, the parties represent that
they have relied upon the advice of their attorneys, who are attorneys of their
own choice, and that the terms of this Agreement have been completely explained
to them by their attorneys, and that those terms are fully understood and
voluntarily accepted by them.

         21.      COOPERATION. All parties agree to cooperate fully and to
execute any and all supplementary documents and to take all additional actions
that may be necessary or appropriate to give full force to the basic terms and
intent of this Agreement and which are not inconsistent with its terms.
Executive covenants to do all such other reasonable acts, to deliver all such
other documents and to provide all reasonably necessary assistance and
cooperation as may be reasonably required by Simon in connection with the
termination of his employment and separation from Simon. Executive also agrees
to provide reasonably necessary assistance and cooperation in connection with
the claims made by Simon and McDonald's against one another, as well as in
connection with any other legal matters concerning which Executive has knowledge
by virtue of his employment with Simon.

         22.      NO DISPARAGEMENT. Executive agrees that he will not at any
time, orally or in writing, defame or intentionally make disparaging remarks
that could be expected to have a material adverse impact on the business
reputation or prospects of Simon, except as may be required by law. Simon agrees
that its officers and directors will not at any time, orally or in writing,
defame or intentionally make disparaging remarks that could be expected to have
a material adverse impact on the business reputation or prospects of Executive,
except as may be required by law. The sole and exclusive remedy for breach of
this Paragraph 22 shall be direct damages only.

         23.      AUTHORITY. Simon and Executive each represent to the other and
agree that he or it has the full right and authority to enter into this
Agreement, and that the person executing this Agreement has the full right and
authority to fully commit and bind such party or person.

         24.      CHALLENGE TO AGREEMENT. Simon, at its sole expense, agrees to
timely contest any challenge by a third party to the validity of one or more
provisions of this Agreement in any proceeding in which a challenge is made,
provided that, in Simon's reasonable judgment upon consultation with counsel,
Simon's contesting such challenge would be reasonably supported by applicable
law. In such event, Simon shall take such action as may be necessary to support
the validity of this Agreement, all at Simon's sole expense, including but not
limited to instructing its lawyers to file papers and make arguments in the
proceedings in support of the validity of this Agreement and each of its
provisions.

         25.      SEVERABILITY. If any provision of this Agreement other than
Paragraph 3 ("Payment"), Paragraph 6 ("Release by Executive") or Paragraph 7
("Release by Simon") is determined by a court of competent jurisdiction to be
unlawful, void or for any reason unenforceable, in whole or part, such provision
shall be deemed severable from, and shall in no way affect the validity or
enforceability of, the remaining provisions of this Agreement. Should Paragraph
3, 6 or 7 be determined by a court of competent jurisdiction to be unlawful,
void or for any reason unenforceable, in whole or part, this Agreement and all
of its provisions shall be voidable at the option of the injured party.

                                      -7-

<PAGE>
         26.      PENSION PLAN RIGHTS AND ENTITLEMENTS. Notwithstanding anything
to the contrary herein stated, Executive shall be entitled to receive all of his
rights and entitlements under the Company pension plan and/or profit sharing
plans.

         27.      DISPUTE RESOLUTION. Any dispute or claim relating to the
enforcement or any alleged breach of this Agreement shall be resolved
exclusively through final and binding arbitration in Los Angeles, California
before a neutral arbitrator, pursuant to the Employment Arbitration Rules of the
American Arbitration Association. The parties shall split the costs of the
arbitration proceedings, and bear the expense of presenting their own cases, but
the prevailing party shall be entitled to recover all costs and expenses
incurred, including reasonable attorneys' fees, unless otherwise required by
law.

         28.      NO ADMISSION. Each of the parties hereto expressly agrees and
acknowledges that this Settlement Agreement represents a settlement of disputed
claims and that, by entering into this Settlement and General Release Agreement,
no party hereto admits or acknowledges the existence of any claim or wrongdoing
on his or its part.

         29.      NOTICES. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if (i) delivered by and receipted for by the party to whom said
notice or other communication shall have been directed; (ii) sent by nationally
recognized overnight courier; or if (iii) mailed by certified or registered mail
with postage prepaid, on the third business day after the date on which it is so
mailed:

                  (a)      If to Executive, to:

                           Allan I. Brown
                           1121 El Retiro Way
                           Beverly Hills, California 90210

                  with a copy to:

                           Martin N. Gelfand, Esq.
                           Irell & Manella LLP
                           1800 Avenue of the Stars, Suite 900
                           Los Angeles, California 90067-4276

                  (b)      If to Simon, to:

                           Simon Marketing, Inc.
                           Simon Worldwide, Inc.
                           c/o Simon Marketing, Inc.
                           1900 Avenue of the Stars, Suite 550
                           Los Angeles, California 90067-6800
                           Attention:  Chief Executive Officer

                                      -8-

<PAGE>
                  with a copy to:

                           Cameron Read, Esq.
                           Choate, Hall & Stewart
                           Exchange Place
                           53 State Street
                           Boston, Massachusetts 02109

or to such other address as may have been furnished to Executive by Simon or to
Simon by Executive, as the case may be.

          EXECUTED this _____ day of _______________ 2002, at __________________

County,______________________________.

                                           By __________________________________
                                                   Allan Brown

          EXECUTED this _____ day of _______________ 2002, at __________________

County, ______________________________.

                                           Simon Worldwide, Inc. and Simon
                                           Marketing, Inc.

                                           By __________________________________
                                                   Board Member

                                      -9-

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