Document:

exv10w34w1

 

Exhibit 10.34.1

Execution Version

 

CREDIT AGREEMENT

dated as of

December 12, 2005

among

FELCOR LODGING TRUST INCORPORATED

and

FELCOR LODGING LIMITED PARTNERSHIP

The Lenders Party Hereto

and

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

 

J.P. MORGAN SECURITIES INC.

and

CITIGROUP GLOBAL MARKETS INC.

as Joint Bookrunners and Joint Lead Arrangers

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE I DEFINITIONS	 	 	1	 
	 

	 	SECTION 1.1.
	 	Defined Terms
	 	 	1	 
	 

	 	SECTION 1.2.
	 	Classification of Loans and Borrowings
	 	 	14	 
	 

	 	SECTION 1.3.
	 	Terms Generally
	 	 	14	 
	 

	 	SECTION 1.4.
	 	Accounting Terms; GAAP
	 	 	14	 
	 

	 	SECTION 1.5.
	 	Joint Venture Investments
	 	 	14	 
	ARTICLE II THE CREDITS	 	 	15	 
	 

	 	SECTION 2.1.
	 	Commitments
	 	 	15	 
	 

	 	SECTION 2.2.
	 	Loans and Borrowings
	 	 	15	 
	 

	 	SECTION 2.3.
	 	Requests for Revolving Borrowings
	 	 	16	 
	 

	 	SECTION 2.4.
	 	[RESERVED]
	 	 	16	 
	 

	 	SECTION 2.5.
	 	Swingline Loans
	 	 	16	 
	 

	 	SECTION 2.6.
	 	Letters of Credit
	 	 	17	 
	 

	 	SECTION 2.7.
	 	Funding of Borrowings
	 	 	21	 
	 

	 	SECTION 2.8.
	 	Interest Elections
	 	 	21	 
	 

	 	SECTION 2.9.
	 	Termination and Reduction of Commitments
	 	 	22	 
	 

	 	SECTION 2.10.
	 	Repayment of Loans; Evidence of Debt
	 	 	23	 
	 

	 	SECTION 2.11.
	 	Prepayment of Loans
	 	 	24	 
	 

	 	SECTION 2.12.
	 	Fees
	 	 	25	 
	 

	 	SECTION 2.13.
	 	Interest
	 	 	26	 
	 

	 	SECTION 2.14.
	 	Alternate Rate of Interest
	 	 	26	 
	 

	 	SECTION 2.15.
	 	Increased Costs
	 	 	27	 
	 

	 	SECTION 2.16.
	 	Break Funding Payments
	 	 	28	 
	 

	 	SECTION 2.17.
	 	Taxes
	 	 	28	 
	 

	 	SECTION 2.18.
	 	Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	29	 
	 

	 	SECTION 2.19.
	 	Mitigation Obligations; Replacement of Lenders
	 	 	30	 
	 

	 	SECTION 2.20.
	 	Joint and Several Liability of the Borrowers
	 	 	31	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES	 	 	33	 

i

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 

	 	SECTION 3.1.
	 	Organization; Powers
	 	 	33	 
	 

	 	SECTION 3.2.
	 	Authorization; Enforceability
	 	 	33	 
	 

	 	SECTION 3.3.
	 	Governmental Approvals; No Conflicts
	 	 	33	 
	 

	 	SECTION 3.4.
	 	Financial Condition; No Material Adverse Change
	 	 	33	 
	 

	 	SECTION 3.5.
	 	Properties
	 	 	34	 
	 

	 	SECTION 3.6.
	 	Litigation and Environmental Matters
	 	 	34	 
	 

	 	SECTION 3.7.
	 	Compliance with Laws and Agreements
	 	 	34	 
	 

	 	SECTION 3.8.
	 	Investment and Holding Company Status
	 	 	35	 
	 

	 	SECTION 3.9.
	 	Taxes
	 	 	35	 
	 

	 	SECTION 3.10.
	 	ERISA
	 	 	35	 
	 

	 	SECTION 3.11.
	 	Disclosure
	 	 	35	 
	 

	 	SECTION 3.12.
	 	Indebtedness
	 	 	35	 
	 

	 	SECTION 3.13.
	 	Ownership; Organization Structure; Subsidiaries
	 	 	36	 
	 

	 	SECTION 3.14.
	 	Solvency
	 	 	36	 
	 

	 	SECTION 3.15.
	 	Location of Assets; Unencumbered Assets
	 	 	36	 
	 

	 	SECTION 3.16.
	 	No Burdensome Restrictions
	 	 	36	 
	 

	 	SECTION 3.17.
	 	Insurance
	 	 	36	 
	 

	 	SECTION 3.18.
	 	Use of Proceeds; Margin Stock
	 	 	36	 
	 

	 	SECTION 3.19.
	 	Foreign Asset Control Regulations
	 	 	36	 
	ARTICLE IV CONDITIONS	 	 	37	 
	 

	 	SECTION 4.1.
	 	Effective Date
	 	 	37	 
	 

	 	SECTION 4.2.
	 	Each Credit Event
	 	 	38	 
	ARTICLE V AFFIRMATIVE COVENANTS	 	 	38	 
	 

	 	SECTION 5.1.
	 	Financial Statements; Ratings Change and Other Information
	 	 	39	 
	 

	 	SECTION 5.2.
	 	Notices of Material Events
	 	 	40	 
	 

	 	SECTION 5.3.
	 	Existence; Conduct of Business
	 	 	40	 
	 

	 	SECTION 5.4.
	 	Payment of Obligations
	 	 	40	 
	 

	 	SECTION 5.5.
	 	Maintenance of Properties; Insurance
	 	 	40	 
	 

	 	SECTION 5.6.
	 	Books and Records; Inspection Rights
	 	 	41	 

ii

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 

	 	SECTION 5.7.
	 	Compliance with Laws
	 	 	41	 
	 

	 	SECTION 5.8.
	 	Use of Proceeds and Letters of Credit
	 	 	41	 
	 

	 	SECTION 5.9.
	 	Notices of Asset Sales or Dispositions
	 	 	41	 
	 

	 	SECTION 5.10.
	 	Further Assurances
	 	 	41	 
	 

	 	SECTION 5.11.
	 	Distributions in the Ordinary Course
	 	 	41	 
	 

	 	SECTION 5.12.
	 	ERISA Compliance
	 	 	42	 
	 

	 	SECTION 5.13.
	 	Additional Subsidiary Guarantors;
Release of Subsidiary Guarantors
	 	 	42	 
	ARTICLE VI NEGATIVE COVENANTS	 	 	42	 
	 

	 	SECTION 6.1.
	 	Financial Covenants and Other Covenants
	 	 	42	 
	 

	 	SECTION 6.2.
	 	Liens
	 	 	43	 
	 

	 	SECTION 6.3.
	 	Fundamental Changes; Governing Documents
	 	 	44	 
	 

	 	SECTION 6.4.
	 	Indebtedness
	 	 	45	 
	 

	 	SECTION 6.5.
	 	Transactions with Affiliates
	 	 	45	 
	 

	 	SECTION 6.6.
	 	Asset Sales and Disposition of Assets
	 	 	45	 
	 

	 	SECTION 6.7.
	 	Negative Pledge; Restrictive Agreements
	 	 	45	 
	 

	 	SECTION 6.8.
	 	Restricted Investments; Acquisitions
	 	 	45	 
	 

	 	SECTION 6.9.
	 	Fiscal Year
	 	 	45	 
	 

	 	SECTION 6.10.
	 	Margin Regulations; Securities Laws
	 	 	45	 
	 

	 	SECTION 6.11.
	 	ERISA
	 	 	46	 
	 

	 	SECTION 6.12.
	 	Optional Prepayments and
Modifications of Certain Debt Instruments
	 	 	46	 
	ARTICLE VII EVENTS OF DEFAULT	 	 	46	 
	ARTICLE VIII THE ADMINISTRATIVE AGENT	 	 	48	 
	ARTICLE IX MISCELLANEOUS	 	 	50	 
	 

	 	SECTION 9.1.
	 	Notices
	 	 	50	 
	 

	 	SECTION 9.2.
	 	Waivers; Amendments
	 	 	51	 
	 

	 	SECTION 9.3.
	 	Expenses; Indemnity; Damage Waiver
	 	 	51	 
	 

	 	SECTION 9.4.
	 	Successors and Assigns
	 	 	52	 
	 

	 	SECTION 9.5.
	 	Survival
	 	 	55	 

iii

 

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(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 

	 	SECTION 9.6.
	 	Counterparts; Integration; Effectiveness
	 	 	55	 
	 

	 	SECTION 9.7.
	 	Severability
	 	 	56	 
	 

	 	SECTION 9.8.
	 	Right of Setoff
	 	 	56	 
	 

	 	SECTION 9.9.
	 	Governing Law; Jurisdiction; Consent to Service of Process
	 	 	56	 
	 

	 	SECTION 9.10.
	 	WAIVER OF JURY TRIAL
	 	 	56	 
	 

	 	SECTION 9.11.
	 	Headings
	 	 	57	 
	 

	 	SECTION 9.12.
	 	Confidentiality
	 	 	57	 
	 

	 	SECTION 9.13.
	 	USA PATRIOT Act
	 	 	57	 
	 

	 	SECTION 9.14.
	 	Interest Rate Limitation
	 	 	57	 

iv

 

 

SCHEDULES:

	 	 	 	 	 
	Schedule SG

	 	—
	 	Subsidiary Guarantors
	Schedule 2.1

	 	—
	 	Commitments
	Schedule 2.6

	 	—
	 	Existing Letters of Credit
	Schedule 3.6

	 	—
	 	Disclosed Matters
	Schedule 3.12

	 	—
	 	Existing Indebtedness
	Schedule 3.13

	 	—
	 	Organizational Structure
	Schedule 3.15

	 	—
	 	Properties and Unencumbered Assets

EXHIBITS:

Exhibit A — Form of Assignment and Assumption

Exhibit B — Form of Borrowing Request

Exhibit C — Form of Note

Exhibit D — Form of Interest Election Request

Exhibit E — Form of Subsidiary Guaranty

Exhibit F — Form of Officer’s Certificate

 

 

     CREDIT AGREEMENT (this “Agreement”) dated as of December 12, 2005, among FelCor Lodging Trust
Incorporated, a Maryland corporation (“FelCor Trust”) and FelCor Lodging Limited Partnership, a
Delaware limited partnership (“FelCor Partnership,” and together with FelCor Trust, individually a
“Borrower” and collectively, the “Borrowers”), the LENDERS party hereto, and JPMORGAN CHASE BANK,
N.A., as Administrative Agent.

     The parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1. Defined Terms. As used in this Agreement, the following terms have the
meanings specified below:

     “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

     “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to
(a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

     “Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as
administrative agent for the Lenders hereunder.

     “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

     “Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

     “Agreement” has the meaning assigned to such term in the recitals.

     “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a)
the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

     “Applicable Percentage” means, with respect to any Lender, the percentage of the total
Commitments represented by such Lender’s Commitment. If the Commitments have terminated or
expired, the Applicable Percentages shall be determined based upon the Commitments most recently in
effect, giving effect to any assignments.

     “Applicable Rate” means, for any day, with respect to any ABR Loan or Eurodollar
Revolving Loan, as the case may be, the applicable rate per annum set forth below under the caption
“ABR Spread” or “Eurodollar Spread”, as the case may be, based upon the Leverage Ratio:

 

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	 	 	ABR	 	 	Eurodollar	 
	Leverage Ratio:	 	Spread	 	 	Spread	 
	Category 1	 	 	 	 	 	 	 	 
	>6.25 to 1.0	 	 	1.25%	 	 	 	2.25%	 
	Category 2	 	 	 	 	 	 	 	 
	>5.50 to 1.0 and <6.25 to 1.0	 	 	1.00%	 	 	 	2.00%	 
	Category 3	 	 	 	 	 	 	 	 
	<5.50 to 1.0	 	 	0.75%	 	 	 	1.75%	 

The Administrative Agent shall determine and adjust the Applicable Rate as of the date (each a
“Calculation Date”) that is five Business Days after the date on which the Borrowers provide the
officer’s certificate in accordance with the provisions of SECTION 5.1(c); provided that if
the Borrowers fail to provide the officer’s certificate required by SECTION 5.1(c) on or before
the date required by SECTION 5.1(c), the Applicable Rate from such date shall be based on Category
1 until such time that an appropriate officer’s certificate is provided whereupon the Applicable
Rate shall be determined by the then current Leverage Ratio. Each Applicable Rate so determined
shall be effective and applied during the period beginning on one Calculation Date and ending on
the date immediately preceding the next Calculation Date.

     “Approved Fund” has the meaning assigned to such term in SECTION 9.4.

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by SECTION 9.4),
and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by
the Administrative Agent.

     “Availability Period” means the period from and including the Effective Date to but
excluding the earlier of the Maturity Date and the date of termination of the Commitments.

     “Board” means the Board of Governors of the Federal Reserve System of the United
States of America.

     “Borrower” and “Borrowers” have the meanings assigned to such terms in the
recitals.

     “Borrowing” means (a) Revolving Loans of the same Type, made, converted or continued
on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in
effect or (b) a Swingline Loan.

     “Borrowing Request” means a request by the Borrowers for a Revolving Borrowing in
accordance with SECTION 2.3 in the form of Exhibit B.

     “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed;
provided that,

 

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when used in connection with a Eurodollar Loan, the term “Business Day” shall also
exclude any day on which banks are not open for dealings in dollar deposits in the London interbank
market.

     “Calculation Date” has the meaning assigned to such term in the definition of
“Applicable Rate”.

     “Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

     “Cash Equivalents” means:

     (a) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent
such obligations are backed by the full faith and credit of the United States of America), in each
case maturing within one year from the date of acquisition thereof;

     (b) investments in commercial paper maturing within 270 days from the date of acquisition
thereof and having, at such date of acquisition, the highest credit rating obtainable from S&P or
from Moody’s;

     (c) investments in certificates of deposit, banker’s acceptances and time deposits maturing
within 180 days from the date of acquisition thereof issued or guaranteed by or placed with, and
money market deposit accounts issued or offered by, any domestic office of any commercial bank
organized under the laws of the United States of America or any State thereof which has a combined
capital and surplus and undivided profits of not less than $500,000,000;

     (d) fully collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a financial institution satisfying
the criteria described in clause (c) above; and

     (e) money market funds that (i) comply with the criteria set forth in Securities and Exchange
Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by
Moody’s and (iii) have portfolio assets of at least $5,000,000,000.

     “Change in Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the
date hereof), of Equity Interests representing more than 35% of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests of FelCor Trust; (b) occupation of a
majority of the seats (other than vacant seats) on the board of directors of the FelCor Trust by
Persons who were neither (i) nominated by the board of directors of the FelCor Trust nor (ii)
appointed by directors so nominated; or (c) the acquisition of direct or indirect Control of FelCor
Trust by any Person or group.

     “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or the Issuing Bank (or, for purposes of SECTION 2.15(b), by any lending
office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any
request, guideline or directive (whether

 

-4-

or not having the force of law) of any Governmental Authority made or issued after the date of
this Agreement.

     “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans or Swingline Loans.

     “Closing Date” means December 12, 2005.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Revolving Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder,
expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit
Exposure hereunder, as such commitment may be (a) increased or reduced from time to time pursuant
to SECTION 2.9 and (b) reduced or increased from time to time pursuant to assignments by or to such
Lender pursuant to SECTION 9.4. The initial amount of each Lender’s Commitment is set forth on
Schedule 2.1, or in the Assignment and Assumption pursuant to which such Lender shall have
assumed its Commitment, as applicable. The initial aggregate amount of the Lenders’ Commitments is
$125,000,000.

     “Condominium Development” means the development of residential condominium units for
the purpose of resale.

     “Consolidated Net Income” shall mean, for any period, the net income (or loss) of the
Borrowers and their Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP consistently applied.

     “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

     “Credit Event” has the meaning assigned to such term in Section 4.2

     “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

     “Disclosed Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 3.6.

     “dollars” or “$” refers to lawful money of the United States of America.

     “Effective Date” means the date on which the conditions specified in SECTION 4.1 are
satisfied (or waived in accordance with SECTION 9.2).

     “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the management, release or threatened release of any Hazardous Material or to
health and safety matters.

 

-5-

     “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the
Borrowers or any Subsidiary directly or indirectly resulting from or based upon (a) violation of
any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any contract, agreement
or other consensual arrangement pursuant to which liability is assumed or imposed with respect to
any of the foregoing.

     “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such equity interest.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with the Borrowers, is treated as a single employer under Section 414(b) or (c) of the
Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a
single employer under Section 414 of the Code.

     “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by a
Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to
the termination of any Plan; (e) the receipt by a Borrower or any ERISA Affiliate from the PBGC or
a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (f) the incurrence by a Borrower or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by a Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from a Borrower or any ERISA Affiliate of any notice, concerning
the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

     “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

     “Event of Default” has the meaning assigned to such term in Article VII.

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the
Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of
the Borrowers hereunder, (a) income or franchise taxes imposed on (or measured by) its net income
by the United States of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which a Borrower is located and (c)
in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrowers
under SECTION 2.19(b)), any withholding tax

 

-6-

that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender
becomes a party to this Agreement (or designates a new lending office) or is attributable to such
Foreign Lender’s failure to comply with SECTION 2.17(e), except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office
(or assignment), to receive additional amounts from the Borrowers with respect to such withholding
tax pursuant to SECTION 2.17(a).

     “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

     “FelCor Partnership” has the meaning assigned to such term in the recitals.

     “FelCor Trust” has the meaning assigned to such term in the recitals.

     “Financial Officer” means the chief financial officer, principal accounting officer,
treasurer or controller of a Borrower.

     “Fixed Charges” means, with respect to any period, the sum of (a) Interest Charges for
such period and (b) the aggregate of all dividends and distributions payable (whether paid or
accrued) during such period on the preferred equity interests (if any) of the Borrowers and their
Subsidiaries (excluding any preferred equity interests in any lessee entity issued to a manager of
one or more of Borrowers’ or their Subsidiaries’ hotels or an Affiliate thereof in the nature of an
incentive management fee so long as the dividends and distributions payable on such preferred
equity interests have been subtracted in determining Total EBITDA.

     “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which a Borrower is located. For purposes of this definition, the United States
of America, each State thereof and the District of Columbia shall be deemed to constitute a single
jurisdiction.

     “GAAP” means generally accepted accounting principles as in effect from time to time
in the United States of America.

     “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

     “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary

 

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obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of
any letter of credit or letter of guaranty issued to support such Indebtedness or obligation;
provided, that the term Guarantee shall not include endorsements for collection or deposit
in the ordinary course of business.

     “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

     “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of
such Person upon which interest charges are customarily paid, (d) all obligations of such Person
under conditional sale or other title retention agreements relating to property acquired by such
Person, (e) all obligations of such Person in respect of the deferred purchase price of property or
services (excluding current accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by
such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) all
obligations, contingent or otherwise, of such Person as an account party in respect of letters of
credit and letters of guaranty, (j) all obligations, contingent or otherwise, of such Person in
respect of bankers’ acceptances, (k) all obligations of such Person under so-called forward equity
purchase contracts to the extent such obligations are not payable solely in equity interests, (l)
all uncollateralized obligations of such Person in respect of any Swap Agreements, and (m) all
obligations of such Person in respect of any so-called “synthetic lease” (i.e., a lease of property
which is treated as an operating lease under GAAP and as a loan for U.S. income tax purposes). The
Indebtedness of any Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such Person is liable therefor
as a result of such Person’s ownership interest in or other relationship with such entity, except
to the extent the terms of such Indebtedness provide that such Person is not liable therefor.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Interest Charges” means, with respect to any period, the sum (without duplication) of
the following (in each case, eliminating all offsetting debits and credits between a Borrower and
its Subsidiaries and all other items required to be eliminated in the course of the preparation of
consolidated financial statements of the Borrowers and their Subsidiaries in accordance with GAAP):
(a) all interest in respect of Indebtedness of the Borrowers and their Subsidiaries (including
imputed interest on Capital Lease Obligations) deducted in determining Consolidated Net Income for
such period, and (b) all debt discount and expense amortized or required to be amortized in the
determination of Consolidated Net Income for such period.

     “Interest Election Request” means a request by the Borrowers to convert or continue a
Revolving Borrowing in accordance with SECTION 2.8 and in the form of
Exhibit D.

     “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline
Loan), the last day of each March, June, September and December, (b) with respect to any Eurodollar
Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part
and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’
duration, each day prior to the last day of such Interest Period that occurs at intervals of three
months’ duration after the first

 

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day of such Interest Period and (c) with respect to any Swingline Loan, the day that such Loan
is required to be repaid.

     “Interest Period” means with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is seven (7) or fourteen (14) days (in each case, to the extent available from
all Lenders), or one, two, three or six months thereafter, as the Borrowers may elect;
provided, that (i) if any Interest Period would end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day unless, in the case of a
Eurodollar Borrowing only, such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business Day, (ii) any Interest
Period pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the last calendar month
of such Interest Period) shall end on the last Business Day of the last calendar month of such
Interest Period and (iii) no Interest Period shall extend beyond the Maturity Date. For purposes
hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and
thereafter shall be the effective date of the most recent conversion or continuation of such
Borrowing.

     “Investments” means all investments, in cash or by delivery of property made, directly
or indirectly (i) in any Person, whether by acquisition of shares of capital stock, Indebtedness or
other obligations or securities or by loan, advance, guaranty, capital contribution or otherwise,
or (ii) in any assets or property.

     “Issuing Bank” means JPMorgan Chase Bank, N.A., in its capacity as the issuer of
Letters of Credit hereunder, and its successors in such capacity as provided in SECTION 2.6(i).
The Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by
Affiliates of the Issuing Bank, in which case the term “Issuing Bank” shall include any such
Affiliate with respect to Letters of Credit issued by such Affiliate.

     “Joint Venture” means a partnership, limited liability company, corporation, joint
venture or trust (other than a Subsidiary) in which a Borrower or its Subsidiaries own less than
100% of the Equity Interests.

     “LC Disbursement” means a payment made by the Issuing Bank pursuant to a Letter of
Credit.

     “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements
that have not yet been reimbursed by or on behalf of the Borrowers at such time. The LC Exposure
of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

     “Lenders” means the Persons listed on Schedule 2.1 and any other Person that
shall have become a party hereto pursuant to SECTION 2.9(d) or an Assignment and Assumption, other
than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.
Unless the context otherwise requires, the term “Lenders” includes the Swingline Lender.

     “Letter of Credit” means any letter of credit issued or deemed to be issued pursuant
to this Agreement.

     “Leverage Ratio” has the meaning assigned to such term in SECTION 6.1(a).

 

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     “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Telerate Page 3750 (or on any successor or substitute page of such service,
or any successor to or substitute for such service, providing rate quotations comparable to those
currently provided on such page of such service, as determined by the Administrative Agent from
time to time for purposes of providing quotations of interest rates applicable to dollar deposits
in the London interbank market) at approximately 11:00 a.m., London time, two Business Days prior
to the commencement of such Interest Period, as the rate for dollar deposits with a maturity
comparable to such Interest Period. In the event that such rate is not available at such time for
any reason, then the “LIBO Rate” with respect to such Eurodollar Borrowing for such
Interest Period shall be the rate (rounded upwards, if necessary, to the next 1/16 of 1%) at which
dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by
the principal London office of the Administrative Agent in immediately available funds in the
London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

     “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call
or similar right of a third party with respect to such securities.

     “Loan Documents” means this Agreement, the Subsidiary Guaranties, any Notes issued
hereunder, any Borrowing Request, any Interest Election Request and all other related agreements
and documents, executed, issued or delivered hereunder or thereunder or pursuant hereto or thereto.

     “Loans” means the loans made by the Lenders to the Borrowers pursuant to this
Agreement.

     “Margin Stock” means “margin stock” or “margin security” as such terms are defined in
Regulations U and X.

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations, prospects or condition, financial or otherwise, of the Borrowers and the Subsidiaries
taken as a whole, (b) the ability of the Borrowers or the Subsidiary Guarantors to perform any of
their obligations under this Agreement or any other Loan Document or (c) the rights of or benefits
available to the Lenders under this Agreement or any other Loan Document.

     “Material Indebtedness” means Recourse Indebtedness (other than the Loans and Letters
of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the
Borrowers and their Subsidiaries in an aggregate principal amount exceeding $10,000,000. For
purposes of determining Material Indebtedness, the “principal amount” of the obligations of a
Borrower or any Subsidiary in respect of any Swap Agreement at any time shall be the maximum
aggregate amount (giving effect to any netting agreements) that such Borrower or such Subsidiary
would be required to pay if such Swap Agreement were terminated at such time.

     “Maturity Date” means January 2, 2009, or if such date is extended pursuant to SECTION
2.10, January 2, 2010.

     “Moody’s” means Moody’s Investors Service, Inc.

 

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     “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

     “Non-Recourse Indebtedness” means any Indebtedness: (a) under the terms of which the
payee’s remedies upon the occurrence of an event of default are limited to specific, identified
assets of the payor which secure such Indebtedness and (b) for the repayment of which neither a
Borrower nor any Subsidiary (other than a special purpose Subsidiary which owns such assets) has
any personal liability beyond the loss of such specified assets, except for liability for fraud,
material misrepresentation or misuse or misapplication of insurance proceeds, condemnation awards,
existence of hazardous wastes or other customary exceptions to non-recourse provisions for the
financing of real estate.

     “Note” or “Notes” means any promissory notes of the Borrowers in favor of a
Lender evidencing the Revolving Loans, and any promissory notes issued to the Swingline Lender
evidencing Swingline Loans, as such promissory note may be amended, modified, supplemented,
extended, renewed or replaced from time to time and in the form of Exhibit C, individually or
collectively, as appropriate.

     “Obligations” means, without duplication, all of the obligations, liabilities and
indebtedness of the Borrowers to the Lenders and the Administrative Agent, whenever arising, under
this Agreement, any Notes issued hereunder, or any of the other Loan Documents to which a Borrower
is a party, including without limitation the outstanding principal amount of the Loans, interest
and fees.

     “Other Taxes” means any and all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any payment made hereunder
or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement.

     “Participant” has the meaning set forth in SECTION 9.4.

     “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

     “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

     “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA,
and in respect of which a Borrower or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

     “Prime Rate” means the rate of interest per annum publicly announced from time to time
by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in New York City;
each change in the Prime Rate shall be effective from and including the date such change is
publicly announced as being effective.

     “Recourse Indebtedness” means any Indebtedness other than Non-Recourse Indebtedness.

     “Register” has the meaning set forth in SECTION 9.4.

     “Regulations T, U, and X” means Regulations T, U and X, respectively, of the Board (or
any successor body) as from time to time in effect and any successor to all or a portion thereof.

 

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     “REIT” means a domestic trust or corporation that qualifies as a real estate
investment trust under the provisions of Sections 856, et seq., of the Code.

     “Related Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

     “Required Lenders” means, at any time, Lenders having Revolving Credit Exposures and
unused Commitments representing at least 50.1% of the sum of the total Revolving Credit Exposures
and unused Commitments at such time; provided that, in the event any of the Lenders shall
have failed to fund its share of any Borrowing requested by the Borrowers which such Lender is
obligated to fund under the terms of this Agreement and any such failure has not been cured as
provided in SECTION 2.7(b), then for so long as such failure continues, “Required Lenders” means
Lenders (excluding all Lenders whose failure to fund their respective shares of such Borrowing have
not been so cured) having Revolving Credit Exposures and unused Commitments representing at least
50.1% of the sum of the total Revolving Credit Exposures and unused Commitments of such Lenders at
such time.

     “Restricted Investments” means all Investments except the following:

     (a) Investments in property to be used in the ordinary course of business of the Borrowers and
their Subsidiaries;

     (b) Investments in current assets arising in the ordinary course of business of the Borrowers
and their Subsidiaries;

     (c) Investments directly in real property in the ordinary course of business of the Borrowers
and their Subsidiaries;

     (d) Investments in entities owning real properties provided that income from such
Investments shall be either (i) qualified dividends under the “75% gross income test” under Section
856(c)(3) of the Code or (ii) “rents from real property” under applicable provisions of the Code;

     (e) Investments in one or more Subsidiaries or any Person that concurrently with such
Investment becomes a Subsidiary, provided that each such Subsidiary is a either a
“qualified REIT subsidiary” within the meaning of section 856(i) of the Code or any successor
provision, a partnership or a disregarded entity under Treasury Regulation 301.7701-3, or a
“taxable REIT subsidiary” within the meaning of section 856(i) of the Code or any successor
provision;

     (f) Investments in cash and Cash Equivalents;

     (g) Investments consisting of extensions of credit in the nature of accounts receivable or
notes receivable arising from the grant of trade credit extended in the ordinary course of
business; provided that the aggregate amount of such receivables that do not relate directly to
hotel operations shall not exceed $3,000,000 at any time; and

     (h) Investments received in the ordinary course of business in satisfaction or partial
satisfaction of delinquent amounts owed by financially troubled account debtors.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in a Borrower or any Subsidiary,
or any payment (whether in cash, securities or other property), including any sinking fund or
similar deposit, on

 

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account of the purchase, redemption, retirement, acquisition, cancellation or termination of
any such Equity Interests in a Borrower or Subsidiary or any option, warrant or other right to
acquire any such Equity Interests in a Borrower or Subsidiary.

     “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of
the outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure and Swingline
Exposure at such time.

     “Revolving Loan” means a Loan made pursuant to SECTION 2.3.

     “S&P” means Standard & Poor’s Ratings Group, a division of McGraw-Hill Companies, Inc.

     “Secured Indebtedness” means Indebtedness of a Borrower or any Subsidiary secured by a
Lien.

     “Senior Unsecured Notes” means the senior unsecured notes of the Borrowers with
maturity dates of October, 2007 and June, 2011, in each case issued pursuant to the applicable
Senior Unsecured Notes Indenture.

     “Senior Unsecured Notes Indentures” means the following Indentures entered into by the
Borrowers and certain of the Subsidiary Guarantors: (a) Indenture dated as of October 1, 1997 with
respect to the 7-5/8% Senior Notes due 2007, (b) Indenture dated as of June 4, 2001 with respect to
the 8-1/2% Senior Notes due 2011, and (c) Indenture dated as of May 26, 2004 with respect to the
Senior Floating Rate Notes due 2011, in each case as amended and supplemented to the date hereof.

     “Solvent” means, with respect to any Person as of a particular date, that on such date
(a) such Person is able to pay its debts and other liabilities, contingent obligations and other
commitments as they mature in the normal course of business, (b) such Person does not intend to,
and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay
as such debts and liabilities mature in their ordinary course, (c) such Person is not engaged in a
business or a transaction, and is not about to engage in a business or a transaction, for which
such Person’s assets would constitute unreasonably small capital after giving due consideration to
the prevailing practice in the industry in which such Person is engaged or is to engage, (d) the
fair value of the assets of such Person is greater than the total amount of liabilities, including,
without limitation, contingent liabilities, of such Person, and (e) the present fair saleable value
of the assets of such Person is not less than the amount that will be required to pay the probable
liability of such Person on its debts as they become absolute and matured. In computing the amount
of contingent liabilities at any time, it is intended that such liabilities will be computed at the
amount which, in light of all the facts and circumstances existing at such time, represents the
amount that can reasonably be expected to become an actual or matured liability.

     “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board to which the Administrative Agent is subject, with
respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding
and to be subject to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender under such Regulation D
or any comparable

 

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regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

     “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as
of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by
the parent and one or more subsidiaries of the parent.

     “Subsidiary” means any subsidiary of the Borrowers.

     “Subsidiary Guarantor” means the Subsidiaries listed on Schedule SG and any other
Person which becomes a party to the Subsidiary Guaranty in accordance with SECTION 5.13.

     “Subsidiary Guaranty” means the guaranty delivered for the benefit of the
Administrative Agent and the Lenders in substantially the form attached hereto as Exhibit E.

     “Swap Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Borrowers or the Subsidiaries shall be
a Swap Agreement.

     “Swingline Exposure” means, at any time, the aggregate principal amount of all
Swingline Loans outstanding at such time. The Swingline Exposure of any Lender at any time shall
be its Applicable Percentage of the total Swingline Exposure at such time.

     “Swingline Lender” means JPMorgan Chase Bank, N.A., in its capacity as lender of
Swingline Loans hereunder.

     “Swingline Loan” means a Loan made pursuant to SECTION 2.5.

     “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

     “Total Assets” means, as of any date of determination, the total book value of all
assets of the Borrowers and their Subsidiaries determined on a consolidated basis in accordance
with GAAP.

     “Total EBITDA” shall mean, for any period, Consolidated Net Income for such period
plus, to the extent deducted in determining Consolidated Net Income during such period (without
duplication), (i) income tax expense for such period, (ii) Interest Charges for such period, (iii)
depreciation of real estate owned and amortization expense for such period, and (iv) amortization
of intangibles for such period, after eliminating therefrom all extraordinary nonrecurring items of
income or expense, including non-cash impairment charges, non-cash write-offs of deferred financing
costs incurred

 

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prior to the date hereof, and costs, premiums and penalties arising by contract in connection
with the prepayment of Indebtedness .

     “Total Net Debt” means, as of any date of determination, the total amount of all
Indebtedness of the Borrowers and their Subsidiaries minus unrestricted cash and Cash Equivalents
in excess of $25,000,000 on the balance sheet of the Borrowers, all as determined on a consolidated
basis in accordance with GAAP.

     “Total Unencumbered Assets” means, as of any date of determination, the total book
value of all Unencumbered Assets of the Borrowers and their Subsidiaries determined on a
consolidated basis in accordance with GAAP.

     “Transactions” means the execution, delivery and performance by the Borrowers and the
Subsidiary Guarantors of this Agreement and the other Loan Documents, the borrowing of Loans, the
use of the proceeds thereof and the issuance of Letters of Credit hereunder.

     “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate or the Alternate Base Rate.

     “Unencumbered Assets” means all income-producing real property assets in the United
States and Canada which are (1) improved with a building for which a certificate of occupancy has
been issued (where available) or which is otherwise being lawfully occupied for its intended uses,
(2) either (A) 100% owned in fee (or leasehold under a ground lease that has a remaining term of at
least thirty (30) years (except that up to five of the ground-leases for existing Unencumbered
Assets may have a remaining term of at least twenty (20) years) and that has customary provisions
to permit non-recourse leasehold mortgage financing under customary prudent lending requirements
(an “Eligible Ground Lease”)) by a Borrower or a wholly-owned Subsidiary, or (B) at least 51% owned
in fee (or leasehold under an Eligible Ground Lease), directly or indirectly (including through a
Joint Venture), by the Borrowers and their Subsidiaries, so long as a Borrower substantially
controls the sale and financing of such property, (3) free of (and if owned by a Subsidiary or a
Joint Venture, the Equity Interests of such Subsidiary or Joint Venture are free of) all Liens and
negative pledges (other than those permitted by clauses (a) through (e) of SECTION 6.2), and (4)
not subject to any Environmental Liability or other event or occurrence which would have a Material
Adverse Effect.

     “Unencumbered Leverage Ratio” has the meaning assigned to such term in SECTION 6.1(c).

     “Unsecured Indebtedness” means at any time the aggregate unpaid principal amount of
all Indebtedness of the Borrowers and their Subsidiaries, other than (i) Indebtedness of a
Subsidiary owing to a Borrower or to a wholly-owned Subsidiary and (ii) Secured Indebtedness.

     “Unused Fee” has the meaning assigned to such term in SECTION 2.12(a).

     “Unused Fee Rate” means 0.50% per annum; provided that during any period beginning on
one Calculation Date and ending on the date immediately preceding the next Calculation Date that
(a) the Unencumbered Leverage Ratio is less than 5.0 to 1 and (b) no Default or Event of Default
has occurred and is continuing, the Unused Fee Rate shall be 0.375%.

 

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     “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

     SECTION 1.2. Classification of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by
Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a
“Eurodollar Revolving Loan”). Borrowings also may be classified and referred to by Class
(e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”).

     SECTION 1.3. Terms Generally. The definitions of terms herein shall apply equally to
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”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights.

     SECTION 1.4. Accounting Terms; GAAP. Except as otherwise expressly provided herein,
all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that, if the Borrowers notify the Administrative Agent
that the Borrowers request an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on the operation of
such provision (or if the Administrative Agent notifies the Borrowers that the Required Lenders
request an amendment to any provision hereof for such purpose), regardless of whether any such
notice is given before or after such change in GAAP or in the application thereof, then such
provision shall be interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith.

     SECTION 1.5. Joint Venture Investments. For purposes of calculating the financial
covenants in SECTION 6.1 (including the definitions used therein), (a) Total EBITDA shall be
calculated, to the extent applicable, to include the pro-rata share (as determined by their
respective percentage interests in the profits and losses of such Joint Venture) of results
attributable to the Borrowers and their Subsidiaries from Joint Ventures and (b) Total Net Debt and
Unsecured Indebtedness shall be calculated as follows: (i) if the Indebtedness of a Joint Venture
is recourse to a Borrower or one of its Subsidiaries (other than Indebtedness which is recourse
only to a special purpose Subsidiary which owns the assets securing such Indebtedness), then Total
Net Debt and Unsecured Indebtedness shall include the amount of such Indebtedness that is recourse
to such Person, without duplication, and (ii) if the Indebtedness of such Joint Venture is not
recourse to a Borrower or one of its Subsidiaries, then Total Net Debt and Unsecured Indebtedness
shall include such Person’s pro-rata share of such Indebtedness as determined by its percentage
interest in the profits and losses of such Joint Venture. For purposes of this SECTION 1.5,
Indebtedness of a Joint Venture that is recourse to a Borrower or one of its Subsidiaries solely as
a result of such Person’s being a partner or member in such
Joint Venture shall be treated as not.

 

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recourse to such Person as long as the only assets owned by such Person are its equity
interest in such Joint Venture and any contributed capital held to fund such equity interest.

ARTICLE II

THE CREDITS

     SECTION 2.1. Commitments. Subject to the terms and conditions set forth herein, each
Lender agrees to make Revolving Loans to the Borrowers in dollars from time to time and to acquire
participations in Swingline Loan and Letters of Credit during the Availability Period in an
aggregate principal amount that will not result in (a) such Lender’s Revolving Credit Exposure
exceeding such Lender’s Commitment or (b) the total Revolving Credit Exposures exceeding the total
Commitments. Within the foregoing limits and subject to the terms and conditions set forth herein,
the Borrowers may borrow, prepay and reborrow Revolving Loans.

     SECTION 2.2. Loans and Borrowings. (a) Each Revolving Loan shall be made as part of
a Borrowing consisting of Revolving Loans made by the Lenders ratably in accordance with their
respective Commitments. Each Swingline Loan shall be made in accordance with the procedures set
forth in SECTION 2.5. The failure of any Lender to make any Loan required to be made by it shall
not relieve any other Lender of its obligations hereunder; provided that the Commitments of
the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make
Loans as required.

     (b) Subject to SECTION 2.14, each Revolving Borrowing shall be comprised entirely of ABR Loans
or Eurodollar Loans as the Borrowers may request in accordance herewith. Each Swingline Loan shall
be an ABR Loan. Each Lender at its option may make any Eurodollar Loan by causing any domestic or
foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of
such option shall not affect the obligation of the Borrowers to repay such Loan in accordance with
the terms of this Agreement.

     (c) At the commencement of each Interest Period for any Eurodollar Revolving Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less
than $5,000,000. At the time that each ABR Revolving Borrowing is made, such Borrowing shall be in
an aggregate amount that is an integral multiple of $500,000 and not less than $2,000,000;
provided that an ABR Revolving Borrowing may be in an aggregate amount that is equal to the
entire unused balance of the total Commitments or that is required to finance the reimbursement of
an LC Disbursement as contemplated by SECTION 2.6(e). Each Swingline Loan shall be in an amount
that is an integral multiple of $100,000 and not less than $500,000. Borrowings of more than one
Type and Class may be outstanding at the same time; provided that there shall not at any
time be more than a total of ten (10) Eurodollar Revolving Borrowings outstanding.

     (d) Notwithstanding any other provision of this Agreement, the Borrowers shall not be entitled
to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with
respect thereto would end after the Maturity Date.

     SECTION 2.3. Requests for Revolving Borrowings. To request a Revolving Borrowing, the
Borrowers shall notify the Administrative Agent of such request by telephone (a) in the case of a
Eurodollar Borrowing, not later than 12:00 p.m., New York City time, three Business Days before the
date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 12:00 p.m.,
New York City time, one Business Day before the date of the proposed Borrowing; provided
that any such notice of an ABR Revolving Borrowing to finance the reimbursement of an LC
Disbursement as contemplated by SECTION 2.6(e) may be given not later than 10:00 a.m., New York
City time, on the

 

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date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable
and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written Borrowing Request signed by the Borrowers. Each such Borrowing Request, whether telephonic
and/or written, shall specify the following information in compliance with SECTION 2.2:

     (i) the aggregate amount of the requested Borrowing;

     (ii) the date of such Borrowing, which shall be a Business Day;

     (iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing;

     (iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of the
term “Interest Period”; and

     (v) the location and number of a Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of SECTION 2.7.

If no election as to the Type of Revolving Borrowing is specified, then the requested Revolving
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any
requested Eurodollar Revolving Borrowing, then the Borrowers shall be deemed to have selected an
Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request in
accordance with this SECTION 2.3, the Administrative Agent shall advise each Lender of the details
thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.
Each such Borrowing Request shall be accompanied by the officer’s certificate required by SECTION
6.1(e).

     SECTION 2.4. [RESERVED]

     SECTION 2.5. Swingline Loans. (a) Subject to the terms and conditions set forth
herein, the Swingline Lender agrees to make Swingline Loans to the Borrowers from time to time
during the Availability Period, in an aggregate principal amount at any time outstanding that will
not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding
$10,000,000 or (ii) the total Revolving Credit Exposures exceeding the total Commitments;
provided that the Swingline Lender shall not be required to make a Swingline Loan to
refinance an outstanding Swingline Loan. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrowers may borrow, prepay and reborrow Swingline Loans.

     (b) To request a Swingline Loan, the Borrowers shall notify the Administrative Agent of such
request by telephone (confirmed by telecopy in the form of Exhibit B), not later than 12:00 noon,
New York City time, on the day of a proposed Swingline Loan. Each such notice shall be irrevocable
and shall specify the requested date (which shall be a Business Day) and amount of the requested
Swingline Loan. The Administrative Agent will promptly advise the Swingline Lender of any such
notice received from the Borrowers. The Swingline Lender shall make each Swingline Loan available
to the Borrowers by means of a credit to the general deposit account of the Borrowers with the
Swingline Lender (or, in the case of a Swingline Loan made to finance the reimbursement of an LC
Disbursement as provided in SECTION 2.6(e), by remittance to the Issuing Bank) by 3:00 p.m., New
York City time, on the requested date of such Swingline Loan.

     (c) The Swingline Lender may by written notice given to the Administrative Agent not later
than 10:00 a.m., New York City time, on any Business Day require the Lenders to acquire

 

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participations on such Business Day in all or a portion of the Swingline Loans outstanding.
Such notice shall specify the aggregate amount of Swingline Loans in which Lenders will
participate. Promptly upon receipt of such notice, the Administrative Agent will give notice
thereof to each Lender, specifying in such notice such Lender’s Applicable Percentage of such
Swingline Loan or Loans. Each Lender hereby absolutely and unconditionally agrees, upon receipt of
notice as provided above, to pay to the Administrative Agent, for the account of the Swingline
Lender, such Lender’s Applicable Percentage of such Swingline Loan or Loans. Each Lender
acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant
to this paragraph is absolute and unconditional and shall not be affected by any circumstance
whatsoever, including the occurrence and continuance of a Default or reduction or termination of
the Commitments, and that each such payment shall be made without any offset, abatement,
withholding or reduction whatsoever. Each Lender shall comply with its obligation under this
paragraph by wire transfer of immediately available funds, in the same manner as provided in
SECTION 2.7 with respect to Loans made by such Lender (and SECTION 2.7 shall apply, mutatis
mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall
promptly pay to the Swingline Lender the amounts so received by it from the Lenders. The
Administrative Agent shall notify the Borrowers of any participations in any Swingline Loan
acquired pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan
shall be made to the Administrative Agent and not to the Swingline Lender. Any amounts received by
the Swingline Lender from the Borrowers (or other party on behalf of the Borrowers) in respect of a
Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale of participations
therein shall be promptly remitted to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative Agent to the Lenders that
shall have made their payments pursuant to this paragraph and to the Swingline Lender, as their
interests may appear; provided that any such payment so remitted shall be repaid to the Swingline
Lender or to the Administrative Agent, as applicable, if and to the extent such payment is required
to be refunded to the Borrowers for any reason. The purchase of participations in a Swingline Loan
pursuant to this paragraph shall not relieve the Borrowers of any default in the payment thereof.

     SECTION 2.6. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Borrowers may request the issuance of Letters of Credit for its
own account, in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at
any time and from time to time during the Availability Period. In the event of any inconsistency
between the terms and conditions of this Agreement and the terms and conditions of any form of
letter of credit application or other agreement submitted by the Borrowers to, or entered into by
the Borrowers with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of
this Agreement shall control. On the Effective Date, the letters of credit previously issued by
JPMorgan Chase Bank, N.A. and listed on Schedule 2.6 shall be deemed to be Letters of
Credit issued under this Agreement.

     (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter
of Credit), the Borrowers shall hand deliver or telecopy (or transmit by electronic communication,
if arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the
Administrative Agent (at least five (5) Business Days in advance of the requested date of issuance,
amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of
issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such
Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount
of such Letter of Credit, the name and address of the beneficiary thereof and such other
information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. Each
such notice shall be accompanied by the officer’s certificate required by SECTIONS 4.2(f) and
6.1(e). The Administrative Agent shall promptly advise each Lender of each such notice. If
requested by the Issuing Bank, the Borrowers also shall submit a letter of credit application on
the Issuing Bank’s standard form in connection with any request for a Letter of Credit. A

 

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Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance,
amendment, renewal or extension of each Letter of Credit the Borrowers shall be deemed to represent
and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the LC
Exposure shall not exceed $10,000,000 and (ii) the total Revolving Credit Exposures shall not
exceed the total Commitments.

     (c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date one year after the date of the issuance of such Letter of
Credit (or, in the case of any renewal or extension thereof, one year after such renewal or
extension) and (ii) the date that is ten (10) Business Days prior to the Maturity Date;
provided, that any Letter of Credit with a one-year term may provide for the automatic
renewal thereof for additional one-year periods, so long as such automatic renewal does not extend
the expiration date of any such Letters of Credit beyond the date that is ten (10) Business Days
prior to the Maturity Date.

     (d) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each Lender hereby
acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Lender’s
Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit.
In consideration and in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank,
such Lender’s Applicable Percentage of each LC Disbursement made by the Issuing Bank and not
reimbursed by the Borrowers on the date due as provided in paragraph (e) of this Section, or of any
reimbursement payment required to be refunded to the Borrowers for any reason. Each Lender
acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in
respect of Letters of Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or
the occurrence and continuance of a Default or reduction or termination of the Commitments, and
that each such payment shall be made without any offset, abatement, withholding or reduction
whatsoever.

     (e) Reimbursement. If the Issuing Bank shall make any LC Disbursement in respect of a
Letter of Credit, the Borrowers shall reimburse such LC Disbursement by paying to the
Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon, New York
City time, on the date that such LC Disbursement is made, if the Borrowers shall have received
notice of such LC Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such
notice has not been received by the Borrowers prior to such time on such date, then not later than
12:00 noon, New York City time, on (i) the Business Day that the Borrowers receive such notice, if
such notice is received prior to 10:00 a.m., New York City time, on the day of receipt, or (ii) the
Business Day immediately following the day that the Borrowers receive such notice, if such notice
is not received prior to such time on the day of receipt; provided that the Borrowers may,
subject to the conditions to borrowing set forth herein, request in accordance with SECTION 2.3 or
SECTION 2.5 that such payment be financed with an ABR Revolving Borrowing or Swingline Loan in an
equivalent amount and, to the extent so financed, the Borrowers’ obligation to make such payment
shall be discharged and replaced by the resulting ABR Revolving Borrowing or Swingline Loan. If
the Borrowers fail to make such payment when due, the Administrative Agent shall notify each Lender
of the applicable LC Disbursement, the payment then due from the Borrowers in respect thereof and
such Lender’s Applicable Percentage thereof. Promptly following receipt of such notice, each
Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from
the Borrowers, in the same manner as provided in SECTION 2.7 with respect to Loans made by such
Lender (and SECTION 2.7 shall apply, mutatis mutandis, to the payment obligations
of the Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the amounts so
received by it from the Lenders. Promptly following receipt by the Administrative

 

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Agent of any payment from the Borrowers pursuant to this paragraph, the Administrative Agent
shall distribute such payment to the Issuing Bank or, to the extent that Lenders have made payments
pursuant to this paragraph to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank
as their interests may appear. Any payment made by a Lender pursuant to this paragraph to
reimburse the Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving Loans
or a Swingline Loan as contemplated above) shall not constitute a Loan and shall not relieve the
Borrowers of their obligation to reimburse such LC Disbursement.

     (f) Obligations Absolute. Each Borrower’s obligation to reimburse LC Disbursements as
provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and
shall be performed strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any
Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other
document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any
respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the
Issuing Bank under a Letter of Credit against presentation of a draft or other document that does
not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of
this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, a
Borrower’s obligations hereunder. Neither the Administrative Agent, the Lenders nor the Issuing
Bank, nor any of their Related Parties, shall have any liability or responsibility by reason of or
in connection with the issuance or transfer of any Letter of Credit or any payment or failure to
make any payment thereunder (irrespective of any of the circumstances referred to in the preceding
sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any
draft, notice or other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of technical terms or
any consequence arising from causes beyond the control of the Issuing Bank; provided that
the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrowers to
the extent of any direct damages (as opposed to consequential damages, claims in respect of which
are hereby waived by the Borrowers to the extent permitted by applicable law) suffered by the
Borrowers that are caused by the Issuing Bank’s failure to exercise care when determining whether
drafts and other documents presented under a Letter of Credit comply with the terms thereof. The
parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on
the part of the Issuing Bank (as finally determined by a court of competent jurisdiction), the
Issuing Bank shall be deemed to have exercised care in each such determination. In furtherance of
the foregoing and without limiting the generality thereof, the parties agree that, with respect to
documents presented which appear on their face to be in substantial compliance with the terms of a
Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon
such documents without responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such documents if such
documents are not in strict compliance with the terms of such Letter of Credit.

     (g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of
Credit. The Issuing Bank shall promptly notify the Administrative Agent and the Borrowers by
telephone (confirmed by telecopy) of such demand for payment and whether the Issuing Bank has made
or will make an LC Disbursement thereunder; provided that any failure to give or delay in
giving such notice shall not relieve the Borrowers of their obligation to reimburse the Issuing
Bank and the Lenders with respect to any such LC Disbursement nor shall the Issuing Bank have any
liability whatsoever to the Borrowers or the Lenders for any failure to give such notice.

     (h) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then,
unless the Borrowers shall reimburse such LC Disbursement in full on the date such LC Disbursement
is

 

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made, the unpaid amount thereof shall bear interest, for each day from and including the date
such LC Disbursement is made to but excluding the date that the Borrowers reimburse such LC
Disbursement, at the rate per annum then applicable to ABR Revolving Loans; provided that,
if the Borrowers fail to reimburse such LC Disbursement when due pursuant to paragraph (e) of this
Section, then SECTION 2.13(c) shall apply. Interest accrued pursuant to this paragraph shall be
for the account of the Issuing Bank, except that interest accrued on and after the date of payment
by any Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall be for
the account of such Lender to the extent of such payment.

     (i) Replacement of the Issuing Bank. The Issuing Bank may be replaced at any time by
written agreement among the Borrowers, the Administrative Agent, the replaced Issuing Bank and the
successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement
of the Issuing Bank. At the time any such replacement shall become effective, the Borrowers shall
pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to SECTION
2.12(b). From and after the effective date of any such replacement, (i) the successor Issuing Bank
shall have all the rights and obligations of the Issuing Bank under this Agreement with respect to
Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank”
shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor
and all previous Issuing Banks, as the context shall require. After the replacement of an Issuing
Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have
all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of
Credit issued by it prior to such replacement, but shall not be required to issue additional
Letters of Credit.

     (j) Cash Collateralization. If any Event of Default shall occur and be continuing, on
the Business Day that the Borrowers receive notice from the Administrative Agent or the Required
Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure
representing at least 50.1% of the total LC Exposure) demanding the deposit of cash collateral
pursuant to this paragraph, the Borrowers shall deposit in an account with the Administrative
Agent, in the name of the Administrative Agent and for the benefit of the Lenders, an amount in
cash equal to the LC Exposure as of such date plus any accrued and unpaid interest thereon;
provided that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without demand or other
notice of any kind, upon the occurrence of any Event of Default with respect to a Borrower
described in clause (h) or (i) of Article VII. Such deposit shall be held by the Administrative
Agent as collateral for the payment and performance of the obligations of the Borrowers under this
Agreement. The Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Other than any interest earned on the investment
of such deposits, which investments shall be made at the option and sole discretion of the
Administrative Agent and at the Borrowers’ risk and expense, such deposits shall not bear interest.
Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such
account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC
Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held
for the satisfaction of the reimbursement obligations of the Borrowers for the LC Exposure at such
time or, if the maturity of the Loans has been accelerated (but subject to the consent of Lenders
with LC Exposure representing at least 50.1% of the total LC Exposure), be applied to satisfy
other obligations of the Borrowers under this Agreement. If the Borrowers are required to provide
an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such
amount (to the extent not applied as aforesaid) shall be returned to the Borrowers within three
Business Days after all Events of Default have been cured or waived or after all of the Obligations
have been paid in full in cash and the Commitments and all Letters of Credit have been terminated.

 

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     SECTION 2.7. Funding of Borrowings. (a) Each Lender shall make each Loan to be made
by it hereunder on the proposed date thereof by wire transfer of immediately available funds by
12:00 noon, New York City time, to the account of the Administrative Agent most recently designated
by it for such purpose by notice to the Lenders; provided that Swingline Loans shall be
made as provided in SECTION 2.5. The Administrative Agent will make such Loans available to the
Borrowers by promptly crediting the amounts so received, in like funds, to an account of a Borrower
maintained with the Administrative Agent in New York City and designated by the Borrowers in the
applicable Borrowing Request; provided that ABR Revolving Loans or Swingline Loans made to
finance the reimbursement of an LC Disbursement as provided in SECTION 2.6(e) shall be remitted by
the Administrative Agent to the Issuing Bank.

     (b) Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the Administrative Agent
such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has
made such share available on such date in accordance with paragraph (a) of this Section and may, in
reliance upon such assumption, make available to the Borrowers a corresponding amount. In such
event, if a Lender has not in fact made its share of the applicable Borrowing available to the
Administrative Agent, then the applicable Lender and the Borrowers severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to the Borrowers to but excluding the
date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation or (ii) in the case of the Borrowers, the interest
rate applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then
such amount shall constitute such Lender’s Loan included in such Borrowing.

     SECTION 2.8. Interest Elections. (a) Each Revolving Borrowing initially shall be of
the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Revolving
Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.
Thereafter, the Borrowers may elect to convert such Borrowing to a different Type or to continue
such Borrowing and, in the case of a Eurodollar Revolving Borrowing, may elect Interest Periods
therefor, all as provided in this Section. The Borrowers may elect different options with respect
to different portions of the affected Borrowing, in which case each such portion shall be allocated
ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate Borrowing. This Section shall not apply to
Swingline Borrowings, which may not be converted or continued.

     (b) To make an election pursuant to this Section, the Borrowers shall notify the
Administrative Agent of such election by telephone by the time that a Borrowing Request would be
required under SECTION 2.3 if the Borrowers were requesting a Revolving Borrowing of the Type
resulting from such election to be made on the effective date of such election. Each such
telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Interest Election Request in the form
of Exhibit D and signed by the Borrowers.

     (c) Each telephonic and written Interest Election Request shall specify the following
information in compliance with SECTION 2.2:

     (i) the Borrowing to which such Interest Election Request applies and, if
different options are being elected with respect to different portions thereof, the
portions thereof to be allocated to each resulting Borrowing (in which case the
information to be

 

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specified pursuant to clauses (iii) and (iv) below shall be specified for each
resulting Borrowing);

     (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

     (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; and

     (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period
to be applicable thereto after giving effect to such election, which shall be a
period contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then the Borrowers shall be deemed to have selected an Interest Period of one
month’s duration.

     (d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

     (e) If the Borrowers fail to deliver a timely Interest Election Request with respect to a
Eurodollar Revolving Borrowing prior to the end of the Interest Period applicable thereto, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest Period such
Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof,
if an Event of Default has occurred and is continuing and the Administrative Agent, at the request
of the Required Lenders, so notifies the Borrowers, then, so long as an Event of Default is
continuing (i) no outstanding Revolving Borrowing may be converted to or continued as a Eurodollar
Borrowing and (ii) unless repaid, each Eurodollar Revolving Borrowing shall be converted to an ABR
Borrowing at the end of the Interest Period applicable thereto.

     SECTION 2.9. Termination and Reduction of Commitments. (a) Unless previously
terminated, the Commitments shall terminate on the Maturity Date.

     (b) The Borrowers may at any time terminate, or from time to time reduce, the Commitments;
provided that (i) each reduction of the Commitments shall be in an amount that is an
integral multiple of $1,000,000 and not less than $5,000,000, (ii) the Borrowers shall not
terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the
Loans in accordance with SECTION 2.11, the total Revolving Credit Exposures would exceed the total
Commitments and (iii) unless the Commitments are reduced to zero, no reduction shall be made which
would reduce the Commitments to an amount less than $75,000,000.

     (c) The Borrowers shall notify the Administrative Agent of any election to terminate or reduce
the Commitments under paragraph (b) of this Section at least three Business Days prior to the
effective date of such termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Borrowers pursuant to this Section
shall be irrevocable; provided that a notice of termination of the Commitments delivered by
the Borrowers may state that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by the Borrowers (by notice to the
Administrative Agent on or prior to the specified effective date) if such condition is not
satisfied. Any termination or reduction of the Commitments shall be permanent. Each reduction of
the Commitments shall be made ratably among the Lenders in accordance with their respective
Commitments.

 

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     (d) Unless a Default or an Event of Default has occurred and is continuing, the Borrowers, by
written notice to the Administrative Agent, may request on up to four (4) occasions that the
Commitments be increased by an amount not less than $25,000,000 per request and not more than
$125,000,000 in the aggregate (such that the total Commitments after all such increases shall never
exceed $250,000,000); provided that for any such request the Borrowers and/or the Administrative
Agent shall use commercially reasonable efforts to locate additional lenders (which qualify as
assignees under SECTION 9.4) reasonably acceptable to the Borrowers and the Administrative Agent or
existing Lenders willing to hold commitments for the requested increase. In the event that lenders
commit to any such increase, (i) the Commitments of those lenders committing to such increase shall
be increased, (ii) the Applicable Percentage of each of the Lenders shall be adjusted according to
the increased or new Commitments (or, in the case of a new lender not previously party hereto,
added to Schedule 2.1) and the Borrowers shall make such borrowings and repayments as shall
be necessary to effect a reallocation of the Revolving Loans, (iii) new or replacement notes shall
be issued, and (iv) other changes shall be made by way of supplement, amendment or restatement of
any Loan Document as may be necessary or desirable to reflect the aggregate amount, if any, by
which Lenders have agreed to increase their respective Commitments or any other lenders (which
qualify as eligible assignees under SECTION 9.4) have agreed to make new commitments pursuant to
this SECTION 2.9(d), in each case notwithstanding anything in SECTION 9.2(b) to the contrary,
without the consent of any Lender other than those Lenders increasing their Commitments. The fees
payable by the Borrowers upon any such increase in the Commitments shall be agreed upon by the
Administrative Agent and the Borrowers at the time of such increase. Notwithstanding the
foregoing, nothing in this SECTION 2.9(d) shall constitute or be deemed to constitute an agreement
by any Lender to increase its Commitment hereunder.

Notwithstanding the foregoing, an increase in the aggregate amount of the Commitments shall be
effective only if (i) no Default or Event of Default shall have occurred and be continuing on the
date such increase is requested and the date such increase is to become effective; (ii) each of the
representations and warranties made by the Borrowers in this Agreement and the other Loan Documents
shall be true and correct in all material respects on and as of the date such increase is requested
and the date such increase is to become effective with the same force and effect as if made on and
as of such date (or, if any such representation or warranty is expressly stated to have been made
as of a specific date, as of such specific date); (iii) the Administrative Agent shall have
received (x) such documents and certificates as the Administrative Agent or its counsel may
reasonably request relating to the authorization of such increase and (y) a favorable written
opinion (addressed to the Administrative Agent and the Lenders) of counsel for the Borrowers (which
may be an opinion of in-house counsel), after giving effect to such increase; and (iv) the
Borrowers shall be in compliance with ARTICLE VI.

     SECTION 2.10. Repayment of Loans; Evidence of Debt. (a) The Borrowers hereby jointly
and severally and unconditionally promise to pay (i) to the Administrative Agent for the account
of each Lender the then unpaid principal amount of each Revolving Loan on the Maturity Date and
(ii) to the Swingline Lender the then unpaid principal amount of each Swingline Loan on the earlier
of the Maturity Date and the first date after such Swingline Loan is made that is the 15th or last
day of a calendar month and is at least two Business Days after such Swingline Loan is made;
provided that on each date that a Revolving Borrowing is made, the Borrowers shall repay
all Swingline Loans then outstanding.

     (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrowers to such Lender resulting from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

 

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     (c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto,
(ii) the amount of any principal or interest due and payable or to become due and payable from the
Borrowers to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof.

     (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this
Section shall be prima facie evidence of the existence and amounts of the
obligations recorded therein; provided that the failure of any Lender or the Administrative
Agent to maintain such accounts or any error therein shall not in any manner affect the obligation
of the Borrowers to repay the Loans in accordance with the terms of this Agreement.

     (e) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the Borrowers shall prepare, execute and deliver to such Lender a promissory note payable to
the order of such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and the form of Exhibit C. Thereafter, the Loans evidenced by such promissory note and
interest thereon shall at all times (including after assignment pursuant to SECTION 9.4) be
represented by one or more promissory notes in such form payable to the order of the payee named
therein (or, if such promissory note is a registered note, to such payee and its registered
assigns).

     (f) So long as no Default or Event of Default has occurred and is continuing, the Borrowers
may elect at least thirty (30) days but no more than one hundred and twenty (120) days prior to the
Maturity Date, to extend the Maturity Date for one year as provided in this SECTION 2.10(f) by
providing written notice of such election to the Administrative Agent (which shall promptly notify
each of the Lenders). If on the initial Maturity Date (i) no Default or Event of Default exists
and is continuing, (ii) the representations and warranties of the Borrowers set forth in this
Agreement are true and correct in all material respects on and as of such date (or, if such
representation or warranty is expressly stated to have been made as of a specific date, as of such
specific date), (iii) the Borrowers pay to the Administrative Agent, for the pro rata benefit of
the Lenders based on their Applicable Percentages, an extension fee equal to 0.25% of the then
total Commitments, and (iv) the Borrowers have given written notice to the Administrative Agent of
such election to extend the Maturity Date within the time frame set forth in this SECTION 2.10(f),
the Maturity Date shall be extended to January 2, 2010.

     SECTION 2.11. Prepayment of Loans. (a) The Borrowers shall have the right at any time
and from time to time at its option to prepay any Borrowing in whole or in part, subject to prior
notice in accordance with paragraph (b) of this Section. The Borrowers shall be required to prepay
the Loan to the extent required by SECTION 5.9.

     (b) The Borrowers shall notify the Administrative Agent (and, in the case of prepayment of a
Swingline Loan, the Swingline Lender) by telephone (confirmed by telecopy) of any prepayment
hereunder (i) in the case of prepayment of a Eurodollar Revolving Borrowing, not later than 11:00
a.m., New York City time, three Business Days before the date of prepayment, (ii) in the case of
prepayment of an ABR Revolving Borrowing, not later than 11:00 a.m., New York City time, one
Business Day before the date of prepayment or (iii) in the case of prepayment of a Swingline Loan,
not later than 12:00 noon, New York City time, on the date of prepayment. Each such notice shall
be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or
portion thereof to be prepaid; provided that, if a notice of prepayment is given in
connection with a conditional notice of termination of the Commitments as contemplated by SECTION
2.9, then such notice of prepayment may be revoked if such notice of termination is revoked in
accordance with SECTION 2.9. Promptly following receipt of any such notice relating to a Revolving
Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each partial
prepayment of any Revolving

 

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Borrowing shall be in an amount that would be permitted in the case of an advance of a
Revolving Borrowing of the same Type as provided in SECTION 2.2. Each prepayment of a Revolving
Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments
shall be accompanied by accrued interest to the extent required by SECTION 2.13.

     SECTION 2.12. Fees. (a) The Borrowers jointly and severally agree to pay to the
Administrative Agent for the account of each Lender an unused fee (the “Unused Fee”), which shall
accrue at the Unused Fee Rate on the average daily unused amount of the Commitment of such Lender
during the period from and including the Closing Date to but excluding the date on which such
Commitment terminates. Accrued Unused Fees shall be payable quarterly in arrears on the fifteenth
(15th) day of January, April, July and October of each year and on the date on which the
Commitments terminate, commencing on the first such date to occur after the date hereof. All
Unused Fees shall be computed on the basis of a year of 360 days and shall be payable for the
actual number of days elapsed (including the first day but excluding the last day).

     (b) The Borrowers jointly and severally agree to pay (i) to the Administrative Agent for the
account of each Lender a participation fee with respect to its participations in Letters of Credit,
which shall accrue at the same Applicable Rate used to determine the interest rate applicable to
Eurodollar Revolving Loans on the average daily amount of such Lender’s LC Exposure (excluding any
portion thereof attributable to unreimbursed LC Disbursements) during the period from and including
the Effective Date to but excluding the later of the date on which such Lender’s Commitment
terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) to the
Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per annum on the average
daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the Effective Date to but excluding the later
of the date of termination of the Commitments and the date on which there ceases to be any LC
Exposure, as well as the Issuing Bank’s standard fees with respect to the issuance, amendment,
renewal or extension of any Letter of Credit or processing of drawings thereunder. Participation
fees and fronting fees accrued through and including the last day of March, June, September and
December of each year shall be payable on the third Business Day following such last day,
commencing on the first such date to occur after the Effective Date; provided that all such
fees shall be payable on the date on which the Commitments terminate and any such fees accruing
after the date on which the Commitments terminate shall be payable on demand. Any other fees
payable to the Issuing Bank pursuant to this paragraph shall be payable within ten (10) days after
demand. All participation fees and fronting fees shall be computed on the basis of a year of 360
days and shall be payable for the actual number of days elapsed (including the first day but
excluding the last day).

     (c) The Borrowers jointly and severally agree to pay to each Lender for its own account an
upfront fee equal to 0.375% of its Commitment on the Effective Date, payable on the Effective Date.

     (d) The Borrowers jointly and severally agree to pay to the Administrative Agent, for its own
account, fees payable in the amounts and at the times separately agreed upon between the Borrowers
and the Administrative Agent.

     (e) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent (or to the Issuing Bank, in the case of fees payable to it) for
distribution, in the case of facility fees and participation fees, to the Lenders. Fees paid shall
not be refundable under any circumstances.

     SECTION 2.13. Interest. (a) The Loans comprising each ABR Borrowing (including each
Swingline Loan) shall bear interest at the Alternate Base Rate plus the Applicable Rate.

 

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     (b) The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO
Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

     (c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by the Borrowers hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus
the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in
paragraph (a) of this Section.

     (d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and upon the Maturity Date or other termination of the Commitments; provided
that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand,
(ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR
Revolving Loan prior to the end of the Availability Period), accrued interest on the principal
amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in
the event of any conversion of any Eurodollar Revolving Loan prior to the end of the current
Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of
such conversion.

     (e) All interest hereunder shall be computed on the basis of a year of 360 days, except that
interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is
based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days elapsed (including the first
day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO
Rate shall be determined by the Administrative Agent, and such determination shall be conclusive
absent manifest error.

     SECTION 2.14. Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurodollar Borrowing:

     (a) the Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO
Rate for such Interest Period; or

     (b) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate
for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making
or maintaining their Loans included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrowers and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrowers and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any Interest Election Request that requests the conversion of any Revolving Borrowing
to, or continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be ineffective and
(ii) if any Borrowing Request requests a Eurodollar Revolving Borrowing, such Borrowing shall be
made as an ABR Borrowing; provided that if the circumstances giving rise to such notice
affect only one Type of Borrowings, then the other Type of Borrowings shall be permitted.

     SECTION 2.15. Increased Costs. (a) If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit

 

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extended by, any Lender (except any such reserve requirement reflected in the
Adjusted LIBO Rate) or the Issuing Bank; or

     (ii) impose on any Lender or the Issuing Bank or the London interbank market
any other condition affecting this Agreement or Eurodollar Loans made by such Lender
or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to
increase the cost to such Lender or the Issuing Bank of participating in, issuing or maintaining
any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or
the Issuing Bank hereunder (whether of principal, interest or otherwise), then the Borrowers will
pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as
will compensate such Lender or the Issuing Bank, as the case may be, for such additional costs
incurred or reduction suffered.

     (b) If any Lender or the Issuing Bank determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s or the
Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if
any, as a consequence of this Agreement or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below
that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company
could have achieved but for such Change in Law (taking into consideration such Lender’s or the
Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding company
with respect to capital adequacy), then from time to time the Borrowers will pay to such Lender or
the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such
Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such
reduction suffered.

     (c) A certificate of a Lender or the Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be,
as specified in paragraph (a) or (b) of this Section shall be delivered to the Borrowers and shall
be conclusive absent manifest error. The Borrowers shall pay such Lender or the Issuing Bank, as
the case may be, the amount shown as due on any such certificate within 10 days after receipt
thereof.

     (d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right
to demand such compensation; provided that the Borrowers shall not be required to
compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs or
reductions incurred more than 270 days prior to the date that such Lender or the Issuing Bank, as
the case may be, notifies the Borrowers of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s or the Issuing Bank’s intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the 270-day period referred to above shall be extended to include
the period of retroactive effect thereof.

     SECTION 2.16. Break Funding Payments. In the event of (a) the payment of any
principal of any Eurodollar Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow,
convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered
pursuant hereto (regardless of whether such notice may be revoked under SECTION 2.11(b) and is
revoked in accordance therewith), or (d) the assignment of any Eurodollar Loan other than on the
last day of the Interest Period applicable thereto as a result of a request by the Borrowers
pursuant to SECTION 2.19, then, in any such event, the Borrowers

 

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shall compensate each Lender for the loss, cost and expense attributable to such event. In
the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include
an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which
would have accrued on the principal amount of such Loan had such event not occurred, at the
Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of
such event to the last day of the then current Interest Period therefor (or, in the case of a
failure to borrow, convert or continue, for the period that would have been the Interest Period for
such Loan), over (ii) the amount of interest which would accrue on such principal amount for such
period at the interest rate which such Lender would bid were it to bid, at the commencement of such
period, for dollar deposits of a comparable amount and period from other banks in the eurodollar
market. A certificate of any Lender setting forth any amount or amounts that such Lender is
entitled to receive pursuant to this Section shall be delivered to the Borrowers and shall be
conclusive absent manifest error. The Borrowers shall pay such Lender the amount shown as due on
any such certificate within 10 days after receipt thereof.

     SECTION 2.17. Taxes. (a) Any and all payments by or on account of any obligation of
the Borrowers hereunder shall be made free and clear of and without deduction for any Indemnified
Taxes or Other Taxes; provided that if the Borrowers shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent, Lender or Issuing Bank (as
the case may be) receives an amount equal to the sum it would have received had no such deductions
been made, (ii) the Borrowers shall make such deductions and (iii) the Borrowers shall pay the full
amount deducted to the relevant Governmental Authority in accordance with applicable law.

     (b) In addition, the Borrowers shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

     (c) The Borrowers shall indemnify the Administrative Agent, each Lender and the Issuing Bank,
within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the case may be, on or
with respect to any payment by or on account of any obligation of the Borrowers hereunder
(including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts
payable under this Section) and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount
of such payment or liability delivered to the Borrowers by a Lender or the Issuing Bank, or by the
Administrative Agent on its own behalf or on behalf of a Lender or the Issuing Bank, shall be
conclusive absent manifest error.

     (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by a Borrower
to a Governmental Authority, the Borrowers shall deliver to the Administrative Agent the original
or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a
copy of the return reporting such payment or other evidence of such payment reasonably satisfactory
to the Administrative Agent.

     (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which a Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrowers (with a copy to the Administrative Agent), at the time or times prescribed by applicable
law, such properly completed and executed documentation prescribed by applicable law or reasonably
requested by the Borrowers as will permit such payments to be made without withholding or at a
reduced rate.

 

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     (f) If the Administrative Agent or a Lender determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrowers
or with respect to which the Borrowers have paid additional amounts pursuant to this SECTION 2.17,
it shall pay over such refund to the Borrowers (but only to the extent of indemnity payments made,
or additional amounts paid, by the Borrowers under this SECTION 2.17 with respect to the Taxes or
Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative
Agent or such Lender and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund); provided, that the Borrowers, upon the request
of the Administrative Agent or such Lender, agree to repay the amount paid over to the Borrowers
(plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to
the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is
required to repay such refund to such Governmental Authority. This Section shall not be construed
to require the Administrative Agent or any Lender to make available its tax returns (or any other
information relating to its taxes which it deems confidential) to the Borrowers or any other
Person.

     SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) The
Borrowers shall make each payment required to be made by it hereunder (whether of principal,
interest, fees or reimbursement of LC Disbursements, or of amounts payable under SECTION 2.15,
SECTION 2.16, SECTION 2.17, or otherwise) prior to 12:00 noon, New York City time, on the date when
due, in immediately available funds, without set-off or counterclaim. Any amounts received after
such time on any date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating interest thereon. All
such payments shall be made to the Administrative Agent at its offices at 270 Park Avenue, New
York, New York or as otherwise directed in writing by the Administrative Agent, except payments to
be made directly to the Issuing Bank or Swingline Lender as expressly provided herein and except
that payments pursuant to SECTION 2.15, SECTION 2.16, SECTION 2.17 and SECTION 9.3 shall be made
directly to the Persons entitled thereto. The Administrative Agent shall distribute any such
payments received by it for the account of any other Person to the appropriate recipient promptly
following receipt thereof. If any payment hereunder shall be due on a day that is not a Business
Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case
of any payment accruing interest, interest thereon shall be payable for the period of such
extension. All payments hereunder shall be made in dollars.

     (b) If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then
due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed
LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with
the amounts of principal and unreimbursed LC Disbursements then due to such parties.

     (c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Revolving Loans or
participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of
a greater proportion of the aggregate amount of its Revolving Loans and participations in LC
Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any
other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face
value) participations in the Revolving Loans and participations in LC Disbursements and Swingline
Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be
shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued
interest on their respective Revolving Loans and participations in LC Disbursements and Swingline
Loans; provided that (i) if any such participations are purchased and all or any portion of
the payment giving rise thereto is

 

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recovered, such participations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be
construed to apply to any payment made by the Borrowers pursuant to and in accordance with the
express terms of this Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations in LC Disbursements
to any assignee or participant, other than to the Borrowers or any Subsidiary or Affiliate thereof
(as to which the provisions of this paragraph shall apply). Each Borrower consents to the
foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrowers
rights of set-off and counterclaim with respect to such participation as fully as if such Lender
were a direct creditor of the Borrowers in the amount of such participation.

     (d) Unless the Administrative Agent shall have received notice from the Borrowers prior to the
date on which any payment is due to the Administrative Agent for the account of the Lenders or the
Issuing Bank hereunder that the Borrowers will not make such payment, the Administrative Agent may
assume that the Borrowers have made such payment on such date in accordance herewith and may, in
reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be,
the amount due. In such event, if the Borrowers have not in fact made such payment, then each of
the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank
with interest thereon, for each day from and including the date such amount is distributed to it to
but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

     (e) If any Lender shall fail to make any payment required to be made by it pursuant to SECTION
2.5(c), SECTION 2.6(d), SECTION 2.6(e), SECTION 2.7(b) or SECTION 2.18(d), then the Administrative
Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the account of such Lender to satisfy such
Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid.

     SECTION 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under SECTION 2.15, or if the Borrowers are required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
SECTION 2.17, then such Lender shall use reasonable efforts to designate a different lending office
for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to SECTION 2.15 or
SECTION 2.17, as the case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The
Borrowers hereby jointly and severally agree to pay all reasonable costs and expenses incurred by
any Lender in connection with any such designation or assignment.

     (b) If any Lender requests compensation under SECTION 2.15, or if the Borrowers are required
to pay any additional amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to SECTION 2.17, or if any Lender defaults in its obligation to fund Loans
hereunder, then the Borrowers may, at their sole expense and effort, upon notice to such Lender and
the Administrative Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in SECTION 9.4), all its interests,
rights and obligations under this Agreement to an assignee that shall assume such obligations
(which assignee may be another Lender, if a Lender accepts such assignment); provided that
(i) the Borrowers shall have received the prior written consent of the Administrative Agent, which
consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an
amount equal to the outstanding principal of its Loans and

 

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participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrowers (in the case of all other amounts) and
(iii) in the case of any such assignment resulting from a claim for compensation under SECTION 2.15
or payments required to be made pursuant to SECTION 2.17, such assignment will result in a
reduction in such compensation or payments. A Lender shall not be required to make any such
assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise,
the circumstances entitling the Borrowers to require such assignment and delegation cease to apply.

     SECTION 2.20. Joint and Several Liability of the Borrowers.

     (a) Each of the Borrowers is accepting joint and several liability hereunder in consideration
of the financial accommodation to be provided by the Lenders under this Agreement, for the mutual
benefit, directly and indirectly, of each of the Borrowers and in consideration of the undertakings
of each of the Borrowers to accept joint and several liability for the obligations of each of them.

     (b) Each of the Borrowers jointly and severally hereby irrevocably and unconditionally
accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other
Borrower with respect to the payment and performance of all of the Obligations arising under this
Agreement and the other Loan Documents, it being the intention of the parties hereto that all the
Obligations shall be the joint and several obligations of each of the Borrowers without preferences
or distinction among them.

     (c) If and to the extent that either of the Borrowers shall fail to make any payment with
respect to any of the Obligations as and when due or to perform any of the Obligations in
accordance with the terms thereof, then in each such event, the other Borrower will make such
payment with respect to, or perform, such Obligation.

     (d) The obligations of each Borrower under the provisions of this SECTION 2.20 constitute full
recourse obligations of such Borrower, enforceable against it to the full extent of its properties
and assets.

     (e) Except as otherwise expressly provided herein, to the extent permitted by law, each
Borrower hereby waives notice of acceptance of its joint and several liability, notice of
occurrence of any Default or Event of Default (except to the extent notice is expressly required to
be given pursuant to the terms of this Agreement), or of any demand for any payment under this
Agreement, notice of any action at any time taken or omitted by the Administrative Agent or the
Lenders under or in respect of any of the obligations hereunder, any requirement of diligence and,
generally, all demands, notices and other formalities of every kind in connection with this
Agreement. Each Borrower hereby assents to, and waives notice of, any extension or postponement of
the time for the payment of any of the Obligations, the acceptance of any partial payment thereon,
any waiver, consent or other action or acquiescence by the Administrative Agent or the Lenders at
any time or times in respect of any default by either Borrower in the performance or satisfaction
of any term, covenant, condition or provision of this Agreement, any and all other indulgences
whatsoever by the Administrative Agent or the Lenders in respect of any of the obligations
hereunder, and the taking, addition, substitution or release, in whole or in part, at any time or
times, of any security for any of such obligations or the addition, substitution or release, in
whole or in part, of either Borrower. Without limiting the generality of the foregoing, each
Borrower assents to any other action or delay in acting or any failure to act on the part of the
Administrative Agent or the Lenders, including, without limitation, any failure strictly or
diligently to assert any right or to pursue any remedy or to comply fully with applicable laws or
regulations thereunder which might, but for the provisions of

 

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this SECTION 2.20, afford grounds for terminating, discharging or relieving such Borrower, in
whole or in part, from any of its obligations under this SECTION 2.20, it being the intention of
each Borrower that, so long as any of the Obligations hereunder remain unsatisfied, the obligations
of such Borrower under this SECTION 2.20 shall not be discharged except by performance and then
only to the extent of such performance. The obligations of each Borrower under this SECTION 2.20
shall not be diminished or rendered unenforceable by any winding up, reorganization, arrangement,
liquidation, reconstruction or similar proceeding with respect to either Borrower or a Lender. The
joint and several liability of the Borrowers hereunder shall continue in full force and effect
notwithstanding any absorption, merger, amalgamation or any other change whatsoever in the name,
membership, constitution or place of formation of either Borrower or any of the Lenders.

     (f) The provisions of this SECTION 2.20 are made for the benefit of the Lenders and their
successors and assigns, and may be enforced by them from time to time against either of the
Borrowers as often as occasion therefor may arise and without requirement on the part of the
Lenders first to marshal any of its claims or to exercise any of its rights against the other
Borrower or to exhaust any remedies available to it against the other Borrower or to resort to any
other source or means of obtaining payment of any of the Obligations hereunder or to elect any
other remedy. The provisions of this SECTION 2.20 shall remain in effect until all the Obligations
shall have been paid in full or otherwise fully satisfied. If at any time, any payment, or any part
thereof, made in respect of any of the Obligations is rescinded or must otherwise be restored or
returned by the Lenders upon the insolvency, bankruptcy or reorganization of either of the
Borrowers, or otherwise, the provisions of this SECTION 2.20 will forthwith be reinstated and in
effect as though such payment had not been made.

     (g) Notwithstanding any provision to the contrary contained herein or in any of the other Loan
Documents, to the extent the obligations of either Borrower shall be adjudicated to be invalid or
unenforceable for any reason (including, without limitation, because of any applicable state or
federal law relating to fraudulent conveyances or transfers) then the obligations of such Borrower
hereunder shall be limited to the maximum amount that is permissible under applicable law (whether
federal or state and including, without limitation, the Bankruptcy Code).

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     Each Borrower represents and warrants to the Lenders, as of Effective Date and the date of
each Credit Event hereunder that:

     SECTION 3.1. Organization; Powers. (a) Each of the Borrowers and its Subsidiaries is
duly organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority to carry on its business as now conducted and,
except where the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in, and is in good
standing in, every jurisdiction where such qualification is required.

     (b) FelCor Trust qualified as a real estate investment trust under the provisions of
subchapter M of the Code for its fiscal years ended December 31, 1994 through December 31, 2004.
No tax return has been examined and reported on by the Internal Revenue Service. FelCor Trust has
not incurred any liability for excise taxes pursuant to Section 4981 of the Code. Each Subsidiary
of FelCor Trust is either a “qualified REIT subsidiary” within the meaning of Section 856(i) of the
Code, a partnership or a disregarded entity under Treasury Regulation Section 301.7701-3, or a
taxable REIT subsidiary within the meaning of Section 856(i) of the Code.

 

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     SECTION 3.2. Authorization; Enforceability. The Transactions are within each
Borrower’s and each Subsidiary Guarantor’s corporate, partnership, limited liability company or
trust powers and have been duly authorized by all necessary corporate, partnership, limited
liability company or trust and, if required, stockholder or other equity holder action. Each of
this Agreement and the other Loan Documents has been duly executed and delivered by each Borrower
and each Subsidiary Guarantor party thereto and constitutes a legal, valid and binding obligation
of each Borrower and each Subsidiary Guarantor, enforceable in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

     SECTION 3.3. Governmental Approvals; No Conflicts. The Transactions (a) do not
require any consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except such as have been obtained or made and are in full force and effect,
(b) will not violate any applicable law or regulation (including Regulations T, U or X) or the
charter, by-laws or other organizational documents of the Borrowers or any of its Subsidiaries or
any order, writ, judgment, injunction, decree or permit of any Governmental Authority, (c) will not
violate or result in a default under any indenture, agreement or other instrument binding upon the
Borrowers or any of its Subsidiaries or its assets, or give rise to a right thereunder to require
any payment to be made by the Borrowers or any of their Subsidiaries, and (d) will not result in
the creation or imposition of any Lien on any asset of the Borrowers or any of their Subsidiaries.

     SECTION 3.4. Financial Condition; No Material Adverse Change. (a) The Borrowers have
heretofore furnished to the Lenders its consolidated balance sheet and statements of income,
stockholders equity and cash flows (i) as of and for the fiscal year ended December 31, 2004,
reported on by PricewaterhouseCoopers LLP independent public accountants, and (ii) as of and for
the fiscal quarter and the portion of the fiscal year ended September 30, 2005, certified by its
chief financial officer. Such financial statements present fairly, in all material respects, the
financial position and results of operations and cash flows of the Borrowers and their consolidated
Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end
audit adjustments and the absence of footnotes in the case of the statements referred to in clause
(ii) above.

     (b) Since December 31, 2004, there has been no material adverse change in the business,
assets, operations, prospects or condition, financial or otherwise, of the Borrowers and their
Subsidiaries, taken as a whole.

     SECTION 3.5. Properties. (a) Each of the Borrowers and their Subsidiaries has good
and marketable title to, or valid leasehold interests in, all its real and personal property
material to its business, except for minor defects in title that do not interfere with its ability
to conduct its business as currently conducted or to utilize such properties for their intended
purposes, and none of such properties is subject to any Lien prohibited by this Agreement.

     (b) Each of the Borrowers and their Subsidiaries owns, or is licensed to use, all trademarks,
tradenames, copyrights, patents and other intellectual property material to its business, and the
use thereof by the Borrowers and their Subsidiaries does not infringe upon the rights of any other
Person, except for any such infringements that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

     (c) Each of the Borrowers and their Subsidiaries has obtained, and holds in full force and
effect, all franchises, licenses, permits, certificates, authorizations, qualifications,
accreditations, easements, rights of way and other rights, consents and approvals which are
necessary for the operation of

 

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its respective businesses as presently conducted, except where the failure to obtain or
maintain the same would not have or would not reasonably be expected to have a Material Adverse
Effect.

     SECTION 3.6. Litigation and Environmental Matters. (a) There are no actions, suits or
proceedings by or before any arbitrator or Governmental Authority pending against or, to the
knowledge of a Borrower, threatened against or affecting a Borrower or any of their Subsidiaries
(i) as to which there is a reasonable possibility of an adverse determination and that, if
adversely determined, could reasonably be expected, individually or in the aggregate, to result in
a Material Adverse Effect (other than the Disclosed Matters) or (ii) that involve this Agreement,
the other Loan Documents or the Transactions.

     (b) Except for the Disclosed Matters and except with respect to any other matters that,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect, neither a Borrower nor any of their Subsidiaries (i) has failed to comply with any
Environmental Law or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii)
has received notice of any claim with respect to any Environmental Liability or (iv) knows of any
basis for any Environmental Liability.

     (c) Since the date of this Agreement, there has been no change in the status of the Disclosed
Matters that, individually or in the aggregate, has resulted in, or materially increased the
likelihood of, a Material Adverse Effect.

     SECTION 3.7. Compliance with Laws and Agreements. Each of the Borrowers and their
Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other instruments binding upon
it or its property, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect. No Default or Event of Default has
occurred and is continuing. Neither the Borrowers nor any of their Subsidiaries is in default in
any respect under any contract, lease, loan agreement, indenture, mortgage, security agreement or
other agreement or obligation to which it is a party or by which any of its properties is bound
which default would have or would be reasonably expected to have a Material Adverse Effect.

     SECTION 3.8. Investment and Holding Company Status. Neither a Borrower nor any of
their Subsidiaries is (a) an “investment company” as defined in, or subject to regulation under,
the Investment Company Act of 1940 or (b) a “holding company” as defined in, or subject to
regulation under, the Public Utility Holding Company Act of 1935.

     SECTION 3.9. Taxes. Each of the Borrowers and their Subsidiaries has timely filed or
caused to be filed all Tax returns and reports required to have been filed and has paid or caused
to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in
good faith by appropriate proceedings and for which such Borrower or such Subsidiary, as
applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to
do so could not reasonably be expected to result in a Material Adverse Effect.

     SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect. The
present value of all accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the
most recent financial statements reflecting such amounts, exceed by more than $1,000,000 the fair
market value of the assets of such Plan, and the present value of all accumulated benefit
obligations of all underfunded Plans (based on

 

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the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did
not, as of the date of the most recent financial statements reflecting such amounts, exceed by more
than $1,000,000 the fair market value of the assets of all such underfunded Plans.

     SECTION 3.11. Disclosure. The Borrowers have disclosed to the Lenders all agreements,
instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject,
and all other matters known to it, that, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect. None of the reports, financial statements,
certificates or other information (including the financial projections) furnished by or on behalf
of the Borrowers to the Administrative Agent or any Lender in connection with the negotiation of
this Agreement or delivered hereunder (as modified or supplemented by other information so
furnished) contains any material misstatement of fact or omits to state any material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not
misleading; provided that, with respect to projected financial information, the Borrowers
represent only that such information was prepared in good faith based upon assumptions believed to
be reasonable at the time.

     SECTION 3.12. Indebtedness. (a) As of the date hereof and except as set forth on
Schedule 3.12, the Borrowers and their Subsidiaries have no outstanding Indebtedness (other
than inter-company indebtedness). As of the date hereof, all Indebtedness on Schedule 3.12
is permitted by this Agreement. Neither a Borrower nor any Subsidiary is in default and no waiver
of default is currently in effect, in the payment of any principal or interest on any Indebtedness
of such Borrower or such Subsidiary, and no event or condition exists with respect to any
Indebtedness of a Borrower or any Subsidiary, that would permit (or that with notice or the lapse
of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and
payable before its stated maturity or before its regularly scheduled dates of payment.

     (b) Except as disclosed in Schedule 3.12, neither a Borrower nor any Subsidiary has
agreed or consented to cause or permit in the future (upon the happening of a contingency or
otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien
not permitted by SECTION 6.2.

     SECTION 3.13. Ownership; Organization Structure; Subsidiaries. As of the date hereof,
(a) Schedule 3.13 is a complete and accurate (i) list of the Borrowers and their
Subsidiaries, showing the correct name of each Subsidiary, its jurisdiction of organization and the
percentage of shares of each class of its Equity Interests outstanding owned by the Borrowers and
each other Subsidiary, and (ii) list of the Borrowers’ Affiliates, other than the Subsidiaries, (b)
except as set forth on Schedule 3.13, the Borrowers do not have any Subsidiaries or own any
interest, directly or indirectly, in any joint venture and (c) no Person (including any Affiliates
of such Person) owns, beneficially or of record, directly or indirectly, Equity Interests of a
Borrower representing 30% or more in the aggregate of the outstanding Equity Interests of such
Borrower. The outstanding Equity Interests of the Borrowers and all of the Subsidiaries are
validly issued, fully paid and non-assessable and are owned by such entity free and clear of all
Liens, except for Liens permitted by clauses (a) through (e) of SECTION 6.2 with respect to Equity
Interests in Subsidiaries.

     SECTION 3.14. Solvency. Each Borrower is and, after consummation of the transactions
contemplated by this Agreement, will be Solvent.

     SECTION 3.15. Location of Assets; Unencumbered Assets. As of the Effective Date, set
forth on Schedule 3.15 is (a) a list of all properties of the Borrowers and their
Subsidiaries (with the city and state where located) and the ownership interests of the Borrowers
in such property and (b) a list of all Unencumbered Assets and the owner or ground-lessee of each
such Unencumbered Asset. All such

 

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Unencumbered Assets satisfy the requirements for an Unencumbered Asset, set forth in the
definition thereof. Schedule 3.15 shall be updated as of the end of each fiscal quarter as
set forth in SECTION 5.1(c); provided that the owner or ground-lessee of an Unencumbered Asset need
only be listed on such updated Schedule 3.15 if it is a new Unencumbered Asset.

     SECTION 3.16. No Burdensome Restrictions. Neither a Borrower nor any Subsidiary is a
party to any agreement or instrument or subject to any other obligation or any charter or corporate
restriction or any provision of any applicable law, rule or regulation (i) which, individually or
in the aggregate, would have or would be reasonably expected to have a Material Adverse Effect or
(ii) restricting the ability of such Subsidiary to pay dividends out of profits or make any other
similar distributions of profits to the Borrowers or any Subsidiaries that own outstanding shares
of capital stock or similar equity interests in such Subsidiary.

     SECTION 3.17. Insurance. The insurance policies and programs in effect as of the
Effective Date and thereafter with respect to the properties, assets and business of the Borrowers
and the Subsidiaries are in compliance with SECTION 5.5.

     SECTION 3.18. Use of Proceeds; Margin Stock. The Borrowers will use the proceeds of
the Loans (including any Letters of Credit) for acquisitions and other general working capital
purposes of the Borrowers and their Subsidiaries. No part of the proceeds of any Loan or the
issuance of any Letter of Credit will be used, whether directly or indirectly, for any purpose that
entails a violation of any of the Regulations of the Board, including Regulations T, U and X.

     SECTION 3.19. Foreign Asset Control Regulations. Neither making of the Loans to the
Borrowers, the issuance of any Letters of Credit, nor the Borrowers’ use of the proceeds of the
Loans will violate the Trading with the Enemy Act, as amended, or any of the foreign assets control
regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or
any enabling legislation or executive order relating thereto, including without limitation
Executive Order 13224 66 Fed. Reg. 49079 (September 25, 2001) (Blocking Property and Prohibiting
Transactions with Persons who Commit, Threaten to Commit or Support Terrorism), or the Act.

ARTICLE IV

CONDITIONS

     SECTION 4.1. Effective Date. The obligations of the Lenders to make Loans and of the
Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on
which each of the following conditions is satisfied (or waived in accordance with SECTION 9.2):

     (a) The Administrative Agent (or its counsel) shall have received from each party to this
Agreement and each other Loan Document either (i) a counterpart of this Agreement or such Loan
Document signed on behalf of such party or (ii) written evidence satisfactory to the Administrative
Agent (which may include telecopy or electronic transmission of a signed signature page of this
Agreement or such Loan Document) that such party has signed a counterpart of this Agreement or such
Loan Document.

     (b) The Administrative Agent shall have received a favorable written opinion (addressed to the
Administrative Agent and the Lenders and dated the Effective Date) of Jenkens & Gilchrist, a
Professional Corporation, and of Miles & Stockbridge, P.C., United States counsel for the Borrowers
and the Subsidiary Guarantors, and of Canadian counsel for the Canadian Subsidiary Guarantor,
covering such matters relating to the Borrowers, the Subsidiary Guarantors, this Agreement,

 

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the other Loan Documents or the Transactions as the Required Lenders shall reasonably request.
The Borrowers hereby request such counsel to deliver such opinion.

     (c) The Administrative Agent shall have received such documents and certificates as the
Administrative Agent or its counsel may reasonably request relating to the organization, existence
and good standing of the Borrowers and the Subsidiary Guarantors, the authorization of the
Transactions and any other legal matters relating to the Borrowers, the Subsidiary Guarantors, this
Agreement, the other Loan Documents or the Transactions, all in form and substance satisfactory to
the Administrative Agent and its counsel.

     (d) The Administrative Agent shall have received a certificate, dated the Effective Date and
signed by the President, a Vice President or a Financial Officer of a Borrower, confirming
compliance with the conditions set forth in paragraphs (a) and (b) of SECTION 4.2.

     (e) The Administrative Agent shall have received all fees and other amounts due and payable on
or prior to the Effective Date, including, to the extent invoiced, reimbursement or payment of all
out-of-pocket expenses required to be reimbursed or paid by the Borrowers hereunder.

     (f) The Administrative Agent shall have received an officer’s certificate duly executed by the
President, Vice President or a Financial Officer of a Borrower certifying as to pro forma
compliance with the financial covenants in SECTION 6.1 as of the Effective Date (taking into
account any Borrowings to be made on such date).

     (g) The Administrative Agent shall have received satisfactory financial statements of the type
described in SECTION 5.1(a) for the 2003 and 2004 fiscal years of the Borrowers and satisfactory
financial statements of the type described in SECTION 5.1(b) for the quarter ended September 30,
2005.

     (h) The Administrative Agent shall have received satisfactory evidence of the repayment in
full and termination of the Borrower’s Term Credit Agreement dated as of October 18, 2005 among the
FelCor Partnership and certain of its Subsidiaries, Citicorp North America, Inc., as administrative
agent and certain other parties.

The Administrative Agent shall notify the Borrowers and the Lenders of the Effective Date, and such
notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the
Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become
effective unless each of the foregoing conditions is satisfied (or waived pursuant to SECTION 9.2)
at or prior to 3:00 p.m., New York City time, on January 15, 2006 (and, in the event such
conditions are not so satisfied or waived, the Commitments shall terminate at such time).

     SECTION 4.2. Each Credit Event. The obligation of each Lender to make a Loan on the
occasion of any Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter of
Credit (each, a “Credit Event”), is subject to the satisfaction of the following conditions:

     (a) After giving effect to such Credit Event, the representations and warranties of the
Borrowers set forth in this Agreement shall be true and correct on and as of the date of such
Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as
applicable (or if any such representation or warranty is expressly stated to have been made as of a
specific date, as of such specific date).

 

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     (b) At the time of and immediately after giving effect to such Credit Event, no Default shall
have occurred and be continuing or would occur as a result of such Credit Event.

     (c) No change in the business, assets, management, operations, financial condition or
prospects of the Borrowers and their Subsidiaries or any of their respective properties shall have
occurred since December 31, 2004 which change will have or could have a Material Adverse Effect.

     (d) The Administrative Agent shall have received a Borrowing Request or a request for
issuance, amendment, renewal or extension of a Letter of Credit, as applicable.

     (e) No law, regulation or order of any Governmental Authority shall prohibit enjoin or
restrain any Lender from such Credit Event, as reasonably determined by such Lender.

     (f) The Administrative Agent shall have received an officer’s certificate duly executed by the
President, Vice President or a Financial Officer of a Borrower certifying as to pro forma
compliance with the financial covenants required by SECTION 6.1(e) as of the Effective Date (taking
into account the requested Credit Event).

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrowers on the date thereof as to the
matters specified in paragraphs (a), (b) and (c) of this Section.

ARTICLE V

AFFIRMATIVE COVENANTS

     Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit
shall have expired or terminated and all LC Disbursements shall have been reimbursed, each Borrower
covenants and agrees with the Lenders that:

     SECTION 5.1. Financial Statements; Ratings Change and Other Information. The
Borrowers will furnish to the Administrative Agent and each Lender:

     (a) within 90 days after the end of each fiscal year of the Borrowers, their audited
consolidated balance sheet and related statements of operations, stockholders’ equity and cash
flows as of the end of and for such year, setting forth in each case in comparative form the
figures for the previous fiscal year, all reported on by PricewaterhouseCoopers LLP or other
independent public accountants of recognized national standing (without a “going concern” or like
qualification or exception and without any qualification or exception as to the scope of such
audit) to the effect that such consolidated financial statements present fairly in all material
respects the financial condition and results of operations of the Borrowers and their consolidated
Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;

     (b) within 45 days after the end of each of the first three fiscal quarters of each fiscal
year of the Borrowers, their consolidated balance sheet and related statements of operations,
stockholders’ equity and cash flows as of the end of and for such fiscal quarter and the then
elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for
the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the
previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all
material respects the financial condition and results of operations of the Borrowers and their
consolidated Subsidiaries on a consolidated basis in accordance

 

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with GAAP consistently applied, subject to normal year-end audit adjustments and the absence
of footnotes;

     (c) concurrently with any delivery of financial statements under clause (a) or (b) above, a
certificate of a Financial Officer of a Borrower in the form of Exhibit F hereto (i)
certifying that such Financial Officer has reviewed the terms of the Loan Documents, and has made,
or caused to be made, under his or her supervision, a review in reasonable detail of the
consolidated financial condition of the Borrowers and the Subsidiaries during the period covered by
such reports, (ii) certifying as to whether a Default has occurred and, if a Default has occurred,
specifying the details thereof and any action taken or proposed to be taken with respect thereto,
(iii) setting forth reasonably detailed calculations demonstrating compliance with SECTION 6.1 and
SECTION 6.8, (iv) stating whether any change in GAAP or in the application thereof has occurred
since the date of the audited financial statements referred to in SECTION 3.4 and, if any such
change has occurred, specifying the effect of such change on the financial statements accompanying
such certificate and (v) containing updates of Schedule 3.15;

     (d) to the extent not publicly available, copies of all periodic and other reports, proxy
statements and other materials filed by the Borrowers or any Subsidiary with the Securities and
Exchange Commission, or any Governmental Authority succeeding to any or all of the functions of
said Commission, or with any national securities exchange, or distributed by a Borrower to its
shareholders generally, as the case may be;

     (e) promptly following any request therefor, all such financial information regarding the
Borrowers and the Subsidiaries and specifically regarding the properties and assets of the
Borrowers and the Subsidiaries, as the Administrative Agent or Lenders shall reasonably request,
including, but not limited to, partnership, limited liability company and joint venture agreements,
property cash flow projections, property budgets, actual and budgeted capital expenditures,
operating statements (current year and immediately preceding year, if applicable), operating
performance statistics and mortgage information; and

     (f) promptly following any request therefor, such other information regarding the operations,
business affairs and financial condition of a Borrower or any Subsidiary, or compliance with the
terms of this Agreement, as the Administrative Agent or any Lender may reasonably request.

     SECTION 5.2. Notices of Material Events. The Borrowers will furnish to the
Administrative Agent and each Lender prompt written notice of the following:

     (a) the occurrence of any Default;

     (b) the filing or commencement of any action, suit or proceeding by or before any arbitrator
or Governmental Authority against or affecting a Borrower or any Affiliate thereof that, if
adversely determined, could reasonably be expected to result in a Material Adverse Effect;

     (c) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that
have occurred, could reasonably be expected to result in liability of the Borrowers and their
Subsidiaries in an aggregate amount exceeding $5,000,000; and

     (d) any other development (including the occurrence of an Environmental Liability) that
results in, or could reasonably be expected to result in, a Material Adverse Effect.

 

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Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer
or other executive officer of a Borrower setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto.

     SECTION 5.3. Existence; Conduct of Business. Each Borrower will, and will cause each
of its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in
full force and effect its legal existence and the rights, licenses, permits, privileges and
franchises material to the conduct of its business; provided that the foregoing shall not
prohibit any merger, consolidation, liquidation or dissolution permitted under SECTION 6.2(a) or
any such action with respect to any Subsidiary (other than a Subsidiary Guarantor) that could not
reasonably be expected to result in a Material Adverse Effect. Without limiting the generality of
the foregoing, FelCor Trust will do all things necessary to maintain its status as a REIT and its
listing on the New York Stock Exchange.

     SECTION 5.4. Payment of Obligations. Each Borrower will, and will cause each of its
Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could result in
a Material Adverse Effect before the same shall become delinquent or in default, except where (a)
the validity or amount thereof is being contested in good faith by appropriate proceedings, (b)
such Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto
in accordance with GAAP and (c) the failure to make payment pending such contest could not
reasonably be expected to result in a Material Adverse Effect.

     SECTION 5.5. Maintenance of Properties; Insurance. Each Borrower will, and will cause
each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of its
business in good working order and condition in the ordinary course of its business, ordinary wear
and tear excepted, and (b) maintain, with financially sound and reputable insurance companies,
insurance in such amounts and against such risks as are customarily maintained by companies engaged
in the same or similar businesses operating in the same or similar locations.

     SECTION 5.6. Books and Records; Inspection Rights. Each Borrower will, and will cause
each of its Subsidiaries to, keep proper books of record and account in which full, true and
correct entries are made of all dealings and transactions in relation to its business and
activities. Each Borrower will, and will cause each of its Subsidiaries to, permit any
representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice,
to visit and inspect its properties, to examine and make extracts from its books and records, and
to discuss its affairs, finances and condition with its officers and independent accountants, all
at such reasonable times and as often as reasonably requested.

     SECTION 5.7. Compliance with Laws. Each Borrower will, and will cause each of its
Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental Authority
applicable to it or its property, including Environmental Laws, and with all contractual
obligations, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

     SECTION 5.8. Use of Proceeds and Letters of Credit. The proceeds of the Loans and the
Letters of Credit will be used only for the financing of the working capital needs (including
acquisitions) of the Borrowers and their Subsidiaries and for general corporate purposes (including
payment, prepayment and refinancing of Indebtedness to the extent otherwise permitted by this
Agreement). No part of the proceeds of any Loan will be used, whether directly or indirectly, for
any purpose that entails a violation of any of the Regulations of the Board, including Regulations
T, U and X.

 

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     SECTION 5.9. Notices of Asset Sales or Dispositions . The Borrowers shall
deliver to the Administrative Agent and the Lenders written notice not less than five (5) Business
Days prior to a sale, transfer, granting of a Lien to secure Indebtedness on, or other disposition
of an Unencumbered Asset, in a single transaction or series of related transactions, for
consideration in excess of $15,000,000. In addition, simultaneously with delivery of any such
notice, the Borrowers shall deliver to the Administrative Agent a certificate of a Financial
Officer certifying that the Borrowers are in compliance with this Agreement and the other Loan
Documents both on a historical basis and on a pro forma basis, exclusive of the property sold,
transferred or encumbered with a Lien (or will be after making the required prepayments described
in the next paragraph).

     To the extent such proposed transaction would result in a failure to comply with the covenants
set forth herein, the Borrowers shall apply the proceeds of such transaction (together with such
additional amounts as may be required), to prepay the Obligations in an amount, as determined by
the Administrative Agent, equal to that which would be required to reduce the Obligations so that
Borrowers will be in compliance with the covenants set forth herein upon the consummation of the
contemplated transaction.

     SECTION 5.10. Further Assurances. Each Borrower will cooperate with, and will cause
each Subsidiary to cooperate with, the Administrative Agent and the Lenders and execute such
further instruments and documents as the Lenders or the Administrative Agent shall reasonably
request to carry out to their reasonable satisfaction the Transactions contemplated by this
Agreement and the other Loan Documents.

     SECTION 5.11. Distributions in the Ordinary Course. In the ordinary course of
business each Borrower causes all of the Subsidiaries to make transfers of net cash and cash
equivalents upstream to the Borrowers (other than amounts held by Subsidiaries as tenant deposits
and for reserves, capital expenditures, leasing commissions, tenant improvements and other working
capital purposes), and each Borrower shall continue to follow such ordinary course of business.
The Borrowers shall not make net transfers of cash and cash equivalents downstream to the
Subsidiaries except in the ordinary course of business consistent with past practice.

     SECTION 5.12. ERISA Compliance. Each Borrower shall, and shall cause each of its
Subsidiaries and ERISA Affiliates to, establish, maintain and operate all Plans to comply in all
material respects with the provisions of ERISA, the Code, all other applicable laws, and the
regulations and interpretations thereunder and the respective requirements of the governing
documents for such Plans.

     SECTION 5.13. Additional Subsidiary Guarantors; Release of Subsidiary Guarantors.

     (a) If, after the Closing Date, a Subsidiary of the Borrowers that is not a Subsidiary
Guarantor (i) acquires any real property asset that then or thereafter qualifies under the
definition of Unencumbered Asset and such real property asset is directly or indirectly
wholly-owned or ground leased by a Borrower or (ii) provides a Guarantee of the Senior Unsecured
Notes or any other Indebtedness of the Borrowers, the Borrowers shall cause such Person to execute
and deliver a Subsidiary Guaranty to the Administrative Agent and the Lenders in substantially the
form of Exhibit E hereto; provided that a Subsidiary that owns or ground-leases an Unencumbered
Asset shall not be required to execute and deliver a Subsidiary Guaranty so long as the aggregate
book value of all Unencumbered Properties owned or ground leased by Subsidiaries that are not
Subsidiary Guarantors does not exceed 2% of Total Unencumbered Assets. Such Subsidiary Guaranty
shall evidence consideration and equivalent value.

     (b) The Borrowers each acknowledge that, subject to the indefeasible payment and performance
in full of the Obligations, the rights of contribution among each of them and the Subsidiary

 

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Guarantors are in accordance with applicable laws and in accordance with each such Person’s
benefits under the Loans and this Agreement. The Borrowers further acknowledge that, subject to
the indefeasible payment and performance in full of the Obligations, the rights of subrogation of
the Subsidiary Guarantors as against the Borrowers are in accordance with applicable laws.

     (c) Other than during the continuance of a Default or Event of Default, at the request of the
Borrowers following the delivery of the certificate of an Authorized Officer in accordance with
SECTION 5.9 hereof, the Subsidiary Guaranty of any Subsidiary Guarantor shall be released by the
Administrative Agent if and when (i) all of the real property assets owned or ground-leased by such
Subsidiary Guarantor shall cease (not thereby creating a Default or Event of Default) to be an
Unencumbered Asset which is wholly-owned by the Borrowers or any of their Subsidiaries and (ii) any
and all Guarantees of the Senior Unsecured Notes and other Indebtedness of the Borrowers provided
by such Subsidiary Guarantor have been terminated or are being terminated concurrently with such
release.

ARTICLE VI

NEGATIVE COVENANTS

     Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder have been paid in full and all Letters of Credit have expired
or terminated and all LC Disbursements shall have been reimbursed, each Borrower covenants and
agrees with the Lenders that:

     SECTION 6.1. Financial Covenants and Other Covenants.

     (a) Leverage Ratio. As of the last day of any fiscal quarter of the Borrowers, the
Borrowers will not permit the ratio of Total Net Debt to Total EBITDA for the period of four (4)
consecutive fiscal quarters ending on such date (the “Leverage Ratio”) to exceed: (a) 7.0
to 1.0 from the Closing Date through June 30, 2007 and (b) 5.75 to 1.0 thereafter.

     (b) Fixed Charge Coverage. The Borrowers will not permit the ratio of (i) Total
EBITDA for any period of four (4) consecutive fiscal quarters of the Borrowers to (ii) Fixed
Charges for such period to be less than: (a) 1.35 to 1.0 from the Closing Date through June 30,
2007 and (b) 1.5 to 1.0 thereafter.

     (c) Total Unsecured Indebtedness. As of the last day of any fiscal quarter of the
Borrowers, the Borrowers will not permit the ratio of Unsecured Indebtedness to Total EBITDA for
Unencumbered Assets for the period of four (4) consecutive fiscal quarters ending on such date (the
“Unencumbered Leverage Ratio”) to exceed: (a) 7.25 to 1.0 from the Closing Date through
June 30, 2007 and (b) 6.25 to 1.0 thereafter; provided that for purposes of calculating the
Unencumbered Leverage Ratio, the aggregate amount of Total EBITDA for Unencumbered Assets
attributable to Unencumbered Assets that are not 100% owned by the Borrowers or a Subsidiary
Guarantor that is 100% owned by a Borrower shall be limited to 10% of Total EBITDA for Unencumbered
Assets unless the Person which owns such Unencumbered Asset provides a Subsidiary Guaranty.

     (d) Maximum Dividend Payout Ratio. The Borrowers shall not make any Restricted
Payments after the occurrence and during the continuance of an Event of Default, unless such
Restricted Payments are necessary for FelCor Trust to maintain its status as a REIT, and then only
in the minimum amount necessary to maintain such status as a REIT.

 

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     (e) Pro Forma Calculations. The Borrowers shall comply with the financial ratios set
forth in SECTION 6.1(a), SECTION 6.1(b) and SECTION 6.1(c) as of the date of each Borrowing. The
Borrowers shall recalculate such financial ratios by adding the amount equal to the Indebtedness
associated with such Borrowing to the Indebtedness reflected on the most recently available
financial statements, and adding thereto any Indebtedness incurred since the date of such financial
statement (less any Indebtedness repaid, retired, or forgiven during such period) and adding
thereto the proforma EBITDA of such assets acquired with such Indebtedness to Total EBITDA (less
the EBITDA of any assets sold during such period). The Borrowers shall deliver an officer’s
certificate, signed by the Financial Officer of a Borrower, certifying that the pro forma
calculations as of the date of such Borrowing demonstrate the Borrowers’ compliance with the
covenants and financial ratios set forth in SECTION 6.1(a), SECTION 6.1(b) and SECTION 6.1(c).

     (f) Covenant Calculations. For purposes of the calculations to be made pursuant to
SECTION 6.1 (a) through (c) (and the definitions used therein), (1) the relevant financial
statements and terms will exclude the effects of consolidation of investments in non-wholly owned
subsidiaries under Interpretation No. 46 of the Financial Accounting Standards Board and (2)
SECTION 1.5 shall apply to investments in Joint Ventures.

     SECTION 6.2. Liens. The Borrowers will not, and will not permit any Subsidiary to,
directly or indirectly, create, incur, assume or permit to exist (upon the happening of a
contingency or otherwise) any Lien on or with respect to any property (including, without
limitation, any document or instrument in respect of goods or accounts receivable) or asset now
owned or hereafter acquired by it, or assign, convey or sell any income or revenues (including
accounts receivable) or rights in respect of any thereof, except:

     (a) Liens for taxes, assessments or other governmental charges that are not yet due and
payable or are being contested in compliance with SECTION 5.4;

     (b) any attachment or judgment Lien, unless the judgment it secures shall not, within 60 days
after the entry thereof, have been discharged or execution thereof stayed pending appeal, or shall
not have been discharged within 60 days after the expiration of any such stay;

     (c) Liens incidental to the conduct of business or the ownership of properties and assets
(including landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s and other similar Liens
for sums not yet due and payable) and Liens to secure the performance of bids, tenders, leases, or
trade contracts, or to secure statutory obligations (including obligations under workers
compensation, unemployment insurance and other social security legislation), surety or appeal bonds
or other Liens incurred in the ordinary course of business and not in connection with the borrowing
of money; provided that such Liens do not, in the aggregate, materially detract from the
value of all property of the Borrowers and the Subsidiaries taken as a whole;

     (d) leases or subleases granted to others, easements, rights-of-way, restrictions and other
similar charges or encumbrances, in each case incidental to the ownership of property or assets or
the ordinary conduct of the business of the Borrowers or any of their Subsidiaries,
provided that such Liens do not, in the aggregate, materially detract from the value of all
property of the Borrowers and their Subsidiaries taken as a whole;

     (e) Liens securing Indebtedness of a Subsidiary to a Borrower or to a wholly-owned Subsidiary
of a Borrower; or

 

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     (f) Liens on assets securing Secured Indebtedness, so long as (i) the incurrence of such
Secured Indebtedness is not prohibited by Article VI and (ii) if such Lien is on an Unencumbered
Property, the Borrowers comply with SECTION 5.9 and no Default or Event of Default exists or would
exist after giving effect thereto.

     SECTION 6.3. Fundamental Changes; Governing Documents. (a) The Borrowers will not,
and will not permit any Subsidiary to, merge into or consolidate with any other Person, or permit
any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise
dispose of (in one transaction or in a series of transactions) all or any substantial part of its
assets, or all or substantially all of the stock of any of its Subsidiaries (in each case, whether
now owned or hereafter acquired), or liquidate or dissolve, except that, if at the time thereof and
immediately after giving effect thereto no Default shall have occurred and be continuing (i) any
Person may merge into a Borrower in a transaction in which such Borrower is the surviving Person,
(ii) any Person may merge into any Subsidiary in a transaction in which the surviving entity is a
Subsidiary, (iii) any Subsidiary may sell, transfer, lease or otherwise dispose of its assets to a
Borrower or to another Subsidiary, (iv) any Subsidiary may sell, transfer or lease all or
substantially all of its assets and a Borrower may sell or transfer all or substantially all of the
Equity Interests of any Subsidiary in compliance with SECTION 6.6 and (v) any Subsidiary may
liquidate or dissolve if the Borrowers determine in good faith that such liquidation or dissolution
is in the best interests of the Borrowers and is not materially disadvantageous to the Lenders.

     (b) The Borrowers will not, and will not permit any of their Subsidiaries to, engage to any
material extent in any business other than businesses of the type conducted by the Borrowers and
their Subsidiaries on the date of execution of this Agreement and businesses reasonably related
thereto.

     (c) The Borrowers will not and will not permit their or their Subsidiaries’ certificate of
formation, limited liability company agreement, certificate of limited partnership, partnership
agreement, articles of incorporation, by-laws, or other charter documents, as the case may be, to
be modified, amended or supplemented in any respect whatsoever, without, in each case, the express
prior written consent or approval of the Required Lenders, if such changes would materially
adversely affect the rights of the Administrative Agent or the Lenders hereunder or under any of
the other Loan Documents.

     SECTION 6.4. Indebtedness. Neither a Borrower nor any of its Subsidiaries shall
directly or indirectly create, incur, assume or otherwise become directly or indirectly liable with
respect to any Indebtedness if (i) a Default or an Event of Default has occurred and is continuing,
or (ii) such incurrence would cause a Default or Event of Default hereunder; provided that the
Borrowers may incur Indebtedness during the continuance of a Default or an Event of Default only if
such Indebtedness is applied to the repayment in full of the Obligations and the Commitments are
terminated.

     SECTION 6.5. Transactions with Affiliates. The Borrowers will not, and will not
permit any of their Subsidiaries to, sell, lease or otherwise transfer any property or assets to,
or purchase, lease or otherwise acquire any material property or assets from, or otherwise engage
in any other material transactions with, any of its Affiliates, except (a) in the ordinary course
of business at prices and on terms and conditions not less favorable to the Borrowers or such
Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b)
transactions between or among a Borrower and its Subsidiaries in which such Borrower owns at least
90% of the equity interests and which do not involve any other Affiliate and (c) any Restricted
Payments permitted by SECTION 6.1(d).

     SECTION 6.6. Asset Sales and Disposition of Assets. The Borrowers will not, and will
not permit any Subsidiary to, sell, transfer or otherwise dispose of any asset unless (a) the
Borrowers

 

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comply with SECTION 5.9, to the extent applicable, and (b) no Default or Event of Default
exists or would exist after giving effect thereto.

     SECTION 6.7. Negative Pledge; Restrictive Agreements. From and after the Effective
Date, the Borrowers shall not enter into or permit to exist, and will not permit any Subsidiary to
enter into or permit to exist, any agreement or arrangement (i) containing any provision
prohibiting or restricting the creation or assumption of any Lien upon its properties (other than
(a) mechanics liens or judgment liens more than 30 days past due, and (b) with respect to
prohibitions on liens set forth in a mortgage on a particular property), revenues or assets,
whether now owned or hereafter acquired, or (ii) prohibiting or restricting the ability of such
Person to amend or modify this Agreement or any other Loan Document, or (iii) prohibiting or
restricting the ability of any Subsidiary to make or pay dividends or distributions to the
Borrowers (other than restrictions on dividends and distributions by a particular Subsidiary set
forth in an agreement for Secured Indebtedness entered into by such Subsidiary).

     SECTION 6.8. Restricted Investments; Acquisitions. The Borrowers will not, and will
not permit any Subsidiary to, (i) make any Restricted Investment if, after giving effect thereto,
the aggregate amount of Restricted Investments held by the Borrowers and their Subsidiaries would
exceed 25% of Total Assets or (ii) make any Investments in Condominium Developments, if after
giving effect thereto, the aggregate amount of Investments in Condominium Developments held by the
Borrowers and their Subsidiaries would exceed 10% of Total Assets. For purposes of this Section,
an Investment shall be valued at the greater of (i) cost and (ii) the value at which such
Investment is to be shown on the books of the Borrowers and their Subsidiaries in accordance with
GAAP. In addition, the Borrowers will not, and will not permit their Subsidiaries to, make any
acquisition of assets if a Default or an Event of Default has occurred and is continuing, or would
occur after giving effect thereto.

     SECTION 6.9. Fiscal Year. The Borrowers shall not, and shall not permit any
Subsidiary to, change its Fiscal Year for accounting or tax purposes from a period consisting of
the 12-month period ending on December 31 of each calendar year.

     SECTION 6.10. Margin Regulations; Securities Laws. Neither a Borrower nor any of the
Subsidiaries shall use all or any portion of the proceeds of any credit extended under this
Agreement to purchase or carry Margin Stock.

     SECTION 6.11. ERISA. The Borrowers shall not and shall not permit any Subsidiary or
other ERISA Affiliate of the Borrowers to:

     (a) engage in any prohibited transaction described in Sections 406 of ERISA or 4975 of the
Internal Revenue Code for which a statutory or class exemption is not available or a private
exemption has not been previously obtained from the Department of Labor, except to the extent
engaging in such transaction would not have a Material Adverse Effect;

     (b) permit to exist any accumulated funding deficiency (as defined in Sections 302 of ERISA
and 412 of the Code), with respect to any Plan, whether or not waived;

     (c) terminate any Plan which could reasonably result in any liability of a Borrower or any
ERISA Affiliate under Title IV of ERISA exceeding $5,000,000;

     (d) fail to make any contribution or payment to any Multiemployer Plan which a Borrower or any
ERISA Affiliate may be required to make under any agreement relating to such Multiemployer Plan, or
any law pertaining thereto, except to the extent such failure would not have a Material Adverse
Effect;

 

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     (e) fail to pay any required installment or any other payment required under Section 412 of
the Code on or before the due date for such installment or other payment;

     (f) amend a Plan resulting in an increase in current liability for the plan year such that a
Borrower or any ERISA Affiliate is required to provide security to such Plan under Section
401(a)(29) of the Code; or

     (g) take or omit to take any action that would cause the assets of a Borrower or its
Subsidiaries to constitute “plan assets” within the meaning of 29 C.F.R. Section 2510.3-101 of one
or more “employee benefit plans” as defined in Section 3(3) of ERISA, subject to Title I of ERISA
or Section 4975 of the Code.

ARTICLE VII

EVENTS OF DEFAULT

     If any of the following events (“Events of Default”) shall occur:

     (a) the Borrowers shall fail to pay any principal of any Loan or any reimbursement obligation
in respect of any LC Disbursement when and as the same shall become due and payable, whether at the
due date thereof or at a date fixed for prepayment thereof or otherwise;

     (b) the Borrowers shall fail to pay any interest on any Loan or any fee or any other amount
(other than an amount referred to in clause (a) of this Article VII) payable under this Agreement,
when and as the same shall become due and payable, and such failure shall continue unremedied for a
period of three (3) days;

     (c) any representation or warranty made or deemed made by or on behalf of a Borrower or any
Subsidiary in or in connection with this Agreement or any other Loan Documents or any amendment or
modification hereof or thereof or waiver hereunder or thereunder, or in any report, certificate,
financial statement or other document furnished pursuant to or in connection with this Agreement or
any amendment or modification hereof or waiver hereunder, shall prove to have been incorrect in any
material respect when made or deemed made;

     (d) a Borrower or any Subsidiary shall fail to observe or perform any covenant, condition or
agreement contained in SECTION 5.2, SECTION 5.3 (with respect to a Borrower’s existence) or SECTION
5.8 or in ARTICLE VI;

     (e) a Borrower shall fail to observe or perform any covenant, condition or agreement contained
in this Agreement (other than those specified in clause (a), (b) or (d) of this Article VII), and
such failure shall continue unremedied for a period of thirty (30) days after the earlier of a
Borrower’s becoming aware of such default or notice thereof from the Administrative Agent to the
Borrowers (which notice will be given at the request of any Lender);

     (f) a Borrower or any Subsidiary shall fail to make any payment (whether of principal or
interest and regardless of amount) in respect of any Material Indebtedness, when and as the same
shall become due and payable;

     (g) any event or condition occurs that results in any Material Indebtedness becoming due prior
to its scheduled maturity or that enables or permits (with or without the giving of notice, the
lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent
on its or

 

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their behalf to cause any Material Indebtedness to become due, or to require the prepayment,
repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided
that this clause (g) shall not apply to Secured Indebtedness that becomes due as a result of the
voluntary sale or transfer of the property or assets securing such Indebtedness or to the voluntary
prepayment of Indebtedness that is permitted by this Agreement;

     (h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of a Borrower or any Subsidiary
or its debts, or of a substantial part of its assets, under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for a
Borrower or any Subsidiary or for a substantial part of its assets, and, in any such case, such
proceeding or petition shall continue undismissed for 60 days or an order or decree approving or
ordering any of the foregoing shall be entered;

     (i) a Borrower or any Subsidiary shall (i) voluntarily commence any proceeding or file any
petition seeking liquidation, reorganization or other relief under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition
described in clause (h) of this Article, (iii) apply for or consent to the appointment of a
receiver, trustee, custodian, sequestrator, conservator or similar official for a Borrower or any
Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding, (v) make a general assignment
for the benefit of creditors or (vi) take any action for the purpose of effecting any of the
foregoing;

     (j) a Borrower or any Subsidiary shall become unable, admit in writing its inability or fail
generally to pay its debts as they become due;

     (k) one or more judgments for the payment of money (other than in respect of Non-Recourse
Indebtedness) in an aggregate amount in excess of $10,000,000 shall be rendered against a Borrower,
any Subsidiary or any combination thereof and the same shall remain undischarged for a period of
thirty (30) consecutive days during which execution shall not be effectively stayed, or any action
shall be legally taken by a judgment creditor to attach or levy upon any assets of a Borrower or
any Subsidiary to enforce any such judgment; provided that any such judgment shall not give rise to
an Event of Default under this Section VII(k) if and for so long as the amount of such judgment is
fully covered by a valid and binding insurance policy in favor of such Borrower or Subsidiary and
the insurer under such policy has been notified of, and has not disputed the claim made for, such
judgment;

     (l) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when
taken together with all other ERISA Events that have occurred, could reasonably be expected to
result in a Material Adverse Effect;

     (m) FelCor Trust shall cease to own directly or indirectly at least 80% of the aggregate
Equity Interests in FelCor Partnership, or

     (n) a Change in Control shall occur;

then, and in every such event (other than an event with respect to a Borrower described in clause
(h) or (i) of this Article VII), and at any time thereafter during the continuance of such event,
the Administrative Agent shall, at the request of the Required Lenders, by notice to the Borrowers,
take any or all of the following actions, at the same or different times: (i) terminate the
Commitments, and thereupon the Commitments shall terminate immediately, (ii) declare the Loans then
outstanding to be due and payable

 

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in whole (or in part, in which case any principal not so declared to be due and payable may
thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared
to be due and payable, together with accrued interest thereon and all fees and other obligations of
the Borrowers accrued hereunder, shall become due and payable immediately, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by the Borrowers, and
(iii) enforce any rights and exercise any remedies available under any Loan Document or otherwise;
and in case of any event with respect to a Borrower described in clause (h) or (i) of this Article
VII, the Commitments shall automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon and all fees and other obligations of the Borrowers accrued
hereunder, shall automatically become due and payable, without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by the Borrowers.

ARTICLE VIII

THE ADMINISTRATIVE AGENT

     Each of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative Agent
as its agent and authorizes the Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Administrative Agent by the terms hereof, together
with such actions and powers as are reasonably incidental thereto.

     The bank serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with a Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

     The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby that the Administrative Agent is required to exercise in writing as
directed by the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in SECTION 9.2), and (c) except as expressly set
forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable
for the failure to disclose, any information relating to the Borrowers or any of their Subsidiaries
that is communicated to or obtained by the bank serving as Administrative Agent or any of its
Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or
not taken by it with the consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in SECTION 9.2)
or in the absence of its own gross negligence or willful misconduct. The Administrative Agent
shall be deemed not to have knowledge of any Default unless and until written notice thereof is
given to the Administrative Agent by a Borrower or a Lender, and the Administrative Agent shall not
be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement, (ii) the contents of any certificate,
report or other document delivered hereunder or in connection herewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set forth herein, (iv)
the validity, enforceability, effectiveness or genuineness of this Agreement or any other
agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV
or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to
the Administrative Agent.

 

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     The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrowers), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

     The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative
Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any
such sub-agent, and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as Administrative Agent.

     Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the
Issuing Bank and the Borrowers. Upon any such resignation, the Required Lenders shall have the
right, in consultation with the Borrowers, to appoint a successor. If no successor shall have been
so appointed by the Required Lenders and shall have accepted such appointment within 30 days after
the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative
Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent
which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon
the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its
duties and obligations hereunder. The fees payable by the Borrowers to a successor Administrative
Agent shall be the same as those payable to its predecessor unless otherwise agreed between the
Borrowers and such successor. After the Administrative Agent’s resignation hereunder, the
provisions of this Article and SECTION 9.3 shall continue in effect for the benefit of such
retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of
any actions taken or omitted to be taken by any of them while it was acting as Administrative
Agent.

     Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any related agreement or any document furnished hereunder or thereunder.

ARTICLE IX

MISCELLANEOUS

     SECTION 9.1. Notices. (a) Except in the case of notices and other communications
expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and
other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows:

 

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     (i) if to a Borrower, to it at 545 E. John Carpenter Freeway, Suite 1300,
Irving, Texas 75062, Attention of the Treasurer, with a copy to the General Counsel,
(Telecopy No. (972) 444-4949);

     (ii) if to the Administrative Agent, to JPMorgan Chase Bank, N.A., Loan and
Agency Services Group, 1111 Fannin Street, 10th Floor, Houston, Texas
77002, (Telecopy No. (713) 750-2892), with a copy to JPMorgan Chase Bank, N.A., 277
Park Avenue, New York, New York 10172, Attention of Donald Shokrian (Telecopy No.
(646) 534-0574);

     (iii) if to the Issuing Bank, to JPMorgan Chase Bank, N.A., 270 Park Avenue,
15th Floor, New York, New York 10017, Attention of Daniella Cassagnol
(Telecopy No. (212) 270-3513);

     (iv) if to the Swingline Lender to JPMorgan Chase Bank, N.A., Loan and Agency
Services Group, 1111 Fannin Street, 10th Floor, Houston, Texas 77002,
(Telecopy No. (713) 750-2892); and

     (v) if to any other Lender, to it at its address (or telecopy number) set forth
in its Administrative Questionnaire.

     (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or the Borrowers may, in
their discretion, agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it; provided that approval of such procedures may
be limited to particular notices or communications.

     (c) Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement shall
be deemed to have been given on the date of receipt.

     SECTION 9.2. Waivers; Amendments. (a) No failure or delay by the Administrative
Agent, the Issuing Bank or any Lender in exercising any right or power hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights and remedies of
the Administrative Agent, the Issuing Bank and the Lenders hereunder are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of
this Agreement or consent to any departure by the Borrowers therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver
or consent shall be effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of
Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative
Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at the time.

     (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Borrowers and the Required
Lenders or by the Borrowers and the Administrative Agent with the consent of the Required

 

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Lenders; provided that no such agreement shall (i) increase the Commitment of any
Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or
LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder,
without the written consent of each Lender affected thereby, (iii) postpone the scheduled date of
payment of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any
fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the
scheduled date of expiration of any Commitment, or permit the expiration date of any Letter of
Credit to be after the Maturity Date, without the written consent of each Lender affected thereby
other than as expressly permitted in SECTION 2.10(f) with respect to the one-year extension of the
Maturity Date, (iv) change SECTION 2.18(b) or SECTION 2.18(c) in a manner that would alter the pro
rata sharing of payments required thereby, without the written consent of each Lender, (v) change
any of the provisions of this Section or the definition of “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders required to waive, amend or modify
any rights hereunder or make any determination or grant any consent hereunder, without the written
consent of each Lender, or (vi) release a Borrower of its obligations hereunder or release any
Subsidiary Guaranty (if provided), without the consent of each Lender, provided that the
Administrative Agent may confirm release of a Subsidiary Guaranty in accordance with SECTION 5.13;
provided further that no such agreement shall amend, modify or otherwise affect the
rights or duties of the Administrative Agent, the Issuing Bank or the Swingline Lender hereunder
without the prior written consent of the Administrative Agent, the Issuing Bank or the Swingline
Lender, as the case may be. Notwithstanding the foregoing, the total Commitments may be increased
as provided in SECTION 2.9(d) with only the consent of the Administrative Agent and those Lenders
which are increasing their respective Commitments.

     SECTION 9.3. Expenses; Indemnity; Damage Waiver. (a) The Borrowers shall pay (i) all
reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates,
including the reasonable fees, charges and disbursements of counsel for the Administrative Agent,
in connection with the syndication of the credit facilities provided for herein, the preparation
and administration of this Agreement or any amendments, modifications or waivers of the provisions
hereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii)
all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance,
amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and
(iii) all out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank or any
Lender, including the fees, charges and disbursements of any counsel for the Administrative Agent,
the Issuing Bank or any Lender, in connection with the enforcement or protection of its rights in
connection with this Agreement, including its rights under this Section, or in connection with the
Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of
Credit.

     (b) The Borrowers shall indemnify the Administrative Agent, the Issuing Bank and each Lender,
and each Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including the fees, charges and disbursements of any
counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of (i) the execution or delivery of this Agreement or any agreement
or instrument contemplated hereby, the performance by the parties hereto of their respective
obligations hereunder or the consummation of the Transactions or any other transactions
contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom
(including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit
if the documents presented in connection with such demand do not strictly comply with the terms of
such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on
or from any property owned or operated by the Borrowers or any of their Subsidiaries, or any
Environmental Liability related in any way to the Borrowers or any of its

 

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Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other theory and
regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the gross negligence or willful misconduct of such
Indemnitee.

     (c) To the extent that the Borrowers fail to pay any amount required to be paid by it to the
Administrative Agent, the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this
Section, each Lender severally agrees to pay to the Administrative Agent, the Issuing Bank or the
Swingline Lender, as the case may be, such Lender’s Applicable Percentage (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount; provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted against the
Administrative Agent, the Issuing Bank or the Swingline Lender in its capacity as such.

     (d) To the extent permitted by applicable law, the Borrowers shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

     (e) All amounts due under this Section shall be payable promptly after written demand
therefor.

     SECTION 9.4. Successors and Assigns. (a) The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of
Credit), except that (i) a Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by a Borrower without such consent shall be null and void) and (ii) no
Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance
with this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective successors and assigns permitted
hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), Participants
(to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent, the Issuing Bank and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this Agreement.

     (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld) of:

          (A) the Borrowers, provided that no consent of the Borrowers shall be
required for an assignment to a Lender or an Affiliate of a Lender, or, if an Event
of Default has occurred and is continuing, any other assignee; and

          (B) the Administrative Agent, provided that no consent of the Administrative
Agent shall be required for an assignment to an Affiliate of a Lender so long as the Lender
gives the Administrative Agent prior written notice of such transfer; and

 

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          (C) the Issuing Bank, provided that no consent of the Issuing Bank shall be required
for an assignment to an Affiliate of a Lender so long as the Lender gives the Administrative
Agent prior written notice of such transfer.

      (i) Assignments shall be subject to the following additional conditions:

          (A) except in the case of an assignment to a Lender or an Affiliate of
a Lender or an assignment of the entire remaining amount of the assigning
Lender’s Commitment or Loans of any Class, the amount of the Commitment or
Loans of the assigning Lender subject to each such assignment (determined as
of the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $5,000,000
unless each of the Borrowers and the Administrative Agent otherwise consent,
provided that no such consent of the Borrowers shall be required if
an Event of Default under clause (a), (b), (h) or (i) of Article VII has
occurred and is continuing;

          (B) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations
under this Agreement;

          (C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee of $3,500 (except that such fee shall not be
payable for an assignment by a Lender to its Affiliate); and

          (D) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire.

      (ii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv)
of this Section, from and after the effective date specified in each Assignment and
Assumption the assignee thereunder shall be a party hereto and, to the extent of the
interest assigned by such Assignment and Assumption, have the rights and obligations
of a Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption, be released from
its obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of SECTION 2.15, SECTION 2.16, SECTION 2.17 and SECTION
9.3). Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this SECTION 9.4 shall be treated for purposes
of this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (c) of this Section.

      (iii) The Administrative Agent, acting for this purpose as an agent of the
Borrowers, shall maintain at one of its offices a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitment of, and principal amount of the Loans
and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to
time (the “Register”). The entries in the Register shall be conclusive, and
the Borrowers, the Administrative Agent, the Issuing Bank and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for

 

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all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrowers, the Issuing Bank and
any Lender, at any reasonable time and from time to time upon reasonable prior
notice.

      (iv) Upon its receipt of a duly completed Assignment and Assumption executed by
an assigning Lender and an assignee, the assignee’s completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this Section and any
written consent to such assignment required by paragraph (b) of this Section, the
Administrative Agent shall accept such Assignment and Assumption and record the
information contained therein in the Register. No assignment shall be effective for
purposes of this Agreement unless it has been recorded in the Register as provided
in this paragraph.

(c) (i) Any Lender may, without the consent of the Borrowers, the Administrative
Agent, the Issuing Bank or the Swingline Lender, sell participations to one or more
banks or other entities (a “Participant”) in all or a portion of such
Lender’s rights and obligations under this Agreement (including all or a portion of
its Commitment and the Loans owing to it); provided that (A) such Lender’s
obligations under this Agreement shall remain unchanged, (B) such Lender shall
remain solely responsible to the other parties hereto for the performance of such
obligations and (C) the Borrowers, the Administrative Agent, the Issuing Bank and
the other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement. Any
agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and
to approve any amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will
not, without the consent of the Participant, agree to any amendment, modification or
waiver described in the first proviso to SECTION 9.2(b) that affects such
Participant. Subject to paragraph (c)(ii) of this Section, the Borrowers agree that
each Participant shall be entitled to the benefits of SECTION 2.15, SECTION 2.16,
and SECTION 2.17 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to paragraph (b) of this Section. To the extent
permitted by law, each Participant also shall be entitled to the benefits of SECTION
9.8 as though it were a Lender, provided such Participant agrees to be subject to
SECTION 2.18(c) as though it were a Lender.

      (ii) A Participant shall not be entitled to receive any greater payment under
SECTION 2.15 or 2.17 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrowers’ prior written consent.
A Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of SECTION 2.17 unless the Borrowers are notified of the
participation sold to such Participant and such Participant agrees, for the benefit
of the Borrowers, to comply with SECTION 2.17(e) as though it were a Lender.

     (d) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including without limitation
any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall
not apply to any such pledge or assignment of a security interest; provided that no such
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security interest shall release a Lender from any of its obligations hereunder or substitute
any such pledgee or assignee for such Lender as a party hereto.

     SECTION 9.5. Survival. All covenants, agreements, representations and warranties made
by the Borrowers herein and in the certificates or other instruments delivered in connection with
or pursuant to this Agreement shall be considered to have been relied upon by the other parties
hereto and shall survive the execution and delivery of this Agreement and the making of any Loans
and issuance of any Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that the Administrative Agent, the Issuing Bank or any Lender
may have had notice or knowledge of any Default or incorrect representation or warranty at the time
any credit is extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount payable under this
Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the
Commitments have not expired or terminated. The provisions of SECTIONS 2.15, 2.16, 2.17 and 9.03
and Article VIII shall survive and remain in full force and effect regardless of the consummation
of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination
of the Letters of Credit and the Commitments or the termination of this Agreement or any provision
hereof.

     SECTION 9.6. Counterparts; Integration; Effectiveness. This Agreement may be executed
in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and any separate letter agreements with respect to fees payable to the
Administrative Agent constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in SECTION 4.1, this Agreement shall
become effective when it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. 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.

     SECTION 9.7. Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

     SECTION 9.8. Right of Setoff. Subject to SECTION 2.18, if an Event of Default shall
have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any
time and from time to time, to the fullest extent permitted by law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any time held and other
obligations at any time owing by such Lender or Affiliate to or for the credit or the account of
the Borrowers against any of and all the obligations of the Borrowers now or hereafter existing
under this Agreement held by such Lender, irrespective of whether or not such Lender shall have
made any demand under this Agreement and although such obligations may be unmatured. The rights of
each Lender under this Section are in addition to other rights and remedies (including other rights
of setoff) which such Lender may have.

     SECTION 9.9. Governing Law; Jurisdiction; Consent to Service of Process. (a) This
Agreement shall be construed in accordance with and governed by the law of the State of New York.

 

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     (b) Each Borrower hereby irrevocably and unconditionally submits, for itself and its property,
to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New York, and any
appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding
may be heard and determined in such New York State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement shall affect any right that the
Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement against a Borrower or its properties in the courts of any
jurisdiction.

     (c) Each Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Agreement in any court
referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

     (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in SECTION 9.1. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

     SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

     SECTION 9.11. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

     SECTION 9.12. Confidentiality. Each of the Administrative Agent, the Issuing Bank and
the Lenders agrees to maintain the confidentiality of the Information (as defined below), except
that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the extent requested by
any regulatory authority, (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with
the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this

 

-58-

Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to a Borrower and its obligations, (g) with the consent of the
Borrowers or (h) to the extent such Information (i) becomes publicly available other than as a
result of a breach of this Section or (ii) becomes available to the Administrative Agent, the
Issuing Bank or any Lender on a nonconfidential basis from a source other than the Borrowers. For
the purposes of this Section, “Information” means all information received from the
Borrowers relating to the Borrowers or their business, other than any such information that is
available to the Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis
prior to disclosure by the Borrowers; provided that, in the case of information received
from the Borrowers after the date hereof, such information is clearly identified at the time of
delivery as confidential. Any Person required to maintain the confidentiality of Information as
provided in this Section shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of such Information as
such Person would accord to its own confidential information.

     SECTION 9.13. USA PATRIOT Act. Each Lender hereby notifies the Borrowers that
pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) (the “Act”), it is required to obtain, verify and record information
that identifies the Borrowers, which information includes the name and address of the Borrowers and
other information that will allow such Lender to identity the Borrowers in accordance with the Act.

     SECTION 9.14. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges
and other amounts which are treated as interest on such Loan under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance
with applicable law, the rate of interest payable in respect of such Loan hereunder, together with
all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent
lawful, the interest and Charges that would have been payable in respect of such Loan but were not
payable as a result of the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be increased (but not
above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the
Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

[remainder of page left blank intentionally]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 	 
	 	 	FELCOR LODGING TRUST INCORPORATED
	 
	 	 	 	 
	 
	 	By:	 	/s/ Andrew J. Welch
	 

	 	 	 	 
	 

	 	 	 	Name: Andrew J. Welch
	 

	 	 	 	Title:   Senior Vice President

	 	 	 	 	 	 
	 

	 	Address:
	 	545 E John Carpenter Freeway, Suite 1300
	 

	 	 	 	Irving, Texas 75062
	 
	 	 	 	 
	 	 	Taxpayer Identification Number: 75-2541756

	 	 	 	 	 	 	 	 
	 	 	FELCOR LODGING LIMITED PARTNERSHIP
	 
	 	 	 	 	 	 
	 	 	By:	 	FelCor Lodging Trust Incorporated,
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By	 	/s/ Andrew J. Welch
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Andrew J. Welch
	 

	 	 	 	 	 	Title:   Senior Vice President

	 	 	 	 	 	 
	 

	 	Address:
	 	545 E John Carpenter Freeway, Suite 1300
	 

	 	 	 	Irving, Texas 75062
	 
	 	 	 	 
	 	 	Taxpayer Identification Number: 75-2544994

 

 

	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., individually and as
	 	 	Swingline Lender, Issuing Bank and Administrative Agent,
	 
	 	 	 	 
	 

	 	By:	 	/s/ Donald S. Shokrian
	 

	 	 	 	 
	 

	 	 	 	Name: Donald S. Shokrian
	 

	 	 	 	Title:  Managing Director

 

 

	 	 	 	 	 	 
	 	 	CITICORP NORTH AMERICA, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ David Bouton
	 

	 	 	 	 
	 

	 	 	 	Name: David Bouton
	 

	 	 	 	Title:  Vice President

 

 

	 	 	 	 	 	 
	 	 	MERRILL LYNCH CAPITAL CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ John C. Rowland
	 

	 

	 	 	 	 
	 

	 	 	 	Name: John C. Rowland
	 

	 	 	 	Title:  Vice President

 

 

	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Lesa J. Butler
	 

	 	 	 	 
	 

	 	 	 	Name: Lesa J. Butler
	 

	 	 	 	Title:  Senior Vice President

 

 

	 	 	 	 	 	 
	 	 	DEUTSCHE BANK TRUST COMPANY AMERICAS
	 
	 	 	 	 
	 

	 	By:	 	/s/ Linda Wang
	 

	 	 	 	 
	 

	 	 	 	Linda Wang
	 

	 	 	 	Vice President
	 
	 	 	 	 
	 

	 	By:	 	/s/ James Rolison
	 

	 	 	 	 
	 

	 	 	 	James Rolison
	 

	 	 	 	Director

 

 

	 	 	 	 	 	 
	 	 	MORGAN STANLEY SENIOR FUNDING, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Daniel Twenge
	 

	 	 	 	 
	 

	 	 	 	Name: Daniel Twenge
	 

	 	 	 	Title:  Vice Presidentexv10w34w1w1

 

Exhibit 10.34.1.1

AMENDMENT NO. 1 TO CREDIT AGREEMENT

     This AMENDMENT NO. 1 TO CREDIT AGREEMENT (this “Amendment No. 1”) is made as of January 12,
2006 among (a) FelCor Lodging Trust Incorporated and FelCor Lodging Limited Partnership
(collectively, the “Borrowers”), (b) the Lenders party hereto, and (c) JPMorgan Chase Bank, N.A.
(“JPMCB”) as Administrative Agent (in such capacity, the “Administrative Agent”) for the Lenders.

     WHEREAS, the Borrowers, the Lenders and the Administrative Agent are parties to a Credit
Agreement, dated as of December 12, 2005 (the “Credit Agreement”), pursuant to which the Lenders
have agreed to make loans to the Borrowers on the terms and conditions set forth therein; and

     WHEREAS, the Borrowers have requested that the Lenders amend certain provisions of the Credit
Agreement, and the Lenders party hereto are willing to so amend certain provisions of the Credit
Agreement on the terms and conditions set forth herein;

     NOW, THEREFORE, in consideration of the foregoing premises, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and fully intending to
be legally bound by this Amendment No. 1, the parties hereto agree as follows:

     1. Definitions. Capitalized terms used herein without definition shall have the
meanings assigned to such terms in the Credit Agreement.

     2. Amendments to Credit Agreement. As of the Effective Date (as defined in Section 4
hereof) the Credit Agreement is amended by deleting the date “January 15, 2006” set forth in the
last paragraph of Section 4.1 and substituting the date “February 15, 2006” in place thereof:

     3. Provisions Of General Application.

     3.1. No Other Changes. Except as otherwise expressly provided or contemplated
by this Amendment No. 1, all of the terms, conditions and provisions of the Credit
Agreement remain unaltered and in full force and effect. The Credit Agreement and this
Amendment No. 1 shall be read and construed as one agreement.

 

 

     3.2. Governing Law. THIS AMENDMENT NO. 1 SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

     3.3. Assignment. This Amendment No. 1 shall be binding upon and inure to
the benefit of each of the parties hereto and their respective permitted successors and
assigns.

     3.4. Counterparts. This Amendment No. 1 may be executed in any number of
counterparts, but all such counterparts shall together constitute but one and the same
agreement. In making proof of this Amendment No. 1, it shall not be necessary to produce
or account for more than one counterpart thereof signed by each of the parties hereto.

     4. Effectiveness of this Amendment No. 1. This Amendment No. 1 shall become effective
on (the “Effective Date”) the date of execution and delivery to the Administrative Agent by each of
the Lenders, the Borrowers, and the Administrative Agent of this Amendment No. 1.

[Remainder of page left blank intentionally]

2

 

     IN WITNESS WHEREOF, the undersigned have duly executed and delivered this Amendment No. 1 as
of the date first set forth above.

	 	 	 	 	 
	BORROWERS:       	FELCOR LODGING TRUST INCORPORATED

 	 
	 	By:  	
/s/ Andrew J. Welch 	 
	 	 	Name:  	 Andrew J. Welch
	 	 	Title:  Senior Vice President
	 

	 	 	 	 	 
	 	 	FELCOR LODGING LIMITED PARTNERSHIP
	 
	 	 	 	 
	 

	 	By:
	 	FelCor Lodging Trust Incorporated,
	 

	 	 	 	its General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	/s/
Andrew J. Welch
 	 
	 	 	Name: Andrew J. Welch
	 	 	Title:  Senior Vice President

 

 

	 	 	 	 	 

	 	 	 
	LENDERS:

	 	JPMORGAN CHASE BANK, N.A.,
	 

	 	individually and as Swingline Lender, Issuing
	 

	 	Bank and Administrative Agent,

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Donald Shokrian 	 
	 	 	Name:  	Donald Shokrian 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	CITICORP NORTH AMERICA, INC.

 	 
	 	By:  	
/s/ David Bouton 	 
	 	 	Name:  	David Bouton 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	MERRILL LYNCH CAPITAL CORPORATION

 	 
	 	By:  	
/s/ John C. Rowland 	 
	 	 	Name:  	John C. Rowland 	 
	 	 	Title:  	Vice President 	 
	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	
/s/ Lesa J. Butler 	 
	 	 	Name:  	Lesa J. Butler 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS

 	 
	 	By:  	
/s/ Linda Wang 	 
	 	 	Name:  	Linda Wang 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	
/s/ Brenda Casey 	 
	 	 	Name:  	Brenda Casey 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MORGAN STANLEY SENIOR FUNDING, INC.

 	 
	 	By:  	
/s/ Eugene F. Martin 	 
	 	 	Name:  	Eugene F. Martin 	 
	 	 	Title:  	Vice President

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