Document:

exh10_17.htm

    Exhibit 10.17

     

    Cellceutix
Corporation

     

    

     

    -and-

     

    

     

    Girindus America,
Inc. ("Contractor") 

     

    

     

     

     

    This
Agreement (the “Agreement”) is entered into as of June 22, 2009 (“Effective
Date”) by and between Cellceutix Corporation (hereinafter “Cellceutix”), a
Delaware corporation with a principal place of business at 100 Cummings Center,
Suite 151-B, Beverly, MA 01915 and Girindus America, Inc., a Delaware
Corporation with place of business at 8560 Reading Road, Cincinnati OH
45215-5528 (hereinafter, “Contractor"), a corporation with a place of business
at 8560 Reading Road, Cincinnati, Ohio, 45215-5528 (collectively, the
“parties”).

     

    

     

    In
consideration of the mutual covenants set forth herein and intending to be
legally bound, the parties hereto agree as follows:

     

    

     

    1. 
Contractor agrees to manufacture for Cellceutix the compound known as Kevetrin
(tm) in accordance with the terms set forth below.

     

    

     

    2. 
Contractor will manufacture approximately 3-4 kg of the compound, but in no
event less that 3 kg, for use in animal and human studies.  Contractor will
undertake commercially reasonable efforts to deliver the material within 75 days
of the date hereof.  The project shall be performed in accordance with the
Proposal attached hereto as Exhibit 1. If and to the extent any terms and
conditions of the Proposal including its Exhibit 1 shall deviate from or be
inconsistent with any provisions of this Agreement, the provisions of this
Agreement shall prevail.

     

    

     

    3. 
The price for the work to be performed by Contractor will be [redacted]. 
Contractor will invoice Cellceutix according to the schedule set forth in
Exhibit 1.  The initial payment will be non-refundable except that if
Cellceutix finds Contractor's facility unacceptable upon inspection within 15
days of the date hereof, Contractor will refund the
payment.  

     

    4. 
Cellceutix representatives may visit the facility during regular business hours
within 15 days of the date hereof and at any time when the work hereunder is
being performed.  The parties will work together to schedule the visits so
as to minimize disruption to Contractor's work.  Contractor's
representatives will provide any documentation reasonably requested by
Cellceutix for the purposes of confirming the ability of Contractor to meet its
obligations hereunder or confirming that the work being performed is consistent
with the terms of this Agreement.

     

    

     

    

     

     5. 
Warranties

     

    

     

    All
materials will be free from claims or liens of third parties.  The final
material will at the time of its QA/QC release by the Contractor conform to the
specifications mutually agreed to by the parties in accordance with Exhibit 1
and to the certificate of analysis provided to Cellceutix with the
materials. Except for the approximately 300g of non-GMP material described
in Exhibit 1, all materials will comply in all material respects with current
Good Manufacturing Practices regulations in effect at the time of delivery to
Cellceutix.

     

    

     

    6. 
Delivery

     

    

     

       
Delivery of the material along with a certificate of analysis and documentation
of the process used will be made to Cellceutix at Contractor's facility in
Cincinnati, Ohio.  Risk of loss will pass to Cellceutix at that time. 
If requested by Cellceutix, Contractor will arrange deliveries to a maximum of
three sites at the expense and the risk of of Cellceutix.

     

    

     

    7. 
Acceptance

     

    

     

       
Any material delivered by Contractor will be deemed accepted by Cellceutix 30
days after the date of the delivery, unless Cellceutix notifies Contractor that
the material does not comply with paragraph 5, above.  

     

    

     

    8. 
Intellectual Property

     

    

     

       
Any invention, know-how or trade secret (whether or not patentable) developed by
Contractor or jointly by Contractor and Cellceutix in the course of performing
the work hereunder (Improvements) will be the sole property of Cellceutix. 
Contractor will promptly disclose any such invention, know-how or trade secret
to Cellceutix and will cooperate with Cellceutix in documenting ownership by
Cellceutix and in filing any intellectual property registrations (such as patent
applications) thought necessary or desirable by Cellceutix at the expense of
Cellceutix.  As used herein, "invention, know-how or trade secret" will be
deemed to include the cGMP process and all associated documentation and data
developed hereunder as well as any process improvements, alternative processes
or alternative portions of processes developed as part of the work hereunder.
Cellceuticx herewith grants Contractor a non exclusive worldwide royalty free
license with the right to grant sublicenses to Contractor’s affiliates to use
any Improvements which are of generic nature also for other projects outside of
this Agreement with third parties.

     

    

     

    9. 
Contractor will permit Cellceutix to refer to its facility in regulatory filings
and will provide letters of reference to its Drug Master files as reasonably
necessary to support Cellceutix filings.

     

    

     

    10. 
Either party may terminate the Agreement in the event of a material breach by
the other which breach has not been cured within 30 days of notice by the
terminating party.  In addition, Cellceutix may cancel the contract on 15
days notice to Girindus.  In the event of cancellation by Cellceutix,
Girindus will be entitled to receive all amounts billed prior to receiving
notice of cancellation, any additional amounts that have been expended and not
billed by Girindus prior to receiving notice of termination and reimbursement
for any commitments made in good faith by Girindus prior to receiving notice of
termination that cannot be reasonably avoided.

     

     

     

    11. This
agreement may not be assigned by either party without the consent of the other
except in the event of a sale of substantially all of the stock or assets of the
assigning party.  If a party desires to assign the Agreement in accordance
with this paragraph, the assignee must agree to be bound by all of the terms
hereof and confirm this in writing to the non assigning party. .

     

    

     

    12. Each
party represents that it is not party to any contracts with any other Person
that would interfere with or prevent their respective compliance with the terms
and provisions of this Agreement.

     

    

     

    13. No
failure or delay by either party hereto in exercising any right, power or
privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise thereof preclude any other or future exercise of any right,
power or privilege.

     

    

     

    14. This
Agreement constitutes the entire agreement between the parties and, excepting
the Confidential Disclosure Agreement between the partied dated June 22, 2009,
which shall remain in effect according to its terms, supersedes any prior or
contemporaneous oral or written representation with regard to the subject matter
hereof. This Agreement may not be modified except by a writing signed by each of
the parties.

     

    

     

    15. The
validity, interpretation, performance and enforcement of this Agreement shall be
governed by the laws of the State of Delaware, without regard to its choice of
law provisions. The parties hereto hereby irrevocably and unconditionally
consent to the exclusive jurisdiction of the courts of the State of Delaware for
any action, suit or proceeding (other than appeals therefrom) arising out of or
relating to this Agreement, and agree not to commence any action, suit or
proceeding (other than appeals therefrom) related thereto except in such
courts.

     

     

     

    16. If
any provision of this Agreement is found to be unenforceable, the remainder
shall be enforced as fully as possible and the unenforceable provision shall be
deemed modified to the limited extent required to permit its enforcement in a
manner most closely approximating the intention of the parties as expressed
herein.

     

     

     

    IN
WITNESS WHEREOF, the parties have caused this  Agreement to be signed as of
the date first above written.

     

    

    Cellceutix
Corporation

     

    

    by: 
Signature /s/ George
W.
Evans                    Date:    June 22,
2009

     

    

    Name: George W.
Evans

     

     

    Title:   CEO

     

     

    ACKNOWLEDGED,
ACCEPTED AND AGREED TO BY:

     

     

    Girindus
America Inc.

     

     

     

    by:
Signature:      /s/   F. Mark
Laskovics            Date:     June 22,
2009

     

     

    Name:
F. Mark
Laskovics

     

    

     

    Title:   President and
COOex4-1reit.htm

    
      
        

      

      Exhibit 4.1

      

      EXECUTION
VERSION

      
        

      

      FELCOR
ESCROW HOLDINGS, L.L.C.

      as
Issuer,

       

      and

       

      U.S. BANK
NATIONAL ASSOCIATION,

      as
Trustee and Collateral Agent

       

      __________________

       

      INDENTURE

       

      Dated as
of October 1, 2009

       

      __________________

       

      10%
Senior Secured Notes due 2014

       

      
        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      CROSS-REFERENCE
TABLE

       

      
        	
                TIA Sections

              	
                Indenture Sections

              
	
                Section
      310(a)(1)                                                                                

              	
                7.10

              
	
                (a)(2)                                                                                                     

              	
                7.10

              
	
                (b)                                                                                                     

              	
                7.08

              
	
                Section
      311                                                                                

              	
                7.03

              
	
                Section
      313(a)                                                                                

              	
                7.06

              
	
                Section
      313(c)                                                                                

              	
                7.06;
      10.02

              
	
                Section
      314(a)                                                                                

              	
                4.19;
      10.02

              
	
                (a)(4)                                                                                                     

              	
                4.18;
      10.02

              
	
                       (b)                                                                                                     

              	
                12.04

              
	
                       (c)(1)                                                                                                     

              	
                10.03

              
	
                       (c)(2)                                                                                                     

              	
                10.03

              
	
                       (d)                                                                                                     

              	
                12.06

              
	
                       (e)                                                                                                     

              	
                10.04

              
	
                Section
      315(b)                                                                                

              	
                7.05;
      10.02

              
	
                Section
      316(a)(1)(A)                                                                                

              	
                2.10

              
	
                       (a)(1)(B)                                                                                                     

              	
                6.04

              
	
                       (b)                                                                                                     

              	
                6.07

              
	
                Section
      317(a)(1)                                                                                

              	
                6.08

              
	
                       (a)(2)                                                                                                     

              	
                6.09

              
	
                Section
      318(a)                                                                                

              	
                10.01

              
	
                       (c)                                                                                                     

              	
                10.01

              

      

      

      *Note:  The
Cross-Reference Table shall not for any purpose be deemed to be a part of the
Indenture.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      TABLE OF
CONTENTS

       

      Page

      

      ARTICLE
ONE

      

      DEFINITIONS
AND INCORPORATION BY REFERENCE

      

      
        	
                SECTION
      1.01.

              	
                Definitions

              	
                1

              
	
                SECTION
      1.02.

              	
                Incorporation
      by Reference of Trust Indenture Act

              	
                26

              
	
                SECTION
      1.03.

              	
                Rules
      of Construction

              	
                26

              

      

      

      ARTICLE
TWO

      

      NOTES

      

      
        	
                SECTION
      2.01.

              	
                Form
      and Dating

              	
                27

              
	
                SECTION
      2.02.

              	
                Restrictive
      Legends

              	
                27

              
	
                SECTION
      2.03.

              	
                Execution,
      Authentication and Denominations

              	
                29

              
	
                SECTION
      2.04.

              	
                Registrar
      and Paying Agent

              	
                29

              
	
                SECTION
      2.05.

              	
                Paying
      Agent To Hold Money in Trust

              	
                30

              
	
                SECTION
      2.06.

              	
                Transfer
      and Exchange

              	
                30

              
	
                SECTION
      2.07.

              	
                Book-Entry
      Provisions for Global Notes

              	
                31

              
	
                SECTION
      2.08.

              	
                Special
      Transfer Provisions

              	
                32

              
	
                SECTION
      2.09.

              	
                Replacement
      Notes

              	
                34

              
	
                SECTION
      2.10.

              	
                Outstanding
      Notes

              	
                35

              
	
                SECTION
      2.11.

              	
                Temporary
      Notes

              	
                35

              
	
                SECTION
      2.12.

              	
                Cancellation

              	
                35

              
	
                SECTION
      2.13.

              	
                CUSIP
      Numbers

              	
                36

              
	
                SECTION
      2.14.

              	
                Defaulted
      Interest

              	
                36

              
	
                SECTION
      2.15.

              	
                Issuance
      of Additional Notes

              	
                36

              

      

      

      ARTICLE
THREE

      

      REDEMPTION

      

      
        	
                SECTION
      3.01.

              	
                Optional
      Redemption

              	
                36

              
	
                SECTION
      3.02.

              	
                Notices
      to Trustee

              	
                36

              
	
                SECTION
      3.03.

              	
                Selection
      of Notes To Be Redeemed

              	
                36

              
	
                SECTION
      3.04.

              	
                Notice
      of Redemption

              	
                37

              
	
                SECTION
      3.05.

              	
                Effect
      of Notice of Redemption

              	
                38

              
	
                SECTION
      3.06.

              	
                Deposit
      of Redemption Price

              	
                38

              
	
                SECTION
      3.07.

              	
                Payment
      of Notes Called for Redemption

              	
                38

              
	
                SECTION
      3.08.

              	
                Notes
      Redeemed in Part

              	
                38

              
	
                SECTION
      3.09.

              	
                Special
      Mandatory Redemption

              	
                38

              

      

      

      
         

        
          i

          
            

          

        

        
           

        

      

      

      ARTICLE
FOUR

      

      COVENANTS

      

      
        	
                SECTION
      4.01.

              	
                Payment
      of Notes

              	
                38

              
	
                SECTION
      4.02.

              	
                Maintenance
      of Office or Agency

              	
                39

              
	
                SECTION
      4.03.

              	
                Limitation
      on Indebtedness

              	
                39

              
	
                SECTION
      4.04.

              	
                Limitation
      on Restricted Payments

              	
                41

              
	
                SECTION
      4.05.

              	
                Limitation
      on Dividend and Other Payment Restrictions Affecting
      Restricted

                Subsidiaries

              	
                 

                44

              
	
                SECTION
      4.06.

              	
                Limitation
      on the Issuance and Sale of Capital Stock of Restricted
      Subsidiaries

              	
                45

              
	
                SECTION
      4.07.

              	
                Limitation
      on Issuances of Guarantees by Restricted Subsidiaries

              	
                46

              
	
                SECTION
      4.08.

              	
                Limitation
      on Transactions with Affiliates

              	
                46

              
	
                SECTION
      4.09.

              	
                Limitation
      on Liens

              	
                47

              
	
                SECTION
      4.10.

              	
                Limitation
      on Collateral Asset Sales

              	
                47

              
	
                SECTION
      4.11.

              	
                Limitation
      on Non-Collateral Asset Sales

              	
                49

              
	
                SECTION
      4.12.

              	
                Events
      of Loss

              	
                50

              
	
                SECTION
      4.13.

              	
                Repurchase
      of Notes upon a Change of Control

              	
                51

              
	
                SECTION
      4.14.

              	
                Existence

              	
                52

              
	
                SECTION
      4.15.

              	
                Payment
      of Taxes and Other Claims

              	
                52

              
	
                SECTION
      4.16.

              	
                Maintenance
      of Properties and Insurance

              	
                53

              
	
                SECTION
      4.17.

              	
                Notice
      of Defaults

              	
                53

              
	
                SECTION
      4.18.

              	
                Compliance
      Certificates

              	
                53

              
	
                SECTION
      4.19.

              	
                Commission
      Reports and Reports to Holders

              	
                54

              
	
                SECTION
      4.20.

              	
                Waiver
      of Stay, Extension or Usury Laws

              	
                54

              
	
                SECTION
      4.21.

              	
                Limitation
      on Sale-Leaseback Transactions

              	
                54

              
	
                SECTION
      4.22.

              	
                Investment
      Grade Rating

              	
                55

              
	
                SECTION
      4.23.

              	
                Post-Closing
      Covenant

              	
                55

              
	
                SECTION
      4.24.

              	
                Additional
      Collateral

              	
                57

              

      

      

      ARTICLE
FIVE

      

      SUCCESOR
CORPORATION

      

      
        	
                SECTION
      5.01.

              	
                Consolidation,
      Merger and Sale of Assets

              	
                57

              
	
                SECTION
      5.02.

              	
                Successor
      Substituted

              	
                58

              

      

      

      ARTICLE
SIX

      

      DEFAULT
AND REMEDIES

      

      
        	
                SECTION
      6.01.

              	
                Events
      of Default

              	
                59

              
	
                SECTION
      6.02.

              	
                Acceleration

              	
                60

              
	
                SECTION
      6.03.

              	
                Other
      Remedies

              	
                61

              
	
                SECTION
      6.04.

              	
                Waiver
      of Past Defaults

              	
                61

              
	
                SECTION
      6.05.

              	
                Control
      by Majority

              	
                61

              
	
                SECTION
      6.06.

              	
                Limitation
      on Suits

              	
                61

              
	
                SECTION
      6.07.

              	
                Rights
      of Holders To Receive Payment

              	
                62

              
	
                SECTION
      6.08.

              	
                Collection
      Suit by Trustee

              	
                62

              
	
                SECTION
      6.09.

              	
                Trustee
      May File Proofs of Claim

              	
                62

              
	
                SECTION
      6.10.

              	
                Priorities

              	
                62

              
	
                SECTION
      6.11.

              	
                Undertaking
      for Costs

              	
                63

              
	
                SECTION
      6.12.

              	
                Restoration
      of Rights and Remedies

              	
                63

              
	
                SECTION
      6.13.

              	
                Rights
      and Remedies Cumulative

              	
                63

              
	
                SECTION
      6.14.

              	
                Delay
      or Omission Not Waiver

              	
                63

              

      

      
         

        
          ii

          
            

          

        

        
           

        

      

      

      ARTICLE
SEVEN

      

      TRUSTEE

      

      
        	
                SECTION
      7.01.

              	
                General

              	
                63

              
	
                SECTION
      7.02.

              	
                Certain
      Rights of Trustee

              	
                63

              
	
                SECTION
      7.03.

              	
                Individual
      Rights of Trustee

              	
                64

              
	
                SECTION
      7.04.

              	
                Trustee’s
      Disclaimer

              	
                64

              
	
                SECTION
      7.05.

              	
                Notice
      of Default

              	
                64

              
	
                SECTION
      7.06.

              	
                Reports
      by Trustee to Holders

              	
                65

              
	
                SECTION
      7.07.

              	
                Compensation
      and Indemnity

              	
                65

              
	
                SECTION
      7.08.

              	
                Replacement
      of Trustee

              	
                66

              
	
                SECTION
      7.09.

              	
                Successor
      Trustee by Merger, Etc

              	
                66

              
	
                SECTION
      7.10.

              	
                Eligibility

              	
                66

              
	
                SECTION
      7.11.

              	
                Money
      Held in Trust

              	
                66

              
	
                SECTION
      7.12.

              	
                Withholding
      Taxes

              	
                67

              
	
                SECTION
      7.13.

              	
                Escrow
      Authorization

              	
                67

              

      

      

      ARTICLE
EIGHT

      

      DISCHARGE
OF INDENTURE

      

      
        	
                SECTION
      8.01.

              	
                Termination
      of Company’s Obligations

              	
                67

              
	
                SECTION
      8.02.

              	
                Defeasance
      and Discharge of Indenture

              	
                68

              
	
                SECTION
      8.03.

              	
                Defeasance
      of Certain Obligations

              	
                69

              
	
                SECTION
      8.04.

              	
                Application
      of Trust Money

              	
                70

              
	
                SECTION
      8.05.

              	
                Repayment
      to Company

              	
                70

              
	
                SECTION
      8.06.

              	
                Reinstatement

              	
                70

              

      

      

      ARTICLE
NINE

      

      ADMENDMENTS,
 SUPPLEMENTS AND WAIVERS

      

      
        	
                SECTION
      9.01.

              	
                Without
      Consent of Holders

              	
                70

              
	
                SECTION
      9.02.

              	
                With
      Consent of Holders

              	
                71

              
	
                SECTION
      9.03.

              	
                Revocation
      and Effect of Consent

              	
                72

              
	
                SECTION
      9.04.

              	
                Notation
      on or Exchange of Notes

              	
                72

              
	
                SECTION
      9.05.

              	
                Trustee
      To Sign Amendments, Etc

              	
                72

              
	
                SECTION
      9.06.

              	
                Conformity
      with Trust Indenture Act

              	
                73

              

      

      

      ARTICLE
TEN

      

      MISCELLANEOUS

      

      
        	
                SECTION
      10.01.

              	
                Trust
      Indenture Act of 1939

              	
                73

              
	
                SECTION
      10.02.

              	
                Notices

              	
                73

              
	
                SECTION
      10.03.

              	
                Certificate
      and Opinion as to Conditions Precedent

              	
                74

              
	
                SECTION
      10.04.

              	
                Statements
      Required in Certificate or Opinion

              	
                74

              
	
                SECTION
      10.05.

              	
                Rules
      by Trustee, Paying Agent or Registrar

              	
                74

              
	
                SECTION
      10.06.

              	
                Payment
      Date Other Than a Business Day

              	
                74

              
	
                SECTION
      10.07.

              	
                Governing
      Law

              	
                75

              
	
                SECTION
      10.08.

              	
                No
      Adverse Interpretation of Other Agreements

              	
                75

              
	
                SECTION
      10.09.

              	
                No
      Recourse Against Others

              	
                75

              
	
                SECTION
      10.10.

              	
                Successors

              	
                75

              
	
                SECTION
      10.11.

              	
                Duplicate
      Originals

              	
                75

              
	
                SECTION
      10.12.

              	
                Separability

              	
                75

              
	
                SECTION
      10.13.

              	
                Table
      of Contents, Headings, Etc

              	
                75

              

      

      
        
           

        

        
          iii

          
            

          

        

        
           

        

      

      

      ARTICLE
ELEVEN

      

      GUARANTEE
OF THE NOTES

      

      
        	
                SECTION
      11.01.

              	
                Guarantee

              	
                75

              
	
                SECTION
      11.02.

              	
                Obligations
      of Guarantor Unconditional

              	
                76

              
	
                SECTION
      11.03.

              	
                Notice
      to Trustee

              	
                76

              
	
                SECTION
      11.04.

              	
                This
      Article Not To Prevent Events of Default

              	
                76

              
	
                SECTION
      11.05.

              	
                Trustee’s
      Compensation Not Prejudiced

              	
                76

              
	
                SECTION
      11.06.

              	
                Payments
      May Be Paid Prior to Dissolution

              	
                77

              
	
                SECTION
      11.07.

              	
                Release
      of Guarantee

              	
                77

              

      

      

      ARTICLE
TWELVWE

      

      SECURITY

      

      
        	
                SECTION
      12.01.

              	
                Security

              	
                77

              
	
                SECTION
      12.02.

              	
                [Reserved]

              	
                77

              
	
                SECTION
      12.03.

              	
                Further
      Assurances

              	
                77

              
	
                SECTION
      12.04.

              	
                Recording
      and Opinions

              	
                78

              
	
                SECTION
      12.05.

              	
                Release
      and Disposition of Collateral

              	
                78

              
	
                SECTION
      12.06.

              	
                Disposition
      of Collateral Without Release

              	
                79

              
	
                SECTION
      12.07.

              	
                Enforcement
      of Claims Against Collateral

              	
                79

              
	
                SECTION
      12.08.

              	
                Authorization
      of Actions To Be Taken by the Collateral Agent

              	
                79

              
	
                SECTION
      12.09.

              	
                General
      Partner Interest in FelCor LP

              	
                79

              
	
                SECTION
      12.10.

              	
                Appointment
      of Collateral Agent

              	
                79

              
	
                SECTION
      12.11.

              	
                Limitation
      on Liability

              	
                80

              
	
                SECTION
      12.12.

              	
                Equal
      and Ratable Lien Sharing by Holders of Notes and Holders of Additional
      Pari Passu Indebtedness; Intercreditor Agreement

              	
                80

              

      

       

      iv

      

      

      
         

        
           

          
            

          

        

        
           

        

      

      INDENTURE,
dated as of October 1, 2009, between FelCor Escrow Holdings, L.L.C., a Delaware
limited liability company (“Escrow Subsidiary”) and U.S.
Bank National Association, a national banking association, as trustee (the
“Trustee”) and as
collateral agent (“Collateral
Agent”).  For purposes of this Indenture, prior to the
Assumption (as defined herein), references to FelCor LP, FelCor and the
Guarantors, individually or collectively shall be deemed to refer to Escrow
Subsidiary (unless the context otherwise requires).  From and after
the Assumption, references to FelCor LP, FelCor and the Guarantors, individually
or collectively shall be deemed to be references to such entities.

       

      RECITALS
OF COMPANY

       

      Escrow
Subsidiary has duly authorized the execution and delivery of this Indenture to
provide for the issuance initially of up to $636,000,000 aggregate principal
amount at maturity of Escrow Subsidiary’s 10% Senior Secured Notes Due 2014
issuable as provided in this Indenture.  All things necessary to make
this Indenture a valid agreement of Escrow Subsidiary in accordance with its
terms have been done, and Escrow Subsidiary has done all things necessary to
make the Notes, when executed by Escrow Subsidiary and authenticated and
delivered by the Trustee hereunder and duly issued by Escrow Subsidiary, the
valid obligations of Escrow Subsidiary as hereinafter provided.

       

      This
Indenture is subject to, and shall be governed by, the provisions of the Trust
Indenture Act of 1939, as amended, that are required to be a part of and to
govern indentures qualified under the Trust Indenture Act of 1939, as
amended.

       

      AND THIS
INDENTURE FURTHER WITNESSETH

       

      For and
in consideration of the premises and the purchase of the Notes by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate
benefit of all Holders, as follows:

       

      ARTICLE
ONE

       

      DEFINITIONS
AND INCORPORATION BY REFERENCE

       

      SECTION
1.01.                                Definitions.

       

      “Acceptable Event of Loss
Commitment” has the meaning provided in Section 4.12.

       

      “Acquired Indebtedness” means
Indebtedness of a Person existing at the time such Person becomes a Restricted
Subsidiary or assumed in connection with an Asset Acquisition from such Person
by a Restricted Subsidiary and not Incurred by such Person in connection with,
or in anticipation of, such Person becoming a Restricted Subsidiary or such
Asset Acquisition; provided that Indebtedness of
such Person that is redeemed, defeased, retired or otherwise repaid at the time
of or immediately upon consummation of the transactions by which such Person
becomes a Restricted Subsidiary or such Asset Acquisition shall not be Acquired
Indebtedness.

       

      “Additional Interest” means
all additional interest owing on the Notes pursuant to the Registration Rights
Agreement.

       

      “Additional Lien” has the
meaning provided in Section 4.09.

       

      “Additional Pari Passu
Collateral” has the meaning provided for it under the term “Additional
Pari Passu Indebtedness.”

       

      “Additional Pari Passu
Indebtedness” means any Indebtedness Incurred by FelCor LP, FelCor
or any Subsidiary Guarantor so long as (i) such Indebtedness, together with the
Notes, is secured equally and ratably on a first priority basis by additional
owned or leased real property and related operating assets (“Additional Pari Passu
Collateral”) which have an appraisal value (as determined by the report
or analysis of an independent appraiser selected by or reasonably satisfactory
to the Trustee and delivered to the Trustee and the Collateral Agent) of not
less than

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      (x) 120%
of the aggregate principal amount of such Indebtedness if so Incurred prior to
the second anniversary of the Closing Date and (y) 150% of the aggregate
principal amount of such Indebtedness if so Incurred on or after the second
anniversary of the Closing Date, (ii) the holders of such Indebtedness enter
into an intercreditor agreement with respect to such Additional Pari Passu
Collateral and the Collateral on terms reasonably satisfactory to the Collateral
Agent and (iii) such Indebtedness is otherwise permitted to be incurred under
Section 4.03(d)(vii).

       

      “Additional Restricted Assets”
means the assets and properties (including the related operating assets) of each
Grantor/Guarantor relating to the following hotels: (i) the Embassy Suites San
Francisco Airport – Burlingame; (ii) the Holiday Inn Boston at Beacon Hill;
(iii) the Holiday Inn San Diego – on the Bay; (iv) Holiday Inn San Francisco –
Fisherman’s Wharf; and (v) Replacement Collateral or After-Acquired Property, if
applicable.

       

      “Adjusted Consolidated Net
Income” means, for any period, the aggregate net income (or loss) of
FelCor, FelCor LP and their respective Restricted Subsidiaries for such
period determined on a consolidated basis in conformity with GAAP (without
taking into account Unrestricted Subsidiaries) plus the minority interest in
FelCor LP, if applicable; provided that the following
items shall be excluded in computing Adjusted Consolidated Net Income, without
duplication:

       

                      (i)the net income (or loss) of any
Person, other than FelCor LP, FelCor or a Restricted Subsidiary, except to
the extent of the amount of dividends or other distributions actually paid to
FelCor LP, FelCor or any of their respective Restricted Subsidiaries by
such Person during such period;

       

                      (ii)the net income (or loss) of any
Restricted Subsidiary to the extent that the declaration or payment of dividends
or similar distributions by such Restricted Subsidiary of such net income is not
at the time permitted by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to such Restricted Subsidiary;

       

                      (iii)any after-tax gains or losses
attributable to Asset Sales;

       

                      (iv)any after-tax gains or losses from
the extinguishment of debt including gains and losses from the termination of
interest rate hedge transactions;

       

                      (v)for so long as the Notes are not
rated Investment Grade, any amount paid or accrued as dividends on Preferred
Stock of FelCor LP, FelCor or any Restricted Subsidiary owned by Persons
other than FelCor or FelCor LP and any of their respective Restricted
Subsidiaries;

       

                      (vi)all extraordinary gains and
extraordinary losses including, without limitation, gains and losses from any
Casualty;

       

                      (vii)any gain or loss realized as a result
of the cumulative effect of a change in accounting principles;

       

                      (viii)any non-cash goodwill or intangible
asset impairment charges resulting from the application of Statement of
Financial Accounting Standards Nos. 141, 141R or 142, as applicable, and
non-cash charges relating to the amortization of intangibles resulting from the
application of Statement of Financial Accounting Standards Nos. 141 or 141R, as
applicable; and

       

                      (ix)all non-cash expenses related to
stock-based compensation plans or other non-cash compensation, including stock
option non-cash expenses.

       

      “Adjusted Consolidated Net Tangible
Assets” means the total amount of assets of FelCor LP, FelCor and
their respective Restricted Subsidiaries (less applicable depreciation,
amortization and other valuation reserves), except to the extent resulting from
write ups of capital assets (excluding write ups in connection with accounting
for acquisitions in conformity with GAAP), after deducting from the total amount
of assets:

       

      
         

        
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                      (i)all current liabilities of
FelCor LP, FelCor and their respective Restricted Subsidiaries, excluding
intercompany items, and

       

                      (ii)all goodwill, trade names,
trademarks, patents, unamortized debt discount and expense and other like
intangibles, all as set forth on the most recent quarterly or annual
consolidated balance sheet of FelCor LP or FelCor and their respective
Restricted Subsidiaries, prepared in conformity with GAAP and filed with the
Commission or provided to the Trustee pursuant to Section 4.19.

       

      “Adjusted Total Assets” means,
for any Person, the sum of :

       

                      (i)Total Assets for such Person as of
the end of the calendar quarter preceding the Transaction Date as set forth on
the most recent quarterly or annual consolidated balance sheet of FelCor LP
or FelCor and their respective Restricted Subsidiaries, prepared in conformity
with GAAP and filed with the Commission or provided to the Trustee pursuant to
Section 4.19, and

       

                      (ii)any increase in Total Assets
following the end of such quarter including, without limitation, any increase in
Total Assets resulting from the application of the proceeds of any additional
Indebtedness.

       

      “Adjusted Treasury Rate”
means, with respect to any Redemption Date, (i) the yield, under the heading
which represents the average for the immediately preceding week, appearing in
the most recently published statistical release designated “H.15(519)” or any
successor publication which is published weekly by the Board of Governors of the
Federal Reserve System and which establishes yields on actively traded United
States Treasury securities adjusted to constant maturity under the caption
“Treasury Constant Maturities” for the maturity corresponding to the Comparable
Treasury Issue with respect to the Notes called for redemption (if no maturity
is within three months before or after October 1, 2014, yields for the two
published maturities most closely corresponding to the Comparable Treasury Issue
shall be determined and the Adjusted Treasury Rate shall be interpolated or
extrapolated from such yields on a straight line basis, rounding to the nearest
month) or (ii) if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain such yields,
the rate per year equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such Redemption Date, in each case
calculated on the third business day immediately preceding the Redemption Date,
plus, in the case of each of clause (i) and (ii), 0.50%.

       

      “Affiliate” means, as applied
to any Person, any other Person directly or indirectly controlling, controlled
by, or under direct or indirect common control with, such Person.  For
purposes of this definition, “control” (including, with
correlative meanings, the terms “controlling,” “controlled by” and “under common control with”),
as applied to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities, by contract or
otherwise.

       

      “After-Acquired Property” has
the meaning provided in Section 4.24.

       

      “Agent” means any Registrar,
Paying Agent, authenticating agent or co-Registrar.

       

      “Agent Members” has the
meaning provided in Section 2.07(a).

       

      “Applicable Premium” means, at
any Redemption Date, the excess of (A) the present value at such Redemption Date
of (1) the Redemption Price of the Notes on October 1, 2014 plus (2) all
required remaining scheduled interest payments due on the Notes through October
1, 2014 (excluding accrued and unpaid interest), computed using a discount rate
equal to the Adjusted Treasury Rate, over (B) the principal amount of the Notes
on such Redemption Date.

       

      
        
           

        

        
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      “Asset Acquisition”
means:

       

                      (i)an investment by FelCor LP or
FelCor or any of their respective Restricted Subsidiaries in any other Person
pursuant to which such Person shall become a Restricted Subsidiary or shall be
merged into or consolidated with FelCor LP or FelCor or any of their
respective Restricted Subsidiaries; provided that such Person’s
primary business is related, ancillary, incidental or complementary to the
businesses of FelCor LP or FelCor or any of their respective Restricted
Subsidiaries on the date of such investment; or

       

                      (ii)an acquisition by FelCor LP or
FelCor or any of their respective Restricted Subsidiaries from any other Person
that constitutes substantially all of a division or line of business, or one or
more hotel properties, of such Person; provided that the property
and assets acquired are related, ancillary, incidental or complementary to the
businesses of FelCor LP or FelCor or any of their respective Restricted
Subsidiaries on the date of such acquisition.

       

      “Asset Disposition” means the
sale or other disposition by FelCor LP or FelCor or any of their respective
Restricted Subsidiaries, other than to FelCor LP, FelCor or another
Restricted Subsidiary, of:

       

                      (i)all or substantially all of the
Capital Stock of any Restricted Subsidiary, or

       

                      (ii)all or substantially all of the
assets that constitute a division or line of business, or one or more hotel
properties, of FelCor LP or FelCor or any of their respective Restricted
Subsidiaries.

       

      “Asset Sale” means a
Collateral Asset Sale or a Non-Collateral Asset Sale, as the case may
be.

       

      “Assumption” means
consummation of transactions contemplated under Section 3 of the Escrow
Agreement for purposes of releasing the Escrow Property (as defined therein) as
contemplated thereby and including the assumption by FelCor LP of Escrow
Subsidiary’s obligations under the Notes and this Indenture.

       

      “Average Life” means at any
date of determination with respect to any debt security, the quotient obtained
by dividing:

       

                      (i)the sum of the products
of:

       

      (a)           the
number of years from such date of determination to the dates of each successive
scheduled principal payment of such debt security, and

       

      (b)           the
amount of such principal payment; by

       

                      (ii)the sum of all such principal
payments.

       

      “Board of Directors” means (i)
with respect to FelCor, the Board of Directors of FelCor, (ii) with respect to
FelCor LP, the Board of Directors of its general partner, (iii) with
respect to the Subsidiary Guarantors, the board of directors of its general
partner or manager, as the case may be, or, in each case, any committee of such
Board of Directors duly authorized to act under this Indenture, and (iv) with
respect to any other Person, the board or committee serving a similar
function.

       

       “Board Resolution” means a
copy of a resolution, certified by the Secretary of such Person to have been
duly adopted by the Board of Directors and to be in full force and effect on the
date of such certification, and delivered to the Trustee.

       

      “Business Day” means any day
except a Saturday, Sunday or other day on which commercial banks in The City of
New York, or in the city of the Corporate Trust Office of the Trustee, are
authorized by law to close.

       

      
        
           

        

        
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      “Capital Stock” means, with
respect to any Person, any and all shares, interests, participation or other
equivalents (however designated, whether voting or non-voting), including
partnership interests, whether general or limited, in the equity of such Person,
whether outstanding on the Closing Date or issued thereafter, including, without
limitation, all Common Stock, Preferred Stock and Units.

       

      “Capitalized Lease” means, as
applied to any Person, any lease of any property, whether real, personal or
mixed, of which the discounted present value of the rental obligations of such
Person as lessee, in conformity with GAAP, is required to be capitalized on the
balance sheet of such Person.

       

      “Capitalized Lease
Obligations” means the discounted present value of the rental obligations
under a Capitalized Lease as reflected on the balance sheet of such Person in
accordance with GAAP.

       

      “Casualty” means any casualty,
loss, damage, destruction or other similar loss with respect to real or personal
property or improvements.

       

      “Change of Control” means such
time as:

       

                      (i)a “person” or “group” (as such terms
are defined in Sections 13(d) and 14(d)(2) of the Exchange Act) becomes the
ultimate “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of
more than 35% of the total voting power of the Voting Stock of FelCor or, other
than by FelCor, of FelCor LP on a fully diluted basis; or

       

                      (ii)individuals who on the Closing Date
constitute the Board of Directors (together with any new or replacement
directors whose election by the Board of Directors or whose nomination by the
Board of Directors for election by FelCor’s shareholders was approved by a vote
of at least a majority of the members of the Board of Directors then still in
office who either were members of the Board of Directors on the Closing Date or
whose election or nomination for election was so approved) cease for any reason
to constitute a majority of the members of the Board of Directors then in
office.

       

      “Change of Control Offer” has
the meaning provided in Section 4.13.

       

      “Change of Control Payment”
has the meaning provided in Section 4.13.

       

      “Change of Control Payment
Date” has the meaning provided in Section 4.13.

       

      “Closing Date” means October
1, 2009.

       

      “Collateral” means any
property, assets, proceeds or other items that may be pledged as security for
the Notes (including, without limitation, any Additional Pari Passu Collateral,
Pledged Collateral, Mortgaged Property, Replacement Collateral and
After-Acquired Property), whether pursuant to Sections 4.09, 4.10, 4.12, 4.23,
4.24, Article Twelve or otherwise; provided that Collateral shall exclude any
securities to be excluded from the Collateral pursuant to the Pledge
Agreement.

       

      “Collateral Agent” has the
meaning provided in Section 12.10.

       

      “Collateral Asset Sale” means
the sale, conveyance, transfer or other disposition, whether in a single
transaction or a series of related transactions, of Collateral or Additional
Restricted Assets.

       

      “Collateral Asset Sale Offer Payment
Date” has the meaning provided in Section 4.10.

       

      “Collateral Asset Sale
Payment” has the meaning provided in Section 4.10.

       

      “Collateral Documents” means,
collectively, one or more Deeds of Trust, the Pledge Agreement, mortgages,
intercreditor agreements, if any, and any other security agreement, pledge
agreement, financing statement or other document applicable to the Collateral,
each as amended from time to time, and any other instruments of assignment or
other instruments or agreements executed pursuant to the foregoing.

       

      
        
           

        

        
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      “Collateral Excess Proceeds”
has the meaning provided in Section 4.10.

       

      “Collateral Hotel EBITDA”
means Consolidated EBITDA derived solely from the Restricted
Hotels.

       

      “Collateral Hotel Interest Coverage
Ratio” means, on any date a certificate is required to be delivered to
the Trustee pursuant to Section 4.19 (a “Report Date”), the ratio
of:

       

      (1)           the
aggregate amount of Collateral Hotel EBITDA for the then most recent four fiscal
quarters prior to such Report Date for which reports have been filed with the
Commission or provided to the Trustee pursuant to Section 4.19 (a “Four Quarter Period”);
to

       

      (2)           the
aggregate Collateral Hotel Interest Expense during such Four Quarter
Period.

       

      In making
the foregoing calculation, the following, to the extent they apply to any
Restricted Hotel, shall be taken into account:

       

      (1)           pro forma effect shall be
given to any Indebtedness Incurred or repaid (other than in connection with an
Asset Acquisition or Asset Disposition) during the period (“Reference Period”) commencing
on the first day of the Four Quarter Period and ending on the Report Date (other
than Indebtedness Incurred or repaid under a revolving credit or similar
arrangement to the extent of the commitment thereunder (or under any predecessor
revolving credit or similar arrangement) in effect on the last day of such Four
Quarter Period unless any portion of such Indebtedness is projected, in the
reasonable judgment of the senior management of FelCor LP or FelCor (as
evidenced by an Officers’ Certificate), to remain outstanding for a period in
excess of 12 months from the date of the Incurrence thereof), in each case as if
such Indebtedness had been Incurred or repaid on the first day of such Reference
Period; and

       

      (2)           Collateral
Hotel Interest Expense attributable to interest on any Indebtedness (whether
existing or being Incurred) computed on a pro forma basis and bearing a
floating interest rate shall be computed as if the rate in effect on the Report
Date (taking into account any Interest Rate Agreement applicable to such
Indebtedness if such Interest Rate Agreement has a remaining term in excess of
12 months or, if shorter, at least equal to the remaining term of such
Indebtedness) had been the applicable rate for the entire period;

       

      “Collateral Hotel Interest
Expense” means Consolidated Interest Expense derived solely from the
Restricted Hotels.

       

      “Commission” means the
Securities and Exchange Commission, as from time to time constituted, created
under the Exchange Act or, if at any time after the execution of this Indenture
such Commission is not existing and performing the duties now assigned to it
under the TIA, then the body performing such duties at such time.

       

      “Common Stock” means, with
respect to any Person, any and all shares, interests, participations or other
equivalents (however designated, whether voting or non-voting) that have no
preference on liquidation or with respect to distributions over any other class
of Capital Stock, including partnership interests, whether general or limited,
of such Person’s equity, whether outstanding on the Closing Date or issued
thereafter, including, without limitation, all series and classes of common
stock.

       

      “Company Order” means a
written request or order signed in the name of a Person (i) by its Chairman, a
Vice Chairman, its President, a Vice President, manager or similar officer of
its general partner and (ii) by its Treasurer, an Assistant Treasurer, its
Secretary or an Assistant Secretary, manager or similar officer of its general
partner and delivered to the Trustee; provided, however, that such written
request or order may be signed by any two of the officers or directors listed in
clause (i) above in lieu of being signed by one of such officers or directors
listed in such clause (i) and one of the officers listed in clause (ii)
above.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      “Comparable Treasury Issue”
means the United States Treasury security selected by the Quotation Agent as
having a maturity comparable to the remaining term from the Redemption Date to
October 1, 2014, that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of corporate
debt securities of a maturity most nearly equal to October 1, 2014.

       

      “Comparable Treasury Price”
means, with respect to any Redemption Date, if clause (ii) of the Adjusted
Treasury Rate is applicable, the average of three, or such lesser number as is
obtained by the applicable trustee, Reference Treasury Dealer Quotations for the
Redemption Date.

       

      “Condemnation” means any
temporary or permanent taking by a Governmental Authority of assets or property,
or any part thereof or interest therein, for public or quasi-public use as the
result of or in lieu or anticipation of the exercise of the right of
condemnation under the power of eminent domain or in any other
manner.

       

      “Consolidated EBITDA” means,
for any period, without duplication, Adjusted Consolidated Net Income for such
period plus, to the
extent such amount was deducted in calculating such Adjusted Consolidated Net
Income:

       

                      (i)Consolidated Interest Expense, and to
the extent not reflected in Consolidated Interest Expense but otherwise deducted
in calculating Adjusted Consolidated Net Income, (1) amortization of original
issue discount with respect to (x) the Notes and (y) the other Indebtedness
Incurred after the Closing Date and (2) the interest portion of any deferred
payment obligation, calculated in accordance with GAAP,

       

                      (ii)income taxes (other than income taxes
(either positive or negative) attributable to extraordinary and non-recurring
gains or losses or sales of assets),

       

                      (iii)depreciation expense,

       

                      (iv)amortization expense,
and

       

                      (v)all other non-cash items reducing
Adjusted Consolidated Net Income (other than items that will require cash
payments and for which an accrual or reserve is, or is required by GAAP to be,
made),

       

      less all non-cash items
increasing Adjusted Consolidated Net Income, all as determined on a consolidated
basis for FelCor LP, FelCor and their respective Restricted Subsidiaries in
conformity with GAAP; provided that, if any
Restricted Subsidiary is not a Wholly Owned Restricted Subsidiary, Consolidated
EBITDA shall be reduced (to the extent not otherwise reduced in accordance with
GAAP) by an amount equal to:

       

      (a)           the
amount of the Adjusted Consolidated Net Income attributable to such Restricted
Subsidiary multiplied
by

       

      (b)           the
percentage ownership interest in the income of such Restricted Subsidiary not
owned on the last day of such period by FelCor LP or FelCor or any of their
respective Restricted Subsidiaries.

       

      “Consolidated Interest
Expense” means, for any period, without duplication, the aggregate amount
of interest expense in respect of Indebtedness during such period, all as
determined on a consolidated basis (without taking into account Unrestricted
Subsidiaries) in conformity with GAAP, including, without
limitation:

       

      (a)           for
all purposes other than for Section 4.04, (i) the amount of any original issue
discount with respect to Indebtedness Incurred after the Closing Date that
reflects the excess, if any, of the original issue discount with respect to such
Indebtedness over the then-unamortized original issue discount of the Notes and
(ii) the interest portion of any deferred payment obligation not Incurred in the
ordinary course of business, calculated in accordance with GAAP;

       

      (b)           solely
for the purposes of Section 4.04, (i) amortization of original issue discount
with respect to (x) the Notes and (y) any other Indebtedness Incurred after the
Closing Date and (ii) the interest portion of any deferred payment obligation,
calculated in accordance with GAAP;

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

       

      (c)           all
commissions, discounts and other fees and expenses owed with respect to letters
of credit and bankers’ acceptance financing;

       

      (d)           the
net costs associated with Interest Rate Agreements and Indebtedness that is
Guaranteed or secured by assets of FelCor LP, FelCor or any of their
respective Restricted Subsidiaries; and

       

      (e)           all
but the principal component of rentals in respect of Capitalized Lease
Obligations paid, accrued or scheduled to be paid or to be accrued by
FelCor LP, FelCor and their respective Restricted
Subsidiaries;

       

      excluding (i) the amount of
such interest expense of any Restricted Subsidiary if the net income of such
Restricted Subsidiary is excluded in the calculation of Adjusted Consolidated
Net Income pursuant to clause (ii) of the definition thereof (but only in the
same proportion as the net income of such Restricted Subsidiary is excluded from
the calculation of Adjusted Consolidated Net Income pursuant to clause (ii) of
the definition thereof), (ii) any premiums, fees and expenses (and any
amortization thereof) paid in connection with the Incurrence of any
Indebtedness, all as determined on a consolidated basis (without taking into
account Unrestricted Subsidiaries) in conformity with GAAP, and (iii) any
non-cash interest expense arising from the application of Statement of Financial
Accounting Standards No. 133 or the adoption of FASB Staff Position No. APB
14-1.

       

      “Corporate Trust Office” means
the office of the Trustee at which the corporate trust business of the Trustee
shall, at any particular time, be principally administered, which office is, at
the date of this Indenture, located at 60 Livingston Avenue, EP-MN-WS3C, St.
Paul, Minnesota 55107-2292, Attention: Corporate Trust
Administration.

       

      “Currency Agreement” means any
foreign exchange contract, currency swap agreement or other similar agreement or
arrangement.

       

      “Deeds of Trust” “Deeds of
Trust” means, individually or collectively as the context may require, one or
more first priority (subject to Permitted Collateral Encumbrances) mortgages,
deeds of trust, trust deeds, deeds to secure indebtedness, debenture, financing
statement or other similar document entered into or authorized to be filed by
the owner or leaseholder and applicable Operating Lessee of each Mortgaged
Property, After-Acquired Property or Replacement Collateral, as applicable,
encumbering each such owner’s or leaseholder’s fee or leasehold interest, as
applicable, in the Mortgaged Property, After-Acquired Property or Replacement
Collateral, as applicable, the Operating Lessee’s interest in the Operating
Lease in respect of such Mortgaged Property, After-Acquired Property or
Replacement Collateral, as applicable, collectively with all additions,
improvements, component parts and personal property related thereto and all
rents and profits therefrom, each securing the Secured Obligations, in favor of
the Collateral Agent for the benefit of the Secured Parties, as the same may be
amended, supplemented or otherwise modified from time to time.

       

      “Default” means any event that
is, or after notice or passage of time or both would be, an Event of
Default.

       

      “Depositary” means The
Depository Trust Company, its nominees and their respective
successors.

       

      “Disqualified Stock” means any
class or series of Capital Stock of any Person that by its terms or otherwise
is:

                      (i)required to be redeemed prior to the
Stated Maturity of the Notes,

       

                      (ii)redeemable at the option of the
holder of such class or series of Capital Stock, other than Units, at any time
prior to the Stated Maturity of the Notes, or

       

                      (iii)convertible into or exchangeable for
Capital Stock referred to in clause (i) or (ii) above or Indebtedness having a
scheduled maturity prior to the Stated Maturity of the Notes;

       

      provided that any Capital
Stock that would not constitute Disqualified Stock but for provisions thereof
giving holders thereof the right to require such Person to repurchase or redeem
such Capital Stock upon the occurrence of an “asset sale” or “change of control”
occurring prior to the Stated Maturity of the Notes shall not constitute
Disqualified Stock if the “asset sale” or “change of control” provisions
applicable to such Capital Stock are no more

       

      
         

        
          8

          
            

          

        

        
           

        

      

      

       

      favorable
to the holders of such Capital Stock than the provisions contained in Sections
4.10, 4.11 and 4.13, as applicable and such Capital Stock specifically provides
that such Person will not repurchase or redeem any such stock pursuant to such
provisions prior to FelCor LP’s repurchase of such Notes as are required to
be repurchased pursuant to Sections 4.11 and 4.13.

       

      “Equity Offering” means a
public or private offering of Capital Stock (other than Disqualified Stock) of
FelCor or FelCor LP; provided that the proceeds
received by FelCor or FelCor LP directly or indirectly from such offering
are not less than $50 million.

       

      “Escrow Agent” means the
escrow agent from time to time under the Escrow Agreement.

       

      “Escrow Agreement” means that
certain Escrow and Security Agreement dated as of October 1, 2009 among Escrow
Subsidiary, FelCor LP, FelCor and U.S. Bank National Association as Escrow
Agent and Trustee.

       

      “Escrow Property” has the
meaning provided in the Escrow Agreement.

       

      “Escrow Subsidiary” has the
meaning provided in the preamble and includes its successors and
assigns.

       

      “Event of Default” has the
meaning provided in Section 6.01.

       

      “Event of Loss” means, with
respect to any Collateral or Additional Restricted Asset (each an “Event of Loss Asset”) having
a fair market value in excess of $15 million, any (1) Casualty of such Event of
Loss Asset, (2) Condemnation or seizure of such Event of Loss Asset (other
than pursuant to foreclosure or confiscation or requisition of the use of such
Event of Loss Asset) or (3) settlement in lieu of clause (2) above; provided that an “Event of
Loss” shall not include any of the foregoing if the Net Loss Proceeds therefrom
are not in excess of $3 million in any occurrence or series of related
occurrences.

       

      “Event of Loss Asset” has the
meaning provided for it under the term “Event of Loss.”

       

      “Excess Net Loss Proceeds” has
the meaning provided in Section 4.12.

       

      “Exchange Act” means the
Securities Exchange Act of 1934, as amended.

       

      “Exchange Notes” means any
securities of FelCor LP containing terms identical to the Notes (except
that such Exchange Notes shall be registered under the Securities Act) that are
issued and exchanged for such Notes pursuant to the Registration Rights
Agreement (or, with respect to Notes issued after the Closing Date, pursuant to
a registration rights agreement with substantially the same terms and conditions
as the Registration Rights Agreement) and this Indenture.

       

      “Existing Senior Notes” means
FelCor LP’s outstanding 81⁄2% senior notes due 2011 and senior secured
floating rate notes due 2011.

       

      “fair market value” means the
price that would be paid in an arm’s-length transaction between an informed and
willing seller under no compulsion to sell and an informed and willing buyer
under no compulsion to buy, as determined in good faith by the Board of
Directors, whose determination shall be conclusive if evidenced by a Board
Resolution.

       

      “FelCor Holdings Trust” means
FelCor Holdings Trust, a Massachusetts business trust, and its successors and
assigns.

       

      “FelCor LP” means FelCor
Lodging Limited Partnership, a Delaware limited partnership and its successors
and assigns.

       

      “FelCor” means FelCor Lodging
Trust Incorporated, a Maryland corporation and its successors and
assigns.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

       

      “Four Quarter Period” has the
meaning provided for it under the term “Collateral Hotel Interest Coverage
Ratio.”

       

      “Funds From Operations” for
any period means the consolidated net income of FelCor LP, FelCor and their
respective Restricted Subsidiaries for such period in conformity with GAAP
(without taking into account Unrestricted Subsidiaries) excluding gains or
losses from debt restructurings and sales of depreciable operating property,
plus depreciation of real property (including furniture and equipment) and
amortization related to real property and other non-cash charges related to real
property, after adjustments for unconsolidated partnerships and joint ventures
plus the minority interest in FelCor LP, if applicable.

       

      “GAAP” means generally
accepted accounting principles in the United States of America as in effect as
of July 1, 2009, including, without limitation, as set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
approved by a significant segment of the accounting profession.  All
ratios and computations contained or referred to in this Indenture shall be
computed in conformity with GAAP applied on a consistent basis, except that
calculations made for purposes of determining compliance with the terms of the
covenants and with other provisions of this Indenture shall be made without
giving effect to:

       

                      (i)the amortization of any expenses
incurred in connection with the offering of the Notes, and

       

                      (ii)except as otherwise provided, the
amortization of any amounts required or permitted by Accounting Principles Board
Opinions Nos. 16 and 17.

       

      “Global Notes” has the meaning
provided in Section 2.01.

       

      “Government Securities” means
direct obligations of, obligations guaranteed by, or participations in pools
consisting solely of obligations of or obligations guaranteed by, the United
States of America for the payment of which obligations or guarantee the full
faith and credit of the United States of America is pledged and that are not
callable or redeemable at the option of the issuer thereof.

       

       “Ground Leases” means,
individually or collectively as the context may require, those certain ground
leases as set forth on Schedule 9 of the Perfection Certificate, as the same may
be amended, restated, supplemented, or otherwise modified from time to
time.

       

       “Grantors” means, from and
after the date of the Assumption, each of FelCor Lodging Limited Partnership,
FelCor Hotel Asset Company, L.L.C., FelCor TRS Borrower 1, L.P., FelCor Lodging
Holding Company, L.L.C., FelCor TRS Borrower 4, L.L.C., FelCor/CSS Holdings,
L.P., FelCor Canada Co., DJONT Operations, L.L.C., DJONT Leasing, L.L.C., FCH/SH
Leasing, L.L.C., FelCor TRS Holdings, L.L.C., FelCor TRS 1, L.P., BHR
Operations, L.L.C., BHR Lodging Tenants Company and BHR Canada Tenant Company
and any other Subsidiaries which own or lease all or any portion of any
Mortgaged Property or is the Operating Lessee under any Operating Leases
relating thereto.

       

      “Guarantee” means any
obligation, contingent or otherwise, of any Person directly or indirectly
guaranteeing any Indebtedness of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or
otherwise, of such Person:

       

                      (i)to purchase or pay (or advance or
supply funds for the purchase or payment of) such Indebtedness of such other
Person (whether arising by virtue of partnership arrangements, or by agreements
to keep-well, to purchase assets, goods, securities or services (unless such
purchase arrangements are on arm’s-length terms and are entered into in the
ordinary course of business), to take-or-pay, or to maintain financial statement
conditions or otherwise), or

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      

                      (ii)entered into for purposes of assuring
in any other manner the obligee of such Indebtedness of the payment thereof or
to protect such obligee against loss in respect thereof (in whole or in
part);

       

      provided that the term
“Guarantee” shall not include (a) endorsements for collection or deposit in the
ordinary course of business or (b) a guarantee by FelCor LP or FelCor of
Indebtedness of a Subsidiary of FelCor LP that is recourse (except upon the
occurrence of certain events set forth in the instruments governing such
Indebtedness, including, without limitation, fraud, misapplication of funds or
other customary recourse provisions) solely to assets pledged to secure such
Indebtedness, for so long as such guarantee may not be enforced against
FelCor LP or FelCor by the holder of such Indebtedness (except upon the
occurrence of such an event), provided that upon the
occurrence of such an event, such guarantee shall be deemed to be the Incurrence
of a “Guarantee” and at the time of such Incurrence and during such period as
such guarantee may be enforced against FelCor LP or FelCor by the holder of
such Indebtedness with respect to such Incurrence, such guarantee shall be
deemed to be a “Guarantee” for all purposes under this Indenture.  The
term “Guarantee” used
as a verb has a corresponding meaning.

       

      “Guaranteed Indebtedness” has
the meaning provided in Section 4.07.

       

      “Guarantors” means, from and
after the date of the Assumption, FelCor and the Subsidiary Guarantors,
collectively.

       

      “Holder” or “Noteholder” means the
registered holder of any Note.

       

      “Incur” means, with respect to
any Indebtedness, to incur, create, issue, assume, Guarantee or otherwise become
liable for or with respect to, or become responsible for, the payment of,
contingently or otherwise, such Indebtedness, including an “Incurrence” of Acquired
Indebtedness; provided
that neither the accrual of interest nor the accretion of original issue
discount shall be considered an Incurrence of Indebtedness.

       

      “Indebtedness” means, with
respect to any Person at any date of determination (without
duplication):

       

                      (i)all indebtedness of such Person for
borrowed money;

       

                      (ii)all obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments;

       

                      (iii)the face amount of letters of credit
or other similar instruments (excluding obligations with respect to letters of
credit (including trade letters of credit) securing obligations (other than
obligations described in (i) or (ii) above or (v), (vi) or (vii) below) entered
into in the ordinary course of business of such Person to the extent such
letters of credit are not drawn upon or, if drawn upon, to the extent such
drawing is reimbursed no later than the third Business Day following receipt by
such Person of a demand for reimbursement);

       

                      (iv)all unconditional obligations of such
Person to pay the deferred and unpaid purchase price of property or services,
which purchase price is due more than six months after the date of placing such
property in service or taking delivery and title thereto or the completion of
such services, except Trade Payables;

       

                      (v)all Capitalized Lease
Obligations;

       

                      (vi)all Indebtedness of other Persons
secured by a Lien on any asset of such Person, whether or not such Indebtedness
is assumed by such Person; provided that the amount of
such Indebtedness shall be the lesser of (A) the fair market value of such asset
at that date of determination and (B) the amount of such
Indebtedness;

       

                      (vii)all Indebtedness of other Persons
Guaranteed by such Person to the extent such Indebtedness is Guaranteed by such
Person; and

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      

       

                      (viii)to the extent not otherwise included
in this definition or the definition of “Consolidated Interest Expense”,
obligations under Currency Agreements and Interest Rate Agreements.

       

      The
amount of Indebtedness of any Person at any date shall be the outstanding
balance at such date of all unconditional obligations of the type described
above and, with respect to obligations under any Guarantee, the maximum
liability upon the occurrence of the contingency giving rise to the obligation;
provided
that:

       

      (A)           the
amount outstanding at any time of any Indebtedness issued with original issue
discount shall be deemed to be the face amount with respect to such Indebtedness
less the remaining unamortized portion of the original issue discount of such
Indebtedness at the date of determination in conformity with GAAP,
and

       

      (B)           Indebtedness
shall not include any liability for federal, state, local or other
taxes.

       

      “Indenture” means this
Indenture as originally executed or as it may be amended or supplemented from
time to time by one or more indentures supplemental to this Indenture entered
into pursuant to the applicable provisions of this Indenture.

       

      “Institutional Accredited
Investor” means an institution that is an “accredited investor” as that
term is defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act.

       

      “Insurance Certificate” means,
individually or collectively as the context may require, a certificate
evidencing the insurance requirements (i) reasonably acceptable to the Trustee
and Collateral Agent that (A) provides that the insurance has been issued, is in
full force and effect, and conveys all the rights and privileges afforded under
the insurance policies, (B) provides an unequivocal obligation to give notice in
advance to additional interest parties of termination and (C) purports to convey
all the privileges of the insurance policies to the certificate holders and (ii)
otherwise complies with the requirements with respect thereto set forth in
Section 4.16 hereof.

       

      “Interest Coverage Ratio”
means, on any Transaction Date, the ratio of:

       

                      (i)the aggregate amount of Consolidated
EBITDA for the then most recent Four Quarter Period; to

       

                      (ii)the aggregate Consolidated Interest
Expense during such Four Quarter Period.

       

      In making
the foregoing calculation,

       

      (A)           pro forma effect shall be
given to any Indebtedness Incurred or repaid (other than in connection with an
Asset Acquisition or Asset Disposition) during the period (“Reference Period”) commencing
on the first day of the Four Quarter Period and ending on the Transaction Date
(other than Indebtedness Incurred or repaid under a revolving credit or similar
arrangement to the extent of the commitment thereunder (or under any predecessor
revolving credit or similar arrangement) in effect on the last day of such Four
Quarter Period unless any portion of such Indebtedness is projected, in the
reasonable judgment of the senior management of FelCor LP or FelCor (as
evidenced by an Officers’ Certificate), to remain outstanding for a period in
excess of 12 months from the date of the Incurrence thereof), in each case as if
such Indebtedness had been Incurred or repaid on the first day of such Reference
Period;

       

      (B)           Consolidated
Interest Expense attributable to interest on any Indebtedness (whether existing
or being Incurred) computed on a pro forma basis and bearing a
floating interest rate shall be computed as if the rate in effect on the
Transaction Date (taking into account any Interest Rate Agreement applicable to
such Indebtedness if such Interest Rate Agreement has a remaining term in excess
of 12 months or, if shorter, at least equal to the remaining term of such
Indebtedness) had been the applicable rate for the entire period;

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      

      (C)           pro forma effect shall be
given to Asset Dispositions and Asset Acquisitions (including giving pro forma effect to the
application of proceeds of any Asset Disposition and any Indebtedness Incurred
or repaid in connection with any such Asset Acquisitions or Asset Dispositions)
that occur during such Reference Period but subsequent to the end of the related
Four Quarter Period as if they had occurred and such proceeds had been applied
on the first day of such Reference Period; and

       

      (D)           pro forma effect shall be
given to asset dispositions and asset acquisitions (including giving pro forma effect to the
application of proceeds of any asset disposition and any Indebtedness Incurred
or repaid in connection with any such asset acquisitions or asset dispositions)
that have been made by any Person that has become a Restricted Subsidiary or has
been merged with or into FelCor LP or FelCor or any of their respective
Restricted Subsidiaries during such Reference Period but subsequent to the end
of the related Four Quarter Period and that would have constituted Asset
Dispositions or Asset Acquisitions during such Reference Period but subsequent
to the end of the related Four Quarter Period had such transactions occurred
when such Person was a Restricted Subsidiary as if such asset dispositions or
asset acquisitions were Asset Dispositions or Asset Acquisitions and had
occurred on the first day of such Reference Period; provided that to the extent
that clause (C) or (D) of this sentence requires that pro forma effect be given to
an Asset Acquisition or Asset Disposition, such pro forma calculation shall
be based upon the four full fiscal quarters immediately preceding the
Transaction Date of the Person, or division or line of business, or one or more
hotel properties, of the Person that is acquired or disposed of to the extent
that such financial information is available.

       

      “Interest Payment Date” means
each semiannual interest payment date on April 1 and October 1 of each year,
commencing April 1, 2010.

       

      “Interest Rate Agreement”
means any interest rate protection agreement, interest rate future agreement,
interest rate option agreement, interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedge agreement, option
or future contract or other similar agreement or arrangement with respect to
interest rates.

       

      “Investment” in any Person
means any direct or indirect advance, loan or other extension of credit
(including without limitation by way of Guarantee or similar arrangement, but
excluding advances to customers in the ordinary course of business that are, in
conformity with GAAP, recorded as accounts receivable on the consolidated
balance sheet of FelCor LP, FelCor and their respective Restricted
Subsidiaries, and residual liabilities with respect to assigned leaseholds
incurred in the ordinary course of business) or capital contribution to (by
means of any transfer of cash or other property (tangible or intangible) to
others or any payment for property or services solely for the account or use of
others, or otherwise), or any purchase or acquisition of Capital Stock, bonds,
notes, debentures or other similar instruments issued by, such Person and shall
include:

       

                      (i)the designation of a Restricted
Subsidiary as an Unrestricted Subsidiary; and

       

                      (ii)the fair market value of the Capital
Stock (or any other Investment), held by FelCor LP or FelCor or any of
their respective Restricted Subsidiaries of (or in) any Person that has ceased
to be a Restricted Subsidiary, including without limitation, by reason of any
transaction permitted by clause (iii) of Section 4.06;

       

      provided that the fair market
value of the Investment remaining in any Person that has ceased to be a
Restricted Subsidiary shall be deemed not to exceed the aggregate amount of
Investments previously made in such Person valued at the time such Investments
were made, less the net reduction of such Investments.  For purposes
of the definition of “Unrestricted Subsidiary” and Section 4.04:

       

                      (i)“Investment” shall include the fair
market value of the assets (net of liabilities (other than liabilities to
FelCor LP or FelCor or any of their respective Restricted Subsidiaries)) of
any Restricted Subsidiary at the time such Restricted Subsidiary is designated
an Unrestricted Subsidiary;

       

      
         

        
          13

          
            

          

        

        
           

        

      

      

                      (ii)the fair market value of the assets
(net of liabilities (other than liabilities to FelCor LP or FelCor or any
of their respective Restricted Subsidiaries)) of any Unrestricted Subsidiary at
the time that such Unrestricted Subsidiary is designated a Restricted Subsidiary
shall be considered a reduction in outstanding Investments; and

       

                      (iii)any property transferred to or from
an Unrestricted Subsidiary shall be valued at its fair market value at the time
of such transfer.

       

      “Investment Grade” means a
rating of the Notes by both S&P and Moody’s, each such rating being in one
of such agency’s four highest generic rating categories that signifies
investment grade (i.e.,
BBB- (or the equivalent) or higher by S&P and Baa3 (or the equivalent) or
higher by Moody’s); provided, in each case, such
ratings are publicly available; provided, further, that in the event
Moody’s or S&P is no longer in existence for purposes of determining whether
the Notes are rated “Investment Grade,” such organization may be replaced by a
nationally recognized statistical rating organization (as defined in Rule 436
under the Securities Act) designated by FelCor LP and FelCor, notice of
which shall be given to a Responsible Officer of the Trustee.

       

      “Lien” means any mortgage,
deed of trust, pledge, security interest, encumbrance, lien or charge of any
kind (including without limitation, any conditional sale or other title
retention agreement or, lease in the nature thereof).

       

      “Line of Credit” means one or
more debt facilities, commercial paper facilities or other debt instruments,
indentures or agreements providing for revolving credit loans, term loans,
receivables financing (including through the sale of receivables to such lenders
or to special purpose entities formed to borrow from such lenders against such
receivables), letters of credit or other debt obligations, in each case, as
amended, restated, modified, renewed, refunded, restructured, supplemented,
replaced or refinanced in whole or in part from time to time, including without
limitation any amendment increasing the amount of Indebtedness Incurred or
available to be borrowed thereunder, extending the maturity of any Indebtedness
Incurred thereunder or contemplated thereby or deleting, adding or substituting
one or more parties thereto (whether or not such added or substituted parties
are banks or other institutional lenders).

       

      “Loss Proceeds Offer” has the
meaning provided in Section 4.12.

       

      “Loss Proceeds Offer Payment
Date” has the meaning provided in Section 4.12.

       

      “Management Agreements” means,
collectively, those certain management agreements as set forth on Schedule 10 of
the Perfection Certificate, as the same may be amended, restated, supplemented,
or otherwise modified from time to time.

       

      “Manager” means such Person,
in its capacity as manager under the applicable Management Agreement, together
with their successor and assign thereunder.

       

      “Material Agreement” has the
meaning ascribed to such term in Section 4.24.

       

      “Moody’s” means Moody’s
Investors Service, Inc. and its successors.

       

      “Mortgaged Property” means,
individually or collectively as the context may require, (i) those properties
listed on Schedule 5(a) of the Perfection Certificate which are designated to be
encumbered by a Deed of Trust and (ii) the real property that becomes subject
Collateral .

       

      “Net Cash Proceeds”
means:

       

      (a)           with
respect to any Asset Sale, the proceeds of such Asset Sale in the form of cash
or cash equivalents and, other than in the case of Collateral Asset Sales,
including payments in respect of deferred payment obligations (to the extent
corresponding to the principal, but not interest, component thereof) when
received in the form of cash or cash equivalents (except to the extent such
obligations are

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      

       

      financed
or sold with recourse to FelCor LP or FelCor or any of their respective
Restricted Subsidiaries) and proceeds from the conversion of other property
received when converted to cash or cash equivalents, net of:

       

                      (i)brokerage commissions and other fees
and expenses (including fees and expenses of counsel and investment bankers)
related to such Asset Sale,

       

                      (ii)provisions for all taxes actually
paid or payable as a result of such Asset Sale by FelCor LP, FelCor and
their respective Restricted Subsidiaries, taken as a whole,

       

                      (iii)payments made to repay Indebtedness
or any other obligation outstanding at the time of such Asset Sale (other than
in the case of any Collateral Asset Sale) that either (A) is secured by a Lien
on the property or assets sold or (B) is required to be paid as a result of such
sale, and

       

                      (iv)amounts reserved by FelCor LP,
FelCor and their respective Restricted Subsidiaries against any liabilities
associated with such Asset Sale, including without limitation, pension and other
post-employment benefit liabilities, liabilities related to environmental
matters and liabilities under any indemnification obligations associated with
such Asset Sale, all as determined on a consolidated basis in conformity with
GAAP; and

       

      (b)           with
respect to any issuance or sale of Capital Stock, the proceeds of such issuance
or sale in the form of cash or cash equivalents, and, other than in the case of
Collateral Asset Sales, including payments in respect of deferred payment
obligations (to the extent corresponding to the principal, but not interest,
component thereof) when received in the form of cash or cash equivalents (except
to the extent such obligations are financed or sold with recourse to
FelCor LP or FelCor or any of their respective Restricted Subsidiaries) and
proceeds from the conversion of other property received when converted to cash
or cash equivalents, net of attorney’s fees, accountants’ fees, underwriters’ or
placement agents’ fees, discounts or commissions and brokerage, consultant and
other fees incurred in connection with such issuance or sale and net of tax paid
or payable as a result thereof.

       

      “Net Loss Proceeds” means,
with respect to any Event of Loss, the proceeds in the form of (i) cash or
Temporary Cash Investments, (ii) insurance proceeds, (iii) all proceeds of any
Condemnation or (iv) damages awarded by any judgment, in each case received by
FelCor LP, FelCor or any of their Restricted Subsidiaries from such Event
of Loss, net of:

       

      (a)           reasonable
out-of-pocket expenses and fees relating to such Event of Loss (including
without limitation legal, accounting and appraisal or insurance adjuster fees);
and

       

      (b)           taxes
paid or payable after taking into account any reduction in consolidated tax
liability due to available tax credits or deductions and any tax sharing
arrangements.

       

      “Non-Collateral Asset Sale”
means any sale, transfer or other disposition, including by way of merger,
consolidation or sale-leaseback transaction, in one transaction or a series of
related transactions, by FelCor LP or FelCor or any of their Restricted
Subsidiaries to any Person other than FelCor LP or FelCor or any of their
respective Restricted Subsidiaries of any assets or properties other than
Collateral consisting of:

       

                      (i)all or any of the Capital Stock of
any Restricted Subsidiary other than (a) any such Capital Stock of any Grantor
that constitutes Collateral and (b) sales permitted under Section
4.06(iv);

       

                      (ii)all or substantially all of the
property and assets of an operating unit or business of FelCor LP or FelCor or
any of their respective Restricted Subsidiaries other than such property or
assets of any Grantor that constitute Collateral; or

       

                      (iii)any other property and assets of
FelCor LP or FelCor or any of their respective Restricted Subsidiaries
outside the ordinary course of business of FelCor LP or FelCor or such
Restricted Subsidiary

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      

       

      and, in
each case, that is not governed by the provisions of this Indenture (a)
applicable to Collateral and the Collateral Documents and (b) applicable to
mergers, consolidations and sales of assets of FelCor LP and
FelCor;

       

      provided that “Non-Collateral
Asset Sale” shall not include:

       

      (A)           sales
or other dispositions of inventory, receivables and other current
assets;

       

      (B)           sales,
transfers or other dispositions of assets with a fair market value not in excess
of $2.5 million in any transaction or series of related
transactions;

       

      (C)           sales
or other dispositions of assets for consideration at least equal to the fair
market value of the assets sold or disposed of, to the extent that the
consideration received would satisfy the requirements set forth in the second
bullet of clause (1) of the second paragraph of Section 4.11;

       

      (D)           the
sale or other disposition of cash or Cash Equivalents;

       

      (E)           dispositions
of accounts receivable in connection with the compromise, settlement or
collection thereof in the ordinary course of business;

       

      (F)           a
Restricted Payment that is permitted under Section 4.04; or

       

      (G)           the
creation of a Lien not prohibited by this Indenture and the sale of assets
received as a result of the foreclosure upon a Lien.

       

      “Non-Collateral Excess
Proceeds” has the meaning provided in Section 4.11.

       

      “Non-U.S. Person” means a
person who is not a U.S. person, as defined in Regulation S.

       

      “Note Guarantee” means, from
and after the date of the Assumption, a Guarantee by FelCor and the Subsidiary
Guarantors for payment of the Notes by such Person.  From and after
the date of the Assumption, the Note Guarantees will be senior secured
obligations or senior unsecured obligations of each such Person, as applicable,
and will be unconditional regardless of the enforceability of the Notes or this
Indenture.

       

      “Note Register” has the
meaning provided in Section 2.04.

       

      “Notes” means any of the
securities, as defined in the first paragraph of the recitals hereof, that are
authenticated and delivered under this Indenture.  For all purposes of
this Indenture, the term “Notes” shall include the Notes initially issued on the
Closing Date, any other Notes issued after the Closing Date under this Indenture
and any Exchange Notes.  For purposes of this Indenture, all Notes
shall vote together as one series of Notes under this Indenture.

       

      “Offer to Purchase” means an
offer to purchase Notes by FelCor LP, from the Holders commenced by mailing
a notice to the Trustee and each Holder stating:

       

      (i)           the
covenant pursuant to which the offer is being made and that all Notes validly
tendered will be accepted for payment on a pro rata basis;

       

      (ii)           the
purchase price and the date of purchase (which shall be a Business Day no
earlier than 15 days (20 Business Days in the case of a Collateral Asset Sale
Offer Payment Date or Loss Proceeds Offer Payment Date) nor later than 60 days
from the date such notice is mailed) (“Payment Date”);

       

      (iii)           that
any Note not tendered will continue to accrue interest pursuant to its
terms;

       

      
        
           

        

        
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      (iv)           that,
unless FelCor LP defaults in the payment of the purchase price, any Note
accepted for payment pursuant to the Offer to Purchase shall cease to accrue
interest on and after the Payment Date;

       

      (v)           that
Holders electing to have a Note purchased pursuant to the Offer to Purchase will
be required to surrender the Note, together with the form entitled “Option of
the Holder To Elect Purchase” on the reverse side of the Note completed, to the
Paying Agent at the address specified in the notice prior to the close of
business on the Business Day immediately preceding the Payment
Date;

       

      (vi)           that
Holders will be entitled to withdraw their election if the Payment Agent
receives, not later than the close of business on the third Business Day
immediately preceding the Payment Date, a facsimile transmission or letter
setting forth the name of such Holder, the principal amount of Notes delivered
for purchase and a statement that such Holder is withdrawing his election to
have such Notes purchased; and

       

      (vii)           that
Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered;
provided that each Note
purchased and each new Note issued shall be in a principal amount of $1,000 or
integral multiples thereof.

       

      On the
Payment Date, FelCor LP shall

       

      (a)           accept
for payment on a pro
rata basis Notes or portions thereof tendered pursuant to an Offer to
Purchase;

       

      (b)           deposit
with the Paying Agent money sufficient to pay the purchase price of all Notes or
portions thereof so accepted; and

       

      (c)           promptly
thereafter deliver, or cause to be delivered, to the Trustee all Notes or
portions thereof so accepted together with an Officers’ Certificate specifying
the Notes or portions thereof accepted for payment by
FelCor LP.

       

      The
Paying Agent shall promptly mail to the Holders of Notes so accepted payment in
an amount equal to the purchase price, and the Trustee shall promptly
authenticate and mail to such Holders a new Note equal in principal amount to
any unpurchased portion of any Note surrendered; provided that each Note
purchased and each new Note issued shall be in a principal amount of $1,000 or
integral multiples thereof.  FelCor LP shall publicly announce
the results of an Offer to Purchase as soon as practicable after the Payment
Date.  FelCor LP shall comply with Rule 14e 1 under the Exchange
Act and any other securities laws and regulations thereunder to the extent such
laws and regulations are applicable, in the event that FelCor LP is
required to repurchase Notes pursuant to an Offer to Purchase. To the extent
that the provisions of any securities laws or regulations conflict with the
provisions of this Indenture, FelCor LP and FelCor will comply with the
applicable securities laws and regulations and shall not be deemed to have
breached their obligations described in this Indenture by virtue
thereof.

       

      “Offering Memorandum” means
the final offering memorandum related to the offering of the Notes described in
the first paragraph of the Recitals hereof dated September 17,
2009.

       

      “Officer” means, with respect
to any Person, (i) the Chairman of the Board, the President, any Vice President,
the Chief Financial Officer, and (ii) the Treasurer or any Assistant Treasurer,
or the Secretary or any Assistant Secretary or Person holding a similar position
at the general partner or manager of such Person.

       

      “Officers’ Certificate” means
a certificate signed by one Officer listed in clause (i) of the definition
thereof and one Officer listed in clause (ii) of the definition
thereof.  Each Officers’ Certificate (other than certificates provided
pursuant to TIA Section 314(a)(4)) shall meet the requirements of Section
10.03.

       

      “Offshore Global Notes” has
the meaning provided in Section 2.01.

       

      “Offshore Notes Exchange Date”
has the meaning provided in Section 2.01.

       

      
        
           

        

        
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      “Offshore Physical Notes” has
the meaning provided in Section 2.01.

       

      “Opinion of Counsel” means a
written opinion signed by legal counsel who may be an employee of or counsel to
FelCor or FelCor LP.  Each such Opinion of Counsel shall meet the
requirements of Section 10.03.

       

       “Paying Agent” has the meaning
provided in Section 2.04, except that, for the purposes of Article Eight, the
Paying Agent shall not be FelCor LP, a Subsidiary of FelCor LP, any
Guarantor or an Affiliate of any of them.  The term “Paying Agent”
includes any additional Paying Agent.

       

      “Payment Date” has the meaning
provided to it under the term “Offer to Purchase.”

       

      “Perfection Certificate” means
the perfection certificate dated October 1, 2009, delivered to the Collateral
Agent.

       

      “Permanent Offshore Global
Notes” has the meaning provided in Section 2.01.

       

      “Permitted Investment”
means:

       

                      (i)an Investment in FelCor LP or
FelCor or any of their Restricted Subsidiaries or a Person which will, upon the
making of such Investment, become a Restricted Subsidiary or be merged or
consolidated with or into, or transfer or convey all or substantially all its
assets to, FelCor LP or FelCor or any of their Restricted Subsidiaries;
provided that such
Person’s primary business is related, ancillary, incidental or complementary to
the businesses of FelCor LP or FelCor or any of their respective Restricted
Subsidiaries on the date of such Investment;

       

                      (ii)Temporary Cash
Investments;

       

                      (iii)payroll, travel and similar advances
to cover matters that are expected at the time of such advances ultimately to be
treated as expenses in accordance with GAAP;

       

                      (iv)any Investment made as a result of
the receipt of non-cash consideration from an Asset Sale that was made pursuant
to and in compliance with Section 4.11 or any disposition of assets or rights
not constituting an Asset Sale by reason of the threshold contained in the
definition thereof;

       

                      (v)stock, obligations or securities
received in connection with the bankruptcy or reorganization of, or settlement
of delinquent accounts and disputes with, customers and suppliers, in each case
in the ordinary course of business or received in satisfaction of
judgment;

       

                      (vi)any Investment of FelCor,
FelCor LP or any of their Restricted Subsidiaries existing on the date of
this Indenture, and any extension, modification or renewal of any such
Investments, but only to the extent not involving additional advances,
contributions or other Investments of cash or other assets or other increases
thereof (other than as a result of the accrual or accretion of interest or
original issue discount or the issuance of pay-in-kind securities), in each
case, pursuant to the terms of such Investment as in effect on the Closing Date;
and

       

                      (vii)Guarantees of Indebtedness permitted
to be Incurred by the primary obligor pursuant to Section 4.03

       

      “Permitted Liens” means, with
respect to any Person:

       

                      (i)pledges or deposits by such Person
under workmen’s compensation laws, unemployment insurance laws or similar
legislation or regulatory requirements, including any Lien securing letters of
credit issued in the ordinary course of business consistent with past practice
in connection therewith; deposits made in the ordinary course of business to
secure liability to insurance carriers; good faith deposits in connection with
bids, tenders, contracts (other than for the payment of Indebtedness) or leases
to which such

       

      
        
           

        

        
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      Person is
a party; deposits to secure public or statutory obligations of such Person or
deposits of cash or U.S. government bonds to secure bid, surety or appeal bonds
to which such Person is a party; deposits as security for contested taxes or
import duties or for the payment of rent, in each case incurred in the ordinary
course of business; and deposits made by FelCor LP, FelCor or any of their
Restricted Subsidiaries in connection with any letter of intent or purchase
agreement permitted hereunder;

       

                      (ii)Liens and landlord’s liens imposed by
law or the provisions of leases, such as carriers’, warehousemen’s and
mechanics’ Liens, in each case for sums not yet overdue for a period of more
than 60 days or being contested in good faith by appropriate proceedings, or
other Liens arising out of judgments or awards against such Person with respect
to which such Person shall then be proceeding with an appeal or other
proceedings for review if adequate reserves with respect thereto are maintained
on the books of such Person in accordance with GAAP;

       

                      (iii)Liens for taxes, assessments or other
governmental charges not yet delinquent or payable or subject to penalties for
nonpayment or which are being contested in good faith by appropriate proceedings
diligently conducted, if adequate reserves with respect thereto are maintained
on the books of such Person in accordance with GAAP;

       

                      (iv)(a) survey exceptions, encumbrances,
easements, reservations, licenses, rights-of-way, sewers, electric lines,
telegraph and telephone lines and other similar matters, or zoning or other
restrictions as to the use of real properties or Liens incidental to the conduct
of the business of such Person or to the ownership of its properties which were
not incurred in connection with Indebtedness and which do not in the aggregate
materially adversely affect the value of said properties or materially impair
their use in the operation of the business of such Person, (b) leases,
subleases, licenses or sublicenses granted to others in the ordinary course of
business which do not materially interfere with the ordinary conduct of the
business of FelCor LP, FelCor or any of their Restricted Subsidiaries and
do not secure any Indebtedness and (c) Liens arising from Uniform Commercial
Code financing statement filings regarding operating leases entered into by
FelCor LP, FelCor and their Restricted Subsidiaries in the ordinary course
of business;

       

                      (v)Liens securing Indebtedness or other
obligations of a Restricted Subsidiary owing to FelCor LP, FelCor or a
Restricted Subsidiary permitted to be incurred in accordance with Section 4.03
or Liens in favor of FelCor LP, FelCor or any Subsidiary
Guarantor;

       

                      (vi)Liens existing on the Closing Date
(other than Liens securing Indebtedness);

       

                      (vii)Liens on assets or properties or
shares of stock of a Person at the time such Person becomes a Subsidiary or
Liens on assets or properties at the time FelCor LP, FelCor or a Restricted
Subsidiary acquired the property, including any acquisition by means of a merger
or consolidation with or into FelCor LP, FelCor or any of their Restricted
Subsidiaries; provided,
however, that in each
case such Liens do not secure Indebtedness and are not created or incurred in
connection with, or in contemplation of, such other Person becoming such a
Subsidiary or such acquisition, as the case may be; and provided, further, that in each case
such Liens may not extend to any other property owned by FelCor LP, FelCor
or any of their Restricted Subsidiaries;

       

                      (viii)Liens to secure any refinancing,
refunding, extension, renewal or replacement (or successive refinancings,
refundings, extensions, renewals or replacements), as a whole or in part, of any
Indebtedness secured by any Lien referred to in the foregoing clauses (v), (vi)
and (vii); provided,
however, that (a) such
new Lien shall be substantially limited to all or part of the same property that
secured the original Lien (plus improvements on such property), and (b) the
Indebtedness secured by such Lien at such time is not increased to any amount
greater than the sum of (1) the outstanding principal amount or, if greater,
committed amount of the Indebtedness described under clauses (v), (vi) and (vii)
at the time the original Lien became a Permitted Lien under this indenture, and
(2) an amount necessary to pay any fees and expenses, including premiums,
related to such refinancing, refunding, extension, renewal or
replacement;

       

                      (ix)Liens securing judgments for the
payment of money not constituting an Event of Default under clause (f) of
Section 6.01 so long as such Liens are adequately bonded and any appropriate
legal

       

      
         

        
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      proceedings
that may have been duly initiated for the review of such judgment have not been
finally terminated or the period within which such proceedings may be initiated
has not expired;

       

                      (x)(a) Liens in favor of customs and
revenue authorities arising as a matter of law to secure payment of customs
duties in connection with the importation of goods in the ordinary course of
business; (b) Liens arising out of conditional sale, title retention,
consignment or similar arrangements for the sale or purchase of goods entered
into by FelCor LP, FelCor or any of their Restricted Subsidiaries in the
ordinary course of business; and (c) Liens on specific items of inventory or
other goods and proceeds of any Person securing such Person’s obligations in
respect of bankers’ acceptances issued or created for the account of such Person
to facilitate the purchase, shipment or storage of such inventory or other
goods;

       

                      (xi)Liens that are contractual rights of
setoff (i) relating to the establishment of depository relations with banks not
given in connection with the issuance of Indebtedness or (ii) relating to pooled
deposit or sweep accounts of FelCor LP, FelCor or any of their Restricted
Subsidiaries to permit satisfaction of overdraft or similar obligations incurred
in the ordinary course of business of FelCor LP, FelCor and their
Restricted Subsidiaries;

       

                      (xii)any encumbrance or restriction
(including put and call arrangements) with respect to Capital Stock of any joint
venture or similar arrangement pursuant to any joint venture or similar
agreement;

       

                      (xiii)Liens securing the Notes and the
related Subsidiary Guarantees of the Notes (and Exchange Notes in respect
thereof), and Liens securing Additional Pari Passu Indebtedness;

       

                      (xiv)Liens in favor of collecting or payor
banks having a right of setoff, revocation, refund or chargeback with respect to
money or instruments of FelCor LP, FelCor and their Restricted Subsidiaries
on deposit with or in possession of such bank;

       

                      (xv)deposits in the ordinary course of
business to secure liability to insurance carriers; and

       

                      (xvi)Liens securing Indebtedness incurred
in connection with acquisitions of or improvements on furniture, fixtures &
equipment (“FF&E”)
in respect of any Restricted Hotel; provided that the aggregate
principal amount of all Indebtedness secured by such Liens in respect of any
individual Restricted Hotel shall not exceed $500,000 at any one time
outstanding.

       

      For
purposes of this definition, the term “Indebtedness” shall be deemed to include
interest, fees, expenses and other similar obligations on such
Indebtedness.  The foregoing notwithstanding, the Liens set forth in
clause (v) above shall not apply to any assets or properties that constitute
Collateral or Additional Restricted Assets.

       

      “Person” means an individual,
partnership, corporation, limited liability company, unincorporated
organization, trust or joint venture, or a governmental agency or political
subdivision thereof.

       

      “Physical Notes” has the
meaning provided in Section 2.01.

       

      “Pledge Agreement” means that
certain pledge agreement, to be dated as of the date of the Assumption, among
FelCor LP, FelCor, the Pledgors and the Collateral Agent as the same may be
amended, supplemented or otherwise modified from time to time.

       

      “Pledged Collateral” means,
from and after the date of the Assumption, (i) the units of limited partner
interest of FelCor LP held by FelCor Holdings Trust, representing a greater
than 95% common limited partnership interest in FelCor LP, and (ii) the
other equity interests of the Pledgors being pledged as Collateral to secure the
Notes pursuant to the Pledge Agreement.

       

      “Pledgors” means, from and
after the date of the Assumption, FelCor Holdings Trust, FelCor LP, FelCor
Canada Holdings, L.P., a Delaware limited partnership, FelCor/CSS Hotels,
L.L.C., a Delaware limited liability company, FelCor TRS Holdings, L.L.C., a
Delaware limited liability company, FelCor TRS Borrower GP 1,
L.L.C.,

       

      
        
           

        

        
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      a
Delaware limited liability company, FelCor Hotel Asset Company, L.L.C., a
Delaware limited liability company, and any other entity party to the Pledge
Agreement after the date hereof as a Pledgor.

       

      “Preferred Stock” means, with
respect to any Person, any and all shares, interests, participations or other
equivalents (however designated, whether voting or non-voting) that have a
preference on liquidation or with respect to distributions over any other class
of Capital Stock, including preferred partnership interests, whether general or
limited, or such Person’s preferred or preference stock, whether outstanding on
the Closing Date or issued thereafter, including, without limitation, all series
and classes of such preferred or preference stock.

       

      “Private Placement Legend”
means the legend initially set forth on the Notes in the form set forth in the
first paragraph of Section 2.02.

       

      “QIB” means a “qualified
institutional buyer” as defined in Rule 144A.

       

      “Quotation Agent” means the
Reference Treasury Dealer selected by the applicable trustee after consultation
with FelCor LP and FelCor.

       

      “Redemption Date,” when used
with respect to any Note to be redeemed, means the date fixed for such
redemption by or pursuant to this Indenture.

       

      “Redemption Price,” when used
with respect to any Note to be redeemed, means the price at which such Note is
to be redeemed pursuant to this Indenture.

       

      “Reference Period” has the
meaning provided to it under the term “Interest Coverage Ratio.”

       

      “Reference Treasury Dealer”
means any three nationally recognized investment banking firms selected by
FelCor LP and FelCor that are primary dealers of Government
Securities.

       

      “Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any
Redemption Date, the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue with respect to the Notes, expressed in
each case as a percentage of its principal amount, quoted in writing to the
Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on
the third Business Day immediately preceding the Redemption Date.

       

      “Registrar” has the meaning
provided in Section 2.04.

       

      “Registration Rights
Agreement” means the Registration Rights Agreement, dated as of October
1, 2009, among FelCor LP, FelCor, the Subsidiary Guarantors and certain
permitted assigns specified therein.

       

      “Registration Statement” means
the Registration Statement as defined and described in the Registration Rights
Agreement.

       

      “Regular Record Date” for the
interest payable on any Interest Payment Date means the March 15 or September 15
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date.

       

      “Regulation S” means
Regulation S under the Securities Act.

       

      “Replacement Collateral” has
the meaning provided in Section 4.10.

       

      “Replacement Pledged Equity”
has the meaning provided in Section 4.10.

       

      “Replacement Property
Collateral” has the meaning provided in Section 4.10.

       

      “Report Date” has the meaning
provided for it under the term “Collateral Hotel Interest Coverage
Ratio.”

       

      
        
           

        

        
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      “Responsible Officer,” when
used with respect to the Trustee, means the chairman or any vice chairman of the
board of directors, the chairman or any vice chairman of the executive committee
of the board of directors, the chairman of the trust committee, the president,
any vice president, any assistant vice president, the secretary, any assistant
secretary, the treasurer, any assistant treasurer, the cashier, any assistant
cashier, any trust officer or assistant trust officer, the controller or any
assistant controller or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his or her knowledge of and
familiarity with the particular subject.

       

      “Restricted Hotels” means the
hotels constituting Collateral, Additional Restricted Assets and, for the
avoidance of doubt, Additional Pari Passu Collateral, Replacement Property
Collateral and After-Acquired Property.

       

      “Restricted Subsidiary” means
any Subsidiary of FelCor LP or FelCor other than an Unrestricted
Subsidiary.

       

      “Rule 144A” means Rule 144A
under the Securities Act.

       

      “Secured Indebtedness” means
any Indebtedness secured by a Lien upon the property of FelCor LP or FelCor
or any of their respective Restricted Subsidiaries, other than (i) Indebtedness
represented by the Notes and any Additional Pari Passu Indebtedness and (ii)
Indebtedness secured solely by a Stock Pledge to the extent such Indebtedness
does not exceed 50% of Adjusted Total Assets.

       

      “Securities Act” means the
Securities Act of 1933, as amended.

       

      “Secured Parties” has the
meaning set forth in the Pledge Agreement.

       

      “Senior Indebtedness” means
the following obligations of FelCor LP or FelCor or any of their respective
Restricted Subsidiaries, whether outstanding on the Closing Date or thereafter
Incurred:

       

                      (i)all Indebtedness and all other
monetary obligations (including expenses, fees and other monetary obligations)
of FelCor LP and FelCor under a Line of Credit;

       

                      (ii)all Indebtedness and all other
monetary obligations of FelCor LP or FelCor or any of their respective
Restricted Subsidiaries (other than the Notes), including principal and interest
on such Indebtedness, unless such Indebtedness, by its terms or by the terms of
any agreement or instrument pursuant to which such Indebtedness is issued, is
expressly subordinated in right of payment to the Notes; and

       

                      (iii)Subsidiary Debt.

       

      Senior
Indebtedness will also include interest accruing subsequent to events of
bankruptcy of FelCor LP and FelCor and their respective Restricted
Subsidiaries at the rate provided for in the document governing such Senior
Indebtedness, whether or not such interest is an allowed claim enforceable
against the debtor in a bankruptcy case under bankruptcy law.

       

       “Shelf Registration Statement”
means the Shelf Registration Statement as defined in the Registration Rights
Agreement.

       

      “Significant Subsidiary”
means, at any determination date, any Restricted Subsidiary that, together with
its Subsidiaries:

       

                      (i)for the most recent fiscal year of
FelCor LP and FelCor, accounted for more than 10% of the consolidated
revenues of FelCor LP, FelCor and their respective Restricted Subsidiaries,
or

       

      
         

        
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                      (ii)as of the end of such fiscal year,
was the owner of more than 10% of the consolidated assets of FelCor LP,
FelCor and their respective Restricted Subsidiaries, all as set forth on the
most recently available consolidated financial statements thereof for such
fiscal year;

       

      provided that from the
Closing Date until the third anniversary thereof, the reference to 10% in
clauses (i) and (ii) above shall be deemed to be 15%.

       

      “S&P” means Standard &
Poor’s and its successors.

       

      “Stated Maturity”
means:

       

                      (i)with respect to any debt security,
the date specified in such debt security as the fixed date on which the final
installment of principal of such debt security is due and payable;
and

       

                      (ii)with respect to any scheduled
installment of principal of or interest on any debt security, the date specified
in such debt security as the fixed date on which such installment is due and
payable.

       

      “Stock Pledge” means a
security interest in the equity interests of Subsidiaries of FelCor and/or
FelCor LP.

       

      “Subsidiary” means, with
respect to any Person, any corporation, association or other business entity of
which more than 50% of the voting power of the outstanding Voting Stock is
owned, directly or indirectly, by such Person and one or more other Subsidiaries
of such Person and the accounts of which would be consolidated with those of
such Person in its consolidated financial statements in accordance with GAAP, if
such statements were prepared as of such date.

       

      “Subsidiary Debt” means all
unsecured Indebtedness of which a Restricted Subsidiary is the primary
obligor.

       

      “Subsidiary Guarantee” means a
Guarantee by each Subsidiary Guarantor for payment of the Notes by such
Subsidiary Guarantor.  The Subsidiary Guarantee will be an unsecured
senior obligation of each Subsidiary Guarantor and will be unconditional
regardless of the enforceability of the Notes and this
Indenture.  Notwithstanding the foregoing, each Subsidiary Guarantee
by a Subsidiary Guarantor shall provide by its terms that it shall be
automatically and unconditionally released and discharged upon (i) any sale,
exchange or transfer, to any Person not an Affiliate of FelCor LP or
FelCor, of all of the Capital Stock owned by FelCor LP, FelCor and their
respective Restricted Subsidiaries in, or all or substantially all the assets
of, such Restricted Subsidiary (which sale, exchange or transfer is not then
prohibited by this Indenture), (ii) satisfaction or discharge of the obligations
under this Indenture or a defeasance under Section 8.02 or 8.03 of this
Indenture and (iii)  the unconditional and complete release of such
Subsidiary Guarantor from its Guarantee of all Guaranteed
Indebtedness.

       

      “Subsidiary Guarantor” means,
from and after the date of the Assumption, FelCor/CSS Holdings, L.P., FelCor
Lodging Holding Company, L.L.C., FelCor TRS Borrower 1, L.P., FelCor TRS
Borrower 4, L.L.C., FelCor TRS Holdings, L.P., FelCor Canada Co., FelCor/St.
Paul Holdings, L.P., FelCor Hotel Asset Company, L.L.C., any other Restricted
Subsidiary that owns a Restricted Hotel and any Restricted Subsidiary that
executes a Subsidiary Guarantee in compliance with Section 4.07.

       

      “Temporary Cash Investment”
means any of the following:

       

                      (i)direct obligations of the United
States of America or any agency thereof or obligations fully and unconditionally
guaranteed by the United States of America or any agency thereof;

       

                      (ii)time deposit accounts, certificates
of deposit and money market deposits maturing within 180 days of the date of
acquisition thereof issued by a bank or trust company which is organized under
the laws of the United States of America or any state thereof, and which bank or
trust company has capital, surplus and undivided profits aggregating in excess
of $50 million and has outstanding debt which is rated “A” (or such similar
equivalent rating) or higher by at least one nationally recognized statistical
rating

       

      
        
           

        

        
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      organization
(as defined in Rule 436 under the Securities Act) or any money market fund
sponsored by a registered broker dealer or mutual fund distributor;

       

                      (iii)repurchase obligations with a term of
not more than 30 days for underlying securities of the types described in clause
(i) above entered into with a bank meeting the qualifications described in
clause (ii) above;

       

                      (iv)commercial paper, maturing not more
than 90 days after the date of acquisition, issued by a corporation (other than
an Affiliate of FelCor LP or FelCor) organized and in existence under the
laws of the United States of America or any state of the United States of
America with a rating at the time as of which any investment therein is made of
“P-2” (or higher) according to Moody’s or “A-2” (or higher) according to
S&P;

       

                      (v)securities with maturities of six
months or less from the date of acquisition issued or fully and unconditionally
guaranteed by any state, commonwealth or territory of the United States of
America, or by any political subdivision or taxing authority thereof, and rated
at least “A” by S&P or Moody’s;

       

                      (vi)money market funds at least 95% of
the assets of which constitute Temporary Cash Investments of the kinds described
in clauses (i) through (v) of this definition;

       

                      (vii)repurchase obligations of any
commercial bank organized under the laws of the United States of America or any
state thereof having capital and surplus aggregating at least $500.0 million,
having a term of not more than 30 days, with respect to securities referred to
in clause (ii) of this definition; and

       

                      (viii)instruments equivalent to those
referred to in clauses (i) to (vii) above denominated in euros or any other
foreign currency comparable in credit quality and tenor to those referred to
above and customarily used by corporations for cash management purposes in any
jurisdiction outside the United States to the extent reasonably required in
connection with any business conducted by a Restricted Subsidiary organized in
such jurisdiction.

       

      “Temporary Offshore Global
Note” has the meaning provided in Section 2.01.

       

      “TIA” or “Trust Indenture Act” means
the Trust Indenture Act of 1939, as amended (15 U.S. Code Sections 77aaa-77bbb),
as in effect on the date this Indenture was executed, except as provided in
Section 9.06.

       

      “Total Assets” means the sum
of:

       

                      (i)Undepreciated Real Estate Assets;
and

       

                      (ii)all other assets of FelCor LP,
FelCor and their respective Restricted Subsidiaries on a consolidated basis
determined in conformity with GAAP (but excluding intangibles and accounts
receivables).

       

      “Trade Payables” means, with
respect to any Person, any accounts payable or any other indebtedness or
monetary obligation to trade creditors created, assumed or Guaranteed by such
Person or any of its Subsidiaries arising in the ordinary course of business in
connection with the acquisition of goods or services.

       

      “Transaction Date” means, with
respect to the Incurrence of any Indebtedness by FelCor LP or FelCor or any
of their respective Restricted Subsidiaries, the date such Indebtedness is to be
Incurred and, with respect to any Restricted Payment, the date such Restricted
Payment is to be made.

       

      “Trustee” means the party
named as such in the first paragraph of this Indenture until a successor
replaces it in accordance with the provisions of Article Seven of this Indenture
and thereafter means such successor.

       

      
        
           

        

        
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      “Undepreciated Real Estate
Assets” means, as of any date, the cost (being the original cost to
FelCor LP or FelCor or any of their respective Restricted Subsidiaries plus
capital improvements) of real estate assets of FelCor LP, FelCor and their
Restricted Subsidiaries on such date, before depreciation and amortization of
such real estate assets, determined on a consolidated basis in conformity with
GAAP.

       

      “United States Bankruptcy
Code” means the Bankruptcy Reform Act of 1978, as amended and as codified
in Title 11 of the United States Code, as amended from time to time hereafter,
or any successor federal bankruptcy law.

       

      “Units” means the limited
partnership units of FelCor LP that by their terms are redeemable at the
option of the holder thereof and that, if so redeemed, at the election of FelCor
are redeemable for cash or Common Stock of FelCor.

       

      “Unrestricted Subsidiary”
means

       

                      (i)any Subsidiary of FelCor LP or
FelCor that at the time of determination shall be designated an Unrestricted
Subsidiary by the Board of Directors in the manner provided below;
and

       

                      (ii)any Subsidiary of an Unrestricted
Subsidiary.

       

      The Board
of Directors may designate any Restricted Subsidiary (including any newly
acquired or newly formed Subsidiary of FelCor LP or FelCor) to be an
Unrestricted Subsidiary unless such Subsidiary owns any Capital Stock of, or
owns or holds any Lien on any property of, FelCor LP or FelCor or any of
their respective Restricted Subsidiaries (other than Capital Stock of any
Subsidiaries of such Subsidiary); provided that:

       

      (A)           any
Guarantee by FelCor LP or FelCor or any of their respective Restricted
Subsidiaries of any Indebtedness of the Subsidiary being so designated shall be
deemed an “Incurrence” of such Indebtedness and an “Investment” by
FelCor LP or FelCor or such Restricted Subsidiary (or all, if applicable)
at the time of such designation;

       

      (B)           either
(I) the Subsidiary to be so designated has total assets of $1,000 or less or
(II) if such Subsidiary has assets greater than $1,000, such designation would
be permitted under Section 4.04; and

       

      (C)           if
applicable, the Incurrence of Indebtedness and the Investment referred to in
clause (A) of this proviso would be permitted under Sections 4.03 and
4.04.

       

      The Board
of Directors may designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided
that

       

                      (i)no Default or Event of Default shall
have occurred and be continuing at the time of or after giving effect to such
designation; and

       

                      (ii)all Liens and Indebtedness of such
Unrestricted Subsidiary outstanding immediately after such designation would, if
Incurred at such time, have been permitted to be Incurred (and shall be deemed
to have been Incurred) for all purposes of this Indenture.

       

      Any such
designation by the Board of Directors shall be evidenced to the Trustee by
promptly filing with the Trustee a copy of the Board Resolution giving effect to
such designation and an Officers’ Certificate certifying that such designation
complied with the foregoing provisions.

       

      “Unsecured Indebtedness” means
any Indebtedness of FelCor LP or FelCor or any of their respective
Restricted Subsidiaries that is not Secured Indebtedness.

       

      “U.S. Global Notes” has the
meaning provided in Section 2.01.

       

      
        
           

        

        
          25

          
            

          

        

        
           

        

      

      

       

      “U.S. Physical Notes” has the
meaning provided in Section 2.01.

       

      “Voting Stock” means with
respect to any Person, Capital Stock of any class or kind ordinarily having the
power to vote for the election of directors, managers or other voting members of
the governing body of such Person.

       

      “Wholly Owned” means, with
respect to any Subsidiary of any Person, the ownership of all of the outstanding
Capital Stock of such Subsidiary (other than any director’s qualifying shares or
Investments by individuals mandated by applicable law) by such Person or one or
more Wholly Owned Subsidiaries of such Person.

       

      SECTION
1.02.            Incorporation by Reference of Trust
Indenture Act.

       

        Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture.  The following TIA
terms used in this Indenture have the following meanings:

       

      “indenture notes” means the
Notes;

       

      “indenture note holder” means
a Holder or a Noteholder;

       

      “indenture to be qualified”
means this Indenture;

       

      “indenture trustee” or “institutional trustee” means
the Trustee; and

       

      “obligor” on the indenture
securities means FelCor LP, the Guarantors or any other obligor on the
Notes.

       

      All other
TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by a rule of the Commission and not
otherwise defined herein have the meanings assigned to them
therein.

       

      SECTION
1.03.                                Rules of Construction.  Unless the context
otherwise requires:

       

      (i) a term
has the meaning assigned to it;

       

      (ii) an
accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

       

      (iii) “or” is not
exclusive;

       

      (iv) words in
the singular include the plural, and words in the plural include the
singular;

       

      (v) provisions
apply to successive events and transactions;

       

      (vi) “herein,” “hereof” and other words of
similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision;

       

      (vii) all
ratios and computations based on GAAP contained in this Indenture shall be
computed in accordance with the definition of “GAAP” set forth in Section 1.01;
and

       

      (viii) all
references to Sections or Articles refer to Sections or Articles of this
Indenture unless otherwise indicated.

       

      
        
           

        

        
          26

          
            

          

        

        
           

        

      

      

      ARTICLE
TWO

       

      

       

      NOTES

       

      SECTION
2.01          Form and Dating.  The Notes and
the Trustee’s certificate of authentication shall be until the Assumption
substantially in the form annexed hereto as Exhibit A with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture.  The Notes may have notations, legends or
endorsements required by law, by stock exchange agreements to which Escrow
Subsidiary prior to the Assumption and thereafter FelCor LP or the
Guarantors are subject or by usage.  Escrow Subsidiary prior to the
Assumption and thereafter FelCor LP shall approve the form of the Notes and any
notation, legend or endorsement on the Notes.  Each Note shall be
dated the date of its authentication.

       

      The terms
and provisions contained in the form of the Notes annexed hereto as Exhibit A
shall constitute, and are hereby expressly made, a part of this
Indenture.  To the extent applicable, Escrow Subsidiary prior to the
Assumption and thereafter FelCor LP, the Guarantors and the Trustee, by
their execution and delivery of this Indenture, expressly agree to such terms
and provisions and to be bound thereby.

       

      Notes
offered and sold in reliance on Rule 144A shall be issued initially in the form
of one or more permanent global Notes in registered form, substantially in the
form set forth in Exhibit A (collectively, the “U.S. Global Notes”),
deposited with the Trustee, as custodian for the Depositary, duly executed by
Escrow Subsidiary prior to the Assumption and thereafter FelCor LP and
authenticated by the Trustee as hereinafter provided.  The aggregate
principal amount of the U.S. Global Notes may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for
the Depositary or its nominee, as hereinafter provided.

       

      Notes
offered and sold in offshore transactions in reliance on Regulation S shall be
issued initially in the form of one or more temporary global Notes in registered
form substantially in the form set forth in Exhibit A (the “Temporary Offshore Global
Notes”) deposited with the Trustee, as custodian for the Depositary, duly
executed by FelCor LP and authenticated by the Trustee as hereinafter
provided.  At any time following 40 days from the initial issuance of
a series of notes (the “Offshore Notes Exchange
Date”), upon receipt by the Trustee and FelCor LP of a certificate
substantially in the form of Exhibit B hereto, one or more permanent global
Notes in registered form substantially in the form set forth in Exhibit A (the
“Permanent Offshore Global
Notes,” and together with the Temporary Offshore Global Notes, the “Offshore Global Notes”) duly
executed by FelCor LP and authenticated by the Trustee as hereinafter
provided shall be deposited with the Trustee, as custodian for the Depositary,
and the Registrar shall reflect on its books and records the date and a decrease
in the principal amount of the Temporary Offshore Global Notes in an amount
equal to the principal amount of the beneficial interest in the Temporary
Offshore Global Notes transferred.

       

      Notes
offered and sold in reliance on Regulation D under the Securities Act shall be
issued in the form of permanent certificated Notes in registered form in
substantially the form set forth in Exhibit A (the “U.S. Physical
Notes”).  Notes issued pursuant to Section 2.07 in exchange for
interests in the Offshore Global Note shall be in the form of permanent
certificated Notes in registered form substantially in the form set forth in
Exhibit A (the “Off-shore
Physical Notes”).

       

      The
Offshore Physical Notes and U.S. Physical Notes are sometimes collectively
herein referred to as the “Physical
Notes.”  The U.S. Global Notes and the Offshore Global Notes
are sometimes referred to herein as the “Global Notes.”

       

      The
definitive Notes shall be typed, printed, lithographed or engraved or produced
by any combination of these methods or may be produced in any other manner
permitted by the rules of any securities exchange on which the Notes may be
listed, all as determined by the Officers executing such Notes, as evidenced by
their execution of such Notes.  Notwithstanding anything in Section
2.07 or Section 2.08 of this Indenture, prior to the date of the Assumption,
beneficial interests in the Global Notes shall not be transferred to, or
exchanged for, interests in a Physical Note without the consent of Escrow
Subsidiary and the Trustee.

       

      
        	
                SECTION
      2.02

              	
                Restrictive
      Legends.

              

      

       

      .  Unless
and until a Note is exchanged for an Exchange Note or sold in connection with an
effective Registration Statement pursuant to the Registration Rights Agreement,
the U.S.

       

      
        
           

        

        
          27

          
            

          

        

        
           

        

      

      

       

      Global
Notes, Temporary Offshore Global Notes and each U.S. Physical Note shall bear
the following legend on the face thereof:

       

      THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY
BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY,
BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION
DATE”) THAT IS ONE YEAR IN THE CASE OF RULE 144A NOTES, AND 40 DAYS IN THE CASE
OF REGULATION S NOTES, AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE
LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF
THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER, (B)
PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY
BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR
OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING
OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN
INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A
MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES
AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION
IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.
THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE.

       

      Each
Global Note, whether or not an Exchange Note, shall also bear the following
legend on the face thereof:

       

      UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY TO ESCROW SUBSIDIARY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY OR SUCH OTHER REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST

       

      
        
           

        

        
          28

          
            

          

        

        
           

        

      

      

       

      COMPANY),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.  TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT  NOT IN PART, TO NOMINEES OF CEDE & CO. OR
TO A SUCCESSOR THEREOF OR SUCH  SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE
WITH THE RESTRICTIONS SET FORTH IN SECTION 2.08 OF THE INDENTURE.

       

      Each
Global Note, whether or not an Exchange Note, shall also include the following
legend if such Note is issued with more than de minimis original issue discount
for United States federal income tax purposes:

       

      THIS NOTE
IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271 ET SEQ. OF
THE INTERNAL REVENUE CODE.  A HOLDER MAY OBTAIN THE ISSUE PRICE,
AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE AND YIELD TO MATURITY FOR SUCH
NOTES BY SUBMITTING A REQUEST FOR SUCH INFORMATION TO ESCROW SUBSIDIARY AT THE
FOLLOWING ADDRESS:  545 EAST JOHN CARPENTER FREEWAY, SUITE 1300,
IRVING, TEXAS  75062  ATTENTION:  GENERAL
COUNSEL.

       

      SECTION
2.0.3.                Execution, Authentication and
Denominations.

       

      .  The
Notes shall be executed by two Officers of Escrow Subsidiary prior to the date
of the Assumption and thereafter FelCor, as general partner of
FelCor LP.  The signature of any of these Officers on the Notes
may be by facsimile or manual signature in the name and on behalf of the Escrow
Subsidiary, FelCor or FelCor LP, as the case may be.

       

      If an
Officer whose signature is on a Note no longer holds that office at the time the
Trustee or authenticating agent authenticates the Note, the Note shall be valid
nevertheless.

       

      A Note
shall not be valid until the Trustee or authenticating agent manually signs the
certificate of authentication on the Note.  The signature shall be
conclusive evidence that the Note has been authenticated under this
Indenture.

       

      The Notes
shall be issued in the initial aggregate principal amount of $636,000,000, provided that FelCor LP
may issue additional Notes hereunder without limitation as to principal amount
in accordance with Section 2.15 hereof.

       

      At any
time and from time to time after the execution of this Indenture, the Trustee or
an authenticating agent shall upon receipt of a Company Order authenticate for
original issue Notes in the aggregate principal amount specified in such Company
Order; provided that
the Trustee shall be entitled to receive an Officers’ Certificate and an Opinion
of Counsel of Escrow Subsidiary or FelCor LP, as the case may be, in
connection with such authentication of Notes.  Such Company Order
shall specify the amount of Notes to be authenticated, the principal amount of
each Note to be authenticated, the date on which the original issue of Notes is
to be authenticated, the registered holder of each of the said Notes, delivery
instruction for each such Note and in case of an issuance of Notes pursuant to
Section 2.15, shall certify that such issuance is in compliance with Article
Four.

       

      The
Trustee may appoint an authenticating agent to authenticate Notes.  An
authenticating agent may authenticate Notes whenever the Trustee may do
so.  Each reference in this Indenture to authentication by the Trustee
includes authentication by such authenticating agent.  An
authenticating agent has the same rights as an Agent to deal with FelCor LP
or an Affiliate of FelCor LP.

       

      The Notes
shall be issuable only in registered form without coupons and only in
denominations of $1,000 in principal amount at maturity and any integral
multiple of $1,000 in excess thereof.

       

      
        	
                               
      SECTION 2.04.

              	
                Registrar and Paying
      Agent.

              

      

       

      FelCor LP
shall maintain an office or agency where Notes may be presented for registration
of transfer or for exchange (the “Registrar”), an office or
agency where Notes may

       

      
        
           

        

        
          29

          
            

          

        

        
           

        

      

      

       

      be
presented for payment (the “Paying Agent”) and an office
or agency where notices and demands to or upon FelCor LP in respect of the Notes
and this Indenture may be served, which shall be in the Borough of Manhattan,
The City of New York.  FelCor LP shall cause the Registrar to
keep a register of the Notes and of their transfer and exchange (the “Note
Register”).  FelCor LP may have one or more co-Registrars
and one or more additional Paying Agents.

       

      FelCor LP
shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture.  The agreement shall implement the provisions of this
Indenture that relate to such Agent.  FelCor LP shall give prompt
written notice to the Trustee of the name and address of any such Agent and any
change in the address of such Agent.  If FelCor LP fails to
maintain a Registrar, Paying Agent and/or agent for service of notices and
demands, the Trustee shall act as such Registrar, Paying Agent and/or agent for
service of notices and demands.  FelCor LP may remove any Agent upon
written notice to such Agent and the Trustee; provided that no such removal
shall become effective until (i) the acceptance of an appointment by a successor
Agent to such Agent as evidenced by an appropriate agency agreement entered into
by FelCor LP and such successor Agent and delivered to the Trustee or (ii)
notification to the Trustee that the Trustee shall serve as such Agent until the
appointment of a successor Agent in accordance with clause (i) of this
proviso.  Except with respect to Article Eight, FelCor,
FelCor LP, any Subsidiary of FelCor or FelCor LP, or any Affiliate of
any of them may act as Paying Agent, Registrar or co-Registrar, and/or agent for
service of notice and demands.

       

      FelCor LP
initially appoints the Trustee as Registrar, Paying Agent, authenticating agent
and agent for ser-vice of notice and demands.  If, at any time, the
Trustee is not the Registrar, the Registrar shall make available to the Trustee
on or before each Interest Payment Date and at such other times as the Trustee
may reasonably request, the names and addresses of the Holders as they appear in
the Note Register.

       

      
        	
                               
      

              	
                SECTION
      2.05.

              	
                Paying Agent To Hold Money in
      Trust.

              

      

       

      Not later
than each due date of the principal, premium, if any, interest and Additional
Interest, if any, on any Notes, FelCor LP shall deposit with the Paying
Agent money in immediately available funds sufficient to pay such principal,
premium, if any, and interest so becoming due; provided that if the Trustee
is then serving as Paying Agent, FelCor LP agrees to use its reasonable
best efforts to deposit or otherwise transfer such funds to the Trustee by no
later than 11:00 a.m., New York City time, on the applicable due
date.  FelCor LP shall require each Paying Agent other than the
Trustee to agree in writing that such Paying Agent shall hold in trust for the
benefit of the Holders or the Trustee all money held by the Paying Agent for the
payment of principal of, premium, if any, interest and Additional Interest, if
any, on the Notes (whether such money has been paid to it by FelCor LP or
any other obligor on the Notes), and such Paying Agent shall promptly notify the
Trustee of any default by FelCor LP (or any other obligor on the Notes) in
making any such payment.  FelCor LP at any time may require a
Paying Agent to pay all money held by it to the Trustee and account for any
funds disbursed, and the Trustee may at any time during the continuance of any
payment default, upon written request to a Paying Agent, require such Paying
Agent to pay all money held by it to the Trustee and to account for any funds
disbursed.  Upon doing so, the Paying Agent shall have no further
liability for the money so paid over to the Trustee.  If FelCor,
FelCor LP or any Subsidiary of FelCor or FelCor LP or any Affiliate of
any of them acts as Paying Agent, it will, on or before each due date of any
principal of, premium, if any, or interest on the Notes, segregate and hold in a
separate trust fund for the benefit of the Holders a sum of money sufficient to
pay such principal, premium, if any, interest or Additional Interest, if any, so
becoming due until such sum of money shall be paid to such Holders or otherwise
disposed of as provided in this Indenture, and will promptly notify the Trustee
of its action or failure to act.

       

      SECTION
2.06.               Transfer and Exchange.  The Notes are
issuable only in registered form.  A Holder may transfer a Note only
by written application to the Registrar stating the name of the proposed
transferee and otherwise complying with the terms of this
Indenture.  No such transfer shall be effected until, and such
transferee shall succeed to the rights of a Holder only upon, final acceptance
and registration of the transfer by the Registrar in the Note
Register.  Prior to the registration of any transfer by a Holder as
provided herein, FelCor LP, the Guarantors, the Trustee and any agent of
FelCor LP shall treat the person in whose name the Note is registered as
the owner thereof for all purposes whether or not the Note shall be overdue, and
neither FelCor LP, the Guarantors, the Trustee nor any such agent shall be
affected by notice to the contrary.  Furthermore, any Holder of a
Global Note shall, by acceptance of such Global Note, agree that transfers of
beneficial interests in such Global Note may be effected only through a book
entry system maintained by the Holder of such Global Note (or its agent) and
that ownership of a beneficial interest in the Note shall be required to be
reflected in a book entry.  When Notes are presented to the Registrar or a
co-Registrar with a request to register the transfer or to exchange them for an
equal principal amount of Notes of other authorized denominations (including an
exchange of Notes for Exchange Notes), the Registrar shall register the transfer
or make the exchange as requested if its requirements for such transactions are
met; provided that no exchanges of Notes for Exchange Notes shall occur until a
Registration Statement shall have been declared effective by the Commission and
that any Notes that are exchanged for Exchange Notes shall be cancelled by the
Trustee.  To permit registrations of transfers and exchanges,
FelCor LP shall execute and the Trustee shall authenticate Notes at the
Registrar’s request.  No service charge shall be made for any
registration of transfer or ex-change or redemption of the Notes, but
FelCor LP may require payment of a sum sufficient to cover any transfer tax
or similar governmental charge payable in connection therewith (other than any
such transfer taxes or other similar governmental charge payable upon exchanges
pursuant to Section 2.11, 3.08, 4.10, 4.11, 4.14 or 9.04).

      
         

        
          30

        

        
          
            
              

            

          

        

      

       

      The
Registrar shall not be required (i) to issue, register the transfer of or
exchange any Note during a period beginning at the opening of business 15 days
before the day of the mailing of a notice of redemption of Notes selected for
redemption under Section 3.03 and ending at the close of business on the day of
such mailing, (ii) to register the transfer of or exchange any Note so selected
for redemption in whole or in part, except the unredeemed portion of any Note
being redeemed in part, or (iii) to register the transfer of or to exchange a
Note between a Regular Record Date and the next succeeding Interest Payment
Date.

       

      Prior to
due presentment for the registration of a transfer of any Note, the Trustee, any
Agent, FelCor LP and the Guarantors may deem and treat the Person in whose name
any Note is registered as the absolute owner of such Note for the purpose of
receiving payment of principal and interest on such Notes and for all other
purposes, and none of the Trustee, any Agent, FelCor LP or the Guarantors shall
be affected by notice to the contrary.

       

      
        	
                SECTION
      2.07.

              	
                Book-Entry Provisions for
      Global Notes.

              

      

       

       

      (a)           The
U.S. Global Note and Offshore Global Note initially shall (i) be registered in
the name of the Depositary for such Global Notes or the nominee of such
Depositary, (ii) be delivered to the Trustee as custodian for such Depositary
and (iii) bear legends as set forth in Section 2.02.

       

      Members
of, or participants in, the Depositary (“Agent Members”) shall have no
rights under this Indenture with respect to any Global Note held on their behalf
by the Depositary, or the Trustee as its custodian, or under the Global Note,
and the Depositary may be treated by FelCor LP, the Guarantors, the Trustee
and any agent of FelCor LP, the Guarantors or the Trustee as the absolute
owner of such Global Note for all purposes
whatsoever.  Notwithstanding the foregoing, nothing herein shall
prevent FelCor LP, the Guarantors, the Trustee or any agent of
FelCor LP, the Guarantors or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depositary or
impair, as between the Depositary and its Agent Members, the operation of
customary practices governing the exercise of the rights of a Holder of any
Note.

       

      (b)           Transfers
of a Global Note shall be limited to transfers of such Global Note in whole, but
not in part, to the Depositary, its successors or their respective
nominees.  Interests of beneficial owners in a Global Note may be
transferred in accordance with the rules and procedures of the Depositary and
the provisions of Section 2.08.  In addition, U.S. Physical Notes and
Offshore Physical Notes shall be transferred to all beneficial owners in
ex-change for their beneficial interests in the U.S. Global Note or the Offshore
Global Note, respectively, if (i) the Depositary notifies FelCor LP that it
is unwilling or unable to continue as Depositary for the U.S. Global Note or the
Offshore Global Note, as the case may be, and a successor depositary is not
appointed by FelCor LP within 90 days of such notice, (ii) an Event of
Default has occurred and is continuing and the Registrar has received a request
therefor from the Depositary or (iii) in accordance with the rules and
procedures of the Depositary and the provisions of Section 2.08.

       

      (c)           Any
beneficial interest in one of the Global Notes that is transferred to a person
who takes delivery in the form of an interest in the other Global Note will,
upon transfer, cease to be an interest in such Global Note and become an
interest in the other Global Note and, accordingly, will thereafter be subject
to all transfer restrictions, if any, and other procedures applicable to
beneficial interests in such other Global Note for as long as it remains such an
interest.

       

      
        
           

        

        
          31

        

        
           

        

      

      
        

      

      

      (d)           In
connection with any transfer of a portion of the beneficial interests in the
U.S. Global Note or Permanent Offshore Global Note to beneficial owners pursuant
to paragraph (b) of this Section, the Registrar shall reflect on its books and
records the date and a decrease in the principal amount of the U.S. Global Note
or Permanent Offshore Global Note in an amount equal to the principal amount of
the beneficial interest in the U.S. Global Note or Permanent Offshore Global
Note to be transferred, and Escrow Subsidiary prior to the date of the
Assumption and thereafter FelCor LP shall execute, and the Trustee shall
authenticate and deliver, one or more U.S. Physical Notes or Offshore Physical
Notes, as the case may be, of like tenor and amount.

       

      (e)           In
connection with the transfer of the entire U.S. Global Note or Offshore Global
Note to beneficial owners pursuant to paragraph (b) of this Section, the U.S.
Global Note or Offshore Global Note, as the case may be, shall be deemed to be
surrendered to the Trustee for cancellation, and Escrow Subsidiary prior to the
date of the Assumption and thereafter FelCor LP shall execute, and the
Trustee shall authenticate and deliver, to each beneficial owner identified by
the Depositary in exchange for its beneficial interest in the U.S. Global Note
or Offshore Global Note, as the case may be, an equal aggregate principal amount
of U.S. Physical Notes or Offshore Physical Notes, as the case may be, of
authorized denominations.

       

      (f)           Any
U.S. Physical Note delivered in exchange for an interest in the U.S. Global Note
pursuant to paragraph (b), (d) or (e) of this Section shall, except as otherwise
provided by paragraph (f) of Section 2.08, bear the legend regarding transfer
restrictions applicable to the U.S. Physical Note set forth in Section
2.02.

       

      (g)           Any
Offshore Physical Note delivered in exchange for an interest in the Temporary
Offshore Global Note pursuant to paragraph (b), (d) or (e) of this Section
shall, except as otherwise provided by paragraph (f) of Section 2.08, bear the
legend regarding transfer restrictions applicable to the Offshore Physical Note
set forth in Section 2.02.

       

      (h)           The
registered Holder of a Global Note may grant proxies and otherwise authorize any
person, including Agent Members and persons that may hold interests through
Agent Members, to take any action which a Holder is entitled to take under this
Indenture or the Notes.

       

      
        	
                SECTION
      2.08.

              	
                Special Transfer
      Provisions.

              

      

       

      Unless
and until a Note is exchanged for an Exchange Note or sold in connection with an
effective Registration Statement pursuant to the Registration Rights Agreement,
the following provisions shall apply:

       

      (a)           Transfers to Non-QIB
Institutional Accredited Investors.  The following provisions
shall apply with respect to the registration of any proposed transfer of a Note
to any Institutional Accredited Investor which is not a QIB (excluding Non-U.S.
Persons):

       

      (1)           The
Registrar shall register the transfer of any Note, whether or not such Note
bears the Private Placement Legend, if (x) the requested transfer is one year
after the original issuance of the Notes or (y) the proposed transferee has
delivered to the Registrar a certificate substantially in the form of Exhibit C
hereto and, if such transfer is with respect to an aggregate principal amount of
Notes at the time of transfer of less than $100,000, an opinion of counsel
acceptable to FelCor and FelCor LP that such transfer is in compliance with
the Securities Act.

       

      (2)           If
the proposed transferor is an Agent Member holding a beneficial interest in the
U.S. Global Note, upon receipt by the Registrar of (x) the documents, if any,
required by paragraph (1) and (y) instructions given in accordance with the
Depositary’s and the Registrar’s procedures, the Registrar shall reflect on its
books and records the date and a decrease in the principal amount at maturity of
the U.S. Global Note in an amount equal to the principal amount at maturity of
the beneficial interest in the U.S. Global Note to be transferred, and Escrow
Subsidiary prior to the date of the Assumption and thereafter FelCor LP
shall execute, and the Trustee shall authenticate and deliver, one or more U.S.
Physical Notes of like tenor and amount.

       

      
        
           

        

        
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      (b)           Transfers
to QIBs.  The following provisions shall apply with respect to the
registration of any proposed transfer of a U.S. Physical Note or an interest in
the U.S. Global Note to a QIB (excluding Non-U.S. Persons):

       

      (i)          If
the Note to be transferred consists of (x) U.S. Physical Notes, the Registrar
shall register the transfer if such transfer is being made by a proposed
transferor who has checked the box provided for on the form of Note stating, or
has otherwise advised FelCor LP and the Registrar in writing, that the sale
has been made in compliance with the provisions of Rule 144A to a transferee who
has signed the certification provided for on the form of Note stating, or has
other-wise advised FelCor LP and the Registrar in writing, that it is
purchasing the Note for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a QIB
within the meaning of Rule 144A, and is aware that the sale to it is being made
in reliance on Rule 144A and acknowledges that it has received such information
regarding FelCor LP and the Guarantors as it has requested pursuant to Rule
144A or has determined not to request such information and that it is aware that
the transferor is relying upon its foregoing representations in order to claim
the exemption from registration provided by Rule 144A or (y) an interest in the
U.S. Global Note, the transfer of such interest may be effected only through the
book entry system maintained by the Depositary.

       

      (ii)          If
the proposed transferee is an Agent Member, and the Note to be transferred
consists of U.S. Physical Notes, upon receipt by the Registrar of the documents
referred to in clause (i) and instructions given in accordance with the
Depositary’s and the Registrar’s procedures, the Registrar shall reflect on its
books and records the date and an increase in the principal amount at maturity
of the U.S. Global Note in an amount equal to the principal amount at maturity
of the U.S. Physical Notes, to be transferred, and the Trustee shall cancel the
U.S. Physical Note so transferred.

       

      (c)         Transfers of Interests in
the Temporary Offshore Global Note.  The following provisions
shall apply with respect to registration of any proposed transfer of interests
in the Temporary Offshore Global Note:

       

      (i)          The
Registrar shall register the transfer of any Note (x) if the proposed transferee
is a Non-U.S. Person and the proposed transferor has delivered to the Registrar
a certificate substantially in the form of Exhibit D hereto or (y) if the
proposed transferee is a QIB and the proposed transferor has checked the box
provided for on the form of Note stating, or has otherwise advised
FelCor LP and the Registrar in writing, that the sale has been made in
compliance with the provisions of Rule 144A to a transferee who has signed the
certification provided for on the form of Note stating, or has otherwise advised
FelCor LP and the Registrar in writing, that it is purchasing the Note for
its own account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a QIB within the meaning of Rule
144A, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding FelCor LP
and the Guarantors as it has requested pursuant to Rule 144A or has determined
not to request such information and that it is aware that the transferor is
relying upon its foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

       

      (ii)          If
the proposed transferee is an Agent Member, upon receipt by the Registrar of the
documents referred to in clause (i)(y) above and instructions given in
accordance with the Depositary’s and the Registrar’s procedures, the Registrar
shall reflect on its books and records the date and an increase in the principal
amount at maturity of the U.S. Global Note, in an amount equal to the principal
amount at maturity of the Temporary Offshore Global Note to be transferred, and
the Trustee shall decrease the amount of the Temporary Offshore Global Note in
such an amount.

       

      (d)          Transfers of Interests in
the Permanent Offshore Global Note or Unlegended Offshore Physical
Notes.  The following provisions shall apply with respect to
any transfer of interests in the

       

      
         

        
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      Permanent
Offshore Global Note or unlegended Offshore Physical Notes.  The
Registrar shall register the transfer of any such Note without requiring any
additional certification.

       

      (e)         Transfers to Non-U.S.
Persons at Any Time.  The following provisions shall apply with
respect to any transfer of a Note to a Non-U.S. Person:

       

      (i)          Prior
to 40 days from the initial issuance of a series of Notes, the Registrar shall
register any proposed transfer of a Note to a Non-U.S. Person upon receipt of a
certificate substantially in the form of Exhibit D hereto from the proposed
transferor.  On and after 40 days from the initial issuance of a
series of Notes, the Registrar shall register any proposed transfer to any
Non-U.S. Person if the Note to be transferred is a U.S. Physical Note or an
interest in the U.S. Global Note, upon receipt of a certificate substantially in
the form of Exhibit D from the proposed transferor.

       

      (ii)          (a)
If the proposed transferor is an Agent Member holding a beneficial interest in
the U.S. Global Note, upon receipt by the Registrar of (x) the documents, if
any, required by paragraph (i) and (y) instructions in accordance with the
Depositary’s and the Registrar’s procedures, the Registrar shall reflect on its
books and records the date and a decrease in the principal amount at maturity of
the U.S. Global Note in an amount equal to the principal amount at maturity of
the beneficial interest in the U.S. Global Note to be transferred, and (b) if
the proposed transferee is an Agent Member, upon receipt by the Registrar of
instructions given in accordance with the Depositary’s and the Registrar’s
procedures, the Registrar shall reflect on its books and records the date and an
increase in the principal amount at maturity of the Offshore Global Note in an
amount equal to the principal amount at maturity of the U.S. Physical Notes or
the U.S. Global Note, as the case may be, to be transferred, and the Trustee
shall cancel the U.S. Physical Note, if any, so transferred or decrease the
amount of the U.S. Global Note.

       

      (f)         Private Placement
Legend.  Upon the transfer, exchange or replacement of Notes
not bearing the Private Placement Legend, the Registrar shall deliver Notes that
do not bear the Private Placement Legend.  Upon the transfer, exchange
or replacement of Notes bearing the Private Placement Legend, the Registrar
shall deliver only Notes that bear the Private Placement Legend unless either
(i) the circumstances contemplated by the second sentence of the fourth
paragraph of Section 2.01 or paragraph (a)(1)(x) or (e)(ii) of this Section 2.08
exist or (ii) there is delivered to the Registrar an Opinion of Counsel
reasonably satisfactory to FelCor and FelCor LP and the Trustee to the
effect that neither such legend nor the related restrictions on transfer are
required in order to maintain compliance with the provisions of the Securities
Act.

       

      (g)         General.  By
its acceptance of any Note bearing the Private Placement Legend, each Holder of
such a Note acknowledges the restrictions on transfer of such Note set forth in
this Indenture and in the Private Placement Legend and agrees that it will
transfer such Note only as provided in this Indenture.  The Registrar
shall not register a transfer of any Note unless such transfer complies with the
restrictions on transfer of such Note set forth in this Indenture.  In
connection with any transfer of Notes, each Holder agrees by its acceptance of
the Notes to furnish the Registrar or FelCor LP such certifications, legal
opinions or other information as either of them may reasonably require to
confirm that such transfer is being made pursuant to an exemption from, or a
transaction not subject to, the registration requirements of the Securities Act;
provided that the
Registrar shall not be required to determine (but may rely on a determination
made by FelCor LP with respect to) the sufficiency of any such
certifications, legal opinions or other information.

       

      The
Registrar shall retain copies of all letters, notices and other written
communications received pursuant to Section 2.07 or this Section
2.08.  FelCor LP shall have the right to inspect and make copies
of all such letters, notices or other written communications at any reasonable
time upon the giving of reasonable written notice to the Registrar.

       

      SECTION
2.09                                 Replacement
Notes.

       

        If
a mutilated Note is surrendered to the Trustee or if the Holder claims that the
Note has been lost, destroyed or wrongfully taken, Escrow Subsidiary prior to
the date of the

       

      
         

        
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      Assumption
and thereafter FelCor LP shall issue and the Trustee shall authenticate a
replacement Note of like tenor and amount and bearing a number not
contemporaneously outstanding; provided that the
requirements of this Section 2.09 are met.  If required by the Trustee
or Escrow Subsidiary prior to the date of the Assumption and thereafter
FelCor LP, an indemnity bond must be furnished that is sufficient in the
judgment of both the Trustee and FelCor LP to protect Escrow Subsidiary
prior to the date of the Assumption and thereafter FelCor LP, the
Guarantors, the Trustee or any Agent from any cost, expense or loss that any of
them may suffer if a Note is replaced and subsequently presented or claimed for
payment.  FelCor LP may charge such Holder for its expenses and
the expenses of the Trustee in replacing a Note.  In case any such
mutilated, lost, destroyed or wrongfully taken Note has become or is about to
become due and payable, FelCor LP in its discretion may pay such Note
instead of issuing a new Note in replacement thereof.

       

      Every
replacement Note is an additional obligation of Escrow Subsidiary, prior to the
date of the Assumption and thereafter FelCor LP and shall be entitled to the
benefits of this Indenture.

       

      The
provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Notes.

       

      
        	
                SECTION
      2.10.

              	
                Outstanding
      Notes.

              

      

       

      Notes
outstanding at any time are all Notes that have been authenticated by the
Trustee except for those cancelled by it, those delivered to it for cancellation
and those described in this Section 2.10 as not outstanding.

       

      If a Note
is replaced pursuant to Section 2.09, it ceases to be outstanding unless and
until the Trustee and Escrow Subsidiary prior to the date of the Assumption and
thereafter FelCor LP receive proof satisfactory to them that the replaced Note
is held by a bona fide purchaser.

       

      If the
Paying Agent (other than FelCor, FelCor LP or an Affiliate of FelCor or
FelCor LP) holds on the maturity date money sufficient to pay Notes payable
on that date, then on and after that date such Notes cease to be outstanding and
interest on them shall cease to accrue.

       

      A Note
does not cease to be outstanding because FelCor or FelCor LP or one of
their Affiliates holds such Note; provided that, in determining
whether the Holders of the requisite principal amount of the outstanding Notes
have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, Notes owned by FelCor, FelCor LP, the Guarantors or any
other obligor upon the Notes or any Affiliate of FelCor LP or the
Guarantors or of such other obligor shall be disregarded and deemed not to be
outstanding, except that, in determining whether the Trustee shall be protected
in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Notes which the Trustee knows to be so owned shall be so
disregarded.  Notes so owned which have been pledged in good faith may
be regarded as outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Notes and that the
pledgee is not FelCor LP or the Guarantors or any other obligor upon the
Notes or any Affiliate of FelCor LP or the Guarantors or of such other
obligor.

       

      SECTION
2.11.            Temporary Notes.

       

      Until
definitive Notes are ready for delivery, Escrow Subsidiary prior to the date of
the Assumption and thereafter FelCor LP may prepare and the Trustee shall
authenticate temporary Notes.  Temporary Notes shall be substantially
in the form of definitive Notes but may have insertions, substitutions,
omissions and other variations determined to be appropriate by the Officers
executing the temporary Notes, as evidenced by their execution of such temporary
Notes.  If temporary Notes are issued, Escrow Subsidiary prior to the
date of the Assumption and thereafter FelCor LP will cause definitive Notes
to be prepared without unreasonable delay.  After the preparation of
definitive Notes, the temporary Notes shall be exchangeable for definitive Notes
upon surrender of the temporary Notes at the office or agency of FelCor LP
designated for such purpose pursuant to Section 4.02, without charge to the
Holder.  Upon surrender for cancellation of any one or more temporary
Notes Escrow Subsidiary prior to the date of the Assumption and thereafter
FelCor LP shall execute and the Trustee shall authenticate and deliver in
exchange therefor a like principal amount of definitive Notes of authorized
denominations.  Until so exchanged, the temporary Notes shall be
entitled to the same benefits under this Indenture as definitive
Notes.

       

      
        	
                SECTION
      2.12.

              	
                Cancellation.

              

      

       

      FelCor LP
at any time may deliver to the Trustee for cancellation any Notes previously
authenticated and delivered hereunder which FelCor LP may have acquired in
any manner what

       

      
         

        
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      soever,
and may deliver to the Trustee for cancellation any Notes previously
authenticated hereunder which Escrow Subsidiary prior to the date of the
Assumption and thereafter FelCor LP has not issued and sold.  The
Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for transfer, exchange or payment.  The Trustee
shall cancel all Notes surrendered for transfer, exchange, payment or
cancellation in accordance with its normal procedure.

       

      
        	
                             
      SECTION 2.13.

              	
                CUSIP
      Numbers.

              

      

       

      Escrow
Subsidiary prior to the date of the Assumption and thereafter FelCor LP in
issuing the Notes may use “CUSIP,” “CINS” or “ISIN” numbers (if then generally
in use), and the Trustee shall use CUSIP, CINS or ISIN numbers, as the case may
be, in notices of redemption or exchange as a convenience to Holders; provided that any such notice
shall state that no representation is made as to the correctness of such numbers
either as printed on the Notes or as contained in any notice of redemption or
exchange and that reliance may be placed only on the other identification
numbers printed on the Notes.

       

      SECTION
2.14           Defaulted
Interest.

       

      If
FelCor LP or the Guarantors default in a payment of interest on the Notes,
FelCor LP or the Guarantors shall pay, or shall deposit with the Paying
Agent money in immediately available funds sufficient to pay the defaulted
interest, plus (to the extent lawful) any interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record
date.  A special record date, as used in this Section 2.14 with
respect to the payment of any defaulted interest, shall mean the 15th day next
preceding the date fixed by FelCor LP for the payment of defaulted
interest, whether or not such day is a Business Day.  At least 15 days
before the subsequent special record date, FelCor LP (or, upon the written
request of FelCor LP, the Trustee in the name and at the expense of FelCor LP)
shall mail to each Holder and to the Trustee a notice that states the subsequent
special record date, the payment date and the amount of defaulted interest to be
paid.

       

      
        	
                      
      SECTION 2.15.

              	
                Issuance of Additional
      Notes.

              

      

       

      FelCor LP
may, subject to compliance with Article Four of this Indenture, issue additional
Notes under this Indenture.  The Notes issued on the Closing Date and
any additional Notes subsequently issued shall be treated as a single class for
all purposes under this Indenture.

       

      ARTICLE
THREE

       

      

       

      REDEMPTION

       

      
        	
                SECTION
      3.01.

              	
                Optional
      Redemption.

              

      

       

      (a)           Except
as provided in this Section 3.01(a) and in Section 3.01(b), FelCor LP will
not have the right to redeem any of the Notes prior to October 1,
2014.  At any time and from time to time prior to October 1, 2014,
FelCor LP and FelCor may, at their option, redeem all or a portion of the
Notes at a redemption price equal to 100% of the principal amount thereof plus
the Applicable Premium with respect to the notes plus accrued and unpaid
interest and Additional Interest, if any, thereon to the redemption
date.

       

      (b)           Notwithstanding
the foregoing, at any time, or from time to time, on or prior to October 1,
2012, FelCor LP may, at its option, use the net cash proceeds of one or
more Equity Offerings to redeem up to 35% of the principal amount of the Notes
issued under this Indenture at a Redemption Price (expressed as a percentage of
the principal amount thereof) equal to 110%, together with accrued and unpaid
interest thereon, if any, to the Redemption Date; provided that (i) at least
65% of the aggregate principal amount of the Notes issued under this Indenture
remains outstanding immediately after such redemption; and (ii) FelCor LP
makes such redemption no later than 90 days after the consummation of any such
Equity Offering.

       

      SECTION
3.02.    Notices to Trustee.
If
FelCor LP elects to redeem Notes pursuant to Section 3.01, it shall notify
the Trustee in writing of the Redemption Date and the principal amount of Notes
to be redeemed in an Officers’ Certificate at least 30 days before the
Redemption Date (unless a shorter period shall be satisfactory to the
Trustee).

       

      Selection of Notes To Be Redeemed.
If less
than all of the Notes are to be redeemed at any time, the Trustee shall select
the Notes to be redeemed in compliance with the requirements, as certified to it
by FelCor LP, of the principal national securities exchange, if any, on
which the Notes are listed or, on a pro rata basis,

       

      
        
           

        

        
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      by lot or
by such other method as the Trustee in its sole discretion shall deem fair and
appropriate; provided
that no Notes of $1,000 in principal amount at maturity shall be redeemed in
part.  Notwithstanding the foregoing, if less than all the Notes are
to be redeemed with the proceeds of an Equity Offering, the Trustee shall select
the Notes to be redeemed on a pro rata basis or on as
nearly a pro rata basis
as practicable (subject to the procedures of the Depositary) unless such method
is otherwise prohibited.

       

      The
Trustee shall make the selection from the Notes outstanding and not previously
called for redemption.  Notes in denominations of $1,000 in principal
amount at maturity may only be redeemed in whole.  The Trustee may
select for redemption portions (equal to $1,000 in principal amount at maturity
or any integral multiple thereof) of Notes that have denominations larger than
$1,000 in principal amount at maturity.  Provisions of this Indenture
that apply to Notes called for redemption also apply to portions of Notes called
for redemption.  The Trustee shall notify FelCor LP and the
Registrar promptly in writing of the Notes or portions of Notes to be called for
redemption.

       

      SECTION
3.04.    Notice of
Redemption.  With
respect to any redemption of Notes pursuant to Section 3.01, at least 15 days
but not more than 60 days before a Redemption Date, FelCor LP shall mail a
notice of redemption by first class mail to each Holder whose Notes are to be
redeemed.  The notice need not set forth the Applicable Premium but
only the manner of calculations of the redemption price.  FelCor LP
and FelCor will notify the Trustee of the Applicable Premium with respect to the
Notes promptly after the calculation and the Trustee will not be responsible for
such calculation.

       

      The
notice shall identify the Notes to be redeemed and shall state:

       

      (i)           the
Redemption Date;

       

      (ii)           the
Redemption Price, provided that with regard to a redemption pursuant to Section
3.01(a), the notice need only to set forth the method of calculation
thereof;

       

      (iii)           the
name and address of the Paying Agent;

       

      (iv)           that
Notes called for redemption must be surrendered to the Paying Agent in order to
collect the Redemption Price;

       

      (v)           that,
unless FelCor LP defaults in making the redemption payment, interest on
Notes called for redemption ceases to accrue on and after the Redemption Date
and the only remaining right of the Holders is to receive payment of the
Redemption Price plus accrued interest to the Redemption Date upon surrender of
the Notes to the Paying Agent;

       

      (vi)           that,
if any Note is being redeemed in part, the portion of the principal amount
(equal to $1,000 in principal amount at maturity or any integral multiple
thereof) of such Note to be redeemed and that, on and after the Redemption Date,
upon surrender of such Note, a new Note or Notes in principal amount at maturity
equal to the unredeemed portion thereof will be reissued; and

       

      (vii)           that,
if any Note contains a CUSIP, CINS or ISIN number as provided in Section 2.13,
no representation is being made as to the correctness of the CUSIP, CINS or ISIN
number either as printed on the Notes or as contained in the notice of
redemption and that reliance may be placed only on the other identification
numbers printed on the Notes.

       

      At
FelCor LP’s request (which request may be revoked by FelCor LP at any
time prior to the time at which the Trustee shall have given such notice to the
Holders), made in writing to the Trustee at least 45 days (or such shorter
period as shall be satisfactory to the Trustee) before a Redemption Date, the
Trustee shall give the notice of redemption in the name and at the expense of
FelCor LP; provided that the text of the
notice of redemption shall be prepared by FelCor LP.  If,
however, FelCor LP gives such notice to the Holders, FelCor LP shall
concurrently deliver to the Trustee an Officers’ Certificate stating that such
notice has been given.

       

      
        
           

        

        
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      SECTION
3.05.        Effect of Notice of
Redemption.

       

      Once
notice of redemption is mailed, Notes called for redemption become due and
payable on the Redemption Date and at the Redemption Price.  Upon
surrender of any Notes to the Paying Agent, such Notes shall be paid at the
Redemption Price, plus accrued interest and Additional Interest, if any, to the
Redemption Date.

       

      Notice of
redemption shall be deemed to be given when mailed, whether or not the Holder
receives the notice.  In any event, failure to give such notice, or
any defect therein, shall not affect the validity of the proceedings for the
redemption of Notes held by Holders to whom such notice was properly
given.

       

      SECTION
3.06.                                 Deposit of Redemption
Price.

       

      On or
prior to any Redemption Date, FelCor LP shall deposit with the Paying Agent
(or, if FelCor LP is acting as its own Paying Agent, shall segregate and
hold in trust as provided in Section 2.05) money sufficient to pay the
Redemption Price of and accrued interest on all Notes to be redeemed on that
date other than Notes or portions thereof called for redemption on that date
that have been delivered by FelCor LP to the Trustee for
cancellation.

       

      SECTION
3.07                                 Payment of Notes Called for
Redemption.

       

      If notice
of redemption has been given in the manner provided above, the Notes or portion
of Notes specified in such notice to be redeemed shall become due and payable on
the Redemption Date at the Redemption Price stated therein, together with
accrued interest and Additional Interest, if any, to such Redemption Date, and
on and after such date (unless FelCor LP shall default in the payment of
such Notes at the Redemption Price and accrued interest and Additional Interest,
if any, to the Redemption Date, in which case the principal, until paid, shall
bear interest from the Redemption Date at the rate prescribed in the Notes),
such Notes shall cease to accrue interest.  Upon surrender of any Note
for redemption in accordance with a notice of redemption, such Note shall be
paid and redeemed by FelCor LP at the Redemption Price, together with
accrued interest and Additional Interest, if any, to the Redemption Date; provided that installments of
interest whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders registered as such at the close of business on the
relevant Regular Record Date.

       

      SECTION
3.08.                                 Notes Redeemed in
Part.

       

      Upon
surrender of any Note that is redeemed in part, FelCor LP shall execute and
the Trustee shall authenticate and deliver to the Holder a new Note equal in
principal amount to the unredeemed portion of such surrendered
Note.

       

      SECTION
3.09.                              Special Mandatory
Redemption.

       

      In the
event that the Assumption is not consummated for any reason on or prior to the
Outside Date, on the Mandatory Redemption Date, FelCor LP will redeem all the
Notes (the “Mandatory
Redemption”), at a redemption price equal to 100% of gross proceeds
resulting from the sale of the Notes, plus accreted original issue discount,
plus accrued and unpaid interest to the Mandatory Redemption Date (the “Mandatory Redemption
Price”).  The “Mandatory Redemption Date”
means the earlier of (a) December 2, 2009 (the “Outside Date”) and (b) the
date pursuant to which FelCor LP earlier redeems the Notes in accordance with
the terms of the Escrow Agreement.  Upon the Mandatory Redemption
Date, the Escrow Agent will deposit with the Trustee money sufficient to pay the
Mandatory Redemption Price (any shortfall to be provided by FelCor LP) in
accordance with the terms of the Escrow Agreement.

       

      ARTICLE
FOUR

       

      COVENANTS

       

      SECTION
4.01.                          Payment of
Notes.

       

      FelCor LP
shall pay the principal of, premium, if any, and interest on the Notes on the
dates and in the manner provided in the Notes and this Indenture.  An
installment of principal, premium, if any, or interest shall be considered paid
on the date due if the Trustee or Paying Agent (other than FelCor LP, a
Subsidiary of FelCor LP, a Guarantor or any Affiliate of any of them) holds
on that date money designated for and sufficient to pay the
installment.  If FelCor LP, any Subsidiary of FelCor LP, a
Guarantor or any Affiliate of any of them, acts as Paying Agent, an installment
of principal, premium, if any, or interest shall be considered paid on the due
date if the entity acting as Paying Agent complies with the last sentence of
Section 2.05.  As provided in Section 6.09, upon any bankruptcy or
reorganization procedure relative to FelCor LP or any Guarantor, the
Trustee shall serve as the Paying Agent and conversion agent, if any, for the
Notes.

       

      
        
           

        

        
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      FelCor LP
shall pay interest on overdue principal, premium, if any, and interest on
overdue installments of interest, to the extent lawful, at the rate per annum
specified in the Notes.

       

      SECTION
4.02.                                Maintenance of Office or
Agency.

       

       FelCor LP
shall maintain in the Borough of Manhattan, The City of New York an office or
agency where Notes may be surrendered for registration of transfer or exchange
or for presentation for payment and where notices and demands to or upon
FelCor LP in respect of the Notes and this Indenture may be
served.  FelCor LP will give prompt written notice to the Trustee
of the location, and any change in the location, of such office or
agency.  If at any time FelCor LP shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or
served at the address of the Trustee set forth in Section 10.02.

       

      FelCor LP
may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations; provided that no such
designation or rescission shall in any manner relieve FelCor LP of its
obligation to maintain an office or agency in the Borough of Manhattan, The City
of New York for such purposes.  FelCor LP shall give prompt
written notice to the Trustee of any such designation or rescission and of any
change in the location of any such other office or agency.

       

      FelCor LP
hereby initially designates U.S. Bank National Association, 100 Wall Street,
Suite 1600, New York, New York  10005, as agent for FelCor LP,
located in the Borough of Manhattan, The City of New York, as such office of
FelCor LP in accordance with Section 2.04.

       

      SECTION
4.03.                                Limitation on
Indebtedness.

       

      (a)           Neither
FelCor LP nor FelCor shall, and neither FelCor LP nor FelCor shall
permit any of their respective Restricted Subsidiaries to, Incur any
Indebtedness if, immediately after giving effect to the Incurrence of such
additional Indebtedness, the aggregate principal amount of all outstanding
Indebtedness of FelCor LP, FelCor and their respective Restricted
Subsidiaries on a consolidated basis determined in accordance with GAAP is
greater than 60% of Adjusted Total Assets.

       

      (b)           Neither
FelCor LP nor FelCor shall, and neither FelCor LP nor FelCor shall
permit any of their respective Restricted Subsidiaries to, Incur any Subsidiary
Debt or any Secured Indebtedness if, immediately after giving effect to the
Incurrence of such additional Subsidiary Debt or Secured Indebtedness, the
aggregate principal amount of all outstanding Subsidiary Debt and Secured
Indebtedness of FelCor LP, FelCor and their respective Restricted
Subsidiaries on a consolidated basis is greater than 45% of Adjusted Total
Assets.

       

      (c)           Neither
FelCor LP nor FelCor shall, and neither FelCor LP nor FelCor shall
permit any of their respective Restricted Subsidiaries to, Incur any
Indebtedness; provided
that FelCor LP or FelCor or any of their respective Restricted Subsidiaries
may Incur Indebtedness if, after giving effect to the Incurrence of such
Indebtedness and the receipt and application of the proceeds therefrom, the
Interest Coverage Ratio of FelCor LP, FelCor and their respective
Restricted Subsidiaries on a consolidated basis would be greater than (i) prior
to the second anniversary of the Closing Date, 1.5 to 1, (ii) on or after the
second anniversary of the Closing Date but prior to the third anniversary of the
Closing Date, 1.75 to 1 and (iii) thereafter, 2.0 to 1.

       

      (d)             Notwithstanding
paragraph (a), (b) or (c) of this Section 4.03, FelCor LP or FelCor or any
of their respective Restricted Subsidiaries may Incur each and all of the
following:

       

      (i)           Indebtedness
outstanding under any Line of Credit at any time in an aggregate principal
amount not to exceed the greater of (a) $125 million or (b) 1.5 times
Consolidated EBITDA for the then most recent four fiscal quarters calculated
prior to such Transaction Date for which reports have been filed with the
Commission or provided to the Trustee pursuant to Section 4.19, less any amount
of such Indebtedness under any Line of Credit permanently repaid as provided
under Section 4.11;

       

      (ii)           Indebtedness
owed to:

       

      
        
           

        

        
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      (A)           FelCor LP
or FelCor evidenced by an unsubordinated promissory note, or

       

      (B)           to
any Restricted Subsidiary;

       

      provided that any event which
results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary
or any subsequent transfer of such Indebtedness (other than to FelCor LP or
FelCor or any other Restricted Subsidiary) shall be deemed, in each case, to
constitute an Incurrence of such Indebtedness not permitted by this clause
(ii);

       

      (iii)           Indebtedness
issued in exchange for, or the net proceeds of which are used to refinance or
refund, outstanding Indebtedness (other than Indebtedness Incurred under clause
(i), (ii), (iv), (vi) or (vii) of this paragraph (d)) and any refinancings
thereof in an amount not to exceed the amount so refinanced or refunded (plus
premiums, accrued interest, fees and expenses); provided that Indebtedness
the proceeds of which are used to refinance or refund the Notes or Indebtedness
pari passu with or
subordinated in right of payment to, the Notes shall only be permitted under
this clause (iii) if:

       

      (A)           in
case the Notes are refinanced in part or the Indebtedness to be refinanced is
pari passu in right of
payment with the Notes, such new Indebtedness, by its terms or by the terms of
any agreement or instrument pursuant to which such new Indebtedness is
outstanding, is pari
passu in right of payment with or is expressly made subordinate in right
of payment to the remaining Notes,

       

      (B)           in
case the Indebtedness to be refinanced is subordinated in right of payment to
the Notes, such new Indebtedness, by its terms or by the terms of any agreement
or instrument pursuant to which such new Indebtedness is issued or remains
outstanding, is expressly made sub-ordinate in right of payment to the Notes at
least to the extent that the Indebtedness to be refinanced is subordinated to
the Notes, and

       

      (C)           such
new Indebtedness, determined as of the date of Incurrence of such new
Indebtedness, does not mature prior to the Stated Maturity of the Indebtedness
to be refinanced, and the Average Life of such new Indebtedness is at least
equal to the remaining Average Life of the Indebtedness to be refinanced or
refunded;

       

      provided further that in no
event may Indebtedness of FelCor LP or FelCor or a Subsidiary Guarantor
that is pari passu with
or subordinated in right of payment to the Notes be refinanced by means of any
Indebtedness of any Restricted Subsidiary that is not a Subsidiary Guarantor
pursuant to this clause (iii);

       

      
        	
                 
      

              	
                (iv)

              	
                Indebtedness:

              

      

       

      (A)           in
respect of performance, surety or appeal bonds provided in the ordinary course
of business,

       

      (B)           under
Currency Agreements and Interest Rate Agreements; provided that such agreements
(1) are designed solely to protect FelCor LP or FelCor or any of their
respective Restricted Subsidiaries against fluctuations in foreign currency
exchange rates or interest rates and (2) do not increase the Indebtedness of the
obligor outstanding at any time other than as a result of fluctuations in
foreign currency exchange rates or interest rates or by reason of fees,
indemnities and compensation payable thereunder, and

       

      (C)           arising
from agreements providing for indemnification, adjustment of purchase price or
similar obligations, or from Guarantees or letters of credit, surety bonds or
performance bonds securing any obligations of FelCor LP or FelCor or any of
their respective Restricted Subsidiaries pursuant to such agreements, in any
case Incurred in connection with the disposition of any business, assets or
Restricted Subsidiary (other than Guarantees of Indebtedness Incurred by any
Person acquiring all or any portion of such business, assets or Restricted
Subsidiary for the

       

      
         

        
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      purpose
of financing such acquisition), in a principal amount not to exceed the gross
proceeds actually received by FelCor LP, FelCor and their respective
Restricted Subsidiaries on a consolidated basis in connection with such
disposition;

       

      
        	
                 
      

              	
                (v)

              	
                Indebtedness
      of FelCor LP or FelCor, to the extent the net proceeds thereof are
      promptly

              

      

       

      (A)           used
to purchase Notes tendered in an Offer to Purchase made as a result of a Change
in Control, or

       

      (B)           deposited
to defease the Notes in accordance with Section 8.02 or 8.03;

       

      (vi)           Guarantees
of the Notes and Guarantees of Indebtedness of FelCor LP or FelCor by any
of their respective Restricted Subsidiaries, provided the guarantee of
such Indebtedness is permitted by and made in accordance with Section 4.07;
or

       

      (vii)           Additional
Pari Passu Indebtedness so long as (A) immediately prior to, and after giving
effect to, such Incurrence a Default or an Event of Default shall not have
occurred and be continuing and (B) such Incurrence is otherwise permitted under
paragraphs (a), (b) and (c) above.

       

      (e)           Notwithstanding
any other provision of this Section 4.03, the maximum amount of Indebtedness
that FelCor LP or FelCor or any of their respective Restricted Subsidiaries
may Incur pursuant to this Section 4.03 shall not be deemed to be exceeded, with
respect to any outstanding Indebtedness due solely to the result of fluctuations
in the exchange rates of currencies.

       

      (f)           For
purposes of determining any particular amount of Indebtedness under this Section
4.03:

       

      (1)           Guarantees,
Liens or obligations with respect to letters of credit supporting Indebtedness
otherwise included in the determination of such particular amount shall not be
included, and

       

      (2)           any
Liens granted pursuant to the equal and ratable provisions referred to in
Section 4.09 shall not be treated as Indebtedness.

       

      For
purposes of determining compliance with this Section 4.03, in the event that an
item of Indebtedness meets the criteria of more than one of the types of
Indebtedness described in the above clauses (other than Indebtedness referred to
in clause (2) of the preceding sentence), each of FelCor LP and FelCor, in
its sole discretion, shall classify such item of Indebtedness and only be
required to include the amount and type of such Indebtedness in one of such
clauses; provided that
FelCor LP and FelCor must classify such item of Indebtedness in an
identical fashion; provided further that FelCor LP
and FelCor may divide and classify an item of Indebtedness in one or more of the
types of Indebtedness and may later reclassify all or a portion of such item of
Indebtedness, in any manner that complies with this Section 4.03.

       

      SECTION
4.04.                                Limitation on Restricted
Payments.

       

      Neither
FelCor LP nor FelCor shall, and neither FelCor LP nor FelCor shall
permit any of their respective Restricted Subsidiaries to, directly or
indirectly,

       

      (i)           declare
or pay any dividend or make any distribution on or with respect to its Capital
Stock held by Persons other than FelCor LP or FelCor or any of their
respective Restricted Subsidiaries, other than:

       

      (A)           dividends
or distributions payable solely in shares of its Capital Stock (other than
Disqualified Stock) or in options, warrants or other rights to acquire shares of
such Capital Stock, and

       

      (B)           pro rata dividends or
distributions on Common Stock of FelCor LP or any Restricted Subsidiary
held by minority stockholders;

       

      
        
           

        

        
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                (ii)

              	
                purchase,
      redeem, retire or otherwise acquire for value any shares of Capital Stock
      of:

              

      

       

      (A)           FelCor LP,
FelCor or an Unrestricted Subsidiary (including options, warrants or other
rights to acquire such shares of Capital Stock) held by any Person other than
FelCor LP or FelCor or any of their respective Restricted Subsidiaries
unless in connection with such purchase the Unrestricted Subsidiary is
designated as a Restricted Subsidiary, or

       

      (B)           a
Restricted Subsidiary (including options, warrants or other rights to acquire
such shares of Capital Stock) held by an Affiliate of FelCor LP or FelCor
(other than a Wholly Owned Restricted Subsidiary) or any holder (or any
Affiliate of such holder) of 5% or more of the Capital Stock of FelCor LP
or FelCor;

       

      (iii)           make
any voluntary or optional principal payment, redemption, repurchase, defeasance,
or other acquisition or retirement for value, of Indebtedness of FelCor LP
or FelCor that is subordinated in right of payment to the Notes; or

       

      (iv)           make
an Investment, other than a Permitted Investment, in any Person

       

      (such
payments or any other actions described in clauses (i) through (iv) above being
collectively “Restricted
Payments”) if, at the time of, and after giving effect to, the proposed
Restricted Payment:

       

      (A) a Default
or Event of Default shall have occurred and be continuing,

       

      (B) FelCor LP
or FelCor could not Incur at least $1.00 of Indebtedness under paragraphs (a),
(b) and (c)(iii) of Section 4.03 (for the avoidance of doubt, clause (iii) of
such paragraph (c) will be deemed operative at the time of any Restricted
Payment), or

       

      (C) the
aggregate amount of all Restricted Payments (the amount, if other than in cash,
to be determined in good faith by the Board of Directors, whose determination
shall be conclusive and evidenced by a Board Resolution) made after September
30, 2009 shall exceed the sum of:

       

      (1) 95% of
the aggregate amount of the Funds From Operations (or, if the Funds From
Operations is a loss, minus 100% of the amount of such loss) (determined by
excluding income resulting from transfers of assets by FelCor LP or FelCor
or any of their respective Restricted Subsidiaries to an Unrestricted
Subsidiary) accrued on a cumulative basis during the period (taken as one
accounting period) beginning on October 1, 2009 and ending on the last day of
the last fiscal quarter preceding the Transaction Date for which reports have
been filed with the Commission or provided to the Trustee pursuant to Section
4.19, plus

       

      (2) the
aggregate Net Cash Proceeds received by FelCor LP or FelCor after September
30, 2009 from the issuance and sale permitted by this Indenture of its Capital
Stock (other than Disqualified Stock) to a Person who is not a Subsidiary of
FelCor LP or FelCor, including an issuance or sale permitted by this
Indenture of Indebtedness of FelCor LP or FelCor for cash sub-sequent to
September 30, 2009 upon the conversion of such Indebtedness into Capital Stock
(other than Disqualified Stock) of FelCor LP or FelCor, or from the
issuance to a Person who is not a Subsidiary of FelCor LP or FelCor of any
options, warrants or other rights to acquire Capital Stock of FelCor LP or
FelCor (in each case, exclusive of any Disqualified Stock or any options,
warrants or other rights that are redeemable at the option of the holder, or are
required to be redeemed, prior to the Stated Maturity of the Notes), plus

       

      (3)           an
amount equal to the net reduction in Investments (other than reductions in
Permitted Investments) in any Person resulting from payments of interest on
Indebtedness, dividends, repayments of loans or advances, or other transfers of
assets, in each case to FelCor LP or FelCor or any of their respective
Restricted Subsidiaries or from the Net Cash Proceeds from the sale of any such
Investment (except, in each case, to the extent any such payment or proceeds
are

       

      
        
           

        

        
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      included
in the calculation of Funds From Operations) or from redesignations of
Unrestricted Subsidiaries as Restricted Subsidiaries (valued in each case as
provided in the definition of “Investments”) not to exceed, in each case, the
amount of Investments previously made by FelCor LP, FelCor and their
respective Restricted Subsidiaries in such Person or Unrestricted Subsidiary,
plus

       

      (5)           the
purchase price of non-cash tangible assets acquired in exchange for an issuance
of Capital Stock (other than Disqualified Stock) of FelCor LP or FelCor
subsequent to September 30, 2009.

       

      Notwithstanding
the foregoing, FelCor LP or FelCor may declare or pay any dividend or make
any distribution, so long as FelCor believes in good faith that FelCor qualifies
as a REIT under the Code  and the declaration or payment of any
dividend or the making of any distribution is necessary either to maintain
FelCor’s status as a REIT under the Code for any calendar year or to enable
FelCor to avoid payment of any tax for any calendar year that could be avoided
by reason of a distribution by FelCor to its shareholders, with such
distribution to be made as and when determined by FelCor, whether during or
after the end of, the relevant calendar year, if:

       

      (1)           the
aggregate principal amount of all outstanding Indebtedness of FelCor LP or
FelCor on a consolidated basis at such time is less than 80% of Adjusted Total
Assets, and

       

      (2)           no
Default or Event of Default shall have occurred and be continuing.

       

      The
foregoing provisions of this Section 4.04 shall not be violated by reason
of:

       

      (i) the
payment of any dividend within 60 days after the date of declaration thereof if,
at said date of declaration, such payment would comply with the foregoing
paragraph;

       

      (ii) the
redemption, repurchase, defeasance or other acquisition or retirement for value
of Indebtedness that is subordinated in right of payment to the Notes including
premium, if any, and accrued and unpaid interest, with the proceeds of, or in
exchange for, Indebtedness Incurred under clause (iii) of paragraph (d) of
Section 4.03;

       

      (iii) the
repurchase, redemption or other acquisition of Capital Stock of FelCor LP
or FelCor or an Unrestricted Subsidiary (or options, warrants or other rights to
acquire such Capital Stock) in exchange for, or out of the proceeds of a
substantially concurrent issuance of, shares of Capital Stock (other than
Disqualified Stock) of FelCor LP or FelCor (or options, warrants or other
rights to acquire such Capital Stock);

       

      (iv) the
making of any principal payment on, or the repurchase, redemption, retirement,
defeasance or other acquisition for value of, Indebtedness of FelCor LP or
FelCor which is subordinated in right of payment to the Notes in exchange for,
or out of the proceeds of, a substantially concurrent issuance of, shares of the
Capital Stock (other than Disqualified Stock) of FelCor LP or FelCor (or
options, warrants or other rights to acquire such Capital Stock);

       

      (v) payments
or distributions, to dissenting stockholders pursuant to applicable law pursuant
to or in connection with a consolidation, merger or transfer of assets that
complies with the provisions of this Indenture applicable to mergers,
consolidations and transfers of all or substantially all of the property and
assets of FelCor LP or FelCor;

       

      (vi) the
payment of cash (A) in lieu of the Issuance of fractional shares of Equity
Interests upon conversion, redemption or exchange of securities convertible into
or exchangeable for Equity Interests of FelCor and (B) in lieu of the Issuance
of whole shares of Equity Interests upon conversion, redemption or exchange of
securities convertible into or exchangeable for Equity Interests of FelCor in an
aggregate amount not to exceed $1 million;

       

      
         

        
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      (vii) the
acquisition or re-acquisition, whether by forfeiture or in connection with
satisfying applicable payroll withholding tax obligations, of Capital Stock of
FelCor or FelCor LP in connection with the administration of their equity
compensation programs in the ordinary course of business;

       

      (viii) the
declaration or payment of any cash dividend or other cash distribution in
respect of Capital Stock of FelCor, FelCor LP or its respective Restricted
Subsidiaries constituting Preferred Stock, so long as the Interest Coverage
Ratio contemplated by paragraph (c) of Section 4.03 shall be greater than or
equal to 1.7 to 1;

       

      (ix) Investments
in any Person or Persons in an aggregate amount not to exceed $100
million;

       

      (x) Restricted
Payments in an aggregate amount not to exceed $50 million, provided that at the time of,
and after giving effect to, the proposed Restricted Payment FelCor LP and
FelCor could have Incurred at least $1.00 of Indebtedness under paragraphs (a),
(b) and (c)(iii) of Section 4.03 (for the avoidance of doubt, clause (iii) of
such paragraph (c) will be deemed operative at the time of any Restricted
Payment); or

       

      (xi) the
repayment, defeasance, redemption, repurchase or other acquisition of
Subordinated Indebtedness or Disqualified Stock of FelCor or FelCor LP (a)
in exchange for, or out of the net cash proceeds of the substantially concurrent
sale (other than to any Subsidiary) of, the Disqualified Stock of FelCor or
FelCor LP, or (b) pursuant to a required change of control offer or asset
sale offer arising from a Change of Control or Asset Sale, as the case may be,
provided that such
repayment, repurchase, redemption, acquisition or retirement occurs after all
notes tendered by holders in connection with a related Offer to Purchase have
been repurchased, redeemed or acquired for value;

       

      provided that, except in the
case of clauses (i) and (iii), no Default or Event of Default shall have
occurred and be continuing or occur as a direct consequence of the actions or
payments set forth therein.  Each Restricted Payment permitted
pursuant to this paragraph (other than the Restricted Payment referred to in
clause (ii) of this paragraph, an exchange of Capital Stock for Capital Stock or
Indebtedness referred to in clause (iii) or (iv) of this paragraph, an
Investment referred to in clause (ix) of this paragraph or a Restricted Payment
referred to in clause (x) of this paragraph), and the Net Cash Proceeds from any
issuance of Capital Stock referred to in clauses (iii) and (iv), shall be
included in calculating whether the conditions of clause (C) of the first
paragraph of this Section 4.04 have been met with respect to any subsequent
Restricted Payments.

       

      SECTION
4.05.            Limitation on Dividend and Other
Payment Restrictions Affecting Restricted Subsidiaries

       

      .  Neither
FelCor LP nor FelCor shall, and neither FelCor LP nor FelCor shall
permit any of their respective Restricted Subsidiaries to, create or otherwise
cause or suffer to exist or become effective any consensual encumbrance or
restriction of any kind on the ability of any Restricted Subsidiary
to:

       

      (i)           pay
dividends or make any other distributions permitted by applicable law on any
Capital Stock of such Restricted Subsidiary owned by FelCor LP or FelCor or
any of their respective Restricted Subsidiaries,

       

      (ii)           pay
any Indebtedness owed to FelCor LP, FelCor or any other Restricted
Subsidiary,

       

      (iii)           make
loans or advances to FelCor LP, FelCor or any other Restricted Subsidiary,
or

       

      (iv)           transfer
its property or assets to FelCor LP, FelCor or any other Restricted
Subsidiary.

       

      The
foregoing provisions shall not restrict any encumbrances or
restrictions:

       

      (1)           existing
on the Closing Date as set forth in this Indenture and any other agreement in
effect on the Closing Date, and any extensions, refinancings, renewals or
replacements of such agreements; provided that the
encumbrances and restrictions in any such extensions, refinancings, renewals or
replace

       

      
         

        
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      ments are
no less favorable in any material respect to the Holders than those encumbrances
or restrictions that are then in effect and that are being extended, refinanced,
renewed or replaced;

       

      (2) existing
under or by reason of applicable law;

       

      (3) existing
with respect to any Person or the property or assets of such Person acquired by
FelCor LP, FelCor or any Restricted Subsidiary, existing at the time of
such acquisition and not incurred in contemplation thereof, which encumbrances
or restrictions are not applicable to any Person or the property or assets of
any Person other than such Person or the property or assets of such Person so
acquired;

       

      (4) in the
case of clause (iv) of the first paragraph of this Section 4.05,

       

      (A) that
restrict in a customary manner the subletting, assignment or transfer of any
property or asset that is a lease, license, conveyance or contract or similar
property or asset,

       

      (B) existing
by virtue of any transfer of, agreement to transfer, option or right with
respect to, or Lien on, any property or assets of FelCor LP, FelCor or any
Restricted Subsidiary not otherwise prohibited by this Indenture,
or

       

      (C) arising
or agreed to in the ordinary course of business, not relating to any
Indebtedness, and that do not, individually or in the aggregate, detract from
the value of property or assets of FelCor LP, FelCor or any Restricted
Subsidiary in any manner material to FelCor LP, FelCor and their respective
Restricted Subsidiaries taken as a whole;

       

      (5) with
respect to a Restricted Subsidiary and imposed pursuant to an agreement that has
been entered into for the sale or disposition of all or substantially all of the
Capital Stock of, or property and assets of, such Restricted Subsidiary;
or

       

      (6) contained
in the terms of any Indebtedness or any agreement pursuant to which such
Indebtedness was issued if:

       

      (A) the
encumbrance or restriction is not materially more disadvantageous to the Holders
of the Notes than is customary in comparable financings (as determined by
FelCor LP and FelCor), and

       

      (B) each of
FelCor LP and FelCor determines that any such encumbrance or restriction
will not materially affect such Persons’ ability to make principal or interest
payments on the Notes.

       

      Nothing
contained in this Section 4.05 shall prevent FelCor LP, FelCor or any
Restricted Subsidiary from:

       

      (1)           creating,
incurring, assuming or suffering to exist any Liens otherwise permitted in
Section 4.09, or

       

      (2)           restricting
the sale or other disposition of property or assets of FelCor LP or FelCor
or any of their respective Restricted Subsidiaries that secure Indebtedness of
FelCor LP, FelCor or any of their respective Restricted
Subsidiaries.

       

      
        	
                 
      

              	
                SECTION
      4.06.

              	
                Limitation on the Issuance and
      Sale of Capital Stock of Restricted
  Subsidiaries

              

      

       

      .  Neither
FelCor LP nor FelCor shall sell, and neither FelCor LP nor FelCor
shall permit any of their respective Restricted Subsidiaries, directly or
indirectly, to issue or sell, any shares of Capital Stock of a Restricted
Subsidiary (including options, warrants or other rights to purchase shares of
such Capital Stock) except:

       

      
        	
                 
      

              	
                (i)

              	
                to
      FelCor LP, FelCor or a Wholly Owned Restricted
      Subsidiary;

              

      

       

      
        
           

        

        
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      (ii)           issuances
of director’s qualifying shares or sales to individuals of shares of Restricted
Subsidiaries, to the extent required by applicable law or to the extent
necessary to obtain local liquor licenses;

       

      (iii)           if,
immediately after giving effect to such issuance or sale, such Restricted
Subsidiary would no longer constitute a Subsidiary and any Investment in such
Person remaining after giving effect to such issuance or sale would have been
permitted to be made under Section 4.04 if made on the date of such issuance or
sale; or

       

      (iv)           sales
of not greater than 20% of the Capital Stock of a newly-created Restricted
Subsidiary made in connection with, or in contemplation of, the acquisition or
development by such Restricted Subsidiary of one or more properties to any
Person that is, or is an Affiliate of, the entity that provides, franchise,
management or other services, as the case may be, to one or more properties
owned by such Restricted Subsidiary.

       

      SECTION
4.07                          Limitation on Issuances of
Guarantees by Restricted Subsidiaries

       

      .  Neither
FelCor LP nor FelCor will permit any of their respective Restricted
Subsidiaries, directly or indirectly, to Guarantee any Indebtedness of
FelCor LP, FelCor or any Subsidiary Guarantor (“Guaranteed Indebtedness”),
unless:

       

      (i)           such
Restricted Subsidiary substantially simultaneously executes and delivers a
supplemental indenture to this Indenture providing for a Subsidiary Guarantee by
such Restricted Subsidiary, and

       

      (ii)           such
Restricted Subsidiary waives and will not in any manner whatsoever claim or take
the benefit or advantage of, any rights of reimbursement, indemnity or
subrogation or any other rights against FelCor LP, FelCor or any other
Restricted Subsidiary as a result of any payment by such Restricted Subsidiary
under its Subsidiary Guarantee;

       

      provided that this Section
4.07 shall not be applicable to any Guarantee of any Restricted Subsidiary that
existed at the time such Person became a Restricted Subsidiary and was not
Incurred in connection with, or in contemplation of, such person becoming a
Restricted Subsidiary.  If the Guaranteed Indebtedness
is:

       

      (A)             pari passu with the Notes or
Subsidiary Guarantee, then the Guarantee of such Guaranteed Indebtedness shall
be pari passu in right
of payment with, or subordinated in right of payment to, the Subsidiary
Guarantee, or

       

      (B)             subordinate
in right of payment to the Notes, then the Guarantee of such Guaranteed
Indebtedness shall be subordinated in right of payment to the Subsidiary
Guarantee at least to the extent that the Guaranteed Indebtedness is
subordinated in right of payment to the Notes or Subsidiary
Guarantee.

       

      SECTION
4.08                                Limitation on Transactions with
Affiliates

       

      .  Neither
FelCor LP nor FelCor shall, and neither FelCor LP nor FelCor shall
permit any of their respective Restricted Subsidiaries to, directly or
indirectly, enter into, renew or extend any transaction (including, without
limitations, the purchase, sale, lease or exchange of property or assets, or the
rendering of any service) with any holder (or any Affiliate of such holder) of
5% or more of any class of Capital Stock of FelCor LP or FelCor or with any
Affiliate of FelCor LP or FelCor or any of their respective Restricted
Subsidiaries, except upon fair and reasonable terms no less favorable to
FelCor LP, FelCor or such Restricted Subsidiary than could be obtained, at
the time of such transaction or, if such transaction is pursuant to a written
agreement, at the time of the execution of the agreement providing therefor, in
a comparable arm’s-length transaction with a Person that is not such a holder or
an Affiliate.

       

      The
foregoing limitation shall not limit, and shall not apply to: (i) transactions
(A) approved by a majority of the independent directors of FelCor or (B) for
which FelCor LP, FelCor or any Restricted Subsidiary delivers to the
Trustee a written opinion of a nationally recognized investment banking firm
stating that the transaction is fair to FelCor LP, FelCor or such
Restricted Subsidiary from a financial point of view; (ii) any transaction
solely between FelCor LP or FelCor and any of their respective Wholly Owned
Restricted Subsidiaries or solely between Wholly Owned Restricted Subsidiaries;
(iii) the payment of reasonable and customary fees and expenses to directors of
FelCor

       

      
        
           

        

        
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      who are
not employees of FelCor; (iv) any payments or other transactions pursuant to any
tax sharing agreement between FelCor LP or FelCor and any other Person with
which FelCor LP or FelCor files a consolidated tax return or with which
FelCor LP or FelCor is part of a consolidated group for tax purposes; (v)
any Restricted Payments not prohibited by Section 4.04; (vi) transactions
pursuant to agreements or arrangements in effect on the Closing Date or any
amendment, modification or supplement thereto or replacement thereof, as long as
such agreement or arrangement, as so amended, modified, supplemented or
replaced, taken as a whole, is not more disadvantageous to FelCor,
FelCor LP and their Restricted Subsidiaries than the original agreement or
arrangement in existence on the Closing Date; (vii) any employment, consulting,
service or termination agreement, or reasonable and customary indemnification
arrangements, entered into by FelCor, FelCor LP or any of their Restricted
Subsidiaries with officers and employees of FelCor or any of its Restricted
Subsidiaries that are Affiliates of FelCor or FelCor LP and the payment of
compensation to such officers and employees (including amounts paid pursuant to
employee benefit plans, employee stock option or similar plans) so long as such
agreement has been approved by the Board of Directors of FelCor; (viii)
commission, payroll, travel and similar advances or loans (including payment or
cancellation thereof) to officers and employees of FelCor or any of its
Restricted Subsidiaries; (ix) any transaction with any Person that is not an
Affiliate immediately before the consummation of such transaction that becomes
an Affiliate as a result of such transaction; or (x) any transaction with a
joint venture, partnership, limited liability company or other entity that would
constitute an Affiliate Transaction solely because FelCor LP, FelCor or a
Restricted Subsidiary owns an equity interest in such joint venture,
partnership, limited liability company or other
entity.  Notwithstanding the foregoing, any transaction or series of
related transactions covered by the first paragraph of this Section 4.08 and not
covered by clauses (ii) through (x) of this paragraph, (a) the aggregate amount
of which exceeds $5 million in value, must be approved or determined to be fair
in the manner provided for in clause (i)(A) or (B) above, and (b) the aggregate
amount of which exceeds $10 million in value, must be determined to be fair in
the manner provided for in clause (i)(B) above.

       

      SECTION
4.09              Limitation on
Liens.

       

      Neither
FelCor LP nor FelCor shall, and shall not permit any Restricted Subsidiary
to, directly or indirectly, create, incur, assume or otherwise cause to exist
any Lien (except a Permitted Lien) that secures obligations under any
Indebtedness (any such Lien, an “Additional Lien”) on any
asset or properties of FelCor LP or FelCor or any Restricted Subsidiary
that constitutes Collateral, Additional Restricted Assets or any income or
profits therefrom, or assign or convey any right to receive income therefrom,
other than (i) the Notes and the Note Guarantee of any Guarantor and (ii) any
Additional Pari Passu Indebtedness to the extent the Incurrence of such
Indebtedness is permitted under Section 4.03; provided that FelCor LP
or FelCor or any Restricted Subsidiary shall not, directly or indirectly,
create, incur, assume or otherwise cause to exist any such Additional Lien with
respect to any asset or property that does not constitute Collateral or
Additional Restricted Assets (or any income or profits therefrom, or right to
receive income therefrom).

       

      SECTION
4.10            Limitation on Collateral Asset
Sales.  

       

      Neither
FelCor LP nor FelCor shall, and neither FelCor LP nor FelCor shall
permit any of their respective Restricted Subsidiaries to, consummate any
Collateral Asset Sale, unless:

       

      (i) FelCor LP,
FelCor or such Restricted Subsidiary, as the case may be, receives cash
consideration at the time of such Collateral Asset Sale at least equal to the
fair market value of the Collateral sold or disposed of; or

       

      (ii) FelCor LP,
FelCor or such Restricted Subsidiary pledges to the Collateral Agent as
replacement collateral owned or leased real property (such pledge of owned or
leased real property consisting of either (a) the pledge to the Collateral Agent
of owned or leased real property already owned thereby as replacement collateral
or (b) the purchase and subsequent pledge of new owned or leased real property,
in each case within 60 days of such sale) (in each case, the “Replacement Property
Collateral”), so long as (1) the Replacement Property Collateral in such
Collateral Asset Sale has a fair market value (as determined by the report or
analysis of a nationally recognized independent appraiser selected by
FelCor LP and delivered to the Trustee within 30 days of such substitution)
at least equal to the value of the Collateral as of the date of disposition of
such Collateral, (2) the Replacement Property Collateral in such Collateral
Asset Sale has a Collateral EBITDA that is no worse than the Collateral EBITDA
of the Collateral sold for the then most recent four fiscal quarters prior to
such Collateral Asset Sale for which reports have been filed with the Commission
or provided to the Trustee pursuant to Section 4.19, (3) the Replacement
Property Collateral is owned by a Subsidiary Guarantor that is a Wholly-Owned
Subsidiary of FelCor LP or FelCor and all the

       

      
        
           

        

        
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      equity
interests in any such Wholly Owned Subsidiary (the “Replacement Pledged
Equity”), along with the Replacement Property Collateral, are pledged to the
Collateral Agent for the benefit of the Holders, (4) the Collateral Agent has a
first priority Lien in the Replacement Property Collateral and the Replacement
Pledged Equity (collectively, the “Replacement Collateral”) and receives such
Collateral Documents, title insurance, surveys, environmental reports, legal
opinions and other documents and instruments as the Collateral Agent may
commercially reasonably request (or in lieu thereof, such
Replacement  Collateral will be encumbered for the benefit of the
Notes in a manner that is not materially worse than the manner in which the
Collateral sold or disposed of was so encumbered, so long as (x) after giving
effect to such sale or disposition no more than six Restricted Hotels would not
constitute Collateral and (y) commercially reasonable efforts are taken with
respect to such Replacement Collateral in order for it to constitute Collateral)
and (5) the granting of a Lien on such Replacement Collateral is permitted by
the terms of all other material Indebtedness of FelCor LP and FelCor and
their Restricted Subsidiaries and the Trustee receives a legal opinion to that
effect; provided that in the case of clause (4) and (5) above, the Collateral
Agent and/or the Trustee will have received the deliverables required thereby
within 60 days of such sale; provided, further, that a binding commitment from
FelCor, FelCor LP and their Restricted Subsidiaries with respect to all of
the foregoing shall be deemed compliance therewith, so long as such commitment
is satisfied within 60 days thereof.

       

      Notwithstanding
the foregoing, in the event that any Net Cash Proceeds from a Collateral Asset
Sale are not invested or applied as provided in clause (ii) set forth in the
preceding paragraph within 60 days of such sale, FelCor LP or FelCor or any
of their Restricted Subsidiaries will within 15 Business Days thereafter apply
any Net Cash Proceeds not so applied (the “Collateral Excess Proceeds”)
to either (i) together with any additional cash that may be required, defease or
discharge all the Notes and any Additional Pari Passu Indebtedness secured by a
Lien on such Collateral permitted hereby required to be paid under Section 8.02
or Section 8.03 or (ii) make the Offer to Purchase described in the next
paragraph with such Collateral Excess Proceeds; provided that such
application of the Collateral Excess Proceeds shall not be required until the
aggregate amount thereof exceeds $20 million.

       

      If
FelCor LP or FelCor or a Subsidiary Guarantor makes an Offer to Purchase
the Notes after the consummation of a Collateral Asset Sale it will offer to
purchase all the Notes and any Additional Pari Passu Indebtedness at a price in
cash (the “Collateral Asset
Sale Payment”), in each case pro rata in proportion to the
respective principal amounts of the Notes and such Additional Pari Passu
Indebtedness required to be repaid, equal to 100% of the aggregate principal
amount thereof plus accrued and unpaid interest and Additional Interest, if any,
to the date of purchase, subject to the right of holders of record on the
relevant record date to receive interest due on the relevant interest payment
date. Within 15 Business Days after the expiration of the 60-day period
described in the immediately preceding paragraph, FelCor LP or FelCor will
send a notice describing such Collateral Asset Sale and the Offer to Purchase,
which notice will include the date of consummation for such Offer to Purchase
(which date may be extended in accordance with applicable law), which shall be a
date no earlier than 20 Business Days and no later than 60 calendar days from
the date such notice is mailed (the “Collateral Asset Sale Offer Payment
Date”).

       

      On the
Collateral Asset Sale Payment Date, FelCor LP and FelCor will:

       

      (1) accept
for payment all Notes and Additional Pari Passu Indebtedness issued by them or
portions thereof properly tendered pursuant to the Offer to
Purchase;

       

      (2) deposit
with the Paying Agent an amount equal to the aggregate Collateral Asset Sale
Payment in respect of all Notes and Additional Pari Passu Indebtedness or
portions thereof so tendered; and

       

      (3) deliver,
or cause to be delivered, to the Trustee for cancellation the Notes so accepted
together with an Officers’ Certificate to the Trustee stating that such Notes or
portions thereof have been tendered to, and purchased by, FelCor LP and
FelCor.

       

      If the
aggregate principal amount of Notes and such other Additional Pari Passu
Indebtedness tendered into such Offer to Purchase exceeds the amount of
Collateral Excess Proceeds, then the Notes and such other Additional Pari Passu
Indebtedness will be purchased on a pro rata basis based on the
principal amount of Notes and such other Additional Pari Passu Indebtedness
tendered. Upon completion of each Offer to Purchase, any remaining Collateral
Excess Proceeds subject to such Offer to Purchase will no longer be deemed to be
Collateral Excess Proceeds.

       

      
        
           

        

        
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      SECTION
4.11.            Limitation on Non-Collateral Asset
Sales.

       

      Neither
FelCor LP nor FelCor shall, and neither FelCor LP or FelCor shall
permit any of their respective Restricted Subsidiaries to, consummate any
Non-Collateral Asset Sale, unless:

       

      (i)           the
consideration received by FelCor LP, FelCor or such Restricted Subsidiary
is at least equal to the fair market value of the assets sold or disposed of,
and

       

      (ii)           at
least 75% of the consideration received consists of cash or Temporary Cash
Investments; provided,
with respect to the sale of one or more hotel properties, that up to 75% of the
consideration may consist of indebtedness of the purchaser of such hotel
properties; provided,
further, that such
indebtedness is secured by a first priority Lien on the hotel property or
properties sold.

       

      In the
event and to the extent that the Net Cash Proceeds received by FelCor LP,
FelCor or such Restricted Subsidiary from one or more Non-Collateral Asset Sales
occurring on or after the Closing Date in any period of 12 consecutive months
exceed 10% of Adjusted Consolidated Net Tangible Assets (determined as of the
date closest to the commencement of such 12-month period for which a
consolidated balance sheet of FelCor LP, FelCor and their respective
Restricted Subsidiaries has been filed with the Commission or provided to the
Trustee pursuant to Section 4.19), then FelCor LP or FelCor shall or shall
cause the relevant Restricted Subsidiary to:

       

                      (i)within 12 months after the date Net
Cash Proceeds so received exceed 10% of Adjusted Consolidated Net Tangible
Assets:

       

      (A)           apply
an amount equal to such excess Net Cash Proceeds to permanently reduce Senior
Indebtedness of FelCor LP, FelCor or any Restricted Subsidiary or
Indebtedness of any other Restricted Subsidiary, in each case owing to a Person
other than FelCor LP, FelCor or any of their respective Restricted
Subsidiaries, or

       

      (B)           invest
an equal amount, or the amount not so applied pursuant to the foregoing clause
(A) (or enter into a definitive agreement committing to so invest within 12
months after the date of such agreement), in property or assets (other than
current assets) of a nature or type or that are used in a business (or in a
Restricted Subsidiary having property and assets of a nature or type, or engaged
in a business) similar or related to the nature or type of the property and
assets of, or the business of, FelCor LP or FelCor or any of their
respective Restricted Subsidiaries existing on the date of such investment,
and

       

                      (ii)apply (no later than the end of the
12-month period referred to in clause (i)) such excess Net Cash Proceeds (to the
extent not applied pursuant to clause (i)) as provided in the following
paragraph of this Section 4.11.

       

      The
amount of such excess Net Cash Proceeds required to be applied (or to be
committed to be applied) during such 12-month period as set forth in clause (1)
of the preceding sentence and not applied as so required by the end of such
period shall constitute “Non-Collateral Excess
Proceeds.”  If, as of the first day of any calendar month, the
aggregate amount of Non-Collateral Excess Proceeds not previously subject to an
Offer to Purchase pursuant to this Section 4.11 totals at least $10 million,
FelCor LP must commence, not later than the fifteenth Business Day of such
month, and consummate an Offer to Purchase from the Holders of the Notes and all
holders of other Indebtedness that is pari passu with the Notes
containing provisions similar to those set forth in this Indenture with respect
to offers to purchase or redeem with the proceeds of sales of assets, on a pro rata basis, an aggregate
principal amount of Notes and such other Indebtedness equal to the
Non-Collateral Excess Proceeds on such date, at a purchase price equal to 100%
of the principal amount of the Notes and such other Indebtedness plus, in each
case, accrued interest and Additional Interest (if any) to the Payment
Date.

       

      If the
aggregate principal amount of the Notes and the other Indebtedness that is pari passu with the Notes
tendered into such Offer to Purchase exceeds the amount of Non-Collateral Excess
Proceeds, then the Notes and the other Indebtedness that is pari passu with the Notes
will be purchased on a pro
rata basis based on the principal amount of the Notes and the other
Indebtedness that is pari
passu with the Notes tendered. Upon completion of each

       

      
        
           

        

        
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      Offer to
Purchase, any remaining Non-Collateral Excess Proceeds subject to such Offer to
Purchase will no longer be deemed to be Non-Collateral Excess
Proceeds.

       

      SECTION
4.12.       Events of Loss.

       

      In the
case of an Event of Loss with respect to any Event of Loss Asset,
FelCor LP, FelCor or the affected Restricted Subsidiary, as the case may
be, shall, within 360 days after the receipt of any Net Loss Proceeds received
from such Event of Loss, either:

       

      (i)           grant
a Lien in favor of the Collateral Agent on Replacement Collateral so long as (a)
the Replacement Collateral has a fair market value (as determined by the report
or analysis of an independent appraiser selected by or reasonably satisfactory
to the Trustee delivered to the Trustee within such 360-day period) at least
equal to the lesser of (1) the value of the Event of Loss Asset immediately
prior to the date of the Event of Loss or (2) the value of the Event of Loss
Asset as of the Closing Date, (b) the Replacement Collateral is owned by a
Subsidiary Guarantor that is a Wholly Owned Subsidiary of FelCor LP or
FelCor and Replacement Collateral (subject to clause (c) below) is pledged to
the Collateral Agent for the benefit of the Holders, and (c) the Collateral
Agent has a first priority Lien on the Replacement Collateral and receives such
Collateral Documents, title insurance, surveys, environmental reports, legal
opinions and other documents and instruments as the Collateral Agent may
commercially reasonably request (or in lieu thereof, such Replacement Collateral
will be encumbered for the benefit of the Notes in a manner that is not
materially worse than the manner in which the Event of Loss Asset was so
encumbered, so long as (x) after giving effect to such Event of Loss no more
than six Restricted Hotels would not constitute Collateral and (y) commercially
reasonable efforts are taken with respect to such Replacement Collateral in
order for it to constitute Collateral); or

       

      (ii)           rebuild,
repair, replace or construct improvements to the affected property or facility
(or enter into a binding agreement to do so within 360 days after the execution
of such agreement) (an “Accept-able Event of Loss
Commitment”);

       

      provided that in either of
clauses (i) and (ii) above, any such action shall be permitted by the terms of
all other material Indebtedness of FelCor LP, FelCor and their Restricted
Subsidiaries and the Trustee receives a legal opinion to that effect; provided, further, that in the event
any Acceptable Event of Loss Commitment is later cancelled or terminated for any
reason before the Net Loss Proceeds are applied in connection therewith, or such
Net Loss Proceeds are not actually so invested or paid in accordance with clause
(ii) above by the end of such 360-day period, then such Net Loss Proceeds shall
be applied in accordance with the immediately succeeding paragraph.

       

      In the
event that FelCor LP, FelCor or any of their Restricted Subsidiaries is not
able to, or for any reason does not, comply with the immediately preceding
paragraph, FelCor LP or FelCor will use any remaining Net Loss Proceeds
(the “Excess Net Loss
Proceeds”) to make an offer (a “Loss Proceeds Offer”) to
Holders and to holders of Additional Pari Passu Indebtedness to purchase the
maximum principal amount of Notes and Additional Pari Passu Indebtedness, in
each case pro rata in
proportion to the respective principal amount thereof outstanding, that may be
purchased from the Excess Net Loss Proceeds at a price in cash equal to 100% of
the aggregate principal amount thereof plus accrued and unpaid interest and
Additional Interest, if any, to the date of purchase; provided that such
application of Excess Net Loss Proceeds shall not be required until the
aggregate amount thereof exceeds $30 million.

       

      If
FelCor LP or FelCor makes a Loss Proceeds Offer, within 15 Business Days
after the earlier of (a) the election to make the Loss Proceeds Offer and (b)
the expiration of the 360-day period described in the first paragraph of this
Section (or, if applicable, within 15 Business Days after the cancellation or
termination of any Accept-able Event of Loss Commitment before the Net Proceeds
are applied in connection therewith), FelCor LP or FelCor will send a
notice in accordance with Section 10.02 describing such Event of Loss, the Loss
Proceeds Offer and the date of consummation for such Loss Proceeds Offer (which
date may be extended in accordance with applicable law), which shall be a date
no earlier than 20 Business Days and no later than 60 calendar days from the
date such notice is mailed (the “Loss Proceeds Offer Payment
Date”), pursuant to the procedures required by this Indenture and
described in such notice.

       

      FelCor LP
and FelCor will comply with the requirements of Rule 14e-1 and any other
securities laws and regulations thereunder to the extent such laws or
regulations are applicable in connection with the repurchase of

       

      
        
           

        

        
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      Notes
pursuant to a Loss Proceeds Offer.  To the extent that the provisions
of any securities laws or regulations conflict with the provisions of this
Indenture, FelCor LP and FelCor will comply with the applicable securities laws
and regulations and shall not be deemed to have breached their obligations
described in this Indenture by virtue thereof.

       

      On the
Loss Proceeds Offer Payment Date, FelCor LP or FelCor will

       

      (1)          accept
for payment such principal amount of Notes and Additional Pari Passu
Indebtedness or portions thereof required to be purchased by it under to the
Loss Proceeds Offer or portions thereof properly tendered pursuant to the Loss
Proceeds Offer;

       

      (2)          deposit
with the Paying Agent an amount equal to the aggregate Loss Proceeds Offer
Payment in respect of all Notes and Additional Pari Passu Indebtedness accepted
for payment in the Loss Proceeds Offer; and

       

      (3)          deliver,
or cause to be delivered, to the Trustee for cancellation the Notes so accepted
together with an Officers’ Certificate to the Trustee stating that such Notes or
portions thereof have been tendered to, and purchased by, FelCor LP or
FelCor.

       

      SECTION
4.13.      Repurchase of Notes upon a Change of
Control.

       

      (a)           If
a Change of Control occurs, each Holder of Notes shall have the right to require
FelCor LP to repurchase all or any part of such Holder’s Notes pursuant to an
offer (a “Change of Control
Offer”) on the terms set forth in this Indenture. In the Change of
Control Offer, FelCor LP shall offer payment (a “Change of Control Payment”)
in cash equal to 101% of the aggregate principal amount of Notes repurchased
plus accrued and unpaid interest, if any, thereon, to the date of repurchase
(the “Change of Control
Payment Date,” which date shall be no earlier than the date of such
Change of Control). No later than 30 days following any Change of Control,
FelCor LP shall mail a notice to each Holder stating that a Change of Control
has occurred and offering to repurchase Notes on the Change of Control Payment
Date specified in such notice, which date shall be no earlier than 30 days and
no later than 60 days from the date such notice is mailed, pursuant to the
procedures required by this Section 4.13 and described in such
notice.

       

      The
notice shall contain all instructions and materials necessary to enable such
Holders to tender Notes pursuant to the Change of Control Offer and shall
state:

       

      (i)           that
the Change of Control Offer is being made pursuant to this Section
4.13;

       

      (ii)           the
amount of the Change of Control Payment and the Change of Control Payment
Date;

       

      (iii)           that
any Note not tendered or accepted for payment shall continue to accrue
interest;

       

      (iv)           that,
unless FelCor LP defaults in making such payment, any Note accepted for payment
pursuant to the Change of Control Offer shall cease to accrue interest after the
Change of Control Payment Date;

       

      (v)           that
Holders electing to have a Note purchased pursuant to any Change of Control
Offer shall be required to surrender the Note, with the form entitled “Option of
Holder to Elect Purchase” on the reverse of the Note completed, or transfer by
book-entry transfer, to FelCor LP, a Depositary, if appointed by FelCor LP, or a
Paying Agent at the address specified in the notice at least three days before
the Change of Control Payment Date;

       

      (vi)           that
Holders shall be entitled to withdraw their election if FelCor LP, the
Depositary or the Paying Agent, as the case may be, receives, not later than the
Change of Control Payment Date, a telegram, telex, facsimile transmission or
letter setting forth the name of the Holder, the principal amount of the Note
the Holder delivered for purchase and a statement that such Holder is
withdrawing his election to have such Note purchased; and

       

      (vii)           that
Holders whose Notes were purchased only in part shall be issued new Notes equal
in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer); provided that

       

      
        
           

        

        
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      each Note
purchased and each new Note issued shall be in a principal amount of $1,000 or
integral multiples thereof.

       

      (b)           On
the Change of Control Payment Date, the Company shall, to the extent
lawful:

       

      (1)           accept
for payment all Notes or portions thereof properly tendered pursuant to the
Change of Control Offer;

       

      (2)           deposit
with the Paying Agent money sufficient to pay the purchase price of all Notes or
portions thereof so accepted; and

       

      (3)           promptly
thereafter deliver, or cause to be delivered, to the Trustee all Notes or
portions thereof so accepted together with an Officers’ Certificate specifying
the Notes or portions thereof accepted for payment by
FelCor LP.

       

      (c)           The
Paying Agent shall promptly (but in any case not later than five days after the
Change of Control Payment Date) mail or wire transfer to each Holder of Notes so
tendered the Change of Control Payment for such Notes, and the Trustee shall
promptly authenticate and mail (or cause to be transferred by book entry) to
each Holder a new Note equal in principal amount to any unpurchased portion of
the Notes surrendered, if any; provided that each such new Note shall be in a
principal amount of $1,000 or an integral multiple of $1,000. If the Change of
Control Payment Date is on or after a Regular Record Date and on or before the
related Interest Payment Date, any accrued and unpaid interest shall be paid to
the Person in whose name a Note is registered at the close of business on such
record date, and no additional interest shall be payable to Holders who tender
Notes pursuant to the Change of Control Offer. FelCor LP shall publicly announce
the results of the Change of Control Offer on or as soon as practicable after
the Change of Control Payment Date. Subject to Section 4.13(d) below, the
provisions described herein that require FelCor LP to make a Change of Control
Offer following a Change of Control shall be applicable regardless of whether
any other provisions of this Indenture are applicable.

       

      (d)           FelCor
LP shall not be required to make a Change of Control Offer upon a Change of
Control if a third party makes the Change of Control Offer in the manner, at the
times and otherwise in compliance with the requirements set forth in this
Indenture applicable to a Change of Control Offer made by FelCor LP and
purchases all Notes validly tendered and not withdrawn under such Change of
Control Offer. Notwithstanding anything to the contrary herein, a Change of
Control Offer may be made in advance of a Change of Control, conditional upon
such Change of Control, if a definitive agreement is in place for the Change of
Control at the time of making the Change of Control Offer.

       

      (e)           FelCor
LP shall comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent such laws and
regulations are applicable in connection with the repurchase of the Notes as a
result of a Change of Control. To the extent that the provisions of any
securities laws or regulations conflict with this Section 4.13, FelCor LP shall
comply with the applicable securities laws or regulations and shall not be
deemed to have breached its obligations under this Section 4.13 by virtue of
such compliance.

       

      SECTION
4.14.       Existence.

       

      Subject
to Articles Four and Five of this Indenture, FelCor LP and the Guarantors
shall do or cause to be done all things necessary to preserve and keep in full
force and effect their existence and the existence of each Restricted Subsidiary
in accordance with the respective organizational documents of FelCor LP, the
Guarantors and each Restricted Subsidiary and the rights (whether pursuant to
charter, partnership certificate, agreement, statute or otherwise), material
licenses and franchises of FelCor LP, the Guarantors and each Restricted
Subsidiary; provided
that neither FelCor nor FelCor LP shall be required to preserve any such
right, license or franchise, or the existence of any Restricted Subsidiary or
Subsidiary Guarantor, if the maintenance or preservation thereof is no longer
desirable in the conduct of the business of FelCor LP, the Guarantors and
their Restricted Subsidiaries taken as a whole.

       

      SECTION
4.15.         Payment of Taxes and Other
Claims.

       

      FelCor
and FelCor LP shall pay or discharge and shall cause each of their
respective Restricted Subsidiaries to pay or discharge, or cause to be paid or
discharged,

       

      
        
           

        

        
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      before
the same shall become delinquent (i) all material taxes, assessments and
governmental charges levied or imposed upon (a) FelCor and FelCor LP or any
such Restricted Subsidiary, (b) the income or profits of any such Restricted
Subsidiary which is a corporation or (c) the property (including, without
limitation, the Collateral, of FelCor, FelCor LP or any such Restricted
Subsidiaries and (ii) all material lawful claims for labor, materials and
supplies that, if unpaid, might by law become a lien upon the property of
FelCor, FelCor LP or any such Restricted Subsidiary; provided that FelCor and
FelCor LP shall not be required to pay or discharge, or cause to be paid or
discharged, any such tax, assessment, charge or claim the amount, applicability
or validity of which is being contested in good faith by appropriate proceedings
and for which adequate reserves have been established.

       

      SECTION
4.16.      Maintenance of Properties and
Insurance.

       

      FelCor
and FelCor LP shall cause all properties used or useful in the conduct of
their business or the business of any of their Restricted Subsidiaries, to be
maintained and kept in good condition, repair and working order and supplied
with all necessary equipment and shall cause to be made all necessary repairs,
renewals, replacements, betterments and improvements thereof, all as in the
judgment of FelCor or FelCor LP may be necessary so that the business
carried on in connection therewith may be properly conducted at all times; provided that nothing in this
Section 4.16 shall prevent FelCor, FelCor LP or any such Restricted
Subsidiary from discontinuing the use, operation or maintenance of any of such
properties or disposing of any of them, if such discontinuance or disposal is,
in the judgment of FelCor, FelCor LP, desirable in the conduct of the
business of FelCor, FelCor LP or such Restricted Subsidiary.

       

      Each of
FelCor and FelCor LP shall provide or cause to be provided, for itself and
its Restricted Subsidiaries, insurance (including appropriate self-insurance)
against loss or damage of the kinds customarily insured against by corporations
similarly situated and owning like properties, with reputable insurers or with
the government of the United States of America, or an agency or instrumentality
thereof, in such amounts, with such deductibles and by such methods as shall be
customary for corporations similarly situated in the industry in which FelCor,
FelCor LP or such Restricted Subsidiary, as the case may be, is then
conducting business.  Without limiting the foregoing, such insurance
coverages shall include without limitation (a) physical hazard on an “all risk”
basis coverage and explosion insurance in an amount equal to the full
replacement cost of the fully operational Mortgaged Property, (b) commercial
general liability insurance against claims for bodily injury, death or property
damage occurring on, in or about the Mortgaged Property and the Collateral
located thereon or used in connection therewith, (c) workers’ compensation
insurance as required by applicable law, and if the Mortgaged Property is
located in an area identified by the Federal Emergency Management Agency as an
area having special flood hazards pursuant to the National Flood Insurance Act
of 1968 or the Flood Disaster Protection Act of 1973, each as amended or any
successor laws, flood insurance in compliance with applicable laws.

       

      SECTION
4.17.           Notice of
Defaults.

       

                   
 In the event that FelCor LP becomes aware of any Default or Event of
Default, FelCor LP, promptly after it becomes aware thereof, shall give
written notice thereof to the Trustee.

       

      SECTION
4.18.          Compliance
Certificates.

       

      (a)             FelCor
and FelCor LP shall deliver to the Trustee, within 45 days after the end of
each fiscal quarter (90 days after the end of the last fiscal quarter of each
year), an Officers’ Certificate stating whether or not the signers know of any
Default or Event of Default that occurred during such fiscal
quarter.  In the case of the Officers’ Certificate delivered within 90
days of the end of FelCor’s and FelCor LP’s fiscal year, such certificate
shall contain a certification from the principal executive officer, principal
financial officer or principal accounting officer that a review has been
conducted of the activities of FelCor and FelCor LP and their Restricted
Subsidiaries and FelCor’s and FelCor LP’s and their Restricted
Subsidiaries’ performance under this Indenture and that, to the knowledge of
such Officers, FelCor and FelCor LP have complied with all conditions and
covenants under this Indenture.  For purposes of this Section 4.18,
such compliance shall be determined without regard to any period of grace or
requirement of notice provided under this Indenture.  If they do know
of such a Default or Event of Default, the certificate shall describe any such
Default or Event of Default and its status.  The first certificate to
be delivered pursuant to this Section 4.18(a) shall be for the first fiscal
quarter beginning after the execution of this Indenture.

       

      (b)             Within
90 days of the end of each of FelCor and FelCor LP’s fiscal years, FelCor
and FelCor LP shall deliver to the Trustee a list of all Significant
Subsidiaries.  The Trustee shall have no duty with respect to any such
list except to keep it on file and available for inspection by the
Holders.

       

      
        
           

        

        
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      SECTION
4.19               Commission Reports and Reports to
Holders.  

       

      Whether
or not FelCor or FelCor LP is then required to file reports with the
Commission, FelCor and FelCor LP shall file with the Commission all such
reports and other information as they would be required to file with the
Commission by Sections 13(a) or 15(d) under the Exchange Act if they were
subject thereto; provided that, if filing such
documents by FelCor LP or FelCor with the Commission is not permitted under
the Exchange Act, FelCor LP or FelCor shall provide such documents to the
Trustee and upon written request supply copies of such documents to any
prospective Holder within the time period specified by the Commission as if
FelCor LP and FelCor were then permitted to file such documents with the
Commission; provided,
further, that if the
rules and regulations of the Commission permit FelCor LP and FelCor to file
combined reports or information pursuant to the Exchange Act, FelCor LP and
FelCor may file combined reports and information.  FelCor LP and
FelCor shall supply the Trustee and each Holder or shall supply to the Trustee
for forwarding to each such Holder, without cost to such Holder, copies of such
reports and other information.  Delivery of such reports, information
and documents to the Trustee is for informational purposes only and the
Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including FelCor or FelCor LP’s compliance with any of their
covenants hereunder (as to which the Trustee is entitled to rely exclusively on
Officers’ Certificates).  In addition, upon the request of any Holder
or any prospective purchaser of the Notes designated by a Holder, FelCor LP
shall supply to such Holder or such prospective purchaser the information
required under Rule 144A under the Securities Act.  FelCor LP
also shall comply with the other provisions of TIA Section 314(a).  In
addition, substantially concurrently with the filing of the reports and other
information with the Commission and/or delivery thereof to the Trustee, in each
case as set forth in this Section 4.19, FelCor LP shall deliver to the
Trustee a certificate of the chief financial officer or treasurer of
FelCor LP setting forth in reasonable detail the calculation of the
Collateral Hotel EBITDA, the Collateral Hotel Interest Expense and the
Collateral Hotel Interest Coverage Ratio as of the end of such year or period,
as the case may be.

       

      SECTION
4.20.              Waiver of Stay, Extension or Usury
Laws.  

       

      FelCor LP
covenants (to the extent that it may lawfully do so) that it shall not at any
time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law or any usury law or other law
that would prohibit or forgive FelCor LP from paying all or any portion of the
principal of, premium, if any, or interest on the Notes as contemplated herein,
wherever enacted, now or at any time hereafter in force, or that may affect the
covenants or the performance of this Indenture; and (to the extent that it may
lawfully do so) FelCor LP hereby expressly waives all benefit or advantage
of any such law and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit
the execution of every such power as though no such law had been
enacted.

       

      SECTION
4.21.           Limitation on Sale-Leaseback
Transactions. 

       

      Neither
FelCor LP nor FelCor shall, and neither FelCor LP nor FelCor shall
permit any of their respective Restricted Subsidiaries to, enter into any
sale-leaseback transaction involving any of its assets or properties whether now
owned or hereafter acquired, whereby any of them sells or transfers such assets
or properties and then or thereafter leases such assets or properties or any
substantial part thereof.

       

      The
foregoing restriction shall not apply to any sale-leaseback transaction with
respect to any assets or properties (other than the Collateral and the
Additional Restricted Assets) if:

       

      (i)         the
lease is for a period, including renewal rights, of not in excess of three
years;

       

      (ii)         the
lease secures or relates to industrial revenue or pollution control
bonds;

       

      (iii)         the
transaction is solely between FelCor LP or FelCor and any Wholly Owned
Restricted Subsidiary or solely between Wholly Owned Restricted Subsidiaries;
or

       

      (iv)         FelCor LP
or FelCor or any of their respective Restricted Subsidiaries, within 12 months
after the sale or transfer of any assets or properties is completed, applies an
amount not less than the net proceeds received from such sale in accordance with
clause (i)(A) or (B) of the second paragraph of Section 4.11.

       

      
        
           

        

        
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      SECTION
4.22             Investment Grade
Rating.  

       

      Notwithstanding
anything to the contrary in this Indenture, Sections 4.04, 4.05, 4.06, 4.07,
4.08, 4.09 and 4.21 and clauses (iii) and (iv) of Section 5.01 shall not be
applicable in the event, and only for so long as, the Notes are rated Investment
Grade and no Default or Event of Default has occurred and is
continuing.

       

      SECTION
4.23.          Post-Closing
Covenant.  

       

      From and
after the date of the Assumption, with respect to the portion of the Collateral
and Mortgaged Property securing the Notes for which a valid and perfected
security interest or Lien in favor of the Collateral Agent has not been created
on or prior to the Closing Date, FelCor LP and  FelCor shall, and
shall cause each of the Grantors to, use commercially reasonable efforts to, as
soon as reasonably practicable, but in any event, within 180 days following the
Closing Date (provided if such 180th day shall not be a Business Day, then upon
the preceding Business Day), complete those actions required to create and
perfect substantially all of such Liens in such portion of the Collateral and
the Mortgaged Property, including, without limitation, each of the following, in
such form and substance as shall be reasonably satisfactory to the Collateral
Agent and its counsel, as appropriate:

       

      (a)           a
Deed of Trust in favor of the Collateral Agent for its benefit and for the
benefit of the Secured Parties granted by the applicable Grantor owning the fee
or leasehold estate in the Mortgaged Property and the applicable Grantor which
is the Operating Lessee under the Operating Lease for such Mortgaged Property
encumbering such Grantor’s respective interests in such Mortgaged Property, duly
executed and acknowledged by such party, in form for recording in the
appropriate recording office of the political subdivision where such Mortgaged
Property is situated, together with such certificates, affidavits,
questionnaires or returns as shall be required in connection with the recording
or filing thereof and such financing statements and other similar statements as
are contemplated in respect of each such Deed of Trust by the local counsel
opinion referred to in item (j) below, and any other instruments necessary to
grant the interests purported to be granted by each such Deed of Trust (and to
record such Deed of Trust in the appropriate recording office) under the laws of
any applicable jurisdiction, which Deed of Trusts and financing statements and
other instruments shall be effective to create a valid and enforceable first
priority lien on such Mortgaged Property and related improvements and personal
property owned by such mortgagors in favor of the Collateral Agent for its
benefit and for the benefit of the Secured Parties, subject, on the date such
Deed of Trust is executed, the Permitted Collateral Encumbrances (as defined
below);

       

      (b)           such
consents, approvals, amendments, supplements, estoppels, tenant subordination
agreements, memoranda of lease or other instruments as shall be reasonably
necessary and commercially reasonably obtainable in order for the applicable
party to grant the lien contemplated in (1) above;

       

      (c)           with
respect to each Deed of Trust encumbering any Mortgaged Property, a policy of
title insurance (or irrevocable commitment to issue such a policy) insuring (or
irrevocably committing to insure) the lien of such Deed of Trust as a valid and
enforceable first priority mortgage or deed of trust lien, as applicable, on the
real property and fixtures described therein, in respect of the Notes in
accordance with subparagraph (d) below  (individually, a “Title
Policy,” and, collectively, “Title Policies”); and which Tile Policies shall
(1) be issued by Stewart Title Company or another title insurance company
reasonably acceptable to the Collateral Agent, (2) include such coinsurance
or re-insurance as shall be reasonably acceptable to the Collateral Agent,
(3) have been supplemented by endorsements reasonably requested by the
Collateral Agent and available at commercially reasonable premium costs
(including, without limitation, endorsements on matters relating to usury, first
loss, last dollar, non-imputation, public road access, doing business, variable
rate, contiguity (where appropriate), “tie-in” or “cluster,” environmental lien,
address, subdivision, survey, any special use of the Mortgaged Property or
improvements or equipment related thereto, and so-called comprehensive coverage
over covenants and restrictions); it being understood that where such
endorsements are not available at commercially reasonable costs and rates,
Grantors will obtain a PZR report or letters from the appropriate governmental
authorities or other evidence as to zoning, or and from local or special counsel
opinions relating to usury and such matters, in each case, in form and substance
reasonably satisfactory to the Collateral Agent and (4) contain only such
exceptions to title as follows:

       

      (i)           Liens
of the type described in clauses (ii), (iii) and (iv) of the definition of
Permitted Liens; provided any proceeding brought in connection therewith shall
have the effect of preventing the forfeiture or sale of the applicable Mortgaged
Property subject to such Lien;

       

      
        
           

        

        
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      (ii)           zoning
and other municipal ordinances which are not violated in any material respect by
the existing improvements and the present use made by the applicable Grantor;
and

       

      (iii)           such
other similar items as the Trustee may consent to (such consent not to be
unreasonably withheld)(such items, collectively, with clauses (i) and (ii), the
“Permitted Collateral
Encumbrances”);

       

      (d)           the
amount of insurance to be purchased under the Title Policies shall be in an
aggregate amount not to exceed the lesser of the principal amount of the Notes
issued at Closing Date and the value of the Mortgaged Properties as reasonably
determined by Grantor and accepted by the Title Company issuing the Title
Policies;

       

      (e)           with
respect to each Mortgaged Property, a survey of the Mortgaged Property
(a) in such form as shall be required by the title insurance company to
issue the so-called comprehensive endorsement required under paragraph
(c) hereof and to remove the standard survey exception from such Title
Policy with respect to the site (b) complying with the minimum detail
requirements of the American Land Title Association and such additional Table A
items as shall be reasonably requested by the Collateral Agent (as such
requirements and items are in effect on the date of delivery of such survey)
certified to the Collateral Agent and dated (or redated) not earlier than six
months prior to the date of delivery thereof, or if earlier, accompanied by an
officer’s certificate stating that there have been no material changes to the
applicable Mortgaged Property since the date of the survey, unless there shall
have occurred any material exterior change in the property affected thereby
during such period, in which event such survey shall be dated or redated to a
date after the completion of such change, which survey shall locate all
improvements, public streets and recorded easements affecting such Mortgaged
Property and in such form as shall be required by the title insurance company to
issue the Title Policy;

       

      (f)           policies
or certificates of insurance (including, without limitation, evidence of flood
insurance) covering the Mortgaged Properties, and any other assets of the
applicable Grantor as required by the Deeds of Trust, which policies or
certificates reflect the Collateral Agent, for its benefit and the benefit of
the Trustee and the Holders, as additional insured and loss payee and mortgagee
and shall otherwise bear endorsements of the character required by the Deeds of
Trust;

       

      (g)           such
affidavits, certificates and instruments of indemnification and other items
(including a so-called “gap” indemnification) as shall be reasonably required to
induce the title insurance company to issue the Title Policies with respect to
each Mortgaged Property;

       

      (h)           checks
or wire transfers to the title insurance company in respect of amounts in
payment of required recording cost and transfer taxes due in respect of the
execution, delivery or recording of the Deed of Trusts and related documents,
together with a check or wire transfer for the title insurance company in
payment of its premium, search and examination charges, applicable survey costs
and any other amounts then due in connection with the issuance of its Title
Policies;

       

      (i)           with
respect to each Mortgaged Property, a completed FEMA Standard Flood Hazard
Determination and if the area in which any improvements located on the Mortgaged
Property is designated a special flood hazard area in any Flood Insurance Rate
Map published by FEMA (or successor agency), a signed notice by
either  FelCor LP, and FelCor the applicable Grantor for the Flood
Hazard Determination, and flood insurance, in favor of Collateral Agent for its
benefit and the benefit of the Trustee and the Holders, as additional insured
and loss payee and mortgagee and shall otherwise bear endorsements of the
character reasonably acceptable to the Collateral Agent;

       

      (j)           the
opinions, addressed to the Collateral Agent and the Trustee and the Secured
Parties, of local counsel in each of the following jurisdictions where Mortgaged
Property is located, each in form and substance reasonably satisfactory to the
Collateral Agent:  (i) Bennett Jones LLP, local counsel to FelCor, the
Operating Partnership and each Subsidiary Grantor in Ontario, Canada,
(ii) Adler Pollack & Sheehan P.C., local counsel to FelCor, the
Operating Partnership and each Grantor in Massachusetts, (iii) Akin Gump
Strauss Hauer & Feld LLP, local counsel to FelCor, the Operating Partnership
and each Grantor in California, and (iv) Holt Ney Zatcoff & Wasserman,
LLP, local counsel to FelCor, the Operating Partner

       

      
        
           

        

        
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      ship and
each Grantor in Georgia, (v) Locke Lord Bissell & Liddell LLP, local
counsel to FelCor, the Operating Partnership and each Grantor in Louisiana, (vi)
Bass, Berry & Sims PLC, local counsel to the Company, the Operating
Partnership and each Grantor in Tennessee, (vii) Womble Carlyle Sandridge &
Rice, PLLC, local counsel to FelCor, the Operating Partnership and each Grantor
in South Carolina, and (viii) Baker & Hostetler LLP, local counsel to
FelCor, the Operating Partnership and each Grantor in Florida; and to the extent
applicable, an opinion of corporate counsel, if any mortgagor thereunder is
organized in a state other than the one in which the Mortgaged Property is
located;

       

      (k)           with
respect to each Mortgaged Property (a) to the extent applicable, a dully
authorized and fully executed “comfort letter” for each franchise agreement in
form and substance customarily provided by the applicable franchisor and
reasonably acceptable to the Collateral Agent, and (b) a dully authorized and
fully executed consent agreement of manager in form and substance customarily
provided by the applicable manager and reasonably acceptable to the Collateral
Agent;

       

      (l)           with
respect to each Mortgaged Property, as applicable (i) a duly authorized and
fully executed estoppel, subordination and attornment agreement, in form and
substance reasonably satisfactory to the Collateral Agent from each tenant and
guarantor under such lease as required by Trustee, and (ii) a dully authorized
and fully executed estoppel and subordination agreement, in form and substance
reasonably satisfactory to the Collateral Agent from each Operating Lessee under
the Operating Leases; and

       

      (m)           with
respect to each Mortgaged Property subject to a Ground Lease, a duly authorized
and fully executed landlord estoppel and, where required, consent, waiver and
access agreements from each landlord thereunder, in form and content provided
for in the Ground Lease or otherwise reasonably satisfactory to the Collateral
Agent.

       

      SECTION
4.24        Additional
Collateral.         

       

      Concurrently
with the acquisition by any of FelCor LP, FelCor or any Subsidiary of either
FelCor LP or FelCor (including, without limitation, any Grantor) of a fee or
leasehold interest in any real property interest located on, in or adjacent to,
any Mortgaged Property or any such fee or leasehold real property interest in
any asset or property which becomes a part of the operations of any Mortgaged
Property, wherever located, (individually or collectively, as the context may
require, the “After-Acquired Property”), the applicable Person, as the case may
be, shall deliver to the Trustee and the Collateral Agent all such Collateral
Documents and other deliverables in the same manner and satisfying the same
requirements as applicable to with respect to the Mortgaged Property as set
forth in Section 4.23.

       

      ARTICLE
FIVE

      

      SUCCESSOR
CORPORATION

      

      SECTION
5.01.      Consolidation, Merger and Sale of
Assets.  

       

      From and
after the date of the Assumption, neither FelCor LP nor FelCor will merge
with or into, or sell, convey, transfer, lease or otherwise dispose of all or
substantially all of its property and assets (as an entirety or substantially an
entirety in one transaction or a series of related transactions) to, any Person
or permit any Person to merge with or into FelCor LP or FelCor
unless:

       

      (i)           FelCor LP
or FelCor shall be the continuing Person, or the Person (if other than
FelCor LP or FelCor) formed by such consolidation or into which
FelCor LP or FelCor is merged or that acquired or leased such property and
assets of FelCor LP or FelCor shall be an entity organized and validly
existing under the laws of the United States of America or any state or
jurisdiction thereof and shall expressly assume, by a supplemental indenture,
executed and delivered to the Trustee, all of the obligations of FelCor LP
or FelCor on the Notes and under this Indenture;

       

      (ii)           immediately
after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing;

       

      (iii)           immediately
after giving effect to such transaction on a pro forma basis
FelCor LP or FelCor, or any Person becoming the successor obligor of the
Notes, as the case may be, could Incur at least $1.00 of Indebtedness under
paragraphs (a), (b) and (c) of Section 4.03; provided that this clause
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      not apply
to a consolidation or merger among Wholly Owned Restricted Subsidiaries, of
FelCor or FelCor LP with or into one or more Wholly Owned Restricted
Subsidiaries or of one or more Wholly Owned Restricted Subsidiaries with or into
FelCor or FelCor LP; provided that, in connection
with any such merger or consolidation, no consideration (other than Capital
Stock (other than Disqualified Stock) in the surviving Person or FelCor LP
or FelCor) shall be issued or distributed to the holders of Capital Stock of
FelCor LP or FelCor; and

       

      (iv)           FelCor LP
or FelCor delivers to the Trustee an Officers’ Certificate (attaching the
arithmetic computations to demonstrate compliance with clause (iii)) and an
Opinion of Counsel, in each case stating that such consolidation, merger or
transfer and such supplemental indenture complies with this Section 5.01 and
that all conditions precedent provided for herein relating to such transaction
have been complied with; provided that clause (iii)
above shall not apply if, in the good faith determination of the Board of
Directors of FelCor LP or FelCor, whose determination shall be evidenced by
a Board Resolution, the principal purpose of such transaction is to change the
state of domicile of FelCor LP or FelCor; and provided, further, that any such
transaction shall not have as one of its purposes the evasion of the foregoing
limitations.

       

      SECTION
5.02.        Successor
Substituted.  

       

      Upon any
consolidation or merger, or any sale, conveyance, transfer, lease or other
disposition of all or substantially all of the property and assets of
FelCor LP in accordance with Section 5.01 of this Indenture, the successor
Person formed by such consolidation or into which FelCor LP is merged or to
which such sale, conveyance, transfer, lease or other disposition is made shall
succeed to, and be substituted for, and may exercise every right and power of,
FelCor LP under this Indenture with the same effect as if such successor
Person had been named as FelCor LP herein and thereafter the predecessor
corporation shall be relieved of all obligations and covenants under this
Indenture and the Notes; provided that FelCor LP
shall not be released from its obligation to pay the principal of, premium, if
any, or interest on the Notes in the case of a lease of all or substantially all
of its property and assets.

       

      The
provisions of this Article shall not apply to the Assumption, which shall be
expressly permitted hereby.

       

       

      ARTICLE
FIVE A

       

       

      ACTIVITIES
OF ESCROW SUBSIDIARY

       

      Notwithstanding
anything else in this Indenture to the contrary, prior to the Assumption, Escrow
Subsidiary will not:

       

      (a)              make
any Restricted Payment or any Permitted Investment except in connection with the
Assumption and the transactions contemplated thereby, including any Investment
deemed to exist by virtue of the Escrow Agreement;

       

      (b)              create,
incur, issue, assume, guarantee or otherwise become directly liable,
contingently or otherwise, with respect to any Indebtedness except the Notes in
an aggregate principal amount not to exceed $636.0 million;

       

      (c)              consummate
an Asset Sale an Asset Sale except in connection with the Assumption and the
transactions contemplated by the Escrow Agreement, including the related release
to FelCor LP of the Escrow Property;

       

      (d)              enter
into or permit to exist any Affiliate Transactions or engage in any business
other than in connection with the issuance of the Notes, the Escrow Agreement,
the Assumption and the transactions contemplated thereby;

       

      (e)              create,
incur, assume or suffer to exist any Lien of any kind against or upon any of its
property or assets, or any proceeds, income or profit therefrom which secure any
Indebtedness other than as contemplated by the Escrow Agreement;
and

       

      
        
           

        

        
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      (f)              other
than in connection with the Assumption and the related release of the Escrow
Property, consolidate with or merge with or into, or sell, assign, transfer,
lease, convey or otherwise dispose of all or substantially all of its assets to,
another Person or Persons, whether in a single transaction or a series of
related transactions.

       

      ARTICLE
SIX

       

      DEFAULT
AND REMEDIES

       

      SECTION
6.01.      Events of Default.  

       

      An “Event of Default” shall occur
with respect to this Indenture if :

       

      (a)             default
in the payment of principal of, or premium, if any, on any Note when the same
becomes due and payable at maturity, upon acceleration, redemption or
otherwise;

       

      (b) default
in the payment of interest on any Note when the same becomes due and payable,
and such default continues for a period of 30 days;

       

      (c) default
in the performance or breach of the provisions of this Indenture applicable to
mergers, consolidations and transfers of all or substantially all of the assets
of FelCor LP and FelCor or the failure by FelCor LP to make or
consummate an Offer to Purchase in accordance with Section 4.10, Section 4.11 or
make or consummate a Change of Control Offer in accordance with Section
4.13;

       

      (d) FelCor LP
or FelCor defaults in the performance of or breaches any other covenant or
agreement of FelCor LP or FelCor in this Indenture or under the Notes
(other than a default specified in clause (a), (b) or (c) above) and such
default or breach continues for a period of 60 consecutive days after written
notice by the Trustee or the Holders of 25% or more in aggregate principal
amount of the Notes;

       

      (e) there
occurs with respect to any issue or issues of Indebtedness of FelCor LP or
FelCor or any Significant Subsidiary having an outstanding principal amount of
$20 million or more in the aggregate for all such issues of all such Persons,
whether such Indebtedness now exists or shall hereafter be created,

       

      (i) an event
of default that has caused the holder thereof to declare such Indebtedness to be
due and payable prior to its Stated Maturity and such Indebtedness has not been
discharged in full or such acceleration has not been rescinded or annulled
within 30 days of such acceleration and/or

       

      (ii) the
failure to make a principal payment at the final (but not any interim) fixed
maturity and such defaulted payment shall not have been made, waived or extended
within 30 days of such payment default;

       

      (f) any final
judgment or order (not covered by insurance) for the payment of money in excess
of $20 million in the aggregate for all such final judgments or orders against
all such Persons (treating any deductibles, self-insurance or retention as not
covered by insurance):

       

      (i) shall be
rendered against FelCor LP or FelCor or any Significant Subsidiary and
shall not be paid or discharged, and

       

      (ii) there
shall be any period of 60 consecutive days following entry of the final judgment
or order that causes the aggregate amount for all such final judgments or orders
outstanding and not paid or discharged against all such Persons to exceed $20
million during which a stay of enforcement of such final judgment or order, by
reason of a pending appeal or otherwise, shall not be in effect;

       

      (g) a court
having jurisdiction in the premises enters a decree or order for:

       

      
         

        
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      (i)              relief
in respect of FelCor LP or FelCor or any Significant Subsidiary in an
involuntary case under any applicable bankruptcy, insolvency or other similar
law now or hereafter in effect,

       

      (ii)              appointment
of a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of FelCor LP or FelCor or any Significant Subsidiary or for all or
substantially all of the property and assets of FelCor LP or FelCor or any
Significant Subsidiary, or

       

      (iii)              the
winding up or liquidation of the affairs of FelCor LP or FelCor or any
Significant Subsidiary and, in each case, such decree or order shall remain
unstayed and in effect for a period of 60 consecutive days;

       

      (h) FelCor LP
or FelCor or any Significant Subsidiary:

       

      (i)              commences
a voluntary case under any applicable bankruptcy, insolvency or other similar
law now or hereafter in effect, or consents to the entry of an order for relief
in an involuntary case under such law,

       

      (ii)              consents
to the appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of FelCor LP or FelCor
or Significant Subsidiary or for all or substantially all of the property and
assets of FelCor LP or FelCor or any Significant Subsidiary,
or

       

      (iii)              effects
any general assignment for the benefit of its creditors;

       

      (i) any Note
Guarantee ceases to be in full force and effect (other than in accordance with
the terms of such Note Guarantee and this Indenture) or any Guarantor notifies
the Trustee in writing that it denies or disaffirms its obligations under its
Note Guarantee; or

       

      (j) (i) there
shall be a default in the performance, or breach, of any covenant or agreement
of FelCor, FelCor LP or any Subsidiary Guarantor, in any material respect,
under any Collateral Document or any management or franchise agreement related
thereto and such default or breach shall continue for a period of 45 days after
written notice has been given, by certified mail, (a) to FelCor by the Trustee
or (b) to FelCor and the Trustee by the Holders of at least 25% in aggregate
principal amount of the then out-standing Notes or (ii) any Collateral Document
shall for any reason cease to be, or any Collateral Document shall for any
reason be asserted in writing by FelCor LP, FelCor or any Subsidiary
Guarantor, not to be, in full force and effect and enforceable in accordance
with its terms or ceases to give the Holders the first priority Liens purported
to be created thereby, except to the extent contemplated by this Indenture and
any such Collateral Document.

       

      SECTION
6.02.       Acceleration.  

       

      If an
Event of Default (other than an Event of Default specified in clause (g) or (h)
of Section 6.01 that occurs with respect to FelCor LP or FelCor) occurs and
is continuing under this Indenture, the Trustee or the Holders of at least 25%
in aggregate principal amount of the Notes then outstanding, by written notice
to FelCor LP and FelCor (and to the Trustee if such notice is given by the
Holders), may, and the Trustee at the request of such Holders shall, declare the
principal of, premium, if any, and accrued interest and Additional Interest, if
any, on the Notes to be immediately due and payable.  Upon a
declaration of acceleration, such principal of, premium, if any, and accrued
interest and Additional Interest, if any, shall be immediately due and
payable.  In the event of a declaration of acceleration because an
Event of Default set forth in clause (e) of Section 6.01 has occurred and is
continuing, such declaration of acceleration shall be automatically rescinded
and annulled if the event of default triggering such Event of Default pursuant
to such clause (e) shall be remedied or cured by FelCor LP, FelCor or the
relevant Significant Subsidiary or waived by the holders of the relevant
Indebtedness within 60 days after the declaration of acceleration with respect
thereto.

       

      If an
Event or Default specified in clause (g) or (h) of Section 6.01 occurs with
respect to FelCor LP or FelCor, the principal of, premium, if any, and
accrued interest and Additional Interest, if any, on the Notes then outstanding
shall automatically become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any
Holder.  The Holders of at least a majority in principal amount of the
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      written
notice to FelCor LP, FelCor and to the Trustee, may waive all past defaults
and rescind and annul a declaration of acceleration and its consequences
if:

       

      (i) all
existing Events of Default, other than the nonpayment of the principal of,
premium, if any, and interest on the Notes that have become due solely by such
declaration of acceleration, have been cured or waived and

       

      (ii) the
rescission would not conflict with any judgment or decree of a court of
competent jurisdiction.

       

      SECTION
6.03.             Other Remedies. 

       

      If an
Event of Default occurs and is continuing, the Trustee may pursue any available
remedy by proceeding at law or in equity to collect the payment of principal of,
premium, if any, or interest on the Notes or to enforce the performance of any
provision of the Notes, this Indenture or the Collateral Documents.

       

      The
Trustee may maintain a proceeding even if it does not possess any of the Notes
or does not produce any of them in the proceeding.

       

      SECTION
6.04.              Waiver of Past
Defaults.  

       

      Subject
to Sections 6.02, 6.07 and 9.02, the Holders of at least a majority in aggregate
principal amount of the outstanding Notes, by notice to the Trustee, may waive
an existing Default or Event of Default and its consequences, except a Default
in the payment of principal of, premium, if any, or interest on any Note as
specified in clause (a) or (b) of Section 6.01 or in respect of a covenant or
provision of this Indenture which cannot be modified or amended without the
consent of the Holder of each outstanding Note affected.  Upon any
such waiver, such Default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default or
Event of Default or impair any right consequent thereto.

       

      SECTION
6.05.         Control by
Majority.  

       

      The
Holders of at least a majority in aggregate principal amount at maturity of the
outstanding Notes may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on the Trustee.  However, the Trustee may refuse to
follow any direction that conflicts with law or this Indenture, that may involve
the Trustee in personal liability, or that the Trustee determines in good faith
may be unduly prejudicial to the rights of Holders of Notes not joining in the
giving of such direction and may take any other action it deems proper that is
not inconsistent with any such direction received from Holders of
Notes.

       

      SECTION
6.06.          Limitation on
Suits.  

       

      A Holder
may not institute any proceeding, judicial or otherwise, with respect to this
Indenture or the Notes, or for the appointment of a receiver or trustee, or for
any other remedy hereunder unless:

       

      (1) such
Holder has previously given the Trustee written notice of a continuing Event of
Default;

       

      (2) the
Holders of at least 25% in aggregate principal amount of outstanding Notes shall
have made a written request to the Trustee to pursue the remedy;

       

      (3) such
Holder or Holders have offered the Trustee indemnity reasonably satisfactory to
the Trustee against any costs, liabilities or expenses to be incurred in
compliance with such request;

       

      (4) the
Trustee does not comply with the request within 60 days after receipt of the
request and the offer of indemnity; and

       

      (5) during
such 60-day period, the Holders of a majority in aggregate principal amount at
maturity of the outstanding Notes do not give the Trustee a direction that is
inconsistent with such written request.

       

      
         

        
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      (6) For
purposes of Section 6.05 and this Section 6.06, the Trustee shall comply with
TIA Section 316(a) in making any determination of whether the Holders of the
required aggregate principal amount of outstanding Notes have concurred in any
request or direction of the Trustee to pursue any remedy available to the
Trustee or the Holders with respect to this Indenture or the Notes or otherwise
under the law.

       

      A Holder
may not use this Indenture to prejudice the rights of another Holder or to
obtain a preference or priority over such other Holder.

       

      SECTION
6.07.                Rights of Holders To Receive
Payment.  

       

      Notwithstanding
any other provision of this Indenture, the right of any Holder of a Note to
receive payment of the principal of, premium, if any, or interest on, such Note
or to bring suit for the enforcement of any such payment on or after the due
date expressed in the Notes, shall not be impaired or affected without the
consent of such Holder except to the extent that the institution or prosecution
thereof or the entry of judgment thereon would, under applicable law, result in
the surrender, impairment, waiver or loss of any Lien upon any property subject
to such Lien in favor of the Secured Parties.

       

      SECTION
6.08.           Collection Suit by
Trustee.  

       

      If an
Event of Default in payment of principal, premium or interest specified in
clause (a), (b) or (c) of Section 6.01 occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust against
FelCor LP, the Guarantors or any other obligor of the Notes for the whole
amount of principal, premium, if any, and accrued interest and Additional
Interest, if any, remaining unpaid, together with interest on overdue principal,
premium, if any, and, to the extent that payment of such interest is lawful,
interest on overdue installments of interest and Additional Interest, if any, in
each case at the rate specified in the Notes, and such further amount as shall
be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

       

      SECTION
6.09.           Trustee May File Proofs of
Claim.  

       

      The
Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any
claim for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07) and the Holders allowed in any judicial proceedings relative to
FelCor LP (or any other obligor of the Notes), its creditors or its
property and shall be entitled and empowered to collect and receive any monies,
securities or other property payable or deliverable upon conversion or ex-change
of the Notes or upon any such claims and to distribute the same, and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agent and counsel, and any other
amounts due the Trustee under Section 7.07.  Nothing herein contained
shall be deemed to empower the Trustee to authorize or consent to, or accept or
adopt on behalf of any Holder, any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

       

      SECTION
6.10.          Priorities.  

       

      If the
Trustee collects any money pursuant to this Article Six, it shall pay out the
money in the following order:

       

      First:  to
the Trustee for all amounts due under Section 7.07;

       

      Second:  to
Holders for amounts then due and unpaid for principal of, premium, if any, and
interest and Additional Interest, if any, on the Notes in respect of which or
for the benefit of which such money has been collected, ratably, without
preference or priority of any kind, according to the amounts due and payable on
such Notes for principal, premium, if any, and interest and Additional Interest,
if any, respectively; and

       

      
         

        
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      Third:  to
FelCor LP or any other obligors of the Notes, as their interests may
appear, or as a court of competent jurisdiction may direct.

       

      The
Trustee, upon prior written notice to FelCor LP, may fix a record date and
payment date for any payment to Holders pursuant to this Section
6.10.

       

      SECTION
6.11.       Undertaking for
Costs.  

       

      In any
suit for the enforcement of any right or remedy under this Indenture or in any
suit against the Trustee for any action taken or omitted by it as Trustee, a
court may require any party litigant in such suit to file an undertaking to pay
the costs of the suit, and the court may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in the suit having due
regard to the merits and good faith of the claims or defenses made by the party
litigant.  This Section 6.11 does not apply to a suit by the Trustee,
a suit by a Holder pursuant to Section 6.07 of this Indenture, or a suit by
Holders of more than 10% in principal amount of the outstanding
Notes.

       

      SECTION
6.12.        Restoration of Rights and
Remedies.  

       

      If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then, and in every such case, subject to any determination in such
proceeding, FelCor LP, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter
all rights and remedies of FelCor LP, the Guarantors, Trustee and the
Holders shall continue as though no such proceeding had been
instituted.

       

      SECTION
6.13.       Rights and Remedies
Cumulative. 

       

      Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or wrongfully taken Notes in Section 2.09, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended
to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise.  The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

       

      SECTION
6.14.       Delay or Omission Not
Waiver.  

       

      No delay
or omission of the Trustee or of any Holder to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence
therein.  Every right and remedy given by this Article Six or by law
to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.

       

      ARTICLE
SEVEN

       

      TRUSTEE

       

      SECTION
7.01.     General.  

       

      The
duties and responsibilities of the Trustee shall be as provided by the TIA and
as set forth herein.  Notwithstanding the foregoing, no provision of
this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to
it.  The Trustee shall not be required to give any bond or surety with
respect to the performance of its duties or the exercise of its powers under
this Indenture.  Whether or not therein expressly so provided, every
provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Trustee shall be subject to the provisions of
this Article Seven.

       

      SECTION
7.02       Certain Rights of
Trustee.

       

      Subject
to TIA Sections 315(a) through (d):

       

      (1)          the
Trustee may rely and shall be protected in acting or refraining from acting upon
any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document believed by it to be

       

      
        
           

        

        
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      genuine
and to have been signed or presented by the proper person.  The
Trustee need not investigate any fact or matter stated in the
document;

       

      (2)          before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel, which shall conform to Section
10.04.  The Trustee shall not be liable for any action it takes or
omits to take in good faith in reliance on such certificate or
opinion;

       

      (3)          the
Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any agent appointed with due
care;

       

      (4)          the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Holders, unless such Holders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities that might be
incurred by it in compliance with such request or direction;

       

      (5)          the
Trustee shall not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within its rights or powers or for
any action it takes or omits to take in accordance with the direction of the
Holders of a majority in principal amount at maturity of the outstanding Notes
relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred upon
the Trustee, under this Indenture; provided that the Trustee’s conduct does not
constitute gross negligence or bad faith;

       

      (6)          whenever
in the administration of this Indenture the Trustee shall deem it desirable that
a making be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an Officers’
Certificate;

       

      (7)          the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the books,
records and premises of FelCor LP personally or by agent or
attorney;

       

      (8)          the
Trustee shall not be deemed to have notice, or charged with having knowledge, of
an Event of Default except (i) any Default or Event of Default occurring
pursuant to Sections 6.01(a) and 6.01(b) or (ii) any Default or Event of Default
of which a Responsible Officer of the Trustee shall have received written
notification at the Corporate Trust Office referencing the Notes and this
Indenture or obtained actual knowledge.

       

      SECTION
7.03.          Individual Rights of
Trustee.  

       

      The
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Notes and may otherwise deal with FelCor LP, the Guarantors, or
their Affiliates with the same rights it would have if it were not the
Trustee.  Any Agent may do the same with like
rights.  How-ever, the Trustee is subject to TIA Sections 310(b) and
311.

       

      SECTION
7.04.           Trustee’s
Disclaimer.

       

      The
Trustee (i) makes no representation as to the validity or adequacy of this
Indenture or the Notes, (ii) shall not be accountable for FelCor LP’s use
or application of the proceeds from the Notes, (iii) shall not be responsible
for any statement in the Notes other than its certificate of authentication and
(iv) shall have no responsibility for any information or statements contained in
any offering or other disclosure documents prepared in connection with the
offering and the sale of the Notes other than the information provided by the
Trustee to FelCor or FelCor LP, other than its certificate of
authentication.

       

      SECTION
7.05.             Notice of
Default.

       

      If any
Default or any Event of Default occurs and is continuing and if such Default or
Event of Default is known to a Responsible Officer of the Trustee, the Trustee
shall mail to each Holder in the manner and to the extent provided in TIA
Section 313(c) and to the Escrow Agent notice of the

       

      
        
           

        

        
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      Default
or Event of Default within 45 days after it occurs, unless such Default or Event
of Default has been cured; provided, however, that, except in the
case of a default in the payment of the principal of, premium, if any, or
interest on any Note, the Trustee shall be protected in withholding such notice
if and so long as the board of directors, the executive committee or a trust
committee of directors and/or Responsible Officers of the Trustee in good faith
determine that the withholding of such notice is in the interest of the
Holders.

       

      SECTION
7.06.           Reports by Trustee to
Holders.

       

                   
Within 60 days after each May 15, beginning with May 15, 2010, the Trustee
shall mail to each Holder as provided in TIA Section 313(c) a brief report dated
as of such May 15 but only if required by TIA Section 313(a) (but if no event
described in TIA Section 313(a) has occurred within the 12 months preceding the
reporting date, no report need be transmitted). The Trustee also shall comply
with TIA Section 313(b)(2). The Trustee shall also transmit by mail all reports
as required by TIA Section 313(c).

       

      A copy of
each report at the time of its mailing to the Holders of Notes shall be mailed
to FelCor LP and filed with the Commission and each stock exchange on which the
Notes are listed in accordance with TIA Section 313(d). FelCor LP shall promptly
notify the Trustee when the Notes are listed on any stock
exchange..

       

      SECTION
7.07.       Compensation and
Indemnity.  

       

      FelCor LP
shall pay to the Trustee such compensation as shall be agreed upon in writing
for its services.  The compensation of the Trustee shall not be
limited by any law on compensation of a trustee of an express
trust.  FelCor LP shall reimburse the Trustee upon request for
all reasonable out-of-pocket expenses and advances incurred or made by the
Trustee.  Such expenses shall include the reasonable compensation and
expenses of the Trustee’s agents and counsel.

       

      FelCor LP
shall indemnify the Trustee and its officers, directors, employees and agents
and save Trustee and its officers, directors, employees and agents harmless from
and against any and all Claims (as hereinafter defined) and Losses (as
hereinafter defined) which may be incurred by Trustee or any of such officers,
directors, employees or agents as a result of Claims asserted against Trustee or
any of such officers, directors, employees or agents as a result of or in
connection with Trustee’s capacity as such under this Indenture by any person or
entity.  For the purposes hereof, the term “Claims” shall mean all
claims, lawsuits, causes of action or other legal actions and proceedings of
whatever nature brought against (whether by way of direct action, counterclaim,
cross action or impleader) Trustee or any such officer, director, employee or
agent, even if groundless, false or fraudulent, so long as the claim, lawsuit,
cause of action or other legal action or proceeding is alleged or determined,
directly or indirectly, to arise out of, result from, relate to or be based
upon, in whole or in part: (a) the acts or omissions of FelCor LP or any
Guarantor, (b) the appointment of Trustee as trustee under this Indenture, or
(c) the performance by Trustee of its powers and duties under this Indenture;
and the term “Losses”
shall mean losses, costs, damages, expenses, judgments and liabilities of
whatever nature (including but not limited to attorneys’, accountants’ and other
professionals’ fees, litigation and court costs and expenses and amounts paid in
settlement), directly or indirectly resulting from, arising out of or relating
to one or more Claims.  Upon the written request of Trustee or any
such officer, director, employee or agent (each referred to hereinafter as an
“Indemnified Party”),
FelCor LP shall assume the investigation and defense of any Claim,
including the employment of counsel acceptable to the applicable Indemnified
Party and the payment of all expenses related thereto and notwithstanding any
such assumption, the Indemnified Party shall have the right, and FelCor LP
shall pay the cost and expense thereof, to employ separate counsel with respect
to any such Claim and participate in the investigation and defense thereof in
the event that such Indemnified Party shall have been advised by counsel that
there may be one or more legal defenses available to such Indemnified Party
which are different from or additional to those available to
FelCor LP.  FelCor LP hereby agrees that the
indemnifications and protections afforded Trustee in this section shall survive
the termination of this Indenture.  Notwithstanding the foregoing, no
indemnification shall be available hereunder to the extent that a court of
competent jurisdiction determines in a non-appealable order that the Loss or
Claim for which such indemnification is sought was directly caused by the
negligence or bad faith of the Indemnified Party.

       

      To secure
FelCor LP’s payment obligations in this Section 7.07, the Trustee shall
have a lien prior to the Notes on all money or property held or collected by the
Trustee, in its capacity as Trustee, except money or property held in trust to
pay principal of, premium, if any, and interest on particular
Notes.

       

      If the
Trustee incurs expenses or renders services after the occurrence of an Event of
Default specified in clause (g) or (h) of Section 6.01, the expenses and the
compensation for the services will be intended to constitute

       

      
        
           

        

        
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      expenses
of administration under Title 11 of the United States Bankruptcy Code or any
applicable federal or state law for the relief of debtors.

       

      The
provisions of this Section shall survive the termination of this
Indenture.

       

      SECTION
7.08.         Replacement of
Trustee.  

       

      A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section 7.08.

       

      The
Trustee may resign at any time by so notifying FelCor LP in writing at
least 30 days prior to the date of the proposed resignation.  The
Holders of a majority in principal amount of the outstanding Notes may remove
the Trustee by so notifying the Trustee in writing and may appoint a successor
Trustee with the consent of FelCor LP.  FelCor LP may at any
time remove the Trustee, by Company Order given at least 30 days prior to the
date of the proposed removal.

       

      If the
Trustee resigns or is removed, or if a vacancy exists in the office of Trustee
for any reason, FelCor LP shall promptly appoint a successor
Trustee.  Within one year after the successor Trustee takes office,
the Holders of a majority in principal amount of the outstanding Notes may
appoint a successor Trustee to replace the successor Trustee appointed by
FelCor LP.  If the successor Trustee does not deliver its written
acceptance required by the next succeeding paragraph of this Section 7.08 within
30 days after notice is given by FelCor LP or the Trustee, as the case may
be, of such resignation or removal, the retiring Trustee, FelCor LP or the
Holders of a majority in principal amount of the outstanding Notes may petition
any court of competent jurisdiction for the appointment of a successor
Trustee.

       

      A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to FelCor LP.  Immediately after the delivery of
such written acceptance, subject to the lien provided in Section 7.07, (i) the
retiring Trustee shall transfer all property held by it as Trustee to the
successor Trustee, (ii) the resignation or removal of the retiring Trustee shall
become effective and (iii) the successor Trustee shall have all the rights,
powers and duties of the Trustee under this Indenture.  A successor
Trustee shall mail notice of its succession to each Holder.

       

      If the
Trustee is no longer eligible under Section 7.10, any Holder who satisfies the
requirements of TIA Section 310(b) may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

       

      FelCor LP
shall give notice of any resignation and any removal of the Trustee and each
appointment of a successor Trustee to all Holders.  Each notice shall
include the name of the successor Trustee and the address of its Corporate Trust
Office.

       

      Notwithstanding
replacement of the Trustee pursuant to this Section 7.08, FelCor LP’s
obligation under Section 7.07 shall continue for the benefit of the retiring
Trustee.

       

      SECTION
7.09.             Successor Trustee by Merger,
Etc.

       

      If the
Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation or
national banking association, the resulting, surviving or transferee corporation
or national banking association without any further act shall be the successor
Trustee with the same effect as if the successor Trustee had been named as the
Trustee herein.

       

      SECTION
7.10.            Eligibility.  

       

      This
Indenture shall always have a Trustee who satisfies the requirements of TIA
Section 310(a)(1).  The Trustee shall have a combined capital and
surplus of at least $25,000,000 as set forth in its most recent filed annual
report of condition.

       

      SECTION
7.11.          Money Held in
Trust.  

       

      The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree with FelCor LP.  Money held in trust by the
Trustee need not be segregated from other funds except to the extent required by
law and except for money held in trust under Article Eight of this
Indenture.

       

      
        
           

        

        
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      SECTION
7.12.          Withholding Taxes.  

       

      The
Trustee, as agent for FelCor LP, shall exclude and withhold from each
payment of principal and interest and other amounts due hereunder or under the
Notes any and all with-holding taxes applicable thereto as required by
law.  The Trustee agrees to act as such withholding agent and, in
connection therewith, whenever any present or future taxes or similar charges
are required to be withheld with respect to any amounts payable in respect of
the Notes, to withhold such amounts and timely pay the same to the appropriate
authority in the name of and on behalf of the Holders of the Notes, that it will
file any necessary withholding tax returns or statements when
due.  FelCor LP or the Trustee shall, as promptly as possible
after the payment of the taxes described above, deliver to each Holder of a Note
appropriate documentation showing the payment thereof, together with such
additional documentary evidence as such Holders may reasonably request from time
to time.

       

      SECTION
7.13.           Escrow
Authorization.  

       

      Each
Holder, by its acceptance of a Note, consents and agrees to the terms of the
Escrow Agreement, including related documents thereto, as the same may be in
effect or may be amended from time to time in writing by the parties thereto
(provided that no amendment that would materially adversely affect the rights of
the Holders may be effected without the consent of each Holder of Notes affected
thereby), and authorizes and directs the Trustee to enter into the Escrow
Agreement and to perform its obligations and exercise its rights thereunder in
accordance therewith.  Escrow Subsidiary shall do or cause to be done
all such acts and things as may be necessary or proper, or as may be required by
the provisions of the Escrow Agreement, to assure and confirm to the Trustee the
security interest contemplated by the Escrow Agreement or any part thereof, as
from time to time constituted, so as to render the same available for the
security and benefit of this Indenture and of the Notes secured hereby,
according to the intent and purpose herein expressed.  Escrow
Subsidiary shall take, or shall cause to be taken, upon request of the Trustee,
any and all actions reasonably required to cause the Escrow Agreement to create
and maintain, as security for the obligations of Escrow Subsidiary under this
Indenture and the Notes as provided in the Escrow Agreement, valid and
enforceable first priority perfected liens in and on all the Escrow Property, in
favor of the Trustee for its benefit and the ratable benefit of the Holders,
superior to and prior to the rights of third Persons and subject to no other
Liens.

       

      ARTICLE
EIGHT

       

      DISCHARGE
OF INDENTURE

       

      SECTION
8.01.         Termination of Company’s
Obligations.  

       

      Except as
otherwise provided in this Section 8.01, FelCor LP may terminate its
obligations under the Notes and this Indenture if:

       

      (1)           all
Notes previously authenticated and delivered (other than destroyed, lost or
stolen Notes that have been replaced or Notes that are paid pursuant to Section
4.01 or Notes for whose payment money or securities have theretofore been held
in trust and thereafter repaid to FelCor LP, as provided in Section 8.05)
have been delivered to the Trustee for cancellation and FelCor LP has paid
all sums payable by it hereunder; or

       

      (2)           (A)
the Notes mature within one year or all of them are to be called for redemption
within one year under arrangements satisfactory to the Trustee for giving the
notice of redemption, (B) FelCor LP irrevocably deposits in trust with the
Trustee during such one-year period, under the terms of an irrevocable trust
agreement in form and substance satisfactory to the Trustee, as trust funds
solely for the benefit of the Holders for that purpose, money or U.S. Government
Obligations sufficient (in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee), without consideration of any reinvestment of any
interest thereon, to pay principal, premium, if, any, and interest on the Notes
to maturity or redemption, as the case may be, and to pay all other sums payable
by it hereunder, (C) after giving pro forma effect to such deposit, no Default
or Event of Default with respect to the Notes shall have occurred and be
continuing on the date of such deposit, (D) after pro forma effect to such
deposit, such deposit will not result in a breach or violation of, or constitute
a default under, this Indenture or any other agreement or instrument to which
FelCor or FelCor LP is a party or by which they are bound and (E) FelCor
and FelCor LP have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, in each case stating that all conditions precedent provided
for herein relating to the satisfaction and discharge of this Indenture have
been complied with.

       

      
        
           

        

        
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      With
respect to the foregoing clause (i), FelCor LP’s obligations under Section
7.07 shall survive.  With respect to the foregoing clause (ii),
FelCor LP’s obligations in Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07,
2.08, 2.09, 2.14, 4.01, 4.02, 7.07, 7.08, 8.04, 8.05 and 8.06 and FelCor LP’s
optional redemption rights shall survive until the Notes are no longer
outstanding.  Thereafter, only FelCor LP’s obligations in
Sections 7.07, 8.05 and 8.06 shall survive.  After any such
irrevocable deposit, the Trustee upon request shall acknowledge in writing the
discharge of FelCor LP’s and the Guarantors’ obligations under the Notes,
the Note Guarantees, the Collateral Documents and this Indenture except for
those surviving obligations specified above.

       

      SECTION
8.02.           Defeasance and Discharge of
Indenture.  

       

      FelCor LP,
FelCor and the Subsidiary Guarantors will be deemed to have paid and will be
discharged from any and all obligations in respect of the Notes or any
Subsidiary Guarantee pursuant to Article Eleven on the 123rd day after the date
of the deposit referred to in clause (A) of this Section 8.02, and the
provisions of this Indenture will no longer be in effect with respect to the
Notes, and the Trustee, at the expense of FelCor LP, shall execute proper
instruments acknowledging the same; provided that the following
conditions shall have been satisfied:

       

      (A) with
reference to this Section 8.02, FelCor LP has deposited or caused to be
deposited with the Trustee (or another trustee satisfying the requirements of
Section 7.10 of this Indenture) and conveyed all right, title and interest for
the benefit of the Holders, under the terms of a trust agreement in form and
substance satisfactory to the Trustee as trust funds in trust, specifically
pledged to the Trustee for the benefit of the Holders as security for payment of
the principal of, premium, if any, and interest, if any, on the Notes, and
dedicated solely to, the benefit of the Holders, in and to (1) money in an
amount, (2) U.S. Government Obligations that, through the payment of interest,
premium, if any, and principal in respect thereof in accordance with their
terms, will provide, not later than one day before the due date of any payment
referred to in this clause (A), money in an amount or (3) a combination thereof
in an amount sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, without consideration of the
reinvestment of such interest and after payment of all federal, state and local
taxes or other charges and assessments in respect thereof payable by the
Trustee, the principal of, premium, if any, and accrued interest on the
outstanding Notes at the Stated Maturity of such principal or interest; provided that the Trustee
shall have been irrevocably instructed to apply such money or the proceeds of
such U.S. Government Obligations to the payment of such principal, premium, if
any, and interest with respect to the Notes;

       

      (B) such
material deposit will not result in a breach or violation of, or constitute a
default under, this Indenture or any other agreement or instrument to which
FelCor LP, FelCor or any of their respective Restricted Subsidiaries is a
party or by which FelCor LP, FelCor or any of their respective Restricted
Subsidiaries is a party or by which FelCor LP is bound;

       

      (C) immediately
after giving effect to such deposit on a pro forma basis, no Default
or Event of Default shall have occurred and be continuing on the date of such
deposit or during the period ending on the 123rd day after such date of
deposit;

       

      (D) FelCor LP
shall have delivered to the Trustee (1) either (x) a ruling directed to the
Trustee received from the Internal Revenue Service to the effect that the
Holders will not recognize income, gain or loss for federal income tax purposes
as a result of FelCor LP’s exercise of its option under this Section 8.02
and will be subject to federal income tax on the same amount and in the same
manner and at the same times as would have been the case if such option had not
been exercised or (y) an Opinion of Counsel to the same effect as the ruling
described in clause (x) above accompanied by a ruling to that effect published
by the Internal Revenue Service, unless there has been a change in the
applicable federal income tax law since the date of this Indenture such that a
ruling from the Internal Revenue Service is no longer required and (2) an
Opinion of Counsel to the effect that the creation of the defeasance trust does
not violate the Investment Company Act of 1940;

       

      (E) if the
Notes are then listed on a national securities exchange, FelCor LP shall
have delivered to the Trustee an Opinion of Counsel to the effect that such
deposit defeasance and discharge will not cause the Notes to be delisted;
and

       

      
         

        
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      (F) FelCor LP
has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
in each case stating that all conditions precedent provided for herein relating
to the defeasance contemplated by this Section 8.02 have been complied
with.

       

      FelCor LP’s
obligations in Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 2.14,
4.01, 4.02, 7.07, 7.08, 8.05 and 8.06 and FelCor LP’s redemption rights shall
survive until the Notes are no longer outstanding.  Thereafter, only
FelCor LP’s obligations in Sections 7.07, 8.05 and 8.06 shall
survive.  If and when a ruling from the Internal Revenue Service or an
Opinion of Counsel referred to in clause (D)(1) of this Section 8.02 is able to
be provided specifically without regard to, and not in reliance upon, the
continuance of FelCor LP’s obligations under Section 4.01, then FelCor LP’s
obligations under such Section 4.01 shall cease upon delivery to the Trustee of
such ruling or Opinion of Counsel and compliance with the other conditions
precedent provided for herein relating to the defeasance contemplated by this
Section 8.02.

       

      After any
such irrevocable deposit, the Trustee upon request shall acknowledge in writing
the discharge of FelCor LP’s obligations under the Notes, the Note
Guarantees, this Indenture and the Collateral Documents except for those
surviving obligations in the immediately preceding paragraph.

       

      SECTION
8.03.        Defeasance of Certain
Obligations.  

       

      FelCor LP
may omit to comply with any term, provision or condition set forth in clause
(iii) or (iv) under Section 5.01 and Sections 4.03 through 4.19 and Section
4.21, clauses (c) and (d) under Section 6.01 with respect to such clause (iii)
or (iv) under Section 5.01 and Sections 4.03 through 4.19 and Section 4.21 and
Article Twelve, and clauses (e) and (f) under Section 6.01 shall be deemed not
to be Events of Default, in each case with respect to the outstanding Notes
if:

       

      (i)           with
reference to this Section 8.03, FelCor LP has irrevocably deposited or
caused to be irrevocably deposited with the Trustee (or another trustee
satisfying the requirements of Section 7.10) and conveyed all right, title and
interest to the Trustee for the benefit of the Holders, under the terms of an
irrevocable trust agreement in form and substance satisfactory to the Trustee as
trust funds in trust, specifically pledged to the Trustee for the benefit of the
Holders as security for payment of the principal of, premium, if any, and
interest, if any, on the Notes, and dedicated solely to, the benefit of the
Holders, in and to (A) money in an amount, (B) U.S. Government Obligations that,
through the payment of interest and principal in respect thereof in accordance
with their terms, will provide, not later than one day before the due date of
any payment referred to in this clause (i), money in an amount or (C) a
combination thereof in an amount sufficient, in the opinion of a nationally
recognized firm of independent public accountants ex-pressed in a written
certification thereof delivered to the Trustee, to pay and discharge, without
consideration of the reinvestment of such interest and after payment of all
federal, state and local taxes or other charges and assessments in respect
thereof payable by the Trustee, the principal of, premium, if any, and interest
on the outstanding Notes on the Stated Maturity of such principal or interest;
provided that the
Trustee shall have been irrevocably instructed to apply such money or the
proceeds of such U.S. Government Obligations to the payment of such principal,
premium, if any, and interest with respect to the Notes;

       

      (ii)           such
deposit will not result in a breach or violation of, or constitute a default
under, this Indenture or any other agreement or instrument to which
FelCor LP, FelCor or any of their Restricted Subsidiaries is a party or by
which FelCor LP, FelCor or any of their Restricted Subsidiaries is
bound;

       

      (iii)           after
giving pro forma effect to the deposit referred to in clause (i) above, no
Default or Event of Default shall have occurred and be continuing on the date of
such deposit;

       

      (iv)           FelCor LP
has delivered to the Trustee an Opinion of Counsel to the effect that (A) the
creation of the defeasance trust does not violate the Investment Company Act of
1940, (B) the Holders have a valid first-priority security interest in the trust
funds and (C) the Holders will not recognize income, gain or loss for federal
income tax purposes as a result of such deposit and defeasance of certain
obligations and will be subject to federal income tax on the same amount and in
the same manner and at the same times as would have been the case if such
deposit and defeasance had not occurred;

       

      
        
           

        

        
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      (v)           if
the Notes are then listed on a national securities exchange, FelCor LP
shall have delivered to the Trustee an Opinion of Counsel to the effect that
such deposit defeasance and discharge will not cause the Notes to be delisted;
and

       

      (vi)           FelCor LP
has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
in each case stating that all conditions precedent provided for herein relating
to the defeasance contemplated by this Section 8.03 have been complied
with.

       

      SECTION
8.04.      Application of Trust
Money.  

       

      Subject
to Section 8.06, the Trustee or Paying Agent shall hold in trust money or U.S.
Government Obligations deposited with it pursuant to Section 8.01, 8.02 or 8.03,
as the case may be, and shall apply the deposited money and the money from U.S.
Government Obligations in accordance with the Notes and this Indenture to the
payment of principal of, premium, if any, and interest on the Notes; but such
money need not be segregated from other funds except to the extent required by
law.

       

      SECTION
8.05.      Repayment to
Company.  

       

      Subject
to Sections 7.07, 8.01, 8.02 and 8.03, the Trustee and the Paying Agent shall
promptly pay to FelCor LP upon request set forth in an Officers’
Certificate any excess money held by them at any time and thereupon shall be
relieved from all liability with respect to such money.  The Trustee
and the Paying Agent shall pay to FelCor LP upon request any money held by
them for the payment of principal, premium, if any, or interest that remains
unclaimed for two years; provided that the Trustee or
such Paying Agent before being required to make any payment may cause to be
published at the expense of FelCor LP once in a newspaper of general
circulation in The City of New York or mail to each Holder entitled to such
money at such Holder’s address (as set forth in the Note Register) notice that
such money remains unclaimed and that after a date specified therein (which
shall be at least 30 days from the date of such publication or mailing) any
unclaimed balance of such money then remaining will be repaid to
FelCor LP.  After payment to FelCor LP, Holders entitled to
such money must look to FelCor LP for payment as general creditors unless
an applicable law designates another Person, and all liability of the Trustee
and such Paying Agent with respect to such money shall cease.

       

      SECTION
8.06      Reinstatement.  

       

      If the
Trustee or Paying Agent is unable to apply any money or U.S. Government
Obligations in accordance with Section 8.01, 8.02 or 8.03, as the case may be,
by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, FelCor LP’s obligations under this Indenture and the
Notes shall be revived and reinstated as though no deposit had occurred pursuant
to Section 8.01, 8.02 or 8.03, as the case may be, until such time as the
Trustee or Paying Agent is permitted to apply all such money or U.S. Government
Obligations in accordance with Section 8.01, 8.02 or 8.03, as the case may be;
provided that, if
FelCor LP has made any payment of principal of, premium, if any, or
interest on any Notes because of the reinstatement of its obligations,
FelCor LP shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money or U.S. Government Obligations held by the
Trustee or Paying Agent.

       

      ARTICLE
NINE

       

      AMENDMENTS,
SUPPLEMENTS AND WAIVERS

       

      SECTION
9.01.       Without Consent of
Holders.  

       

      FelCor,
FelCor LP, the Pledgor (if applicable) and the Subsidiary Guarantors when
authorized by a resolution of their Board of Directors, and the Trustee may
amend or supplement this Indenture, the Notes or the Collateral Documents
without notice to or the consent of any Holder:

       

      (1)           to
cure any ambiguity, defect or inconsistency in this Indenture; provided that such amendments
or supplements shall not adversely affect the interests of the Holders in any
material respect;

       

      (2)           to
comply with Section 4.07 or Article Five;

       

      (3)           to
comply with any requirements of the Commission in connection with the
qualification of this Indenture under the TIA;

       

      
         

        
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      (4)          to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee;

       

      (5)          to
secure or Guarantee the Notes;

       

      (6)          to
make any change that, in the good faith opinion of the Board of Directors as
evidenced by a Board Resolution, does not materially and adversely affect the
rights of any Holder; or

       

      (7)          to
add any Collateral to secure the Notes and to release any Collateral pursuant to
the terms hereof or the Collateral Documents.

       

      SECTION
9.02.        With Consent of
Holders.  

       

      Subject
to Sections 6.04 and 6.07 and without prior notice to the Holders, FelCor,
FelCor LP, the Pledgor (if applicable) and the Subsidiary Guarantors, when
authorized by their Board of Directors (as evidenced by a Board Resolution), and
the Trustee may amend this Indenture, the Notes and the Collateral Documents
with the written consent of the Holders of a majority in aggregate principal
amount at maturity of the Notes then outstanding (except that any amendment or
supplement to Article Twelve or any other provision of this Indenture relating
to the Collateral shall require consents from Holders of not less than 66-2/3%
of the aggregate principal amount at maturity of the Notes then outstanding),
and the Holders of a majority in aggregate principal amount at maturity of the
Notes then outstanding by written notice to the Trustee may waive future
compliance by FelCor, FelCor LP, or the Pledgor (if applicable) with any
provision of this Indenture or the Notes (except that any waiver of compliance
with Article Twelve or any other provision of this Indenture relating to the
Collateral shall require consents from Holders of not less than 66-2/3% of the
aggregate principal amount at maturity of the Notes then
outstanding).

       

      Notwithstanding
the provisions of this Section 9.02, without the consent of each Holder
affected, an amendment or waiver, including a waiver pursuant to Section 6.04,
may not:

       

      (i)           change
the Stated Maturity of the principal of, or any installment of interest on, any
Note;

       

      (ii)           reduce
the principal amount of, or premium, if any, or interest on, any
Note;

       

      (iii)           change
the place of payment of principal of, or premium, if any, or interest on, any
Note;

       

      (iv)           impair
the right to institute suit for the enforcement of any payment on or after the
Stated Maturity (or, in the case of a redemption, on or after the Redemption
Date) of any Note;

       

      (v)           reduce
the percentage of outstanding Notes, the consent of whose Holders is necessary
to modify or amend this Indenture;

       

      (vi)           waive
a Default in the payment of principal of, premium, if any, or interest on the
Notes;

       

      (vii)           voluntarily
release a Guarantor of the Notes;

       

      (viii)           release
the Liens created by the Collateral Documents on all or substantially all of the
Collateral (other than in accordance with the terms of this Indenture and the
Collateral Documents);

       

      (ix)           make
any change in the provisions of this Indenture or any Collateral Document
dealing with the application of proceeds of the Collateral that would have a
materially adverse effect on the Holders;

       

      (x)           after
the time an Offer to Purchase is required to have been made under Section 4.10,
Section 4.11, after a Loss Proceeds Offer is required to have been made under
Section 4.12, or after the time a Change of Control Offer is required to have
been made under Section 4.13, reduce the purchase amount or price or extend the
latest date or purchase date thereunder;

       

      
         

        
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      (xi)           modify
any of the provisions of this Section 9.02, except to increase any such
percentage or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holder of each outstanding Note
affected thereby; or

       

      (xii)           reduce
the percentage or aggregate principal amount of outstanding Notes the consent of
whose Holders is necessary for waiver of compliance with certain provisions of
this Indenture or for waiver of certain defaults.

       

      It shall
not be necessary for the consent of the Holders under this Section 9.02 to
approve the particular form of any proposed amendment, supplement or waiver, but
it shall be sufficient if such consent approves the sub-stance
thereof.

       

      After an
amendment, supplement or waiver under this Section 9.02 becomes effective,
FelCor LP shall mail to the Holders affected thereby a notice briefly
describing the amendment, supplement or waiver.  FelCor LP shall
mail supplemental indentures to Holders upon request.  Any failure of
FelCor LP to mail such notice, or any defect therein, shall not, however,
in any way impair or affect the validity of any such supplemental indenture or
waiver.

       

      SECTION
9.03.       Revocation and Effect of
Consent.  

       

      Until an
amendment, supplement or waiver becomes effective, a consent to it by a Holder
is a continuing consent by the Holder and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the Note of the consenting
Holder, even if notation of the consent is not made on any
Note.  However, any such Holder or subsequent Holder may revoke the
consent as to its Note or portion of its Note.  Such revocation shall
be effective only if the Trustee receives the notice of revocation before the
date the amendment, supplement or waiver becomes effective.  An
amendment, supplement or waiver shall become effective on receipt by the Trustee
of written consents from the Holders of the requisite percentage in principal
amount of the outstanding Notes.

       

      FelCor LP
may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement or
waiver.  If a record date is fixed, then, notwithstanding the last two
sentences of the immediately preceding paragraph, those persons who were Holders
at such record date (or their duly designated proxies) and only those persons
shall be entitled to consent to such amendment, supplement or waiver or to
revoke any consent previously given, whether or not such persons continue to be
Holders after such record date.  No such consent shall be valid or
effective for more than 90 days after such record date.

       

      After an
amendment, supplement or waiver becomes effective, it shall bind every Holder
unless it is of the type described in any of clauses (i) through (ix) of Section
9.02.  In case of an amendment or waiver of the type described in
clauses (i) through (ix) of Section 9.02, the amendment or waiver shall bind
each Holder who has consented to it and every subsequent Holder of a Note that
evidences the same indebtedness as the Note of the consenting
Holder.

       

      SECTION
9.04.        Notation on or Exchange of
Notes.  

       

      If an
amendment, supplement or waiver changes the terms of a Note, the Trustee may
require the Holder to deliver it to the Trustee.  The Trustee may
place an appropriate notation on the Note about the changed terms and return it
to the Holder and the Trustee may place an appropriate notation on any Note
thereafter authenticated.  Alternatively, if FelCor LP or the
Trustee so determines, FelCor LP in exchange for the Note shall issue and
the Trustee shall authenticate a new Note that reflects the changed
terms.

       

      Failure
to make the appropriate notation or issue a new Note shall not affect the
validity and effect of such amendment, supplement or waiver.

       

      SECTION
9.05         Trustee To Sign Amendments,
Etc.  

       

      The
Trustee shall be entitled to receive, and shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of any amendment,
supplement or waiver authorized pursuant to this Article Nine is authorized or
permitted by this Indenture.  Subject to the preceding sentence, the
Trustee shall sign such amendment, supplement or waiver if the same does not
adversely affect

       

      
        
           

        

        
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      the
rights of the Trustee.  The Trustee may, but shall not be obligated
to, execute any such amendment, supplement or waiver that affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise.

       

      SECTION
9.06.        Conformity with Trust Indenture
Act.  

       

      Every
supplemental indenture executed pursuant to this Article Nine shall conform to
the requirements of the TIA as then in effect.

       

      ARTICLE
TEN

       

      MISCELLANEOUS

       

      SECTION
10.01.         Trust Indenture Act of
1939.  

       

      Prior to
the effectiveness of the Registration Statement, this Indenture shall
incorporate and be governed by the provisions of the TIA that are required to be
part of and to govern indentures qualified under the TIA.  After the
effectiveness of the Registration Statement, this Indenture shall be subject to
the provisions of the TIA that are required to be a part of this Indenture and
shall, to the extent applicable, be governed by such provisions.

       

      SECTION
10.02.        Notices.  

       

      Any
notice or communication shall be sufficiently given if in writing and delivered
in person or mailed by first class mail addressed as follows:

       

      
        	
                 
      

              	
                if
      to FelCor, FelCor LP, the Pledgor or any Subsidiary
      Guarantor:

              

      

       

      

       

      
        	
                 
      

              	
                c/o
      FelCor Lodging Trust Incorporated

              

      

       

      
        	
                 
      

              	
                545
      East John Carpenter Freeway

              

      

       

      
        	
                 
      

              	
                Suite
      1300

              

      

       

      
        	
                 
      

              	
                Irving,
      Texas  75062

              

      

       

      
        	
                 
      

              	
                Attention:  General
      Counsel

              

      

       

      
        	
                 
      

              	
                if
      to the Trustee:

              

      

       

      

       

      
        	
                 
      

              	
                U.S.
      Bank National Association

              

      

       

      
        	
                 
      

              	
                60
      Livingston Avenue

              

      

       

      
        	
                 
      

              	
                EP-MN-WS3C

              

      

       

      
        	
                 
      

              	
                St.
      Paul,
Minnesota  55107-2292

              

      

       

      
        	
                 
      

              	
                Attention:  Corporate
      Trust Department

              

      

       

      FelCor,
FelCor LP, the Pledgor or a Subsidiary Guarantor or the Trustee by notice
to the other may designate additional or different addresses for subsequent
notices or communications.

       

      Any
notice or communication mailed to a Holder shall be mailed to him at his address
as it appears on the Note Register by first class mail and shall be sufficiently
given to him if so mailed within the time prescribed.  Copies of any
such communication or notice to a Holder shall also be mailed to the Trustee and
each Agent at the same time.

       

      Failure
to mail a notice or communication to a Holder or any defect in it shall not
affect its sufficiency with respect to other Holders.  Except for a
notice to the Trustee, which is deemed given only when received, and except as
otherwise provided in this Indenture, if a notice or communication is mailed in
the manner provided in this Section 10.02, it is duly given, whether or not the
addressee receives it.

       

      Where
this Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such
notice.  Waivers of notice by Holders shall be filed with the Trustee,
but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

       

      
         

        
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      In case
by reason of the suspension of regular mail service or by reason of any other
cause it shall be impracticable to give such notice by mail, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.

       

      SECTION
10.03.       Certificate and Opinion as to
Conditions Precedent.  

       

      Upon any
request or application by FelCor LP to the Trustee to take any action under
this Indenture, FelCor LP shall furnish to the Trustee:

       

      (i)           an
Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and

       

      (ii)           an
Opinion of Counsel stating that, in the opinion of such Counsel, all such
conditions precedent have been complied with.

       

      In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
eligible and qualified Persons as to other matters, and any such Person may
certify or give an opinion as to such matters in one or several
documents.

       

      Any
certificate or opinion of an Officer of FelCor LP may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations
by, counsel, unless such Officer knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
the matters upon which his certificate or opinion is based are erroneous. Any
certificate or Opinion of Counsel may be based, insofar as it relates to factual
matters, upon a certificate or opinion of, or representations by, an Officer or
Officers of FelCor LP stating the information on which counsel is relying unless
such counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are
erroneous.

       

      SECTION
10.04.     Statements Required in Certificate
or Opinion.  

       

      Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:

       

      (i)           a
statement that each person signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

       

      (ii)           a
brief statement as to the nature and scope of the examination or investigation
upon which the statement or opinion contained in such certificate or opinion is
based;

       

      (iii)           a
statement that, in the opinion of each such person, he has made such examination
or investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with;
and

       

      (iv)           a
statement as to whether or not, in the opinion of each such person, such
condition or covenant has been complied with; provided, however, that, with respect
to matters of fact, an Opinion of Counsel may rely on an Officers’ Certificate
or certificates of public officials.

       

      SECTION
10.05.     Rules by Trustee, Paying Agent or
Registrar.  

       

      The
Trustee may make reasonable rules for action by or at a meeting of
Holders.  The Paying Agent or Registrar may make reasonable rules for
its functions.

       

      SECTION
10.06.      Payment Date Other Than a Business
Day.  

       

      If an
Interest Payment Date, Redemption Date, Payment Date, Stated Maturity or date of
maturity of any Note shall not be a Business Day, then payment of principal of,
premium, if any, interest or Additional Interest, if any, on such Note, as the
case may be, need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on the
Interest Payment Date, Payment Date, or Redemption Date, or at the Stated
Maturity or date of maturity of such Note; provided that no interest
shall accrue for the period from and after such Interest Payment Date, Payment
Date, Redemption Date, Stated Maturity or date of maturity, as the case may
be.

       

      
         

        
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      SECTION
10.07.         Governing Law.  

       

      The laws
of the State of New York shall govern this Indenture and the
Notes.  The Trustee, FelCor LP and the Holders agree to submit to
the jurisdiction of the courts of the State of New York in any action or
proceeding arising out of or relating to this Indenture or the
Notes.  Notwithstanding the foregoing, the situs of the trusts created
hereunder shall be deemed to be the Corporate Trust Office at which location the
trusts shall be administered.

       

      SECTION
10.08.       No Adverse Interpretation of Other
Agreements.  

       

      This
Indenture may not be used to interpret another indenture, loan or debt agreement
of FelCor LP, the Guarantors or any Subsidiary of any such
Person.  Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.

       

      SECTION
10.09.       No Recourse Against
Others. 

       

       No
recourse for the payment of the principal of, premium, if any, or interest on
any of the Notes, or for any claim based thereon or otherwise in respect
thereof, and no recourse under or upon any obligation, covenant or agreement of
FelCor LP, the Guarantors or the Pledgors contained in this Indenture, or
in any of the Notes, or because of the creation of any Indebtedness represented
thereby, shall be had against any incorporator or against any past, present or
future limited partner, stockholder, other equity holder (other than a general
partner), officer, director, employee or controlling person, as such, of
FelCor LP, FelCor, the Subsidiary Guarantors or the Pledgors or of any
successor Person, either directly or through FelCor LP or any successor
Person, whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise; it being expressly
understood that all such liability is hereby expressly waived and released as a
condition of, and as a consideration for, the execution of this Indenture and
the issue of the Notes.

       

      SECTION
10.10.     Successors.  

       

      All
agreements of FelCor LP, FelCor, the Pledgor or the Subsidiary Guarantors
in this Indenture and the Notes shall bind its successors.  All
agreements of the Trustee in this Indenture shall bind its
successors.

       

      SECTION
10.11.     Duplicate
Originals.  

       

      The
parties may sign any number of copies of this Indenture.  Each signed
copy shall be an original, but all of them together represent the same
agreement.

       

      SECTION
10.12.     Separability.  

       

      In case
any provision in this Indenture or in the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

       

      SECTION
10.13.    Table of Contents, Headings,
Etc. 

       

      The Table
of Contents, Cross-Reference Table and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to
be considered a part hereof and shall in no way modify or restrict any of the
terms and provisions hereof.

       

      ARTICLE
ELEVEN

       

      GUARANTEE
OF THE NOTES

       

      SECTION
11.01.    Guarantee.  

       

      Subject
to the provisions of this Article Eleven, from and after the date of the
Assumption each Guarantor, jointly and severally, hereby unconditionally
guarantees to each Holder and to the Trustee on behalf of the
Holders:  (i) the due and punctual payment of the principal of,
premium if any, on and interest on the Notes, when and as the same shall become
due and payable, whether at maturity, by acceleration, redemption or otherwise,
the due and punctual payment of interest on the overdue principal of and
interest, if any, on the Notes, to the extent lawful, and the due and punctual
performance of all other obligations of FelCor LP to the Holders or the
Trustee, all in accordance with the terms of such Note and this Indenture and
(ii) in the case of any extension of time of payment or renewal of any Notes or
any of such other obligations, that the same will be promptly paid in full when
due or performed in accordance with the terms of the extension or renewal, at
Stated Maturity, by acceleration, redemption or otherwise.  Each
Guarantor hereby waives diligence, presentment, filing of claims with a court in
the event of merger or bankruptcy of FelCor LP, any right to require a
proceeding first against FelCor LP, the benefit of discussion, protest or
notice with respect to any such Note or the debt evidenced thereby and all
demands whatsoever (except as specified above), and covenants that this Article
Eleven will not be discharged as to any such Note except by payment in full of
the principal thereof and interest thereon and as provided in Sections 8.01 and
8.02.  The maturity of the obligations guaranteed hereby may be
accelerated as provided in

       

      
         

        
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      Article
Six for the purposes of this Article Eleven.  In the event of any
declaration of acceleration of such obligations as provided in Article Eleven,
such obligations (whether or not due and payable) shall become due and payable
immediately by the Guarantor for the purpose of this Article
Eleven.  In addition, without limiting the foregoing provisions, upon
the effectiveness of an acceleration under Article Six, the Trustee shall
promptly make a demand for payment on the Notes under the Guarantees provided
for in this Article Eleven.

       

      Each
Guarantor hereby irrevocably waives any claim or other rights which it may now
or hereafter acquire against performance or enforcement of such Guarantor’s
obligations under this Indenture, including, without limitation, any right of
subrogation, reimbursement, exoneration, contribution, indemnification, any
right to participate in any claim or remedy of the Holders against
FelCor LP, whether or not such claim, remedy or right arises in equity, or
under contract, statute or common law, including, without limitation, the right
to take or receive from FelCor LP, directly or indirectly, in cash or other
property or in any other manner, payment or security on account of such claim or
other rights.  If any amount shall be paid to any Guarantor in
violation of the preceding sentence and the principal of, premium if any, and
accrued interest on the Notes  shall not have been paid in full, such
amount shall be deemed to have been paid to such Guarantor for the benefit of,
and held in trust for the benefit of, the Holders, and shall immediately be paid
to the Trustee for the benefit of the Holders to be credited and applied upon
the principal of, premium, if any, and accrued interest on the
Notes.  Each Guarantor acknowledges that it will receive direct and
indirect benefits from the issuance of the Notes pursuant to this Indenture and
that the waiver set forth in this paragraph is knowingly made in contemplation
of such benefits. The Guarantors shall have the right to seek contribution from
any non-paying Guarantor so long as the exercise of such right does not impair
the rights of the Holders under the Guarantee.

       

      The
Guarantee set forth in this Section 11.01 shall not be valid or become
obligatory for any purpose with respect to a Note until the certificate of
authentication on such Note shall have been signed by or on behalf of the
Trustee.

       

      Notwithstanding
anything contained in this Article Eleven to the contrary, the parties
acknowledge that FelCor Holdings Trust has been formed under the laws of the
Commonwealth of Massachusetts pursuant to a Declaration of Trust dated as of
July 31, 2002, and in accordance with the Declaration of Trust, none of the
shareholders, trustees or officers of FelCor Holdings Trust shall be personally
liable for such Guarantor’s obligations under this Article Eleven, and the
Trustee shall look solely to the trust estate comprising FelCor Holdings Trust
for the payment of any claim under such obligations or for the performance of
such obligations.

       

      SECTION
11.02.       Obligations of Guarantor
Unconditional.  

       

      Nothing
contained in this Article Eleven or elsewhere in this Indenture or in the Notes
is intended to or shall impair, as among each Guarantor and the Holders of the
Notes, the obligation of each Guarantor, which is absolute and unconditional,
upon failure by FelCor LP, to pay to the Holders of the Notes and principal
of, premium, if any, and interest on the Notes as and when the same shall become
due and payable in accordance with their terms, or is intended to or shall
affect the relative rights of the Holders of the Notes and creditors of each
Guarantor, nor shall anything herein or therein prevent the Holder of any Note
or the Trustee on their behalf from exercising all remedies otherwise permitted
by applicable law upon default under this Indenture.

       

      Without
limiting the generality of the foregoing, nothing contained in this Article
Eleven will restrict the right of the Trustee or the Holders of the Notes to
take any action to declare the Guarantees to be due and payable prior to the
stated maturity of the Notes pursuant to Section 6.02 or to pursue any rights or
remedies hereunder.

       

      SECTION
11.03.      Notice to Trustee.  

       

      Each
Guarantor shall give prompt written notice to the Trustee of any fact known to
such Guarantor which would prohibit the making of any payment to or by the
Trustee in respect of the Guarantee pursuant to the provisions of this Article
Eleven.

       

      SECTION
11.04.       This Article Not To Prevent Events
of Default.  

       

      The
failure to make a payment on account of principal, of premium, if any, or
interest on the Notes by reason of any provision of this Article Eleven will not
be construed as preventing the occurrence of an Event of Default.

       

      
         

        
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      SECTION
11.05.      Trustee’s Compensation Not
Prejudiced.  

       

      Nothing
in this Article Eleven will apply to amounts due to the Trustee pursuant to
other sections in this Indenture.

       

      SECTION
11.06.    Payments May Be Paid Prior to
Dissolution.  

       

      Nothing
contained in this Article Eleven or elsewhere in this Indenture shall prevent
(i) a Guarantor from making payments of principal of, premium if any, and
interest on the Notes, or from depositing with the Trustee any monies for such
payments or (ii) the application by the Trustee of any monies deposited with it
for the purpose of making such payments of principal of, premium, if any, and
interest on the Notes to the Holders entitled thereto, each Guarantor shall give
prompt written notice to the Trustee of any dissolution, winding up, liquidation
or reorganization of such Guarantor.

       

      SECTION
11.07.     Release of
Guarantee.  

       

      Any Note
Guarantee provided pursuant to this Article Eleven or Section 4.17 by a
Subsidiary Guarantor shall be automatically and unconditionally released and
discharged upon (i) the sale or other disposition of all of the Capital Stock of
such Subsidiary Guarantor or all or substantially all of the assets of such
Subsidiary Guarantor, if, in each case, as a result of such sale or disposition,
such Subsidiary Guarantor ceases to be a subsidiary of FelCor LP; provided such sale or other
disposition is in compliance with the terms of this Indenture, (ii) the
consolidation or merger of any such Subsidiary Guarantor with any person other
than FelCor LP or a Subsidiary of FelCor LP, if, as a result of such
consolidation or merger, such Subsidiary Guarantor ceases to be a subsidiary of
FelCor LP; provided such consolidation
or merger is in compliance with this Indenture, (iii) a defeasance under Section
8.02 or 8.03 of this Indenture, (iv) the designation of a Restricted Subsidiary
that is a Subsidiary Guarantor as an Unrestricted Subsidiary; provided such designation is
in compliance with the terms of this Indenture, (v) the unconditional and
complete release of each Subsidiary Guarantor in accordance with Article Nine of
this Indenture, or (vi) the unconditional and complete release of a Subsidiary
Guarantor from its Guarantee provided pursuant to Section 4.17 of all Guaranteed
Indebtedness, except a discharge or release by or as a result of payment under
such Note Guarantee.

       

      ARTICLE
TWELVE

       

      SECURITY

       

      SECTION
12.01.        Security.  

       

      From and
after the date of the Assumption, the due and punctual payment of FelCor LP’s
obligations under this Indenture and the Notes, when and as the same shall be
due and payable, whether on an interest payment date, at maturity, by
acceleration, call for redemption or otherwise, and performance of all other
obligations of FelCor LP and the Guarantors, to the Holders or the Trustee
under this Indenture (including, without limitation, the Note Guarantees) and in
respect of the Notes or the Collateral Documents, according to the terms hereof
or thereof, shall be secured by the Collateral Documents.  The
Collateral Documents will create a valid and perfected first priority security
interest on the property constituting the Collateral as set forth in the
Collateral Documents, subject to Liens permitted thereby.

       

      The
Collateral shall secure FelCor LP’s obligations and performance of all
other obligations of FelCor LP and the Guarantors, up to the amount
outstanding from time to time under the Notes and any amounts owed to the
Trustee and the Collateral Agent.

       

      SECTION
12.02.          [Reserved].

       

      SECTION
12.03.          Further
Assurances.           

       

      From and after the
Assumption, FelCor LP and FelCor shall, and shall cause each of its Restricted
Subsidiaries to, use its commercially reasonable efforts to do or cause
to be done all things reasonably necessary to preserve, renew and keep in full
force and effect their existing rights, licenses, permits and insurances that
are material to any Restricted Hotel to the extent consistent with their
ordinary course ownership and asset management of a hotel and comply in all
material respects with all of their material agreements applicable to all
Restricted Hotels. FelCor LP and its Restricted Subsidiaries will promptly
notify the Trustee and the Collateral Agent of the giving or receipt of any
notice of any material default under any material agreement applicable to the
Restricted Hotels. FelCor, FelCor LP and the Restricted Subsidiaries will do or
cause to be done all acts and things which may be reasonably required, or which
the Collateral Agent may reasonably request, to assure and confirm the
Collateral Agent holds enforceable and perfected first priority liens (subject
to Liens permitted under this Indenture and the Collateral Documents as
applicable) upon all real and personal property (including After-Acquired
Property relating to the Restricted Hotels) that is
subject to any Lien securing the Notes to the extent required by the Collateral
Documents.

      

      
        
           

        

        
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        SECTION
12.04.       Recording and
Opinions.  

      

       

      FelCor LP
and the Pledgors will cause, at their own expense, the Collateral Documents,
this Indenture and all amendments or supplements hereto to be registered,
recorded and filed or re-recorded, re-filed and renewed in such manner and in
such place or places, if any, as may be required by law in order fully to
preserve and protect the Liens created by the Collateral Documents on all parts
of the Collateral and to effectuate and preserve the security of the Holders and
all rights of the Trustee and the Collateral Agent.

       

      FelCor LP
and the Pledgors shall furnish to the Trustee and Collateral Agent, promptly
after the execution and delivery of the Collateral Documents, an Opinion of
Counsel either (i) stating that, in the opinion of such counsel, the Collateral
Documents have been properly recorded, registered and filed to the extent
necessary to make effective the security interest intended to be created by the
Collateral Documents, and reciting the details of such action or referring to
prior opinions of counsel in which such details are given, and stating that as
to the Collateral Documents such recording, registering and filing are the only
recordings, registrations and filings necessary to give notice thereof and that
no re-recordings, re-registrations or re-filings are necessary to maintain such
notice, and further stating that all financing statements, continuation
statements and other instruments of further assurance have been executed and
filed that are necessary fully to preserve and protect the rights of the
Collateral Agent on behalf of the Holders and the Trustee hereunder and under
the Collateral Documents, or (ii) stating that, in the opinion of such counsel,
no such action is necessary to make such security interest
effective.  To the extent applicable, FelCor LP and the Pledgors
shall comply with Trust Indenture Act § 314(b) within three months following
each anniversary date of the Closing Date.

       

      SECTION
12.05.    Release and Disposition of
Collateral

       

      (a)           The
parties hereto agree and acknowledge that the Collateral may be released by the
Collateral Agent at any time in accordance with the terms of the Collateral
Documents, and the Collateral so released shall automatically be released as
security for this Indenture and the Notes without any action on the part of the
Trustee or the Holders, except as may be provided in the Collateral
Documents.  In addition, the Collateral shall be automatically
released and terminated in whole upon (i) payment of all principal, premium, if
any and interest under this Indenture and the Notes, (ii) a redemption of all of
the Notes effected by FelCor LP in accordance with Article Three, (iii)
legal defeasance or actual defeasance effected by FelCor LP in accordance
with Section 8.02 or Section 8.03, (iv) upon a satisfaction and discharge
effected by FelCor LP in accordance with Section 8.01; or (v) by consent of
Holders of not less than 66-2/3% of the aggregate principal amount of the Notes
then outstanding. The Liens on the Collateral will terminate and be discharged
in part, as to any property that (A) is sold, transferred or otherwise disposed
of by FelCor, FelCor LP or one of its Restricted Subsidiaries in a transaction
not prohibited by this Indenture, at the time of such sale, transfer or
disposition, to the extent of the interest sold, transferred or disposed of or
(B) is owned or at any time acquired by a Guarantor that has been released from
its Note Guarantee (and any guarantee of other Note Obligations), concurrently
with the release of such Note Guarantee (and any guarantee of other Note
Obligations);

       

      (b)           The
release of all or any portion of the Collateral from the Lien under the
Collateral Documents pursuant to the terms hereof and of the Collateral
Documents will not be deemed to impair the security interest under this
Indenture in contravention of the provisions hereof.  To the extent
applicable, FelCor LP and the Pledgors shall cause Trust Indenture Act
Section 314(d) relating to the release of property from the Lien under the
Collateral Documents to be complied with.  Any certificate or opinion
required by Trust Indenture Act Section 314(d) may be made by an Officer of
FelCor, in its capacity as general partner of FelCor LP, except in cases in
which Trust Indenture Act Section 314(d) requires that such certificate or
opinion be made by an independent Person.  It is expressly understood
that this Section 12.05(b) relates only to obligations under the TIA and shall
not restrict or otherwise affect the Pledgors’ or FelCor LP’s rights or
abilities to obtain a release of the Collateral pursuant to the terms of the
Collateral Documents or as otherwise permitted hereunder.

       

      (c)           To
the extent applicable, FelCor LP shall cause TIA Section 313(b), relating to
reports, and TIA Section 314(d), relating to the release of property or
securities or relating to the substitution therefore of any property or
securities to be subjected to the Lien created by the Collateral Documents, to
be complied with. Any certificate or opinion required by TIA Section 314(d) may
be made by an Officer of FelCor LP except in cases where TIA

       

      
         

        
          78

          
            

          

        

        
           

        

      

      

       

      Section
314(d) requires that such certificate or opinion be made by an independent
Person, which Person shall be an independent engineer, appraiser or other expert
reasonably satisfactory to the Trustee. Notwithstanding anything to the contrary
in this Section 12.05, FelCor LP shall not be required to comply with all or any
portion of TIA Section 314(d) if it determines, in good faith based on advice of
counsel, that under the terms of TIA Section 314(d) and/or any interpretation or
guidance as to the meaning thereof of the Commission and its staff, including
“no action” letters or exemptive orders, all or any portion of TIA Section
314(d) is inapplicable to released Collateral.

       

      SECTION
12.06.        Disposition of Collateral Without
Release.  

       

      Notwithstanding
Section 12.05 hereof relating to releases of Collateral, but subject to and in
accordance with the provisions of the Collateral Documents and this Indenture,
so long as the Collateral Agent or the Trustee have not exercised their rights
with respect to the Collateral upon the occurrence and during the continuance of
an Event of Default, FelCor LP and the Guarantors will have the right to remain
in possession and retain exclusive control of the Collateral, to operate the
Collateral, to alter and repair the Collateral and to collect, invest and
dispose of any income therefrom.

       

      SECTION
12.07.           Enforcement of Claims Against
Collateral.  

       

      Notwithstanding
any other rights of the Secured Parties to enforce claims against the Collateral
pursuant to the Collateral Documents, if the Notes become due and payable prior
to their final Stated Maturity for any reason or are not paid in full at the
final Stated Maturity and no payment has been made following a demand on
FelCor LP, the Collateral Agent has the right to foreclose or otherwise
realize upon the relevant Collateral in accordance with the terms of the
Collateral Documents.  The proceeds received by the Collateral Agent
upon a foreclosure or realization will be applied by the Collateral Agent in
accordance with the Pledge Agreement and the other Collateral
Documents.

       

      SECTION
12.08.        Authorization of Actions To Be Taken
by the Collateral Agent.  

       

      (a)
Subject to the provisions of the Collateral Documents, the Collateral Agent
shall have power to institute and to maintain such suits and proceedings as it
may deem expedient to prevent any impairment of the Collateral by any acts which
may be unlawful or in violation of the Collateral Documents or this Indenture,
and such suits and proceedings as the Collateral Agent may deem expedient to
preserve or protect its interests and the interests of the Holders in the
Collateral (including power to institute and maintain suits or proceedings to
restrain the enforcement of or compliance with any legislative or governmental
enactment, rule, or order that may be unconstitutional or otherwise invalid if
the enforcement of, or compliance with, such enactment, rule or order would
impair the security hereunder or be prejudicial to the interest of the Holders
or the Collateral Agent).  Notwithstanding anything herein or in any
of the Collateral Documents to the contrary, subject to Article Seven hereof,
the Collateral Agent assumes no responsibility for the validity, perfection,
priority or enforceability of the security interest in any of the Collateral and
shall have no obligation to take any action to procure or maintain such
validity, perfection, priority or enforceability.

       

      (b)
Notwithstanding the foregoing, FelCor LP and the Guarantors may, among other
things, without any release or consent by the Trustee or the Collateral Agent,
use and dispose of the Collateral in any lawful manner not inconsistent with the
provisions of this Indenture or any of the Collateral Documents, including,
without limitation, (i)(x) selling or otherwise disposing of inventory in the
ordinary course of business and (y) to dispose of obsolete
equipment or equipment that is damaged, worn out or otherwise no longer useful
in the business of the Grantors as long as such equipment is replaced with
equipment of at least equal functionality and such replacement equipment becomes
Collateral pursuant to the terms of the Collateral Documents; (ii) abandoning,
terminating, canceling, releasing or making alterations in or substitutions of
any leases or contracts subject to the Lien of this Indenture of any of the
Collateral Documents; (iii) altering, repairing, replacing, changing the
location or position of and adding to its structures, machinery, systems,
equipment, fixtures and appurtenances; (iv) granting a license of any
intellectual property; (v) making cash payments (including for the scheduled
repayment of Indebtedness) from cash that is at any time part of the Collateral
in the ordinary course of business that are not otherwise prohibited by this
Indenture and the Collateral Documents; and (vi) abandoning any intellectual
property which is no longer used or useful in FelCor LP’s or any Guarantor’s
business.

       

      SECTION
12.09.        General Partner Interest in
FelCor LP.  

       

      At any
time upon or following the foreclosure by the Collateral Agent on the
Collateral, the Collateral Agent shall have the right to require FelCor to
transfer its general partner interest in FelCor LP to the Collateral Agent
for an aggregate purchase price of $1.00.  Such transfer right shall
be the exclusive right of the Collateral Agent.  Additionally, so long
as any Notes are outstanding under this Indenture, FelCor shall not directly or
indirectly create, incur, assume or pledge, or suffer to exist any Lien on, its
general partner interest in FelCor LP.

       

      
         

        
          79

        

        
           

        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      SECTION
12.10.      Appointment of Collateral
Agent.  

       

      The
Trustee and each Holder hereby appoints U.S. Bank National Association (and any
of its successors and assigns in such capacity) as a collateral agent (together
with such successors and assigns the “Collateral Agent”) to act
under the Collateral Documents and for creation and perfection of the security
interest in the Collateral for the benefit of the Trustee and the
Holders.  The Trustee on its own behalf and on behalf of the Holders
hereby authorizes the Collateral Agent to enter into the Pledge Agreement and
all other Collateral Documents on behalf and for the benefit of the Trustee and
the Holders.

       

      SECTION
12.11.       Limitation on
Liability.  

       

      FelCor
Holdings Trust has been formed under the laws of the Commonwealth of
Massachusetts pursuant to a Declaration of Trust dated as of July 31,
2002.  In accordance with the Declaration of Trust, none of the
shareholders, trustees or officers of FelCor Holdings Trust shall be personally
liable for any of FelCor Holdings Trust’s obligations arising under this
Indenture, the Notes, the Exchange Notes or the Collateral Documents, and the
Trustee and the Holders shall look solely to the trust estate comprising FelCor
Holdings Trust for the payment of any claim under such obligations or for the
performance of such obligations.

       

      SECTION
12.12.     Equal and Ratable Lien
Sharing  by Holders of Notes and Holders of Additional Pari Passu
Indebtedness; Intercreditor Agreement.

       

      (a)           Notwithstanding
(1) anything to the contrary contained in this Indenture or the Collateral
Documents, (2) the time of incurrence of any Additional Pari Passu Indebtedness,
(3) the order or method of attachment or perfection of any Liens securing any
Additional Pari Passu Indebtedness, (4) the time or order of filing or recording
of financing statements, mortgages or other documents filed or recorded to
perfect any Lien upon any Collateral, (5) the time of taking possession or
control over any Collateral or (6) the rules for determining priority under any
law governing relative priorities of Liens:

       

      (i)           all
Liens at any time granted by FelCor LP, FelCor or any Restricted Subsidiary in
the Collateral to secure the Notes shall secure, equally and ratably, all
liabilities of FelCor LP, FelCor or any Restricted Subsidiary under or in
respect of any Additional Pari Passu Indebtedness;

       

      (ii)           all
proceeds of all Liens at any time granted by FelCor LP, FelCor or any Restricted
Subsidiary in the Collateral to secure the Notes shall be allocated and
distributed equally and ratably on account of all liabilities of FelCor LP,
FelCor or any Restricted Subsidiary under or in respect of any Additional Pari
Passu Indebtedness as described in the security documents that shall amend the
Pledge Agreement and the other Collateral Documents to join the holders of such
Additional Pari Passu Indebtedness; and

       

      (iii)           the
provisions of the Pledge Agreement and the other Collateral Documents will be
subject to the provisions of an future intercreditor agreement on terms
reasonably satisfactory to the Collateral Agent and which shall provide that the
Collateral Agent shall maintain all possessory Collateral and possessory
Additional Pari Passu Collateral and shall control the disposition of any
portion of the Collateral or the Additional Pari Passu Collateral, as
applicable.

       

      
        
           
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      SIGNATURES

       

      IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed, all as of the date first written above.

       

      
        	 
      	 
      	
                FELCOR
      ESCROW HOLDINGS, L.L.C.

              	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                By:

              	 
      /s/Jonathan H. Yellen	 
      
	 
      	 
      	 
      	
                Name:

              	Jonathan
      H. Yellen	 
      
	 
      	 
      	 
      	
                Title:
      

              	
                Executive
      Vice President 

                General Counsel and Secretary

              	 
      

      

      

      

      

      
        
          
            S-1

          

           

        

        
           

          
            

          

        

        
           

        

      

       

      

       

      
        	 
      	 
      	
                U.S.
      BANK NATIONAL ASSOCIATON, as Trustee and Collateral Agent

              	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                By:

              	 
      /s/Richard Prokosch	 
      
	 
      	 
      	 
      	
                Name:

              	 
      Richard Prokosch	 
      
	 
      	 
      	 
      	
                Title:

              	 
      Vice President	 
      

      

       

      

       

       

       

      

       

       

      

       

      
        
          
            S-2

          

           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
A

       

      [FACE OF
NOTE]

       

      

       

      10%
Senior Secured Note due 2014

       

      CUSIP No.
___________

       

      No. $__________

       

      FelCor
Escrow Holdings, L.L.C., a Delaware limited liability company (“FelCor LLC,” which term
includes any successor under the Indenture hereinafter referred to), for value
received, promises to pay to CEDE & Co., or its registered assigns, the
principal sum of _____________ ($______________), [or such greater or lesser
principal amount as may from time to time be reflected on the books and records
of the Registrar (but in no event may such amount exceed the aggregate principal
amount of Notes authenticated pursuant to Section 2.02 of the Indenture referred
to below and then outstanding pursuant to Section 2.08 of the Indenture)]1 on October 1, 2014.

       

      Interest
Payment Dates:  April 1 and October 1, commencing April 1,
2010.

       

      Regular
Record Dates:  March 15 and September 15.

       

      Reference
is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.

       

      

        

      

       

        
          	
                  1

                	
                  Use
      if Global Note

                

        

         

      

      
        
          
            A-1

          

           

        

        
           

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, FelCor LLC has caused this Note to be signed manually or by
facsimile by its duly authorized officers.

       

       

      FELCOR
ESCROW HOLDINGS, L.L.C.

       

       

      
        	
                 
      

              	
                By:

              	 	 

      

       

       

      
        	
                 
      

              	
                Name:

              

      

       

       

      
        	
                 
      

              	
                Title:

              

      

       

       

      
        	
                 
      

              	
                By:

              	 	 

      

       

       

      
        	
                 
      

              	
                Name:

              

      

       

       

      
        	
                 
      

              	
                Title:

              

      

       

      
        
          
            A-2

          

           

        

        
           

          
            

          

        

        
           

        

      

      (Trustee’s
Certificate of Authentication)

       

      This is
one of the 10% Senior Secured Notes due 2014 described in the within-mentioned
Indenture.

       

      Date:

       

       

      U.S. BANK
NATIONAL ASSOCIATION, as Trustee

       

       

      
        	
                 
      

              	
                By:

              	 	 

      

       

       

      
        	
                 
      

              	
                Authorized
      Signatory

              

      

       

      
        
          
            A-3

          

           

        

        
           

          
            

          

        

        
           

        

      

      [REVERSE
SIDE OF NOTE]

       

      

       

      FELCOR
ESCROW HOLDINGS, L.L.C.

       

      

       

      10%
Senior Secured Note due 2014

       

      1.           Principal and
Interest.

       

      FelCor
LLC will pay the principal of this Note on October 1, 2014.

       

      Interest
on the Notes will be payable semi-annually in cash on each April 1 and October 1
commencing on April 1, 2010 (each, an “Interest Payment Date”), to
the Holders of record of the Notes at the close of business on March 15 and
September 15 immediately preceding the applicable Interest Payment
Date.

       

      If an
exchange offer registered under the Securities Act is not consummated and a
shelf registration statement under the Securities Act with respect to resales of
the Notes is not declared effective by the Commission on or before March 30,
2010 in accordance with the terms of the Registration Rights Agreement, interest
due on the Notes will accrue at an annual rate of 0.5% (“Additional Interest”) plus
the interest rate specified on the face hereof until the exchange offer is
consummated or the shelf registration statement is declared
effective.  The Holder of this Note is entitled to the benefits of
such Registration Rights Agreement.

       

      Interest
on the Notes will accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from the Closing Date.

       

      This Note
will bear interest at a rate of 10% per annum.

       

      FelCor
LLC shall pay interest on overdue principal and premium, if any, and interest on
overdue installments of interest, to the extent lawful, at a rate per annum that
is 2% in excess of the rate otherwise payable.

       

      2.           Method of
Payment.

       

      FelCor
LLC will pay interest (except defaulted interest) on the principal amount of the
Notes as provided above on each April 1 and October 1 to the persons who are
Holders (as reflected in the Note Register at the close of business on such
March 15 and September 15 immediately preceding the Interest Payment Date), in
each case, even if the Note is canceled on registration of transfer or
registration of exchange after such record date; provided that, with respect
to the payment of principal, FelCor LLC will make payment to the Holder that
surrenders this Note to a Paying Agent on or after October 1, 2014.

       

      FelCor
LLC will pay principal, premium, if any, and as provided above, interest in
money of the United States that at the time of payment is legal tender for
payment of public and private debts at the office or agency of the Company
maintained for such purpose within the City and State of New York, or, at the
option of FelCor LLC and payment of interest may be made by check mailed to the
Holders at their addresses set forth in the Note Register, and provided that
payment by wire transfer of immediately available funds will be required with
respect to principal of and interest and premium, if any, on all Global
Notes.  If a payment date is a date other than a Business Day at a
place of payment, payment may be made at that place on the next succeeding day
that is a Business Day and no interest shall accrue for the intervening
period.

       

      3.           Paying Agent and
Registrar.

       

      Initially,
the Trustee will act as authenticating agent, Paying Agent and
Registrar.  FelCor LLC may change any authenticating agent, Paying
Agent or Registrar without notice.  FelCor LLC, any Subsidiary or any
Affiliate of any of them may act as Paying Agent, Registrar or
co-Registrar.

       

      
        
          
            A-4

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      4.           Indenture;
Limitations.

       

      FelCor
LLC issued the Notes under an Indenture dated as of October 1, 2009 (the “Indenture”), between FelCor
LLC and U.S. Bank National Association as Trustee (the “Trustee”) and as Collateral
Agent (the “Collateral
Agent”).  Capitalized terms herein are used as defined in the
Indenture unless otherwise indicated.  The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act.  The Notes are subject to all such terms,
and Holders are referred to the Indenture and the Trust Indenture Act for a
statement of all such terms.  To the extent permitted by applicable
law, in the event of any inconsistency between the terms of this Note and the
terms of the Indenture, the terms of the Indenture shall control.

       

      The Notes
are general secured obligations of FelCor LLC.

       

      5.           Redemption.

       

      Except as
provided below, FelCor LLC may not redeem any of the Notes prior to October 1,
2014.

       

      At any
time and from time to time prior to October 1, 2014, FelCor LLC may, at its
option, redeem all or a portion of the Notes at a redemption price equal to 100%
of the principal amount thereof plus the Applicable Premium with respect to the
notes plus accrued and unpaid interest and Additional Interest, if any, thereon
to the redemption date. Notice of such redemption must be mailed to holders of
the notes called for redemption not less than 15 nor more than 60 days prior to
the redemption date.

       

      Notwithstanding
the foregoing, at any time, or from time to time, on or prior to October 1,
2012, FelCor LLC may, at its option, use the net cash proceeds of one or more
Equity Offerings to redeem up to 35% of the principal amount of the Notes at a
Redemption Price of 110% of the principal amount thereof, together with accrued
and unpaid interest and Additional Interest, if any, thereon, if any, to the
Redemption Date; provided that

       

                      (i)at least 65% of the principal amount
of the Notes issued under this Indenture remains out-standing immediately after
such redemption; and

       

                      (ii)FelCor LLC makes such redemption not
more than 90 days after the consummation of any such Equity
Offering.

       

      Notice of
any optional redemption will be mailed at least 15 but not more than 60 days
before the Redemption Date to each Holder of Notes to be redeemed at its last
address as it appears in the Note Register.  Notes in original
principal amount greater than $1,000 may be redeemed in part.  On and
after the Redemption Date, interest ceases to accrue on Notes or portions
thereof called for redemption, unless FelCor LLC defaults in the payment of the
amount due upon redemption.

       

      In the
event that the Assumption is not consummated for any reason on or prior to the
Outside Date, on the Mandatory Redemption Date, FelCor LLC will redeem all the
Notes (the “Mandatory
Redemption”), at a redemption price equal to 100% of gross proceeds
resulting from the sale of the Notes, plus accreted original issue discount,
plus accrued and unpaid interest to the Mandatory Redemption Date (the “Mandatory Redemption
Price”).  The “Mandatory Redemption Date”
means the earlier of (a) December 2, 2009 (the “Outside Date”) and (b) the
date pursuant to which FelCor LLC earlier redeems the Notes in accordance with
the terms of the Escrow Agreement.  Upon the Mandatory Redemption
Date, the Escrow Agent will deposit with the Trustee money sufficient to pay the
Mandatory Redemption Price (any shortfall to be provided by FelCor LLC) in
accordance with the terms of the Escrow Agreement.

       

      6.           Repurchase upon Change in
Control.

       

      Upon the
occurrence of any Change of Control, each Holder shall have the right to require
the repurchase of its Notes by FelCor LLC in cash pursuant to the offer
described in the Indenture at a purchase price equal to 101% of the principal
amount thereof plus accrued and unpaid interest, if any, to the date of purchase
(the “Change of Control
Payment”).

       

      
        
          
            A-5

          

           

        

        
           

          
            

          

        

        
           

        

      

      

       

      A notice
of such Change of Control will be mailed within 30 days after any Change of
Control occurs to each Holder at his last address as it appears in the Note
Register.  Notes in original denominations larger than $1,000 may be
sold to FelCor LLC in part.  On and after the Change of Control
Payment Date, interest ceases to accrue on Notes or portions of Notes
surrendered for purchase by FelCor LLC, unless FelCor LLC defaults in the
payment of the Change of Control Payment.

       

      7.           Denominations; Transfer;
Exchange.

       

      The Notes
are in registered form without coupons in denominations of $1,000 of principal
amount at maturity and multiples of $1,000 in excess thereof.  A
Holder may register the transfer or exchange of Notes in accordance with the
Indenture.  The Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture.  The Registrar
need not register the transfer or exchange of any Notes selected for
redemption.  Also, it need not register the transfer or exchange of
any Notes for a period of 15 days before a selection of Notes to be redeemed is
made.

       

      8.           Persons Deemed
Owners.

       

      A Holder
shall be treated as the owner of a Note for all purposes.

       

      9.           Unclaimed
Money.

       

      If money
for the payment of principal, premium, if any, or interest remains unclaimed for
two years, the Trustee and the Paying Agent will pay the money back to FelCor
LLC at its request.  After that, Holders entitled to the money must
look to FelCor LLC for payment, unless an abandoned property law designates
another Person, and all liability of the Trustee and such Paying Agent with
respect to such money shall cease.

       

      10.           Discharge Prior to
Redemption or Maturity.

       

      If FelCor
LLC deposits with the Trustee money or U.S. Government Obligations sufficient to
pay the then outstanding principal of, premium, if any, and accrued interest on
the Notes (a) to redemption or maturity, FelCor LLC will be discharged from the
Indenture and the Notes, except in certain circumstances for certain sections
thereof, and (b) to the Stated Maturity, FelCor LLC will be discharged from
certain covenants set forth in the Indenture.

       

      11.           Amendment; Supplement;
Waiver.

       

      Subject
to certain exceptions, the Indenture, the Notes or the Collateral Documents may
be amended or supplemented with the consent of the Holders of at least a
majority in principal amount of the Notes then out-standing, and any existing
default or compliance with any provision may be waived with the consent of the
Holders of at least a majority in principal amount of the Notes then
outstanding.  Without notice to or the consent of any Holder, the
parties thereto may amend or supplement the Indenture or the Notes to, among
other things, cure any ambiguity, defect or inconsistency and make any change
that does not materially and adversely affect the rights of any
Holder.

       

      12.           Restrictive
Covenants.

       

      The
Indenture imposes certain limitations on the ability of FelCor LLC and its
respective Restricted Subsidiaries, among other things, to Incur additional
Indebtedness, make Restricted Payments, use the proceeds from Collateral Asset
Sales and Non-Collateral Assets Sales and Events of Loss, engage in transactions
with Affiliates or merge, consolidate or transfer substantially all of their
assets.  Within 45 days after the end of each fiscal quarter (90 days
after the end of the last fiscal quarter of each year), FelCor LLC must report
to the Trustee on compliance with such limitations.

       

      13.           Successor
Persons.

       

      When a
successor person or other entity assumes all the obligations of its predecessor
under the Notes and the Indenture, the predecessor person will be released from
those obligations.

       

      
        
          
            A-6

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      14.           Defaults and
Remedies.

       

      The
following events constitute “Events of Default” under the
Indenture:

       

      (a)           default
in the payment of principal of (or premium, if any, on) any Note when the same
becomes due and payable at maturity, upon acceleration, redemption or
otherwise;

       

      (b)           default
in the payment of interest on any Note when the same becomes due and payable,
and such default continues for a period of 30 days;

       

      (c)           default
in the performance or breach of the provisions of the Indenture applicable to
mergers, consolidations and transfers of all or substantially all of the assets
of FelCor LLC or the failure by FelCor LLC to make or consummate an Offer to
Purchase in accordance with Section 4.10 or Section 4.11 or make or consummate a
Change of Control Offer in accordance with Section 4.13;

       

      (d)           FelCor
LLC defaults in the performance of or breaches any other covenant or agreement
of FelCor LLC in the Indenture or under the Notes (other than a default
specified in clause (a), (b) or (c) above) and such default or breach continues
for a period of 60 consecutive days after written notice by the Trustee or the
Holders of 25% or more in aggregate principal amount of the Notes;

       

      (e)           there
occurs with respect to any issue or issues of Indebtedness of FelCor LLC or any
Significant Subsidiary having an outstanding principal amount of $20 million or
more in the aggregate for all such issues of all such Persons, whether such
Indebtedness now exists or shall hereafter be created, (i) an event of default
that has caused the holder thereof to declare such Indebtedness to be due and
payable prior to its Stated Maturity and such Indebtedness has not been
discharged in full or such acceleration has not been rescinded or annulled
within 30 days of such acceleration and/or (ii) the failure to make a principal
payment at the final (but not any interim) fixed maturity and such defaulted
payment shall not have been made, waived or extended within 30 days of such
payment default;

       

      (f)           any
final judgment or order (not covered by insurance) for the payment of money in
excess of $20 million in the aggregate for all such final judgments or orders
against all such Persons (treating any deductibles, self-insurance or retention
as not covered by insurance) (i) shall be rendered against FelCor LLC or any
Significant Subsidiary and shall not be paid or discharged, and (ii) there shall
be any period of 60 consecutive days following entry of the final judgment or
order that causes the aggregate amount for all such final judgments or orders
outstanding and not paid or discharged against all such Persons to exceed $20
million during which a stay of enforcement of such final judgment or order, by
reason of a pending appeal or otherwise, shall not be in effect;

       

      (g)           a
court having jurisdiction in the premises enters a decree or order for (i)
relief in respect of FelCor LLC or any Significant Subsidiary in an involuntary
case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, (ii) appointment of a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of FelCor LLC or any
Significant Subsidiary or for all or substantially all of the property and
assets of FelCor LLC or any Significant Subsidiary or (iii) the winding up or
liquidation of the affairs of FelCor LLC or any Significant Subsidiary and, in
each case, such decree or order shall remain unstayed and in effect for a period
of 60 consecutive days;

       

      (h)           FelCor
LLC or any Significant Subsidiary (i) commences a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or consents to the entry of an order for relief in an involuntary case
under such law, (ii) consents to the appointment of or taking possession by a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of FelCor LLC or Significant Subsidiary or for all or substantially all
of the property and assets of FelCor LLC or any Significant Subsidiary or (iii)
effects any general assignment for the benefit of its creditors;

       

      (i)           any
Note Guarantee ceases to be in full force and effect (other than in accordance
with the terms of such Note Guarantee and the Indenture) or any Guarantor
notifies the Trustee in writing that it denies or disaffirms its obligations
under its Note Guarantee; or

       

      
        
          
            A-7

          

           

        

        
           

          
            

          

        

        
           

        

      

      

       

      (j)           (a)
there shall be a default in the performance, or breach, of any covenant or
agreement of  FelCor LLC, in any material respect, under any
Collateral Document or any management or franchise agreement related thereto and
such default or breach shall continue for a period of 45 days after written
notice has been given, by certified mail, (1) to FelCor LLC by the Trustee or
(2) to FelCor LLC and the Trustee by the holders of at least 25% in aggregate
principal amount of the then out-standing notes or (b) any Collateral Document
shall for any reason cease to be, or any Collateral Document shall for any
reason be asserted in writing by the Issuer or any Guarantor, not to be, in full
force and effect and enforceable in accordance with its terms or ceases to give
the Holders the first priority Liens purported to be created thereby, except to
the extent contemplated by the Indenture and any such Collateral
Document.

       

      If an
Event of Default (other than an Event of Default described in subparagraphs (g)
or (h) above that occurs with respect to FelCor LLC) occurs and is continuing,
the Trustee or the Holders of at least 25% in principal amount of the Notes may
declare all the Notes to be due and payable.  If an Event of Default
described in subparagraphs (g) or (h) above occurs with respect to FelCor LLC,
the Notes automatically become due and payable.  Holders may not
enforce the Indenture or the Notes except as provided in the
Indenture.  The Trustee may require indemnity satisfactory to it
before it enforces the Indenture or the Notes.  Subject to certain
limitations, Holders of at least a majority in principal amount of the Notes
then outstanding may direct the Trustee in its exercise of any trust or
power.

       

      15.           Trustee Dealings with FelCor
LLC.

       

      The
Trustee under the Indenture, in its individual or any other capacity, may make
loans to, accept deposits from and perform services for FelCor LLC or its
Affiliates and may otherwise deal with FelCor LLC or its Affiliates as if it
were not the Trustee.

       

      16.           No Recourse Against
Others.

       

      No
incorporator or any past, present or future limited partner, shareholder, other
equity holder, officer, member, director, employee or controlling person as
such, of FelCor LLC or of any successor Person shall have any liability for any
obligations of FelCor LLC under the Notes or the Indenture or for any claim
based on, in respect of or by reason of, such obligations or their
creation.  Each Holder by accepting a Note waives and releases all
such liability.  The waiver and release are part of the consideration
for the issuance of the Notes.

       

      17.           Authentication.

       

      This Note
shall not be valid until the Trustee or authenticating agent signs the
certificate of authentication on the other side of this Note.

       

      18.           Abbreviations.

       

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

       

      FelCor
LLC will furnish to any Holder upon written request and without charge a copy of
the Indenture.  Requests may be made to FelCor Escrow Holdings,
L.L.C., 545 East John Carpenter Freeway, Suite 1300, Irving, Texas 75062 or at
such other address provided for in the Indenture.

       

      19.           Guarantee.

       

      Repayment
of principal and interest on the Notes is guaranteed on a senior basis by the
Guarantors pursuant to Article Eleven of the Indenture.

       

      
        
          
            A-8

          

           

        

        
           

          
            

          

        

        
           

        

      

      [FORM OF
TRANSFER NOTICE]

       

      FOR VALUE
RECEIVED the undersigned registered Holder hereby sell(s), assign(s) and
transfer(s) unto

       

      Insert
Taxpayer Identification No.

       

      __________________________________________
(Please print or typewrite name and address including zip code of assignee) the
within Note and all rights thereunder, hereby irrevocably constituting _______
___________________________________ and appointing _______________________
attorney to transfer said Note on the books of FelCor LLC with full power of
substitution in the premises.

       

      [THE
FOLLOWING PROVISION TO BE INCLUDED

       

      ON ALL
NOTES OTHER THAN EXCHANGE NOTES,

       

      PERMANENT
OFFSHORE GLOBAL NOTES AND

       

      OFFSHORE
PHYSICAL NOTES]

       

      In
connection with any transfer of this Note occurring prior to the date which is
the earlier of (i) the date the shelf registration statement with respect to
resales of the Notes is declared effective or (ii) two years after the original
issuance of the Notes, the undersigned confirms that without utilizing any
general solicitation or general advertising that:

       

      [Check
One]

       

      
        	
                [      ]

              	
                (a)

              	
                this
      Note is being transferred in compliance with the exemption from
      registration under the Securities Act of 1933, as amended, provided by
      Rule 144A thereunder.

              

      

       

      or

       

      
        	
                [       ]

              	
                (b)

              	
                this
      Note is being transferred other than in accordance with (a) above and
      documents are being furnished which comply with the conditions of transfer
      set forth in this Note and the
Indenture.

              

      

       

      If none
of the foregoing boxes is checked, the Trustee or other Registrar shall not be
obligated to register this Note in the name of any Person other than the Holder
hereof unless and until the conditions to any such transfer of registration set
forth herein and in Section 2.08 of the Indenture shall have been
satisfied.

       

      Date:           

      NOTICE:  The
signature to this assignment must

      correspond
with the name as written upon the face

      of the
within-mentioned instrument in every particular, without alteration or any
change whatsoever.

      
        
          
            A-9

          

           

        

        
           

          
            

          

        

        
           

        

      

      TO BE
COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

       

      The
undersigned represents and warrants that it is purchasing this Note for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act of 1933, as amended,
and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding FelCor LLC as the
undersigned has requested pursuant to Rule 144A or has determined not to request
such information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

       

      Date:           

      NOTICE:  To
be executed by an executive officer

      
        
          
            A-10

          

           

        

        
           

          
            

          

        

        
           

        

      

      OPTION OF
HOLDER TO ELECT PURCHASE

       

      If you
wish to have this Note purchased by FelCor LLC pursuant to Section 4.10, Section
4.11, Section 4.12 or Section 4.13 of the Indenture, check the Box:

       

      If you
wish to have a portion of this Note purchased by FelCor LLC pursuant to Section
4.10, Section 4.11, Section 4.12 or Section 4.13 of the Indenture, state the
amount (in principal amount at
maturity):  $___________________.

       

      Date:  _____________

       

      Your
Signature:  ____________________________________________________________________________

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

       

      Signature
Guarantee:  ________________________________________________________________________

      
        
          
            A-11

          

           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
B

      Form
of Certificate

       

      ___________,
_____

       

      FelCor
Escrow Holdings, L.L.C.

       

      545 East
John Carpenter Freeway

       

      Suite
1300

       

      Irving,
Texas  75062

       

      U.S. Bank
National Association

       

      60
Livingston Avenue

       

      EP-MN-WS3C

       

      St. Paul,
Minnesota  55107-2292

       

      Attention:  Corporate
Trust Department

       

      
        	
                 
      

              	
                Re:

              	
                FelCor
      Escrow Holdings, L.L.C. (“FelCor
      LLC”)

              

      

       

      
        	
                 
      

              	
                10% Senior Secured
      Notes Due 2014 (the “Notes”)

              

      

       

      Dear
Sirs:

       

      This
letter relates to U.S. $____________ principal amount at maturity of Notes
represented by a Note (the “Legended Note”) which bears a
legend outlining restrictions upon transfer of such Legended
Note.  Pursuant to Section 2.01 of the Indenture (the “Indenture”) dated as of
October 1, 2009, relating to the Notes, we hereby certify that we are (or we
will hold such securities on behalf of) a person outside the United States to
whom the Notes could be transferred in accordance with Rule 903 or Rule 904 of
Regulation S promulgated under the U.S. Securities Act of 1933, as
amended.  Accordingly, you are hereby requested to exchange the
legended certificate for an unlegended certificate representing an identical
principal amount at maturity of Notes, all in the manner provided for in the
Indenture.

       

      You are
entitled to rely upon this letter and are irrevocably authorized to produce this
letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered
hereby.  Terms used in this certificate have the meanings set forth in
Regulation S.

       

       

      Very
truly yours,

       

       

      [Name of
Holder]

       

       

      
        	
                 
      

              	
                By:  _________________________________________

              

      

       

       

      
        	
                 
      

              	
                Authorized
      Signature

              

      

       

       

      

       

      
        
          
            B-1

          

           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
C

       

      Form
of Certificate to Be

       

      Delivered
in Connection with

       

      Transfers
to Non-QIB Accredited Investors

       

      _____________,
__

       

      FelCor
Escrow Holdings, L.L.C.

       

      545 East
John Carpenter Freeway

       

      Suite
1300

       

      Irving,
Texas  75062

       

      U.S. Bank
National Association

       

      60
Livingston Avenue

       

      EP-MN-WS3C

       

      St. Paul,
Minnesota  55107-2292

       

      Attention:  Corporate
Trust Department

       

      
        	
                 
      

              	
                Re:

              	
                FelCor
      Escrow Holdings, L.L.C. (“FelCor
      LLC”)

              

      

       

      
        	
                 
      

              	
                10% Senior Secured
      Notes Due 2014 (the “Notes”)

              

      

       

      Dear
Sirs:

       

      In
connection with our proposed purchase of $____________ aggregate principal
amount at maturity of the Notes, we confirm that:

       

      1.           We
understand that any subsequent transfer of the Notes is subject to certain
restrictions and conditions set forth in the Indenture dated as of October 1,
2009, relating to the Notes (the “Indenture”) and the
undersigned agrees to be bound by, and not to resell, pledge or otherwise
transfer the Notes except in compliance with, such restrictions and conditions
and the Securities Act of 1933, as amended (the “Securities
Act”).

       

      2.           We
understand that the offer and sale of the Notes have not been registered under
the Securities Act, and that the Notes may not be offered or sold except as
permitted in the following sentence.  We agree, on our own behalf and
on behalf of any accounts for which we are acting as hereinafter stated, that if
we should sell any Notes, we will do so only (A) to FelCor LP, FelCor or any
subsidiary thereof, (B) in accordance with Rule 144A under the Securities
Act to a “qualified institutional buyer” (as defined therein), (C) to an
institutional “accredited investor” (as defined below) that, prior to such
transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to
you a signed letter substantially in the form of this letter, and, if this
letter relates to a proposed transfer in respect of an aggregate principal
amount of Notes less than $100,000, an opinion of counsel acceptable to FelCor
LP and FelCor that such transfer is in compliance with the Securities Act, (D)
outside the United States in accordance with Rule 904 of Regulation S under the
Securities Act, (E) pursuant to the exemption from registration provided by Rule
144 under the Securities Act (if available), or (F) pursuant to an effective
registration statement under the Securities Act, and we further agree to provide
to any person purchasing any of the Notes from us a notice advising such
purchaser that resales of the Notes are restricted as stated
herein.

       

      3.           We
understand that, on any proposed resale of any Notes, we will
be  required to furnish to you such certifications, legal opinions and
other information as you may reasonably require to confirm that the proposed
sale complies with the foregoing restrictions.  We further understand
that the Notes purchased by us will bear a legend to the foregoing
effect.

       

      
        
          
            C-1

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      4.           We
are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2),
(3) or (7) of Regulation D under the Securities Act) and have such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of our investment in the Notes, and we and any accounts for
which we are acting are each able to bear the economic risk of our or its
investment.

       

      5.           We
are acquiring the Notes purchased by us for our own account or for one or more
accounts (each of which is an institutional “accredited investor”) as to each of
which we exercise sole investment discretion.

       

      You are
entitled to rely upon this letter and are irrevocably authorized to produce this
letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered
hereby.

       

       

      Very
truly yours,

       

       

      [Name of
Transferee]

       

       

      
        	
                 
      

              	
                By:  _________________________________________

              

      

       

       

      
        	
                 
      

              	
                Authorized
      Signature

              

      

       

      
        
          
            C-2

          

           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
D

       

      Form
of Certificate To Be Delivered

       

      in
Connection with Transfers

       

      Pursuant
to Regulation S

       

      ___________,
____

       

      FelCor
Escrow Holdings, L.L.C.

       

      545 East
John Carpenter Freeway

       

      Suite
1300

       

      Irving,
Texas  75062

       

      U.S. Bank
National Association

       

      60
Livingston Avenue

       

      EP-MN-WS3C

       

      St. Paul,
Minnesota  55107-2292

       

      Attention:  Corporate
Trust Department

       

      
        	
                 
      

              	
                Re:

              	
                FelCor
      Escrow Holdings, L.L.C. (“FelCor
      LLC”)

              

      

       

      
        	
                 
      

              	
                10% Senior Secured
      Notes Due 2014 (the “Notes”)

              

      

       

      Dear
Sirs:

       

      In
connection with our proposed sale of U.S.$________ aggregate principal amount at
maturity of the Notes, we confirm that such sale has been effected pursuant to
and in accordance with Regulation S under the Securities Act of 1933, as amended
(the “Securities Act”),
and, accordingly, we represent that:

       

      (1)           the
offer of the Notes was not made to a person in the United States;

       

      (2)           at
the time the buy order was originated, the transferee was outside the United
States or we and any person acting on our behalf reasonably believed that the
transferee was outside the United States;

       

      (3)           no
directed selling efforts have been made by us in the United States in
contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S,
as applicable; and

       

      (4)           the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act.

       

      You are
entitled to rely upon this letter and are irrevocably authorized to produce this
letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered
hereby.  Terms used in this certificate have the meanings set forth in
Regulation S.

       

       

      Very
truly yours,

       

       

      [Name of
Transferor]

       

       

      
        	
                 
      

              	
                By:  _________________________________________

              

      

       

       

      
        	
                 
      

              	
                Authorized
      Signature

              

      

       

      
        
          
            D-1

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