Document:

<PAGE>   1
                                                                 EXHIBIT 10.24.1

                                                  Re:
                                                     ---------------------------

                                                     ---------------------------

                                                     ---------------------------

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

John E. Bromberg, Esq.
Stutzman & Bromberg
A Professional Corporation
2323 Bryan Street, Suite 2200A
Dallas, Texas  75201

                      ACCOMMODATION CROSS-COLLATERALIZATION
                DEED OF TRUST AND SECURITY AGREEMENT AND FIXTURE
                   FILING WITH ASSIGNMENT OF LEASES AND RENTS

                                   Cover Sheet
Dated as of April 20, 2000

Trustor:                        FELCOR/MM S-7 HOLDINGS, L.P., a Delaware limited
                                partnership
                                (Hereinafter sometimes "Borrower")

Trustor's                       c/o FelCor Lodging Trust Incorporated
Notice Address:                 545 E. John Carpenter Freeway, Suite 1300
                                Irving, Texas 75062
                                Attention:  Andrew J. Welch or Joel M. Eastman

Trustee:
                                ---------------------------------------
Trustee's
Notice Address:                 -------------------------------

                                -------------------------------

                                -------------------------------

<PAGE>   2

Beneficiary:                    MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, a
                                Massachusetts corporation, and TEACHERS
                                INSURANCE AND ANNUITY ASSOCIATION
                                OF AMERICA, a New York corporation
                                (Hereinafter sometimes
                                collectively "Lender")

MassMutual                      c/o David L. Babson and Company Incorporated
Notice Address:                 1295 State Street
                                Springfield, Massachusetts   01111-0001
                                Attention:         Senior Managing Director
                                                   Mortgage Portfolio Department
                                                   Real Estate Investment Group

TIAA Notice Address             730 Third Avenue
                                New York, New York 10017
                                Attn:  Director Portfolio Management
                                       Mortgage and Real Estate

Loan Amount:                    $_________________ evidenced by two (2)
                                promissory notes, each in the original principal
                                amount of $__________

Maturity Date:                  May 1, 2010

State:
                                ---------------

Record Owner of the Land        FELCOR/MM S-7 HOLDINGS, L.P., a Delaware limited
(as defined herein):            partnership

<PAGE>   3

                      ACCOMMODATION CROSS-COLLATERALIZATION
                DEED OF TRUST AND SECURITY AGREEMENT AND FIXTURE
                   FILING WITH ASSIGNMENT OF LEASES AND RENTS

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>                                                                                                            <C>
GRANTING CLAUSES..................................................................................................1

ARTICLE I - Definition of Terms...................................................................................4

ARTICLE II - Covenants of Borrower...............................................................................17

Section 2.01. - Payment of the Indebtedness......................................................................17
Section 2.02. - Title to the Mortgaged Property..................................................................17
Section 2.03. - Maintenance of the Mortgaged Property............................................................17
Section 2.04. - Insurance; Restoration...........................................................................18
Section 2.05. - Condemnation.....................................................................................24
Section 2.06. - Impositions......................................................................................24
Section 2.07. - Deposits.........................................................................................25
Section 2.08. - Mortgage Taxes...................................................................................26
Section 2.09. - Loan Documents Authorized........................................................................26
Section 2.10. - Maintenance of Existence.........................................................................27
Section 2.11. - Payment of Liens.................................................................................27
Section 2.12. - Costs of Defending and Upholding the Lien........................................................27
Section 2.13. - Costs of Enforcement.............................................................................28
Section 2.14. - Interest on Advances and Expenses................................................................28
Section 2.15. - Indemnification..................................................................................28
Section 2.16. - Financial Statements; Records....................................................................28
Section 2.17. - Prohibition Against Conveyances and Encumbrances.................................................30
Section 2.18. - Estoppel Certificates............................................................................32
Section 2.19. - Assignment of Leases and Property Income.........................................................32
Section 2.20. - Environmental Matters; Warranties; Notice; Indemnity.............................................34
Section 2.21. - Environmental Matters; Remedial Work.............................................................36
Section 2.22. - Environmental Matters; Inspection................................................................37
Section 2.23. - Management.......................................................................................38
Section 2.24. - ERISA............................................................................................38
Section 2.25. - Operating Agreements.............................................................................38
Section 2.26. - Single-Purpose Entity............................................................................39
</TABLE>

                                       i
<PAGE>   4

<TABLE>
<S>                                                                                                             <C>
ARTICLE III - Security Agreement.................................................................................39

Section 3.01. - Warranties, Representations and Covenants of Borrower............................................39
Section 3.02. - Financing Statements.............................................................................41
Section 3.03. - Addresses........................................................................................41

ARTICLE IV - Default and Remedies................................................................................41

Section 4.01. - Events of Default................................................................................41
Section 4.02. - Remedies.........................................................................................43
Section 4.03. - General Provisions Regarding Remedies............................................................45

ARTICLE V - Trustee..............................................................................................53

Section 5.01. - Certain Actions of Trustee.......................................................................53
Section 5.02. - Reconveyance.....................................................................................53
Section 5.03. - Trustee's Covenants and Compensation.............................................................53
Section 5.04. - Substitution of Trustee..........................................................................53
Section 5.05. - Resignation of Trustee...........................................................................54
Section 5.06. - Ratification of Acts of Trustee..................................................................54

ARTICLE VI - Miscellaneous.......................................................................................54

Section 6.01. - Notices..........................................................................................54
Section 6.02. - Binding Obligations; Joint and Several...........................................................55
Section 6.03. - Captions.........................................................................................55
Section 6.04. - Further Assurances...............................................................................55
Section 6.05. - Severability.....................................................................................55
Section 6.06. - Borrower's Obligations Absolute..................................................................55
Section 6.07. - Amendments.......................................................................................56
Section 6.08. - Other Loan Documents and Schedules...............................................................56
Section 6.09. - Legal Construction...............................................................................56
Section 6.10. - Merger...........................................................................................56
Section 6.11. - Time of the Essence..............................................................................56
Section 6.12. - Transfer of Loan.................................................................................57
Section 6.13. - Satisfaction.....................................................................................57
Section 6.14. - Defeasance Requirements..........................................................................57
Section 6.15. - Partial Release..................................................................................59
Section 6.16. - Substitution of Collateral.......................................................................60
Section 6.17. - Subordinate......................................................................................61

Signature Page...................................................................................................63
</TABLE>

Schedule A - Description of Land
Schedule B - Permitted Encumbrances
Exhibit A - Example for Debt Service Coverage Ratio - Mortgaged Properties
Exhibit B - Example for Debt Service Coverage Ratio - Remaining Properties

                                       ii

<PAGE>   5

               ACCOMMODATION CROSS-COLLATERALIZATION DEED OF TRUST
                       AND SECURITY AGREEMENT AND FIXTURE
                   FILING WITH ASSIGNMENT OF LEASES AND RENTS

THIS ACCOMMODATION CROSS-COLLATERALIZATION DEED OF TRUST AND SECURITY AGREEMENT
AND FIXTURE FILING WITH ASSIGNMENT OF LEASES AND RENTS (this "Deed of Trust") is
made as of April 20, 2000, by and between FELCOR/MM S-7 HOLDINGS, L.P., a
Delaware limited partnership having an office at c/o FelCor Lodging Trust
Incorporated, 545 E. John Carpenter Freeway, Suite 1300, Irving, Texas 75062
("Trustor" and "Borrower"), in favor of ____________________________ having an
office at ___________________ ("Trustee"), for the use and benefit of
MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, a Massachusetts corporation having
an office at 1295 State Street, Springfield, Massachusetts 01111-0001
("MassMutual") and TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA, a New
York corporation ("TIAA") having an office at 730 Third Avenue, New York, New
York 10017 (MassMutual and TIAA are collectively referred to herein as
"Beneficiary" and "Lender").

                                GRANTING CLAUSES

For good and valuable consideration and to secure and enforce pari passu an
indebtedness in the principal sum of _____________________ ($_________________)
lawful money of the United States, to be paid according to (i) that certain
Promissory Note of even date herewith from Borrower to MassMutual in the
principal sum of $______________ and by this reference made a part hereof (said
Promissory Note, as the same may hereafter be amended, modified, consolidated or
extended, the "MassMutual Note"), and (ii) that certain Promissory Note of even
date herewith from Borrower to TIAA in the principal sum of $_______________ and
by this reference made a part hereof (said Promissory Note as the same may
hereafter be amended, modified, consolidated or extended, the "TIAA Note") (the
MassMutual Note and the TIAA Note being hereinafter collectively referred to as
the "Note"), together with all other obligations and liabilities due or becoming
due to Lender pursuant to the Loan Documents (hereinafter defined) and the
Related Loan Documents (hereinafter defined) and, all amounts, sums and expenses
paid hereunder by or payable to Lender according to the terms hereof, and all
other covenants, obligations and liabilities of Borrower under the Note, this
Deed of Trust, the Assignment (hereinafter defined) and any other instrument
evidencing, securing or executed in connection with the loan evidenced by the
Note (all of the foregoing instruments, collectively, the "Loan Documents") and
the Related Loan Documents, together with all interest on said indebtedness,

                                       1
<PAGE>   6

obligations, liabilities, amounts, sums, Advances (as hereinafter defined) and
expenses (all of the foregoing, collectively, the "Indebtedness"), Borrower has
created in favor of Lender a security interest in and mortgaged, warranted,
granted, bargained, sold, conveyed, assigned, pledged, transferred and set over,
and does by these presents create a security interest in and MORTGAGE, WARRANT,
GRANT, BARGAIN, SELL, CONVEY, ASSIGN, PLEDGE, TRANSFER AND SET OVER unto
Trustee, as trustee for the benefit of Lender, to its successors in the trust
created by this Deed of Trust, and to its or their respective assigns forever,
in trust, with all POWERS OF SALE and RIGHTS OF ENTRY AND POSSESSION and all
STATUTORY RIGHTS AND COVENANTS in the State (hereinafter defined), the following
property:

The parcel or parcels of land described in Schedule A attached hereto and by
this reference made a part hereof (the "Land");

TOGETHER with the buildings, foundations, structures and improvements (including
fixtures) now or hereafter located on or in the Land (collectively, the
"Improvements");

TOGETHER with all right, title and interest, if any, of Borrower in and to the
streets and roads, opened or proposed, abutting the Land, all strips and gores
within or adjoining the Land, the air space and right to use the air space above
the Land, all rights of ingress and egress to and from the Land, all easements,
rights of way, reversions, remainders, estates, rights, titles, interests,
privileges, servitudes, tenements, hereditaments, and appurtenances now or
hereafter affecting the Land or the Improvements, all royalties and rights and
privileges appertaining to the use and enjoyment of the Land or the
Improvements, including all air, lateral support, streets, alleys, passages,
vaults, drainage, water, oil, gas and mineral rights, development rights, all
options to purchase or lease, and all other interests, estates or claims, in law
or in equity, which Borrower now has or hereafter may acquire in or with respect
to the Land or the Improvements (collectively, the "Appurtenances");

The Land, the Improvements and the Appurtenances are hereinafter sometimes
collectively referred to as the "Premises";

TOGETHER with all of Borrower's possessory or title interest in and to all
equipment, fittings, furniture, furnishings, appliances, apparatus, and
machinery now or hereafter installed in or located upon the Premises and all
building materials, supplies and equipment now or hereafter delivered to the
Premises and intended to be installed therein or located thereon; all of
Borrower's possessory or title interest in and to all fixtures, other goods and
personal property of whatever kind and nature now contained on or in or
hereafter placed on or in the Premises and used or to be used in connection with
the letting or operation thereof (but specifically excluding inventory and other
personal property owned by any lessee under a Lease) and all renewals or
replacements of any of the foregoing property or articles in substitution
thereof (collectively, the "Equipment");

                                       2
<PAGE>   7

TOGETHER with all right, title and interest of Borrower in and under all present
or future accounts, (including trade accounts, accounts receivables, credit card
receivables, and rights to payments for goods and services, including food,
beverages and other items sold or leased, whether or not earned by performance),
escrows, documents, instruments, chattel paper, and general intangibles, as the
foregoing terms are defined in the Code (hereinafter defined), and all contract
rights, including, without limitation, casualty insurance policies and liability
insurance policies (irrespective of whether such policies are required to be
obtained or maintained in force pursuant to this Deed of Trust or other Loan
Documents), trade names, trademarks, servicemarks, logos, copyrights, goodwill,
franchises, books, records, plans, specifications, permits, licenses, approvals,
actions and causes of action which now or hereafter relate to, are derived from
or are used in connection with the Premises or the use, operation, maintenance,
occupancy or enjoyment thereof or the conduct of any business or activities
thereon (collectively, the "Intangibles");

TOGETHER with all right, title and interest of Borrower in and under all leases,
lettings, tenancies, franchises and licenses of the Premises or any part thereof
now or hereafter entered into and all amendments, extensions, renewals and
guaranties thereof, all security therefor, and all moneys payable thereunder
(collectively, the "Leases");

TOGETHER with all room rentals and charges of room rentals, room deposits,
rents, income, accounts, receivables, issues, profits, security deposits and
other benefits to which Borrower may now or hereafter be entitled from the
Premises, the Equipment or the Intangibles or under or in connection with the
Leases (collectively, the "Property Income"); and

TOGETHER with all proceeds, judgments, claims, compensation, awards of damages
and settlements pertaining to or resulting from or in lieu of any condemnation
or taking of the Premises by eminent domain or any casualty loss or damage to
any of the Premises, the Equipment, the Intangibles, the Leases or the Property
Income, and including also, without limitation, the right to assert, prosecute
and settle claims arising out of or pertaining to such condemnation or taking or
such casualty loss under insurance policies constituting an Intangible and to
apply for and receive payments of proceeds under such insurance policies and in
any condemnation or taking, the right to apply for and receive all refunds with
respect to the payment of property taxes and assessments and all other proceeds
from the conversion, voluntary or involuntary, of the Premises, the Equipment,
the Intangibles, the Leases or the Property Income, or any part thereof, into
cash or liquidated claims. Collectively, all of the foregoing, are herein
referred to as the "Proceeds."

The Equipment, the Intangibles, the Leases, the Property Income and the Proceeds
are hereinafter sometimes collectively referred to as the "Collateral." The
Premises and the Collateral are hereinafter sometimes collectively referred to
as the "Mortgaged Property."

                                       3
<PAGE>   8

TO HAVE AND TO HOLD the Mortgaged Property, with all the privileges and
appurtenances to the same belonging, and with the possession and right of
possession thereof, unto Trustee, as trustee for the benefit of Lender as
beneficiary, to its successors in the trust created by this Deed of Trust, and
to its or their successors and assigns forever, in trust, upon the terms and
conditions set forth herein.

TRUSTOR AGREES THAT THE LOAN EVIDENCED BY THE NOTE IS CROSS-DEFAULTED AND
CROSS-COLLATERALIZED WITH THE LOANS EVIDENCED BY THE RELATED NOTES. IN THAT
RESPECT, ANY DEFAULT UNDER THE RELATED LOAN DOCUMENTS SHALL CONSTITUTE A DEFAULT
HEREUNDER.

                                    ARTICLE I
                               Definition of Terms

         As used in this Deed of Trust, the terms set forth below shall have the
following meanings:

         "Advances" - All sums, amounts or expenses advanced or paid and all
costs reasonable incurred by Lender, as provided in this Deed of Trust or in any
other Loan Document, upon failure of Borrower to pay or perform any obligation
or covenant contained herein or in such other Loan Document.

         "Agreement Concerning Primary Lease Agreement" - means that certain
Agreement Concerning Primary Lease Agreement of even date herewith between
[FCH/SH Leasing] [FCH/SH Leasing II] and Lender and consented to by Borrower.

         "Allocated Loan Amount" - means the loan amount allocated to each of
the Mortgaged Properties as follows:

<TABLE>
<CAPTION>
Property           Loan Amount
--------           -----------
<S>                <C>
Arizona            $27,000,000.00
Florida            $13,000,000.00
Georgia            $18,000,000.00
Illinois           $25,000,000.00
Kentucky           $ 7,000,000.00
Pennsylvania       $34,000,000.00
Vermont            $21,000,000.00
</TABLE>

                                       4
<PAGE>   9

         "Annual Debt Service" - means all principal, interest and other
payments due under the Note and any Related Note for any calendar year.

         "Application" - means that certain MassMutual Application for Real
Estate Loan dated February 23, 2000 executed by Joel M. Eastman.

         "Appurtenances" - See Granting Clauses.

         ["Arizona Loan Documents" - means the Arizona Note, the Arizona
Mortgage and any other instrument evidencing, securing or executed in connection
with the loan evidenced by the Arizona Note.

         "Arizona Mortgage" - means that certain Deed of Trust and Security
Agreement and Fixture Filing With Assignment of Leases and Rents of even date
herewith securing the Arizona Note, executed by Borrower for the benefit of
Mortgagee.

         "Arizona Note" - means collectively (i) that certain promissory note of
even date herewith in the original principal amount of $13,500,000.00 executed
by Borrower and payable to the order of MassMutual, and (ii) that certain
promissory note of even date herewith in the original principal amount of
$13,500,000.00 executed by Borrower and payable to the order of TIAA.]

         "Assignment" - The Assignment of Leases and Rents from Borrower to
Lender of even date herewith.

         "Bank" - has the meaning provided in Section 6.17.

         "Bankruptcy Proceeding" - Any proceeding, action, petition or filing
under the Federal Bankruptcy Code or any similar state or federal law now or
hereafter in effect relating to bankruptcy, reorganization or insolvency, or the
arrangement or adjustment of debts.

         "Beneficiary" - Massachusetts Mutual Life Insurance Company and
Teachers Insurance and Annuity Association of America and their respective
successors and assigns (including any other holders from time to time of the
Note), and also herein called "Lender."

         "Borrower" - The party identified and defined as Trustor and Borrower
on the Cover Sheet and in the preamble of this Deed of Trust, any subsequent
owner of the Mortgaged Property, and its successors and assigns.

         "Business Day" - Any day other than a Saturday, Sunday or other day on
which national banks in the State are not open for business.

                                       5
<PAGE>   10

         "Closing Date" - means the date of this Deed of Trust.

         "Code" - The Uniform Commercial Code of the State.

         "Collateral" - See Granting Clauses.

         "Debt Service Coverage Ratio - Mortgaged Properties" - means (i) the
amount of cash flow generated from the Mortgaged Properties available for
payment of principal, interest, escrow deposits and other amounts, if any, due
under the Note and each Related Note, after payment in cash of all other costs,
fees and expenses attributable on an annual basis to the ownership, operation
and maintenance of the Mortgaged Properties (including Impositions, insurance,
and an FF&E reserve equal to four percent (4%) of the aggregate room and suite
income), divided by (ii) the aggregate amount of principal, interest, escrow
deposits and other amounts, if any, due on an annual basis under the Note and
each Related Note; an example of the calculation of which is attached hereto as
Exhibit A.

         "Debt Service Coverage Ratio - Remaining Properties" - means (i) the
amount of cash flow generated from the Remaining Properties available for
payment of principal, interest, escrow deposits and other amounts, if any, due
under each remaining Related Note, after payment in cash of all other costs,
fees and expenses attributable on an annual basis to the ownership, operation
and maintenance of the Remaining Properties (including Impositions, insurance,
and an FF&E reserve equal to four percent (4%) of the aggregate room and suite
income), divided by (ii) the aggregate amount of principal, interest, escrow
deposits and other amounts, if any, due on an annual basis under each remaining
Related Note; an example of the calculation of which is attached hereto as
Exhibit B.

         "Default" - means the occurrence of any event which, but for the giving
of notice or the passage of time, or both, would be an Event of Default.

         "Default Rate" - The per annum interest rate equal to the sum of three
percent (3%) plus the Contract Rate (as defined in the Note).

         "Defeasance Deposit" - means the amount that will be sufficient to
purchase U.S. Obligations (A) having maturity dates on or prior to, but as close
as possible to, successive scheduled Payment Dates (after the Defeasance Release
Date) upon which Payment Dates interest and principal payments would be required
under the Note and the Related Notes and (B) in amounts sufficient to pay all
scheduled principal and interest payments on the Note and the Related Notes.

         "Defeasance Release Date" - has the meaning provided in Section
6.14(b).

                                       6
<PAGE>   11

         "Defeasance Security Agreement" - has the meaning provided in Section
6.14(d).

         "Entity" - means a (i) corporation, if Borrower is listed as a
corporation in the preamble to this Deed of Trust, (ii) limited partnership, if
Borrower is listed as a limited partnership in the preamble to this Deed of
Trust or (iii) limited liability company, if Borrower is listed as a limited
liability company in the preamble to this Deed of Trust.

         "Environmental Law" - Any present or future federal, state or local
law, statute, regulation or ordinance, and any judicial or administrative order
or judgment thereunder, pertaining to health, industrial hygiene or the
environmental or ecological conditions on, under or about the Premises,
including, without limitation, each of the following as to date or hereafter
amended: the Comprehensive Environmental Response, Compensation and Liability
Act; the Resource Conservation and Recovery Act; the Toxic Substances Control
Act; the Federal Water Pollution Control Act (also known as the Clean Water
Act); the Clean Air Act; and the Hazardous Materials Transportation Act; the
Solid Waste Disposal Act; the Safe Drinking Water Act; the Occupational Safety
and Health Act; the Federal Water Pollution Control Act; the Emergency Planning
and Community Right-To-Know Act; the Federal Insecticide, Fungicide and
Rodenticide Act; the National Environmental Policy Act; and, the Rivers and
Harbors Appropriation Act, and all ________ Environmental laws, including
without limitation, those contained in ______________________.

         "Equipment" - See Granting Clauses; provided, however, the term
"Equipment" shall not include the following personal property owned by [FCH/SH
Leasing] [FCH/SH Leasing II]: all inventories, supplies, and consumables,
including without limitation, food and beverage inventories, inventories of
stationery, forms and office supplies, cleaning and maintenance supplies, guest
room supplies and other operating supplies, and supplies of linens, terry,
uniforms, chinaware, glassware, silverware and serving utensils located at the
Premises.

         "ERISA" - The Employee Retirement Income Security Act of 1974, as
amended.

         "Event of Default" - Any one or more of the events described in Section
4.01 and includes any one or more Monetary Events of Default and/or Non-Monetary
Events of Default.

         "FCH/PSH" - means FCH/PSH, L.P., a Pennsylvania limited partnership.

         ["FCH/SH Leasing" - means FCH/SH Leasing, L.L.C., a Delaware limited
liability company.]

         ["FCH/SH Leasing II" - means FCH/SH Leasing II, L.L.C., a Delaware
limited liability company.]

         "FF&E" - means furnishings, fixtures and equipment.

                                       7
<PAGE>   12

         "Fiscal Year" - The 12 month period commencing on January 1 and ending
on December 31 during each year of the term of this Deed of Trust, or such other
fiscal year of Borrower as Borrower may select from time to time with the prior
consent of Lender. During the first year of the term hereof, Borrower's Fiscal
Year shall be deemed to have commenced on the date of this Deed of Trust and
shall end on the regular Fiscal Year ending date as indicated in the immediately
preceding sentence.

         ["Florida Loan Documents" - means the Florida Note, the Florida
Mortgage and any other instrument evidencing, securing or executed in connection
with the loan evidenced by the Florida Note.

         "Florida Mortgage" - means collectively (i) that certain Mortgage and
Security Agreement of even date herewith securing the Florida Note, executed by
Borrower and Guarantor for the benefit of Beneficiary, and (ii) that certain
Accommodation Cross-Collateralization Mortgage and Security Agreement of even
date herewith securing the Florida Note and the Related Notes, executed by
Borrower and Guarantor for the benefit of Beneficiary.

         "Florida Note" - means collectively (i) that certain promissory note of
even date herewith in the original principal amount of $6,500,000.00 executed by
Borrower and payable to the order of MassMutual, and (ii) that certain
promissory note of even date herewith in the original principal amount of
$6,500,000.00 executed by Borrower and payable to the order of TIAA.]

         ["Georgia Loan Documents" - means the Georgia Note, the Georgia
Mortgage and any other instrument evidencing, securing or executed in connection
with the loan evidenced by the Georgia Note.

         "Georgia Mortgage" - means collectively (i) that certain Deed to Secure
Debt and Security Agreement of even date herewith securing the Georgia Note,
executed by Borrower for the benefit of Beneficiary, and (ii) that certain
Accommodation Cross-Collateralization Deed to Secure Debt and Security Agreement
of even date herewith securing the Georgia Note and the Related Notes, executed
by Borrower for the benefit of Beneficiary.

         "Georgia Note" - means collectively (i) that certain promissory note of
even date herewith in the original principal amount of $9,000,000.00 executed by
Borrower and payable to the order of MassMutual, and (ii) that certain
promissory note of even date herewith in the original principal amount of
$9,000,000.00 executed by Borrower and payable to the order of TIAA.]

         "Guarantor" - means FelCor Lodging Limited Partnership, a Delaware
limited partnership, formerly known as FelCor Suites Limited Partnership.

                                       8
<PAGE>   13

         "Hazardous Substance" - Any material, waste or substances (other than
cleaning solvents and other materials used in the ordinary course of hotel
operations and present in normal quantities) which is:

         (i)      included within the definitions of "hazardous substances,"
                  "hazardous materials," "toxic substances" or "solid waste" in
                  or pursuant to any Environmental Law, or subject to regulation
                  under any Environmental Law;

         (ii)     listed in the United States Department of Transportation
                  Optional Hazardous Materials Table, 49 C.F.R. Section 172.101,
                  as to date or hereafter amended, or in the United States
                  Environmental Protection Agency List of Hazardous Substances
                  and Reportable Quantities, 40 C.F.R. Part 302, as to date or
                  hereafter amended; or

         (iii)    explosive, radioactive, asbestos, a polychlorinated biphenyl,
                  oil or a petroleum product.

         ["Illinois Loan Documents" - means the Illinois Note, the Illinois
Mortgage and any other instrument evidencing, securing or executed in connection
with the loan evidenced by the Illinois Note.

         "Illinois Mortgage" - means collectively (i) that certain Mortgage and
Security Agreement of even date herewith securing the Illinois Note, executed by
Borrower and Guarantor for the benefit of Beneficiary, and (ii) that certain
Accommodation Cross-Collateralization Mortgage and Security Agreement of even
date herewith securing the Illinois Note and the Related Notes, executed by
Borrower and Guarantor for the benefit of Beneficiary.

         "Illinois Note" - means collectively (i) that certain promissory note
of even date herewith in the original principal amount of $12,500,000.00
executed by Borrower and payable to the order of MassMutual, and (ii) that
certain promissory note of even date herewith in the original principal amount
of $12,500,000.00 executed by Borrower and payable to the order of TIAA.]

         "Impositions" - All taxes of every kind and nature, sewer rents,
charges for water, for setting or repairing meters and for all other utilities
serving the Premises, and assessments, levies, inspection and license fees and
all other charges imposed upon or assessed against the Mortgaged Property or any
portion thereof (including the Property Income), and any stamp or other taxes
which might be required to be paid, or with respect to any of the Loan
Documents, any of which might, if unpaid, affect the enforceability of any of
the remedies provided in this Deed of Trust or result in a lien on the Mortgaged
Property or any portion thereof, regardless of to whom assessed.

         "Indebtedness" - See Granting Clauses.

         "Intangibles" - See Granting Clauses.

                                       9
<PAGE>   14

         "Interest Accrual Period" - means each calendar month, provided the
actual number of days elapsed in the calendar month in which the Closing Date
occurs shall also be an Interest Accrual Period.

         ["Kentucky Loan Documents" - means the Kentucky Note, the Kentucky
Mortgage and any other instrument evidencing, securing or executed in connection
with the loan evidenced by the Kentucky Note.

         "Kentucky Mortgage" - means collectively (i) that certain Mortgage and
Security Agreement of even date herewith securing the Kentucky Note, executed by
Borrower and Guarantor for the benefit of Beneficiary, and (ii) that certain
Accommodation Cross-Collateralization Mortgage and Security Agreement of even
date herewith securing the Kentucky Note and the Related Notes, executed by
Borrower and Guarantor for the benefit of Beneficiary.

         "Kentucky Note" - means collectively (i) that certain promissory note
of even date herewith in the original principal amount of $3,500,000.00 executed
by Borrower and payable to the order of MassMutual, and (ii) that certain
promissory note of even date herewith in the original principal amount of
$3,500,000.00 executed by Borrower and payable to the order of TIAA.]

         "Land" - See Granting Clauses.

         "Late Charge" - Any charge designated as such and payable by Borrower
for tardy performance by Borrower under the Note, this Deed of Trust or any
other Loan Document.

         "Leases" - See Granting Clauses.

         "Lender" - Massachusetts Mutual Life Insurance Company and Teachers
Insurance and Annuity Association of America, the Beneficiary and Lender
identified as such on the Cover Sheet and in the preamble of this Deed of Trust,
and their respective successors and assigns (including any other holders from
time to time of the Note).

          "Lien" - means any mortgage, deed of trust, deed to secure debt, lien
(statutory or other), pledge, easement, restrictive covenant, hypothecation,
assignment, preference, priority, security interest, or any other encumbrance or
charge on or affecting the Mortgaged Property or any portion thereof or any
Collateral or the Borrower, or any interest in any of the foregoing, including,
without limitation, any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing, the filing of any financing statement or similar instrument under the
UCC or comparable law of any other jurisdiction, domestic or foreign, and
mechanic's, materialman's and other similar liens and encumbrances.

                                       10
<PAGE>   15

         "Loan" - means the loan from Lender to Borrower and evidenced by the
Note and the Loan Documents.

         "Loan Documents" - See Granting Clauses.

         "Losses" - claims, suits, liabilities (including without limitation,
strict liabilities), actions, proceedings, obligations, debts, damages, losses,
costs, fines, penalties, charges, fees, expenses, judgments, awards, amounts
paid in settlement, punitive damages, foreseeable and unforeseeable
consequential damages of whatever kind or nature (including but not limited to
reasonable attorneys' fees and other costs of defense).

         "Management Agreement" - means that certain Management Agreement dated
______________, by and between [FCH/SH Leasing] [FCH/SH Leasing II], as owner,
and Sheraton, as operator, [as amended by that certain __________________ dated
____________, by and between [FCH/SH Leasing] [FCH/SH Leasing II] and Sheraton.]

         "Material Lease" - as to the Mortgaged Property, none.

         "Monetary Event of Default" - has the meaning provided in Section 6 of
the Note.

         "Mortgaged Property" - See Granting Clauses.

         "Mortgaged Properties" - means collectively the Mortgaged Property and
the properties secured by the [Arizona Mortgage, Florida Mortgage, the Georgia
Mortgage, the Illinois Mortgage, the Kentucky Mortgage, the Pennsylvania
Mortgage, the Vermont Mortgage] or any mortgage, deed of trust or deed to secure
debt securing any Substitute Property.

         "Net Operating Income" - means (a) all payments made under the Primary
Lease and any Related Primary Lease less (b) all expenses payable by Borrower
under the Primary Lease and any Related Primary Lease or with respect to the
ownership and operation of the Mortgaged Properties (i) including Impositions,
insurance, and an FF&E reserve equal to four percent (4%) of the aggregate room
and suite income, but (ii) excluding deductions for federal, state and other
income taxes, debt service expense, depreciation and amortization and other
non-cash expenses.

         "Non-Material Lease" - means any Lease other than the Primary Lease or
the Material Lease.

         "Non-Monetary Event of Default" - has the meaning provided in Section 6
of the Note.

         "Note" - See Granting Clauses.

                                       11
<PAGE>   16

         "Operating Agreements" - means collectively, the Primary Lease and the
Management Agreement.

         "Operating Period" - means each calendar quarter during the term of the
Loan.

         ["Pennsylvania Loan Documents" - means the Pennsylvania Note, the
Pennsylvania Mortgage and any other instrument evidencing, securing or executed
in connection with the loan evidenced by the Pennsylvania Note.

         "Pennsylvania Mortgage" - means collectively (i) that certain Mortgage
and Security Agreement of even date herewith securing the Pennsylvania Note,
executed by Borrower and FCH/PSH for the benefit of Beneficiary, and (ii) that
certain Accommodation Cross-Collateralization Mortgage and Security Agreement of
even date herewith securing the Pennsylvania Note and the Related Notes,
executed by Borrower and FCH/PSH for the benefit of Beneficiary.

         "Pennsylvania Note" - means collectively (i) that certain promissory
note of even date herewith in the original principal amount of $17,000,000.00
executed by Borrower and payable to the order of MassMutual, and (ii) that
certain promissory note of even date herewith in the original principal amount
of $17,000,000.00 executed by Borrower and payable to the order of TIAA.]

         "Permitted Encumbrances" - The liens and security interest created by
this Deed of Trust and the other Loan Documents and those exceptions to title
set forth in Schedule B to this Deed of Trust.

         "Person" - means an individual, corporation, partnership, joint
venture, association, trust, unincorporated organization, and any other form of
entity, as the context may require.

         "Premises" - See Granting Clauses.

         "Primary Lease" - means that certain Lease Agreement dated ___________,
by and between ____________, as lessor, and [FCH/SH Leasing] [FCH/SH Leasing
II], as lessee, [as amended by that certain Omnibus Lease Amendment Agreement
dated June 30, 1998, by and among FelCor Lodging Trust Incorporated, Guarantor,
[FCH/SH Leasing] [FCH/SH Leasing II] and certain other lessors and lessees under
separate lease agreements].

         "Proceeds" - See Granting Clauses.

         "Property Income" - See Granting Clauses.

                                       12
<PAGE>   17

         "Qualified Hotel Operator" - means any reputable Person domiciled in
the United States of America which has the greater of the financial strength,
qualifications and creditworthiness of [FCH/SH Leasing] [FCH/SH Leasing II]or in
Beneficiary's sole determination, a minimum net worth of $30,000,000.00 and
liquid assets of not less than $3,000,000.00, all as of a date which is 30 days
prior to the date of the transfer. Additionally, neither the proposed purchaser
nor any principal of the proposed purchaser, whether on the date for the closing
of the transfer of title to the Mortgaged Property or at any time prior thereto,
may be (i) in default on any indebtedness or loan from Beneficiary or any
affiliate of Beneficiary, (ii) involved as a debtor in any bankruptcy,
reorganization or insolvency proceeding, (iii) the subject of any criminal
charges or proceedings, or (iv) an entity or individual who is or has been
involved in litigation which is in good faith deemed significant by Beneficiary.

         "Qualified Real Estate Investor" - means any reputable Person domiciled
in the United States of America which has equal the financial strength,
qualifications and creditworthiness of Borrower at the time of the disbursement
of the Note, evaluated as of a date which is 30 days prior to the date of the
proposed closing of the transfer of title to the Mortgaged Property and on the
day after the proposed closing of the transfer. Additionally, neither the
proposed purchaser nor any principal of the proposed purchaser, whether on the
date for the closing of the transfer of title to the Mortgaged Property or at
any time prior thereto, may be (i) in default on any indebtedness or loan from
Beneficiary or any affiliate of Beneficiary, (ii) involved as a debtor in any
bankruptcy, reorganization or insolvency proceeding, (iii) the subject of any
criminal charges or proceeding, or (iv) an entity or individual who is or has
been involved in litigation which is in good faith deemed significant by Lender.

         "Related Loan Documents" - means collectively the Related Notes, the
Related Mortgages and any other instrument evidencing, securing or executed in
connection with the loans evidenced by the Related Notes.

         "Related Loans" - means collectively the loans from Lender to Borrower
and evidenced by each Related Note and the Related Loan Documents.

         "Related Mortgage" - means collectively the [Arizona Mortgage, Florida
Mortgage, the Georgia Mortgage, the Illinois Mortgage, the Kentucky Mortgage,
the Pennsylvania Mortgage, the Vermont Mortgage] or any mortgage or deed of
trust or deed to secure debt securing any Substitute Property.

         "Related Note" - means collectively the [Arizona Note, Florida Note,
the Georgia Note, the Illinois Note, the Kentucky Note, the Pennsylvania Note,
the Vermont Note] or any promissory note executed in connection with any
Substitute Property.

                                       13
<PAGE>   18

         "Related Primary Lease" - means collectively any primary lease under
the Related Loan Documents.

         "Release" - Release means and includes the following: the release,
deposit, discharge, emission, leaking, spilling, seeping, migrating, injecting,
pumping, pouring, emptying, escaping, dumping, disposing or other movement of a
Hazardous Substance no matter how or by whom or what caused.

         "Released Property" has the meaning provided in Section 6.16.

         "Remaining Properties" - means the properties securing the [Arizona
Note, Florida Note, the Georgia Note, the Illinois Note, the Kentucky Note, the
Pennsylvania Note, the Vermont Note] or any promissory note executed in
connection with any Substitute Property.

         "Remediation" - Remediation means and includes the following: any
response, remedial, removal or corrective action, any activity to cleanup,
detoxify, decontaminate, contain or otherwise remediate any Hazardous Substance,
any actions to prevent, cure or mitigate any Release of a Hazardous Substance,
any action to comply with any Environmental Laws or with any permits issued
pursuant thereto, any inspection, investigation, study, monitoring, assessment,
audit, sampling and testing, laboratory or other analysis, or evaluation
relating to any Hazardous Substances and to anything referred to in Section
2.20.

         "Sheraton" - means _________________________________.

         "Single-Purpose Entity" - means a corporation, limited partnership, or
limited liability company which, at all times since its formation and thereafter
(i) was and will be organized solely for the purpose of (x) owning the Mortgaged
Properties or (y) acting as the managing member of the limited liability company
or the general partner of a limited partnership which owns the Mortgaged
Properties, (ii) has not and will not engage in any business unrelated to the
(x) the ownership of the Mortgaged Properties or (y) acting as a member of a
limited liability company or general partner of a limited partnership which owns
the Mortgaged Properties, (iii) has not and will not have any assets other than
(x) those related to the Mortgaged Properties or (y) its member interest in the
limited liability company or its general partnership interest in the limited
partnership which owns the Mortgaged Properties, as applicable, (iv) has not and
will not engage in, seek or consent to any dissolution, winding up, liquidation,
consolidation or merger, and, except as otherwise expressly permitted by this
Deed of Trust, has not and will not engage in, seek or consent to any asset
sale, transfer of partnership or membership or shareholder interests, or
amendment of its limited partnership agreement, articles of incorporation,
articles of organization, certificate of formation or operating agreement (as
applicable), (v) if such entity is a limited partnership, has and will have as a
general partner, a general partner which is and will be a Single-Purpose Entity,
(vi) has not and will not fail to correct any known misunderstanding

                                       14
<PAGE>   19

regarding the separate identity of such entity, (vii) without the unanimous
consent of all of the partners, directors or members, as applicable, has not and
will not with respect to itself or to any other entity in which it has a direct
or indirect legal or beneficial ownership interest (a) file a bankruptcy,
insolvency or reorganization petition or otherwise institute insolvency
proceedings or otherwise seek any relief under any laws relating to the relief
from debts or the protection of debtors generally; (b) seek or consent to the
appointment of a receiver, liquidator, trustee, sequestrator, custodian or any
similar official for such entity or all or any portion of such entity's
properties; (c) make any assignment for the benefit of such entity's creditors;
or (d) take any action that might cause such entity to become insolvent, (x) has
maintained and will maintain its accounts, books and records separate from any
other person or entity, (xi) has maintained and will maintain its books,
records, resolutions and agreements as official records, (xii) has not
commingled and will not commingle its funds or assets with those of any other
entity, (xiii) has held and will hold its assets in its own name, (xiv) has
conducted and will conduct its business in its name, (xv) has maintained and
will maintain its financial statements, accounting records and other entity
documents separate from any other person or entity, (xvi) has paid and will pay
its own liabilities out of its own funds and assets, (xvii) has observed and
will observe all partnership, corporate or limited liability company
formalities, as applicable, (xviii) has maintained and will maintain an
arms-length relationship with its affiliates other than the leases transferred
to Borrower and its general partner as part of their initial capital
contributions, (xix) (a) if such entity owns the Mortgaged Properties, has and
will have no indebtedness other than the Indebtedness, equipment leases
permitted by this Deed of Trust and unsecured trade payables in the ordinary
course of business relating to the ownership and operation of the Mortgaged
Properties which trade payables (1) do not exceed, at any time, a maximum amount
of one percent (1%) of the Loan Amount and (2) are paid within thirty (30) days
of the date incurred, or (b) if such entity acts as the general partner of a
limited partnership or managing member of a limited liability company which owns
the Mortgaged Properties, has and will have no indebtedness other than unsecured
trade payables in the ordinary course of business relating to acting as general
partner or managing member which owns the Mortgaged Properties which (1 ) do not
exceed, at any time, Ten Thousand Dollars ($10,000.00) and (2) are paid within
thirty (30) days of the date incurred, (xx) has not and will not assume or
guarantee or become obligated for the debts of any other entity or hold out its
credit as being available to satisfy the obligations of any other entity except
for the Indebtedness, (xxi) has not acquired and will not acquire obligations or
securities of its partners, members or shareholders, (xxii) has allocated and
will allocate fairly and reasonably shared expenses, including, without
limitation, shared office space and uses separate stationery, invoices and
checks, (xxiii) has not and will not pledge its assets for the benefit of any
other person or entity, (xxiv) has held and identified itself and will hold
itself out and identify itself as a separate and distinct entity under its own
name and not as a division or part of any other person or entity, (xxv) has not
made and will not make loans to any person or entity, (xxvi) has not and will
not identify its partners, members or shareholders, or any affiliates of any of
them as a division or part of it, (xxvii) other than the leases transferred to
Borrower and its general partner

                                       15
<PAGE>   20

as part of their initial capital contributions has not entered and will not
enter into or be a party to, any transaction with its partners, members,
shareholders or its affiliates except in the ordinary course of its business and
on terms which are intrinsically fair and are no less favorable to it than would
be obtained in a comparable arms-length transaction with an unrelated third
party, (xxviii) has paid and will pay the salaries of its own employees from its
own funds, (xxix) has maintained and will maintain adequate capital in light of
its contemplated business operations and (xxx) if such entity is a limited
liability company or limited partnership, then such entity shall continue (and
not dissolve) for so long as a solvent managing member or general partner, as
applicable, exists and such entity's organizational documents shall contain such
provision.

         "State" - The State or Commonwealth in which the Land is situated.

         "Substitute Property" has the meaning provided in Section 6.16.

         "Trustee" - The party or parties identified and defined as Trustee on
the Cover Sheet and in the preamble of this Deed of Trust, and its or their
respective successors in the trust created by this Deed of Trust, and its or
their respective assigns.

         "Trustor" - The party identified as such on the Cover Sheet and in the
preamble of this Deed of Trust, any subsequent owner of the Mortgaged Property,
and its successors and assigns. The Trustor is also herein called "Borrower."

         "U.S. Obligations" - means obligations or securities not subject to
prepayment, call or early redemption which are direct obligations of, or
obligations fully guaranteed as to timely payment by, the United States of
America or any agency or instrumentality of the United States of America, the
obligations of which are backed by the full faith and credit of the United
States of America.

         ["Vermont Loan Documents" - means the Vermont Note, the Vermont
Mortgage and any other instrument evidencing, securing or executed in connection
with the loan evidenced by the Vermont Note.

         "Vermont Mortgage" - means collectively (i) that certain Mortgage and
Security Agreement of even date herewith securing the Vermont Note, executed by
Borrower for the benefit of Beneficiary, and (ii) that certain Accommodation
Cross-Collateralization Mortgage and Security Agreement of even date herewith
securing the Vermont Note and the Related Notes, executed by Borrower for the
benefit of Beneficiary.

         "Vermont Note" - means collectively (i) that certain promissory note of
even date herewith in the original principal amount of $10,500,000.00 executed
by Borrower and payable to the order of

                                       16
<PAGE>   21

MassMutual, and (ii) that certain promissory note of even date herewith in the
original principal amount of $10,500,000.00 executed by Borrower and payable to
the order of TIAA.]

                                   ARTICLE II
                              Covenants of Borrower

         Borrower covenants, warrants, represents and agrees with and to Trustee
and Lender as follows:

         Section 2.01. Payment of the Indebtedness. Borrower shall punctually
pay the Indebtedness at the times and in the manner provided in the Note and the
other Loan Documents, all in lawful money of the United States of America.

         Section 2.02. Title to the Mortgaged Property.

(a)      Borrower has fee simple title (or such lesser estate therein as may be
         specified in Schedule A) to the Premises and good indefeasible title to
         the balance of the Mortgaged Property, free and clear of liens and
         encumbrances except Permitted Encumbrances.

(b)      Borrower has full power and lawful authority to encumber the Mortgaged
         Property in the manner and form herein set forth.

(c)      This Deed of Trust is and will remain a valid and enforceable lien on
         and security interest in the Mortgaged Property.

(d)      Borrower will preserve such title and will forever warrant and defend
         the same and the validity and priority of the lien hereof to Trustee
         and Lender against all claims whatsoever.

(e)      The Mortgaged Property is in material compliance with all provisions of
         all zoning, subdivision, land use, environmental, traffic, fire,
         building, and occupational safety and health rules, regulations, codes,
         acts and statutes to which it is subject.

         Section 2.03. Maintenance of the Mortgaged Property. Borrower shall (or
shall enforce its rights under the Primary Lease to cause [FCH/SH Leasing]
[FCH/SH Leasing II] to) maintain the Mortgaged Property in good and safe
condition, working order and repair, and comply with all existing and future
federal, state and local laws, ordinances, rules and regulations and court
orders affecting or which may be interpreted as affecting the Mortgaged
Property. Borrower shall permit Lender to enter upon and inspect the Mortgaged
Property (without prior notice in the event of an emergency) at all reasonable
hours; provided, Lender makes an appointment through the general manager of the
hotel after reasonable notice and in a manner that does not affect normal
business operations. Borrower

                                       17
<PAGE>   22

shall not, without the prior consent of Lender, (a) change the use of the
Premises or cause or permit the use or occupancy of any part of the Premises to
be discontinued if such discontinuance would violate any zoning or other law,
ordinance or regulation; (b) consent to any zoning reclassification,
modification or restriction affecting the Premises; (c) threaten, commit or
permit any waste, structural or material alteration, demolition or removal of
the Mortgaged Property or any portion thereof (provided that the Equipment
included within the Collateral may be removed if replaced with similar items of
equal or greater value); or (d) take any steps whatsoever to convert the
Mortgaged Property, or any portion thereof, to a condominium or cooperative form
of ownership. No provision of this Section 2.03 shall prohibit Borrower from
undertaking and completing tenant improvement work authorized under Leases
previously approved by Lender or not requiring Lender's prior approval.
Notwithstanding the foregoing, Borrower shall enforce its rights under the
Primary Lease to cause [FCH/SH Leasing] [FCH/SH Leasing II] to operate the
Mortgaged Property in a first class manner and at all times during the term of
the Loan as a "Sheraton, Westin or Luxury Collection" hotel or under another
flag acceptable to Lender.

         Section 2.04.     Insurance; Restoration.

(a)      Borrower shall keep the Improvements and the Equipment insured against
         damage by fire and the other hazards covered by a comprehensive all
         risk coverage insurance policy in an amount equal to 100% of the full
         insurable value thereof (which shall mean the full repair and actual
         replacement value thereof providing for no deductible in excess of
         $25,000.00, without reduction for depreciation or co-insurance) as
         approved by Lender, and against loss of rents in an amount not less
         than 12 months' rental income from all Leases. Borrower shall also
         carry such other insurance, and in such amounts, as Lender may from
         time to time reasonably require, against insurable risks which at the
         time are commonly insured against in the case of premises similarly
         situated, due regard being given to the availability of insurance and
         to the type of construction, location, utilities, use and occupancy of
         the Premises or any replacements or substitutions therefor. Such
         additional insurance may include workers' compensation, boiler and
         machinery, flood, earthquake, demolition and contingent liability from
         the operation of "non-conforming" improvements on the Premises, and
         shall be obtained within 20 days after demand by Lender.
         Notwithstanding the foregoing, in the event Borrower obtains an
         umbrella or a blanket insurance policy or a separate policy or any
         other insurance policy affecting the Mortgaged Property hereunder,
         Borrower shall notify Lender of the same and shall cause certified
         copies of each insurance policy to be delivered as required under
         Section 2.04(c) below. Any umbrella or blanket insurance policy shall
         specifically allocate to the Mortgaged Property the amount of coverage
         from time to time required hereunder and shall otherwise provide the
         same protection as would a separate policy insuring only the Mortgage
         Property in compliance with the provisions of Section 2.04(c), giving
         Lender all of the rights set forth in this Section 2.04. The Proceeds
         of insurance paid on account of any damage to or destruction

                                       18
<PAGE>   23

         of the Premises or any portion thereof shall be paid over to Lender to
         be applied as hereinafter provided.

(b)      Borrower shall also maintain or cause to be maintained by [FCH/SH
         Leasing] [FCH/SH Leasing II] pursuant to the terms of the Primary Lease
         general liability insurance with respect to the Premises against
         personal injury, death and property damage, with limits of liability in
         amounts reasonably satisfactory to Lender.

(c)      All insurance policies and endorsements required pursuant to this Deed
         of Trust shall (i) be endorsed to name Lender as an insured thereunder,
         as its interest may appear, with loss payable to Lender, without
         contribution, under a long-form, non-contributory mortgagee clause, or
         otherwise endorsed as Lender may reasonably require; (ii) be fully paid
         for and contain such provisions and expiration dates and be in such
         form and issued by such insurance companies licensed to do business in
         the State, with a rating of "A- VIII" or better as established by
         Best's Rating Guide or an equivalent rating with such other publication
         of a similar nature as shall be in current use, as shall be approved by
         Lender; (iii) without limiting the foregoing, provide that such policy
         or endorsement may not be canceled or materially changed except upon 30
         days prior written notice of intention of non-renewal, cancellation or
         material change to Lender, and that no act or thing done by Borrower or
         Lender shall invalidate the policy as against Lender; and (iv) be in
         form and content reasonably satisfactory to Lender. Borrower shall
         deliver all original policies including all endorsements and renewals
         thereof, or copies thereof certified by the insurance company or
         authorized agent as being true copies, to Lender together with all
         endorsements required hereunder, on the date of this Deed of Trust and
         thereafter at least 10 days prior to the expiration date of such
         policies. Borrower may request an extension of time not exceeding 120
         days to deliver the foregoing policies, endorsements and renewals or
         certified copies thereof if Borrower has done all things necessary to
         obtain the issuance of the policies, endorsements and renewals
         including, without limitation, the payment of all premiums therefor,
         and Borrower has delivered to Lender within the above 10 day period an
         insurance binder reasonably satisfactory to Lender issued by the
         approved insurer showing all required coverage to be in full force and
         effect for the succeeding 12 month period along with evidence
         reasonably satisfactory to Lender of payment in full of all premiums.
         If Borrower fails to maintain insurance in compliance with this Deed of
         Trust, Lender may (but shall not be obligated to) obtain such insurance
         and pay the premium therefor and Borrower shall reimburse Lender on
         demand for all such Advances. Notwithstanding anything to the contrary
         contained herein or in any provision of law, the Proceeds of insurance
         policies coming into the possession of Lender shall not be deemed trust
         funds and Lender shall be entitled to dispose of such Proceeds as
         hereinafter provided.

(d)      In the event of any damage to or destruction of the Premises and/or
         Equipment, Borrower shall give prompt written notice to Lender and
         shall promptly commence and diligently continue to

                                       19
<PAGE>   24

         completion the repair, restoration and rebuilding of the Premises
         and/or Equipment so damaged or destroyed in full compliance with all
         legal requirements and with the provisions of Section 2.04(h)(i) below,
         and free and clear from any and all liens and claims. Such repair,
         restoration and rebuilding of the Premises are sometimes hereinafter
         collectively referred to as the "Work." If any Event of Default is then
         existing or if in Lender's reasonable judgment the cost of the Work is
         $1,000,000 or more, then Borrower shall not adjust, compromise or
         settle any claim for insurance proceeds without the prior consent of
         Lender. Subject to Section 2.04(g), Lender shall have the option in its
         sole discretion to apply any insurance Proceeds it may receive pursuant
         to this Deed of Trust (less any cost to Lender of recovering and paying
         out such Proceeds, including reasonable attorneys' fees) to the payment
         of the Indebtedness or to allow all or a portion of such Proceeds to be
         used for the Work. If any insurance Proceeds are applied to reduce the
         Indebtedness, provided no Event of Default shall have occurred and be
         continuing, Lender shall apply the same, without any prepayment fee, in
         the following order:

         (i)      first, to the payment of interest due on any Advances;

         (ii)     next, to the principal amount of any Advances;

         (iii)    next, to any Late Charges, attorney's fees or any other amount
                  due hereunder or under a Loan Document save for the amounts
                  described in (iv) and (v) immediately below;

         (iv)     next, to accrued interest then due under the Note; and

         (v)      finally, to the unpaid principal balance of the Note (in the
                  inverse order of maturity of principal installments thereof).

         If an Event of Default shall have occurred and be continuing, however,
         Lender, at its option, may apply any insurance Proceeds to the
         foregoing items in such order and priority as Lender deems appropriate
         in its sole discretion.

(e)      In the event of the foreclosure of this Deed of Trust or other transfer
         of title to or assignment of the Mortgaged Property in extinguishment
         of the Indebtedness in whole or in part, all right, title and interest
         of Borrower in and to all policies of insurance required by this Deed
         of Trust and any insurance Proceeds shall inure to the benefit of and
         pass to Lender or any purchaser or transferee at the foreclosure sale
         of the Mortgaged Property.

(f)      Borrower hereby irrevocably appoints Lender its attorney-in-fact,
         coupled with an interest, to apply and make claims for insurance
         Proceeds under all insurance policies constituting Intangibles, to
         prosecute and settle such claims and to endorse any checks, drafts or
         other instruments representing any insurance Proceeds whether payable
         by reason of loss thereunder

                                       20
<PAGE>   25

         or otherwise. Additionally, Lender may notify any and all insurers
         under casualty and liability insurance policies constituting part of
         the Intangibles that Lender has a security interest pursuant to the
         provisions of this Deed of Trust in and to such insurance policies and
         any proceeds thereof, and that any payments under those insurance
         policies are to be made directly to Lender. Lender's rights under this
         Section 2.04(f) may be exercised by Lender or a court appointed
         receiver appointed upon the request of Lender and irrespective of
         whether or not a default shall have occurred under this Deed of Trust.

(g)      Notwithstanding the provisions of Section 2.04(d) above, if in Lender's
         reasonable judgment the cost of the Work shall not exceed 50 percent of
         the then outstanding principal balance of the Note, then Lender shall,
         upon request by Borrower, permit Borrower to use the Proceeds for the
         Work (subject to the provisions of, and less Lender's costs described
         in, Section 2.04(h) below), so long as:

         (i)      no Event of Default shall then exist nor any matter(s) exist
                  which, after notice of default or passage of time or both,
                  would constitute an Event of Default;

         (ii)     the original Borrower named herein continues to be the owner
                  of the Mortgaged Property;

         (iii)    the Work can be completed within 12 months from the date of
                  the damage to or destruction of the Premises;

         (iv)     none of the Operating Agreements in effect immediately prior
                  to the damage or destruction shall have been canceled or
                  terminated and not replaced with substitute agreements
                  reasonably acceptable to Lender;

         (v)      all sums necessary to effect the Work over and above any
                  available Proceeds shall be at the sole cost and expense of
                  the Borrower and, at Lender's request, Borrower shall deposit
                  such additional amounts, as reasonably estimated by Lender,
                  with Lender prior to commencing any Work and at all times
                  thereafter;

         (vi)     at all times during any such Work Borrower shall maintain, at
                  its sole cost and expense, workers' compensation, builders
                  risk and public liability insurance in amounts reasonably
                  satisfactory to Lender and in accordance with the provisions
                  of this Section 2.04; and

         (vii)    any unexpended Proceeds, at the sole option of the Lender,
                  shall either be paid over to the Borrower or shall be applied
                  to the reduction of the Indebtedness. If the Proceeds

                                       21
<PAGE>   26

                  are used to reduce the Indebtedness, they shall be applied in
                  the order provided in Section 2.04(d), without any prepayment
                  fee.

(h)      If any insurance Proceeds are used for the Work, then such Proceeds
         shall be held by Lender and shall be paid out from time to time to
         Borrower as the Work progresses (less any cost to Lender of recovering
         and paying out such Proceeds, including reasonable attorneys' fees and
         costs allocable to inspecting the Work and the plans and specifications
         therefor), subject to each of the following conditions:

         (i)      If the Work is structural or if the cost of the Work is
                  reasonably estimated to exceed Two Hundred Thousand Dollars
                  ($200,000.00), the Work shall be conducted under the
                  supervision of a certified and registered architect or
                  engineer reasonably satisfactory to Lender. Before Borrower
                  commences any Work, other than temporary work to protect
                  persons or property or prevent interference with business,
                  Lender shall have approved the plans and specifications for
                  the Work, which approval shall not be unreasonably withheld or
                  delayed, it being nevertheless understood that such plans and
                  specifications shall provide for Work so that, upon completion
                  thereof, the Premises shall be at least equal in value and
                  general utility to the Premises immediately prior to the
                  damage or destruction.

         (ii)     Each request for payment shall be made on not less than seven
                  Business Days prior notice to Lender and shall be accompanied
                  by a certificate of the architect or engineer in (i) above (or
                  a certificate given by Borrower if no architect or engineer is
                  so required) stating (A) that all of the Work completed has
                  been done in substantial compliance with the approved plans
                  and specifications, if required under (i) above, (B) that the
                  sum requested is justly required to reimburse the Borrower for
                  payments by Borrower, or is justly due to the contractor,
                  subcontractors, materialmen, laborers, engineers, architects
                  or other persons rendering services or materials for the Work
                  (giving a brief description of such services and materials),
                  and that when added to all sums previously paid out by Lender
                  does not exceed the value of the Work done to the date of such
                  certificate, (C) if the sum requested is to cover payment
                  relating to repair and restoration of Equipment required or
                  relating to the Premises, that title to the items of Equipment
                  covered by the request for payment is vested in Borrower, and
                  (D) that the amount of such Proceeds remaining in the hands of
                  Lender will be sufficient on completion of the Work to pay for
                  the same in full (giving in such reasonable detail as Lender
                  may require an estimate of the cost of such completion).
                  Additionally, each request for payment shall contain a
                  statement signed by Borrower approving both the Work done to
                  date and the Work covered by the request for payment in
                  question.

                                       22
<PAGE>   27

         (iii)    Each request for payment shall be accompanied by waivers of
                  lien satisfactory to Lender covering that part of the Work for
                  which payment or reimbursement is being requested and, if
                  required by Lender, a search prepared by a title company or
                  licensed abstractor, or by other evidence satisfactory to
                  Lender that there has not been filed with respect to the
                  Premises any mechanics' or other lien or instrument for the
                  retention of title relating to any part of the Work not
                  discharged of record. Additionally, as to any Equipment
                  covered by the request for payment, Lender shall be furnished
                  with evidence of payment therefor and such further evidence
                  satisfactory to assure Lender of its valid first lien on the
                  Equipment.

         (iv)     Lender shall have the right to inspect the Work at all
                  reasonable times and may condition any disbursement of
                  Proceeds upon the satisfactory completion, as determined in
                  Lender's reasonable discretion, of any portion of the Work for
                  which payment or reimbursement is being requested. Neither the
                  approval by Lender of the plans and specifications for the
                  Work nor the inspection by Lender of the Work shall make
                  Lender responsible for the preparation of such plans and
                  specifications or the compliance of such plans and
                  specifications, or of the Work, with any applicable law,
                  regulation, ordinance, covenant or agreement.

         (v)      Proceeds shall not be disbursed more frequently than every 30
                  days.

         (vi)     Any request for payment made after the Work has been completed
                  shall be accompanied by a copy or copies of any certificate or
                  certificates required by law to render occupancy and full
                  operation of the Premises legal.

         (vii)    Upon any failure on the part of Borrower to promptly commence
                  the Work or to proceed diligently and continuously to
                  completion of the Work, Lender may apply any such Proceeds it
                  then or thereafter holds to the payment of the Indebtedness;
                  provided, however, that Lender, at its sole option, shall be
                  entitled to apply at any time all or any portion of insurance
                  Proceeds it then holds to the curing of any Event of Default
                  under this Deed of Trust, the Note or any other Loan Document.

(i)      Notwithstanding any other provision of this Section 2.04, if no Event
         of Default shall exist or be continuing (nor any matters have occurred
         which, after notice or passage of time or both, would constitute an
         Event of Default) and in Lender's reasonable judgment the cost of the
         Work is less than $1,000,000 and the Work can be completed in less than
         180 days, then Lender shall have no rights to apply for or receive the
         insurance Proceeds, provided that Borrower shall apply such insurance
         Proceeds solely to the prompt and diligent commencement and completion
         of such Work and notify Lender as to the foregoing.

                                       23
<PAGE>   28

         Section 2.05. Condemnation. Borrower shall notify Lender immediately of
the actual or threatened commencement of any proceedings for the condemnation or
taking of the Premises or any portion thereof and shall deliver to Lender copies
of any and all papers served in connection with such proceedings. Lender may
participate in such proceedings and Borrower shall deliver to Lender all
instruments requested by Lender to permit such participation. Lender is hereby
irrevocably appointed as Borrower's attorney-in-fact, coupled with an interest,
with exclusive power to collect, receive and retain the Proceeds of any such
condemnation and to make any compromise or settlement in connection with such
proceedings, subject to the provisions of this Deed of Trust. Borrower shall not
adjust, compromise, settle or enter into any agreement with respect to such
proceedings without the prior consent of Lender. All Proceeds of any
condemnation, or purchase in lieu thereof, of the Premises or any portion
thereof are hereby assigned to and shall be paid to Lender. Borrower hereby
authorizes Lender to collect and receive such Proceeds, to give proper receipts
and acquittances therefor and, in Lender's sole discretion, to apply such
Proceeds (less any cost to Lender of recovering and paying out such Proceeds,
including reasonable attorneys' fees and costs allocable to inspecting any
repair, restoration or rebuilding work and the plans and specifications
therefor) toward the payment of the Indebtedness or to the repair, restoration
or rebuilding of the Premises in the manner and subject to the conditions set
forth in Section 2.04(h). If the Proceeds are used to reduce the Indebtedness,
they shall be applied in the order provided in Section 2.04(d), without any
prepayment fee. Borrower shall promptly execute and deliver all instruments
requested by Lender for the purpose of confirming the assignment of the
condemnation Proceeds to Lender.

         Section 2.06. Impositions.

(a)      Borrower shall pay and discharge all Impositions prior to delinquency
         and shall furnish to Lender validated receipts or other evidence
         satisfactory to Lender showing the payment of such Impositions within
         15 days after the same would otherwise have become delinquent.
         Borrower's obligation to pay Impositions pursuant to this Deed of Trust
         shall include, to the extent permitted by applicable law, taxes
         resulting from future changes in law which impose upon Trustee or
         Lender an obligation to pay any property taxes or other Impositions or
         which otherwise adversely affect Trustee's or Lender's interests.
         Should Borrower default in the payment of any Impositions, Lender may
         (but shall not be obligated to) pay such Impositions or any portion
         thereof and Borrower shall reimburse Lender on demand for all such
         Advances.

(b)      Borrower shall not be required to pay, discharge or remove any
         Imposition so long as Borrower contests in good faith such Imposition
         or the validity, applicability or amount thereof by an appropriate
         legal proceeding which operates to prevent the collection of such
         amounts and the sale of the Mortgaged Property or any portion thereof;
         provided, however, that prior to the date on which such Imposition
         would otherwise have become delinquent Borrower shall have (i) given
         Lender prior notice of such contest and (ii) deposited with Lender, and
         shall deposit such additional amounts as are necessary to keep on
         deposit at all times, an amount

                                       24
<PAGE>   29

         equal to at least 110 per cent of the total of (A) the balance of such
         Imposition then remaining unpaid and (B) all interest, penalties, costs
         and charges accrued or accumulated thereon. Any such contest shall be
         prosecuted with due diligence, and Borrower shall promptly pay the
         amount of such Imposition as finally determined, together with all
         interest and penalties payable in connection therewith. Lender shall
         have full power and authority to apply any amount deposited with Lender
         under this Section 2.06(b) to the payment of any unpaid Imposition to
         prevent the sale or forfeiture of the Mortgaged Property for
         non-payment thereof. Lender shall have no liability, however, for
         failure to so apply any amount deposited unless Borrower requests the
         application of such amount to the payment of the particular Imposition
         for which such amount was deposited. Any surplus retained by Lender
         after payment of the Imposition for which a deposit was made shall be
         repaid to Borrower unless an Event of Default shall have occurred under
         the provisions of this Deed of Trust, in which case said surplus may be
         retained by Lender to be applied to the Indebtedness. Notwithstanding
         any provision of this Section 2.06(b) to the contrary, Borrower shall
         pay any Imposition which it might otherwise be entitled to contest if,
         in the reasonable opinion of Lender, the Mortgaged Property is in
         jeopardy or in danger of being forfeited or foreclosed. If Borrower
         refuses to pay any such Imposition, Lender may (but shall not be
         obligated to) make such payment and Borrower shall reimburse Lender on
         demand for all such Advances. Additionally, in such event, if Lender is
         prevented by law or judicial or administrative order from paying such
         Imposition, then Lender, at its option, may declare the entire
         Indebtedness immediately due and payable.

         Section 2.07. Deposits. Borrower shall deposit with Lender, monthly, on
the due date of each monthly installment under the Note, 1/12th of the annual
charges (as estimated by Lender) for Impositions, and, if required by Lender,
1/12th of the annual charges for rent (if Borrower is lessee of an interest in
the Mortgaged Property). If required by Lender, Borrower shall also deposit with
Lender, simultaneously with such monthly deposits and/or the execution of this
Deed of Trust, a sum of money which together with such monthly deposits will be
sufficient to make the payment of each such charge at least 30 days prior to the
date initially due. Should such charges not be ascertainable at the time any
deposit is required to be made, the deposit shall be made on the basis of the
charges for the prior year or payment period, as reasonably estimated by Lender.
When the charges are fixed for the then current year or period, Borrower shall
deposit any deficiency on demand. All funds deposited with Lender shall be held
without interest (unless the payment of interest thereon is required under
applicable law), may be commingled with Lender's other funds, and shall be
applied in payment of the foregoing charges when and as payable provided that no
Event of Default shall have occurred. Should an Event of Default occur, the
funds so deposited may be applied in payment of the charges for which such funds
shall have been deposited or to the payment of the Indebtedness or any other
charges affecting the Mortgaged Property, as Lender in its sole discretion may
determine, but no such application shall be deemed to have been made by
operation of law or otherwise until actually made by Lender as herein provided.
Borrower shall furnish Lender with bills and all other documents necessary

                                       25
<PAGE>   30

for the payment of the foregoing charges at least 15 days prior to the date on
which each payment thereof shall first become due.

         Section 2.08. Mortgage Taxes. Borrower shall pay any and all taxes,
charges, filing, registration and recording fees, excises and levies imposed
upon Lender by reason of its ownership of, or measured by amounts payable under,
the Note, this Deed of Trust or any other Loan Document (other than income,
franchise and doing business taxes), and shall pay all stamp taxes and other
taxes required to be paid on the Note or the other Loan Documents. If Borrower
fails to make such payment within five days after notice thereof from Lender,
Lender may (but shall not be obligated to) pay the amount due, and Borrower
shall reimburse Lender on demand for all such Advances. If applicable law
prohibits Borrower from paying such taxes, charges, filing, registration and
recording fees, excises, levies, stamp taxes or other taxes, then Lender may
declare the Indebtedness then unpaid to be immediately due and payable. In such
event, no prepayment fee shall be charged.

         Section 2.09.     Loan Documents Authorized.

(a)      The execution and delivery of this Deed of Trust, the Note and the
         other Loan Documents have been duly authorized and there is no
         provision in Borrower's organizational documents, as amended, requiring
         further consent for such action by any other person or entity.

(b)      Borrower is duly organized, validly existing and in good standing under
         the laws of the state of its formation.

(c)      Borrower has all necessary franchises, licenses, authorizations,
         registrations, permits and approvals and full power and authority to
         own and lease its properties, including the Mortgaged Property, and
         carry on its business as now conducted in each jurisdiction where
         Borrower conducts its business.

(d)      The execution and delivery of and performance of its obligations under
         the Loan Documents (i) will not result in Borrower being in default
         under any provision of its organizational documents, as amended, any
         court order, or any mortgage, deed of trust or other agreement to which
         it is a party and (ii) do not require the consent of or any filing with
         any governmental authority.

(e)      All necessary and required actions have been duly taken by and on
         behalf of Borrower to make and constitute the Loan Documents, and the
         Loan Documents constitute, legal, valid and binding obligations
         enforceable in accordance with their respective terms, subject only to
         the application of bankruptcy and other laws affecting the rights of
         creditors generally.

                                       26
<PAGE>   31

         Section 2.10. Maintenance of Existence. So long as it owns the
Mortgaged Property, Borrower shall (or shall enforce its rights under the
Primary Lease to cause [FCH/SH Leasing] [FCH/SH Leasing II] to) do all things
necessary to preserve and keep in full force and effect its existence,
franchises, licenses, authorizations, registrations, permits and approvals under
the laws of the state of its formation and the State, and shall comply with all
regulations, rules, ordinances, statutes, orders and decrees of any governmental
authority or court now or hereafter applicable to Borrower or, to the Mortgaged
Property or any portion thereof.

         Section 2.11. Payment of Liens. Borrower shall pay when due all
payments and charges due under or in connection with any liens and encumbrances
on and security interests in the Mortgaged Property or any portion thereof, all
rents and charges under any ground leases and other leases forming a part of the
Mortgaged Property, and all claims and demands of mechanics, materialmen,
laborers and others which, if unpaid, might result in or permit the creation of
a lien on the Mortgaged Property or any portion thereof, and shall cause the
prompt (but in no event later than 30 days after imposition), full and
unconditional discharge of all liens imposed on or against the Mortgaged
Property or any portion thereof. Borrower shall do or cause to be done, at the
sole cost of Borrower, everything necessary to fully preserve the initial
priority of the lien of this Deed of Trust. If Borrower fails to make any such
payment or if a lien attaches to the Mortgaged Property or any portion thereof,
Lender may (but shall not be obligated to) make such payment or discharge such
lien and Borrower shall reimburse Lender on demand for all such Advances.
Notwithstanding the foregoing, Borrower shall not be in default for failure to
pay or discharge a mechanic's or materialman's lien asserted against the
Mortgaged Property if, and so long as, (a) Borrower shall have notified Lender
of same within five (5) days of obtaining actual knowledge thereof; (b) Borrower
shall diligently and in good faith contest the same by appropriate legal
proceedings which shall operate to prevent the enforcement or collection of the
same and the sale of the Mortgaged Property or any part thereof, to satisfy the
same; (c) Borrower shall have furnished to Lender a cash deposit, or an
indemnity bond satisfactory to Lender with a surety satisfactory to Lender, in
the amount of the mechanic's or materialman's lien claim, plus a reasonable
additional sum to pay all costs, interest and penalties that may be imposed or
incurred in connection therewith, to assure payment of the matters under contest
and to prevent any sale or forfeiture of the Mortgaged Property or any part
thereof; (d) Borrower shall promptly upon final determination thereof pay the
amount of any such claim so determined, together with all costs, interest and
penalties which may be payable in connection therewith; (e) the failure to pay
the mechanic's or materialman's lien claim does not constitute a default under
any other deed of trust, mortgage or security interest covering or affecting any
part of the Mortgaged Property; and (f) notwithstanding the foregoing, Borrower
shall immediately upon request of Lender pay any such claim notwithstanding such
contest, if in the opinion of Lender, the Mortgaged Property or any part thereof
or interest therein may be in danger of being sold, forfeited, foreclosed,
terminated, canceled or lost.

         Section 2.12. Costs of Defending and Upholding the Lien. Lender and, to
the extent authorized by Lender, Trustee may, after notice to Borrower, (a)
appear in and defend any action or

                                       27
<PAGE>   32

proceeding, in the name and on behalf of either Lender or Borrower, in which
Trustee or Lender is named or which Lender in its sole discretion determines may
adversely affect the Mortgaged Property, this Deed of Trust, the lien hereof or
any other Loan Document; and (b) institute any action or proceeding which Lender
in its sole discretion determines should be instituted to protect the interest
or rights of Lender or Trustee's interest in the Mortgaged Property or under
this Deed of Trust or any other Loan Document, including, without limitation,
foreclosure proceedings. Borrower agrees to bear and shall pay or reimburse
Trustee and Lender on demand for all Advances and expenses (including reasonable
attorneys' fees) relating to or incurred by Lender in connection with any such
action or proceeding.

         Section 2.13. Costs of Enforcement. Borrower agrees to bear and shall
pay or reimburse Trustee and Lender on demand for all Advances and expenses
(including reasonable attorneys' and appraisers' fees and the expenses and
reasonable fees of any receiver or similar official) of or incidental to the
collection of the Indebtedness, any foreclosure of this Deed of Trust or any
other Loan Document, any enforcement, compromise or settlement of this Deed of
Trust, any other Loan Document or the Indebtedness, or any defense or assertion
of the rights or claims of Trustee or Lender in respect of any thereof, by
litigation or otherwise.

         Section 2.14. Interest on Advances and Expenses. All Advances made and
any reasonable expenses incurred at any time by Trustee or Lender pursuant to
the provisions of this Deed of Trust or the other Loan Documents or under
applicable law shall be secured by this Deed of Trust as part of the
Indebtedness, with equal rank and priority. All such Advances and expenses shall
bear interest at the Default Rate from the date that each such Advance or
expenses is made or incurred to the date of repayment and all such Advances and
expenses with interest thereon shall be payable to Lender on demand.

         Section 2.15. Indemnification. Borrower shall indemnify and hold
Trustee and Lender and their respective directors, officers, employees and
agents harmless from and against and reimburse them for all Losses which may be
imposed upon, asserted against, or incurred or paid by any of them (a) by reason
of, on account of or in connection with any act or occurrence relating to the
Mortgaged Property or any bodily injury, death, other personal injury or
property damage occurring in, upon or in the vicinity of the Premises from any
cause whatsoever, (b) as a result of the failure of Borrower to perform any of
its obligations under any of the Loan Documents, or (c) on account of any
transaction otherwise arising out of or in any way connected with the Mortgaged
Property, this Deed of Trust or the Indebtedness.

         Section 2.16. Financial Statements; Records. Borrower shall keep
adequate books and records of account in accordance with generally accepted
accounting principles ("GAAP"), or in accordance with other methods acceptable
to Lender in its reasonable discretion, consistently applied, and shall furnish
to Lender:

                                       28
<PAGE>   33

(a)      all annual operating statements of the Premises received from [FCH/SH
         Leasing] [FCH/SH Leasing II] or Sheraton detailing the total revenues
         received, total expenses incurred, total cost of all capital
         improvements, total debt service and total cash flow, and certified by
         [FCH/SH Leasing] [FCH/SH Leasing II] or Sheraton, as appropriate, in
         the form received by Borrower, or if requested by Lender and to the
         extent available, an audited annual operating statement prepared and
         certified by an independent certified public accountant acceptable to
         Lender, within 120 days after the close of each Fiscal Year of
         Borrower;

(b)      an annual balance sheet and profit and loss statement of Borrower and
         Guarantor, in a form reasonably approved by Lender, prepared and
         certified by Borrower or Guarantor as applicable, and, such statements,
         if requested by Lender and to the extent available, shall be audited
         financial statements prepared and certified by an independent certified
         public accountant acceptable to Lender. All statements shall be
         delivered to Lender within 120 days after the close of each Fiscal Year
         of Borrower;

(c)      annual operating budgets and management plans presented on a monthly
         basis consistent with the annual operating statements described above
         for the Premises, including cash flow projections for the upcoming
         year, and all proposed capital replacements and improvements on or
         before February 1 of each Fiscal Year;

(d)      an annual occupancy and average daily rate statement detailing the
         occupancy rates and average daily room rates to be prepared and
         certified by Borrower in a form approved by Lender, within 120 days
         after the end of each Fiscal Year of Borrower;

(e)      an annual FF&E budget which will be submitted by Borrower to Lender, no
         later than December 30 of each loan year; and

(f)      upon request from Lender, the following:

         (i)      such other financial or management information as may, from
                  time to time, be reasonably required by Lender and in form and
                  substance reasonably satisfactory to Lender; and,

         (ii)     Borrower's books and records regarding the Premises for
                  examination, review, copying and audit by Lender or its
                  auditors during normal business hours and convenient
                  facilities for such examination review, copying and audit of
                  Borrower's books and records of account.

                                       29
<PAGE>   34

(g)      Borrower's agreements as set forth in this Section 2.16 constitute
         material inducements to Lender in making the loan secured by this Deed
         of Trust. Accordingly, in the event Borrower fails to furnish any
         financial report or tax return required by this section as and when
         required, time being of the essence, then, in addition to all other
         remedies available to Lender under this Deed of Trust, Borrower agrees
         to pay Lender a late charge of $100.00 for each day or part thereof
         that any such financial report or tax return shall be overdue. The
         foregoing late charges and the costs and expenses of the auditor shall
         be due and payable to Lender upon demand and shall constitute a part of
         the Indebtedness.

         Section 2.17. Prohibition Against Conveyances and Encumbrances. Except
with the prior consent of Lender or as permitted by Section 3.01(b), Borrower
shall not and shall not permit others to convey, assign, sell, mortgage,
encumber, pledge, hypothecate, grant a security interest in, grant options with
respect to, or otherwise dispose of (directly or indirectly, voluntarily or
involuntarily, by operation of law or otherwise, and whether or not for
consideration or of record) all or any portion of any legal or beneficial
interest (a) in all or any portion of the Mortgaged Property (other than the
sale of goods used in the operation of a hotel business or replacement of
Equipment in the ordinary course of business) including the Leases; or (b) in
Borrower. All requests for Lender's consent under this Section 2.17 shall be on
a form previously approved by Lender and shall be accompanied by the payment of
Lender's standard processing fee for such transactions then in effect not to
exceed one percent (1%) of the then outstanding balance of the Loan. Lender's
consent to any of the foregoing actions, if given (in Lender's sole discretion),
may be conditioned upon a change in the interest rate, maturity date,
amortization period or other terms under the Note, the payment of a transfer fee
not to exceed one percent (1%) of the then outstanding balance of the Loan
and/or any other requirements of Lender. In addition to the standard processing
fee and the transfer fee referred to in this Section 2.17, Borrower agrees to
bear and shall pay or reimburse Lender on demand for all reasonable expenses
(including reasonable attorneys' fees, title search costs, and title insurance
endorsement premiums) incurred by Lender in connection with the review, approval
and documentation of any such transaction.

         Notwithstanding the prohibition against conveyances and encumbrances
set forth in this Section 2.17, Lender will permit Borrower the right to a
one-time sale, transfer or assignment in whole (but not in part) of its interest
in the Mortgaged Property, without modification of the terms of the Loan,
provided each and every one of the following conditions is satisfied:

(a)      At least thirty (30) days prior to such transfer, Borrower shall have
         provided Lender with written notice of the proposed transfer along with
         the name(s), address(es) and organizational documents of the proposed
         purchaser and principals of the proposed purchaser. Additionally,
         Borrower shall furnish to Lender along with such notice the following:
         (i) detailed and complete financial statements of the proposed
         purchaser and principals of proposed purchaser, (ii) information with
         respect to the business and business experience of the proposed
         purchaser and the proposed purchaser's principals' experience in the
         ownership and operation of

                                       30
<PAGE>   35

         properties similar to the Mortgaged Property and other commercial real
         estate, (iii) evidence that the Mortgaged Property as of the proposed
         date of transfer of title and thereafter will be managed by a hotel
         management company and under a hotel management agreement meeting the
         requirements of Section 2.17(d) below, (iv) the terms and conditions of
         the proposed sale and a copy of the purchase and sales agreement, and
         (v) such other information as Lender may request to permit it to
         determine the creditworthiness and management abilities of the proposed
         transferee, its management plan for the Mortgaged Property and the
         proposed transferee's status as a "Qualified Real Estate Investor".

(b)      The Loan must be current in all respects and may not be in default
         either as of the date of the notice given Lender under subparagraph (a)
         above or thereafter through the date of transfer of title to the
         Mortgaged Property nor may any event have occurred which, after notice
         or passage of time or both, would constitute an Event of Default under
         the Loan.

(c)      The purchaser is a "Qualified Real Estate Investor".

(d)      The Mortgaged Property as of the date of transfer and thereafter must
         be managed by Sheraton or another hotel management company reasonably
         approved by Lender under the Management Agreement or another hotel
         management agreement reasonably satisfactory to Lender. The flag under
         which the Mortgaged Property is operated shall remain the same or, if
         changed, be satisfactory to Lender.

(e)      The proposed purchaser of the Mortgaged Property shall assume the Loan
         under documents in form and substance satisfactory to Lender, subject
         to the non-recourse provisions of the Loan Documents existing as of the
         date of the closing of the sale of the Mortgaged Property.
         Additionally, at the time of the assumption of the Loan, the proposed
         purchaser shall furnish to Lender an environmental indemnity in form
         and substance satisfactory to Lender from a financially responsible
         person or entity approved by the Lender. Borrower and the proposed
         purchaser and any other person as reasonably required by Lender's
         counsel shall also execute financing statements and such other
         documents as Lender's counsel shall reasonably require in order to
         effectuate the transaction as contemplated by this Section 2.17 and
         shall furnish evidence of fire and extended coverage insurance as
         required by the Loan Documents.

(f)      Along with the notice of transfer under subparagraph (a) above,
         Borrower shall pay to Lender a fee in the amount of one percent (1%) of
         the then outstanding balance of the Loan in cash or certified funds.
         Such fee shall be retained by Lender whether or not the transfer occurs
         except in the situation described in the succeeding sentence and is
         being paid in order to induce Lender to allow the proposed purchaser to
         assume the obligations of the Borrower under the Loan Documents and to
         release Borrower from liability thereunder for all periods from and
         after the

                                       31
<PAGE>   36

         transfer in accordance with these provisions. Such fee shall be
         returned to Borrower only if Lender disapproves of such transfer as not
         meeting the requirements of this Section 2.17.

(g)      The cash flow from the Mortgaged Property (i.e., gross rents received
         less property taxes, insurance and a reasonable reserve for capital
         improvements, but excluding principal and interest payments on the
         Loan, depreciation and other non-cash charges and proceeds from
         casualty policies) for the 12 month period ending on the last day of
         the month which is two months prior to the month of the anticipated
         date of such transfer of title shall be not less than 1.65X times the
         required payments of principal and interest on the Loan for the same
         twelve month period as determined by Lender in its sole discretion from
         financial statements for the Mortgaged Property in form and substance
         satisfactory to Lender and submitted to Lender.

(h)      The unpaid principal balance of the Loan shall be not more than sixty
         percent (60%) of the appraised value of the Mortgaged Property
         according to a current appraisal furnished to and satisfactory to
         Lender and prepared by an MAI appraiser acceptable to Lender.

(i)      Borrower shall pay all of Lender's reasonable outside costs and
         expenses incurred in connection with the proposed sale of the Mortgaged
         Property whether or not the sale actually occurs including, without
         limitations, attorneys' fees, recording charges, title charges and any
         endorsement to Lender's title policy that Lender's counsel may require.

         Section 2.18. Estoppel Certificates. Within 10 Business Days of a
request by Lender, Borrower shall furnish to Lender a duly acknowledged written
statement confirming the amount of the outstanding Indebtedness, the terms of
payment and maturity date of the Note, the date to which interest has been paid,
and whether any offsets or defenses exist against the Indebtedness. If any such
offsets or defenses are alleged to exist, the nature thereof shall be set forth
in detail. Borrower shall also furnish to Lender within 30 days of its request
therefor tenant estoppel letters from such tenants of the Premises as Lender may
require, but such requests as to any one tenant shall not be made more often
than once in a calendar year period.

         Section 2.19. Assignment of Leases and Property Income.

(a)      Borrower hereby absolutely and unconditionally assigns and transfers to
         Lender the Leases and the Property Income. Borrower shall not otherwise
         assign, transfer or encumber in any manner the Leases or the Property
         Income or any portion thereof. Borrower shall have a license to collect
         and use the Property Income as the same becomes due and payable,
         revocable by Lender, so long as no Event of Default has occurred, but
         may not collect any Property Income more than 30 days in advance of the
         date the same becomes due. The assignment in this Section 2.19 shall
         constitute an absolute and present assignment of the Leases and the
         Property Income, and not an additional assignment for security, and the
         existence or exercise of the

                                       32
<PAGE>   37

         Borrower's revocable license to collect Property Income shall not
         operate to subordinate this assignment to any subsequent assignment.
         The exercise by Lender of any of its rights or remedies under this
         Section 2.19 shall not be deemed or construed to make Lender a
         mortgagee-in-possession. The assignments contained in this Section
         2.19(a) shall automatically terminate and be null and void ab initio
         upon the repayment of the Indebtedness or the release of this -- ------
         Deed of Trust.

(b)      Borrower shall furnish Lender with executed copies of all Leases within
         10 days after execution thereof. All proposed Leases and renewals of
         existing Leases shall be at rental rates and on terms comparable to
         existing local market rates and terms and shall be arms-length
         transactions with bona fide, independent third party tenants; provided,
         however, that renewals of existing Leases may be made with the existing
         parties thereto and upon substantially the same terms as such existing
         Leases. All new Leases shall provide that they are subordinate to this
         Deed of Trust and that the lessee agrees to attorn to Lender. All
         proposed Leases and renewals of existing Leases (other than Leases
         described in Subsection 2.19(d)) shall be subject to the prior review
         and reasonable approval of Lender and its counsel, at Borrower's
         expense.

(c)      Borrower shall perform all obligations as lessor under all Leases and
         shall enforce all of the terms, covenants and conditions contained in
         upon the part of the lessee thereunder to be performed or observed.
         Additionally, Borrower shall not take any action which would cause any
         Lease to cease to be in full force and effect. Except with the prior
         consent of Lender, not to be unreasonably withheld, Borrower shall not
         (i) cancel, terminate (other than exercising Borrower's rights to
         terminate any Lease upon a lessee's default thereunder and subject to
         the terms of Section 2.25(d) hereof), surrender, sublet or assign any
         Lease or consent to any cancellation, termination, surrender,
         subletting or assignment thereof; (ii) amend, modify or subordinate any
         Lease to any mortgage, deed of trust or other security interest that is
         subordinate to this Deed of Trust; (iii) enter into any new Lease
         (except as permitted in Section 2.19(d) below); (iv) waive any default
         under or breach of any Lease; (v) consent to or accept any prepayment
         or discount of rent or advance rent under any Lease; (vi) other than
         exercising Borrower's rights to terminate any Lease upon a lessee's
         default thereunder (and subject to the terms of Section 2.25(d)
         hereof), take any other action in connection with any Lease which may
         impair or jeopardize the validity of such Lease or the Lender's
         interest therein; or (vii) alter, modify or change the terms of any
         guaranty, letter of credit or other credit support with respect to any
         of the Leases or cancel or terminate such guaranty, letter of credit or
         other credit support without the prior written consent of Lender.

(d)      Notwithstanding Section 2.19(b), Lender's prior consent shall not be
         required for entering into any new Lease covering 1,000 square feet of
         net rentable area or less, or renewals thereof, provided that (i) the
         Lease or renewal thereof represents an arm's-length transaction and
         provides for the payment of market rents, and (ii) neither the Lease
         nor renewal thereof nor the

                                       33
<PAGE>   38

         activity of the lessee will violate any provision of any other Lease or
         restriction or covenant affecting the Premises or this Deed of Trust or
         any other Loan Document, including Section 2.20(b) hereof. Except for
         Leases to which Lender's consent is not required, notice and copies of
         which shall be furnished only upon request, Borrower shall give Lender
         notice of any Lease or renewal thereof described in this Section
         2.19(d), together with a fully-executed and complete copy of such
         Lease, not later than 10 days after the execution thereof.

(e)      In addition to the foregoing, Borrower shall comply with all terms and
         provisions of the Assignment.

         Section 2.20.  Environmental Matters; Warranties; Notice; Indemnity.

(a)      Borrower represents and warrants to Lender, based upon an environmental
         assessment of the Premises and the Equipment and information that
         Borrower knows, as follows:

         (i)      Borrower has not installed, used, generated, manufactured,
                  produced, stored, released, discharged or disposed of in, on,
                  under or about the Premises, or transported to or from any
                  portion of the Premises, any Hazardous Substance or allowed
                  any other person or entity to do so, except under conditions
                  permitted by applicable Environmental Laws;

         (ii)     there are no Hazardous Substances or underground storage tanks
                  in, on, or under or about the Premises, except those that are
                  both (A) in compliance with Environmental Laws and with
                  permits issued pursuant thereto, if necessary, and (B) fully
                  disclosed to Lender in writing pursuant to the written reports
                  resulting from environmental assessments of the Mortgaged
                  Property delivered to Lender (the "Environmental Report");

         (iii)    there are no past, present or threatened Releases of any
                  Hazardous Substance in, on, under or about the Premises except
                  as defined in the Environmental Report;

         (iv)     there is no condition known to Borrower which is expected to
                  result in any Release of Hazardous Substances migrating to the
                  Premises except as described in the Environmental Report;

         (v)      there is no past or present non-compliance with Environmental
                  Laws, or with permits issued pursuant thereto, in connection
                  with the Premises or the Equipment except as described in the
                  Environmental Report;

                                       34
<PAGE>   39

         (vi)     Borrower does not know of, and has not received, any written
                  or oral notice or other communication from any person or
                  entity (including, but not limited to, a governmental entity)
                  relating to Hazardous Substances or Remediation thereof, of
                  possible liability of any person or entity pursuant to any
                  Environmental Law, other environmental conditions in
                  connection with the Premises or Equipment, or any actual or
                  potential administrative or judicial proceedings in connection
                  with any of the foregoing; and,

         (vii)    Borrower has truthfully and fully provided to Lender, in
                  writing, any and all information relating to any presence or
                  Release of Hazardous Materials in, on, under and about the
                  Premises that is known by Borrower and that is contained in
                  Borrower's files and records, including but not limited to any
                  reports relating to Hazardous Substances in, on, under or
                  about the Premises and/or to the environmental condition of
                  the Premises.

(b)      Borrower shall not install, use, generate, manufacture, produce, store,
         Release, discharge or dispose of on, under or about the Premises, or
         transport to or from any portion of the Premises, any Hazardous
         Substance or allow any other person or entity to do so, except under
         conditions permitted by applicable Environmental Laws. Additionally,
         except with the prior written consent of Lender, no portion of the
         Premises shall be leased, used or occupied for dry cleaning operations
         (except for drop off dry cleaning operations in the ordinary course of
         business) or the storage of any chemicals used in the dry cleaning
         process.

(c)      Borrower shall keep and maintain the Premises in compliance with, and
         shall not cause or permit the Premises to be in violation of,
         applicable Environmental Laws.

(d)      Borrower shall promptly provide notice to Lender of:

         (i)      any proceeding, investigation or inquiry commenced by any
                  governmental authority with respect to the presence of any
                  Hazardous Substance on, under or about the Premises or the
                  migration of any Hazardous Substance to or from adjoining
                  property to which Borrower has knowledge or has received
                  notice;

         (ii)     all claims made or threatened by any person or entity against
                  Borrower, or to Borrower's knowledge, any other party
                  occupying the Premises or any portion thereof, or the
                  Premises, relating to any loss or injury allegedly resulting
                  from any Hazardous Substance; and

         (iii)    the discovery of any occurrence or condition on the Premises
                  or on any real property adjoining or in the vicinity of the
                  Premises, of which Borrower becomes aware, which might cause
                  the Premises or any portion thereof to be in violation of any
                  Environmental

                                       35
<PAGE>   40

                  Law or subject to any restriction on ownership, occupancy,
                  transferability or use under any Environmental Law
                  (collectively, an "Environmental Violation").

(e)      Lender and, to the extent authorized by Lender, Trustee may join and
         participate in, as a party if Lender so determines, any legal or
         administrative proceeding or action concerning the Premises or
         Equipment under any Environmental Law. Borrower agrees to bear and
         shall pay or reimburse Lender on demand for all Advances and expenses
         (including reasonable attorneys' fees) relating to or incurred by
         Lender in connection with any such action or proceeding.

(f)      Borrower shall indemnify and hold Trustee and Lender and their
         respective directors, officers, employees and agents harmless from and
         against any and all claims, demands, liabilities, losses, damages,
         judgments, penalties, costs and expenses (including reasonable
         attorneys' fees) directly or indirectly arising out of or attributable
         to a breach of any warranty, representation or other provision
         contained in this Section 2.20 including, without limitation, (i) all
         actual and consequential damages, (ii) the costs of any required
         Remediation, and (iii) the costs of the preparation and implementation
         of any plans for Remediation, closure or other required plans. This
         indemnity shall survive the satisfaction, release or extinguishment of
         the lien of this Deed of Trust including any extinguishment of such
         lien by foreclosure or deed in lieu thereof. Notwithstanding anything
         to the contrary contained herein, the indemnification provided for
         herein shall survive payment of the Note, but shall become null and
         void and of no further force and effect in the event Lender or any
         other party obtains title to the Mortgaged Property through foreclosure
         or exercise of power of sale under this Deed of Trust or deed-in-lieu
         of foreclosure or exercise of power of sale.

         Section 2.21.  Environmental Matters; Remedial Work.

(a)      If any investigation, site monitoring, containment, cleanup, removal,
         restoration or other Remediation of any kind or nature (collectively,
         the "Remedial Work") is required to be performed by Borrower under any
         applicable Environmental Law because of or in connection with the
         current or future presence, suspected presence, release or suspected
         release of a Hazardous Substance into the air, soil, ground water,
         surface water, or soil vapor on, under or about the Premises or any
         portion thereof, Borrower shall promptly commence and diligently
         prosecute to completion all such Remedial Work. In all events, such
         Remedial Work shall be commenced within 45 days after any demand
         therefor by Lender or such shorter period as may be required under any
         applicable Environmental Law.

(b)      All Remedial Work shall be performed by contractors, and under the
         supervision of a consulting engineer, each approved in advance by
         Lender. All costs and expenses of such Remedial Work and Lender's
         monitoring or review of such Remedial Work (including reasonable
         attorneys' fees) shall be paid by Borrower. If Borrower does not timely
         commence

                                       36
<PAGE>   41

         and diligently prosecute to completion the Remedial Work, Lender may
         (but shall not be obligated to) cause such Remedial Work to be
         performed. Borrower agrees to bear and shall pay or reimburse Lender on
         demand for all Advances and expenses (including reasonable attorneys'
         fees) relating to or incurred by Lender in connection with monitoring,
         reviewing or performing any Remedial Work.

(c)      Except with Lender's prior consent (not to be unreasonably withheld),
         Borrower shall not commence any Remedial Work or enter into any
         settlement agreement, consent decree or other compromise relating to
         any Hazardous Substances or Environmental Laws which might, in Lender's
         sole judgment, impair the value of Lender's security hereunder.
         Lender's prior consent shall not be required, however, if the presence
         or threatened presence of Hazardous Substances on, under or about the
         Premises poses an immediate threat to the health, safety or welfare of
         any person or is of such a nature that an immediate remedial response
         is necessary, and it is not possible to obtain Lender's prior consent.
         In such event Borrower shall notify Lender as soon as practicable of
         any action taken.

         Section 2.22.  Environmental Matters; Inspection.

(a)      Lender shall have the right at all reasonable times to enter upon and
         inspect all or any portion of the Premises, provided that Lender makes
         an appointment through the general manager of the hotel after
         reasonable notice and that such inspections shall not unreasonably
         interfere with the normal business operations of the Premises. Lender
         may select a consulting engineer to conduct and prepare reports of such
         inspections. The inspection rights granted to Lender in this Section
         2.22 shall be in addition to, and not in limitation of, any other
         inspection rights granted to Lender in this Deed of Trust, and shall
         expressly include the right to conduct reasonable soil borings and
         other customary environmental tests, assessments and audits, so long as
         Lender restores the Mortgaged Property to its previous condition.

(b)      Borrower agrees to bear and shall pay or reimburse Lender on demand for
         all Advances and expenses (including reasonable attorneys' fees)
         relating to or incurred by Lender in connection with the inspections
         and reports described in this Section 2.22 in the following situations:

         (i)      If Lender has reasonable grounds to believe, at the time any
                  such inspection is ordered, that there exists an Environmental
                  Violation or that a Hazardous Substance is present on, under
                  or about the Premises or is migrating to or from adjoining
                  property, except under conditions permitted by applicable
                  Environmental Laws and not prohibited by any Loan Document;

         (ii)     if any such inspection reveals an Environmental Violation or
                  that a Hazardous Substance is present on, under or about the
                  Premises or is migrating to or from

                                       37
<PAGE>   42

                  adjoining property, except under conditions permitted by
                  applicable Environmental Laws and not prohibited by any Loan
                  Document; or

         (iii)    if an Event of Default exists at the time any such inspection
                  is ordered.

         Section 2.23. Management. At all times prior to the payment in full of
the Indebtedness, the Mortgaged Property shall be managed by Sheraton or another
management company satisfactory to Lender, and pursuant to the Management
Agreement or another management agreement reasonably satisfactory to Lender.
Such management agreement, and any leasing commissions agreement affecting the
Mortgaged Property, shall be subordinate to this Deed of Trust.

         Section 2.24. ERISA. As of the date hereof and throughout the term of
this Deed of Trust, (i) Borrower is not and will not be an "employee benefit
plan" as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA:
(ii) the assets of Borrower do not and will not constitute "plan assets" of one
or more such plans for purposes of Title I of ERISA: (iii) Borrower is not and
will not be a "governmental plan" within the meaning of Section 3(3) of ERISA;
(iv) transactions by or with Borrower are not and will not be subject to state
statutes applicable to Borrower regulating investments of fiduciaries with
respect to governmental plans; and (v) Borrower shall not engage in any
transaction which would cause any obligation, or action taken or to be taken,
hereunder (or the exercise by Lender of any of its rights under this Deed of
Trust, the Note, or the other Loan Documents) to be a non-exempt (under a
statutory or administrative class exemption) prohibited transaction under ERISA.
Borrower further agrees to deliver to Lender such certifications or other
evidence of compliance with the provisions of this Section 2.24 as Lender may
from time to time request.

         Section 2.25. Operating Agreements. In connection with the Operating
Agreements, Trustor acknowledges and agrees as follows:

(a)      no Operating Agreement shall be amended, modified, supplemented,
         restated or otherwise altered by Trustor, nor shall Trustor consent or
         otherwise acquiesce in any of the foregoing, without in each instance
         Beneficiary's prior written consent, which consent shall not be
         unreasonably withheld;

(b)      no Operating Agreement shall be terminated by Trustor unless such
         terminated Operating Agreement is replaced with a similar agreement
         upon terms and conditions, and with such third parties, as are
         reasonably acceptable to Lender;

(c)      Trustor will deliver to Beneficiary, at the same time received or sent
         by Trustor, copies of all notices, demands or requests sent or
         otherwise made by Trustor or any other Person under or pursuant to any
         Operating Agreement;

                                       38
<PAGE>   43

(d)      the term of any Operating Agreement shall not be extended or otherwise
         renewed by Trustor (unless pursuant to a right currently afforded
         Trustor thereunder) without in each instance Beneficiary's prior
         written approval, such approval not to be unreasonably withheld;

(e)      Trustor agrees to observe, perform and discharge all obligations,
         covenants and warranties required to be kept and performed by Trustor
         under the Operating Agreements; and

(f)      Trustor shall use best efforts to enforce or secure the performance of
         each and every material obligation, term, covenant, condition and
         agreement to be performed by any other party to any of the Operating
         Agreements.

         Section 2.26. Single-Purpose Entity. Borrower shall at all times be a
Single-Purpose Entity.

                                   ARTICLE III
                               Security Agreement

         Section 3.01. Warranties, Representations and Covenants of Borrower.
Borrower covenants, warrants, represents and agrees with and to Trustee and
Lender as follows:

(a)      This Deed of Trust constitutes a security agreement under the Code and
         serves as a fixture filing in accordance with the Code. This Deed of
         Trust creates a security interest in favor of Lender as secured party
         under the Code with respect to all property (specifically including the
         Collateral) included in the Mortgaged Property which is covered by the
         Code. The mention of any portion of the Mortgaged Property in a
         financing statement filed in the records normally pertaining to
         personal property shall not derogate from or impair in any manner the
         intention of Borrower and Lender hereby declared that all items of
         Collateral described in this Deed of Trust are part of the real
         property encumbered hereby to the fullest extent permitted by law,
         regardless of whether any such item is physically attached to the
         Improvements or whether serial numbers are used for the better
         identification of certain items. Specifically, the mention in any such
         financing statement of (i) the rights in or the Proceeds of any policy
         of insurance, (ii) any condemnation Proceeds, (iii) Borrower's interest
         in any Leases or Property Income, or (iv) any other item included in
         the Mortgaged Property, shall not be construed to alter, impair or
         impugn any rights of Lender as determined by this Deed of Trust or the
         priority of Lender's lien upon and security interest in the Mortgaged
         Property. Any such mention shall be for the protection of Lender in the
         event that notice of Lender's priority of interest as to any portion of
         the Mortgaged Property is required to be filed in accordance with the
         Code to be effective against or take priority over the interest of any
         particular class of persons, including the federal government or any
         subdivision or instrumentality thereof.

                                       39
<PAGE>   44

(b)      Except for the security interest granted by the Loan Documents,
         Borrower is and, as to portions of the Collateral to be acquired after
         the date hereof, will be the sole owner of the Collateral, free from
         any lien, security interest, encumbrance or adverse claim thereon of
         any kind whatsoever except Permitted Encumbrances. Borrower shall
         notify Lender of, and shall defend the Collateral against, all claims
         and demands of all persons at any time claiming the same or any
         interest therein. Notwithstanding anything to the contrary contained in
         the Loan Documents, Borrower shall have the right during the term of
         the Loan to secure the purchase of up to $300,000 of Equipment for the
         Mortgaged Property with secondary financing including equipment leases.

(c)      Except as otherwise provided in this Deed of Trust, Borrower shall not
         lease, sell, convey or in any manner transfer the Collateral without
         the prior consent of Lender.

(d)      The Collateral is not used or bought for personal, family or household
         purposes.

(e)      The Collateral shall be kept on or at the Premises, and Borrower shall
         not remove the Collateral from the Premises without the prior consent
         of Lender, except such portions or items of the Collateral as are
         consumed or worn out in ordinary usage, all of which shall be promptly
         replaced by Borrower with items of equal or greater value.

(f)      In the event of any change in name, identity or structure of Borrower,
         Borrower shall notify Lender thereof and promptly after request shall
         execute, file and record such Code forms as are necessary to maintain
         the priority of Lender's lien upon and security interest in the
         Collateral, and shall pay all reasonable expenses and fees in
         connection with the filing and recording thereof. If Lender shall
         require the filing or recording of additional Code forms or
         continuation statements, Borrower shall, promptly after request,
         execute, file and record such Code forms or continuation statements as
         Lender shall deem necessary (subject to Lender's right to sign such
         statements on behalf of Borrower as provided in Subsection 3.01(g)),
         and shall pay all reasonable expenses and fees in connection with the
         filing and recording thereof. If Lender shall initially pay such
         expenses, Borrower shall promptly reimburse Lender for the expenses.

(g)      Borrower hereby irrevocably appoints Lender as its attorney-in-fact,
         coupled with an interest, to execute in the name of and on behalf of
         Borrower any and all financing statements and continuations thereof and
         to file with the appropriate public office on its behalf and at its
         expense any financing or other statements signed only by Lender, as
         secured party, in connection with the Collateral covered by this Deed
         of Trust.

                                       40
<PAGE>   45

         Section 3.02. Financing Statements. A CARBON, PHOTOGRAPHIC OR OTHER
REPRODUCTION OF THIS DEED OF TRUST OR ANY FINANCING STATEMENT RELATING TO THIS
DEED OF TRUST SHALL BE SUFFICIENT AS A FINANCING STATEMENT.

         Section 3.03. Addresses. The mailing address of Borrower and the
address of Lender from which information concerning the security interest
granted hereby may be obtained are set forth on the Cover Sheet of this Deed of
Trust. Borrower maintains its sole place of business or its chief executive
office at the address shown on said Cover Sheet, and Borrower shall immediately
notify Lender in writing of any change in said place of business or chief
executive office.

                                   ARTICLE IV
                              Default and Remedies

         Section 4.01. Events of Default. Each of the following shall, after the
expiration of any notice and cure period provided for in the Note, constitute an
Event of Default under this Deed of Trust, the Note and the other Loan
Documents:

(a)      failure in the payment of any amount due as and when due under this
         Deed of Trust, the Note or any other Loan Document;

(b)      failure to pay any Imposition as and when due or to maintain insurance
         as required by this Deed of Trust;

(c)      default in the due observance or performance of any term, covenant or
         condition contained in this Deed of Trust, the Note or any other Loan
         Document;

(d)      if any representation made herein or in any other Loan Document shall
         prove to be untrue in any material respect;

(e)      violation of any of the covenants set forth in Section 2.17 with
         respect to conveyances, sales, encumbrances or other prohibited
         dispositions of the Mortgaged Property or Borrower or any portion
         thereof or any interest therein;

(f)      violation of any of the covenants set forth in Section 2.19(a) with
         respect to the further assignment, transfer or encumbrance by Borrower
         of the Leases or the Property Income or any portion thereof;

(g)      violation of any of the covenants set forth as items (i) through (vi)
         of Section 2.19(c) with respect to certain actions concerning Leases
         which shall not be taken by Borrower without the prior consent of
         Lender;

                                       41
<PAGE>   46

(h)      if Borrower, any general partner of Borrower or Guarantor consents to
         the filing of, or commences or consents to the commencement of, any
         Bankruptcy Proceeding with respect to Borrower or Guarantor;

(i)      if any Bankruptcy Proceeding shall have been filed against Borrower,
         any general partner of Borrower or Guarantor and the same is not
         withdrawn, dismissed, canceled or terminated within 90 days of such
         filing;

(j)      if Borrower, any general partner of Borrower or Guarantor is
         adjudicated bankrupt or insolvent or a petition for reorganization of
         Borrower or any such general partner or Guarantor is granted;

(k)      if a receiver, liquidator or trustee of Borrower, any general partner
         of Borrower or Guarantor or of any of the properties of Borrower or any
         such general partner or Guarantor shall be appointed;

(l)      if Borrower, any general partner of Borrower or Guarantor shall make an
         assignment for the benefit of its creditors or shall admit in writing
         the inability to pay its debts generally as they become due;

(m)      except as otherwise permitted herein, if Borrower, any general partner
         of Borrower, or Guarantor shall die or shall institute or cause to be
         instituted any proceeding for the termination or dissolution of
         Borrower or any such general partner or Guarantor;

(n)      if a default or event of default shall occur under any mortgage, deed
         of trust, encumbrance, lien or security agreement (except for equipment
         leases) encumbering all or any portion of the Mortgaged Property which
         is subordinate or superior to the lien of this Deed of Trust or if any
         party under any such instrument shall commence a foreclosure or other
         collection or enforcement action in connection therewith, provided,
         however, that this provision shall not be deemed to be a waiver of the
         provisions of Section 2.17 prohibiting further encumbrances or of any
         other provision of this Deed of Trust, it being understood that it is
         an event of default under this Deed of Trust to permit any further
         mortgage, encumbrance, lien or security agreement to encumber all or
         any portion of the Mortgaged Property except as expressly permitted
         herein;

(o)      except as permitted in this Deed of Trust, the actual or threatened
         alteration, demolition or removal of any of the Improvements without
         the prior consent of Lender, which shall not be unreasonably withheld;

                                       42
<PAGE>   47

(p)      damage to any of the Mortgaged Property in any manner which is not
         covered by insurance as a result of Borrower's failure to maintain
         insurance required in accordance with this Deed of Trust;

(q)      if a default shall occur under any of the Related Loan Documents;

(r)      default by [FCH/SH Leasing] [FCH/SH Leasing II] in the due observance
         or performance of any term, covenant or condition contained in any
         Operating Agreement or the Agreement Concerning Primary Lease Agreement
         without Borrower timely curing such default pursuant to its contractual
         rights to do so; or

(s)      default by Guarantor in the due observance or performance of any term,
         covenant or condition contained in any separate guaranty or separate
         indemnity agreement executed by Guarantor in connection with the Loan.

         In the event of a conflict between the provisions of this Section
4.01., and the provisions of the Note, the provisions of the Note shall control.

         Section 4.02. Remedies. Upon the occurrence of any Event of Default,
Lender may take such actions against Borrower and/or the Mortgaged Property or
any portion thereof as it deems advisable, subject to Section 11 of the Note, to
protect and enforce its rights against Borrower and in and to the Mortgaged
Property, without notice or demand except as set forth below. Any such actions
taken by Lender shall be cumulative and concurrent and may be pursued
independently, singly, successively, together or otherwise, at such time and in
such order as Lender may determine in its sole discretion, to the fullest extent
permitted by law, without impairing or otherwise affecting the other rights and
remedies of Lender permitted by law, equity or contract or as set forth herein
or in the other Loan Documents. All actions shall be subject to Section 11 of
the Note and may include the following:

(a)      Subject to any applicable provisions of the Note, Lender may declare
         the entire principal balance under the Note then unpaid, together with
         all accrued and unpaid interest thereon, and all other unpaid
         Indebtedness, to be immediately due and payable.

(b)      Lender may enter into or upon the Mortgaged Property, personally or by
         its agents, nominees or attorneys, and may dispossess Borrower and its
         agents and servants therefrom, and thereupon Lender at its sole
         discretion may: (i) use, operate, manage, control, insure, maintain,
         repair, restore and otherwise deal with all and every portion of the
         Mortgaged Property and conduct business thereon, in any case either in
         the name of Lender or in such other name as Lender shall deem best;
         (ii) complete any construction on the Mortgaged Property in such manner
         and form as Lender deems advisable; (iii) make alterations, additions,
         renewals, replacements and improvements to or on the Mortgaged
         Property; (iv) exercise all rights and

                                       43
<PAGE>   48

         powers of Borrower with respect to the Mortgaged Property, whether in
         the name of Borrower or otherwise, including the right to make, cancel,
         enforce or modify Leases, obtain and evict tenants, and demand, sue
         for, collect and receive all Property Income; and (v) apply the
         receipts of Property Income to the payment of the Indebtedness
         (including any prepayment fee payable under the Note) in such order as
         Lender shall determine in its sole discretion, after deducting
         therefrom all expenses (including reasonable attorneys' fees) incurred
         in connection with the aforesaid operations and all amounts necessary
         to pay the Impositions, insurance and other charges in connection with
         the Mortgaged Property, as well as just and reasonable compensation for
         the services of Lender, its agents, nominees and attorneys.

(c)      Subject to any applicable provisions of the Note, with or without
         entry, personally or by its agents, nominees or attorneys, Lender may
         require Trustee to sell all or any portion of the Mortgaged Property
         and all or any portion of Borrower's estate, right, title, interest,
         claim and demand therein and right of redemption thereof at one or more
         private or public sales in the manner and to the extent permitted by
         law, as an entirety or in parcels or portions, and Trustee shall have
         any statutory power of sale as may be provided by law in the State.

(d)      Subject to any applicable provisions of the Note, Lender may institute
         proceedings for the complete foreclosure of this Deed of Trust, in
         which case the Mortgaged Property may be sold for cash or upon credit,
         as an entirety or in parcels or portions.

(e)      Subject to any applicable provisions of the Note, Lender may institute,
         or require Trustee to institute, proceedings for the partial
         foreclosure of this Deed of Trust for the portion of the Indebtedness
         then due and payable, subject to the continuing lien of this Deed of
         Trust for the balance of the Indebtedness not then due.

(f)      Lender may institute, or require Trustee to institute, an action, suit
         or proceeding at law or in equity for the specific performance of any
         covenant, condition or agreement contained herein or in the Note or any
         other Loan Document, or in aid of the execution of any power granted
         hereunder or for the enforcement of any other appropriate legal or
         equitable remedy.

(g)      Lender and Trustee shall have the rights and may take such actions as
         are permitted by the laws of the State.

(h)      Subject to any applicable provisions of the Note, Lender may recover
         judgment on the Note, either before, during or after any proceedings
         for the foreclosure or enforcement of this Deed of Trust.

(i)      Lender may secure the appointment of a receiver, trustee, liquidator or
         similar official of the Mortgaged Property or any portion thereof, and
         Borrower hereby consents and agrees to such

                                       44
<PAGE>   49

         appointment, without notice to Borrower and without regard to the
         adequacy of the security for the Indebtedness and without regard to the
         solvency of Borrower or any other person, firm or entity liable for the
         payment of the Indebtedness, and such receiver or other official shall
         have all rights and powers permitted by applicable law and such other
         rights and powers as the court making such appointment may confer, but
         the appointment of such receiver or other official shall not impair or
         in any manner prejudice the rights of Lender to receive the Property
         Income pursuant to this Deed of Trust or the Assignment.

(j)      Lender may exercise any or all of the remedies available to a secured
         party under the Code, but any sale of the Equipment shall be subject to
         any applicable provisions of the Note.

(k)      Lender may pursue, or require Trustee to pursue, any other rights and
         remedies of Lender permitted by law, equity or contract or as set forth
         herein or in the other Loan Documents.

(l)      Lender may apply any funds then on deposit with Lender for payment of
         Impositions, ground rent or insurance premiums in the manner provided
         for in Section 2.07.

(m)      Lender in its sole discretion may surrender any insurance policies and
         collect the unearned premiums and apply such sums against the
         Indebtedness.

         Section 4.03.     General Provisions Regarding Remedies.

(a)      Effect of Judgment. No recovery of any judgment by Lender or Trustee
         and no levy of an execution under any judgment upon the Mortgaged
         Property or upon any other property of Borrower shall affect in any
         manner or to any extent the lien of this Deed of Trust upon the
         Mortgaged Property or any portion thereof, or any rights, powers or
         remedies of Lender or Trustee hereunder. Such lien, rights, powers and
         remedies of Lender and Trustee shall continue unimpaired as before.

(b)      Continuing Power of Sale. The power of sale conferred upon Lender in
         this Deed of Trust shall not be exhausted by any one or more sales as
         to any portion of the Mortgaged Property remaining unsold, but shall
         continue unimpaired until all of the Mortgaged Property is sold or all
         of the Indebtedness is paid.

(c)      Right to Purchase. At any sale of the Mortgaged Property or any portion
         thereof pursuant to the provisions of this Deed of Trust, Lender or
         Trustee shall have the right to purchase the Mortgaged Property being
         sold, and in such case shall have the right to credit against the
         amount of the bid made therefor (to the extent necessary) all or any
         portion of the Indebtedness then due.

                                       45
<PAGE>   50

(d)      Right to Terminate Proceedings. Lender or Trustee may terminate or
         rescind any proceeding or other action brought in connection with its
         exercise of the remedies provided in Section 4.02 at any time before
         the conclusion thereof, as determined in Lender's sole discretion and
         without prejudice to Lender.

(e)      No Waiver or Release. Lender may resort, or require Trustee to resort,
         to any remedies and the security given by the Loan Documents, in whole
         or in part, and in such portions and in such order as determined in
         Lender's sole discretion. No such action shall in any way be considered
         a waiver of any rights, benefits or remedies evidenced or provided by
         the Loan Documents. The failure of Lender or Trustee to exercise any
         right, remedy or option provided in the Loan Documents shall not be
         deemed a waiver of such right, remedy or option or of any covenant or
         obligation secured by the Loan Documents. No acceptance by Lender or
         Trustee of any payment after the occurrence of an Event of Default and
         no payment by Lender or Trustee of any Advance or obligation for which
         Borrower is liable hereunder shall be deemed to waive or cure such
         Event of Default or Borrower's liability to pay such obligation. No
         sale of all or any portion of the Mortgaged Property, no forbearance on
         the part of Lender or Trustee, and no extension of time for the payment
         of the whole or any portion of the Indebtedness or any other indulgence
         given by Lender or Trustee to Borrower or any other person or entity,
         shall operate to release or in any manner affect Lender's or Trustee's
         interest in the Mortgaged Property or the liability of Borrower to pay
         the Indebtedness, except to the extent that such liability shall be
         reduced by Proceeds of the sale of all or any portion of the Mortgaged
         Property received by Lender. No waiver by Lender or Trustee shall be
         effective unless it is in writing and then only to the extent
         specifically stated.

(f)      No Impairment; No Release. The interests and rights of Lender or
         Trustee under the Loan Documents shall not be impaired by any
         indulgence, including (i) any renewal, extension or modification which
         Lender may grant with respect to any of the Indebtedness; (ii) any
         surrender, compromise, release, renewal, extension, exchange or
         substitution which Lender or Trustee may grant with respect to the
         Mortgaged Property or any portion thereof; or (iii) any release or
         indulgence granted to any maker, endorser, guarantor or surety of any
         of the Indebtedness. Subject to Section 11 of the Note, if the
         Mortgaged Property is sold and Lender enters into any agreement with
         the then owner of the Mortgaged Property extending the time of payment
         of the Indebtedness, or otherwise modifying the terms hereof or of any
         other Loan Document, Borrower shall continue to be liable to pay the
         Indebtedness according to the tenor of any such agreement unless
         expressly released and discharged in writing by Lender.

(g)      WAIVERS AND AGREEMENTS REGARDING REMEDIES. TO THE FULLEST EXTENT THAT
         BORROWER MAY LEGALLY DO SO, BORROWER:

                                       46
<PAGE>   51

         (i)      AGREES THAT BORROWER WILL NOT AT ANY TIME INSIST UPON, PLEAD,
                  CLAIM OR TAKE THE BENEFIT OR ADVANTAGE OF ANY LAWS NOW OR
                  HEREAFTER IN FORCE PROVIDING FOR ANY APPRAISAL OR
                  APPRAISEMENT, VALUATION, STAY, EXTENSION OR REDEMPTION, AND
                  WAIVES AND RELEASES ALL RIGHTS OF REDEMPTION, VALUATION,
                  APPRAISAL OR APPRAISEMENT, STAY OF EXECUTION, EXTENSION AND
                  NOTICE OF ELECTION TO ACCELERATE OR DECLARE DUE THE WHOLE OF
                  THE INDEBTEDNESS;

         (ii)     WAIVES ALL RIGHTS TO A MARSHALING OF THE ASSETS OF BORROWER,
                  BORROWER'S PARTNERS, IF ANY, AND OTHERS WITH INTERESTS IN
                  BORROWER, INCLUDING THE MORTGAGED PROPERTY, OR TO A SALE IN
                  INVERSE ORDER OF ALIENATION IN THE EVENT OF FORECLOSURE OF THE
                  INTERESTS HEREBY CREATED, AND AGREES NOT TO ASSERT ANY RIGHT
                  UNDER ANY LAWS PERTAINING TO THE MARSHALING OF ASSETS, THE
                  SALE IN INVERSE ORDER OF ALIENATION, HOMESTEAD EXEMPTION, THE
                  ADMINISTRATION OF ESTATES OF DECEDENTS, OR ANY OTHER MATTERS
                  WHATSOEVER TO DEFEAT, REDUCE OR AFFECT THE RIGHT OF LENDER
                  UNDER THE LOAN DOCUMENTS TO A SALE OF THE MORTGAGED PROPERTY
                  FOR THE COLLECTION OF THE INDEBTEDNESS WITHOUT ANY PRIOR OR
                  DIFFERENT RESORT FOR COLLECTION, OR THE RIGHT OF LENDER OR
                  TRUSTEE TO THE PAYMENT OF THE INDEBTEDNESS OUT OF THE PROCEEDS
                  OF SALE OF THE MORTGAGED PROPERTY IN PREFERENCE TO EVERY OTHER
                  CLAIMANT WHATSOEVER;

         (iii)    WAIVES ANY RIGHT TO BRING OR UTILIZE ANY DEFENSE, COUNTERCLAIM
                  OR SETOFF, OTHER THAN ONE IN GOOD FAITH, WHICH DENIES THE
                  EXISTENCE OR SUFFICIENCY OF THE FACTS UPON WHICH THE
                  FORECLOSURE ACTION IS GROUNDED OR WHICH IS BASED ON LENDER'S
                  OR TRUSTEE'S WRONGFUL ACTIONS. IF ANY DEFENSE, COUNTERCLAIM OR
                  SETOFF (OTHER THAN ONE PERMITTED BY THE PRECEDING SENTENCE) IS
                  RAISED BY BORROWER IN SUCH FORECLOSURE ACTION, SUCH DEFENSE,
                  COUNTERCLAIM OR SETOFF SHALL BE DISMISSED. IF SUCH DEFENSE,
                  COUNTERCLAIM OR SETOFF IS BASED ON A CLAIM WHICH COULD BE
                  TRIED IN AN ACTION FOR MONEY DAMAGES, THE FOREGOING WAIVER
                  SHALL NOT BAR A SEPARATE ACTION FOR SUCH DAMAGE (UNLESS SUCH
                  CLAIM IS REQUIRED BY LAW OR APPLICABLE RULES OF PROCEDURE TO
                  BE PLEADED IN OR CONSOLIDATED WITH THE ACTION INITIATED BY
                  LENDER OR TRUSTEE), BUT SUCH SEPARATE ACTION SHALL NOT
                  THEREAFTER BE CONSOLIDATED WITH LENDER'S OR TRUSTEE'S
                  FORECLOSURE ACTION. THE BRINGING OF SUCH SEPARATE ACTION FOR
                  MONEY DAMAGES SHALL NOT BE DEEMED TO AFFORD ANY GROUNDS FOR
                  STAYING ANY SUCH FORECLOSURE ACTION;

         (iv)     WAIVES AND RELINQUISHES ANY AND ALL RIGHTS AND REMEDIES WHICH
                  BORROWER MAY HAVE OR BE ABLE TO ASSERT BY REASON OF THE
                  PROVISIONS OF ANY LAWS PERTAINING TO THE RIGHTS AND REMEDIES
                  OF SURETIES, INCLUDING WITHOUT LIMITATION,
                  _________________________, OR ANY CORRESPONDING FUTURE STATUTE
                  OR RULE OF LAW;

         (v)      WAIVES THE DEFENSE OF LACHES AND ANY APPLICABLE STATUTES OF
                  LIMITATION; AND

                                       47
<PAGE>   52

         (vi)     WAIVES ANY RIGHT TO HAVE ANY TRIAL, ACTION OR PROCEEDING TRIED
                  BY A JURY.

(h)      Lender's Discretion. Lender may exercise its rights, options and
         remedies and may make all decisions, judgments and determinations under
         this Deed of Trust and the other Loan Documents in its sole unfettered
         discretion.

(i)      Recitals of Facts. Intentionally Deleted.

(j)      Lender's Right to Waive, Consent or Release. Lender may at any time, in
         writing, (i) waive compliance by Borrower with any covenant herein made
         by Borrower to the extent and in the manner specified in such writing;
         (ii) consent to Borrower's doing any act which Borrower is prohibited
         hereunder from doing, or consent to Borrower's failing to do any act
         which Borrower is required hereunder to do, to the extent and in the
         manner specified in such writing; or (iii) release or require Trustee
         to release any portion of the Mortgaged Property, or any interest
         therein, from this Deed of Trust and the lien of the other Loan
         Documents. No such act shall in any way impair the rights of Lender or
         Trustee hereunder except to the extent specified by Lender in such
         writing.

(k)      Possession of the Mortgaged Property. Upon the occurrence of any Event
         of Default hereunder and demand by Lender at its option, Borrower shall
         immediately surrender or cause the surrender of possession of the
         Premises to Lender subject to the Permitted Encumbrances. Except as
         expressly provided in any separate written agreement between Lender and
         any other occupant of the Premises, if Borrower or such occupant is
         permitted to remain in possession, such possession shall be as tenant
         of Lender and such occupant (i) shall on demand pay to Lender monthly,
         in advance, reasonable use and occupancy charges for the space so
         occupied, and (ii) in default thereof, may be dispossessed by the usual
         summary proceedings. Upon demand, Borrower shall assemble the
         Collateral and make it available at the Premises to allow Lender to
         take possession and/or dispose of the Collateral. The covenants herein
         contained may be enforced by a receiver of the Mortgaged Property or
         any portion thereof. Nothing in this Section 4.03(k) shall be deemed a
         waiver of the provisions of this Deed of Trust prohibiting the sale or
         other disposition of the Mortgaged Property without Lender's consent
         except as and to the extent expressly permitted in the Loan Documents.

(l)      Limitations on Liability

         (i)      Notwithstanding anything to the contrary contained in any of
                  the Loan Documents or the Related Loan Documents but subject
                  to the provisions of this Section 4.03(l), in any action or
                  proceedings brought on this Deed of Trust, the Note or on any
                  of the Loan Documents in which a money judgment is sought,
                  Lender and Trustee will look

                                       48
<PAGE>   53

                  solely to the Mortgaged Property (including the Property
                  Income) for payment of the Indebtedness and, specifically and
                  without limitation, Lender and Trustee agree to waive any
                  right to seek or obtain a deficiency judgment against
                  Borrower.

         (ii)     The provisions of Section 4.03(1)(i) shall not

                  (u) constitute a waiver, release or impairment of any
                  obligation evidenced or secured by this Deed of Trust, the
                  Note or any other Loan Document by either Lender or Trustee to
                  the extent of the Mortgaged Property securing such obligation;

                  (v) be deemed to be a waiver of any right which Lender or
                  Trustee may have under Sections 506(a), 506(b), 1111(b) or any
                  other provisions of the U.S. Bankruptcy Code to file a claim
                  for the full amount of the Indebtedness secured by this Deed
                  of Trust or to require that all Collateral shall continue to
                  secure all of the Indebtedness owing to Lender in accordance
                  with the Note, this Deed of Trust and the Loan Documents;

                  (w) impair the right of the Lender or Trustee to name the
                  Borrower or any principals of Borrower or any guarantor of the
                  Note as a party or parties defendant in any action or suit for
                  judicial foreclosure and sale under this Deed of Trust;

                  (x) affect the validity or enforceability of, or limit
                  recovery under, any separate indemnity agreement (including
                  the environmental indemnity set forth in any separate
                  environmental indemnity agreement, however designated), or
                  guaranty made in connection with this Deed of Trust, the Note
                  or the Loan Documents;

                  (y) impair the right of the Lender or Trustee to obtain the
                  appointment of a receiver; or,

                  (z) impair Lender's or Trustee's rights and remedies under
                  Section 2.19 of this Deed of Trust regarding the assignment of
                  Leases and Property Income to Lender or under the Assignment.

         (iii)    Notwithstanding any provisions of this Subsection 4.03(l),
                  nothing herein shall be deemed to impair or prejudice in any
                  way the right of Lender or Trustee (which right is
                  specifically reserved) to pursue or obtain personal recourse
                  liability against Borrower, or Guarantor to recover Losses
                  incurred by Lender or Trustee arising out of or resulting
                  from:

                                       49
<PAGE>   54

                  (u) obligations and liabilities under any separate guaranty or
                  separate indemnity agreement;

                  (v) fraud or material misrepresentation in connection with the
                  Application or the making of the Loan;

                  (w) insurance and/or condemnation proceeds received but not
                  paid over or applied in accordance with the Loan Documents;

                  (x) misappropriation of any security deposits, advances or
                  prepaid rents, cancellation or termination payments or other
                  similar sums received by Borrower from any tenants or other
                  occupants of the Premises;

                  (y) personal property covered by Lender's security interest
                  obtained in connection with the Loan which is taken from the
                  Mortgaged Property by or on behalf of Borrower and not
                  replaced in the ordinary course of business with personal
                  property of the same utility and of the same or greater value;

                  (z) any act of arson, malicious destruction or material waste
                  by Borrower, any principal, affiliate, member or general or
                  limited partner of Borrower, or by any guarantor or indemnitor
                  under any of the Loan Documents given to Lender in connection
                  with the making of the Loan;

                  (aa) revenues of the Mortgaged Property which are not applied
                  to payments due under the Loan or to operating expenses of the
                  Mortgaged Property (including, without limitation, any
                  reserves or escrows required by any Loan Document) thereby
                  resulting in, or contributing materially to, a default under
                  the Loan Documents. Lender, however, shall have no right to
                  recover distributions from the revenues of the Mortgaged
                  Property to Borrower or Guarantor or any principal of Borrower
                  or Guarantor made in good faith (after determining the
                  sufficiency of revenues to cover the payments on the Loan and
                  the foregoing operating and capital expenses) more than ninety
                  (90) days prior to a default occurring under any Loan
                  Document;

                  (bb) [FCH/SH Leasing] [FCH/SH Leasing II]'s pledge in
                  violation of the Loan Documents of the revenues or operating
                  accounts relating to the Mortgaged Property, Lessee's Personal
                  Property (as defined in the Primary Lease) or any other rights
                  of [FCH/SH Leasing] [FCH/SH Leasing II] under the Primary
                  Lease or [FCH/SH Leasing] [FCH/SH Leasing II]'s failure to
                  keep all of the foregoing lien free in violation of the Loan
                  Documents;

                                       50
<PAGE>   55

                  (cc) any fraudulent conveyance or transfer (or claim of any
                  fraudulent conveyance or transfer) of any of the Mortgaged
                  Properties (or any interest therein) to Borrower;

                  (dd) the bankruptcy or insolvency of any fee owner of any of
                  the Mortgaged Properties other than Borrower; or

                  (ee) any transfer or mortgage tax (or claim of any transfer or
                  mortgage tax) arising from the transfer to Borrower or
                  mortgage by the fee owner or Borrower of any of the Mortgaged
                  Properties or any interest therein.

         (iv)     Notwithstanding the foregoing and subject to the last sentence
                  of this paragraph, the agreement of Lender and Trustee not to
                  pursue recourse liability as set forth in Section 4.03(l)(i)
                  above SHALL AUTOMATICALLY BECOME NULL AND VOID and be of no
                  further force and effect in the event (x) Borrower, any
                  general partner or member (if Borrower shall be a limited
                  liability company) of Borrower or any guarantor of the
                  Indebtedness files or consents to the filing of any petition
                  under the U.S. Bankruptcy Code respecting its or their debts,
                  or (y) any such petition shall have been filed against any of
                  the foregoing which is not dismissed within 90 days of such
                  filing; except for an involuntary bankruptcy filed by Lender
                  and provided further, that if: (1) after ninety (90) days
                  following the filing of an involuntary bankruptcy proceeding,
                  such proceeding is dismissed with prejudice and without
                  adversely affecting the enforceability or priority of any of
                  the Loan Documents; and (2) such dismissal occurs prior to the
                  occurrence of any of the following: (v) the entry of any order
                  that adversely affects the enforceability or priority of any
                  of the Loan Documents (other than solely by reason of the
                  automatic stay), (w) the entry of any order granting any
                  person relief from the automatic stay to foreclose against,
                  enforce any lien or security interest, levy upon, or repossess
                  any material assets of Borrower that constitute a part of, or
                  that relate to the Mortgaged Properties, or to terminate any
                  Management Agreement or Primary Lease, (x) the liquidation of
                  any material assets of Borrower that constitute a part of, or
                  that relate to, the Mortgaged Properties, (y) the entry of any
                  order approving the rejection or termination of any Primary
                  Lease or any Management Agreement, or (z) the entry of any
                  order approving any plan of reorganization for Borrower; and
                  (3) throughout the period following the filing of such
                  bankruptcy proceeding, Borrower or one or more of Borrower and
                  persons or entities having an interest in Borrower have
                  continued to make regular payments of debt service on a timely
                  basis in accordance with the provisions of the Loan Documents.
                  Borrower or one or more of Borrower and Guarantor shall be
                  personally liable only for the actual

                                       51
<PAGE>   56

                  damages, losses, costs, and expenses (including attorneys'
                  fees) incurred by Lender (expressly including any diminution,
                  loss or damage to the Collateral) as a result of such
                  bankruptcy filing.

(m)      Subrogation. If all or any portion of the proceeds of the Note or any
         Advance shall be used directly or indirectly to pay off, discharge or
         satisfy, in whole or in part, any prior lien or encumbrance upon the
         Mortgaged Property or any portion thereof, then Lender and Trustee
         shall be subrogated to, and shall have the benefit of the priority of,
         such other lien or encumbrance and any additional security held by the
         holder thereof.

(n)      Additional Provisions Regarding Remedies.

         (i)      Should Lender elect to foreclose by exercise of power of sale
                  set forth in this Deed of Trust, then upon receipt of such
                  notice from Lender, Trustee shall cause to be recorded,
                  published, posted and mailed to Borrower and other persons as
                  required by law a Notice of Trustee's Sale in the manner
                  required by law. Without further notice to Borrower and after
                  the lapse of such time as may then be required by law, Trustee
                  shall sell the Mortgaged Property at the time and place of
                  sale fixed by it in said Notice of Trustee's Sale or as
                  otherwise provided by law. The Mortgaged Property may be sold
                  as a whole or in such separate lots, parcels or items as
                  Trustee shall deem expedient, and such order as Trustee may
                  determine, at public auction in the manner provided by law.
                  Trustee shall deliver to the purchaser or purchasers its good
                  and sufficient deed or deeds conveying the property so sold,
                  but without any covenant or warranty, express or implied. Any
                  person, including Borrower, Trustee or Lender, may purchase at
                  such sale.

         (ii)     After deducting all costs, fees and expenses of Trustee and of
                  this Deed of Trust, including reasonable attorneys' fees and
                  all costs of title reports and other evidence of title and any
                  appraisals, environmental and other professional reports
                  obtained by Lender or Trustee in connection with the sale,
                  Trustee shall apply the proceeds of sale to payment of the
                  Indebtedness and the remainder, if any, to the person or
                  persons legally entitled thereto, or as provided in
                  _______________.

         (iii)    Trustee may postpone the sale of all or any portion of the
                  Mortgaged Property or change the place of sale in the manner
                  provided by law.

         (iv)     The power of sale under this Deed of Trust shall not be
                  exhausted by any one or more sales (or attempted sales) as to
                  all or any portion of the Mortgaged Property remaining unsold,
                  but shall continue unimpaired until all of the Mortgaged
                  Property has been sold and all of the Indebtedness has been
                  paid in full.

                                       52
<PAGE>   57

(o)      Additional Remedies. Subject to the provisions of Section 4.03(l)
         hereof, Lender shall have, in addition to all other rights and remedies
         provided herein and in the Loan Documents and at law or in equity, the
         rights and remedies afforded by _____________, without regard to the
         adequacy of the security or to the solvency of Borrower or to whether
         Trustee or Lender has commenced to exercise any other right or remedy
         herein or in any other Loan Document or at law or in equity.

(p)      Accurate Reflection. Borrower hereby acknowledges and agrees that the
         Loan Documents accurately reflect the agreements and understandings of
         the parties thereto with respect to the subject matter thereof, and
         hereby waives any claims against Lender that Borrower may now have or
         may hereafter acquire to the effect that the actual agreements and
         understandings of the parties to the Loan Documents, with respect to
         the subject matter thereof, may not be accurately set forth in the Loan
         Documents.

                                    ARTICLE V
                                     Trustee

         Section 5.01. Certain Actions of Trustee. Upon the written request of
Lender, Trustee may at any time (a) reconvey all or any portion of the Mortgaged
Property, (b) consent to the making of any map or plat thereof, (c) join in
granting any easement thereon or in creating any covenants or conditions
restricting the use or occupancy thereof, or (d) join in any extension agreement
or in any agreement subordinating the lien or charge hereof. Any such action may
be taken by Trustee without notice, and shall not affect the personal liability
of any person for the payment of the Indebtedness or the lien of this Deed of
Trust upon the Mortgaged Property for the full amount of the Indebtedness.

         Section 5.02. Reconveyance. Upon the written request of Lender stating
that all sums secured hereby have been paid, and upon payment of its fees,
Trustee shall reconvey without warranty the Mortgaged Property then held by
Trustee hereunder.

         Section 5.03. Trustee's Covenants and Compensation. Trustee, by its
acceptance hereof, covenants faithfully to perform and fulfill the trust herein
created, being liable, however, only for negligence or willful misconduct.
Trustee hereby waives any statutory fee and shall be entitled to, and hereby
agrees to accept, reasonable compensation in lieu thereof for all services
rendered or expenses incurred in the administration or execution of the trust
hereby created. Borrower hereby agrees to pay such compensation subject to any
applicable legal limitations.

         Section 5.04. Substitution of Trustee. Lender at any time in its sole
discretion may select and appoint a successor or substitute Trustee hereunder by
instrument in writing in any manner now or

                                       53
<PAGE>   58

hereafter provided by law. Such writing, upon recordation in the county where
the Land is located, shall be conclusive proof of proper substitution of such
successor or substitute Trustee which shall thereupon and without conveyance
from the predecessor Trustee succeed to all its title, estate rights, powers and
duties.

         Section 5.05. Resignation of Trustee. Trustee may resign at any time
upon giving 30 days' notice to Borrower and to Lender.

         Section 5.06. Ratification of Acts of Trustee. Borrower hereby ratifies
and confirms any and all acts which Trustee named herein or its successors or
assigns in this trust shall do lawfully by virtue hereof.

                                   ARTICLE VI
                                  Miscellaneous

         Section 6.01. Notices.

(a)      All notices, consents, approvals and requests required or permitted
         hereunder or under any other Loan Document shall be given in writing
         and shall be effective for all purposes if hand delivered or sent by
         (i) certified or registered United States mail, postage prepaid, or
         (ii) expedited prepaid delivery service, either commercial or United
         States Postal Service, with proof of attempted delivery, addressed in
         either case to any party hereto at its address as stated on the Cover
         Sheet of this Deed of Trust, or at such other address and person as
         shall be designated from time to time by Lender or Borrower, as the
         case may be, in a written notice to the other party in the manner
         provided for in this Section 6.01. A notice shall be deemed to have
         been given: in the case of hand delivery, at the time of delivery; in
         the case of registered or certified mail, three Business Days after
         deposit in the United States mail; or in the case of expedited prepaid
         delivery, upon the first attempted delivery on a Business Day. A party
         receiving a notice which does not comply with the technical
         requirements for notice under this Section 6.01 may elect to waive any
         deficiencies and treat the notice as having been properly given.

(b)      Borrower shall notify Lender promptly of the occurrence of any of the
         following: (i) receipt of notice from any governmental authority of
         material violations of applicable law relating to the Mortgaged
         Property; (ii) receipt of any notice from the holder of any other lien
         or security interest in the Mortgaged Property; or (iii) commencement
         of any judicial or administrative proceedings by, against or otherwise
         materially adversely affecting Borrower or Guarantor, the Mortgaged
         Property, or any other action by any creditor thereof as a result of
         any default under the terms of any loan.

                                       54
<PAGE>   59

         Section 6.02. Binding Obligations; Joint and Several. The provisions
and covenants of this Deed of Trust shall run with the land, shall be binding
upon Borrower, its successors and assigns, and shall inure to the benefit of
Lender and Trustee and their respective successors and assigns. If there is more
than one Borrower, all their obligations and undertakings hereunder are and
shall be joint and several.

         Section 6.03. Captions. The captions of the sections and subsections of
this Deed of Trust are for convenience only and are not intended to be a part of
this Deed of Trust and shall not be deemed to modify, explain, enlarge or
restrict any of the provisions hereof.

         Section 6.04. Further Assurances. Borrower shall do, execute,
acknowledge and deliver, at its sole cost and expense, such further acts,
instruments or documentation, including additional title insurance policies or
endorsements, as Lender or Trustee may reasonably require from time to time to
better assure, transfer and confirm unto Lender the rights now or hereafter
intended to be granted to Lender and/or Trustee under this Deed of Trust or any
other Loan Document.

         Section 6.05. Severability. If any one or more of the provisions
contained in this Deed of Trust shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Deed of Trust, but
this Deed of Trust shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein.

         Section 6.06. Borrower's Obligations Absolute. Except as expressly
permitted by the Loan Documents, all sums payable by Borrower hereunder shall be
paid without notice, demand, counterclaim, setoff, deduction or defense and
without abatement, suspension, deferment, diminution or reduction, and the
obligations and liabilities of Borrower hereunder shall in no way be released,
discharged, or otherwise affected (except as expressly provided herein) by
reason of: (a) any damage to or destruction of or any condemnation or similar
taking of the Mortgaged Property or any portion thereof; (b) any restriction or
prevention of or interference with any use of the Mortgaged Property or any
portion thereof; (c) any title defect or encumbrance or any eviction from the
Premises or any portion thereof by title paramount or otherwise; (d) any
Bankruptcy Proceeding relating to Borrower, any general partner of Borrower, or
any guarantor or indemnitor, or any action taken with respect to this Deed of
Trust or any other Loan Document by any trustee or receiver of Borrower or any
such general partner, guarantor or indemnitor, or by any court, in any such
proceeding; (e) any claim presently known to Borrower which Borrower has or
might have against Lender or Trustee; (f) any default or failure on the part of
Lender or Trustee prior to the date hereof to perform or comply with any of the
terms hereof or of any other agreement with Borrower; or (g) any other
occurrence whatsoever, whether similar or dissimilar to the foregoing. Except as
expressly provided herein,

                                       55
<PAGE>   60

Borrower waives all rights now or hereafter conferred by statute or otherwise to
any abatement, suspension, deferment, diminution or reduction of any sum secured
hereby and payable by Borrower.

         Section 6.07. Amendments. This Deed of Trust cannot be altered,
amended, modified or discharged orally and no executory agreement shall be
effective to modify or discharge it in whole or in part, unless in writing and
signed by the party against which enforcement is sought.

         Section 6.08. Other Loan Documents and Schedules. All of the
agreements, conditions, covenants, provisions and stipulations contained in the
Note and the other Loan Documents, and each of them, which are to be kept and
performed by Borrower are hereby made a part of this Deed of Trust to the same
extent and with the same force and effect as if they were fully set forth in
this Deed of Trust, and Borrower shall keep and perform the same, or cause them
to be kept and performed, strictly in accordance with their respective terms.
The Cover Sheet and each schedule attached to this Deed of Trust are integral
parts of this Deed of Trust and are incorporated herein by this reference. In
the event of any conflict between the provisions of any such schedule and the
remainder of this Deed of Trust, the provisions of such schedule or rider shall
prevail.

         Section 6.09. Legal Construction.

(a)      The enforcement of this Deed of Trust shall be governed by, and
         construed and interpreted in accordance with, the laws of the State.

(b)      All terms contained herein shall be construed, whenever the context of
         this Deed of Trust so requires, so that the singular number shall
         include the plural, and the plural the singular, and the use of any
         gender shall include all genders.

(c)      The terms "include" and "including" as used in this Deed of Trust shall
         be construed as if followed by the phrase "without limitation".

(d)      Any provision of this Deed of Trust permitting the recovery of
         attorneys' fees and costs shall be deemed to include such fees and
         costs incurred in all appellate proceedings.

         Section 6.10. Merger. So long as any Indebtedness shall remain unpaid,
fee title to and any other estate in the Mortgaged Property shall not merge, but
shall be kept separate and distinct, notwithstanding the union of such estates
in any person or entity.

         Section 6.11. Time of the Essence. Time shall be of the essence in the
performance of all obligations of Borrower under this Deed of Trust.

                                       56
<PAGE>   61

         Section 6.12. Transfer of Loan. Lender, in the management of its
investments or for any other reason, may, at any time, sell, transfer or assign
the Note, the Deed of Trust and the other Loan Documents and the servicing
rights with respect thereto or grant participations therein or issue mortgage
pass-through certificates or other securities evidencing a beneficial interest
in the Note, Deed of Trust and other Loan Documents (collectively, a
"Transfer"). As part of a Transfer, Lender may forward to each transferee,
assignee, servicer, participant or investor all documents and information which
Lender now has or may hereafter acquire relating to the Indebtedness, the Loan
Documents and the Mortgaged Property. Borrower agrees to cooperate with Lender
at no cost to Borrower in connection with a Transfer including, without
limitation, the delivery of any estoppel certificates required under Section
2.18 and such other documents as may be reasonably be requested by Lender.

         Section 6.13. Satisfaction. If all of the Indebtedness is paid in full
in accordance with the Note and the other Loan Documents, then in that event
only all rights of Lender and Trustee under this Deed of Trust and the other
Loan Documents shall terminate and the Mortgaged Property shall become wholly
clear of the liens, grants, security interests, conveyances and assignments
evidenced hereby and thereby, and Lender shall release or cause to be released
such liens, grants, assignments, conveyances and security interests in due form
at Borrower's cost (to the extent permitted by the law of the State), and this
Deed of Trust shall be void; provided, however, that no provision of this Deed
of Trust or any other Loan Document which, by its own terms, is intended to
survive such payment and release (nor the rights of Lender or Trustee under any
such provision) shall be affected in any manner thereby and such provision
shall, in fact, survive. Recitals of any matters or facts in any release
instrument executed by Lender or Trustee under this Section 6.13 shall be prima
facie evidence of the truthfulness thereof. To the extent permitted by law, such
an instrument may describe the grantee or releasee as "the person or persons
legally entitled thereto" and Lender and Trustee shall not have any duty to
determine the rights of persons claiming to be rightful grantees or releasees of
any of the Mortgaged Property. When this Deed of Trust has been fully released
or discharged by Lender and/or Trustee, the release or discharge hereof shall
operate as a release and discharge of the Assignment and as a reassignment of
all future Leases and Property Income with respect to the Mortgaged Property to
the person or persons legally entitled thereto, unless such release expressly
provides to the contrary.

         Section 6.14. Defeasance Requirements.

(a)      Five (5) years after the Closing Date, Borrower may voluntarily defease
         all of the Loan and the Related Loans.

(b)      Any defeasance of the Loan and the Related Loans by Borrower shall be
         made on a Payment Date.

(c)      Borrower shall not be permitted at any time to defease all or any part
         of the Loan or the Related Loans except as expressly provided in this
         Section 6.14.

                                       57
<PAGE>   62

(d)      Subject to the terms and conditions of this Deed of Trust, Borrower may
         defease the Loan and the Related Loans if Borrower: (i) has provided
         not less than thirty (30) days prior written notice to Lender
         specifying a Payment Date (the "Defeasance Release Date") on which the
         payments provided in clauses (ii) and (iii) below are to be made and
         the deposit provided in clause (iv) below is to be made, (ii) pays all
         interest accrued and unpaid on the outstanding principal amount of the
         Loan and the Related Loans to and including the Defeasance Release
         Date, (iii) pays all other sums then due and payable under the Loan
         Documents and the Related Loan Documents, (iv) deposits with Lender an
         amount equal to the Defeasance Deposit, (v) delivers to Lender (A) a
         security agreement, in form and substance satisfactory to Lender and
         Borrower, creating a first priority perfected Lien on the deposits
         required pursuant to this Section 6.14 and the U.S. Obligations
         purchased on behalf of Borrower in accordance with this Section 6.14
         (the "Defeasance Security Agreement"), (B) a release of the Mortgaged
         Property from the lien of the Deed of Trust in a form appropriate for
         the jurisdiction in which the Mortgaged Property is located, to be
         executed by Lender, (C) an officer's certificate of Borrower certifying
         that the requirements set forth in this Section 6.14 have been
         satisfied, and (D) such other certificates, documents or instruments as
         Lender may reasonably request, and (vi) assigns to such other entity or
         entities established or designated by Lender (the "Successor Obligor")
         all of Borrower's rights, interests and obligations under the Note,
         each Related Note, the other Loan Documents and the other Related Loan
         Documents and the Defeasance Security Agreement together with the
         pledged U.S. Obligations. The Successor Obligor shall assume, in a
         writing or writings reasonably satisfactory to Lender in Lender's
         discretion, all of Borrower's obligations under the Note, each Related
         Note, the other Loan Documents and the other Related Loan Documents and
         the Defeasance Security Agreement and, upon such assignment Borrower
         and Guarantor shall, except as set forth herein, be relieved of its
         obligation under all the Loan Documents and all of the Related Loan
         Documents.

(e)      The U.S. Obligations shall mature on or be redeemable, or provide for
         payment thereon, on or prior to the Business Day immediately preceding
         the date on which payments under the Note and each Related Note are due
         and payable and the proceeds thereof shall be payable directly to
         Lender. In connection with the foregoing, Borrower appoints Lender as
         Borrower's agent for the purpose of applying the amounts delivered
         pursuant to clause (d)(iv) above to purchase U.S. Obligations.

(f)      If any notice of defeasance is given, Borrower shall be required to
         defease the Loan and the Related Loans on the specified Payment Date
         (unless such notice is revoked in writing by Borrower prior to the date
         specified therein in which event Borrower shall immediately reimburse
         Lender for any costs incurred by Lender in connection with Borrower's
         giving of such notice and revocation).

                                       58
<PAGE>   63

(g)      Upon defeasance of the Loan and the Related Loans in accordance with
         the requirements of this Section 6.14, the Mortgaged Property shall be
         released from the lien of the Deed of Trust and the Remaining
         Properties shall be released from the liens of the Related Mortgages.
         Notwithstanding the foregoing, Borrower acknowledges that Borrower only
         has the right to simultaneously defease the Loan and the Related Loans
         and shall have no right to defease any such loan in and of itself.

(h)      Nothing in this Section 6.14 shall release Borrower from any liability
         or obligation relating to any environmental matters arising under
         Sections 2.20 through 2.22 hereof.

         Section 6.15. Partial Release. Borrower shall be entitled at any time
to a release of the lien of this Deed of Trust (but not any other Related
Mortgage) only if each of the following conditions has been satisfied:

(a)      A release under this Section 6.15 and Section 5.15 of each Related
         Mortgage may not take place more than three (3) times (in the
         aggregate) during the term of this Loan and the Related Loans;

(b)      No more than a total of three (3) of the Mortgaged Properties may be
         released under this Section 6.15 and Section 5.15 of each Related
         Mortgage, and no more than a total of three (3) of the Mortgaged
         Properties may be released under (i) this Section 6.15 and Section 5.15
         of each Related Mortgage, and (ii) Section 6.16 of this Deed of Trust
         and Section 5.16 of each Related Mortgage;

(c)      After the proposed release, the Debt Service Coverage Ratio - Remaining
         Properties for the twelve (12) months prior to the release and
         projected twelve (12) months following the release must be at least
         equal to or greater than the greater of (x) 1.65, or (y) the current
         Debt Service Coverage Ratio - Mortgaged Properties calculated for the
         twelve (12) month period prior to the release;

(d)      After the proposed release, the loan to value ratio of the remaining
         Related Loans must be less than or equal to 60% as calculated
         immediately prior to the release based upon appraisals furnished to
         Lender in form and substance reasonably satisfactory to Lender and
         prepared by an MAI appraiser approved by Lender at Borrower's cost or
         as determined by Lender;

(e)      Borrower shall pay Lender in reduction of the principal balance of the
         Loan a sum equal to 115% of the original Allocated Loan Amount for the
         Mortgaged Property, plus Borrower shall in addition pay to Lender a
         "prepayment premium" applied to said sum and computed in the manner
         specified in the Note;

                                       59
<PAGE>   64

(f)      Neither the Loan nor the Related Loans shall be in Default at the time
         such request for release is made through the completion of the release;

(g)      Borrower must pay all of Lender's costs associated with the partial
         release plus a fee of .5% of the original Allocated Loan Amount for the
         Mortgaged Property to be released;

(h)      The original Borrower named in the Loan Documents and the Related Loan
         Documents continues to be the owner of the Remaining Mortgaged
         Properties; and

(i)      All documents relating to the release shall be in form and substance
         satisfactory to Lender.

         Section 6.16. Substitution of Collateral. Borrower shall be entitled to
substitute a property (being defined as releasing a property that then
constitutes security for the Loan (the "Released Property")) and substituting
another property owned in fee by Borrower (the "Substitute Property") in its
place on the following terms and conditions:

(a)      A substitution may not take place more than three (3) times during the
         term of the Loan and the Related Loans;

(b)      No more than three (3) properties (in the aggregate) may be released
         under this Section 6.16 and Section 5.16 of each Related Mortgage, and
         no more than a total of three (3) of the Mortgaged Properties may be
         released under (i) Section 6.15 above and Section 5.15 of each Related
         Mortgage, and (ii) this Section 6.16 and Section 5.16 of each Related
         Mortgage;

(c)      After the proposed substitution, the Debt Service Coverage Ratio -
         Remaining Properties for the twelve (12) months prior to the
         substitution and projected twelve (12) months following the
         substitution must be at least equal to or greater than the greater of
         (i) 1.65, or (ii) the current Debt Service Coverage Ratio - Mortgaged
         Properties calculated for the twelve (12) month period prior to the
         substitution;

(d)      After the proposed substitution, the loan to value ratio of the
         remaining Related Loans must be less than or equal to the lesser of (i)
         60%, or (ii) the current loan to value ratio of the existing Loan and
         Related Loans calculated immediately prior to the substitution based
         upon appraisals furnished to Lender in form and substance reasonably
         satisfactory to Lender and prepared by an MAI appraiser approved by
         Lender at Borrower's cost;

(e)      The net operating income and/or RevPar (as reported by Smith Travel) of
         the Substitute Property must not show a downward trend for any of the
         three (3) years prior to the substitution;

                                       60
<PAGE>   65

(f)      The appraised value (based upon appraisals furnished to Lender in form
         and substance reasonably satisfactory to Lender and prepared by an MAI
         appraiser approved by Lender at Borrower's cost), the net operating
         income and current debt service coverage ratio of the Substitute
         Property must be 120% greater than the appraised value, net operating
         income and the debt service coverage ratio of the Released Property;

(g)      Lender may at its sole discretion reject any property substitution that
         in Lender's sole determination would not be in compliance with the
         terms and provisions of the Loan Application, would be detrimental to
         the overall quality and/or value of the Mortgaged Properties, or would
         not be in compliance with Lender's then existing underwriting standards
         and criteria;

(h)      The Substitute Property must be franchised as a "Sheraton or Sheraton
         Suites", or other franchise reasonably acceptable to Lender, and
         managed by the manager under the Management Agreement or another a
         nationally recognized hotel management company with a franchise and
         hotel agreement similar to the Management Agreement or otherwise
         reasonably acceptable to Lender;

(i)      Borrower must pay (i) all of Lender's costs (all of which must be paid,
         whether or not such substitution is actually approved or completed)
         associated with the substitution including but not limited to legal
         fees, appraised fees, market studies and expenses, title insurance
         premiums on the new property, engineering fees and expenses, recording
         fees and transfer taxes, and (ii) a fee of 1% of the original Allocated
         Loan Amount for the Released Property;

(j)      The Loan and any Related Loan shall not be in Default at the time such
         request for substitution is made through the completion of the
         substitution;

(k)      The original Borrower named in the Loan Documents and Related Loan
         Documents continues to be the owner of the Remaining Mortgaged
         Properties; and

(l)      In order to substitute one property for another as security for the
         Loan or any Related Loan, Borrower acknowledges that such substitute
         property shall be subject to all of Lender's underwriting and due
         diligence requirements and criteria, including, without limitation,
         environmental assessment, review of leases, receipt of tenant
         subordination letters, title policy endorsements, etc. Borrower agrees
         that the Substitute Property shall be subject to all the terms and
         conditions of the Loan Application.

Section 16.17. Subordinate. The lien of this Deed of Trust shall at all times be
subject and subordinate to the lien of that certain Deed of Trust and Security
Agreement and Fixture Filing With Assignment of Leases and Rents of even date
herewith, made by Borrower, as trustor, to _________________, as

                                       61
<PAGE>   66

trustee, for the benefit of Lender, as beneficiary, and recorded concurrently
herewith in the Official Records of __________,___________ (the "Prior Deed of
Trust"). Notwithstanding anything to the contrary contained herein, in the event
the Prior Deed of Trust is released or terminated in accordance with its terms,
then such release or termination shall also act as a release or termination of
this Deed of Trust.

                       [SEE FOLLOWING PAGE FOR SIGNATURES]

                                       62
<PAGE>   67

IN WITNESS WHEREOF, this Deed of Trust has been duly executed and delivered as
of the day and year first above written.

                                       BORROWER

                                       FELCOR/MM S-7 HOLDINGS, L.P., a Delaware
                                       limited partnership

                                       By:  FelCor/MM S-7 Hotels, L.L.C., a
                                            Delaware limited liability company,
                                            its general partner

                                            By:
                                                --------------------------------
                                                Joel M. Eastman,
                                                Vice President

                                       63
<PAGE>   68

                                 ACKNOWLEDGMENT

STATE OF TEXAS                               )
                                             )
COUNTY OF DALLAS                             )

         This instrument was acknowledged before me on this _____ day of April,
2000, by Joel M. Eastman, as Vice President of FelCor/MM S-7 Hotels, L.L.C., a
Delaware limited liability company, which is the general partner of FelCor/MM
S-7 Holdings, L.P., a Delaware limited partnership, on behalf of said entities.

My Commission expires:               -------------------------------------------
                                     Notary Public in and for the State of Texas
----------------------

                                     -------------------------------------------
                                     Printed/Typed Name of Notary

<PAGE>   69

                                   SCHEDULE A

                               DESCRIPTION OF LAND

<PAGE>   70

                                   SCHEDULE B

                             PERMITTED ENCUMBRANCES<PAGE>   1
                                                                 EXHIBIT 10.24.2

Mortgage Loan No.:
                   -----------                          ------------------------

                                 PROMISSORY NOTE

$                                                                 April 20, 2000
 ---------------

FOR VALUE RECEIVED, the undersigned ("Borrower"), promise(s) to pay to the order
of [MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY] [TEACHERS INSURANCE AND ANNUITY
ASSOCIATION OF AMERICA] ("Lender"), at its home office in ____________________,
or at such other place as Lender may direct, in lawful money of the United
States of America, without grace or offset, the principal sum of
_________________________________________($_________________), with interest
thereon at the rate of eight and seventy three one hundredths percent (8.73%)
per annum (the "Contract Rate") to be paid as provided hereinbelow.

This Promissory Note is secured by, among other things, (a) a Deed of Trust and
Security Agreement and Fixture Filing with Assignment of Leases and Rents of
even date herewith (the "Mortgage"), covering real property and other property
described in the Mortgage, and located in the City of ____________, County of
__________, State of ____________, and (b) certain other mortgages, deeds of
trust and/or deeds to secure debt made by Borrower for the benefit of Lender as
additional security for the Loan.

1.   PAYMENT TERMS

     Payments shall be made on this Promissory Note as follows:

A. On the date the loan evidenced hereby is made, a payment of interest only
shall be due and payable for the period from such date to the first day of the
next calendar month.

B. Successive monthly installments of principal and interest (in arrears), shall
be made on the first day of June, 2000 and on the first day of each calendar
month thereafter up to and including the first day of April, 2010.

C. Each monthly installment shall be in the constant amount of
____________________________ ($__________________).

D. A final installment equal to the entire principal balance then remaining
unpaid, with accrued interest thereon, shall be due and payable on May 1, 2010
(the "Maturity Date");

Unless otherwise directed by Lender in writing, all payments shall be made by
wire transfer of immediate federal funds or equivalent to Lender's bank and bank
account. Borrower acknowledges that, since the term of the loan evidenced hereby
is shorter than the amortization period, a substantial portion of the principal
balance will be due on the Maturity Date. Whenever

                                       1

                                                               Borrower's
                                                               Initials:
                                                                        -----

<PAGE>   2

any payment to be made under this Promissory Note is stated to be due on a date
which is not a Business Day (defined hereinbelow), the due date shall be
extended to the next succeeding Business Day and interest shall continue to
accrue and be payable at the applicable rate during such extension.

2.   INTEREST

     The monthly payments of combined principal and interest of this Promissory
Note are based upon a twenty-five (25) year amortization period, and all
interest accruing hereunder shall be calculated on the basis of a 360-day year
consisting of twelve (12) months of thirty (30) days each; provided, however,
that for any partial monthly payment, interest shall be calculated on the basis
of a 365-day year.

3.   DEFAULT INTEREST

     If the entire unpaid principal balance of this Promissory Note, together
with accrued and unpaid interest thereon, is not paid when due, whether on the
Maturity Date or any earlier date as a result of acceleration of this Promissory
Note after an Event of Default (hereinafter defined), then the amount unpaid
shall bear interest from the Maturity Date or such earlier date, as the case may
be, at the per annum interest rate (the "Default Rate") equal to the sum of
three percent (3%) plus the Contract Rate.

The Default Rate shall continue until the first occurring of the following:

     (i)  payment in full of any sums due hereunder and under the Loan Documents
          (hereinafter defined) or

     (ii) reinstatement of the loan evidenced hereby pursuant to statutory
          provisions requiring such reinstatement, but only after the curing of
          all defaults and payments of all sums due hereunder.

4.   LATE CHARGE

     If any regular monthly installment of principal or interest due hereunder,
or any monthly deposit for taxes, ground rent, insurance, replacements and other
sums if required under any Loan Document, shall not be paid as required under
this Promissory Note or Loan Document, as the case may be, by the tenth (10th)
day of the month in which the same shall be due, Borrower shall pay to Lender a
late charge (the "Late Charge") of four cents ($0.04) for each dollar so overdue
in order to compensate Lender for its loss of the timely use of the money and
frustration of Lender in the meeting of its financial commitments and to defray
part of Lender's incurred cost of collection occasioned by such late payment.
Any Late Charge incurred shall be immediately due and payable. If, however,
during any consecutive twelve (12) month period Borrower on more than three (3)
occasions shall pay any such installments or deposits after the due dates
thereof (whether prior to or after the time that the Late Charge is payable as
above), then the time period after which a Late Charge will be charged and paid
shall thereafter be reduced from ten (10) days

                                       2

                                                               Borrower's
                                                               Initials:
                                                                        -----

<PAGE>   3

to two (2) days after a due date. Nothing herein contained shall be deemed to
constitute a waiver or modification of the due date for such installments or
deposits or the requirement that Borrower make all payment of installments and
deposits as and when the same are due and payable.

5.   APPLICATION OF PAYMENTS

     Each payment received by Lender shall be applied in the following order:

A. First, to the interest due on any advances made by Lender under any
instrument which is a Loan Document;

B. Next, to the principal amount of any advances made by Lender under any
instrument which is a Loan Document;

C. Next, to Late Charges, attorney's fees or any other amount due hereunder or
under a Loan Document save for the amounts described in (D) and (E) immediately
below;

D. Next, to accrued interest due hereunder; and

E. Finally, to the principal balance hereof.

Notwithstanding the foregoing, in the event that Borrower does not pay the
outstanding principal balance and accrued interest due under this Promissory
Note, when due, whether on the Maturity Date or on any earlier date as a result
of acceleration of this Promissory Note, the Lender at its option shall apply
any payments it then receives in such order as Lender deems appropriate in its
sole discretion.

6.   MONETARY AND NON-MONETARY EVENTS OF DEFAULT AND ACCELERATION

A.   (i) The failure to make any payment required under this Promissory Note, as
     and when due; (ii) the failure to pay on the Maturity Date the outstanding
     principal balance, accrued interest, and other payments due under this
     Promissory Note, or the Loan Documents; (iii) the failure to have or keep
     in force insurance as required under any of the Loan Documents; (iv) the
     insolvency or bankruptcy of Borrower or Guarantor; (v) a sale, transfer, or
     encumbrance of the Mortgaged Property (except as expressly permitted in the
     Mortgage), without the required approval of Lender; or (vi) the failure of
     Borrower to be a Single-Purpose Entity at all times during the term of the
     Loan, shall each be and constitute a monetary event of default ("Monetary
     Event of Default") hereunder, without any action required to be taken by or
     on behalf of Lender.

B.   Upon the occurrence of a Monetary Event of Default, Lender may, at any time
     thereafter, together or singly,

                                       3

                                                               Borrower's
                                                               Initials:
                                                                        -----

<PAGE>   4

     (i)  declare the outstanding principal balance due hereunder, together with
          all accrued and unpaid interest thereon, to be immediately due and
          payable, thereby accelerating this Promissory Note;

     (ii) exercise immediately and without notice any and all other rights and
          remedies available under the Loan Documents, and/or at law or in
          equity;

     except that the acceleration of this Promissory Note for the Monetary Event
of Default set forth in (i) above shall be subject to the terms of Section 7 of
this Promissory Note.

     The failure to comply with any term, covenant, or condition of the Loan
Documents, other than as set forth in Section A (i) through (vi) above shall be
a non-monetary event of default ("Non-Monetary Event of Default"); provided that
declaration of a Non-Monetary Event of Default shall be in accordance with the
provisions of Section 7 of this Promissory Note.

7.   NOTICE AND CURE PRIOR TO ACCELERATION

A. If the Monetary Event of Default is one set forth in (i) of Section 6A above,
Lender shall give Borrower notice specifying the Monetary Event of Default, and
ten (10) days opportunity to cure and eliminate the Monetary Event of Default,
prior to exercising its rights under Section 6B (i) or (ii).

B. If the Monetary Event of Default is one set forth in (ii) through (vi) of
Section 6A above, Lender shall not be obligated to give notice of any kind,
prior to exercising its rights under Section 6B (i) or (ii).

C. Prior to declaring a Non-Monetary Event of Default, Lender shall give
Borrower notice specifying the potential Non-Monetary Event of Default, and
thirty (30) days opportunity to cure the potential Non-Monetary Event of
Default. If Borrower has not cured the potential Non-Monetary Event of Default,
by the end of said thirty (30) day period, unless additional time to cure is
specifically permitted under any other Loan Document with respect to such
Non-Monetary Event of Default, then Lender may declare a Non-Monetary Event of
Default by a notice declaring such Non-Monetary Event of Default. From and after
such notice declaring the Non-Monetary Event of Default, Lender may exercise its
rights under Section 6B (i) or (ii) together or singly, without further notice,
at any time thereafter.

D. The Lender's agreement to give notice and time to cure are on the further
conditions that:

     (i)   the failure of Lender to give any notice(s) required shall not result
           in the imposition of any liabilities or penalties upon Lender;

     (ii)  the agreement to give notice and time to cure is personal to
           Borrower, and does not extend to or vest any such rights in any other
           person or entity; and

                                       4

                                                               Borrower's
                                                               Initials:
                                                                        -----

<PAGE>   5

     (iii) nothing contained in this Section 7 shall prevent the imposition of
           Late Charges.

8.   DEFINITIONS

     Any terms used in this Promissory Note requiring a definition shall have
the definition given in this Section, unless elsewhere defined in this
Promissory Note. Any and all instruments securing or executed in connection with
this Promissory Note, including, without limitation, this Promissory Note, the
Mortgage, guarantees, indemnities, pledges, security agreements and assignments
of leases and rents are herein collectively referred to as the "Loan Documents."
Any instrument included within the term "Loan Documents" is herein referred to
in the singular as a "Loan Document." The terms, "Agreement Concerning Primary
Lease Agreement", "Application", "Collateral", "Equipment", "[FCH/SH Leasing]
[FCH/SH Leasing II]", "Guarantor", "Indebtedness", "Loan", "Losses", "Management
Agreement", "Material Lease", "Mortgaged Property", "Mortgaged Properties",
"Premises", "Primary Lease", "Proceeds", "Property Income", "Related Loan
Documents", "Related Notes" and "Single-Purpose Entity" shall have the meaning
set forth in the Mortgage. The term "Event of Default" shall have the meaning
given in Section 6 hereof. The term "Prepayment Premium" shall have the meaning
given in Section 9 hereof. The term "Business Day" as used herein shall mean any
day other than a Saturday, Sunday or other day on which national banks in the
State of _________ are not open for business.

9.   PREPAYMENT

A. During the period commencing ninety (90) days prior to the Maturity Date,
Borrower may prepay the Loan in full, but not in part, without any Prepayment
Premium.

Except as expressly set forth in the Loan Documents, Borrower shall have no
right to prepay in full or in part the principal amount due under this
Promissory Note.

B. If the maturity of this Promissory Note is accelerated by the Lender because
of the occurrence of an Event of Default, the resulting acceleration shall be
deemed to be an election on the part of Borrower to prepay the loan evidenced
hereby. Accordingly, there shall be added to the amount due after an Event of
Default and resulting acceleration, a Prepayment Premium, calculated as set
forth below and using as the prepayment date the date on which any tender of
payment is made, and Borrower agrees to pay the same. Any tender of payment made
after acceleration by or on behalf of Borrower (including, without limitation,
payment by any guarantor or purchaser at a foreclosure sale), shall include the
Prepayment Premium computed as provided herein.

C. For purposes hereof, the Prepayment Premium shall be equal to the greater of
(x) or (y), where

     (x) is equal to the amount to be prepaid multiplied by 1%; and

     (y) is equal to the product (discounted as hereinafter provided) obtained
by multiplying the amount to be prepaid by the "Prepayment Premium Rate". The
"Prepayment

                                       5

                                                               Borrower's
                                                               Initials:
                                                                        -----

<PAGE>   6

Premium Rate" shall be the percentage obtained by multiplying the excess, if
any, of the Contract Rate over the market yield of U.S. Treasury issues which
have the closest maturity (month and year) to the Maturity Date, as quoted in
The Wall Street Journal published on the scheduled prepayment date, by a
fraction, the numerator of which is equal to the number of days remaining from
and including the scheduled prepayment date to and including the Maturity Date,
and the denominator of which is 365. Should more than one U.S. Treasury issue be
quoted as maturing on the date closest to the Maturity Date, then the issue
having the market yield which differs least from the Contract Rate will be used
in the calculations. If The Wall Street Journal is not in publication on the
applicable date, or ceases to publish such U.S. Treasury issue yield, then any
other publication acceptable to Lender quoting daily market yields for U.S.
Treasury issues will be used. The product obtained from the foregoing shall then
be discounted, on a semi-annual basis over the remaining term of this Promissory
Note, as of the date of prepayment to its then present value, using the U.S.
Treasury yield, referred to in this subparagraph (y).

D. No Prepayment Premium shall be required to be paid in connection with payment
of fire, casualty, or condemnation proceeds to the Lender in accordance with the
provisions of the Mortgage.

E. There will be due with such principal, all accrued and unpaid interest
thereon, in addition to all other amounts due under this Promissory Note.

F. The Prepayment Premium herein provided for represents the reasonable estimate
of Lender and Borrower of a fair average compensation for the loss that will be
sustained by Lender resulting from the payment of the outstanding principal
balance of the loan evidenced hereby prior to the Maturity Date. The Prepayment
Premium shall be paid without prejudice to the right of Lender to collect any
other amounts provided to be paid under this Promissory Note, or under the other
Loan Documents, or pursuant to the provisions of law.

G. Notwithstanding the foregoing, any Prepayment Premium incurred under this
Promissory Note as a result of an acceleration as described in Section 9B above,
shall also trigger a Prepayment Premium (and acceleration) under the [MassMutual
Note] [TIAA Note] in an equal amount. Furthermore, Maker shall not be allowed to
exercise its right and privilege to prepay in full this Promissory Note as
described in Section 9A above unless Maker also concurrently prepays in full the
[MassMutual Note] [TIAA Note]. As used herein, the term "[MassMutual Note] [TIAA
Note]" shall mean that certain promissory note of even date herewith executed by
Maker and payable to the order of [Massachusetts Mutual Life Insurance Company]
[Teachers Insurance and Annuity Association of America] in the original
principal amount of $__________.

10.  WAIVERS AND EXTENSIONS

     Borrower and all endorsers and guarantors and any and all others who may at
any time be or become liable for payment of all or any part of the loan
evidenced hereby severally waive presentment for payment, demand, notice of
dishonor or nonpayment, protest and notice of protest, notice of acceleration
and of intention to accelerate the Maturity Date (except as provided above in
the clause entitled "Notice and Cure Prior to Acceleration") and any and all

                                       6

                                                               Borrower's
                                                               Initials:
                                                                        -----

<PAGE>   7

lack of diligence or delays in collection or enforcement hereof, and agree that
Lender from time to time may extend the time for payment of any sums due under
this Promissory Note and grant releases to all endorsers and guarantors hereof,
and may release all or any portion of the Mortgaged Property, without in any way
affecting the liability of such parties hereunder.

11.  LIMITATIONS ON LIABILITY

A. In any action or proceeding brought on this Promissory Note or on the
Mortgage or on any of the Loan Documents in which a money judgment is sought
(subject to paragraphs B, C, and D below), Lender will look solely to the
Mortgaged Property described in the Loan Documents (including, without
limitation, the Collateral) for payment of the Indebtedness and, specifically
and without limitation, Lender agrees to waive any right to seek or obtain a
deficiency judgment against Borrower.

B. The provisions of this Section 11 shall not

     (i)   constitute a waiver, release or impairment of any obligation
           evidenced or secured by this Promissory Note, the Mortgage or any
           other Loan Document to the extent of the Mortgaged Property securing
           such obligation;

     (ii)  be deemed to be a waiver of any right which Lender may have under
           Sections 506(a), 506(b), 1111(b) or any other provisions of the U.S.
           Bankruptcy Code to file a claim for the full amount of the
           Indebtedness secured by the Mortgage or to require that all
           Collateral shall continue to secure all of the Indebtedness owing to
           the Lender in accordance with the Promissory Note, the Mortgage and
           the other Loan Documents;

     (iii) impair the right of Lender to name Borrower or any principals of
           Borrower, or any guarantor of this Promissory Note, as a party or
           parties defendant in any action or suit for judicial foreclosure and
           sale under the Mortgage;

     (iv)  affect the validity or enforceability of, or limit recovery under,
           any separate indemnity agreement (including, without limitation, any
           environmental indemnity set forth in any separate environmental
           indemnity agreement, however designated) or separate guaranty, if
           any, made in connection with this Promissory Note, the Mortgage, or
           the Loan Documents;

     (v)   impair the right of Lender to obtain the appointment of a receiver;
           or

     (vi)  impair the enforcement of an assignment of leases or an assignment of
           rents contained in the Mortgage or any separate Assignment of Leases
           and Rents executed in connection herewith.

C. Notwithstanding any provisions of this Section 11 to the contrary, nothing
herein shall be deemed to prejudice the right of Lender (which right is
specifically reserved) to pursue or obtain

                                        7

                                                               Borrower's
                                                               Initials:
                                                                        -----

<PAGE>   8

personal recourse liability against the Borrower and Guarantor to recover Losses
incurred by Lender, arising out of, or resulting from:

     (i)    obligations and liabilities under any separate guaranty or separate
            indemnity agreement;

     (ii)   fraud or material misrepresentation in connection with the
            Application or the making of the Loan;

     (iii)  insurance and/or condemnation proceeds received but not paid over or
            applied in accordance with the Loan Documents;

     (iv)   misappropriation of any security deposits, advances or prepaid
            rents, cancellation or termination payments or other similar sums
            received by Borrower from any tenants or other occupants of the
            Premises;

     (v)    personal property covered by Lender's security interest obtained in
            connection with the Loan which is taken from the Mortgaged Property
            by or on behalf of Borrower and not replaced in the ordinary course
            of business with personal property of the same utility and of the
            same or greater value;

     (vi)   any act of arson, malicious destruction or material waste by
            Borrower, any principal, affiliate, member or general or limited
            partner of Borrower, or by Guarantor under any of the Loan Documents
            given to Lender in connection with the making of the Loan;

     (vii)  revenues of the Mortgaged Property which are not applied to payments
            due under the Loan or to operating expenses of the Mortgaged
            Property (including, without limitation, any reserves or escrows
            required by any Loan Document) thereby resulting in, or contributing
            materially to, a default under the Loan Documents. Lender, however,
            shall have no right to recover distributions from the revenues of
            the Mortgaged Property to Borrower or Guarantor or any principal of
            Borrower or Guarantor made in good faith (after determining the
            sufficiency of revenues to cover the payments on the Loan and the
            foregoing operating and capital expenses) more than ninety (90) days
            prior to a default occurring under any Loan Document;

     (viii) [FCH/SH Leasing] [FCH/SH Leasing II]'s pledge in violation of the
            Loan Documents of the revenues or operating accounts relating to the
            Mortgaged Property, Lessee's Personal Property (as defined in the
            Primary Lease) or any other rights of [FCH/SH Leasing] [FCH/SH
            Leasing II] under the Primary Lease or [FCH/SH Leasing] [FCH/SH
            Leasing II]'s failure to keep all of the foregoing lien free in
            violation of the Loan Documents;

                                       8

                                                               Borrower's
                                                               Initials:
                                                                        -----

<PAGE>   9

     (ix)   any fraudulent conveyance or transfer (or claim of any fraudulent
            conveyance or transfer) of any of the Mortgaged Properties (or any
            interest therein) to Borrower;

     (x)    the bankruptcy or insolvency of any fee owner of any of the
            Mortgaged Properties other than Borrower; or

     (xi)   any transfer or mortgage tax (or claim of any transfer or mortgage
            tax) arising from the transfer to Borrower or mortgage by the fee
            owner or Borrower of any of the Mortgaged Properties or any interest
            therein.

D. Notwithstanding the foregoing and subject to the last sentence of this
paragraph, the agreement of Lender not to pursue personal recourse liability as
set forth in this Section 11 above SHALL AUTOMATICALLY BECOME NULL AND VOID and
shall be of no further force and effect in the event (i) Borrower, any general
partner or member of Borrower, or any guarantor of the Note, files, or consents
to the filing of, any petition under the U.S. Bankruptcy Code respecting its or
their debts or (ii) any such petition shall have been filed against the
Borrower, any general partner of the Borrower, or any guarantor of this
Promissory Note, and the same is not dismissed within ninety (90) days of such
filing; except for an involuntary bankruptcy filed by Lender and provided
further, that if: (1) after ninety (90) days following the filing of an
involuntary bankruptcy proceeding, such proceeding is dismissed with prejudice
and without adversely affecting the enforceability or priority of any of the
Loan Documents; and (2) such dismissal occurs prior to the occurrence of any of
the following: (v) the entry of any order that adversely affects the
enforceability or priority of any of the Loan Documents (other than solely by
reason of the automatic stay), (w) the entry of any order granting any person
relief from the automatic stay to foreclose against, enforce any lien or
security interest, levy upon, or repossess any material assets of Borrower that
constitute a part of, or that relate to the Mortgaged Properties, or to
terminate any Management Agreement or Primary Lease, (x) the liquidation of any
material assets of Borrower that constitute a part of, or that relate to, the
Mortgaged Properties, (y) the entry of any order approving the rejection or
termination of any Primary Lease or any Management Agreement, or (z) the entry
of any order approving any plan of reorganization for Borrower; and (3)
throughout the period following the filing of such bankruptcy proceeding,
Borrower or one or more of Borrower and persons or entities having an interest
in Borrower have continued to make regular payments of debt service on a timely
basis in accordance with the provisions of the Loan Documents. Borrower or one
or more of Borrower and Guarantor shall be personally liable only for the actual
damages, losses, costs, and expenses (including attorneys' fees) incurred by
Lender (expressly including any diminution, loss or damage to the Collateral) as
a result of any such bankruptcy filing.

     12.  USURY

     No amounts under this Promissory Note or the Loan Documents shall be
charged, paid or collected from Borrower if the result of such charge payment or
collection would be to cause the loan evidenced hereby to be usurious under
applicable law. If, however, an amount is paid or collected which would
otherwise cause the loan to be usurious, such excess causing the Loan to be
usurious shall be deemed a payment of principal and shall be applied against and
shall reduce

                                       9

                                                               Borrower's
                                                               Initials:
                                                                        -----

<PAGE>   10

the then outstanding principal balance of the loan by a corresponding amount,
and no Prepayment Premium shall be charged on any such excess amount applied to
principal.

     Borrower agrees to pay an effective rate of interest which is the stated
rate provided for in this Promissory Note plus any additional rate of interest
resulting from any charges of interest or in the nature of interest paid or to
be paid in connection with the loan evidenced hereby, including without
limitation, all amounts paid by or on behalf of Borrower to Lender pursuant to
the terms of the Application.

13.  TRANSFERS

     Upon the transfer of this Promissory Note, Borrower hereby waiving advance
notice of any such transfer, Lender may assign all of its rights in, under and
to the Loan Documents, Proceeds, Property Income or Collateral, or any part
hereof, to the transferee who shall thereupon become vested with all rights
herein, or under applicable law, given to Lender with respect thereto, and
Lender shall thereafter forever be relieved and fully discharged from any
liability or responsibility under or with respect to this Promissory Note, and
the Loan Documents, Proceeds, Property Income and Collateral so transferred; but
Lender shall retain all rights hereby given to it with respect to any
obligations of the Borrower and the Loan Documents, Proceeds, Property Income or
Collateral not so transferred. Upon any such transfer, the term "Lender" as used
herein shall mean such transferee.

14.  SEVERABILITY

     In the event any one or more of the provisions contained in this Promissory
Note or the Loan Documents shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision of this Promissory Note or of the Loan
Documents, but this Promissory Note and the Loan Documents shall be construed as
if such invalid, illegal or unenforceable provision had never been contained
herein or therein.

15.  WAIVER OF TRIAL BY JURY

     BORROWER AND LENDER, BY ACCEPTANCE OF THIS PROMISSORY NOTE, HEREBY WAIVE
TRIAL BY JURY IN ANY COURT ACTION, PROCEEDING OR COUNTERCLAIM WHETHER IN
CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN
EVIDENCED BY THIS PROMISSORY NOTE, ANY APPLICATION FOR THE LOAN EVIDENCED BY
THIS PROMISSORY NOTE, THIS PROMISSORY NOTE, THE MORTGAGE OR THE LOAN DOCUMENTS
OR ANY ACTS OR OMISSIONS OF LENDER, ITS OFFICERS, EMPLOYEES, DIRECTORS OR AGENTS
IN CONNECTION THEREWITH.

                                       10

                                                               Borrower's
                                                               Initials:
                                                                        -----

<PAGE>   11

16.  JOINT AND SEVERAL LIABILITY

     If there shall be more than one (1) Borrower named in this Promissory Note,
then the obligations and liabilities of such parties as Borrower shall be joint
and several.

17.  REMEDIES CUMULATIVE

     The rights, powers and remedies of Lender permitted by law, equity or
contract or as set forth herein or in the Loan Documents shall be cumulative and
concurrent, and may be pursued singly, successively or together against Borrower
or the Mortgaged Property, the Collateral or the Property Income, at the sole
discretion of the Lender, and to the fullest extent permitted by law. Such
rights, powers and remedies shall not be exhausted by any exercise thereof but
may be exercised as often as occasion therefor shall occur. The failure to
exercise any such right, power or remedy shall in no event be construed as a
waiver or release of the same. Lender shall not by any act of omission or
commission be deemed to have waived any of its rights, powers or remedies under
this Promissory Note or the Loan Documents unless such waiver be in writing and
signed by Lender, and then only to the extent specifically set forth therein. A
waiver of a right in one event shall not be construed as continuing or as a bar,
or as a waiver of such right on a subsequent event.

18.  FEES AND COSTS

     Borrower further promises to pay upon demand all reasonable attorney's fees
and costs (including, without limitation, court costs and appraisal fees)
incurred by Lender in connection with any Event of Default under this Promissory
Note and in any proceeding, including all appeals, brought to enforce any of the
provisions of this Promissory Note or of the Loan Documents.

19.  TIME OF THE ESSENCE

     Time shall be of the essence in performance of all obligations of Borrower
under this Promissory Note and the Loan Documents including, without limitation,
the time periods provided for the curing of defaults.

20.  HEADINGS FOR CONVENIENCE

     Headings and captions used in this Promissory Note are inserted for
convenience of reference only and neither constitute a part of this Promissory
Note nor are to be used to construe or interpret any of the provisions hereof.

21.  NOTICES: HOW GIVEN

     Any notice required or permitted under this Promissory Note or under any
Loan Document shall be given in writing and shall be effective for all purposes
if hand delivered to the party designated below, or if sent by (a) certified or
registered United States mail, postage

                                       11

                                                               Borrower's
                                                               Initials:
                                                                        -----

<PAGE>   12

prepaid; or (b) expedited prepaid delivery service, commercial or United States
Postal Service, with proof of attempted delivery, addressed in either case as
follows:

<TABLE>
<CAPTION>
To Borrower:                                           To Lender:

<S>                                                    <C>
FelCor/MM S-7 Holdings, L.P.                           Massachusetts Mutual Life Insurance Company
c/o FelCor Lodging Trust Incorporated                  c/o David L. Babson and Company Incorporated
545 E. John Carpenter Freeway                          Real Estate Finance Group
Suite 1300                                             1295 State Street
Irving, TX 75062-3933                                  Springfield, MA 01111-0001
Attention: Andrew J. Welch or                          Attention: Senior Managing Director
           Joel M. Eastman

                                                       And

                                                       Teachers Insurance and Annuity Association
                                                       of America
                                                       730 Third Avenue
                                                       New York, NY 10017
                                                       Attention: Director Portfolio Management
                                                                  Mortgage and Real Estate

with a copy to:                                        with a copy to:

Jenkens & Gilchrist, P.C.                              Stutzman & Bromberg,
Fountain Place                                         A Professional Corporation
1445 Ross Avenue                                       2323 Bryan Street
Suite 3200                                             Suite 2200
Dallas, TX 75202-2799                                  Dallas, TX 75231
Attention: Robert W. Dockery                           Attention: John E. Bromberg
</TABLE>

or to such other address and person as shall be designated from time to time by
Lender or Borrower, as the case may be, in a written notice to the other given
in the manner provided for in this paragraph.

     The notice shall be deemed to have been given at the time of delivery if
hand delivered, or in the case of registered or certified mail, three (3)
Business Days after deposit in the United States mail, or if by expedited
prepaid delivery, upon first attempted delivery on a Business Day.

     A party receiving a notice which does not comply with the technical
requirements for notice under this paragraph may elect to waive any deficiencies
and treat the notice as having been properly given.

                                       12

                                                               Borrower's
                                                               Initials:
                                                                        -----

<PAGE>   13

22.  NO ORAL CHANGE

     This Promissory Note may not be modified, amended, waived, extended,
changed, discharged or terminated orally or by any act or failure to act on the
part of the Borrower or Lender, but only by an agreement in writing , intended
for that specific purpose and signed by the party against whom enforcement of
any modification, amendment, waiver, extension, change, discharge or termination
is sought.

23.  CROSS-DEFAULT

     A default under (a) any other note now or hereafter secured by the Loan
Documents, or (b) any of the Related Notes, or (c) any of the Related Loan
Documents, or (d) any other note now or hereafter secured by the Related Loan
Documents, constitutes a default under this Promissory Note and under the Loan
Documents; provided that, for any such default Borrower shall be entitled to the
same notice and right to cure, if any, under Section 7 of this Promissory Note,
as Borrower is entitled to under Section 7 of the Related Note. When a default
under any of the Related Notes constitutes an Event of Default under such
Related Note or the Related Loan Documents, respectively, an Event of Default
also will exist under this Promissory Note and the Loan Documents.

24.  APPLICABLE STATE LAW

     This Promissory Note shall be governed, construed, applied and enforced in
accordance with the laws of the State of _____________.

Federal Taxpayer I.D. No.              Borrower:

75-2871808                             FELCOR/MM S-7 HOLDINGS, L.P.,
                                       a Delaware limited partnership

                                       By: FelCor/MM S-7 Hotels, L.L.C.,
                                           a Delaware limited liability company

                                           By:
                                               ---------------------------------
                                               Joel M. Eastman
                                               Vice President

                                       13

                                                               Borrower's
                                                               Initials:
                                                                        -----

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