Document:

exv10w1

 

Exhibit 10.1

Execution Copy

DISTRIBUTION SERVICES AGREEMENT

     This Distribution Services Agreement (“Agreement”) is entered into as of September 30, 2005 by and
between Connetics Corporation, a Delaware corporation with its principal place of business located
at 3160 Porter Drive, Palo Alto, California 94304 (“Connetics”), and AmerisourceBergen Drug
Corporation, with its principal place of business located at 1300 Morris Drive, Chesterbrook,
Pennsylvania 19087 (“AmerisourceBergen”). Connetics and AmerisourceBergen are sometimes referred
to individually in this Agreement as a “Party,” and collectively as the “Parties.”

BACKGROUND

	A.	 	AmerisourceBergen provides distribution services for pharmaceutical companies, including but
not limited to logistics and inventory management services, administrative services, and
financial services; and Connetics wishes to purchase such services from AmerisourceBergen; and

	B.	 	AmerisourceBergen is willing to provide to Connetics and Connetics desires to obtain from
AmerisourceBergen certain additional services as needed and agreed upon by both Parties; and

	C.	 	Connetics and AmerisourceBergen desire to enhance the visibility of inventory management of
Products and assure adequate availability of supply of Products (as defined in this
Agreement).

     NOW THEREFORE, in consideration of the foregoing, the mutual representations contained in this
Agreement, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties agree as follows:

ARTICLE 1

Definitions

     As used in this Agreement, the capitalized terms listed below shall have the meanings set
forth. Terms not otherwise defined shall be deemed to have the meaning most commonly ascribed to
them in the pharmaceutical distribution industry.

Aggregate Inventory. “Aggregate Inventory” means, at any given time, the total amount of Products
in units that (i) AmerisourceBergen has on hand at all of its storage and/or distribution
facilities and (ii) AmerisourceBergen has on order from Connetics.

Average Weekly Movement. “Average Weekly Movement” means (as further clarified in Section 2.3.1),
at any given time, the total quantity of Products in units (sorted by NDC number)

 

* Portions
of this exhibit have been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

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that AmerisourceBergen has sold to Providers over the immediately preceding eight (8) weeks,
divided by eight (8).

Commitment Period. “Commitment Period” means July 1, 2005 through and including December 31, 2006,
unless this Agreement is terminated earlier under the provisions of Article 4.

Confidential Information. “Confidential Information” shall have the meaning set forth in Section
6.2.

Effective Date. “Effective Date” means the date of full execution of this Agreement.

Inventory Reports. “Inventory Reports” shall have the meaning set forth in Section 2.5.1.

Products. “Products” means all ethical pharmaceutical products that bear Connetics’ label and
packaging, whether currently or at any time in the future, which Connetics sells to wholesale
customers in the United States. A list of Connetics’ products is attached as Exhibit A to this
Agreement for convenient reference, but no failure to update Exhibit A in the future shall be
interpreted to mean that the Products are limited to those in the attached exhibit.

Providers. “Providers” means the purchaser(s) of Products from AmerisourceBergen in the United
States.

Sales Reports. “Sales Reports” shall have the meaning set forth in Section 2.5.1.

Services. “Services” shall have the meaning set forth in Article 2.

Service Level. “Service Level” shall have the meaning set forth in Section 2.10.

Service Fee. “Service Fee” means the fee payment to which AmerisourceBergen is entitled pursuant
to Section 3.1.

WAC. “WAC” means wholesale acquisition cost for Products as reported by Connetics from time to
time. It is understood that “WAC” is Connetics’ price to wholesalers without regard to any prompt
payment or other discounts, rebates, or chargebacks.

ARTICLE 2

The Services

     The Parties agree that AmerisourceBergen performs certain distribution and inventory
management services (collectively, the “Services”) from which Connetics may benefit. Connetics
hereby appoints AmerisourceBergen (and all of its distribution centers) as an authorized
distributor of record for the Products. The services include, but may not be limited to, the
following:

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	 	2.1	 	Administrative Services

	 	•	 	Sophisticated ordering technology
	 
	 	•	 	Consolidated accounts receivable management
	 
	 	•	 	Customer Service support
	 
	 	•	 	Licensed, environmentally controlled, PDMA compliant, secure facilities
	 
	 	•	 	Contract and chargeback administration

	 	2.2	 	Base Distribution Services.

	 	•	 	Daily consolidated deliveries to providers
	 
	 	•	 	Adequate working inventories to meet customer needs and Service Levels
	 
	 	•	 	Emergency shipments as may be agreed upon by AmerisourceBergen and its
customers
	 
	 	•	 	Returns processing

	 	2.3	 	Inventory Management Services.

          2.3.1 Inventory Levels. AmerisourceBergen will use reasonable efforts to maintain an
inventory level of [*] based on Average Weekly
Movement for the third calendar quarter of 2005, and thereafter to maintain a consistent inventory
level of [*] based on Average Weekly Movement for
the balance of the Commitment Period. [*] The Parties recognize that factors such as increased
customer demand, new product launches, additions of new customers, losses of customers,
seasonality, distribution center consolidations, openings of new distribution centers, etc., may
influence the total number of weeks of inventory and the Parties therefore agree to work together
in good faith to determine target inventory levels.

          2.3.2 Purchase Limits. Connetics agrees to ship all AmerisourceBergen purchase orders
in full provided they are consistent with product demand. Connetics has the right to question any
orders that exceed AmerisourceBergen’s Average Weekly Movement by [*] and has the right to cancel
any quantities for which AmerisourceBergen is not able to provide reasonable justifications and/or
explanations.

     2.4 Product Availability. AmerisourceBergen and Connetics will jointly use their
reasonable efforts to minimize Product shortages and maximize Product availability by agreeing to
the following:

	*	 	Portions of this exhibit have been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted portions.

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     (a) When placing orders, AmerisourceBergen will use reasonable efforts to
optimize the use of existing inventories across the entire AmerisourceBergen
network, including inventories held in AmerisourceBergen’s distribution center as a
broker fulfilling orders by chain warehouses, but in no event shall
AmerisourceBergen be required to transfer Products between distribution centers if
it will incur substantial and unreasonable costs to effectuate such transfer.

     (b) At any time that Product is on back order or there is otherwise limited
Product availability, and upon Connetics’ reasonable request, AmerisourceBergen will
implement more frequent order and receiving cycles to help reduce inventory
requirements.

     (c) AmerisourceBergen will not speculate by buying Product beyond target
inventory levels in order to take advantage of proposed or actual price increases.
Speculative Buying does not include buying that is a result of increased customer
demand, the addition of new customers, etc.

     (d) Connetics agrees to work with AmerisourceBergen to ensure that any
allocation program instituted by Connetics does not cause an out-of-stock situation
for AmerisourceBergen. If AmerisourceBergen validates to Connetics a potential
out-of-stock condition, Connetics will use commercially reasonable efforts to adjust
AmerisourceBergen’s allocation to meet demand.

     2.5 Data / Reporting Services.

          2.5.1 AmerisourceBergen shall prepare inventory reports detailing the status of its Aggregate
Inventory (“Inventory Reports”) and movement of Products (“Sales Reports”) by NDC number for the
duration of this Agreement. AmerisourceBergen shall provide Connetics with Inventory Reports
weekly and Sales Reports monthly. All such Inventory and Sales Reports shall be transmitted in EDI
852 and EDI 867 formats, respectively, and shall include the data elements that the Parties
mutually agree upon, including, at a minimum, Provider purchasing activity and other data elements
as set forth for each report on Exhibit B. In addition, at Connetics’ reasonable request,
AmerisourceBergen shall also furnish to Connetics a “morgue” report, indicating Product inventory
that is eligible for return to Connetics and has been removed from on-hand inventory reports.

          2.5.2 If AmerisourceBergen, due to contractual requirements, is required to block data in the
EDI 867 that would identify a Provider, AmerisourceBergen will, at a minimum, provide Connetics
with zip code level reports, except where AmerisourceBergen has a contractual obligation not to
provide any data including blinded data.

          2.5.3 Within 30 days after entering into this Agreement, the Parties shall examine and test
the capability of their respective EDI systems and complete implementation of a mutually agreeable
system whereby transfers of information can be made effectively on a

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consistent basis. In the event that critical internal support systems and electronic
communication links, including EDI, are not available for five business days, the Parties will
cooperate to promptly implement substitute procedures to document the information customarily sent
by EDI and prevent interruptions to each other’s business.

     2.6 Provider Order Monitoring. If Connetics suspects that a Provider or an
AmerisourceBergen customer is speculative buying and notifies AmerisourceBergen, AmerisourceBergen
agrees to cooperate with Connetics in any investigation of such speculative buying. If it is
determined that a Provider is speculating, AmerisourceBergen will implement additional steps to
limit Provider purchases to reasonable levels. AmerisourceBergen agrees not to sell Product to or
order Product from known secondary sources or other wholesalers, except for sales to hospital
supply companies and other wholesalers/distributors who are duly listed on the EDI 867 reports.

     2.7 Purchase Requirement. AmerisourceBergen agrees to purchase 100% of its
requirements of Connetics Products directly from Connetics.

     2.8 Processing of Credits, Etc. Except for recalls, AmerisourceBergen shall perform
all the work associated with credits, reconciliations, and returns at no additional cost to
Connetics.

     2.9 Connetics’ Wholesale Distribution Policy. A copy of Connetics’ current Wholesale
Distribution Policy is attached to this Agreement as Exhibit C. The Parties acknowledge that, due
to the nature of its business, AmerisourceBergen does not meet certain elements of that policy. In
particular, the Parties agree to the following clarifications to the policy as it relates to
AmerisourceBergen:

     [*]

	*	 	Portions of this exhibit have been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted portions.

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     [*]

     2.10 Service Level. During the term of this Agreement, AmerisourceBergen agrees
to service Provider orders for Products at a [*] or greater service level (the “Service Level”)
each calendar quarter.

ARTICLE 3

Consideration and Payment; Risk of Loss

     3.1 Service Fee.

          1
(a) In recognition of AmerisourceBergen’s performance of the Services,
Connetics will pay AmerisourceBergen a fee equal to a percentage of
AmerisourceBergen’s gross purchases of Connetics Products at [*] during each
calendar quarter (the “Service Fee”), as follows: for the quarter ending September
30, 2005, a fee equal to [*] during that quarter; and for each
subsequent quarter during the Commitment Period, a fee equal to [*] during each
quarter. If on September 30, 2005, AmerisourceBergen is not holding at least [*]
weeks of inventory, the Service Fee for the quarter ended on that
date shall be [*] . In addition to the Service Fee, subject to the
provisions of this Section, AmerisourceBergen shall be entitled to retain the full
benefit of any other programs or price concessions that Connetics offers, including
but not limited to price increases, non-launch discounts, prompt payment discounts,
and any other deals and/or incentives that Connetics offers on Products.

          (b) AmerisourceBergen will invoice Connetics within 25 days after the close of
each calendar quarter during the Commitment Period. Connetics shall pay each
invoice no later than 30 days from the date of the invoice.

	*	 	Portions of this exhibit have been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted portions.

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     (c)

     (i) It is the intention of the Parties that, over the Commitment
Period, AmerisourceBergen shall receive a benefit from this Agreement of at
least [*] during
the Commitment Period, and that that benefit be derived from a combination
of the Service Fee and the other commercial activities described in
subsection 3.1(a). Accordingly, in addition to the quarterly
invoices, AmerisourceBergen shall reconcile its records as of
[*] to determine the total benefit it has received during
the Commitment Period. [*]

     [*]

     (d) Examples of how and when fees are or might be payable to AmerisourceBergen
pursuant to this Section 3.1 are set forth on Exhibit D. Exhibit D is attached
hereto for reference purposes only. In the event of any conflict between the
interpretation of Exhibit D and the interpretation of the Agreement (as it may be
amended from time to time), the terms of the Agreement shall govern.

     3.2 Return Credit. During the Commitment Period, Connetics will credit
AmerisourceBergen for returns for which AmerisourceBergen submits a return goods authorization
request, at a rate equal to [*] AmerisourceBergen will make all returns in accordance
with the terms of Connetics’ then-current Return Goods Policy, including specifically that
AmerisourceBergen shall have the right to return any Product dated up to six months prior to
expiration.

	*	 	Portions of this exhibit have been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted portions.

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     3.3 Terms of Payment. Unless otherwise agreed, AmerisourceBergen will pay all
Connetics’ invoices for undisputed orders in accordance with the due dates specified; provided,
however, that the [*] discount set forth in Section 2.9 will only be applied to payments received by
Connetics on or before the 30th day from the date of the applicable invoice, and not to
payments that are received by Connetics on or after the 31st day from the date of the
applicable invoice. Connetics agrees to provide AmerisourceBergen with a monthly accounts
receivable electronic statement of all open transactions.

     3.4 Shipment; Title and Risk of Loss. Connetics shall cause all orders to be shipped
to AmerisourceBergen FOB destination, freight paid by Connetics. Connetics shall insure each
shipment. Title to and risk of loss of Products sold pursuant to this Agreement shall pass to
AmerisourceBergen upon delivery at the designated destination.

ARTICLE 4

Term and Termination; Remedies

     This Agreement shall remain in full force from the Effective Date through December 31, 2006.
Either Connetics and/or AmerisourceBergen may terminate this Agreement upon the earlier of (a) the
mutual written agreement of Connetics and AmerisourceBergen; (b) a breach by the other Party of any
of the terms of this Agreement that is not cured within 30 days after written notification of
breach by the non-breaching Party; (c) 30 days’ prior written notice of termination without cause
by Connetics or AmerisourceBergen to the other Party; or (d) the institution (whether voluntarily
or involuntarily) of bankruptcy, insolvency, liquidation or similar proceedings by or against
Connetics or AmerisourceBergen, or the assignment of Connetics’ or AmerisourceBergen’s assets for
the benefit of creditors.

ARTICLE 5

Warranty and Indemnity

     5.1 Warranty. Connetics guarantees to AmerisourceBergen that each shipment or other
delivery of any Product pursuant to this Agreement to or on the order of AmerisourceBergen or any
of its subsidiaries or affiliates (a) will not be, at the time of such shipment or delivery,
adulterated, misbranded, or otherwise prohibited within the meaning of the Federal Food, Drug and
Cosmetic Act, 21 U.S.C.A. 301 et seq., as amended, and in effect at the time of shipment or
delivery (the Act) or within the meaning of any applicable state or municipal law in which the
definition of adulteration or misbranding are substantially the same as those contained in the Act;
and (b) is not, at the time of such shipment or delivery, merchandise which may not be introduced
or delivered for introduction into interstate commerce under the provisions of sections 301, 404 or
505 of the Act (21 U.S.C.A. 331, 344 and 355); and (c) such merchandise is merchandise which may be
legally transported or sold under the provisions of any other applicable federal, state or
municipal law.

     5.2 Product Indemnification. Connetics agrees to defend, indemnify and hold
AmerisourceBergen and each of its subsidiaries and affiliates harmless against any and all

	*	 	Portions of this exhibit have been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted portions.

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claims, losses, damages, and liabilities whatsoever (including expenses and fees), arising as
a result of: (a) any actual or asserted violation(s) of the Act or any other federal, state or
local law or regulation by virtue of which Products sold pursuant to this Agreement are alleged or
determined to be adulterated, misbranded, mislabeled or otherwise not in full compliance with or in
contravention of any federal, state or local law or regulation; (b) the possession, distribution,
sale and/or use of, or by reason of the seizure of, any of Connetics’ products, including any
prosecution or action by any governmental body or agency or by any private party, including claims
of bodily injury, death or property damage; and (c) any actual or asserted claim that the Products
infringe any proprietary or intellectual property rights of any person, including without
limitation the infringement of any trademarks or service names, trade names, trade secrets,
inventions, patents or the violation of any copyright laws or any other applicable federal, state
or local laws; provided, however, that Connetics’ obligations pursuant to this Section 5.2
expressly exclude any such liability, loss or damage to the extent resulting from the gross
negligence or willful malfeasance of AmerisourceBergen.

     5.3 Insurance. Connetics agrees to maintain primary and noncontributing Products
Liability Insurance of not less than U.S. $5,000,000.00 per occurrence, Combined Single Limit
(Bodily Injury and Property Damage) including AmerisourceBergen and its subsidiaries and affiliates
as Additional Insured.

     5.4 General Indemnity. Each Party shall indemnify, defend and hold harmless the other
Party, its agents, servants, employees, officers, directors, attorneys, subsidiaries, affiliates,
parent and assigns from and against all claims (including, but not limited to, product liability
claims and claims relating to “class of trade” pricing), losses, damages, liabilities and expenses
(including, but not limited to, attorneys’ fees and court costs) arising as a result of negligence,
illegality or wrongdoing of any kind alleged or actual on the part of the indemnifying Party. This
is in addition to any remedies specifically set forth elsewhere in this Agreement.

ARTICLE 6

Miscellaneous

     6.1 Nature of Relationship. The relationship between Connetics and AmerisourceBergen
is that of service buyer-seller, and no agency, franchise, partnership, joint venture or other
relationship shall be construed to exist between the Parties. Nothing contained in this Agreement
shall be construed as giving AmerisourceBergen any exclusive rights as a wholesaler of Products,
whether in any territory or with respect to any class of customers for Products. Connetics
reserves the right to appoint additional distribution service suppliers and to sell directly to
customers, including without limitation, the U.S. Government (including any agencies, departments
or services thereof), qualifying tax-supported and non-profit institutions, mail service and other
retail providers, and such other accounts as Connetics deems appropriate.

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     6.2 Confidentiality.

          6.2.1 Protection of Confidential Information. During the term of this Agreement, each
Party, its respective agents, employees and representatives
(collectively, the “receiving Party”)
may receive or have access to confidential materials and information of the other Party (the
“disclosing Party”). The Parties shall only use the Confidential Information of the other Party
for the purpose of fulfilling its obligations under this Agreement. All such materials and
information (including, but not limited to the terms of this Agreement, Product information,
operations, methods, strategies, formulas, price lists, data discount programs, incentives,
rebates, records of unit movement for Products, shipping and warehousing, and confidential
proprietary information from third parties), are collectively referred to as “Confidential
Information” and constitute the property of the disclosing Party. During the term of this
Agreement and for a period of seven years after the expiration or termination of this Agreement
(except as required to comply with any applicable reporting obligations under a federal or state
health care program) the receiving Party shall not use or disclose to third persons any such
Confidential Information without the disclosing Party’s prior written consent, excepting (a)
disclosures made on a confidential basis to and use by the directors, officers, employees, and
agents of the receiving Party who have a reasonable need to know such information in connection
with the receiving Party’s performance of this Agreement, and (b) disclosures that are required by
law, as reasonably determined by the receiving Party or its legal counsel, or are made on a
confidential basis to the receiving Party’s attorneys, accountants, and other professional advisors
in connection with matters relating to this Agreement.

          6.2.2 Return of Confidential Information. Upon termination of this Agreement (for any
reason) each Party upon written request of the disclosing Party will promptly: (a) return to the
other Party all documentation and other materials (including copies of original documentation or
other materials) containing any Confidential Information of the other Party; or (b) certify to the
other Party, pursuant to a certificate in form and substance reasonably satisfactory to the other
Party, as to the destruction of all such documentation and other materials, except to the extent
otherwise required by law.

     6.3. Assignment and Delegation. Neither Party may assign this Agreement without the
prior written consent of the other Party; provided, however, that either Party may assign this
Agreement without such consent to an Affiliate. For purposes of this Section 6.3, an Affiliate
shall be defined to include any company controlling, controlled by, or under common control with
AmerisourceBergen or Connetics as the case may be through stock ownership, direct or indirect.
This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns
of the Parties.

     6.4 Governing Law. This Agreement shall be interpreted in accordance with, and
governed by, the laws of the State of Delaware without regard to any conflicts of laws’ rules.

     6.5 Severability; Waiver. If a court of competent jurisdiction holds any provision of
this Agreement to be invalid, illegal, or unenforceable, then: (a) such provision will be deemed
amended to conform to applicable laws of such jurisdiction so as to be valid and enforceable, or,
if it cannot be so amended without materially altering the intention of the Parties, it will be

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stricken; (b) the validity, legality and enforceability of such provision will not in any way
be affected or impaired thereby in any other jurisdiction; and (c) the remaining provisions of this
Agreement will remain in full force and effect. No term or condition of this Agreement is
considered waived unless reduced to writing and duly executed by an officer of the waiving Party,
and any waiver by any Party of a breach of any term or condition of this Agreement is not
considered as a waiver of any subsequent breach of the same or any other term or condition.

     6.6 Statute of Frauds. All EDI transmissions made pursuant to this Agreement shall be
deemed to be the same as written communication for all purposes, and for all applications of law
and statutes, including but not limited to, the Statue of Frauds under the California Uniform
Commercial Code.

     6.7 Force Majeure. Neither Party shall be liable for delay in delivery or
nonperformance in whole or in part nor shall the other Party have the right to terminate this
Agreement where delivery or performance has been affected by a condition of force majeure. For
purposes of this Agreement, force majeure means a condition which results from causes beyond a
Party’s reasonable control, including, but not limited to, acts of God, acts of the other Party,
shortages, fires, labor disputes, strikes, floods, epidemics, quarantines, war, riot, delay in
transportation, compliance with any applicable governmental regulation or order, whether or not it
later proves to be invalid, or inability to obtain labor, materials or manufacturing facilities.
If either Party is affected by a force majeure event, such Party shall, within 10 days of its
occurrence, give notice to the other Party stating the nature of the event, its anticipated
duration and any action being taken to avoid or minimize its effect. The suspension of performance
shall be of no greater scope and no longer duration than is reasonably required and the
non-performing Party shall use its best efforts to remedy its inability to perform.

     6.8
Notices. All notices to either Party (each a
“Notice”) shall be in writing, shall
refer specifically to this Agreement and shall be hand delivered or sent by express courier
service, costs prepaid, or by facsimile to the respective addresses specified below (or to such
other address as may be specified by Notice to the other Party):

If to AmerisourceBergen, to:

AmerisourceBergen Drug Corporation

1300 Morris Drive

Chesterbrook, PA 19087

Attn: Senior Vice President, Supply Chain Management

With a copy to: General Counsel

Facsimile No.: 610 727 3600

If to Connetics, to:

Connetics Corporation

3160 Porter Drive

Palo Alto, California 94304

Attention: Chief Commercial Officer

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With
a copy to: General Counsel

Facsimile No.: 1-650-856-2817

     6.9 Entire Agreement. Except for the Continuing Guaranty and Indemnification
Agreement attached hereto as Exhibit E (the “Continuing Guaranty”), this Agreement constitutes the
entire agreement between the Parties and supersedes all prior contracts, agreements, and
understandings between the Parties whether written or oral with regard to the subject matter of
this Agreement. In particular, but without limiting the generality of the foregoing, if there are
any conflicts between the terms of Sections 5.1, 5.2 and 5.3 of this Agreement and the Continuing
Guaranty, the terms of the Continuing Guaranty shall govern, whether or not the Continuing Guaranty
is executed before or after the date of this Agreement. This Agreement may not be amended except
in writing signed by authorized representatives of the Parties. Notwithstanding Connetics is the
sole signatory to the Continuing Guaranty, the Continuing Guaranty may not be amended or otherwise
modified in any manner except pursuant to a separate agreement in writing signed by authorized
representatives of the Parties.

     6.10. Limitation of Liability. In no event shall AmerisourceBergen be liable to
Connetics for any special, consequential, incidental, or indirect damages, however caused, on any
theory of liability and whether or not AmerisourceBergen has been advised of the possibility of
such damages.

     6.11 Publicity. Neither Party shall have the right to issue a press release,
statement or publication regarding the terms and conditions of or the existence of this Agreement.
Notwithstanding the foregoing, AmerisourceBergen acknowledges and agrees that Connetics may
publicly file a copy of this Agreement as an exhibit to its reports with the U.S. Securities and
Exchange Commission if Connetics determines such filing to be necessary, provided that Connetics
shall take all reasonable and lawful actions to obtain confidential treatment with respect to the
provisions of this Agreement that Connetics or AmerisourceBergen reasonably deem to be
competitively sensitive information.

     6.12 Legal Compliance. It is the intent of the Parties to comply during the term of
this Agreement, with all federal, state, professional and other laws, statutes, regulations, rules,
and policies applicable to the subject matter of the Agreement and the relationship of the Parties,
including, without limitation, any reporting obligations under any state or federal law. In the
event there is any change in law, or regulation, or their interpretation, that has the effect of
prohibiting any right or obligation of a Party or materially affects such right or obligation, then
such Party may upon notice to the other Party immediately terminate this Agreement.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

	 	 	 
	Connetics Corporation

	 	AmerisourceBergen Drug Corporation
	 
	 	 
	By:
/s/ Greg Vontz

	 	By: /s/ Anthony Jackson
	 
	 	 
	Name:
Greg Vontz

	 	Name: Anthony Jackson
	 
	 	 
	Title: President

	 	Title: VP Branded Rx
	 
	 	 
	EDI Contact Person:

	 	EDI Contact Person:
	 
	 	 
	Janelle Beeson

	 	Donna Dormer
	jbeeson@connetics.com

	 	ddormer@amerisourcebergen.com
	650-843-2800

	 	610-727-7178

Page
13

 

Exhibit A

Products

	 	 	 	 	 
	Product	 	SKU	 	NDC Number
	Luxíq
	 	150 g	 	63032-021-01
	Luxíq
	 	100g	 	63032-021-00
	Luxíq
	 	50g	 	63032-021-50
	OLUX
	 	100g	 	63032-031-00
	OLUX
	 	50g	 	63032-031-50
	Soriatane
	 	25 mg	 	63032-091-25
	Soriatane
	 	10 mg	 	63032-090-25
	Evoclin (clindamycin foam)
	 	100g	 	63032-061-00
	Evoclin (clindamycin foam)
	 	50g	 	63032-061-50

Exhibit to Distribution Services Agreement

 

 

Exhibit B

See Article 2

Data Requirements for 867 and 852 Data

from each AmerisourceBergen Distribution Center

With respect to each AmerisourceBergen distribution center:

Data Elements for “852” Report

	 	•	 	Current inventory quantity available—indicates the quantity available to be sold or
shipped
	 
	 	•	 	Quantity on order, not yet received—total quantity expected to be received from
Supplier for current reporting period, but not yet received
	 
	 	•	 	Quantity sold
	 
	 	•	 	Quantity out of stock
	 
	 	•	 	Additional demand quantity—sums the last three months of order quantity from order
detail file, subtracts the sum of the last three months of credit quantity from credit
detail file, and divides by number of days over past three months
	 
	 	•	 	Planned inventory quantity for replenishment purposes

Data Elements for “867” Report:

Each sale to an end customer or transfer between distribution centers must be reported. If
AmerisourceBergen, due to contractual requirements, is required to block data that would identify a
Provider, AmerisourceBergen will, at a minimum, provide Connetics with zip code level reports,
except where AmerisourceBergen has a contractual obligation not to provide any data including
blinded data.

	 	•	 	Distribution Center Name
	 
	 	•	 	Distribution Center DEA number
	 
	 	•	 	Sold to Customer Name
	 
	 	•	 	Sold to Customer Account Number
	 
	 	•	 	Sold to Customer Address
	 
	 	•	 	Sold to Customer City
	 
	 	•	 	Sold to Customer State
	 
	 	•	 	Sold to Customer Zip Code
	 
	 	•	 	Type of Sale (Return or Sale)
	 
	 	•	 	Date of Sale
	 
	 	•	 	Quantity
	 
	 	•	 	Product Name
	 
	 	•	 	Product Item Number
	 
	 	•	 	Invoice Amount

Exhibit to Distribution Services Agreement

 

 

Exhibit C

See Article 2

Connetics Corporation Wholesale Distribution Policy

Connetics (CNCT) criteria for Wholesale Account status is as follows:

	 	1.	 	The Wholesale Account must provide proof it is a full service drug distributor and
maintain inventories consisting primarily of pharmaceutical items from a variety of
suppliers. *

	 	2.	 	The Wholesale Account’s customers must consist of firms and institutions that are
pharmacies or physicians not under direct or indirect common ownership with both the
distributor and each other.

	 	3.	 	The account’s financial stability must have the approval of CNCT Credit
and Collection Department.

	 	4.	 	The Wholesale Account must comply with the standards required for the promotion of
CNCT’s products and must be willing to participate in promotional or special programs
within product labeling.

	 	5.	 	The Wholesale Account must submit two references that are not affiliated with each
other, a bank reference, DEA number, and state wholesale drug license number. This
information should be submitted to CNCT Credit and Collection Department.

	 	6.	 	If the account is delinquent, in partial or full payment of a purchase order beyond
sixty (60) days from the due date, CNCT reserves the right to terminate trade with the
account.

	 	7.	 	The Wholesale Account must agree to abide by CNCT Return Goods Policy and agree to
assist CNCT in the event of a product recall.

	 	8.	 	All CNCT, products purchased and sold by a Wholesale Account must be received from
CNCT, Nashville, TN.

	 	9.	 	The Wholesale Account will maintain on a continuous basis, designated staff and
resources for prompt management of technical complaints related to CNCT products, in
compliance with CNCT SOP for handling technical complaint reports. The Wholesale Account
will be responsible for compliance with current FDA, local and national regulations,
related to handling and shipping of potentially biohazardous materials from patients to the
Wholesale Account, and from the Wholesale Account to CNCT. CNCT reserves the right to
audit a Wholesale Account’s records relating to the purchase and sale of CNCT products
under this policy.

	 	10.	 	Any material violation by the Wholesale Account of or the inability by the Wholesale
Account to substantially meet, any of these criteria may result in termination of status as
a Wholesale Account, in CNCT’s sole discretion.

	 	11.	 	CNCT reserves the right to reassess the Wholesale Account’s status and designation as
an authorized CNCT distributor in the event of any change or transfer in ownership or
control of the Wholesale Account.

	 	12.	 	All current and future CNCT products will not be automatically included under this
policy. Each product will require written notification to the Wholesale Account from CNCT
for inclusion in the program.

	 	13.	 	New Wholesale Account applications once competed and accompanied by required
documentation may require thirty (30) business days for processing and review before a
final decision of approval/denial is made.

	 	14.	 	CNCT shall use its bet efforts to fill orders, but shall not be liable for
non-performance or delays caused by a shortage of raw materials; manufacturing problems;
acts of God; or other causes beyond its reasonable control. Wholesale Account agrees that
in such events CNCT may allocate products covered by this policy, in its sole discretion,
without liability.

	 	15.	 	CNCT reserves the right to cancel or change any or all of these criteria at any time.
CNCT also reserves the right to sell direct to retail pharmacies who meet our criteria for
direct purchases.

	 	16.	 	Orders must be for a minimum of $5,000.00, and be for products available for immediate
shipment at the time the order is received by CNCT. Any products on backorder do no
qualify as part of the order minimum total.

	 	17.	 	Orders must be in multiples of unit case sizes.

	 	18.	 	The Wholesale Account agrees to cooperate with CNCT in approving drop shipments to
accounts designated.

	 	19.	 	Terms and conditions: 2% 30 days, Net 31.

	 	*	 	Prospective accounts who are not active members of HDMA must demonstrate to CNCT’s
satisfaction that they meet HDMA active Membership criteria and are also subject to CNCT’s
current need for additional distribution centers in a particular are of market

Exhibit to Distribution
Services Agreement

 

 

Exhibit D

Service Fee Reference Guide

(Reference Purpose Only — See Article 3 for Fee and Payment Details)

This Exhibit D is intended to serve as a reference guide only and shall not otherwise be
incorporated into the terms and conditions of the Agreement. In the event of any conflict between
the interpretation of this Exhibit D and the interpretation of the Agreement (as it may be amended
from time to time), the terms of the Agreement shall govern all aspects of the relationship between
Connetics and AmerisourceBergen. Capitalized terms not defined in this Exhibit D shall have the
meaning ascribed to them in the Agreement. “%” amounts set forth below represent the percentage of
Connetics Products purchased by AmerisourceBergen during the applicable periods.

[ * ]

Exhibit to Distribution Services Agreement

	*	 	Portions of this exhibit have been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

Exhibit E

Continuing Guaranty and Indemnification Agreement

[ * ]

Exhibit to Distribution Services Agreement

	*	 	Portions of this exhibit have been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted portions.<PAGE>
                                                                     EXHIBIT 4.1

                               STATE OF MARYLAND                     370884

                                 DEPARTMENT OF
                            ASSESSMENTS AND TAXATION
              301 West Preston Street  Baltimore, Maryland  21201

                                                            DATE:  JUNE 22, 1995

     THIS IS TO ADVISE YOU THAT THE ARTICLES OF AMENDMENT AND RESTATEMENT FOR
FELCOR SUITE HOTELS, INC. WERE RECEIVED AND APPROVED FOR RECORD ON JUNE 22,
1995 AT 11:22 AM.

FEE PAID:           50.00

[SEAL]

                                                              HARRY J. NOONAN
                                                              CHARTER SPECIALIST
<PAGE>
                     ARTICLES OF AMENDMENT AND RESTATEMENT
                                       OF
                           FELCOR SUITE HOTELS, INC.

      Felcor Suite Hotels, Inc., a Maryland corporation (the "Corporation"),
certifies as follows:
     FIRST:    The Corporation desires to amend and restate its Charter as
currently in effect, and, upon acceptance for record of these Articles of
Amendment and Restatement by the State Department of Assessments and Taxation
of the State of Maryland, the provisions set forth in these Articles of
Amendment and Restatement will be all of the provisions of the Charter of the
Corporation as currently in effect.
     SECOND:   The Charter of the Corporation is hereby amended and restated in
its entirety to read as set forth in Exhibit A attached hereto.
     THIRD:    The amendment and restatement of the charter of the Corporation
set forth in these Articles of Amendment and Restatement was advised by the
Board of Directors of the Corporation and was approved by the sole stockholder
of the Corporation.
     FOURTH:   The current address of the principal office of the Corporation
is 11 East Chase Street, Baltimore, Maryland 21202.
     FIFTH:    The name and address of the current resident agent of the
Corporation is CSC-Lawyers Incorporating Service Company, 11 East Chase Street,
Baltimore, Maryland 21202.
     SIXTH:    The current number of directors of the Corporation is one (1),
which number may be increased or decreased from time to
<PAGE>
time pursuant to the Charter and the Bylaws of the Corporation. The name of the
current sole director of the Corporation is Thomas J. Corcoran, Jr.
     SEVENTH:  The amendment set forth in these Articles of Amendment and
Restatement does not increase the authorized capital stock of the Corporation.
     IN WITNESS WHEREOF, the Corporation has caused these Articles of Amendment
and Restatement to be executed in its name and on its behalf as of the 22nd day
of June 1995, by its President, who acknowledges that these Articles of
Amendment and Restatement are the act of the Corporation and certifies that, to
the best of his knowledge, information and belief and under penalties for
perjury, all matters and facts contained in these Articles of Amendment and
Restatement are true in all material respects.

    ATTEST:                               FELCOR SUITE HOTELS, INC.

   /s/ NICHOLAS R. PETERSON               By: /s/ THOMAS J. CORCORAN, JR. [SEAL]
   ------------------------                   ---------------------------
   Nicholas R. Peterson                       Thomas J. Corcoran, Jr.
   Assistant Secretary                        President

                                      - 2 -
<PAGE>

                                                                       EXHIBIT A

                                   ARTICLE I.

         I, David A. Gibbons, whose post office address is 10 Light Street,
Baltimore, Maryland 21202, being at least 18 years of age, hereby form a
corporation under the Maryland General Corporation Law.

                                  ARTICLE II.
                                      NAME

                 The name of the Corporation is:

                           FelCor Suite Hotels, Inc.

                                  ARTICLE III.
                         NATURE OF BUSINESS OR PURPOSES

                 The nature of the business or purposes to be conducted or
promoted by the Corporation is to engage in any lawful act or activity for
which corporations may be organized under the Maryland General Corporation Law.

                 In addition to the powers and privileges conferred upon the
Corporation by law and those incidental thereto, the Corporation shall possess
and may exercise all the powers and privileges which are necessary or
convenient to the conduct, promotion or attainment of the business or purposes
of the Corporation.

         Without limiting the generality of the foregoing purpose, at such time
or times as the Board of Directors determines that it is in the interest of the
Corporation and its stockholders that the Corporation engage in the business
of, and conduct its business and affairs so as to qualify as, a real estate
investment trust (as that phrase is defined in the Internal Revenue Code of
1986, as amended (the "Code")), the purpose of the Corporation shall include
engaging in the business of a real estate investment trust ("REIT").  This
reference to such purpose shall not make unlawful or unauthorized any otherwise
lawful act or activity that the Corporation may take that is inconsistent with
such purpose.

                                  ARTICLE IV.
                      PRINCIPAL OFFICE AND RESIDENT AGENT

                 The address of the Corporation's principal office in the State
of Maryland is 11 East Chase Street, Baltimore, Maryland 21202.  The name and
address of its resident agent is CSC-Lawyers Incorporating Service Company, 11
East Chase Street, Baltimore, Maryland  21202.

<PAGE>
                                   ARTICLE V.
                                 CAPITAL STOCK

         A.      Authorized Shares.  The total number of shares of capital
stock that the Corporation shall have authority to issue is Sixty Million
(60,000,000) shares, consisting of Fifty Million (50,000,000) shares of Common
Stock, of the par value of One Cent ($0.01) each, and Ten Million (10,000,000)
shares of Preferred Stock, of the par value of One Cent ($0.01) each, amounting
in aggregate par value of $600,000.

         B.      The following is a description of each class of the capital
stock that the Corporation shall have authority to issue, including the
preferences, conversion and other rights, voting powers, restrictions,
limitations as to dividends, qualifications, and terms and conditions of
redemption thereof to the extent applicable thereto:

                 Common Stock.

                 (1)      Dividend Rights.  Subject to the rights of any series
of Preferred Stock created pursuant to the further provisions of this Section B
of this Article and subject to the terms of Article V hereto, the holders of
shares of Common Stock shall be entitled to receive such dividends as may be
declared thereon by the Board of Directors out of funds legally available
therefor.

                 (2)      Voting Rights.  Subject to the rights of the holders
of any series of Preferred Stock created pursuant to the further provisions of
this Section B of this Article, the holders of shares of the Common Stock shall
possess all of the voting power of the capital stock of the Corporation and
shall have the exclusive right to vote upon, authorize and approve any and all
matters which may properly come before the stockholders of the Corporation.
Each holder of shares of Common Stock shall be entitled to one vote for each
share of Common Stock held by such stockholder.

                 (3)      Rights Upon Liquidation.  Subject to the rights of
any series of Preferred Stock created pursuant to the further provisions of
this Section B of this Article and subject to the terms of Article V hereto, in
the event of any voluntary or involuntary liquidation, dissolution or winding
up of, or any distribution of the assets of, the Corporation, each holder of
shares of Common Stock shall be entitled to receive, ratably with each other
holder of shares of Common Stock, that portion of the assets of the Corporation
available for distribution to the holders of its Common Stock.

                 Preferred Stock.

                 Subject to the provisions of sections D. and E. of this
Article V, the Board of Directors of the Corporation is hereby authorized and
empowered to classify or reclassify, in one or more series, any of the unissued
shares of the Preferred Stock of the Corporation by establishing the number of
shares of such series and by setting, changing or eliminating any of the
preferences, conversion or other rights, voting powers, restrictions,
limitations as to dividends, qualifications, or terms and condition of
redemption of such shares, all of which shall be set forth in articles
supplementary to this Charter executed, acknowledged, filed and

                                      -2-
<PAGE>
recorded in the manner required by the Maryland General Corporation Law
("Articles Supplementary"), and as may be permitted by the Maryland General
Corporation Law.

         C.      Issuance of Stock.  The Board of Directors is hereby
authorized and empowered to authorize the issuance by the Corporation from time
to time of shares of any class of capital stock of the Corporation, whether now
or hereafter authorized, or securities convertible into shares of capital stock
of any class or classes, whether now or hereafter authorized, for such
consideration and on such terms and conditions as may be deemed advisable by
the Board of Directors and without any action by the stockholders.

         D.      Restrictions on Transfer; Designation of Shares-in-Trust.

                 (1)      Definitions.  For purposes of this Section D, the
following terms shall have the following meanings:

                          "Beneficial Ownership" shall mean ownership of Equity
Stock by a Person who would be treated as an owner of such shares of Equity
Stock either directly or indirectly through the application of Section 544 of
the Code, as modified by Section 856(h)(1)(B) of the Code.  The terms
"Beneficial Owner," "Beneficially Owns" and "Beneficially Owned" shall have
correlative meanings.

                          "Beneficiary" shall mean, with respect to any Trust,
one or more organizations described in each of Section 170(b)(1)(A) and Section
170(c) of the Code which are named by the Corporation as the beneficiary or
beneficiaries of such Trust, in accordance with the provisions of subsection
E.(1) of this Article V.

                          "Board of Directors" shall mean the Board of
Directors of the Corporation.

                          "Bylaws" shall mean the Bylaws of the Corporation, as
amended.

                          "Code" shall mean the Internal Revenue Code of 1986,
as amended from time to time.

                          "Constructive Ownership" shall mean ownership of
Equity Stock by a Person who would be treated as an owner of such shares of
Equity Stock either directly or indirectly through the application of Section
318 of the Code, as modified by Section 856(d)(5) of the Code.  The terms
"Constructive Owner," "Constructively Owns" and "Constructively Owned" shall
have correlative meanings.

                          "Equity Stock" shall mean authorized capital stock of
the Corporation that is either Preferred Stock or Common Stock and shall
include all shares of Preferred Stock or Common Stock that are held as
Shares-in-Trust in accordance with the provisions of section E. of this Article
V.

                          "Market Price" shall mean, on any date and with
respect to any Equity Stock, the average of the Closing Price for the five
consecutive Trading Days ending on such

                                      -3-
<PAGE>
date.  The "Closing Price" shall mean, on any date and with respect to any
Equity Stock, the last sale price, regular way, or, in case no such sale takes
place on such day, the average of the closing bid and asked prices, regular
way, of such Equity Stock, in either case as reported in the principal
consolidated transaction reporting system with respect to securities listed or
admitted to trading on the New York Stock Exchange or, if such Equity Stock is
not listed or admitted to trading on the New York Stock Exchange, as reported
in the principal consolidated transaction reporting system with respect to
securities listed on the principal national securities exchange on which such
Equity Stock is listed or admitted to trading or, if such Equity Stock is not
listed or admitted to trading on any national securities exchange, the last
quoted price, or if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by the National Association
of Securities Dealers, Inc. Automated Quotation System or, if such system is no
longer in use, the principal other automated quotations system that may then be
in use or, if such Equity Stock is not quoted by any such organization, the
average of the closing bid and asked prices of such Equity Stock as furnished
by a professional market maker, selected by the Board of Directors of the
Company, then making a market in such Equity Stock.  "Trading Day" shall mean a
day on which the principal national securities exchange on which such Equity
Stock is listed or admitted to trading is open for the transaction of business
or, if such Equity Stock is not listed or admitted to trading on any national
securities exchange, shall mean any day other than a Saturday, a Sunday or a
day on which banking institutions in the State of New York are authorized or
obligated by law or executive order to close.

                          "Merger" shall mean the merger of FelCor Suite
Hotels, Inc., a Delaware corporation, with and into the Corporation.

                          "Ownership Limit" shall mean, with respect to each
class of Equity Stock of the Corporation outstanding as of any particular time,
9.9% of the total number of such shares of such class of Equity Stock
outstanding as of such time.

                          "Non-Transfer Event" shall mean an event other than a
purported Transfer that would cause any Person to Beneficially Own or
Constructively Own shares of Equity Stock in excess of the Ownership Limit,
including, but not limited to, the granting of any option or entering into any
agreement for the sale, transfer or other disposition of Equity Stock or the
sale, transfer, assignment or other disposition of any securities or rights
convertible into or exchangeable for Equity Stock.

                          "Permitted Transferee" shall mean any Person
designated as a Permitted Transferee in accordance with the provisions of
subsection E.(5) of this Article V.

                          "Person" shall mean an individual, corporation,
partnership, limited liability company, estate, trust, association, joint stock
company, government or agency or subdivision thereof, charitable organization,
or other entity and also includes a group as that term is used for purposes of
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended.

                                      -4-
<PAGE>
                          "Prohibited Owner" shall mean, with respect to any
purported Transfer or Non-Transfer Event, any Person who, but for the
provisions of subsection D.(3) of this Article V, would own record title to
shares of Equity Stock.

                          "REIT" shall mean a Real Estate Investment Trust
under Section 856 of the Code.

                          "Restriction Termination Date" shall mean the first
day after the date of the Merger on which the Board of Directors and the
stockholders of the Corporation determine, in accordance with the provisions of
Article VII hereof, that it is no longer in the best interests of the
Corporation to attempt to, or continue to, qualify as a REIT.

                          "Transfer" shall mean any sale, transfer, gift,
assignment, devise or other disposition of Equity Stock, whether voluntary or
involuntary, whether of record, constructively or beneficially and whether by
operation of law or otherwise.

                          "Trust" shall mean any separate trust created
pursuant to subsection D.(3) of this Article V and administered in accordance
with the terms of section E. of this Article V, for the exclusive benefit of
any Beneficiary.

                          "Trustee" shall mean any person or entity
unaffiliated with both the Corporation and any Prohibited Owner, such Trustee
to be designated by the Corporation to act as trustee of any Trust, or any
successor trustee thereof.

                 (2)      Restriction on Transfers.

                          (a)     Except as provided in subsection D.(9) of
         this Article V, from the date of the Merger and prior to the
         Restriction Termination Date, no Person shall Beneficially Own or
         Constructively Own shares of the outstanding Equity Stock in excess of
         the Ownership Limit.

                          (b)     Except as provided in subsection D.(9) of
         this Article V, from the date of the Merger and prior to the
         Restriction Termination date, any Transfer that, if effective, would
         result in any Person Beneficially Owning or Constructively Owning
         Equity Stock in excess of the Ownership Limit shall be void ab initio
         as to the Transfer of that number of shares of Equity Stock which
         would be otherwise Beneficially Owned or Constructively Owned by such
         Person in excess of the Ownership Limit; and the intended transferee
         shall acquire no rights in such excess shares of Equity Stock.

                          (c)     Notwithstanding any other provision herein,
         from the date of the Merger and prior to the Restriction Termination
         Date, any Transfer that, if effective, would result in the Equity
         Stock being directly or indirectly owned by fewer than 100 Persons
         (determined without reference to any rules of attribution) shall be
         void ab initio in its entirety; and the intended transferee shall
         acquire no rights in such shares of Equity Stock.

                                      -5-
<PAGE>
                          (d)     Notwithstanding any other provision herein,
         from the date of the Merger and prior to the Restriction Termination
         Date, any Transfer of shares of Equity Stock that, if effective, would
         result in the Corporation being "closely held" within the meaning of
         Section 856(h) of the Code shall be void ab initio as to the Transfer
         of that number of shares of Equity Stock which would cause the
         Corporation to be "closely held" within the meaning of Section 856(h)
         of the Code; and the intended transferee shall acquire no rights in
         such excess shares of Equity Stock.

                          (e)     Notwithstanding any other provision herein,
         from the date of the Merger and prior to the Restriction Termination
         Date, any Transfer of shares of Equity Stock that, if effective, would
         result in the Corporation Constructively Owning 10% or more of the
         ownership interests in any tenant or subtenant of the Corporation's
         real property (including the real property held by FelCor Suites
         Limited Partnership and any other partnership in which the Corporation
         owns an interest subsequent to the Merger), within the meaning of
         Section 856(d)(2)(B) of the Code, shall be void ab initio as to the
         Transfer of that number of shares of Equity Stock in excess of the
         number that could have been Transferred without such result; and the
         intended transferee shall acquire no rights in such excess shares of
         Equity Stock.

                          (f)     Notwithstanding any other provision herein,
         from the date of the Merger and prior to the Restriction Termination
         Date, any Transfer of shares of  Equity Stock that, if effective,
         would cause the Corporation to fail to qualify as a REIT shall be void
         ab initio as to the Transfer of that number of shares of Equity Stock
         in excess of the number that could have been Transferred without such
         result; and the intended transferee shall acquire no rights in such
         excess shares of Equity Stock.

                 (3)      Transfer in Trust.

                          (a)     If, notwithstanding the other provisions
         contained in this Article V, at any time after the date of the Merger
         and prior to the Restriction Termination Date, there is a purported
         Transfer or Non-Transfer Event such that any Person would either
         Beneficially Own or Constructively Own Equity Stock in excess of the
         Ownership Limit, then, (i) except as otherwise provided in subsection
         D.(9) of this Article V, the purported transferee shall acquire no
         right or interest (or, in the case of a Non-Transfer Event, the person
         holding record title to the Equity Stock Beneficially Owned or
         Constructively Owned by such Beneficial Owner or Constructive Owner,
         shall cease to own any right or interest) in such number of shares of
         Equity Stock which would cause such Beneficial Owner or Constructive
         Owner to Beneficially Own or Constructively Own shares of Equity Stock
         in excess of the Ownership Limit; and (ii) such number of shares of
         Equity Stock in excess of the Ownership Limit (rounded up to the
         nearest whole share) shall be designated Shares-in-Trust and, in
         accordance with the provisions of section E. of this Article V,
         transferred automatically and by operation of law to and held in a
         Trust.  Such transfer to a Trust and the designation of the shares as
         Shares-in-Trust shall be effective as of the close of business on the
         business day next preceding the date of the purported Transfer or
         Non-Transfer Event, as the case may be.

                                      -6-
<PAGE>
                          (b)     If, notwithstanding the other provisions
         contained in this Article V, at any time after the date of the Merger
         and prior to the Restriction Termination Date, there is a purported
         Transfer or Non-Transfer Event that, if effective, would cause the
         Corporation either to become "closely held" within the meaning of
         Section 856(h) of the Code, to Constructively Own 10% or more of the
         ownership interests in any tenant or subtenant of the Corporation's
         real property (including the real property held by FelCor Suites
         Limited Partnership and any other partnership in which the Corporation
         owns an interest subsequent to the Merger) within the meaning of
         Section 856(d)(2)(B) of the Code, or otherwise to fail to qualify as a
         REIT (other than as a result of a violation of the requirement,
         contained in Section 856 (a)(5) of the Code,  that a REIT have at
         least 100 shareholders), then (i) the purported transferee shall
         acquire no right or interest (or, in the case of a Non-Transfer Event,
         the person holding record title to the Equity Stock with respect to
         which such Non-Transfer Event occurred, shall cease to own any right
         or interest) in such number of shares of Equity Stock, the ownership
         of which by such purported transferee or record holder would cause the
         Corporation either to be "closely held" within the meaning of Section
         856(h) of the Code, to violate the 10% limitation of Section
         856(d)(2)(B) of the Code or otherwise to fail to qualify as a REIT
         (other than as a result of a violation of the 100 shareholder
         requirement of Section 865(a)(5) of the Code; and (ii) such number of
         shares of Equity Stock (rounded up to the nearest whole share) shall
         be designated Shares-in-Trust and, in accordance with the provisions
         of section E. of this Article V, transferred automatically and by
         operation of law to a Trust to be held therein in accordance with that
         section E.  Such transfer to a Trust and the designation of shares as
         Shares-in-Trust shall be effective as of the close of business on the
         business day next preceding the date of the Transfer or Non-Transfer
         Event, as the case may be.

                 (4)      Remedies For Breach.  If the Corporation or its
designees at any time shall determine in good faith that a Transfer has taken
place in violation of subsection D.(2) of this Article V or that a Person
intends to acquire or has attempted to acquire Beneficial Ownership or
Constructive Ownership of any shares of Equity Stock in violation of subsection
D.(2) of this Article V, the Board of Directors shall be authorized and
empowered to take such action as it deems advisable to refuse to give effect to
or to prevent such Transfer or acquisition, including, but not limited to,
refusing to give effect to such Transfer on the books of the Corporation or
instituting proceedings to enjoin such Transfer or acquisition.

                 (5)      Notice of Restricted Transfer.  Any Person who
attempts to acquire or acquires shares of Equity Stock in violation of
subsection D.(2) of this Article V, or any Person who holds record title to any
shares of Equity Stock that were transferred to a Trust pursuant to the
provisions of subsection D.(3) of this Article V, shall immediately give
written notice to the Corporation of such event and shall provide to the
Corporation such other information as the Corporation may request in order to
determine the effect, if any, of such purported Transfer or the Non-Transfer
Event, as the case may be, on the Corporation's status as a REIT.

                                      -7-
<PAGE>
                 (6)      Owners Required To Provide Information.  From the
date of the Merger and prior to the Restriction Termination Date:

                          (a)     Each person who is a Beneficial Owner or
         Constructive Owner of more than 5% (or such lower percentage as may be
         required pursuant to the Code or regulations issued under the Code) of
         the outstanding Equity Stock of the Corporation shall, no later than
         January 30 of each year, give written notice to the Corporation
         stating the name and address of such Beneficial Owner or Constructive
         Owner, the number of shares of Equity Stock Beneficially Owned or
         Constructively Owned, and a description of how such shares are held.
         Each such Beneficial Owner or Constructive Owner shall provide to the
         Corporation such additional information as the Corporation may request
         in order to determine the effect, if any, of such Beneficial Ownership
         on the Corporation's status as a REIT and to ensure compliance with
         the Ownership Limit.

                          (b)     Each Person who is a Beneficial Owner or
         Constructive Owner of Equity Stock and each Person (including a
         stockholder of record) who is holding Equity Stock for a Beneficial
         Owner or Constructive Owner shall provide to the Corporation, promptly
         following any request therefor, such information as the Corporation
         may deem necessary in order to determine the Corporation's status as a
         REIT and to ensure compliance with the Ownership Limit.

                 (7)      Remedies Not Limited.  Nothing contained in this
Article V shall limit the authority of the Board of Directors to take any and
all lawful actions, whether or not specifically set forth herein, as it deems
necessary or advisable to protect the Corporation and the interests of its
stockholders by preserving the Corporation's status as a REIT and by ensuring
compliance with the Ownership Limit.

                 (8)      Ambiguity.  In the case of an ambiguity in the
application of any of the provisions of sections D. or E., including but not
limited to any definition contained in subsection D.(1), of this Article V, the
Board of Directors shall have the power to finally resolve such ambiguity and
interpret the provisions hereof with respect to any situation, based on the
facts known to it.

                 (9)      Exception.  The ownership limitations set forth in
subsections D.(2) and/or D.(3) of this Article V shall not apply to the
acquisition of shares of Equity Stock of the Corporation by an underwriter in a
public offering of those shares or in any transaction involving the issuance of
shares of Equity Stock by the Corporation in which the Board of Directors
determines that the underwriter or other person or party initially acquiring
those shares will timely distribute those shares to or among others so that,
following such distribution, the ownership of those shares will not be in
violation of subsections D.(2) and/or D.(3) of this Article V.  The Board of
Directors, in the exercise of its sole and absolute discretion, may exempt from
the operation of subsections D.(2) and/or D.(3) of this Article V certain
specified shares of Equity Stock of the Corporation proposed to be transferred
to, and/or owned by, a person who has provided the Board of  Directors with
such evidence, undertakings and assurances as the Board of Directors may
require that such transfer to, and/or ownership by, such person of the
specified shares will not prevent the continued qualification of the
Corporation as a REIT under the Code and the regulations issued under the Code.
The Board

                                      -8-
<PAGE>
of Directors may, but shall not be required, to condition the grant of any such
exemption upon the obtaining of an opinion of counsel, a ruling from the
Internal Revenue Service or such other assurances as the Board of Directors
shall deem to be satisfactory.

                 (10)     Legend.  Each certificate for Equity Stock, in
addition to any other legend that may be placed thereon, shall bear the
following legend:

                 "The shares of Equity Stock represented by this certificate
         are subject to restrictions on transfer for the purpose of maintaining
         the Corporation's status as a real estate investment trust under the
         Internal Revenue Code of 1986, as amended (the "Code").  No Person may
         at any time (1) Beneficially Own or Constructively Own shares of any
         class of Equity Stock in excess of 9.9% (or such other percentage as
         may be determined by the Board of Directors of the Corporation) of the
         total number of shares of such class of Equity Stock outstanding as of
         such time; (2) Beneficially Own Equity Stock which would result in the
         Corporation being "closely held" under Section 856(h) of the Code; or
         (3) Constructively Own Equity Stock which would result in the
         Corporation Constructively Owning 10% or more of the ownership
         interests in any tenant or subtenant of the Corporation's real
         property (including the real property held by FelCor Suites Limited
         Partnership and any other partnership in which the Corporation owns an
         interest), within the meaning of Section 856(d)(2)(B) of the Code.
         Any Person who attempts to Beneficially Own or Constructively Own
         shares of Equity Stock in excess of the above limitations must
         immediately notify the Corporation in writing.  If the restrictions
         above are violated, the shares of Equity Stock represented hereby will
         be transferred automatically and by operation of law to a Trust and
         shall be designated Shares-in-Trust.  All capitalized terms in this
         legend have the meanings assigned to them in the Corporation's
         Charter, as the same may be further amended from time to time.  The
         shares of Equity Stock represented by this certificate are subject to
         all of the provisions of the Charter and Bylaws of the Corporation,
         each as amended from time to time, to all of which the holder, by
         acceptance hereof, assents.

                 The Corporation will furnish to any stockholder, upon request
         and without charge, a copy of its Charter and Bylaws, and all
         amendments thereto, setting forth the restrictions on transfer and a
         statement of (i) the designations and any preferences, conversion and
         other rights, voting powers, restrictions, limitations as to
         dividends, qualifications, and terms and conditions of redemption of
         the stock of each class which the Corporation is authorized to issue,
         (ii) the differences in the relative rights and preferences between
         the shares of each series of each class of the stock which the
         Corporation is authorized to issue to the extent they have been set by
         the Board of Directors and (iii) the authority of the Board of
         Directors to set the relative rights and preferences of subsequent
         series of stock of the Corporation."

                 (11)     Severability.  If any provision of this Article V or
any application of any such provision is determined to be invalid by any
Federal or state court having jurisdiction over the issues, the validity of the
remaining provisions shall not be affected and other applications

                                      -9-
<PAGE>
of such provision shall be affected only to the extent necessary to comply with
the determination of such court.

         E.      Shares-in-Trust.

                 (1)      Trust.  Any shares of Equity Stock transferred to a
Trust and designated Shares-in-Trust pursuant to subsection D.(3) of this
Article V shall be held by the Trustee for the exclusive benefit of the
Beneficiary.  The Corporation shall name a beneficiary or beneficiaries of each
Trust within five (5) business days after receipt of written notice of the
existence thereof.  Any transfer to a Trust and designation of shares of Equity
Stock as Shares-in-Trust, pursuant to subsection D.(3) of this Article V, shall
be effective as of the close of business on the business day next preceding the
date of the purported Transfer or Non-Transfer Event that results in the
transfer to such Trust.  Shares-in-Trust shall remain issued and outstanding
shares of Equity Stock of the Corporation and shall be entitled to the same
rights and privileges on identical terms and conditions as are all other issued
and outstanding shares of Equity Stock of the same class and series.  When
transferred to a Permitted Transferee, in accordance with the provisions of
subsection E.(5) of this Article V, such Shares-in-Trust shall be released from
the Trust and cease to be designated as Shares-in-Trust.

                 (2)      Dividend Rights.  The Trustee, as the record holder
of Shares-in-Trust, shall be entitled to receive all dividends and
distributions as may be declared by the Board of Directors of the Corporation
on such shares of Equity Stock and shall hold such dividends or distributions
in trust for the benefit of the Beneficiary.  The Prohibited Owner with respect
to Shares-in-Trust shall repay to the Trustee the amount of any dividends or
distributions received by it that (i) are attributable to any shares of Equity
Stock designated Shares-in-Trust and (ii) the record date of which was on or
after the date that such shares became Shares-in-Trust.  The Corporation shall
take all lawful measures that the Board of Directors determines to be
reasonably necessary to recover the amount of any such dividend or distribution
paid to a Prohibited Owner, including, if necessary, withholding any portion of
future dividends or distributions payable on shares of Equity Stock
Beneficially Owned or Constructively Owned by the Person who, but for the
provisions of subsection D.(3) of this Article V, would Constructively Own or
Beneficially Own the Shares-in-Trust; and, as soon as reasonably practicable
following the Corporation's receipt or withholding thereof, shall pay over to
the Trustee for the benefit of the Beneficiary the dividends so received or
withheld, as the case may be.

                 (3)      Rights Upon Liquidation.  In the event of any
voluntary or involuntary liquidation, dissolution or winding up of, or any
distribution of the assets of, the Corporation, each Trustee of Shares-in-Trust
shall be entitled to receive, ratably with each other holder of Equity Stock of
the same class or series, that portion of the assets of the Corporation which
is available for distribution to the holders of such class and series of Equity
Stock.  The Trustee shall distribute to the Prohibited Owner the amounts
received upon such liquidation, dissolution, or winding up, or distribution;
provided, however, that the Prohibited Owner shall not be entitled to receive
amounts pursuant to this subsection E.(3) in excess of, in the case of a
purported Transfer in which the Prohibited Owner gave value for shares of
Equity Stock and which Transfer resulted in the transfer of the shares to the
Trust, the price per share, if any, such Prohibited Owner paid for the Equity
Stock and, in the case of a Non-Transfer Event or

                                      -10-
<PAGE>
Transfer in which the Prohibited Owner did not give value for such shares
(e.g., if the shares were received through a gift or devise) and which
Non-Transfer Event or Transfer, as the case may be, resulted in the transfer of
shares to the Trust, the price per share equal to the Market Price on the date
of such Non-Transfer Event or purported Transfer.  Any remaining amount in such
Trust shall be distributed to the Beneficiary.

                 (4)      Voting Rights.  The Trustee shall be entitled to vote
all Shares-in-Trust.  Any vote by a Prohibited Owner as a holder of shares of
Equity Stock prior to the discovery by the Corporation that the shares of
Equity Stock are Shares-in-Trust shall, subject to applicable law, be rescinded
and shall be void ab initio with respect to such Shares-in-Trust and the
Prohibited Owner shall be deemed to have given, as of the close of business on
the business day prior to the date of the purported Transfer or Non-Transfer
Event that results in the transfer to the Trust of the shares of Equity Stock
under subsection E.(3) of this Article V, an irrevocable proxy to the Trustee
to vote the Shares-in-Trust in the manner in which the Trustee, in its sole and
absolute discretion, desires.

                 (5)      Designation of Permitted Transferee.  The Trustee
shall have the exclusive and absolute right to designate a Permitted Transferee
of any and all Shares-in-Trust.  As soon as reasonably practicable, but in an
orderly fashion so as not to materially adversely affect the Market Price of
the Shares-in-Trust, the Trustee shall designate one or more Persons as
Permitted Transferees, provided, however, that (i) each such Permitted
Transferee so designated shall purchase for valuable consideration (whether in
a public or private sale) the Shares-in-Trust and (ii) each such Permitted
Transferee so designated may acquire such Shares-in-Trust without such
acquisition resulting in a transfer to a Trust and the redesignation of such
shares of the Equity Stock so acquired as Shares-in-Trust pursuant to the
provisions of subsection D.(3) of this Article V.  Upon the designation by the
Trustee of a Permitted Transferee in accordance with the provisions of this
subsection E.(5), the Trustee of a Trust shall (i) cause to be transferred to
the Permitted Transferee that number of Shares-in-Trust acquired by the
permitted Transferee; (ii) cause to be recorded on the books of the Corporation
that the Permitted Transferee is the holder of record of such number of shares
of Equity Stock; and (iii) distribute to the Beneficiary any and all amounts
held with respect to the Shares-in-Trust after making payment to the Prohibited
Owner of the amount determined pursuant to subsection E.(6) of this Article V.

                 (6)      Compensation to Record Holder of Shares of Equity
Stock that Become Shares-In-Trust.  Any Prohibited Owner shall be entitled
(after giving written notice to the Corporation of the existence of
Shares-in-Trust and following the designation of the Permitted Transferee in
accordance with subsection D.(5) of this Article V) to receive from the
Trustee, in respect of such Shares-in-Trust, the lesser of (i) in the case of
(a) a purported Transfer in which the Prohibited Owner gave value for shares of
Equity Stock and which Transfer resulted in the transfer of the shares to a
Trust, the price per share, if any, such Prohibited Owner paid for the Equity
Stock, or (b) a Non-Transfer Event or purported Transfer in which the
Prohibited Owner did not give value for such shares (e.g., if the shares were
received through a gift or devise) and which Non-Transfer Event or purported
Transfer, as the case may be, resulted in the transfer of shares to the Trust,
the price per share equal to the Market Price on the date of such Non-Transfer
Event or purported Transfer or (ii) the price per share received by the Trustee
of the Trust from the sale or other disposition of such Shares-in-Trust in
accordance with subsection E.(5) of this Article V.  Any amounts received by
the Trustee in respect of such

                                      -11-
<PAGE>
Shares-in-Trust and in excess of such amounts to be paid to the Prohibited
Owner pursuant to this subsection E.(6) shall be distributed to the Beneficiary
in accordance with the provisions of subsection E.(5) of this Article V.  Each
Beneficiary and Prohibited Owner waive any and all claims that it may have
against the Trustee and the Corporation arising out of the transfer of any
Equity Stock to a Trust, the designation of any Equity Stock as Shares-in-Trust
and the disposition of any Shares-in-Trust, except for claims arising out of
the gross negligence or willful misconduct of, or any failure to make payments
in accordance with section E. of this Article V by, such Trustee or the
Corporation.

                 (7)      Purchase Right in Shares-in-Trust.  Shares-in-Trust
shall be deemed to have been offered for sale to the Corporation, or its
designee, at a price per share equal to the lesser of (i) the price per share
in the transaction that resulted in such shares being designated as
Shares-in-Trust (or, in the case of devise, gift or Non- Transfer Event, the
Market Price at the time of such devise, gift or Non-Transfer Event) and (ii)
the Market Price on the date the Corporation, or its designee, accepts such
offer.  The Corporation shall have the right to accept such offer for a period
of ninety days after the later of (A) the date of the Non-Transfer Event or
purported Transfer which resulted in such Shares-in-Trust and (B) the date the
Corporation determines in good faith that a purported Transfer or Non-Transfer
Event resulting in the designation of any Equity Stock as Shares-in-Trust has
occurred, if the Corporation does not receive a written notice of such
purported Transfer or Non-Transfer Event pursuant to subsection D.(5) of this
Article V.

         F.      Preemptive Rights.  No holder of any stock or any other
securities of the Corporation, whether now or hereafter authorized, shall have
any preemptive right to subscribe for or purchase any stock or any other
securities of the Corporation other than such, if any, as the Board of
Directors, in its sole discretion, may determine and at such price or prices
and upon such other terms as the Board of Directors, in its sole discretion,
may fix; and any stock or other securities which the Board of Directors may
determine to offer for subscription may, as the Board of Directors in its sole
discretion shall determine, be offered to the holders of any class or series of
stock or other securities at the time outstanding to the exclusion of the
holders of any or all other classes or series of stock or other securities at
the time outstanding.

         G.      Amendment of this Article.  Notwithstanding any other
provisions of this Charter or the Bylaws of the Corporation (and
notwithstanding that some lesser percentage may be permitted by law, this
Charter or the Bylaws of the Corporation), no provision of sections D., E. or
G. of this Article V shall be amended, altered, changed or repealed unless such
amendment, alteration, change, or repeal shall have been advised and approved
by the affirmative vote of a majority of the members of the Board of Directors
and adopted by the affirmative vote of the holders of not less than 66 2/3% of
the outstanding shares of capital stock of the Corporation entitled to vote on
such matter, voting together as a single class.

                                  ARTICLE VI.
                                   DIRECTORS

         A.      Number.  The business and affairs of the Corporation shall be
managed under the direction of a Board of Directors consisting of not less than
three (3) nor more than nine (9)

                                      -12-
<PAGE>
directors, unless otherwise determined from time to time by resolution adopted
by the affirmative vote of at least 80% of the members of the Board of
Directors; provided, however, that in no event shall the number of directors be
less than the minimum number required by the Maryland General Corporation Law
and provided further that so long as the number of stockholders of the
Corporation shall be less than three, the number of directors may be less than
three but not less than the number of stockholders.  The name of the person who
will serve as the sole director of the Corporation until the first annual
meeting of the stockholders of the Corporation and until his successor is
elected and qualifies is Thomas J. Corcoran, Jr.

         B.      Classification of Directors.  At the first annual meeting of
the stockholders of the Corporation, the directors of the Corporation shall be
divided into three classes: Class I; Class II; and Class III; and the number of
such directors in each class shall be as nearly equal as the number of such
directors will permit.  Each such director shall serve for a three-year term
ending on the date of the third annual meeting of stockholders following the
annual meeting of stockholders at which such director was elected; provided,
however, that each initial director elected to Class I at the first annual
meeting of stockholders shall serve for a term ending on the date of the annual
meeting of stockholders to be held in 1998, each initial director elected to
Class II at the first annual meeting of stockholders shall serve for a term
ending on the date of the annual meeting of stockholders to be held in 1996,
and each initial director elected to Class III at the first annual meeting of
stockholders shall serve for a term ending on the date of the annual meeting of
stockholders held in 1997.

         C.      Removal.  Any director or the entire Board of Directors may be
removed by the holders of a majority of the shares entitled to vote at an
election of directors; provided, however, any such removal shall be for cause;
and provided, further, that if stockholders of any class of the capital stock
of the Corporation are entitled separately to elect one or more directors, such
directors may not be removed except by the affirmative vote of a majority of
all of the shares of such class or series entitled to vote for such directors.

         D.      Vacancies.  Except with respect to any directors who have been
or may be elected separately by the holders of Preferred Stock as provided for
in any Articles Supplementary, should a vacancy in the Board of Directors occur
or be created (whether as a result of the death, retirement, resignation or
removal from office of one or more directors or an increase in the number of
authorized directors), such vacancy shall be filled by the affirmative vote of
a majority of the remaining directors, even though less than a quorum of the
Board of Directors, and each director so elected shall serve for the unexpired
term of the Class to which he is elected.  Any director so elected by the
remaining directors to fill a vacancy may qualify as an Independent Director
(as hereinafter defined) only if such director has received the affirmative
vote of at least a majority of the remaining Independent Directors, if any.

         E.      Independent Directors.  Notwithstanding anything herein to the
contrary, at all times (except during a period not to exceed sixty (60) days
following the death, retirement, resignation or removal from office of a
director prior to the expiration of the director's term of office), a majority
of the Board of Directors shall be comprised of "Independent Directors," being
persons who are not officers or employees of the Corporation or "Affiliates" of
(1) any advisor to the Corporation under an advisory agreement, (2) any lessee
or contract manager of

                                      -13-
<PAGE>
any property of the Corporation, any subsidiary of the Corporation or any
partnership which is an Affiliate of the Corporation.

                 For purposes of this subsection E., an "Affiliate" of a person
shall mean (1) any person that, directly or indirectly, controls or is
controlled by or is under common control with such person, (2) any other person
that beneficially owns, directly or indirectly, five percent (5%) or more of
the outstanding capital stock, shares or equity interests of such person, or
(3) any officer, director, employee, partner or trustee of such person or any
person controlling, controlled by or under common control with such person
(excluding trustees and persons serving in similar capacities who are not
otherwise an Affiliate of such person).  For purposes of the definition of
Affiliate herein, (a) the term "person" shall mean and include individuals,
corporations, limited liability companies, general and limited partnerships,
stock companies or associations, joint ventures, associations, companies,
trusts, banks, trust companies, land trusts, business trusts, or other entities
and governments and agencies and political subdivisions thereof and (b) the
term "control" (including the correlative meanings of the terms "controlled by"
and "under common control with"), as used with respect to any person, shall
mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such person, through the
ownership of voting securities, partnership interests or other equity
interests.

         F.      Ballots not Required.  Elections of directors need not be by
ballot unless the Bylaws of the Corporation shall so provide.

         G.      Amendment of this Article.  Notwithstanding any other
provisions of this Charter or the Bylaws of the Corporation (and
notwithstanding that some lesser percentage may be permitted by law, this
Charter or the Bylaws of the Corporation), the provisions of this Article VI
shall not be amended, altered, changed or repealed unless such amendment,
alteration, change, or repeal shall have been advised and approved by the
affirmative vote of at least 80% of the members of the Board of Directors and
approved by the affirmative vote of the holders of not less than 75% of the
outstanding shares of capital stock of the Corporation entitled to vote on such
matter, voting together as a single class.

                                  ARTICLE VII.
                                  REIT STATUS

                 The Corporation shall seek to elect and maintain its status as
a REIT under the Code.   It shall be the duty of the Board of Directors to take
such actions as are permitted by law and as it may deem necessary or advisable
to cause the Corporation to satisfy the requirements for qualification as a
REIT under the Code, including, but not limited to, the requirements relating
to the ownership of its outstanding capital stock, the nature of its assets,
the sources of its income, and the amount and timing of its distributions to
its stockholders.  The Board of Directors shall take no affirmative action to
cause the Corporation not to qualify as a REIT or to otherwise revoke the
Corporation's election to be taxed as a REIT without the affirmative vote of
the holders of 66 2/3% of the outstanding shares of capital stock of the
Corporation entitled to vote on such matter.

                                      -14-
<PAGE>

                                 ARTICLE VIII.
                          REGISTERED HOLDERS OF SHARES

                 Except as may be otherwise provided by applicable law, the
Corporation shall be entitled to treat the registered holder of any shares of
capital stock of the Corporation as the owner of such shares and of all rights
derived from or relating to such shares for all purposes, and the Corporation
shall not be obligated to recognize any equitable or other claim to or interest
in such shares or rights on the part of any other person, including, but
without limiting the generality of the term "person", a purchaser, pledgee,
assignee or transferee of such shares or rights, unless and until such person
becomes the registered holder of such shares.  The foregoing shall apply
whether or not the Corporation shall have either actual or constructive notice
of the interest of such person.

                                  ARTICLE IX.
                           LIMITATION ON INDEBTEDNESS

                 The Corporation may not incur or suffer to exist as of the end
of any month Indebtedness (as defined below) in an amount in excess of 40% of
the Corporation's investment in hotel properties, at its cost,  after giving
effect to the Corporation's use of proceeds from any Indebtedness.  The
Corporation's investment in hotel properties shall include all investments by
the Corporation constituting, evidencing or secured by an interest in property,
whether tangible or intangible and whether real, personal or mixed, that is
used or intended for use in, or in any manner connected with or relating to,
the ownership or leasing of hotels.  In determining its cost of such
investments, there shall be included (1) the amount of all cash paid and the
value (as determined by the Board of Directors for purposes of such investment)
of any other property transferred therefor by the Corporation, (2) the amount
of all Indebtedness and other obligations assumed or incurred by the
Corporation or to which the Corporation takes subject, and (3) the value (as
determined by the Board of Directors for the purposes of such investment) of
all equity securities of which the issuer is an entity that is, or upon such
investment will be, included within the Corporation and which are issued
(otherwise than for cash) to, or retained by, any person other than the
Corporation in connection with such investment.  For purposes of the foregoing
restrictions, (A) "Indebtedness" of the Corporation shall mean the consolidated
liabilities of the Corporation for borrowed money (including all notes payable
and drafts accepted representing extensions of credit) and all obligations
evidenced by bonds, debentures, notes or other similar instruments on which
interest charges are customarily paid, including obligations under capital
leases, and (B) "Corporation" shall mean this Corporation and any subsidiary
entity consolidated therewith, under generally accepted accounting principals.

                                   ARTICLE X.
                          POWERS OF DIRECTORS; BYLAWS

                 A.       Powers Vested in the Board of Directors.  All of the
powers of the Corporation, insofar as the same may be lawfully vested by this
Charter in the Board of Directors, are hereby conferred upon the Board of
Directors.  In furtherance and not in

                                      -15-
<PAGE>
limitation of that power, the Board of Directors shall, in addition to those
powers specifically conferred upon the Board of Directors as set forth herein,
possess the following powers:

                          (1)     The Board of Directors shall, in connection
with the exercise of its business judgment involving a Business Combination (as
defined in Section 3-601 of Title 3 of the Corporations and Associations
Article of the Annotated Code of Maryland) or any actual or proposed
transaction which would or may involve a change in control of the Corporation
(whether by purchases of shares of stock or any other securities of the
Corporation in the open market, or otherwise, tender offer, merger,
consolidation, dissolution, liquidation, sale of all or substantially all of
the assets of the Corporation, proxy solicitation or otherwise), in determining
what is in the best interests of the Corporation and its stockholders and in
making any recommendation to its stockholders, give due consideration to all
relevant factors, including, but not limited to (A) the economic effect, both
immediate and long-term, upon the Corporation's stockholders, including
stockholders, if any, who do not participate in the transaction; (B) the social
and economic effect on the employees, customers of, and other dealing with, the
Corporation and its subsidiaries and on the communities in which the
Corporation and its subsidiaries operate or are located; (C) whether the
proposal is acceptable based on the historical and current operating results or
financial condition of the Corporation; (D) whether a more favorable price
could be obtained for the Corporation's stock or other securities in the
future; (E) the reputation and business practices of the offeror and its
management and affiliates as they would affect the employees of the Corporation
and its subsidiaries; (F) the future value of the stock or any other securities
of the Corporation; (G) any antitrust or other legal and regulatory issues that
are raised by the proposal; and (H) the business and financial condition and
earnings prospects of the acquiring person or entity, including, but not
limited to, debt service and other existing financial obligations, financial
obligations to be incurred in connection with the acquisition, and other likely
financial obligations of the acquiring person or entity.  If the Board of
Directors determines that any proposed Business Combination (as defined in
Section 3-601 of Title 3 of the Corporations and Associations Article of the
Annotated Code of Maryland) or actual or proposed transaction which would or
may involve a change in control of the Corporation should be rejected, it may
take any lawful action to defeat such transaction, including, but not limited
to, any or all of the following: advising stockholders not to accept the
proposal; instituting litigation against the party making the proposal; filing
complaints with governmental and regulatory authorities; acquiring the stock or
any of the securities of the Corporation; selling or otherwise issuing
authorized but unissued stock, other securities or granting options or rights
with respect thereto; acquiring a company to create an antitrust or other
regulatory problem for the party making the proposal; and obtaining a more
favorable offer from another individual or entity.

                          (2)     The Board of Directors shall have the sole
and exclusive power and authority to make, alter or repeal the Bylaws of the
Corporation.

The enumeration and definition of particular powers of the Board of Directors
included in the foregoing shall in no way be limited to restricted by reference
to or inference from the terms of any other clause of this or any other Article
of the Charter of the Corporation, or construed as or deemed by inference or
otherwise in any manner to exclude or limit any powers conferred

                                      -16-
<PAGE>
upon the Board of Directors under the General Laws of the State of Maryland now
or hereafter in force.

                                  ARTICLE XI.
                    INDEMNIFICATION; LIMITATION OF LIABILITY

         A.      Power to Indemnify.  The Corporation may agree to the terms
and conditions upon which any director, officer, employee or agent accepts his
office or position and in its Bylaws, by contract or in any other manner may
agree to indemnify and protect any director, officer, employee or agent of the
Corporation, or any person who serves at the request of the Corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, to the fullest extent permitted from time
to time by the Maryland General Corporation Law., as the same exists or may be
hereafter amended or reenacted.

         B.      Obligation to Provide Indemnification.  The Corporation, to
the fullest extent permitted by the Maryland General Corporation Law as the
same exists or may hereafter be amended or reenacted, shall indemnify, and
advance expenses on behalf of, any and all persons who it shall have the power
to indemnify under such law from and against any and all of the expenses,
liabilities or other matters referred to in or covered by such law and, in
addition thereto, shall indemnify, and advance expenses on behalf of, all such
persons to the extent permitted under any Bylaw, agreement, vote of
stockholders or disinterested directors or otherwise, both as to action by any
such person in his director or officer capacity and as to action in another
capacity while holding any such office, and shall continue as to a person who
has ceased to be a director, officer, employee or agent and shall inure to the
benefit of the heirs, executors and administrators of such a person.

         C.      Limitation of Liability.  To the fullest extent permitted by
Maryland statutory or decisional law, as amended or interpreted, no director or
officer of the Corporation shall be personally liable to the Corporation or its
stockholders for money damages.  No amendment of the Charter of the Corporation
or repeal of any of its provisions shall limit or eliminate the benefits
provided to directors and officers under this provision with respect to any act
or omission which occurred prior to such amendment or repeal.  Any repeal or
modification of the foregoing sentence shall not adversely affect any right or
protection of a director of the Corporation existing hereunder with respect to
any act or omission occurring prior to such repeal or modification.

                                  ARTICLE XII.
                             BUSINESS COMBINATIONS

                 The provisions of Section 3-602 of Title 3 of the Corporations
and Associations Article of the Annotated Code of the State of Maryland, as the
same may be amended or reenacted, or any successor statute thereto, shall not
apply to any Business Combination (as defined in Section 3-601 of Title 3 of
the Corporations and Associations Article of the Annotated

                                      -17-
<PAGE>
Code of the State of Maryland) involving the Corporation and FelCor Suite
Hotels, Inc., a Delaware corporation, Mr.  Hervey A. Feldman or Thomas J.
Corcoran, Jr. (or any present or future affiliates or associates of Mr. Feldman
or Mr.  Corcoran or other person acting in concert or as a group with either or
both of them).

                                 ARTICLE XIII.
                                 CONTROL SHARES

                 The provisions of Title 3, Subtitle 7 of the Maryland General
Corporation Law entitled "Voting Rights of Certain Control Shares," as amended
or reenacted from time to time, or any successor statute thereto, shall not
apply to any existing or future type or class of the capital stock of the
Corporation.

                                  ARTICLE XIV.
                    REDUCED PERCENTAGE OF VOTES REQUIRED TO
                       APPROVE CERTAIN CORPORATE ACTIONS

                 Except as may be otherwise provided in the Charter of the
Corporation, notwithstanding any provision of law which may be applicable to
the Corporation which purports to require for any purpose the affirmative vote
of a greater proportion than a majority of all other votes entitled to be cast
on a particular matter by the holders of capital stock of the Corporation, the
affirmative vote of a majority of the votes entitled to be cast on any matter
upon which the holders of shares of the capital stock of the Corporation shall
be entitled to vote shall be, subject to the due authorization, approval or
advice or the Board of Directors, valid, sufficient and effective to approve or
authorize any such matter.

                                  ARTICLE XV.
                                   AMENDMENTS

                 The Corporation reserves the right to amend, alter, change or
repeal any provision contained in this Charter, in the manner now or hereafter
prescribed by statute, and all rights conferred upon stockholders herein are
granted subject to this reservation.

                                      -18-
<PAGE>
                               STATE OF MARYLAND                         370965

                                 DEPARTMENT OF
                            ASSESSMENTS AND TAXATION
              301 West Preston Street  Baltimore, Maryland  21201

DATE:  JUNE 23, 1995

     THIS IS TO ADVISE YOU THAT THE ARTICLES OF MERGER FOR FELCOR SUITE HOTELS,
INC. (MD)-SURVIVOR AND FELCOR SUITE HOTELS, INC. (DE)-MERGING OUT WERE RECEIVED
AND APPROVED FOR RECORD ON JUNE 23, 1995 AT 12:24 PM.

FEE PAID:           50.00

[SEAL]

                                                                   IRENE B WOZNY
                                                              CHARTER SPECIALIST

<PAGE>
                               ARTICLES OF MERGER
                                    BETWEEN
               FELCOR SUITE HOTELS, INC., A DELAWARE CORPORATION
                                      AND
               FELCOR SUITE HOTELS, INC., A MARYLAND CORPORATION

     These ARTICLES OF MERGER are made and entered into as of the 23rd day of
June 1995, by and between FelCor Suite Hotels, Inc., a Delaware corporation
(the "Merging Corporation"), and FelCor Suite Hotels, Inc., a Maryland
corporation (the "Surviving Corporation"), each of which certify as follows:

      FIRST:    The Merging Corporation and the Surviving Corporation agree to
merge in accordance with the terms and conditions set forth herein and in the
Agreement and Plan of Merger dated as of May 30, 1995 by and between the
Surviving Corporation and the Merging Corporation (the "Merger").

     SECOND:   The Merger shall be effective upon the later of (i) the
acceptance of these Articles of Merger by the State Department of Assessments
and Taxation of the State of Maryland and (ii) the acceptance of a Certificate
of Merger by the Secretary of State of Delaware (the "Effective Date").

     THIRD:    The name of the Merging Corporation is "Felcor Suite Hotels,
Inc." which is incorporated under the laws of the State of Delaware. The name
of the Surviving Corporation is "Felcor Suite Hotels, Inc." which is
incorporated under the laws of the State of Maryland.
<PAGE>

      FOURTH:   The Merging Corporation was incorporated under the general laws
of the State of Delaware on May 16, 1994. The Merging Corporation is not
registered or qualified to do business in the State of Maryland.

     FIFTH:    The principal office in Maryland of the Surviving Corporation is
located in Baltimore City at 11 East Chase Street, Baltimore, Maryland, 21202.
The Merging Corporation does not have an office in Maryland.

     SIXTH:    Neither the Merging Corporation nor the Surviving Corporation
owns any interest in land in the State of Maryland, the title to which could be
affected by recording an instrument in the land records.

     SEVENTH:  The total number of shares of stock that the Merging Corporation
has authority to issue is 50,000,000 shares of Common Stock, par value $0.01
per share, and 10,000,000 shares of Preferred Stock, par value $0.01 per share.
The total number of shares of stock that the Surviving Corporation has
authority to issue is 50,000,000 shares of Common Stock, par value $0.01 per
share, and 10,000,000 shares of Preferred Stock, par value $0.01 per share.

     EIGHTH:   The Merging Corporation owns of record and beneficially all of
the issued and outstanding capital stock of the Surviving Corporation.

     NINTH:    The manner and basis of converting or exchanging issued stock of
the Merging Corporation and the Surviving Corporation into different stock of a
corporation or other

                                     - 2 -
<PAGE>
consideration and the treatment of any issued stock not to be converted or
exchanged shall be as follows:

          (a)  At the Effective Date, each issued share of the Common Stock of
the Merging Corporation shall be converted into and become one share of Common
Stock, par value $0.01 per share, of the Surviving Corporation.

          (b)  At the Effective Date, each issued share of the Common Stock of
the Surviving Corporation shall be cancelled and cease to exist.

     TENTH:    The other provisions necessary to effect the Merger are as
follows:

          (a)  At the Effective Date, each share of the Common Stock of the
Merging Corporation issued and outstanding or held as treasury shares on the
Effective Date shall, without any action on the part of either the Merging
Corporation or the Surviving Corporation or any holder of such stock, be
changed and converted into an equal number of fully paid and nonassessable
shares of the Common Stock of the Surviving Corporation.

          (b)  Each stock certificate which, prior to the Effective Date,
represented issued shares of the Common Stock of the Merging Corporation shall
be and become, on the Effective Date, a certificate representing an identical
number of shares of Common Stock of the Surviving Corporation automatically by
virtue of the Merger and without any action on the part of the holder thereof.

          (c)  Each stock option granted by the Merging Corporation (under or
subject to the Restricted Stock and Stock Option Plan of the Merging
Corporation (the "1994 Plan")) and outstanding

                                     - 3 -
<PAGE>
immediately prior to the Effective Date shall, by virtue of the Merger and
without any action on the part of the holder thereof, be converted into and
become a stock option to purchase, upon the same terms and conditions, the
number of shares of the Surviving Corporation's Common Stock (subject to
further adjustment as may be provided in the 1994 Plan) which is equal to the
number of shares of the Merging Corporation's Common Stock which the holder
thereof would have received had such holder exercised the option in full
immediately prior to the Effective Date (whether or not such option was then
exercisable). The price per share payable upon exercise under each of said
options shall (subject to future adjustments as provided in the 1994 Plan) be
equal to the exercise price per share thereunder immediately prior to the
Effective Date. A number of shares of the Surviving Corporation's Common Stock
shall be reserved for issuance upon the exercise of options equal to the number
of shares of the Merging Corporation's Common Stock so reserved immediately
prior to the Effective Date.

          (d)  The 1994 Plan, and all outstanding stock options thereunder,
shall, immediately prior to the Effective Date of the Merger, be amended to the
extent necessary to permit continuance of the 1994 Plan and continuance and
convergence of said stock options into those of the Surviving Corporation
following the Merger, nothwithstanding any provisions heretofore contained in
such 1994 Plan.

          (e)  On the Effective Date, all of the shares of stock of the
Surviving Corporation issued and outstanding on the Effective

                                     - 4 -
<PAGE>
Date of the Merger shall be cancelled and returned to the status of authorized
but unissued shares.

          (f)  On the Effective Date, each employee benefit plan and incentive
compensation plan to which the Merging Corporation is then a party shall be
assumed by, and continue to be the plan of, the Surviving Corporation. To the
extent any employee benefit plan or incentive compensation plan of the Merging
Corporation or any of its subsidiaries provides for the issuance or purchase
of, or otherwise relates to, the Merging Corporation's Common Stock, after the
Effective Date such plan shall be deemed to provide for the issuance or
purchase of, or otherwise relate to, the Surviving Corporation's Common Stock
upon the same terms and conditions.

          (g)  The officers and directors of the Surviving Corporation on the
Effective Date shall be and continue to be the officers and directors of the
Surviving Corporation thereafter, until their successors are duly appointed or
elected and qualify.

          (h)  The Charter and Bylaws of the Surviving Corporation, as they
exist immediately prior to the Effective Date, shall remain in effect as the
Charter and Bylaws of the Surviving Corporation thereafter, unaffected by the
Merger.

          (i)  On the Effective Date, the Merging Corporation shall be merged
with and into the Surviving Corporation, which shall continue its corporate
existence under the laws of the State of Maryland. The separate existence and
corporate organization of the Merging Corporation shall cease upon the
Effective Date, and the Surviving Corporation shall possess all of the rights,
privileges, immunities and franchises, as well as those of a public or of a

                                     - 5 -
<PAGE>

private nature, of each of the Merging Corporation and the Surviving
Corporation; and all property, real, personal and mixed, and all debts due on
whatever account, including subscriptions to shares, and all other choses in
action, and all and every other interest, of or belonging to or due to each of
the Merging Corporation or the Surviving Corporation, shall be taken and deemed
to be transferred to and vested in the Surviving Corporation without further
act or deed; and the title to any real estate or any interest therein, vested
in either of the Merging Corporation or the Surviving Corporation shall not
revert or be in any way impaired by reason of such Merger. The Surviving
Corporation shall thenceforth be responsible and liable for all the liabilities
and obligations of each of the Merging Corporation and the Surviving
Corporation, and any claims existing or action or proceeding pending by or
against the Merging Corporation or the Surviving Corporation may be prosecuted
to judgment as if such Merger had not taken place. Neither the rights of
creditors nor any liens upon the property of either the Merging Corporation or
the Surviving Corporation shall be impaired by the Merger.

     ELEVENTH:   The terms and conditions of the transaction set forth in these
Articles of Merger were advised, authorized and approved by the Merging
Corporation in the manner and by the vote required by its charter and by-laws
and the laws of the State of Delaware. The terms and conditions of the
transaction set forth in these Articles of Merger were advised, authorized and
approved by the Surviving Corporation in the manner and by the vote required by
its charter and by-laws and the laws of the State of Maryland. The

                                     - 6 -
<PAGE>
manner of approval by the Merging Corporation and the Surviving Corporation of
the transaction set forth in these Articles of Merger was as follows:

     (a)   The board of directors of the Merging Corporation adopted a
resolution by unanimous vote consent on April 10, 1995, which declared that the
transaction set forth in these Articles of Merger is advisable and directed
that the transaction be submitted for consideration by the stockholders of the
Merging Corporation at the annual meeting of the stockholders of the Merging
Corporation held on May 30, 1995. Notice which stated that a purpose of the
annual meeting was to act on the Merger contemplated by these Articles of
Merger was given in the manner required by the applicable provisions of the
Delaware General Corporation Law to each stockholder entitled to such notice.
The transaction set forth in these Articles of Merger was approved by the
stockholders of the Merging Corporation at the annual meeting of the
stockholders of the Merging Corporation held on May 30, 1995 by the affirmative
vote of a majority of all the votes entitled to be cast on the matter in
accordance with the Charter of the Merging Corporation and the Delaware General
Corporation,Law.

     (b)   The sole director of the Surviving Corporation adopted a resolution
by written consent as of May 2, 1995, which declared that the transaction set
forth in these Articles of Merger is advisable and directed that the
transaction be submitted for consideration of the sole stockholder of the
Surviving Corporation. The transaction set forth in these Articles of Merger
was approved

                                     - 7 -
<PAGE>
by the sole stockholder of the Surviving Corporation by written consent dated
as of May 2, 1995.

     TWELFTH:    No amendment to the charter of the Surviving Corporation, the
survivor in the Merger, will be affected by the Merger.

     IN WITNESS WHEREOF, the Merging Corporation and the Surviving Corporation
have caused these Articles of Merger to be signed in their respective corporate
names and on their behalf by their respective Presidents and attested to by
their respective corporate Secretaries as of the 23rd day of June, 1995.

     ATTEST:                                   FELCOR SUITE HOTELS, INC.,
                                               a Maryland corporation

     /s/ NICHOLAS R. PETERSON                  By: THOMAS J. CORCORAN
     ----------------------------                  ----------------------------
     Nicholas R. Peterson                          Thomas J. Corcoran, Jr.
     Assistant Secretary                           President

                                               FELCOR SUITE HOTELS, INC.,
                                                 a Delaware corporation

     /s/ NICHOLAS R. PETERSON                  By: THOMAS J. CORCORAN
     ----------------------------                  ----------------------------
     Nicholas R. Peterson                          Thomas J. Corcoran, Jr.
     Assistant Secretary                           President

     The undersigned, being the duly elected and acting President of Felcor
Suite Hotels, Inc., a Maryland corporation, hereby acknowledges that the
foregoing Articles of Merger, of which this Certificate is a part, are the act
of Felcor Suite Hotels, Inc., a Maryland corporation, and certifies that, to
the best of his knowledge, information and belief, and under penalties for
perjury, all matters and facts contained in these Articles of Merger relating
to Felcor Suite Hotels, Inc., a Maryland corporation, are true in all material
respects.

                                        /s/ THOMAS J. CORCORAN, JR.
                                        ----------------------------
                                        Thomas J. Corcoran, Jr.

                                    - 8 -

<PAGE>

     The undersigned, being the duly elected and acting President of Felcor
Suite Hotels, Inc., a Delaware corporation, hereby acknowledges that the
foregoing Articles of Merger, of which this Certificate is a part, are the act
of Felcor Suite Hotels, Inc., a Delaware corporation, and certifies that, to
the best of his knowledge, information and belief, and under penalties for
perjury, all matters and facts contained in these Articles of Merger relating
to Felcor Suits Hotels, Inc., a Delaware corporation, are true in all material
respects.

                                        /s/ THOMAS J. CORCORAN, JR.
                                        ----------------------------
                                        Thomas J. Corcoran, Jr.

                                    - 9 -

<PAGE>
                               STATE OF MARYLAND

                                                                          441055
                              STATE DEPARTMENT OF
                            ASSESSMENTS AND TAXATION
              301 West Preston Street Baltimore, Maryland 21201

                                                              DATE: MAY 02, 1996

     THIS IS TO ADVISE YOU THAT THE ARTICLES SUPPLEMENTARY FOR

FELCOR SUITE HOTELS, INC.

WERE RECEIVED AND APPROVED FOR RECORD ON MAY 2, 1996 AT 11:40 AM.

FEE PAID:                       50.00

     [SEAL]

                                                     HARRY J. NOONAN
                                                     CHARTER SPECIALIST

<PAGE>

                             ARTICLES SUPPLEMENTARY
                                       OF
                           FELCOR SUITE HOTELS, INC.

         FELCOR SUITE HOTELS, INC., a Maryland corporation (hereinafter
referred to as the "Company"), hereby certifies as follows:

         FIRST: Under the authority set forth in Article V of the Charter of
the Company, the Board of Directors of the Company on April 11, 1996,
classified 6,900,000 unissued shares of the "$1.95 Series A Cumulative
Convertible Preferred Stock."

         SECOND: A description of the $1.95 Series A Cumulative Convertible
Preferred Stock (the "Series A Preferred Stock"), including the preferences,
conversion and other rights, voting powers, restrictions, limitations as to
dividends, qualifications, and terms and conditions of redemption as set or
changed by the Board of Directors of the Company is as follows:

         Section 1.  NUMBER OF SHARES AND DESIGNATION.  This series of
preferred stock shall be designated as Series A Cumulative Convertible
Preferred Stock, and 6,900,000 shall be the number of shares of preferred stock
constituting of such series.

         Section 2.  DEFINITIONS.  For purposes of the Series A Preferred
Stock, the following terms shall have the meanings indicated:

"Act" shall have the meaning set forth in paragraph (g) of Section 5 hereof.

"Board of Directors" shall mean the Board of Directors of the Company or any
committee authorized by such Board of Directors to perform any of its
responsibilities with respect to the Series A Preferred Stock.

"Business Day" shall mean any day other than a Saturday, Sunday or a day on
which state or federally chartered banking institutions in Texas or New York
are not required to be open.

"Call Date" shall have the meaning set forth in paragraph (c) of Section 5
hereof.

"Common Stock" shall mean the common stock of the Company, par value $0.01 per
share.

"Constituent Person" shall have the meaning set forth in paragraph (e) of
Section 7 hereof.

"Conversion Price" shall mean the conversion price per share of Common Stock
for which the Series A Preferred Stock is convertible, as such Conversion Price
may be adjusted pursuant to Section 7.  The initial conversion price shall be
$32.25 (equivalent to a conversion rate of 0.7752 shares of Common Stock for
each share of Series A Preferred Stock).
<PAGE>
"Current Market Price" of publicly traded shares of Common Stock or any other
class of capital stock or other security of the Company or any other issuer for
any day shall mean the last reported sales price, regular way on such day, or,
if not sale takes place on such day, the average of the reported closing bid
and asked prices on such day, regular way, in either case as reported on the
New York Stock Exchange ("NYSE") or, if such security is not listed or admitted
for trading or, if not listed or admitted for trading on any national
securities exchange, on the National Market System of the National Association
of Securities Dealers, Inc.  Automated Quotations System ("NASDAQ") or, if such
security is not quoted on such National Market System, the average of the
closing bid and asked prices on such day in the over the counter market as
reported by NASDAQ or, if bid and asked prices for such security on such day
shall not have been reported through NASDAQ, the average of the bid and asked
prices on such day as furnished by any NYSE member firm regularly making a
market in such security selected for such purpose by the Chief Executive
Officer or the Board of Directors.

"Dividend Payment Date" shall mean the last calendar day of January, April,
July and October in each year, commencing on July 31, 1996; PROVIDED, HOWEVER,
that if any Dividend Payment Date falls on any day other than a Business Day,
the dividend payment due on such Dividend Payment Date shall be paid on the
Business Day immediately following such Dividend Payment Date.

"Dividend Periods" shall mean quarterly dividend periods commencing January 1,
March 1, June 1 and September 1 of each year and ending on and including the
day preceding the first day of the next succeeding Dividend Period (other than
the initial Dividend Period, which shall commence on May 6, 1996 and end on and
include June 30, 1996).

"Fair Market Value" shall mean the average of the daily Current Market Prices
of a share of Common Stock during the five (5) consecutive Trading Days
selected by the Company commencing not more than 20 Trading Days before, and
ending not later than, the earlier of the day in question and the day before
the "ex" date with respect to the issuance or distribution requiring such
computation.  The term "'ex' date," when used with respect to any issuance or
distribution, means the first day on which the Common Stock trades regular way,
without the right to receive such issuance or distribution, on the exchange or
in the market, as the case may be, used to determine that day's current Market
Price.

"Issue Date" shall mean the date on which the Company first issues a share of
Series A Preferred Stock.

"Junior Stock" shall mean the Common Stock and any other class or series of
shares of the Company over which the Series A Preferred Stock has preference or
priority in the payment of dividends or in the distribution of assets on any
liquidation, dissolution or winding up of the Company.

"Non-Electing Share" shall have the meaning set forth in paragraph (e) of
Section 7 hereof.

"Parity Stock" shall have the meaning set forth in paragraph (b) of Section 8
hereof.

                                       2
<PAGE>
"Permitted Common Stock Cash Distributions" means cash dividends and
distributions paid after December 31, 1995, not in excess of the Company's
cumulative undistributed net earnings at December 31, 1995, plus the cumulative
amount of funds from operations, as determined by the Board of Directors on a
basis consistent with the financial reporting practices of the Company, after
December 31, 1995, minus the cumulative amount of dividends accrued or paid on
the Series A Preferred Stock or any other class of Preferred Stock after
January 1, 1996.

"Person" shall mean any individual, partnership, limited liability company,
corporation or other entity, and shall include any successor (by merger or
otherwise) of such entity.

"Press Release" shall have the meaning set forth in paragraph (b) of Section 5
hereof.

"Securities" shall have the meaning set forth in paragraph (d) (iii) of Section
7 hereof.

"Series A Preferred Stock"  shall have the meaning set forth in the Recitals
hereof.

"set apart for payment" shall be deemed to include, without any action other
than the following, the recording by the Company in its accounting ledgers of
any accounting or bookkeeping entry which indicates, pursuant to a declaration
of dividends or other distribution by the Board of Directors, the allocation of
funds to be so paid on any series or class of capital stock of the Company;
PROVIDED, HOWEVER, that if any funds for a class or series of Junior Stock or
any class or series of stock ranking on a parity with the Series A Preferred
Stock as to the payment of dividends are placed in a separate account of the
Company or delivered to a disbursing, paying or other similar agent, then "set
apart for payment" with respect to the Series A Preferred Stock shall mean
placing such funds in a separate account or delivering such funds to a
disbursing, paying or other similar agent.

"Trading Day" shall mean any day on which the securities in question are traded
on the NYSE, or if such securities are not listed or admitted for trading on
the NYSE, on the principal national securities exchange on which such
securities are listed or admitted, or if not listed or admitted for trading of
any national securities exchange, on the National Market System of NASDAQ, or
if such securities are not quoted on such National Market System, in the
applicable securities market in which the securities are traded.

"Transaction" shall have the meaning set forth in paragraph (e) of Section 7
hereof.

"Transfer Agent" means SunTrust Bank, Atlanta, Georgia, or such other agent or
agents of the Company as may be designated by the Board of Directors or their
designee as the transfer agent for the Series A Preferred Stock.

"Voting Preferred Stock" shall have the meaning set forth in Section 9(a)
hereof.

                                       3
<PAGE>
         Section 3.  DIVIDENDS.

         (a)     The Holders of shares of the Series A Preferred Stock shall be
entitled to receive, when, as and if declared by the Board of Directors out of
funds legally available for that purpose, dividends payable in cash in an
amount per share of Series A Preferred Stock equal to the greater of $1.95 per
annum or the cash distributions declared or paid for the corresponding period
(determined on each Dividend Payment Date) on the number of shares of Common
Stock, or portion thereof, into which a share of Series A Preferred Stock is
convertible (under Section 7 hereof).  Such dividends shall be cumulative from
May 6, 1996, whether or not in any Dividend Period or Periods there shall be
funds of the Company legally available for the payment of such dividends, and
shall be payable quarterly, when, as and if declared by the Board of Directors,
in arrears on Dividend Payment Dates, commencing on the first Dividend Payment
Date after the Issue Date.  Each such dividend shall be payable in arrears to
the holders of record of shares of the Series A Preferred Stock, as they appear
on the stock records of the Company at the close of business on such record
dates, not more than 60 days preceding such Dividend Payment Dates thereof, as
shall be fixed by the Board of Directors.  Accrued and unpaid dividends for any
past Dividend Periods may be declared and paid at any time, without reference
to any regular Dividend Payment Date, to holders of record on such date, not
exceeding 45 days preceding the payment date thereof, as may be fixed by the
Board of Directors.

         (b)     The amount of dividends payable for each full Dividend Period
for the Series A Preferred Stock shall be computed by dividing the annual
dividend rate by four.  The amount of dividends payable for any period shorter
or longer than a full Dividend Period, on the Series A Preferred Stock shall be
computed on the basis of twelve 30-day months and a 360-day year.  Holders of
the Preferred Stock shall not be entitled to any dividends, whether payable in
cash, property or stock, in excess of cumulative dividends, as herein provided,
on the Series A Preferred Stock.  No interest, or sum of money in lieu of
interest, shall be payable in respect of any dividend payment or payments on
the Series A Preferred Stock that may be in arrears.

         (c)     So long as any shares of the Series A Preferred Stock are
outstanding, no dividends, except as described in the immediately following
sentence, shall be declared or paid or set apart for payment on any class or
series of Parity Stock for any period unless full cumulative dividends have
been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof set apart for such payment on the Series A
Preferred Stock for all Dividend Periods terminating on or prior to the
Dividend Payment Date on such class or series of Parity Stock.  When dividends
are not paid in full or a sum sufficient for such payment is not set apart, as
aforesaid, all dividends declared upon shares of the Series A Preferred Stock
and all dividends declared upon any other class or series of Parity Stock shall
be declared ratably in proportion to the respective amounts of dividends
accumulated and unpaid on the Series A Preferred Stock and accumulated and
unpaid on such Parity Stock.

         (d)     So long as any shares of the Series A Preferred Stock are
outstanding, no dividends (other than dividends or distributions paid in shares
of, or options, warrants or rights to subscribe for or purchase shares of,
Junior Stock), shall be declared or paid or set apart for payment or other
distribution declared or made upon Junior Stock, nor shall Junior Stock be
redeemed, purchased or

                                       4
<PAGE>
otherwise acquired (other than a redemption, purchase or other acquisition of
shares of Common Stock made for purposes of an employee incentive or benefit
plan of the Company or any subsidiary) for any consideration (or any moneys be
paid to or made available for a sinking fund for the redemption of any shares
of any such stock) by the Company, directly or indirectly (except by conversion
into or exchange for Junior Stock), unless in each case (i) the full cumulative
dividends on all outstanding shares of the Series A Preferred Stock and any
other Parity Stock of the Company shall have been paid or set apart for payment
for all past Dividend Periods with respect to the Series A Preferred Stock and
all past dividend periods with respect to such Parity Stock and (ii) sufficient
funds shall have been paid or set apart for the payment of the dividend for the
current Dividend Period with respect to the Series A Preferred Stock and the
current dividend period with respect to such Parity Stock. Notwithstanding the
foregoing limitations, the Company may at any time acquire shares of its
capital stock, without regard to rank, for the purpose of preserving its status
as a REIT.

         Section 4.  LIQUIDATION PREFERENCE.

         (a)     In the event of any liquidation, dissolution or winding up of
the Company, whether voluntary or involuntary, before any payment or
distribution of the assets of the Company (whether capital or surplus) shall be
made to or set apart for the holders of Junior Stock, the holders of the shares
of Series A Preferred Stock shall be entitled to receive twenty-five dollars
($25.00) per share of Series A Preferred Stock plus an amount equal to all
dividends (whether or not earned or declared) accrued and unpaid thereon to the
date of final distribution to such holders, but such holders shall not be
entitled to any further payment.  If, upon any liquidation, dissolution or
winding up of the Company, the assets of the Company, or proceeds thereof,
distributable among the holders of the shares of Series A Preferred Stock shall
be insufficient to pay in full the preferential amount aforesaid and
liquidating payments on any other shares of any class or series of Parity
Stock, then such assets, or the proceeds thereof, shall be distributed among
the holders of shares of Series A Preferred Stock and any such other Parity
Stock ratably in accordance with the respective amounts that would be payable
on such shares of Series A Preferred Stock and any such other Parity Stock if
all amounts payable thereon were paid in full.  For the purposes of this
Section 4, (i) a consolidation or merger of the Company with one or more
corporations, (ii) a sale or transfer of all or substantially all of the
Company's assets, or (iii) a statutory share exchange shall not be deemed to be
a liquidation, dissolution or winding up, voluntary or involuntary, of the
Company.

         (b)     Subject to the rights of the holders of shares of any series
or class or classes of stock ranking on a parity with or prior to the Series A
Preferred Stock upon liquidation, dissolution or winding up, upon any
liquidation, dissolution or winding up of the Company, after payment shall have
been made in full to the holders of the Series A Preferred Stock, as provided
in this Section 4, any other series or class or classes of Junior Stock shall,
subject to the respective terms and provisions (if any) applying thereto, be
entitled to receive any and all assets remaining to be paid or distributed, and
the holders of the Series A Preferred Stock shall not be entitled to share
therein.

                                       5
<PAGE>
         Section 5.  REDEMPTION AT THE OPTION OF THE COMPANY

         (a)     The Series A Preferred Stock shall not be redeemable by the
Company prior to April 30, 2001.  On and after April 30, 2001, the Company, at
its option, may redeem the shares of Series A Preferred Stock in whole or in
part, as set forth herein, subject to the provisions described below.

         (b)     The Series A Preferred Stock may be redeemed, in whole or in
part, at the option of the Company, at any time, only if for 20 Trading Days,
within any period of 30 consecutive Trading Days, including the last Trading
Day of such period, the Current Market Price of the Common Stock on each of
such 20 Trading Days equals or exceeds the Conversion Price in effect on such
Trading Day.  In order to exercise its redemption option, the Company must
issue a press release announcing the redemption (the "Press Release") prior to
the opening of business on the second Trading Day after the condition in the
preceding sentence has, from time to time, been met.  The Company may not issue
a Press Release prior to April 30, 2001.  The Press Release shall announce the
redemption and set forth the number of shares of Series A Preferred Stock which
the Company intends to redeem.  The Call Date shall be selected by the Company,
shall be specified in the notice of redemption and shall be not less than 30
days or more than 60 days after the date on which the Corporation issues the
Press Release.

         (c)     Upon redemption of Series A Preferred Stock by the Corporation
on the date specified in the notice to holders required under subparagraph (e)
of this Section 5 (the "Call Date"), each share of Series A Preferred Stock so
redeemed shall, at the option of the Company (i) be converted into a number of
shares of Common Stock equal to the liquidation preference (excluding any
accrued and unpaid dividends) of the shares of Series A Preferred Stock being
redeemed divided by the Conversion Price as of the opening of business on the
Call Date or (ii) be redeemed in cash at a price per share equal the aggregate
market value (determined as of the date of the notice of redemption) of the
number of shares of Common Stock into which the Series A Preferred Stock is
then convertible divided by the then current Conversion Price.

         Upon any redemption of Series A Preferred Stock, the Company shall pay
any accrued and unpaid dividends in arrears for any full Dividend Period ending
on or prior to the Call Date.  If the Call Date falls after a dividend payment
record date and prior to the corresponding Dividend Payment Date, then each
holder of Series A Preferred Stock at the close of business on such dividend
payment record date shall be entitled to the dividend payable on such shares on
the corresponding Dividend Payment Date.  Except as provided above, the Company
shall make no payment or allowance for unpaid dividends, whether or not in
arrears, on shares of Series A Preferred Stock called for redemption or on the
shares of Common Stock issued upon such redemption.

         (d)     If full cumulative dividends on the Series A Preferred Stock
and any other class or series of Parity Stock of the Company have not been paid
or declared and set apart for payment, the Series A Preferred Stock may not be
redeemed in part and the Company may not purchase or acquire shares of Series A
Preferred Stock, otherwise than pursuant to a purchase or exchange offer made
on the same terms to all holders of shares of Series A Preferred Stock.

                                       6
<PAGE>
         (e)     If the Company shall redeem shares of Series A Preferred Stock
pursuant to paragraph (a) of this Section 5, notice of such redemption shall be
given not more than four Business Days after the date on which the Corporation
issues the Press Release to each holder of record of the shares to be redeemed.
Such notice shall be provided by first class mail, postage prepaid, at such
holder's address as the same appears on the stock records of the Company, or by
publication in THE WALL STREET JOURNAL or THE NEW YORK TIMES, or if neither
such newspaper is then being published, any other daily newspaper of national
circulation.  If the Company elects to provide such notice of publication, it
shall also promptly mail notice of such redemption to the holders of the Series
A Preferred Stock to be redeemed.  Neither the failure to mail any notice
required by this paragraph (e), nor any defect therein or in the mailing
thereof, to any particular holder, shall affect the sufficiency of the notice
or the validity of the proceedings for redemption with respect to the other
holders.  Any notice which was mailed in the manner herein provided shall be
conclusively presumed to have been duly given on the date mailed whether or not
the holder receives the notice.  Each such mailed or published notice shall
state, as appropriate: (1) the Call Date: (2) the number of shares of Series A
Preferred Stock to be redeemed and, if fewer than all the shares held by such
holder are to be redeemed, the number of such shares to be redeemed from such
holder; (3) the number of shares of Common Stock to be issued, or the cash
redemption price, as the case may be, with respect to each share of Series A
Preferred Stock; (4) the place or places at which certificates for such shares
are to be surrendered for certificates representing shares of Common Stock; (5)
the then-current Conversion Price; and (6) that dividends on the shares to be
redeemed shall cease to accrue on such Call Date except as otherwise provided
herein.  Notice having been published or mailed as aforesaid, from and after
the Call Date (unless the Company shall fail to make available a number of
shares of Common Stock or amount of cash necessary to effect such redemption),
(i) except as otherwise provided herein, dividends on the shares of the Series
A Preferred Stock so called for redemption shall cease to accrue, (ii) said
shares shall no longer be deemed to be outstanding, and (iii) all rights of the
holders thereof as holders of Series A Preferred Stock of the Company shall
cease (except the rights to receive the shares of Common Stock and cash payable
upon such redemption, without interest thereon, upon surrender and endorsement
of their certificates if so required to receive any dividends payable thereon).
The Company's obligation to provide shares of Common Stock and cash in
accordance with the preceding sentence shall be deemed fulfilled if, on or
before the Call Date, the Corporation shall deposit with a bank or trust
company (which may be an affiliate of the Company) that has an office in the
Borough of Manhattan, City of New York and that has, or is an affiliate of a
bank or trust company that has, a capital and surplus of at least $50,000,000,
shares of Common Stock and/or any cash necessary for such redemption, in trust,
with irrevocable instructions that such shares of Common Stock and/or cash be
applied to the redemption of the shares of Series A Preferred Stock so called
for redemption.  At the close of business on the Call Date, each holder of
Series A Preferred Stock to be redeemed pursuant to Section 5(c)(i) (unless the
Company defaults in the delivery of the shares of Common Stock or cash payable
on such Call Date) shall be deemed to be the record holder of the number of
shares of Common Stock into which such Series A Preferred Stock is to be
redeemed, regardless of whether such holder has surrendered the certificates
representing the Series A Preferred Stock.  No interest shall accrue for the
benefit of the holders of Series A Preferred Stock to be redeemed on any cash
so set aside by the Company.  Subject to applicable escheat laws, any such cash
unclaimed at the end of two years from the Call Date shall

                                       7
<PAGE>
revert to the general funds of the Company, after which reversion the holders
of such shares so called for redemption shall look only to the general funds of
the Company for the payment of such cash.

         As promptly as practicable after the surrender in accordance with said
notice of the certificates for any such shares so redeemed (properly endorsed
or assigned for transfer, if the Company shall  so require and if the notice
shall so state), such shares shall be exchanged for certificates of shares of
Common Stock and any cash (without interest thereon) for which such shares have
been redeemed.  If fewer than all the outstanding shares of Series A Preferred
Stock are to be redeemed, shares to be redeemed shall be selected by the
Company from outstanding shares of Series A Preferred Stock not previously
called for redemption by lot or pro rata (as nearly as may be) or by any other
method determine by the Company in its sole discretion to be equitable.  If
fewer than all the shares of Series A Preferred Stock represented by any
certificate are redeemed, then new certificates representing the unredeemed
shares shall be issued without cost to the holder thereof.

         (f)     No fractional shares or scrip representing fractions of shares
of Common Stock shall be issued upon redemption of the Series A Preferred
Stock.  Instead of any fractional interest in a share of Common Stock that
would otherwise be deliverable upon the redemption of a share of Series A
Preferred Stock, the Company shall pay to the holder of such share an amount in
cash (computed to the nearest cent) based upon the Current Market Price of
Common Stock on the Trading Day immediately preceding the Call Date.  If more
than one share shall be surrendered for redemption at one time by the same
holder, the number of full shares of Common Stock issuable, or cash paid, upon
redemption thereof shall be computed on the basis of the aggregate number of
shares of Series A Preferred Stock so surrendered.

         (g)     The Company covenants that any shares of Common Stock issued
upon redemption of the Series A Preferred Stock shall be validly issued, fully
paid and non-assessable.  The Company shall endeavor to list the shares of
Common Stock required to be delivered upon redemption to the Series A Preferred
Stock, prior to such redemption, upon each national securities exchange, if
any, upon which the outstanding Common Stock is listed at the time of such
delivery.

         The Company shall endeavor to take any action necessary to ensure that
any shares of Common Stock issued upon the redemption of Series A Preferred
Stock are freely transferable and not subject to any resale restrictions under
the Securities Act of 1933, as amended (the "Act"), of any applicable state
securities or blue sky laws (other than any shares of Common Stock issued upon
redemption of any Series A Preferred Stock which are held by an "affiliate" (as
defined in Rule 144 under the Act) of the Company). Notwithstanding the
foregoing limitations, the Company may at any time acquire shares of its
capital stock, without regard to rank, for the purpose of preserving its status
as a REIT.

         Section 6.  SHARES TO BE RETIRED.

         All shares of Series A Preferred Stock which shall have been issued
and reacquired in any manner by the Company shall be restored to the status of
authorized but unissued shares of Preferred Stock, without designation as to
series.  The Company may also retire any unissued shares of

                                       8
<PAGE>
Series A Preferred Stock, and such shares shall then be restored to the status
of authorized but unissued shares of Preferred Stock, without designation as to
series.

         Section 7.  CONVERSION.

         Holders of shares of Series A Preferred Stock shall have the right to
convert all or a portion of such shares in to shares of Common Stock, as
follows:

         (a)     Subject to and upon compliance with the provisions of this
Section 7, a holder of shares of Series A Preferred Stock shall have the right,
at his or her option, at any time to convert such shares into the number of
fully paid and non-assessable shares of Common Stock obtained by dividing the
aggregate liquidation preference (excluding any accrued and unpaid dividends)
of such shares by the Conversion Price (as in effect at the time and on the
date provided for in the last paragraph or paragraph (b) of this Section 7) by
surrendering such shares to be converted, such surrender to be made in the
manner provided in Section 7, paragraph (b); PROVIDED, HOWEVER, that the right
to convert shares called for redemption pursuant to Section 5 shall terminate
at the close of business on the Call Date fixed for such redemption, unless the
Company shall default in making payment of the shares of Common Stock and any
cash payable upon such redemption under Section 5 hereof.

         (b)     In order to exercise the conversion right, the holder of each
share of Series A Preferred Stock to be converted shall surrender the
certificate representing such share, duly endorsed or assigned to the Company
or in blank, at the office of the Transfer Agent; accompanied by written notice
to the Company that the holder thereof elects to convert such Series A
Preferred Stock.  Unless the shares issuable on conversion are to be issued in
the same name as the name in which such share of Series A Preferred Stock is
registered, each share surrendered for conversion shall be accompanied by
instruments of transfer, in form satisfactory to the Company, duly executed by
the holder or such holder's duly authorized attorney and an amount sufficient
to pay any transfer or similar tax (or evidence reasonably satisfactory to the
Company demonstrating that such taxes have been paid).

         Holders of shares of Series A Preferred Stock at the close of business
on a dividend payment record date shall be entitled to receive the dividend
payable on such shares on the corresponding Dividend Payment Date
notwithstanding the conversion thereof following such dividend payment record
date and prior to such Dividend Payment date.  However, shares of Series A
Preferred Stock surrendered for conversion during the period between the close
of business on any dividend payment record date and the opening of business on
the corresponding Dividend Payment Date (except shares converted after the
issuance of notice of redemption with respect to a Call Date during such
period, such shares of Series A Preferred Stock being entitled to such dividend
on the Dividend Payment Date) must be accompanied by a payment of an amount
equal to the dividend payable on such shares on such Dividend Payment Date.  A
holder of shares of Series A Preferred Stock on a dividend payment record date
who (or whose transferee) tenders any such shares for conversion into shares of
Common Stock on such Dividend Payment Date will receive the dividend payable by
the Company on such shares of Series A Preferred Stock on such date, and the
converting holder need not include

                                       9
<PAGE>
payment of the amount of such dividend upon surrender of shares of Series A
Preferred Stock for conversion.  Except as provided above, the Company shall
make no payment or allowance for unpaid dividends, whether or not in arrears,
on converted shares or for dividends on the shares of Common Stock issued upon
such conversion.

         As promptly as practicable after the surrender of certificates for
shares of Series A Preferred Stock as aforesaid, the Company shall issue and
shall deliver at such office to such holder, or on his or her written order, a
certificate or certificates for the number of full shares of Common Stock
issuable upon the conversion of such shares in accordance with provisions of
this Section 7, and any factional interest in respect of a share of Common
Stock arising upon such conversion shall be settled as provided in paragraph
(c) of this Section 7.

         Each conversion shall be deemed to have been effected immediately
prior to the close of business on the date on which certificates for shares of
Series A Preferred Stock shall have been surrendered and such notice (and if
applicable, payment of an amount equal to the dividend payable on such shares)
received by the Company as aforesaid, and the person or persons in whose name
or names any certificate or certificates for shares of Common Stock shall be
issuable upon such conversion shall be deemed to have become the holder or
holders of record of the shares represented thereby at such time on such date
and such conversion shall be at the Conversion Price in effect at such time on
such date unless the stock transfer books of the Company shall be closed on
that date, in which event such person or persons shall be deemed to have become
holder or holders of record at the close of business on the next succeeding day
on which such stock transfer books are open, but such conversion shall be at
the Conversion Price in effect on the date on which such shares shall have been
surrendered and such notice received by the Company.

         (c)     No fractional shares of scrip representing of shares of Common
Stock shall be issued upon conversion of the Shares A Preferred Stock.  Instead
of any fractional interest in a share of Common Stock that would otherwise be
deliverable upon the conversion of a share of Series A Preferred Stock, the
Company shall pay to the holder of such share an amount in cash based upon the
Current Market Price of Common Stock on the Trading Day immediately preceding
the date of conversion.  If more than one share shall be surrendered for
conversion at one time by the same holder, the number of full shares of Common
Stock issuable upon conversion thereof shall be computed on the basis of the
aggregate number of shares of Series A Preferred Stock so surrendered.

         (d)     The Conversion Price shall be adjusted from time to time as
follows:

                 (i)      If the Company shall after the Issue Date (A) pay a
dividend or make a distribution of its capital stock in shares of its Common
Stock, (B) subdivide its outstanding Common Stock into a greater number of
shares, (C) combine its outstanding Common Stock into a smaller number of
shares or (D) issue any shares of capital stock by reclassification of its
Common Stock, the Conversion Price in effect at the opening of business on the
following day following the date fixed for the determination of stockholders
entitled to receive such dividend or distribution or at the opening of business
on the day following the day on which such subdivision, combination or
reclassification becomes effective, as the case may be, shall be adjusted so
that the holder of any share

                                       10
<PAGE>
of Series A Preferred Stock thereafter surrendered for conversion shall be
entitled to receive the number of shares of Common Stock that such holder would
have owned or have been entitled to receive after the happening of any of the
events described above had such shares of Series A Preferred Stock been
converted immediately prior to the record date in the case of a dividend or
distribution or the effective date in the case of a subdivision, combination or
reclassification.  An adjustment made pursuant to this subparagraph (i) shall
become effective immediately after the opening of business on the day next
following the record date (except as provided in paragraph (h) below) in the
case of a dividend or distribution and shall become effective immediately after
the opening of business on the day next following the effective date in the
case of a subdivision, combination or reclassification.

                 (ii)     If the Company shall, after the Issue Date, issue
rights, options or warrants to all holders of Common Stock entitling them (for
a period expiring within 45 days after the record date mentioned below) to
subscribe for or purchase Common Stock at a price per share less than the Fair
Market Value per share of Common Stock on the record date for the determination
of stockholders entitled to receive such rights or warrants, then the
Conversion Price in effect at the opening of business on the day next following
such record date shall be adjusted to equal the price determined by multiplying
(I) the Conversion Price in effect immediately prior to the opening of business
on the day following the date fixed for such determination by (II) a fraction,
the numerator of which shall be the sums of (A) the number of shares of Common
Stock outstanding on the close of business on the date fixed for such
determination and (B) the number of shares that the aggregate proceeds to the
Company from the exercise of such rights or warrants for Common Stock would
purchase at such Fair Market Value, and the denominator of which shall be the
sums of (A) the number of Shares of Common Stock outstanding on the close of
business on the date fixed for such determination and (B) on the number of
additional shares of Common Stock offered for subscription or purchase pursuant
to such rights or warrants.  Such adjustment shall become effective immediately
after the opening of business on the day next following such record date
(except as provided in paragraph (h) below).  In determining whether any rights
or warrants entitle the holders of Common Stock to subscribe for or purchase
shares of Common Stock at less than such Fair Market Value, there shall be
taken into account any consideration received by the Company upon issuance and
upon exercise of such rights warrants, the value of such consideration, if
other than cash, to be determined by the Chief Executive Officer or the Board
of Directors.

                 (iii)    If the Company shall distribute to all holders of its
Common Stock any shares of capital stock of the Company (other than Common
Stock) or evidence of its indebtedness or assets (excluding Permitted Common
Stock Cash Distributions) or rights warrants to subscribe for or purchase any
of its securities (excluding those rights and warrants issued to all holders of
Common Stock entitling them for a period expiring within 45 days after the
record date referred to in subparagraph (ii) above to subscribe for or purchase
Common Stock, which rights and warrants are referred to in and treated under
subparagraph (ii) above) (any of the foregoing being hereinafter in this
subparagraph (iii) called the "Securities"), then in each such case the
Conversion Price shall be adjusted so that it shall equal the price determined
by multiplying (I) the Conversion Price in effect immediately prior to the
close of business on the date fixed for the determination of stockholders
entitled to receive such distribution by (II) a fraction, the numerator of
which shall be the Fair Market Value per share of the Common Stock on the
record date mentioned below less the then fair market

                                       11
<PAGE>
value (as determined by the Chief Executive Officer or the Board of Directors,
whose determination shall be conclusive), of the portion of the capital stock
or assets or evidences of indebtedness so distributed or of such rights or
warrants applicable to one share of Common Stock, and the denominator of which
shall be the Fair Market Value per share of the Common Stock on the record date
mentioned below.  Such adjustment shall become effective immediately at the
opening of business on the Business Day next following (except as provided in
paragraph (h) below) the record date for the determination of shareholders
entitled to receive such distribution.  For the purposes of this clause (iii),
the distribution of a Security, which is distributed not only to the holders of
the Common Stock on the date fixed for the determination of stockholders
entitled to such distribution of such Security, but also is distributed with
each share of Common Stock delivered to a Person converting a share of Series A
Preferred Stock after such determination date, shall not require an adjustment
of the Conversion Price pursuant to this clause (iii); PROVIDED that on the
date, if any, on which a person converting a share of Series A Preferred Stock
would no longer be entitled to receive such Security with a share of Common
Stock (other than as a result of the termination of all such Securities), a
distribution of such Securities shall be deemed to have occurred and the
Conversion Price shall be adjusted ass provided in this clause (iii) and such
day shall be deemed to be "the date fixed for the determination of the
stockholders entitled to receive such distribution" and "the record date"
within the meaning of the two preceding sentences.

                 (iv)     No adjustment in the Conversion Price shall be
required unless such adjustment would require a cumulative increase or decrease
of at least 1% in such; PROVIDED, HOWEVER, that any adjustments that by reason
of this subparagraph (iv) are not required to be made shall be carried forward
and taken into account in any subsequent adjustment until made; and PROVIDED,
FURTHER, that any adjustment shall be required and made in accordance with the
provisions of this Section 7 (other than this subparagraph (iv) not later than
such time as may be required in order to preserve the tax-free nature of a
distribution to the holders of shares of Common Stock.  Notwithstanding any
other provisions of this Section 7, the Company shall not be required to make
any adjustment of the Conversion Price for the issuance of any shares of Common
Stock pursuant to any plan providing for the reinvestment of dividends or
interest payable on securities of the Company and the investment of additional
optional amounts in shares of Common Stock under such plan.  All calculations
under this Section 7 shall be made to the nearest cent (with $.005 being
rounded upward) or to the nearest one-tenth of a share (with .05 of a share
being rounded upward), as the case may be.  Anything in this paragraph (d) to
the contrary notwithstanding, the Company shall be entitled, to the extent
permitted by law, to make such reductions in the Conversion Price, in addition
to those required by this paragraph (d), as it in its discretion shall
determine to be advisable in order that any stock dividends, subdivision of
shares, reclassification or combination of shares, distribution of rights or
warrants to purchase stock or securities, or a distribution or other assets
(other than cash dividends) hereafter made by the Company to its stockholders
shall not be taxable, or if that is not possible, to diminish any income taxes
that are otherwise payable because of such event.

         (e)     If the Company shall be a party to any transaction (including
without limitation a merger, consolidation, statutory share exchange, self
tender offer for all or substantially all shares of Common Stock, sale of all
or substantially all of the Company's assets or recapitalization of the

                                       12
<PAGE>
Common Stock and excluding any transaction as to which subparagraph (d)(i) of
this Section 7 applies) (each of the foregoing being referred to herein as a
"Transaction"), in each case as a result of which shares of Common Stock shall
be converted into the right to receive stock, securities or other property
(including cash or any combination thereof), each share of Series A Preferred
Stock which is not converted into the right to receive stock, securities or
other property in connection with such Transaction shall thereafter be
convertible into the kind and amount of shares of stock, securities and other
property (including cash or any combination thereof) receivables upon the
consummation of such Transaction by a holder of that number of shares of Common
Stock into which one share of Series A Preferred Stock was convertible
immediately prior to such Transaction, assuming such holder of Common Stock (i)
is not a Person with which the Company consolidated or into which the Company
merged or which merged into the Company or to which such sale or transfer was
made, as the case may be ("Constituent Person"), or an affiliate of a
Constituent Person and (ii) failed to exercise his rights of election, if any,
as to the kind of amount of stock, securities and other property (including
cash) receivable upon such Transaction (provided that if the kind or amount of
stock, securities and other property (including cash) receivable upon such
Transaction is not the same for each share of Common Stock of the Company held
immediately prior to such Transaction by other than a Constituent Person or an
affiliate thereof and in respect of which such rights of election shall not
have been exercised ("Non-Electing Share"), then for the purpose of this
paragraph (e) the kind and amount of stock, securities and other property
(including cash) receivable upon such Transaction by each Non-electing Share
shall be deemed to be the kind and amount so receivable per share by a
plurality of the non-election shares).  The Company shall not be a party to any
Transaction unless the terms of such Transaction are consistent with the
provisions of this paragraph (e), and it shall not consent or agree to the
occurrence of any Transaction until the Company has entered into an agreement
with the successor or purchasing entity, as the case may be, for the benefit of
the holders of the Series A Preferred Stock that will contain provisions
enabling the holders of the Series A Preferred Stock that remains outstanding
after such Transaction to convert into the consideration received by holders of
Common Stock at the Conversion Price in effect immediately prior to such
Transaction.  The provisions of the paragraph (e) shall similarly apply to
successive Transactions.

         (f)     If:

                 (i)      the Company shall declare a dividend (or any other
distribution) on the Common Stock (other than Permitted Common Stock Cash
Distributions); or

                 (ii)     the Company shall authorize the granting to the
holders of the Common Stock of rights or warrants to subscribe for or purchase
any shares of any class or any other rights or warrants; or

                 (iii)    there shall be any reclassification of the Common
Stock (other than any event to which subparagraph (d)(i) of this Section 7
applies) or any consolidation or merger to which the Company is a party and for
which approval of any stockholders of the Company is required, or a statutory
share exchange, or self tender offer by the Company for all or substantially
all of its outstanding shares of Common Stock or the sale or transfer of all
substantially all of the assets of the Company as an entity; or

                                       13
<PAGE>
                 (iv)     there shall occur the involuntary liquidation,
dissolution or winding up of the Company,

then the Company shall cause to be filed with the Transfer Agent and shall
cause to be mailed to the holders of shares of the Service A Preferred Stock at
their addresses as shown on the stock records of the Company, as promptly as
possible, but at least 15 days prior to the applicable date hereinafter
specified, a notice stating (A) the date on which a record is to be taken for
the purpose of such dividend, distribution or rights or warrants, or, if a
record is not to be taken, the date as of which the holders of Common Stock of
record to be entitled to such dividend, distribution or rights or warrants are
to be determined or (B) the date on which such reclassification, consolidation,
merger, statutory share exchange, sale, transfer, liquidation, dissolution or
winding up is expected to become effective, and the date as of which it is
expected that holders of Common Stock record shall be entitled to exchange
their shares of Common Stock for securities or other property, if any,
deliverable upon such reclassification, consolidation, merger, statutory share
exchange, sale, transfer, liquidation, dissolution or winding up.  Failure to
give or receive such notice of any defect therein shall not affect the legality
or validity of the proceedings described in this Section 7.

         (g)     Whenever the Conversion Price is adjusted as herein provided,
the Company shall promptly file with the Transfer Agent an officer's
certificate setting forth the Conversion Price after such adjustment and
setting forth a brief statement of the facts requiring such adjustment which
certificate shall be conclusive evidence of the correctness of such adjustment
absent manifest error.  Promptly after delivery of such certificate, the
Company shall prepare a notice of such adjustment of the Conversion Price
setting forth the adjusted Conversion Price and the effective date of such
adjustment becomes effective and shall mail such notice of such adjustment of
the Conversion Price to the holder of each share of Series A Preferred Stock at
such holder's last address as shown on the stock records of the Company.

         (h)     In any case in which paragraph (d) of this Section 7 provides
that an adjustment shall become effective on the day next following the record
date for an event, the Company may defer until the occurrence of such event (A)
issuing to the holder of any share of Series A Preferred Stock converted after
such record date and before the occurrence of such event the additional shares
of Common Stock issuable upon such conversion by reason of the adjustment
required by such event over and above the Common Stock issuable upon such
conversion before giving effect to such adjustment and (B) paying to such
holder any amount of cash in lieu of any fraction pursuant to paragraph (c) of
this Section 7.

         (i)     There shall be no adjustment of the Conversion Price in case
of the issuance of any stock of the Company in a reorganization, acquisition or
other similar transaction except as specifically set forth in this Section 7.
If any action or transaction would require adjustment of the Conversion Price
pursuant to more than one paragraph of this Section 7, only one adjustment
shall be made and such adjustment shall be the amount of adjustment that has
the highest absolute value.

         (j)     If the Company shall take any action affecting the Common
Stock, other than action described in this Section 7, that in the opinion of
the Board of Directors would materially adversely

                                       14
<PAGE>
affect the conversion rights of the holders of the shares of Series A Preferred
Stock, the Conversion Price for the Series A Preferred Stock may be adjusted,
to the extent permitted by law, in such manner, if any, and at such time, as
the Board of Directors, in its sole discretion, may determine to be equitable
in the circumstances.

         (k)     The Company covenants that it will at all times reserve and
keep available, free form preemptive rights, out the aggregate of its
authorized but unissued shares of Common Stock for the purpose of effecting
conversion of the Series A Preferred Stock, the full number of shares of Common
Stock deliverable upon the conversion of all outstanding shares of Series A
Preferred Stock not theretofore converted.  For purposes of this paragraph (k),
the number of shares of Common Stock shall be deliverable upon the conversion
of all outstanding shares of Series A Preferred Stock shall be computed as if
at the time of computation all such outstanding shares were held by a single
holder.

         The Company covenants that any shares of Common Stock issued upon the
conversion of the Series A Preferred Stock shall be validly issued, fully paid
and non-assessable.

         The Company shall endeavor to list the shares of Common Stock required
to be delivered upon conversion of the Series A Preferred Stock, prior to such
delivery, upon each national securities exchange, if any, upon which the
outstanding Common Stock is listed at the time of such delivery.

         Prior to the delivery of any securities that the Company shall be
obligated to deliver upon conversion of the Series A Preferred Stock, the
Company shall endeavor to comply with all federal and state laws and
regulations thereunder requiring the registration of such securities with, or
any approval of or consent to the delivery thereof, by any governmental
authority.

         (l)     The Company will pay any and all documentary stamp or similar
issue or transfer taxes payable in respect of the issue or delivery of shares
of Common Stock or other securities or property on conversion of the Series A
Preferred Stock pursuant hereto; PROVIDED, HOWEVER, that the Company shall not
be required to pay any tax that may be payable in respect of any transfer
involved in the issue or delivery of shares of Common Stock or other securities
or property in a name other than that of the holder of the Series A Preferred
Stock to be converted, and no such issue or delivery shall be made unless and
until the person requesting such issue or delivery has paid to the Company the
amount of any such tax or established, to the reasonable satisfaction of the
Company, that such tax has been paid.

         Section 8.  RANKING.  Any class or series of stock of the Company
shall be deemed to rank:

         (a)     prior to the Series A Preferred Stock, as to the payment of
dividends and as to distribution of assets upon liquidation, dissolution or
winding up, if the holders of such class or series shall be entitled to the
receipt of dividends or of amounts distributable upon liquidation, dissolution
or winding up, as the case may be, in preference or priority to the holders of
Series A Preferred Stock;

                                       15
<PAGE>
         (b)     on a parity with the Series A Preferred Stock, as to the
payment of dividends and as to distribution of assets upon liquidation,
dissolution or winding up, whether or not the dividend rates, dividend payment
dates or redemption or liquidation prices per share thereof be different from
those of the Series A Preferred Stock, if the holders of such class of stock or
series and the Series A Preferred Stock shall be entitled to the receipt of
dividends and of amounts distributable upon liquidation, dissolution or winding
up in proportion to their respective amounts of accrued and unpaid dividends
per share or liquidation preferences, without preference or priority one over
the other ("Parity Stock"); the Series A Preferred Stock and the Series B
Preferred Stock shall be Parity Stock with respect to the Series A Preferred
Stock; and

         (c)     junior to the Series A Preferred Stock, as to the payment of
dividends or as to the distribution of assets upon liquidation, dissolution or
winding up, if such stock or series shall be Common Stock or if the holders of
Series A Preferred Stock shall be entitled to receipt of dividends or of
amounts distributable upon liquidation, dissolution or winding up, as the case
may be, in preference or priority to the holders of shares of such stock or
series.

         Section 9.  VOTING.

         (a)     If and whenever six quarterly dividends (whether or not
consecutive) payable on the Series A Preferred Stock or any series or class of
Parity Stock shall be in arrears (which shall, with respect to any such
quarterly dividend, mean that any such dividend has not been paid in full),
whether or not earned or declared, the number of directors then constituting
the Board of Directors shall be increased by two (if not already increased by
reason of a similar arrearage with respect to any Parity Stock) and the holders
of shares of Series A Preferred Stock, together with the holders of shares of
every other series of Parity Stock (any such other series, the "Voting
Preferred Stock"), voting as a single class regardless of series, shall be
entitled to elect the two additional directors to serve on the Board of
Directors at any annual meeting of stockholders or special meeting held in
place thereof, or at a special meeting of the holders of the Series A Preferred
Stock and the Voting Preferred Stock called as hereinafter provided.  Whenever
all arrears in dividends on the Series A Preferred Stock and the Voting
Preferred Stock then outstanding shall have been paid and dividends thereon for
the current quarterly dividend period shall have been paid or declared and set
apart for payment, then the right of the holders of the Series A Preferred
Stock and the Voting Preferred Stock to elect such additional two directors
shall cease (but subject always to the same provision for the vesting of such
voting rights in the case of any similar future arrearages in six quarterly
dividends), and the terms of office of all persons elected as directors by the
holders of the Series A Preferred Stock and the Voting Preferred Stock shall
forthwith terminate and the number of the Board of Directors shall be reduced
accordingly.  At any time after such voting power shall have been so vested in
the holders of shares of Series A Preferred Stock and the Voting Preferred
Stock, the secretary of the Company may, and upon the written request of any
holder of Series A Preferred Stock (addressed to the secretary at the principal
office of the corporation) shall, call a special meeting of the holders of the
Series A Preferred Stock and of the Voting Preferred Stock for the election of
the two directors to be elected by them as herein provided, such call to be
made by notice similar to that provided in the Bylaws of the Company for a
special meeting of the stockholders or as required by law.  If any such special
meeting required to be called as above provided shall not be called by the

                                       16
<PAGE>
secretary within 20 days after receipt of any such request, then any holder of
shares of Series A Preferred Stock may call such meeting, upon the notice above
provided, and for that purpose shall have access to the stock books of the
Company.  The directors elected at any such special meeting shall hold office
until the next annual meeting of the stockholders or special meeting held in
lieu thereof if such office shall not have previously terminated as above
provided.  If any vacancy shall occur among the directors elected by the
holders of the Series A Preferred Stock and the Voting Preferred Stock, a
successor shall be elected by the Board of Directors, upon the nomination of
the then- remaining director elected by the holders of the Series A Preferred
Stock and the Voting Preferred Stock or the successor of such remaining
director, to serve until the next annual meeting of the stockholders or special
meeting held in place thereof if such office shall not have previously
terminated as provided above.

         (b)     So long as any shares of Series A Preferred Stock are
outstanding, in addition to any other vote or consent of stockholders required
by law or by the Charter, as amended, the affirmative vote of at least 66 2/3%
of the votes entitled to be cast by the holders of the shares of Series A
Preferred Stock and the Voting Preferred Stock, at the time outstanding, acting
as a single class regardless of series, at any meeting called for the purpose,
shall be necessary for effecting or validation:

                 (i)      Any amendment, alteration or repeal of any of the
provisions of these Articles Supplementary that materially adversely affects
the voting powers, rights or preferences of the holders of the Series A
Preferred Stock or the Voting Preferred Stock; PROVIDED, HOWEVER, that the
amendment of the provisions of the Charter so as to authorize or create, or to
increase the authorized amount, of any Junior Stock or any shares of any class
ranking on a parity with the Series A Preferred Stock or the Voting Preferred
Stock shall not be deemed to materially adversely affect the voting powers,
rights or preferences of the holders of Series A Preferred Stock, and PROVIDED,
FURTHER, that if any such amendment, alteration or repeal would materially
adversely affect any voting powers, rights of preferences of the Series A
Preferred Stock or another series of Voting Preferred Stock that are not
enjoyed by some or all of the other series which otherwise would be entitled to
vote in accordance herewith, the affirmative vote of least 66 2/3% of the votes
entitled to be cast by holders of all series similarly affected, similarly
given, shall be required in lieu of the affirmative vote of at least 66 2/3% of
the votes entitled to be cast by the holders of the shares of Series A
Preferred Stock and the Voting Preferred Stock which otherwise would be
entitled to vote in accordance herewith; or

                 (ii)     The authorization or creation of, or the increase in
the authorized amount of, any shares of any class or any security convertible
into shares of any class ranking prior to the Series A Preferred Stock in the
distribution of assets on any liquidation, dissolution or winding up of the
Company or in the payment of dividends; PROVIDED, HOWEVER, that no such vote of
the holders of Series A Preferred Stock shall be required if, at or prior to
the time when such amendment, alteration or repeal is to take effect, or when
the issuance of any such prior shares of convertible security is to be made, as
the case may be, provision is made for the redemption of all shares of Series A
Preferred Stock at the time outstanding.

                                       17
<PAGE>
         For purposes of the foregoing provisions of this Section 9, each share
of Series A Preferred Stock shall have one (1) vote per share, except that when
any other series of preferred stock shall have the right to vote with the
Series A Preferred Stock as a single class on any matter, then the Series A
Preferred Stock and such other series shall have with respect to such matters
one (1) vote per $25.00 of stated liquidation preference.  Except as otherwise
required by applicable law or as set forth herein, the shares of Series A
Preferred Stock shall not have any relative, participating, optional or other
special voting rights and powers other than as set forth herein, and the
consent of the holders thereof shall not be required for the taking of any
corporate action.

         Section 10.  RECORD HOLDERS.  The Company and the Transfer Agent may
deem and treat the record holder of any shares of Series A Preferred Stock as
the true and lawful owner thereof for all purposes, and neither the Company nor
the Transfer Agent shall be affected by any notice to the contrary.

         IN WITNESS WHEREOF, the Company has caused these Articles
Supplementary to be signed in its name and on its behalf on this 30th day of
April, 1996, by its President who acknowledges that these Articles
Supplementary are the act of the Company and that to the best of his knowledge,
information and belief and under penalties for perjury all matters and facts
contained in these Articles Supplementary are true in all material respects.

                                         FELCOR SUITE HOTELS, INC.

                                         By:  /s/ THOMAS J. CORCORAN, JR.
                                            ---------------------------------
                                            Name: Thomas J. Corcoran, Jr.
                                                 ----------------------------
                                            Title:    President
                                                  ---------------------------

                                         Attest:

                                         /s/ THOMAS L. WIESE
                                         ------------------------------------
                                            Name: Thomas L. Wiese
                                                 ----------------------------
                                            Title:    Secretary
                                                 ----------------------------

                                                    (Corporate Seal)

                                       18
<PAGE>
                              STATE OF MARYLAND
                                                                          465025

                              STATE DEPARTMENT OF
                            ASSESSMENTS AND TAXATION
              301 West Preston Street Baltimore, Maryland 21201

                                                           DATE: AUGUST 09, 1996

     THIS IS TO ADVISE YOU THAT THE ARTICLES OF AMENDMENT FOR

FELCOR SUITE HOTELS, INC.

WERE RECEIVED AND APPROVED FOR RECORD ON AUGUST 9, 1996 AT 10:10 AM.

FEE PAID:                               50.00

     [SEAL]

                                                     HARRY J. NOONAN
                                                     CHARTER SPECIALIST

<PAGE>

                             ARTICLES OF AMENDMENT
                                       OF
                           FELCOR SUITE HOTELS, INC.

         FelCor Suite Hotels, Inc., a Maryland corporation (the "Corporation"),
certifies as follows:

         FIRST: The Corporation desires to amend its Charter as currently in
effect.

         SECOND: Article V of the Charter of the Corporation is hereby amended
as set forth below:

                 (1) the phrase "Except as provided in subsection D.(9) of this
         Article V," contained in section D.(2)(b) of Article V shall be
         amended to read "Except as provided in subsections D.(9) and D.(12) of
         this Article V,"; (2) the phrase "Notwithstanding any other provisions
         herein," contained in each of sections D.(2)(c) through D.(2)(f) of
         Article V shall be amended to read "Notwithstanding any other
         provisions herein, except for subsection D.(12) of this Article V,";
         (3) the phrase "Nothing contained in this Article V" contained in
         section D.(7) of Article V shall be amended to read "Except for the
         provisions of subsection D.(12), nothing contained in this Article V";
         and (4) a new section D.(12) shall be added to Article V, providing in
         its entirety as follows:

                          "(12)   New York Stock Exchange Transactions.
                 Nothing in this amended and restated Charter shall prohibit
                 the settlement of any transaction entered into through the
                 facilities of the New York Stock Exchange.  The immediately
                 preceding sentence shall not limit the authority of the Board
                 of Directors to take any and all actions it deems necessary or
                 advisable to protect the Corporation and the interests of its
                 stockholders in preserving the Corporation's status as a REIT,
                 so long as such actions do not prohibit the settlement of any
                 transactions entered into through the facilities of the New
                 York Stock Exchange."

         THIRD: The amendment of the Corporation's Charter set forth in these
Articles of Amendment was advised by the Board of Directors of the Corporation
and was approved by the shareholders of the Corporation.
<PAGE>
         IN WITNESS WHEREOF, the Corporation has caused these Articles of
Amendment to be executed in its name and on its behalf on the 8th day of
August, 1996, by its Senior Vice President, who acknowledges that these
Articles of Amendment are the act of the Corporation and certifies that, to the
best of his knowledge, information and belief and under penalties for perjury,
all matters and facts contained in these Articles of Amendment are true in all
material respects.

ATTEST:                                   FELCOR SUITE HOTELS, INC.

/s/ THOMAS L. WIESE                       By: /s/ LAWRENCE D. ROBINSON    (SEAL)
-----------------------------                -----------------------------
Thomas L. Wiese                              Lawrence D. Robinson
Assistant Secretary                          Senior Vice President

                                     -2-

<PAGE>
                               STATE OF MARYLAND

                                                                          544239

                              STATE DEPARTMENT OF
                            ASSESSMENTS AND TAXATION
              301 West Preston Street Baltimore, Maryland 21201

                                                             DATE: JUNE 24, 1997

     THIS IS TO ADVISE YOU THAT THE ARTICLES OF AMENDMENT FOR

FELCOR SUITE HOTELS, INC.

     WERE RECEIVED AND APPROVED FOR RECORD ON JUNE 24, 1997 AT 10:13 AM.

FEE PAID:                         50.00

     [SEAL]
                                                JOSEPH V. STEWART
                                                CHARTER SPECIALIST

<PAGE>
                             ARTICLES OF AMENDMENT
                              OF JUNE 24, 1997
                            FELCOR SUITE HOTELS INC.

     FelCor Suite Hotels, Inc., a Maryland corporation (the "Corporation"),
certifies as follows:

     FIRST: The Corporation desires to amend its Charter as currently in effect.

     SECOND: Article IX of the Charter of the Corporation is hereby amended as
set forth below:

     The following shall be deleted:

                                   ARTICLE IX

                           Limitation on Indebtedness

     The Corporation may not incur or suffer to exist as of the end of any
     month Indebtedness (as defined below) in an amount in excess of 40% of the
     Corporation's investment in hotel properties, at its cost, after giving
     effect to the Corporation's use of proceeds from any Indebtedness. The
     Corporation's investment in hotel properties shall include all investments
     by the Corporation constituting, evidencing or secured by an interest in
     property, whether tangible or intangible and whether real, personal or
     mixed, that is used or intended for use in, or in any manner connected
     with or relating to, the ownership or leasing of hotels. In determining
     its cost of such investments, there shall be included (1) the amount of
     all cash paid and the value (as determined by the Board of Directors for
     purposes of such investment) of any other property transferred therefor
     by the Corporation, (2) the amount of all Indebtedness and other
     obligations assumed or incurred by the Corporation or to which the
     Corporation takes subject, and (3) the value (as determined by the Board
     of Directors for the purposes of such investment) of all equity securities
     of which the issuer is an entity that is, or upon such investment will be,
     included within the Corporation and which are issued (otherwise than for
     cash) to, or retained by, any person other than the Corporation in
     connection with such investment. For purposes of the foregoing
     restriction, (A) "Indebtedness" of the Corporation shall mean the
     consolidated liabilities of the Corporation for borrowed money (including
     all notes payable and drafts accepted representing extensions of credit)
     and all obligations evidenced by bonds, debentures, notes or similar
     instruments on which interest charges are customarily paid, including
     obligations under capital leases, and (B) "Corporation" shall mean this
     Corporation and any subsidiary entity consolidated therewith, under
     generally accepted accounting principals.

<PAGE>

     THIRD: The amendment of the Corporation's Charter set forth in these
Articles of Amendment was advised by the Board of Directors of the Corporation
and was approved by the shareholders of the Corporation.

                                     -2-

<PAGE>

     IN WITNESS WHEREOF, the Corporation has caused these Articles of Amendment
to be executed in its name and on its behalf on the 16th day of June, 1997, by
its Senior Vice President, who acknowledges that these Articles of Amendment
are the act of the Corporation and certifies that, to the best of his
knowledge, information and belief and under penalties for perjury, all matters
and facts contained in these Articles of Amendment are true in all material
respects.

     ATTEST:                                 FELCOR SUITE HOTELS, INC.

     /s/  THOMAS L. WIESE                    By: /s/ LAWRENCE D. ROBINSON (SEAL)
     ----------------------------               ----------------------------
     Thomas L. Wiese                            Lawrence D. Robinson
     Assistant Secretary                        Senior Vice President

                                      3
<PAGE>
                               STATE OF MARYLAND

                                                                          581905

                              STATE DEPARTMENT OF
                            ASSESSMENTS AND TAXATION
              301 West Preston Street Baltimore, Maryland 21201

                                                         DATE: NOVEMBER 13, 1997

     THIS IS TO ADVISE YOU THAT THE ARTICLES OF AMENDMENT FOR

FELCOR SUITE HOTELS, INC.

WERE RECEIVED AND APPROVED FOR RECORD ON NOVEMBER 10, 1997 AT 7:38 AM.

FEE PAID:                               140.00

   [SEAL]

                                                             JOSEPH V. STEWART
                                                             CHARTER SPECIALIST

<PAGE>
                             ARTICLES OF AMENDMENT
                                       TO
                     ARTICLES OF AMENDMENT AND RESTATEMENT
                                       OF
                           FELCOR SUITE HOTELS, INC.

     The undersigned, on behalf of FelCor Suite Hotels, Inc., a Maryland
corporation, (the "Corporation"), hereby certifies as follows:

     FIRST:      The Corporation desires to amend its Charter as currently in
effect.

     SECOND:     Paragraph A of Article V of the Charter of the Corporation is
hereby amended to read in its entirety as follows:

           "A. Authorized Shares. The total number of shares of capital stock
     that the Corporation shall have authority to issue is One Hundred Ten
     Million (110,000,000) shares, consisting of One Hundred Million
     (100,000,000) shares of Common Stock, of the par value of One Cent ($0.01)
     each, and Ten Million (10,000,000) shares of Preferred Stock, of the par
     value of One Cent ($0.01) each, amounting in aggregate par value to One
     Million One Hundred Thousand Dollars ($1,100,000.00)."

     THIRD:      The total number of shares of stock that the Corporation had
authority to issue immediately prior to this amendment is Sixty Million
(60,000,000) shares, consisting of Fifty Million (50,000,000) shares of Common
Stock, par value $.01 per share, and Ten Million Shares (10,000,000) shares of
Preferred Stock, par value $.01 per share, amounting in aggregate par value to
$600,000. The total number of shares of stock that the Corporation has
authority to issue immediately following this amendment is One Hundred and Ten
Million (110,000,000) shares, consisting of One Hundred Million (100,000,000)
shares of Common Stock, par value $.01 per share, and Ten Million Shares
(10,000,000) of Preferred Stock, par value $.01 per share, amounting in
aggregate par value to $1,100,000. The description of each class, including the
preferences,
<PAGE>
conversion and other rights, voting powers, restrictions, limitations as to
dividends, qualifications, and terms and conditions of redemption is not
changed by this amendment.

     FOURTH:     The amendment of the Corporation's Charter set forth in these
Articles of Amendment was advised by the Board of Directors of the Corporation
and was approved by the stockholders of the Corporation.

     IN WITNESS WHEREOF, the Corporation has caused these Articles of Amendment
to be executed in its name and on its behalf on the 30th day of October, 1997,
by Lawrence D. Robinson, its Senior Vice President, Secretary and General
Counsel, who acknowledges that these Articles of Amendment are the act of the
Corporation and certifies that, to the best of his knowledge, information and
belief and under penalties for perjury, all matters and facts contained in
these Articles of Amendment are true in all material respects.

ATTEST:                                         FELCOR SUITE HOTELS, INC.

/s/ THOMAS L. WIESE                             By: /s/ LAWRENCE D. ROBINSON
----------------------------                        -------------------------
Thomas L. Wiese                                     Lawrence D. Robinson
Assistant Secretary                                 Senior Vice President,
                                                    Secretary & General Counsel

                                      -2-

<PAGE>
                                                 STATE DEPARTMENT OF ASSESSMENTS
                                                          AND TAXATION
                                                       APPROVED FOR RECORD
                                                      5/6/98  AT  11:36 a.m.

                             ARTICLES SUPPLEMENTARY
                                       OF
                           FELCOR SUITE HOTELS, INC.

         FELCOR SUITE HOTELS, INC., a Maryland corporation (hereinafter
referred to as the "Company"), hereby certifies as follows:

         FIRST: Under the authority set forth in Article V of the Charter of
the Company, the Board of Directors of the Company on April 20, 1998, and April
30, 1998, classified 57,500 unissued shares of the Preferred Stock as "9%
Series B Cumulative Redeemable Preferred Stock."

         SECOND: A description of the 9% Series B Cumulative Redeemable
Preferred Stock, including the preferences and other rights, voting powers,
restrictions, limitations as to dividends, qualifications, and terms and
conditions of redemption as set or changed by the Board of Directors of the
Company is as follows:

         Section 1.  NUMBER OF SHARES AND DESIGNATION.  This series of
preferred stock shall be designated as 9% Series B Cumulative Redeemable
Preferred Stock (the "Series B Preferred Stock"), and 57,500 shall be the
number of shares of Preferred Stock constituting such series.

         Section 2.  DEFINITIONS.  For purposes of the Series B Preferred
Stock, the following terms shall have the meanings indicated:

"Board of Directors" shall mean the Board of Directors of the Company or any
committee authorized by such Board of Directors to perform any of its
responsibilities with respect to the Series B Preferred Stock.

"Business Day" shall mean any day other than a Saturday, Sunday or a day on
which state or federally chartered banking institutions in Texas or New York
are not required to be open.

"Call Date" shall have the meaning set forth in paragraph (c) of Section 5
hereof.

"Common Stock" shall mean the common stock of the Company, par value $0.01 per
share.

"Dividend Payment Date" shall mean the last calendar day of January, April,
July and October in each year, commencing on July 31, 1998; PROVIDED, HOWEVER,
that if any Dividend Payment Date falls on any day other than a Business Day,
the dividend payment due on such Dividend Payment Date shall be paid on the
Business Day immediately following such Dividend Payment Date.

"Dividend Periods" shall mean quarterly dividend periods commencing February 1,
May 1, August 1, and November 1  of each year and ending on and including the
day preceding the first day of the next succeeding Dividend Period (other than
the initial Dividend Period, which shall commence on May 7, 1998 and end on and
include July 31, 1998).

"Issue Date" shall mean the date on which the Company first issues a share of
Series B Preferred Stock.

                                    [STAMP]
<PAGE>
"Junior Stock" shall mean the Common Stock and any other class or series of
shares of the Company over which the Series B Preferred Stock has preference or
priority in the payment of dividends or in the distribution of assets on any
liquidation, dissolution or winding up of the Company.

"Parity Stock" shall have the meaning set forth in paragraph (b) of Section 8
hereof.

"Series A Preferred Stock" shall mean the Company's $1.95 Series A Cumulative
Convertible Preferred Stock.

"Series B Preferred Stock" shall have the meaning set forth in Section 1
hereof.

"set apart for payment" shall be deemed to include, without any action other
than the following, the recording by the Company in its accounting ledgers of
any accounting or bookkeeping entry which indicates, pursuant to a declaration
of dividends or other distribution by the Board of Directors, the allocation of
funds to be so paid on any series or class of capital stock of the Company;
PROVIDED, HOWEVER, that if any funds for a class or series of Junior Stock or
any class or series of stock ranking on a parity with the Series B Preferred
Stock as to the payment of dividends are placed in a separate account of the
Company or delivered to a disbursing, paying or other similar agent, then "set
apart for payment" with respect to the Series B Preferred Stock shall mean
placing such funds in a separate account or delivering such funds to a
disbursing, paying or other similar agent.

"Transfer Agent" means SunTrust Bank, Atlanta, Georgia, or such other agent or
agents of the Company as may be designated by the Board of Directors or their
designee as the transfer agent for the Series B Preferred Stock.

"Voting Preferred Stock" shall have the meaning set forth in Section 9(a)
hereof.

         Section 3.  DIVIDENDS.

         (a)     The Holders of shares of the Series B Preferred Stock shall be
entitled to receive, when, as and if declared by the Board of Directors out of
funds legally available for that purpose, dividends payable in cash in an
amount per share of Series B Preferred Stock equal to $225.00 per annum.  Such
dividends shall be cumulative from May 7, 1998, whether or not in any Dividend
Period or Periods there shall be funds of the Company legally available for the
payment of such dividends, and shall be payable quarterly, when, as and if
declared by the Board of Directors, in arrears on Dividend Payment Dates,
commencing on the first Dividend Payment Date after the Issue Date.  Each such
dividend shall be payable in arrears to the holders of record of shares of the
Series B Preferred Stock, as they appear on the stock records of the Company at
the close of business on such record dates, not more than 60 days preceding
such Dividend Payment Dates thereof, as shall be fixed by the Board of
Directors.  Accrued and unpaid dividends for any past Dividend Periods may be
declared and paid at any time, without reference to any regular Dividend
Payment Date, to holders of record on such date, not exceeding 45 days
preceding the payment date thereof, as may be fixed by the Board of Directors.

         (b)     The amount of dividends payable for each full Dividend Period
for the Series B Preferred Stock shall be computed by dividing the annual
dividend rate by four.  The amount of

                                     - 2 -
<PAGE>
dividends payable for any period shorter or longer than a full Dividend Period,
on the Series B Preferred Stock shall be computed on the basis of a 360-day
year consisting of twelve 30-day months.  Holders of  the Series B Preferred
Stock shall not be entitled to any dividends, whether payable in cash, property
or stock, in excess of cumulative dividends, as herein provided, on the Series
B Preferred Stock.  No interest, or sum of money in lieu of interest, shall be
payable in respect of any dividend payment or payments on the Series B
Preferred Stock that may be in arrears.

         (c)     So long as any shares of the Series B Preferred Stock are
outstanding, no dividends, except as described in the immediately following
sentence, shall be declared or paid or set apart for payment on any class or
series of Parity Stock for any period unless full cumulative dividends have
been or contemporaneously are declared and paid, or declared and a sum
sufficient for the payment thereof set apart for such payment on the Series B
Preferred Stock for all Dividend Periods terminating on or prior to the
Dividend Payment Date on such class or series of Parity Stock.  When dividends
are not paid in full or a sum sufficient for such payment is not set apart, as
aforesaid, all dividends declared upon shares of the Series B Preferred Stock
and all dividends declared upon any other class or series of Parity Stock shall
be declared ratably in proportion to the respective amounts of dividends
accumulated and unpaid on the Series B Preferred Stock and accumulated and
unpaid on such Parity Stock.

         (d)     So long as any shares of the Series B Preferred Stock are
outstanding, no dividends (other than dividends or distributions paid in shares
of, or options, warrants or rights to subscribe for or purchase shares of,
Junior Stock), shall be declared or paid or set apart for payment or other
distribution declared or made upon Junior Stock, nor shall Junior Stock be
redeemed, purchased or otherwise acquired (other than a redemption, purchase or
other acquisition of shares of Common Stock made for purposes of an employee
incentive or benefit plan of the Company or any subsidiary) for any
consideration (or any moneys be paid to or made available for a sinking fund
for the redemption of any shares of any such stock) by the Company, directly or
indirectly, unless in each case (i) the full cumulative dividends on all
outstanding shares of the Series B Preferred Stock and any other Parity Stock
of the Company shall have been paid or set apart for payment for all past
Dividend Periods with respect to the Series B Preferred Stock and all past
dividend periods with respect to such Parity Stock and (ii) sufficient funds
shall have been paid or set apart for the payment of the dividend for the
current Dividend Period with respect to the Series B Preferred Stock and the
current dividend period with respect to such Parity Stock. Notwithstanding the
foregoing limitations, the Company may at any time acquire shares of its
capital stock, without regard to rank, for the purpose of preserving its status
as a real estate investment trust ("REIT").

         Section 4.  LIQUIDATION PREFERENCE.

         (a)     In the event of any liquidation, dissolution or winding up of
the Company, whether voluntary or involuntary, before any payment or
distribution of the assets of the Company (whether capital or surplus) shall be
made to or set apart for the holders of Junior Stock, the holders of the shares
of Series B Preferred Stock shall be entitled to receive two thousand five
hundred dollars ($2,500.00) per share of Series B Preferred Stock plus an
amount equal to all dividends (whether or not earned or declared) accrued and
unpaid thereon to the date of final distribution to such holders, but such
holders shall not be entitled to any further payment.  If, upon any
liquidation, dissolution or winding up of the Company, the assets of the
Company, or proceeds thereof, distributable among the

                                     - 3 -
<PAGE>
holders of the shares of Series B Preferred Stock shall be insufficient to pay
in full the preferential amount aforesaid and liquidating payments on any other
shares of any class or series of Parity Stock, then such assets, or the
proceeds thereof, shall be distributed among the holders of shares of Series B
Preferred Stock and any such other Parity Stock ratably in accordance with the
respective amounts that would be payable on such shares of Series B Preferred
Stock and any such other Parity Stock if all amounts payable thereon were paid
in full.  For the purposes of this Section 4, (i) a consolidation or merger of
the Company with one or more corporations, (ii) a sale or transfer of all or
substantially all of the Company's assets, or (iii) a statutory share exchange
shall not be deemed to be a liquidation, dissolution or winding up, voluntary
or involuntary, of the Company.

         (b)     Subject to the rights of the holders of shares of any series
or class or classes of stock ranking on a parity with or prior to the Series B
Preferred Stock upon liquidation, dissolution or winding up, upon any
liquidation, dissolution or winding up of the Company, after payment shall have
been made in full to the holders of the Series B Preferred Stock, as provided
in this Section 4, any other series or class or classes of Junior Stock shall,
subject to the respective terms and provisions (if any) applying thereto, be
entitled to receive any and all assets remaining to be paid or distributed, and
the holders of the Series B Preferred Stock shall not be entitled to share
therein.

         Section 5.  REDEMPTION AT THE OPTION OF THE COMPANY.

         (a)     The Series B Preferred Stock shall not be redeemable by the
Company prior to May 7, 2003.  On and after May 7, 2003, the Company, at its
option, may redeem the shares of Series B Preferred Stock in whole or in part,
as set forth herein, subject to the provisions described below.

         (b)     The Series B Preferred Stock may be redeemed, in whole or in
part, at the option of the Company, at any time or from time to time, upon not
less than 30 nor more than 60 days' prior written notice. In order to exercise
its redemption option, the Company must issue a press release announcing the
redemption (the "Press Release"). The Company may not issue a Press Release
prior to May 7, 2003.  The Press Release shall announce the redemption and set
forth the number of shares of Series B Preferred Stock which the Company
intends to redeem. The Call Date shall be selected by the Company, shall be
specified in the notice of redemption and, subject to the provisions of Section
5(e) below, shall be not less than 30 days or more than 60 days after the date
on which the Company issues the Press Release.

         (c)     Upon redemption of Series B Preferred Stock by the Company on
the date specified in the notice to holders required under subparagraph (e) of
this Section 5 (the "Call Date"), each share of Series B Preferred Stock to be
redeemed shall be redeemed in cash at a price per share equal to $2,500.00 per
share, plus all accrued and unpaid distributions thereon to the Call Date,
without interest, to the extent that the Company has funds legally available
therefor.  The redemption price of the Series B Preferred Stock (other than any
portion thereof consisting of accrued and unpaid distributions) must be paid
solely from the sale proceeds of other capital stock of the Company and not
from any other source.  For purposes of the foregoing sentence, "capital stock"
means any common stock, preferred stock, depositary shares, interests,
participations, or other ownership interests (however designated) and any
rights (other than debt securities convertible into or exchangeable for equity
securities) or options to purchase any of the foregoing.  Dividends payable on
the shares of Series B Preferred Stock for any period greater or less than a
full dividend period

                                     - 4 -
<PAGE>
will be computed on the basis of a 360-day year consisting of twelve 30-day
months.  Except as provided above, the Company shall make no payment or
allowance for unpaid dividends, whether or not in arrears, on shares of Series
B Preferred Stock called for redemption or on the shares of capital stock
issued upon such redemption.

         (d)     If full cumulative dividends on the Series B Preferred Stock
and any other class or series of Parity Stock of the Company have not been paid
or declared and set apart for payment, the Series B Preferred Stock may not be
redeemed in part and the Company may not purchase or acquire shares of Series B
Preferred Stock, otherwise than pursuant to a purchase or exchange offer made
on the same terms to all holders of shares of Series B Preferred Stock.

         (e)     If the Company shall redeem shares of Series B Preferred Stock
pursuant to paragraph (a) of this Section 5, notice of such redemption shall be
given to the beneficial holders of the Series B Preferred Stock by the Company
not less than thirty Business Days before the Call Date.  Such notice shall be
provided by first class mail, postage prepaid, at such holder's address as the
same appears on the stock records of the Company, or by publication in THE WALL
STREET JOURNAL or THE NEW YORK TIMES, or if neither such newspaper is then
being published, any other daily newspaper of national circulation. If the
Company elects to provide such notice by publication, it shall also promptly
mail notice of such redemption to the holders of the Series B Preferred Stock
to be redeemed. Neither the failure to mail any notice required by this
paragraph (e), nor any defect therein or in the mailing thereof, to any
particular holder, shall affect the sufficiency of the notice or the validity
of the proceedings for redemption with respect to the other holders. Any notice
which was mailed in the manner herein provided shall be conclusively presumed
to have been duly given on the date mailed whether or not the holder receives
the notice. Each such mailed or published notice shall state, as appropriate:
(1) the Call Date: (2) the number of shares of Series B Preferred Stock to be
redeemed from such holder; (3) the redemption price; (4) the place or places
where the Series B Preferred Stock is to be surrendered for payment of the
redemption price; and (5) that dividends on the shares to be redeemed shall
cease to accrue on such Call Date except as otherwise provided herein. Notice
having been published or mailed as aforesaid, from and after the Call Date
(unless the Company shall fail to make available the amount of cash necessary
to effect such redemption), (i) except as otherwise provided herein, dividends
on the shares of the Series B Preferred Stock so called for redemption shall
cease to accrue, (ii) said shares shall no longer be deemed to be outstanding,
and (iii) all rights of the holders thereof as holders of Series B Preferred
Stock of the Company shall cease (except the rights to receive the cash payable
upon such redemption, without interest thereon, upon surrender and endorsement
of their certificates). The Company's obligation to provide cash in accordance
with the preceding sentence shall be deemed fulfilled if, on or before the Call
Date, the Company shall deposit with a bank or trust company (which may be an
affiliate of the Company) that has an office in the Borough of Manhattan, City
of New York and that has, or is an affiliate of a bank or trust company that
has, a capital and surplus of at least $50,000,000, any cash necessary for such
redemption, in trust, with irrevocable instructions that such cash be applied
to the redemption of the shares of Series B Preferred Stock so called for
redemption. At the close of business on the Call Date, each share Series B
Preferred Stock to be redeemed pursuant to Section 5(c)(i) (unless the Company
defaults in the delivery of the cash payable on such Call Date) shall be deemed
to be no longer outstanding regardless of whether such holder has surrendered
the certificates representing the Series B Preferred Stock. No interest shall
accrue for the benefit of the holders of Series B Preferred Stock to be
redeemed on any cash so set aside by the Company. Subject to applicable escheat
laws,

                                     - 5 -
<PAGE>
any such cash unclaimed at the end of two years from the Call Date (together
with any interest or other earnings accrued thereon) shall revert to the
general funds of the Company, after which reversion the holders of such shares
so called for redemption shall look only to the general funds of the Company
for the payment of such cash, and shall have no right to interest from and
after the Call Date.

         As promptly as practicable after the surrender in accordance with said
notice of the certificates for any such shares so redeemed (properly endorsed
or assigned for transfer, if the Company shall so require and if the notice
shall so state), such shares shall be exchanged for cash (without interest
thereon) for which such shares have been redeemed.  If fewer than all the
outstanding shares of Series B Preferred Stock are to be redeemed, shares to be
redeemed shall be selected by the Company from outstanding shares of Series B
Preferred Stock not previously called for redemption by lot or pro rata (as
nearly as may be) or by any other method determined by the Company in its sole
discretion to be equitable. If fewer than all the shares of Series B Preferred
Stock represented by any certificate are redeemed, then new certificates
representing the unredeemed shares shall be issued without cost to the holder
thereof.

         (f)     Notwithstanding the foregoing, the Company may at any time
acquire shares of its capital stock, without regard to rank, for the purpose of
preserving its status as a REIT, for purposes of an employee benefit plan of
the Company, or in accordance with the conversion or redemption provisions of
any class of Preferred Stock ranking on parity with or senior to the Series B
Preferred Stock.

         (g)     The procedures for redeeming any depositary receipts
evidencing fractional interests in the Series B Preferred Stock shall be the
same as the procedures for redeeming the Series B Preferred Stock contained in
this Section 5 except that the depositary agent that issued the depositary
receipts being redeemed may act on behalf of the Company.

         Section 6.  SHARES TO BE RETIRED.

         All shares of Series B Preferred Stock which shall have been issued
and reacquired in any manner by the Company shall be restored to the status of
authorized but unissued shares of Preferred Stock, without designation as to
series.  The Company may also retire any unissued shares of Series B Preferred
Stock, and such shares shall then be restored to the status of authorized but
unissued shares of Preferred Stock, without designation as to series.

         Section 7.  CONVERSION.

         Holders of shares of Series B Preferred Stock shall have no conversion
rights.

         Section 8.  RANKING.  Any class or series of stock of the Company
shall be deemed to rank:

         (a)     prior to the Series B Preferred Stock, as to the payment of
dividends and as to distribution of assets upon liquidation, dissolution or
winding up, if the holders of such class or series shall be entitled to the
receipt of dividends or of amounts distributable upon liquidation, dissolution

                                     - 6 -
<PAGE>
or winding up, as the case may be, in preference or priority to the holders of
Series B Preferred Stock;

         (b)     on a parity with the Series B Preferred Stock, as to the
payment of dividends and as to distribution of assets upon liquidation,
dissolution or winding up, whether or not the dividend rates, dividend payment
dates or redemption or liquidation prices per share thereof be different from
those of the Series B Preferred Stock, if the holders of such class of stock or
series and the Series B Preferred Stock shall be entitled to the receipt of
dividends and of amounts distributable upon liquidation, dissolution or winding
up in proportion to their respective amounts of accrued and unpaid dividends
per share or liquidation preferences, without preference or priority one over
the other ("Parity Stock"); the Series A Preferred Stock shall be Parity Stock
with respect to the Series B Preferred Stock; and

         (c)     junior to the Series B Preferred Stock, as to the payment of
dividends or as to the distribution of assets upon liquidation, dissolution or
winding up, if such stock or series shall be Common Stock or if the holders of
Series B Preferred Stock shall be entitled to receipt of dividends or of
amounts distributable upon liquidation, dissolution or winding up, as the case
may be, in preference or priority to the holders of shares of such stock or
series.

         Section 9.  VOTING.

         (a)     If and whenever six quarterly dividends (whether or not
consecutive) payable on the Series B Preferred Stock or any series or class of
Parity Stock shall be in arrears (which shall, with respect to any such
quarterly dividend, mean that any such dividend has not been paid in full),
whether or not earned or declared, the number of directors then constituting
the Board of Directors shall be increased by two (if not already increased by
reason of a similar arrearage with respect to any Parity Stock) and the holders
of shares of Series B Preferred Stock, together with the holders of shares of
every other series of Parity Stock (any such other series, the "Voting
Preferred Stock"), voting as a single class regardless of series, shall be
entitled to elect the two additional directors to serve on the Board of
Directors at any annual meeting of stockholders or special meeting held in
place thereof, or at a special meeting of the holders of the Series B Preferred
Stock and the Voting Preferred Stock called as hereinafter provided.  Whenever
all arrearages dividends on the Series B Preferred Stock and the Voting
Preferred Stock then outstanding shall have been paid and dividends thereon for
the current quarterly dividend period shall have been paid or declared and set
apart for payment, then the right of the holders of the Series B Preferred
Stock and the Voting Preferred Stock to elect such additional two directors
shall cease (but subject always to the same provision for the vesting of such
voting rights in the case of any similar future arrearages in six quarterly
dividends), and the terms of office of all persons elected as directors by the
holders of the Series B Preferred Stock and the Voting Preferred Stock shall
forthwith terminate and the number of the Board of Directors shall be
automatically reduced accordingly.  At any time after such voting power shall
have been so vested in the holders of shares of Series B Preferred Stock and
the Voting Preferred Stock, the secretary of the Company may, and upon the
written request of any holder of Series B Preferred Stock or any holder of
depositary receipts evidencing a fractional interest in the Series B Preferred
Stock (addressed to the secretary at the principal office of the Company)
shall, call a special meeting of the holders of the Series B Preferred Stock
and the Voting Preferred Stock for the election of the two directors to be
elected by them as herein provided, such call to be made by notice similar to
that

                                     - 7 -
<PAGE>
provided in the Bylaws of the Company for a special meeting of the stockholders
or as required by law.  If any such special meeting required to be called as
above provided shall not be called by the secretary within 20 days after
receipt of any such request, then any holder of shares of Series B Preferred
Stock (or depositary receipts representing shares of Series B Preferred Stock)
may call such meeting, upon the notice above provided, and for that purpose
shall have access to the stock books of the Company.  The directors elected at
any such special meeting shall hold office until the next annual meeting of the
stockholders or special meeting held in lieu thereof if such office shall not
have previously terminated as above provided.  If any vacancy shall occur among
the directors elected by the holders of the Series B Preferred Stock and the
Voting Preferred Stock, a successor shall be elected by the Board of Directors,
upon the nomination of the then-remaining director elected by the holders of
the Series B Preferred Stock and the Voting Preferred Stock or the successor of
such remaining director, to serve until the next annual meeting of the
stockholders or special meeting held in place thereof if such office shall not
have previously terminated as provided above.

         (b)     So long as any shares of Series B Preferred Stock are
outstanding, in addition to any other vote or consent of stockholders required
by law or by the Charter, as amended, the affirmative vote of at least 66 2/3%
of the votes entitled to be cast by the holders of the shares of Series B
Preferred Stock and the Voting Preferred Stock, at the time outstanding, acting
as a single class regardless of series, at any meeting called for the purpose,
shall be necessary for effecting or validating the following:

                 (i)      Any amendment, alteration or repeal of any of the
provisions of these Articles Supplementary that materially adversely affects
the voting powers, rights or preferences of the holders of the Series B
Preferred Stock or the Voting Preferred Stock; PROVIDED, HOWEVER, that the
amendment of the provisions of the Charter so as to authorize or create, or to
increase the authorized amount, of any Junior Stock or any shares of any class
ranking on a parity with the Series B Preferred Stock or the Voting Preferred
Stock shall not be deemed to materially adversely affect the voting powers,
rights or preferences of the holders of Series B Preferred Stock, and PROVIDED,
FURTHER, that if any such amendment, alteration or repeal would materially
adversely affect any voting powers, rights of preferences of the Series B
Preferred Stock or another series of Voting Preferred Stock that are not
enjoyed by some or all of the other series which otherwise would be entitled to
vote in accordance herewith, the affirmative vote of least 66 2/3% of the votes
entitled to be cast by holders of all series similarly affected, similarly
given, shall be required in lieu of the affirmative vote of at least 66 2/3% of
the votes entitled to be cast by the holders of the shares of Series B
Preferred Stock and the Voting Preferred Stock which otherwise would be
entitled to vote in accordance herewith;

                 (ii)     Enter into a share exchange that affects the Series B
Preferred Stock, consolidate with or merge into another entity, or permit
another entity to consolidate with or merge into the Company, unless in each
such case, each share of Series B Preferred Stock remains outstanding without a
material and adverse change to its terms and rights or is converted into or
exchanged for a share of preferred stock of the surviving entity having
preferences, rights, voting powers, restrictions, limitations as to
distributions, qualifications and terms and conditions of redemption identical
to those of a share of Series B Preferred Stock (except for changes that do not
materially and adversely affect the holders of the Series B Preferred Stock);
or

                                     - 8 -
<PAGE>
                 (iii)    The authorization, reclassification, or creation of,
or the increase in the authorized amount of, any shares of any class or any
security convertible into shares of any class ranking prior to the Series B
Preferred Stock in the distribution of assets on any liquidation, dissolution
or winding up of the Company or in the payment of dividends.

         For purposes of the foregoing provisions of this Section 9, each share
of Series B Preferred Stock shall have one hundred (100) votes per share, each
of which 100 votes may be directed separately by the holder thereof (or by any
proxy or proxies of such holder).  With respect to each share of the Series B
Preferred Stock, the holder thereof may designate up to 100 proxies, with each
proxy having the right to vote a whole number of votes (totaling 100 votes per
share of Series B Preferred Stock).  Except as otherwise required by applicable
law or as set forth herein, the shares of Series B Preferred Stock shall not
have any relative, participating, optional or other special voting rights and
powers other than as set forth herein, and the consent of the holders thereof
shall not be required for the taking of any corporate action.

         Section 10.  RECORD HOLDERS.  The Company and the Transfer Agent may
deem and treat the record holder of any shares of Series B Preferred Stock as
the true and lawful owner thereof for all purposes, and neither the Company nor
the Transfer Agent shall be affected by any notice to the contrary.

                        [Signatures On Following Page.]

                                     - 9 -
<PAGE>
         IN WITNESS WHEREOF, the Company has caused these Articles
Supplementary to be signed in its name and on its behalf on this 1st day of
May, 1998, by its Senior Vice President who acknowledges that these Articles
Supplementary are the act of the Company and that to the best of his knowledge,
information and belief and under penalties for perjury all matters and facts
contained in these Articles Supplementary are true in all material respects.

                                        FELCOR SUITE HOTELS, INC.

                                        By: /s/ Randall L. Churchey
                                            ----------------------------------
                                            Randall L. Churchey,
                                            Senior Vice President

                                        Attest:

                                        /s/  Lawrence D. Robinson
                                        --------------------------------------
                                        Lawrence D. Robinson, Secretary

                                                    (Corporate Seal)

                                     - 10 -
<PAGE>
                               STATE OF MARYLAND
                                                            652537
                              STATE DEPARTMENT OF
                            ASSESSMENTS AND TAXATION
               301 West Preston Street Baltimore, Maryland 21201

     I, RITA WINSTON OF THE STATE DEPARTMENT OF ASSESSMENTS AND TAXATION OF THE
STATE OF MARYLAND, DO HEREBY CERTIFY THAT SAID DEPARTMENT, BY THE LAWS OF SAID
STATE, IS THE CUSTODIAN OF THE RECORDS OF THIS STATE RELATING TO THE FORFEITURE
OR SUSPENSION OF CORPORATE CHARTERS, OR OF CORPORATIONS TO TRANSACT BUSINESS IN
THIS STATE; AND I AM THE PROPER OFFICER TO EXECUTE THIS CERTIFICATE.

     I FURTHER CERTIFY THAT FELCOR LODGING TRUST INCORPORATED IS A CORPORATION
DULY INCORPORATED AND EXISTING UNDER AND BY VIRTUE OF THE LAWS OF MARYLAND AND
SAID CORPORATION HAS FILED ALL ANNUAL REPORTS REQUIRED, HAS NO OUTSTANDING LATE
FILING PENALTIES ON THOSE REPORTS, AND HAS A RESIDENT AGENT. THEREFORE, THE
CORPORATION IS AT THE TIME OF THIS CERTIFICATE IN GOOD STANDING WITH THIS
DEPARTMENT AND DULY AUTHORIZED TO EXERCISE ALL THE POWERS RECITED IN ITS CHARTER
OR CERTIFICATE OF INCORPORATION, AND TO TRANSACT BUSINESS IN THE STATE OF
MARYLAND.

    [SEAL]                          IN WITNESS WHEREOF, I HAVE HEREUNTO SET
                                MY HAND AND AFFIXED THE SEAL OF THE STATE
                                DEPARTMENT OF ASSESSMENTS AND TAXATION OF
                                MARYLAND AT BALTIMORE THIS 27TH DAY OF
                                JULY, 1998.

                                              /s/ RITA WINSTON
                                             ------------------------------
                                             RITA WINSTON
AT5-031                                      CHARTER DIVISION
<PAGE>

                               STATE OF MARYLAND

                                                 657345

                              STATE DEPARTMENT OF
                            ASSESSMENTS AND TAXATION

               301 West Preston Street Baltimore, Maryland 21201

                                                             DATE: JULY 27, 1998

     THIS IS TO ADVISE YOU THAT THE ARTICLES OF MERGER WITH A NAME CHANGE FOR
FELCOR SUITE HOTELS, INC. (MD)-- SURVIVOR AND BRISTOL HOTEL COMPANY (DE)--
MERGING OUT CHANGING TO FELCOR LODGING TRUST INCORPORATED WERE RECEIVED AND
APPROVED FOR RECORD ON JULY 27, 1998 AT 11:22 AM.

FEE PAID:      101.00

                                                              IRENE B WOZNY

                                                              CHARTER SPECIALIST
    [SEAL]

    AT5-031

<PAGE>
                                      STATE DEPARTMENT OF ASSESSMENTS
                                                AND TAXATION
                                            APPROVED FOR RECORD
                                            7/27/98 at 11:22 a.m.
                                            -------    ----------

                                                  RECEIVED

                                              '98 JUL 27 11:22

                               ARTICLES OF MERGER

                                     BETWEEN

                           FELCOR SUITE HOTELS, INC.,
                            (a Maryland corporation)

                                       AND

                             BRISTOL HOTEL COMPANY,
                            (a Delaware corporation)

     These ARTICLES OF MERGER are made and entered into as of July 27, 1998, by
and between FelCor Suite Hotels, Inc., a Maryland corporation, and Bristol Hotel
Company, a Delaware corporation, each of which certifies as follows:

     FIRST: Bristol Hotel Company (the "Merging Corporation") and FelCor Suite
Hotels, Inc. (the "Successor Corporation") agree to merge in accordance with the
terms and conditions set forth herein and in the Agreement and Plan of Merger,
dated March 23, 1998, by and between the Successor Corporation and the Merging
Corporation (the "Merger Agreement").

     SECOND: The Merger will be effective at 9:00 a.m. Eastern time on July 28,
1998 (the "Effective Time", and the date on which the Effective Time occurs, the
"Effective Date").

     THIRD: The name of the Merging Corporation is Bristol Hotel Company, which
is incorporated under the laws of the State of Delaware. The name of the
Successor Corporation is FelCor Suite Hotels, Inc., which is incorporated under
the laws of the State of Maryland. At the Effective Time, the name of the
Successor Corporation will be FelCor Lodging Trust Incorporated.

     FOURTH: The Merging Corporation was incorporated under the General
Corporation Law of the State of Delaware on November 14, 1994. The Merging
Corporation is not registered or qualified to do business in the State of
Maryland.

     FIFTH: The principal office in Maryland of the Successor Corporation is
located in Baltimore City at 11 East Chase Street, Baltimore, Maryland 21202.
The Merging Corporation does not have an office in the State of Maryland.

     SIXTH: The Merging Corporation does not own any interest in land in the
State of Maryland, the title to which could be affected by recording an
instrument in the land records.

     SEVENTH: (a) The total number of shares of stock of all classes that the
Merging Corporation has authority to issue is (i) 150,000,000 shares of common
stock, par value of $0.01 per share (each a "Merging Corporation Common Share"),
and (ii) 50,000,000 shares of preferred stock, par value of $0.01 per share
(each a "Merging Corporation Preferred Share"). The aggregate par value of all
shares of all classes of stock of the Merging Corporation is $2,000,000.

                                    [STAMP]

<PAGE>

The total number of shares of stock of all classes that the Successor
Corporation has authority to issue is (i) 100,000,000 shares of common stock,
par value of $0.01 per share (each, a "Successor Corporation Common Share"), and
(ii) 10,000,000 shares of preferred stock, par value of $0.01 per share (each,
a "Successor Corporation Preferred Share"), 6,050,000 of which have been
designated as $1.95 Series A Cumulative Convertible Preferred Stock," par value
of $0.01 per share (each, a "Successor Corporation Series A Preferred Share")
and 57,000 of which have been designated as "9% Series B Cumulative Redeemable
Preferred Stock," par value of $0.01 per share (each, a "Successor Corporation
Series B Preferred Share"). The aggregate par value of all shares of all classes
of the Successor Corporation is $1,100,000.

     (b) At the Effective Time, the charter of the Successor Corporation will be
amended such that the total number of shares of stock of all classes that the
Successor Corporation will have authority to issue will be (i) 200,000,000
Successor Corporation Common Shares, and (ii) 20,000,000 Successor Corporation
Preferred Shares, 6,050,000 of which will have been designated as Successor
Corporation Series A Preferred Shares and 57,000 of which will have been
designated as Successor Corporation Series B Preferred Shares. The aggregate par
value of all shares of all classes of the Successor Corporation will be
$2,200,000.

     EIGHTH: The manner and basis of converting or exchanging outstanding stock
of the Merging Corporation into stock of the Successor Corporation or other
consideration and the treatment of any outstanding stock of the Successor
Corporation not to be converted or exchanged will be as follows:

          (a) Subject to the provisions of clause (c) below, each Merging
     Corporation Common Share outstanding immediately prior to the Effective
     Time will be converted into the right to receive 0.685 (the "Exchange
     Ratio") of a validly issued, fully paid and nonassessable Successor
     Corporation Common Share, and each Merging Corporation Common Share
     theretofore outstanding will cease to be outstanding and will cease to
     exist, and each holder of a certificate representing such Merging
     Corporation Common Shares will thereafter cease to have any rights with
     respect to such shares, except the right to receive, without interest, the
     number of Successor Corporation Common Shares as calculated pursuant to
     this clause (a) and cash in lieu of fractional Successor Corporation Common
     Shares in accordance with clause (c) below, upon the surrender of the stock
     certificate for such Merging Corporation Common Shares;

          (b) Each Successor Corporation Common Share, Successor Corporation
     Series A Preferred Share and Successor Corporation Series B Preferred Share
     outstanding immediately prior to the Effective Time will remain
     outstanding;

          (c) Notwithstanding any other provision hereof, no fractional
     Successor Corporation Common Shares will be issued in connection with the
     Merger. No such holder will be entitled to dividends, voting rights or any
     other stockholder rights in respect of any fractional share. Instead, each
     holder of outstanding Merging Corporation Common Shares having a fractional
     interest arising upon the conversion or exchange of such shares in the
     Merger will, at the time of surrender of its certificate representing
     Merging Corporation Common Shares, be paid by the Successor Corporation an
     amount in cash equal to the Closing Price immediately preceding the
     Effective Time multiplied by the fraction of Successor Corporation Common
     Shares to which such holder would

                                        2

<PAGE>

     otherwise be entitled. For purposes of this clause (c), "Closing Price"
     means the closing price of the Successor Corporation Common Shares (as
     reported in the New York Stock Exchange, Inc. Composite Tape) on the
     business day immediately preceding the Effective Date; and

          (d) Each Merging Corporation Common Share issued and held in the
     Merging Corporation's treasury or by FelCor or any wholly owned subsidiary
     of FelCor at the Effective Time, if any, will cease to be outstanding and
     will be canceled and retired and will cease to exist without payment of any
     consideration therefor.

     NINTH: The terms and conditions of the transaction set forth in these
Articles of Merger were advised, authorized and approved by the Merging
Corporation in the manner and by the vote required by its certificate of
incorporation and bylaws and the laws of the State of Delaware. The terms and
conditions of the transaction set forth in these Articles of Merger, including
the Articles of Amendment attached hereto, were advised, authorized and approved
by the Successor Corporation in the manner and by the vote required by its
charter and bylaws and the laws of the State of Maryland. The manner of approval
by the Merging Corporation and the Successor Corporation of the transactions set
forth in these Articles of Merger was as follows:

          (a) The Board of Directors of the Merging Corporation adopted a
     resolution by unanimous vote on March 23, 1998, which declared that the
     transaction set forth in these Articles of Merger is advisable and directed
     that the Merger Agreement be submitted for adoption by the stockholders of
     the Merging Corporation at an annual meeting of the stockholders of the
     Merging Corporation held on July 27, 1998. Notice which stated that a
     purpose of the annual meeting was to act on the Merger contemplated by
     these Articles of Merger was given in the manner required by the applicable
     provisions of the General Corporation Law of the State of Delaware to each
     stockholder entitled to such notice. The Merger Agreement was adopted by
     the stockholders of the Merging Corporation at the annual meeting of the
     stockholders of the Merging Corporation held on July 27, 1998 by the
     affirmative vote of a majority of all the votes entitled to be cast on the
     matter in accordance with the certificate of incorporation of the Merging
     Corporation and the General Corporation Law of the State of Delaware.

          (b) The Board of Directors of the Successor Corporation adopted a
     resolution by unanimous vote on March 23, 1998, which declared that the
     transaction set forth in these Articles of Merger is advisable and directed
     that the transaction be submitted for consideration by the stockholders of
     the Successor Corporation at the annual meeting of the stockholders of the
     Successor Corporation held on July 27, 1998. Notice which stated that a
     purpose of the annual meeting was to act on the Merger contemplated by
     these Articles of Merger, including the Articles of Amendment attached
     hereto, was given in the manner required by the applicable provisions of
     the Maryland General Corporation Law to each stockholder entitled to such
     notice. The transaction set forth in these Articles of Merger, including
     the Articles of Amendment attached hereto, was approved by the stockholders
     of the Successor Corporation at the annual meeting of the stockholders of
     the Successor Corporation held on July 27, 1998 by the affirmative vote of
     a majority of all the votes entitled to be cast on the matter in accordance
     with the charter of the Successor Corporation and the Maryland General
     Corporation Law.

                                       3

<PAGE>

     TENTH: At the Effective Time, the Articles of Amendment and Restatement of
the Successor Corporation will be amended in the manner set forth in Exhibit A
hereto.

                                       4

<PAGE>

     IN WITNESS WHEREOF, the Merging Corporation and the Successor Corporation
have caused these Articles of Merger to be signed in their respective corporate
names and on their behalf by their respective President, Vice-President,
Chairman of the Board or Vice Chairman of the Board and attested to by their
respective Secretary or Assistant Secretary as of the 27th day of July, 1998.

ATTEST:                                   FELCOR SUITE HOTELS, INC.,
                                          a Maryland corporation

By: /s/ LAWRENCE D. ROBINSON        By: /s/ RANDALL L. CHURCHEY
   ----------------------------        -----------------------------
         Secretary                  Name: Randall L. Churchey
                                          Title: Senior Vice President

                                          BRISTOL HOTEL COMPANY,
                                          a Delaware corporation

    By: /s/ [ILLEGIBLE]             By: /s/ JEFFREY P. MAYER
       -------------------------        ------------------------------
      Assistant Secretary           Name: Jeffrey P. Mayer
                                          Title: Vice President

                                        5

<PAGE>

     The undersigned, being the duly elected and acting Senior Vice President of
FelCor Suite Hotels, Inc., a Maryland corporation, hereby acknowledges that the
foregoing Articles of Merger, of which this Certificate is a part, are the act
of FelCor Suite Hotels, Inc., a Maryland corporation, and certifies that, to the
best of his knowledge, information and belief and under penalties for perjury,
all matters and facts contained in these Articles of Merger relating to FelCor
Suite Hotels, Inc., a Maryland corporation, are true in all material respects.

                                               /s/ RANDALL L. CHURCHEY
                                               ---------------------------------
                                                   Name: Randall L. Churchey
                                                   Senior Vice President

                                        6

<PAGE>

     The undersigned, being the duly elected and acting Vice President of
Bristol Hotel Company, a Delaware corporation, hereby acknowledges that the
foregoing Articles of Merger, of which this Certificate is a part, are the act
of Bristol Hotel Company, a Delaware corporation, and certifies that, to the
best of his knowledge, information and belief and under penalties for perjury,
all matters and facts contained in these Articles of Merger relating to Bristol
Hotel Company, a Delaware corporation, are true in all material respects.

                                               /s/ JEFFREY P. MAYER
                                              ----------------------------------
                                              Name:  Jeffrey P. Mayer
                                              Vice President

                                        7

<PAGE>

                                    EXHIBIT A
                                    ---------

                               ARTICLES OF AMENDMENT
                                         TO
                       ARTICLES OF AMENDMENT AND RESTATEMENT
                                         OF
                             FELCOR SUITE HOTELS, INC.

     The undersigned, on behalf of FelCor Suite Hotels, Inc., a Maryland
corporation (the "Corporation"), hereby certifies as follows:

     FIRST: The Corporation desires to amend its Charter as currently in effect.

     SECOND: Article II of the Charter of the Corporation is hereby amended to
read in its entirety as follows:

                                  "Article II.
                                      Name.

          The name of the Corporation is: FelCor Lodging Trust Incorporated."

     THIRD: Paragraph A of Article V of the Charter of the Corporation is hereby
amended to read in its entirety as follows:

          "A. Authorized Shares. The total number of shares of capital stock
     that the Corporation shall have authority to issue is Two Hundred Twenty
     Million (220,000,000) shares, consisting of Two Hundred Million
     (200,000,000) shares of Common Stock, of the par value of One Cent ($0.01)
     each, and Twenty Million (20,000,000) shares of Preferred Stock, of the par
     value of One Cent ($0.01) each, amounting in aggregate par value to Two
     Million Two Hundred Thousand Dollars ($2,200,000.00)."

<PAGE>

     FOURTH: The total number of shares of stock that the Corporation had
authority to issue immediately prior to this amendment is One Hundred Ten
Million (110,000,000) shares, consisting of One Hundred Million (100,000,000)
shares of Common Stock, par value $.01 per share, and Ten Million Shares
(10,000,000) shares of Preferred Stock, par value $.01 per share, amounting in
aggregate par value to $1,100,000. The total number of shares of stock that the
Corporation has authority to issue immediately following this amendment is Two
Hundred and Twenty Million (220,000,000) shares, consisting of Two Hundred
Million (200,000,000) shares of Common Stock, par value $.01 per share, and
Twenty Million Shares (20,000,000) of Preferred Stock, par value $.01 per share,
amounting in aggregate par value to $2,200,000. The description of each class,
including the preferences, conversion and other rights, voting powers,
restrictions, limitations as to dividends, qualifications, and terms and
conditions of redemption is not changed by this amendment.

     FIFTH: The amendment of the Corporation's Charter set forth in these
Articles of Amendment was advised by the Board of Directors of the Corporation
and was approved by the stockholders of the Corporation.

<PAGE>
State of Maryland                                      PARRIS N. GLENDENING
                                [SEAL]                      Governor
DEPARTMENT OF                                          RONALD W. WINEHOLT
ASSESSMENTS AND TAXATION                                    Director
                                                        PAUL B. ANDERSON
Charter Division                                          Administrator
-------------------------------------------------------------------------------
<TABLE>
<S>                                                <C>
DOCUMENT CODE     11A           BUSINESS CODE           COUNTY
             -------------                   ---------        ----------

#                   P.A.      Religious      Close      Stock      Nonstock
 -----------    ----      ----           ----       ----       ----

Merging      Bristol Hotel                               Surviving     Felcor Suite
            ---------------                                          --------------------------------
Company                                                                     Hotels, Inc.
---------------------------                              --------------------------------------------
     (DE)                                                                    D4126926
---------------------------                              --------------------------------------------

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

CODE  AMOUNT   FEE REMITTED
----  ------   ------------
10     59      Expedited Fee                             (New Name) Felcor Lodging
      ------                                                       ----------------------------------
61             Rec. Fee (Arts. of Inc.)                                  Trust Incorporated
      ------                                             --------------------------------------------
20             Organ. & Capitalization
      ------                                             --------------------------------------------
62             Rec. Fee (Amendment)
      ------
63     20      Rec. Fee (Merger, Consol.)
      ------
64             Rec. Fee (Transfer)
      ------
66             Rec. Fee (Revival)                              X   Change of Name
      ------                                                 -----
65             Rec. Fee (Dissolution)                              Change of Principal Office
      ------                                                 -----
               Special Fee                                         Change of Resident Agent
      ------                                                 -----
               Certificate of Conveyance                           Change of Resident Agent
      ------                                                 ----- Address
               ------------------------------
                                                                   Resignation of Resident Agent
               ------------------------------                -----
                                                                   Designation of Resident Agent
               ------------------------------                ----- and Resident Agent's Address
21             Recordation Tax
      ------                                                       Change of Business Code
22             State Transfer Tax                            -----
      ------                                                       ---------------------------------
23             Local Transfer Tax                                  Adoption of Assumed Name
      ------                                                 -----
70             Change of P.O., R.A. or R.A.A.                      ---------------------------------
      ------
31      6         1    Corp. Good Standing                         ---------------------------------
      ------   -------
600                                                 Returns        ---------------------------------
-----------------------------------------------------------
52             Foreign Qualification
      ------
NA             Foreign Registration                                Other Change(s)
      ------                                                 -----                ------------------
51             Foreign Name Registration
      ------                                                       ---------------------------------
53             Foreign Resolution
      ------                                                       ---------------------------------
54             For. Supplement Cert.
      ------
56             Penalty                                          CODE       045
      ------                                                        ----------------------
50             Cert. of Qual. or Reg.
-----------------------------------------------------------
83             Cert. Limited Partnership                        ATTENTION: /S/ DAVID GIBBONS
      ------                                                              --------------------------
84             Amendment to Limited Partnership
      ------                                                    ------------------------------------
85             Termination of Limited Partnership
      ------                                                    ------------------------------------
80             For. Limited Partnership
      ------
91             Amend/Cancellation, For. Limited Part.
      ------
87                       Limited Part. Good Standing
-----------------------------------------------------------
67             Cert. Limited Liability Partnership
      ------
68             LLP Amendment - Domestic                          MAIL TO ADDRESS:
      ------
               Foreign Limited Liability Partnership                                --------------------
      ------
               LLP Amendment - Foreign                           ------------------------------------
-----------------------------------------------------------
99             Art. of Organization (LLC)                        ------------------------------------
      ------
98             LLC Amendment, Diss, Continuation                 ------------------------------------
      ------
97             LLC Cancellation.                                 ------------------------------------
      ------
96             Registration Foreign LLC
      ------
94             Foreign  LLC  Supplemental
      ------
92                       LLC Good Standing (short)
-----------------------------------------------------------
13      16          1       Certified Copy         10
      ------   -------------               ----------------
               Other
--    ------        ---------------------------------------
TOTAL                                                            NOTE:
FEES   101                                  Credit Card          ----
    ----------                         -----                     Effective: 7/28/98  9:00am
                                                                 Eastern Time
                                X  Check           Cash
                              -----           -----

                    Documents on       checks
--------------------            -------
APPROVED BY:
            --------------

         Room 809 - 301 West Preston Street - Baltimore, Maryland 21201
Phone: (410) 767-1350 - Fax (410) 333-7097 - TTY users call Maryland Relay 1-800-738-2258
     Toll Free in MD: 1-888-246-5941 - web site: http://www.dat.state.md.us
</TABLE>
<PAGE>
     IN WITNESS WHEREOF, the Corporation has caused these Articles of Amendment
to be executed in its name and on its behalf on the 27th day of July, 1998, by
Randall L. Churchey, its Senior Vice President and Chief Financial Officer, who
acknowledges that these Articles of Amendment are the act of the Corporation and
certifies that, to the best of his knowledge, information and belief and under
penalties for perjury, all matters and facts contained in these Articles of
Amendment are true in all material respects.

ATTEST:                                   FELCOR SUITE HOTELS, INC.

/s/ LAWRENCE D. ROBINSON                  By: /s/ RANDALL L. CHURCHEY  (SEAL)
-----------------------------             -------------------------------------
Lawrence D. Robinson                         Randall L. Churchey
Secretary                                    Senior Vice President and Chief
                                             Financial Officer
<PAGE>

                           CERTIFICATE OF CORRECTION
                                       TO
                             ARTICLES SUPPLEMENTARY
                                       OF
                       FELCOR LODGING TRUST INCORPORATED
                     (FORMERLY, FELCOR SUITE HOTELS, INC.)

         FELCOR LODGING TRUST INCORPORATED, a Maryland corporation (hereinafter
referred to as the "Company"), hereby certifies to the State Department of
Assessments and Taxation of the State of Maryland (the "Department") as
follows:

         FIRST: The title of the document being corrected by this Certificate
of Correction is the Articles Supplementary of FelCor Lodging Trust
Incorporated (formerly, FelCor Suite Hotels, Inc.) (the "Articles
Supplementary").

         SECOND: The name of the party to the Articles Supplementary is FelCor
Lodging Trust Incorporated (formerly, FelCor Suite Hotels, Inc.).

         THIRD: The Articles Supplementary being corrected by this Certificate
of Correction were filed with, and received of record by, the Department on May
2, 1996 at 11:40 a.m.

         FOURTH: Section 5(c) of Article SECOND of the Articles Supplementary,
which is the provision of the Articles Supplementary being corrected by this
Certificate of Correction, as previously filed read as follows:

         "(c) Upon redemption of Series A Preferred Stock by the Corporation on
the date specified in the notice to holders required under subparagraph (e) of
this Section 5 (the "Call Date"), each share of Series A Preferred Stock so
redeemed shall, at the option of the Company (i) be converted into a number of
shares of Common Stock equal to the liquidation preference (excluding any
accrued and unpaid dividends) of the shares of Series A Preferred Stock being
redeemed divided by the Conversion Price as of the opening of business on the
Call Date or (ii) be redeemed in cash at a price per share equal the aggregate
market value (determined as of the date of the notice of redemption) of the
number of shares of Common Stock into which the Series A Preferred Stock is
then convertible divided by the then current Conversion Price."

         FIFTH: Section 5(c) of Article SECOND of the Articles Supplementary is
hereby corrected by deleting Section 5(c) of Article SECOND of the Articles
Supplementary as previously filed and replacing it in its entirety with the
following:

         "(c) Upon redemption of Series A Preferred Stock by the Corporation on
the date specified in the notice to holders required under subparagraph (e) of
this Section 5 (the "Call Date"), each share of Series A Preferred Stock so
redeemed shall, at the option of the Company (i) be converted into a number of
shares of Common Stock equal to the liquidation preference (excluding any
accrued and unpaid dividends) of the share of Series A Preferred Stock being
redeemed divided by the Conversion Price as of the opening of business on the
Call Date or (ii) be redeemed in cash at a price per share equal to the market
value (determined as of the date of the notice of redemption) of the per share
equal to the market value (determined as of the date of the notice or
redemption of the number of shares of Common Stock into which the share of
Series A Preferred Stock is then convertible."

<PAGE>

         SIXTH: This Certificate of Correction does not (i) alter the wording
of any resolution which was adopted by the Board of Directors or the
stockholders of the Company or (ii) make any change or amendment which would
not have complied in all respects with the requirements of the Maryland General
Corporation Law.

         IN WITNESS WHEREOF, the Company has caused this Certificate of
Correction to be signed in its name and on its behalf on this 11th day of
March, 1999, by its Senior Vice President who acknowledges that this
Certificate of Correction is the act of the Company and that to the best of his
knowledge, information and belief and under penalties for perjury all matters
and facts contained in this Certificate of Correction in all respects.

                                  FELCOR LODGING TRUST INCORPORATED

                                  By:  /s/  WILLIAM P. STADDER
                                     -------------------------------------
                                     Name:  William P. Stadder
                                          --------------------------------
                                     Title: Senior Vice President
                                           -------------------------------

                                  Attest:

                                       /s/  LAWRENCE D. ROBINSON
                                  ----------------------------------------
                                     Name:  Lawrence D. Robinson
                                          --------------------------------
                                     Title: Secretary
                                           -------------------------------

                                                  (Corporate Seal)

                                      -2-
<PAGE>

                            CERTIFICATE OF CORRECTION

         FELCOR LODGING TRUST INCORPORATED, a Maryland corporation (hereinafter
referred to as the "Company"), hereby certifies to the State Department of
Assessments and Taxation of the State of Maryland (the "Department") as follows:

         FIRST: The title of the document being corrected by this Certificate of
Correction is the Articles of Merger (the "Articles of Merger") between FelCor
Lodging Trust Incorporated (formerly, FelCor Suite Hotels, Inc.) and Bristol
Hotel Company ("Bristol").

         SECOND: The names of the parties to the Articles of Merger are FelCor
Lodging Trust Incorporated (formerly, FelCor Suite Hotels, Inc.) and Bristol
Hotel Company, a Delaware corporation.

         THIRD: The Articles of Merger being corrected by this Certificate of
Correction were filed with, and accepted for record by, the Department on July
27, 1998 at 11:22 a.m.

         FOURTH: Article SEVENTH of the Articles of Merger, which is the
provision of the Articles of Merger being corrected by this Certificate of
Correction, as previously filed read as follows:

         "SEVENTH: (a) The total number of shares of stock of all classes that
         the Merging Corporation has authority to issue is (i) 150,000,000
         shares of common stock, par value $0.01 per share (each a "Merging
         Corporation Common Share"), and (ii) 50,000,000 shares of preferred
         stock, par value of $0.01 per share (each a "Merging Corporation
         Preferred Share"). The aggregate par value of all shares of all classes
         of stock of the Merging Corporation is $2,000,000. The total number of
         shares of stock of all classes that the Successor Corporation has
         authority to issue is (i) 100,000,000 shares of common stock, par value
         of $0.01 per share (each, a "Successor Corporation Common Share"), and
         (ii) 10,000,000 shares of preferred stock, par value of $0.01 per share
         (each, a "Successor Corporation Preferred Share"), 6,050,000 of which
         have been designated as "$1.95 Series A Cumulative Convertible
         Preferred Stock," par value of $0.01 per share (each, a "Successor
         Corporation Series A Preferred Share") and 57,000 of which have been
         designated as "9% Series B Cumulative Redeemable Preferred Stock," par
         value of $0.01 per share (each, a "Successor Corporation Series B
         Preferred Share"). The aggregate par value of all shares of all classes
         of the Successor Corporation is $1,100,000.

         (b)   At the Effective Time, the charter of the Successor Corporation
         will be amended such that the total number of shares of all classes
         that the Successor Corporation will have authority to issue will be (i)
         200,000,000 Successor Corporation Common Shares, and (ii) 20,000,000
         Successor Corporation Preferred Shares, 6,050,000 of which will have
         been designated as Successor Corporation Series A Preferred Shares and
         57,000 of which will have been designated as

<PAGE>

         Successor Corporation Series B Preferred Shares. The aggregate par
         value of all shares of all classes of the Successor Corporation will be
         $2,200,000."

         FIFTH: Article SEVENTH of the Articles of Merger is hereby corrected by
deleting Article SEVENTH of the Articles of Merger as previously filed and
replacing it in its entirety with the following:

         "SEVENTH: (a) The total number of shares of stock of all classes that
         the Merging Corporation has authority to issue is (i) 150,000,000
         shares of common stock, par value $0.01 per share (each a "Merging
         Corporation Common Share"), and (ii) 50,000,000 shares of preferred
         stock, par value of $0.01 per share (each a "Merging Corporation
         Preferred Share"). The aggregate par value of all shares of all classes
         of stock of the Merging Corporation is $2,000,000. The total number of
         shares of stock of all classes that the Successor Corporation has
         authority to issue is (i) 100,000,000 shares of common stock, par value
         of $0.01 per share (each, a "Successor Corporation Common Share"), and
         (ii) 10,000,000 shares of preferred stock, par value of $0.01 per share
         (each, a "Successor Corporation Preferred Share"), 6,050,000 of which
         have been designated as "$1.95 Series A Cumulative Convertible
         Preferred Stock," par value of $0.01 per share (each, a "Successor
         Corporation Series A Preferred Share") and 57,500 of which have been
         designated as "9% Series B Cumulative Redeemable Preferred Stock," par
         value of $0.01 per share (each, a "Successor Corporation Series B
         Preferred Share"). The aggregate par value of all shares of all classes
         of the Successor Corporation is $1,100,000.

         (b) At the Effective Time, the charter of the Successor Corporation
         will be amended such that the total number of shares of all classes
         that the Successor Corporation will have authority to issue will be (i)
         200,000,000 Successor Corporation Common Shares, and (ii) 20,000,000
         Successor Corporation Preferred Shares, 6,050,000 of which will have
         been designated as Successor Corporation Series A Preferred Shares and
         57,500 of which will have been designated as Successor Corporation
         Series B Preferred Shares. The aggregate par value of all shares of all
         classes of the Successor Corporation will be $2,200,000."

         SIXTH: This Certificate of Correction does not (i) alter the wording of
any resolution which was adopted by the Board of Directors or the stockholders
of the Company or Bristol or (ii) make any change or amendment which would not
have complied in all respects with the requirements of the Maryland General
Corporation Law.

                                       2
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Certificate of
Correction to be signed in its name and on its behalf on this 30th day of
August, 1999, by its Senior Vice President who acknowledges that this
Certificate of Correction is the act of the Company and that to the best of his
knowledge, information and belief and under penalties for perjury all matters
and facts contained in this Certificate of Correction are true and correct in
all respects.

                                        FELCOR LODGING TRUST INCORPORATED

                                        By:     /s/ WILLIAM P. STADLER
                                             -------------------------------
                                             Name:  William P. Stadler
                                             Title: Senior Vice President

                                        Attest:

                                        By:     /s/ LAWRENCE D. ROBINSON
                                             -------------------------------
                                             Name:  Lawrence D. Robinson
                                             Title: Senior Vice President/
                                                    General Counsel

                                                       (Corporate Sea])

                                       3
<PAGE>

                              ARTICLES SUPPLEMENTARY
                                       OF
                        FELCOR LODGING TRUST INCORPORATED

      FELCOR LODGING TRUST INCORPORATED, a Maryland corporation (hereinafter,
the "Company"), hereby certifies as follows:

      FIRST: Under the authority set forth in Article V of the Charter of the
Company, the Board of Directors of the Company on March 26, 2002, classified
10,258 additional unissued shares of the Company's preferred stock, par value
$0.01 per share, as "9% Series B Cumulative Redeemable Preferred Stock." As a
result, the aggregate number of authorized shares of 9% Series B Cumulative
Redeemable Preferred Stock is increased from 57,500 to 67,758.

      SECOND: The additional 10,258 shares of 9% Series B Cumulative Redeemable
Preferred Stock shall be subject in all respects to the terms and conditions of
the Company's Charter and shall have the preferences, conversion and other
rights, voting powers, restrictions, limitations as to dividends,
qualifications, and terms and conditions of redemption that are applicable to
the existing shares of 9% Series B Cumulative Redeemable Preferred Stock as set
forth in the Articles Supplementary of the Company accepted for record by the
State Department of Assessments and Taxation of the State of Maryland on May 6,
1998, except that dividends on such additional shares shall be cumulative from
February 1, 2002.

      THIRD: The total number of shares of capital stock that the Company has
authority to issue is (i) 200,000,000 shares of common stock, par value of $0.01
per share, and (ii) 20,000,000 shares of preferred stock, par value of $0.01 per
share, of which 6,050,000 shares have been designated as $1.95 Series A
Cumulative Convertible Preferred Stock and 67,758 shares have been designated as
9% Series B Cumulative Redeemable Preferred Stock.

<PAGE>

      IN WITNESS WHEREOF, the Company has caused these Articles Supplementary to
be signed and acknowledged in its name and on its behalf this 1st day of April,
2002, by its Executive Vice President who acknowledges that these Articles
Supplementary are the act of the Company and that, to the best of his knowledge,
information and belief and under the penalties of perjury, all matters and facts
contained in these Articles Supplementary are true in all material respects.

                                  FELCOR LODGING TRUST INCORPORATED

                                  By: /s/ LAWRENCE D. ROBINSON
                                      ------------------------------------------
                                  Lawrence D. Robinson, Executive Vice President

(Corporate Seal)                  Attest:

                                  By: /s/ THOMAS L. WIESE
                                      ------------------------------------------
                                  Thomas L. Wiese, Assistant Secretary

                                       2
<PAGE>

                            CERTIFICATE OF CORRECTION

      FELCOR LODGING TRUST INCORPORATED, a Maryland corporation (hereinafter
referred to as the "Company"), hereby certifies to the State Department of
Assessments and Taxation of the State of Maryland (the "Department") as follows:

      FIRST: The title of the document being corrected by this Certificate of
Correction is the Articles Supplementary of FelCor Lodging Trust Incorporated
(formerly, FelCor Suite Hotels, Inc.) (the "Articles Supplementary").

      SECOND: The name of the party to the Articles Supplementary being
corrected by this Certificate of Correction is FelCor Lodging Trust Incorporated
(formerly, FelCor Suite Hotels, Inc.).

      THIRD: The Articles Supplementary being corrected by this Certificate of
Correction were filed with, and accepted for record by, the Department on May 2,
1996 at 11:40 a.m.

      FOURTH: The definition of "Dividend Periods" in Section 2 of Article
SECOND of the Articles Supplementary, which is the provision of the Articles
Supplementary being corrected by this Certificate of Correction, as previously
filed read as follows:

            "Dividend Periods" shall mean quarterly dividend periods commencing
      January 1, March 1, June 1 and September 1 of each year and ending on and
      including the day preceding the first day of the next succeeding Dividend
      Period (other than the initial Dividend Period, which shall commence on
      May 6, 1996 and end on and include June 30, 1996).

      FIFTH: The definition of "Dividend Periods" in Section 2 of Article SECOND
of the Articles Supplementary is hereby corrected by deleting that definition in
its entirety and inserting in its place the following:

            "Dividend Periods" shall mean quarterly dividend periods commencing
      January 1, April 1, July 1 and October 1 of each year and ending on and
      including the day preceding the first day of the next succeeding Dividend
      Period (other than the initial Dividend Period, which shall commence on
      May 6, 1996 and end on and include June 30, 1996).

      SIXTH: This Certificate of Correction does not (i) alter the wording of
any resolution which was adopted by the board of directors or the stockholders
of the Company or (ii) make any change or amendment which would not have
complied in all respects with the requirements of the Maryland General
Corporation Law.

<PAGE>

      IN WITNESS WHEREOF, the Company has caused this Certificate of Correction
to be signed in its name and on its behalf on this 29th day of March, 2004, by
its President who acknowledges that this Certificate of Correction is the act of
the Company and that, to the best of his knowledge, information and belief and
under penalties for perjury, all matters and facts contained in this Certificate
of Correction are true and correct in all respects.

                                  FELCOR LODGING TRUST INCORPORATED

                                    /s/ THOMAS J. CORCORAN, JR.
                                  ----------------------------------------------
                                  Thomas J. Corcoran, Jr.,
                                  President and Chief Executive Officer

         (SEAL)

                                  Attest:

                                    /s/ LAWRENCE D. ROBINSON
                                  ----------------------------------------------
                                  Lawrence D. Robinson,
                                  Executive Vice President, General Counsel and
                                  Secretary

                                       2
<PAGE>

                             ARTICLES SUPPLEMENTARY
                                       OF
                        FELCOR LODGING TRUST INCORPORATED

      FELCOR LODGING TRUST INCORPORATED, a Maryland corporation (hereinafter,
the "Company"), hereby certifies as follows:

      FIRST: According to the Charter of the Company, the Company has authority
to issue 200,000,000 shares of Common Stock, par value $0.01 per share, and
20,000,000 shares of Preferred Stock, par value $0.01 per share, and the Board
of Directors of the Company on April 11, 1996, classified 6,900,000 unissued
shares of the Preferred Stock as "$1.95 Series A Cumulative Convertible
Preferred Stock" and on March 5, 1998, reclassified 850,000 shares thereof as
authorized but unissued Preferred Stock without designation as to class or
series, thus reducing the number of authorized shares of $1.95 Series A
Cumulative Convertible Preferred Stock to 6,050,000.

      SECOND: Under the authority of the Board of Directors of the Company set
forth in Article V of the Charter of the Company, which authority was properly
delegated by the Board of Directors of the Company on March 10, 2004, to the
Executive Committee of the Board of Directors, the Executive Committee on March
30, 2004 classified 4,600,000 additional unissued shares of the Company's
Preferred Stock, par value $0.01 per share, as "$1.95 Series A Cumulative
Convertible Preferred Stock." As a result, the aggregate number of authorized
shares of $1.95 Series A Cumulative Convertible Preferred Stock is increased to
10,650,000.

      THIRD: The additional 4,600,000 shares of $1.95 Series A Cumulative
Convertible Preferred Stock shall be subject in all respects to the terms and
conditions of the Company's Charter and shall have the preferences, conversion
and other rights, voting powers, restrictions, limitations as to dividends,
qualifications, and terms and conditions of redemption that are applicable to
the existing shares of $1.95 Series A Cumulative Convertible Preferred Stock as
set forth in the Articles Supplementary of the Company accepted for record by
the State Department of Assessments and Taxation of the State of Maryland on May
2, 1996, except that dividends on such additional shares shall be cumulative
from the first day of the earliest Dividend Period for which dividends on
previously outstanding shares of $1.95 Series A Cumulative Convertible Preferred
Stock have not been authorized.

      FOURTH: The total number of shares of capital stock that the Company has
authority to issue is (i) 200,000,000 shares of Common Stock, par value of $0.01
per share, and (ii) 20,000,000 shares of Preferred Stock, par value of $0.01 per
share, of which 10,650,000 shares have been designated as $1.95 Series A
Cumulative Convertible Preferred Stock and 67,758 shares have been designated as
9% Series B Cumulative Convertible Preferred Stock.

<PAGE>

      IN WITNESS WHEREOF, the Company has caused these Articles Supplementary to
be signed and acknowledged in its name and on its behalf this 31st day of March,
2004, by its President who acknowledges that these Articles Supplementary are
the act of the Company and that, to the best of his knowledge, information and
belief and under the penalties of perjury, all matters and facts contained in
these Articles Supplementary are true in all material respects.

                                 FELCOR LODGING TRUST INCORPORATED

                                 /s/ Thomas J. Corcoran, Jr.
                                  ---------------------------
                                 Thomas J. Corcoran, Jr.,
                                 President and Chief Executive Officer

(Corporate Seal)                 Attest:

                                 By:   /s/ Lawrence D. Robinson
                                     --------------------------
                                 Lawrence D. Robinson,
                                 Executive Vice President, General Counsel, and
                                 Secretary

                                        2
<PAGE>

                             ARTICLES SUPPLEMENTARY
                                       OF
                        FELCOR LODGING TRUST INCORPORATED

      FELCOR LODGING TRUST INCORPORATED, a Maryland corporation (hereinafter,
the "Company"), hereby certifies as follows:

      FIRST: According to the Charter of the Company, the Company has authority
to issue 200,000,000 shares of Common Stock, par value $0.01 per share, and
20,000,000 shares of Preferred Stock, par value $0.01 per share, and the Board
of Directors of the Company (i) on April 11, 1996, classified 6,900,000 unissued
shares of the Preferred Stock as "$1.95 Series A Cumulative Convertible
Preferred Stock"; (ii) on March 5, 1998, reclassified 850,000 shares thereof as
authorized but unissued Preferred Stock without designation as to class or
series, thus reducing the number of authorized shares of $1.95 Series A
Cumulative Convertible Preferred Stock to 6,050,000; and (iii) on March 30,
2004, the Executive Committee, under the authority of the Board of Directors of
the Company set forth in Article V of the Charter, which authority was properly
delegated by the Board of Directors on March 10, 2004, to the Executive
Committee of the Board of Directors, classified 4,600,000 additional unissued
shares of the Company's Preferred Stock, par value $0.01 per share, as "$1.95
Series A Cumulative Convertible Preferred Stock," thus, increasing the aggregate
number of authorized shares of $1.95 Series A Cumulative Convertible Preferred
Stock to 10,650,000.

      SECOND: Under the authority of the Board of Directors of the Company set
forth in Article V of the Charter of the Company, which authority was properly
delegated by the Board of Directors of the Company on August 16, 2004 to the
Executive Committee of the Board of Directors, the Executive Committee on August
18, 2004, classified 2,300,000 additional unissued shares of the Company's
Preferred Stock, par value $0.01 per share, as "$1.95 Series A Cumulative
Convertible Preferred Stock." As a result, the aggregate number of authorized
shares of $1.95 Series A Cumulative Convertible Preferred Stock is increased to
12,950,000.

      THIRD: The additional 2,300,000 shares of $1.95 Series A Cumulative
Convertible Preferred Stock shall be subject in all respects to the terms and
conditions of the Company's Charter and shall have the preferences, conversion
and other rights, voting powers, restrictions, limitations as to dividends,
qualifications, and terms and conditions of redemption that are applicable to
the existing shares of $1.95 Series A Cumulative Convertible Preferred Stock as
set forth in the Articles Supplementary of the Company accepted for record by
the State Department of Assessments and Taxation of the State of Maryland on May
2, 1996, except that dividends on such additional shares shall be cumulative
from the first day of the earliest Dividend Period for which dividends on
previously outstanding shares of $1.95 Series A Cumulative Convertible Preferred
Stock have not been authorized.

      FOURTH: The total number of shares of capital stock that the Company has
authority to issue is (i) 200,000,000 shares of Common Stock, par value of $0.01
per share, and (ii) 20,000,000 shares of Preferred Stock, par value of $0.01 per
share, of which 12,950,000 shares have been designated as $1.95 Series A
Cumulative Convertible Preferred Stock and 67,758 shares have been designated as
9% Series B Cumulative Convertible Preferred Stock.

<PAGE>

      IN WITNESS WHEREOF, the Company has caused these Articles Supplementary to
be signed and acknowledged in its name and on its behalf this 18th day of
August, 2004, by its President who acknowledges that these Articles
Supplementary are the act of the Company and that, to the best of his knowledge,
information and belief and under the penalties of perjury, all matters and facts
contained in these Articles Supplementary are true in all material respects.

                        FELCOR LODGING TRUST INCORPORATED

                        /s/ Thomas J. Corcoran, Jr.
                        --------------------------------------------------------
                        Thomas J. Corcoran, Jr.,
                        President and Chief Executive Officer

(Corporate Seal)        Attest:

                        By: /s/ Lawrence D. Robinson
                            ----------------------------------------------------
                        Lawrence D. Robinson,
                        Executive Vice President, General Counsel, and Secretary

                                       2
<PAGE>

                             ARTICLES SUPPLEMENTARY
                                       OF
                        FELCOR LODGING TRUST INCORPORATED

      FELCOR LODGING TRUST INCORPORATED, a Maryland corporation (hereinafter
referred to as the "Company"), hereby certifies as follows:

      FIRST, Under the authority set forth in Article V of the Charter of the
Company, the Board of Directors of the Company has classified 54,000 unissued
shares of preferred stock, $0.01 par value per share ("Preferred Stock"), as "8%
Series C Cumulative Redeemable Preferred Stock."

      SECOND, A description of the 8% Series C Cumulative Redeemable Preferred
Stock, including the preferences and other rights, voting powers, restrictions,
limitations as to dividends, qualifications, and terms and conditions of
redemption as set or changed by the Board of Directors of the Company, or the
Pricing Committee thereof, is as follows:

      SECTION 1. NUMBER OF SHARES AND DESIGNATION. This series of Preferred
Stock shall be designated as 8% Series C Cumulative Redeemable Preferred Stock
(the "Series C Preferred Stock"), and 54,000 shall be the number of shares of
Preferred Stock constituting such series.

      SECTION 2. DEFINITIONS. For purposes of the Series C Preferred Stock, the
following terms shall have the meanings indicated:

      (a)   "Board of Directors" shall mean the Board of Directors of the
Company or any committee authorized by such Board of Directors to perform any of
its responsibilities with respect to the Series C Preferred Stock.

      (b)   "Business Day" shall mean any day other than a Saturday, Sunday or a
day on which state or federally chartered banking institutions in Texas or New
York are not required to be open.

      (c)   "Call Date" shall have the meaning set forth in paragraph (c) of
Section 5 hereof.

      (d)   "Common Stock" shall mean the common stock of the Company, par value
$0.01 per share.

      (e)   "Dividend Payment Date" shall mean the last calendar day of January,
April, July and October, in each year, commencing on July 31, 2005; PROVIDED,
HOWEVER, that if any Dividend Payment Date falls on any day other than a
Business Day, the dividend payment due on such Dividend Payment Date shall be
paid on the Business Day immediately following such Dividend Payment Date.

      (f)   "Dividend Periods" shall mean quarterly dividend periods commencing
February 1, May 1, August 1, and November 1, of each year and ending on and
including the day preceding the first day of the next succeeding Dividend Period
(other than the initial Dividend Period, which shall commence on April 7, 2005
and end on and include July 31, 2005).

                                       1
<PAGE>

      (g)   "Issue Date" shall mean the date, from time to time, on which the
Company issues a share of Series C Preferred Stock.

      (h)   "Junior Stock" shall mean the Common Stock and any other class or
series of shares of the Company capital stock now or hereafter issued and
outstanding that rank junior to the Series C Preferred Stock as to payment of
dividends or amount upon any liquidation, dissolution or winding up of the
Company.

      (i)   "Parity Stock" shall have the meaning set forth in paragraph (b) of
Section 8 hereof.

      (j)   "Series A Preferred Stock" shall mean the Company's $1.95 Series A
Cumulative Convertible Preferred Stock.

      (k)   "Series B Preferred Stock" shall mean the Company's 9% Series B
Cumulative Redeemable Preferred Stock.

      (l)   "Series C Preferred Stock" shall have the meaning set forth in
Section 1 hereof.

      (m)   "set apart for payment" shall be deemed to include, without any
action other than the following, the recording by the Company in its accounting
ledgers of any accounting or bookkeeping entry which indicates, pursuant to a
declaration of dividends or other distribution by the Board of Directors, the
allocation of funds to be so paid on any series or class of capital stock of the
Company; PROVIDED, HOWEVER, that if any funds for a class or series of Junior
Stock or any class or series of stock ranking on a parity with the Series C
Preferred Stock as to the payment of dividends are placed in a separate account
of the Company or delivered to a disbursing, paying or other similar agent, then
"set apart for payment" with respect to the Series C Preferred Stock shall mean
placing such funds in a separate account or delivering such funds to a
disbursing, paying or other similar agent.

      (n)   "Transfer Agent" means SunTrust Bank, or such other agent or agents
of the Company as may be designated by the Board of Directors or their designee
as the transfer agent for the Series C Preferred Stock.

      (o)   "Voting Preferred Stock" shall have the meaning set forth in Section
9(a) hereof.

      SECTION 3. DIVIDENDS.

      (a)   The Holders of shares of the Series C Preferred Stock shall be
entitled to receive, when, as and if declared by the Board of Directors out of
funds legally available for that purpose, dividends payable in cash in an amount
per share of Series C Preferred Stock equal to 8% of the liquidation preference
per year. Such dividends shall be cumulative from the Issue Date of such shares,
whether or not in any Dividend Period or Periods there shall be funds of the
Company legally available for the payment of such dividends and whether or not
such dividends are authorized, and shall be payable quarterly, when, as and if
declared by the Board of Directors, in arrears on Dividend Payment Dates,
commencing on the first Dividend Payment Date after the

                                       2
<PAGE>

Issue Date. Each such dividend shall be payable in arrears to the holders of
record of shares of the Series C Preferred Stock, as they appear on the stock
records of the Company at the close of business on such record dates, not more
than 60 days preceding such Dividend Payment Dates thereof, as shall be fixed by
the Board of Directors. Accrued and unpaid dividends for any past Dividend
Periods may be declared and paid at any time, without reference to any regular
Dividend Payment Date, to holders of record on such date, not exceeding 45 days
preceding the payment date thereof, as may be fixed by the Board of Directors.

      (b)   The amount of dividends payable for each full Dividend Period for
the Series C Preferred Stock shall be computed by dividing the annual dividend
rate by four. The amount of dividends payable for any period shorter or longer
than a full Dividend Period, on the Series C Preferred Stock shall be computed
on the basis of a 360-day year consisting of twelve 30-day months. Holders of
the Series C Preferred Stock shall not be entitled to any dividends, whether
payable in cash, property or stock, in excess of cumulative dividends, as herein
provided, on the Series C Preferred Stock. No interest, or sum of money in lieu
of interest, shall be payable in respect of any dividend payment or payments on
the Series C Preferred Stock that may be in arrears.

      (c)   So long as any shares of the Series C Preferred Stock are
outstanding, no dividends, except as described in the immediately following
sentence, shall be declared or paid or set apart for payment on any class or
series of Parity Stock for any period unless full cumulative dividends have been
or contemporaneously are declared and paid, or declared and a sum sufficient for
the payment thereof set apart for such payment on the Series C Preferred Stock
for all Dividend Periods terminating on or prior to the Dividend Payment Date on
such class or series of Parity Stock. When dividends are not paid in full or a
sum sufficient for such payment is not set apart, as aforesaid, all dividends
declared upon shares of the Series C Preferred Stock and all dividends declared
upon any other class or series of Parity Stock shall be declared ratably in
proportion to the respective amounts of dividends accrued and unpaid on the
Series C Preferred Stock and accrued and unpaid on such Parity Stock.

      (d)   So long as any shares of the Series C Preferred Stock are
outstanding, no dividends (other than dividends or distributions paid in shares
of, or options, warrants or rights to subscribe for or purchase shares of,
Junior Stock), shall be declared or paid or set apart for payment or other
distribution declared or made upon Junior Stock, nor shall Junior Stock be
redeemed, purchased or otherwise acquired (other than a redemption, purchase or
other acquisition of shares of Common Stock made for purposes of an employee
incentive or benefit plan of the Company or any subsidiary) for any
consideration (or any moneys be paid to or made available for a sinking fund for
the redemption of any shares of any such stock) by the Company, directly or
indirectly, unless in each case (i) the full cumulative dividends on all
outstanding shares of the Series C Preferred Stock and any other Parity Stock of
the Company shall have been paid or set apart for payment for all past Dividend
Periods with respect to the Series C Preferred Stock and all past dividend
periods with respect to such Parity Stock and (ii) sufficient funds shall have
been paid or set apart for the payment of the dividend for the current Dividend
Period with respect to the Series C Preferred Stock and the current dividend
period with respect to such Parity Stock. Notwithstanding the foregoing
limitations, the Company may at any time acquire shares of its capital stock,
without regard to rank, for the purpose of preserving its status as a real
estate investment trust ("REIT").

                                       3
<PAGE>

      SECTION 4. LIQUIDATION PREFERENCE.

      (a)   In the event of any liquidation, dissolution or winding up of the
Company, whether voluntary or involuntary, before any payment or distribution of
the assets of the Company (whether capital or surplus) shall be made to or set
apart for the holders of Junior Stock, the holders of the shares of Series C
Preferred Stock shall be entitled to receive two thousand five hundred dollars
($2,500.00) per share of Series C Preferred Stock plus an amount equal to all
dividends (whether or not earned or declared) accrued and unpaid thereon to the
date of final distribution to such holders, but such holders shall not be
entitled to any further payment. If, upon any liquidation, dissolution or
winding up of the Company, the assets of the Company, or proceeds thereof,
distributable among the holders of the shares of Series C Preferred Stock shall
be insufficient to pay in full the preferential amount aforesaid and liquidating
payments on any other shares of any class or series of Parity Stock, then such
assets, or the proceeds thereof, shall be distributed among the holders of
shares of Series C Preferred Stock and any such other Parity Stock ratably in
accordance with the respective amounts that would be payable on such shares of
Series C Preferred Stock and any such other Parity Stock if all amounts payable
thereon were paid in full. For the purposes of this Section 4, (i) a
consolidation or merger of the Company with one or more corporations, (ii) a
sale or transfer of all or substantially all of the Company's assets, or (iii) a
statutory share exchange shall not be deemed to be a liquidation, dissolution or
winding up, voluntary or involuntary, of the Company.

      (b)   Subject to the rights of the holders of shares of any series or
class or classes of stock ranking on a parity with or prior to the Series C
Preferred Stock upon liquidation, dissolution or winding up, upon any
liquidation, dissolution or winding up of the Company, after payment shall have
been made in full to the holders of the Series C Preferred Stock, as provided in
this Section 4, any other series or class or classes of Junior Stock shall,
subject to the respective terms and provisions (if any) applying thereto, be
entitled to receive any and all assets remaining to be paid or distributed, and
the holders of the Series C Preferred Stock shall not be entitled to share
therein.

      SECTION 5. REDEMPTION AT THE OPTION OF THE COMPANY.

      (a)   The Series C Preferred Stock shall not be redeemable by the Company
prior to April 7, 2010. On and after April 7, 2010, the Company, at its option,
may redeem the shares of Series C Preferred Stock in whole or in part, as set
forth herein, subject to the provisions described below.

      (b)   The Series C Preferred Stock may be redeemed, in whole or in part,
at the option of the Company, at any time or from time to time, upon not less
than 30 nor more than 60 days' prior written notice. In order to exercise its
redemption option, the Company must issue a press release announcing the
redemption (the "Press Release"). The Company may not issue a Press Release
prior to April 7, 2010. The Press Release shall announce the redemption and set
forth the number of shares of Series C Preferred Stock which the Company intends
to redeem. The Call Date shall be selected by the Company, shall be specified in
the notice of redemption and, subject to the provisions of Section 5(e) below,
shall be not less than 30 days or more than 60 days after the date on which the
Company issues the Press Release.

                                       4
<PAGE>

      (c)   Upon redemption of Series C Preferred Stock by the Company on the
date specified in the notice to holders required under subparagraph (e) of this
Section 5 (the "Call Date"), each share of Series C Preferred Stock to be
redeemed shall be redeemed in cash at a price per share equal to $2,500.00 per
share, plus all accrued and unpaid distributions thereon to the Call Date,
without interest, to the extent that the Company has funds legally available
therefor. The redemption price of the Series C Preferred Stock may be paid from
any source. Dividends payable on the shares of Series C Preferred Stock for any
period greater or less than a full dividend period will be computed on the basis
of a 360-day year consisting of twelve 30-day months.

      (d)   If full cumulative dividends on the Series C Preferred Stock and any
other class or series of Parity Stock of the Company have not been paid or
declared and set apart for payment, the Series C Preferred Stock may not be
redeemed in part and the Company may not purchase or acquire shares of Series C
Preferred Stock, otherwise than pursuant to a purchase or exchange offer made on
the same terms to all holders of shares of Series C Preferred Stock.

      (e)   If the Company shall redeem shares of Series C Preferred Stock
pursuant to paragraph (a) of this Section 5, notice of such redemption shall be
given to the record holders of the Series C Preferred Stock by the Company not
less than 30 days nor more than 60 days before the Call Date. Such notice shall
be provided by first class mail, postage prepaid, at such holder's address as
the same appears on the stock records of the Company, or by publication in THE
WALL STREET JOURNAL or THE NEW YORK TIMES, or if neither such newspaper is then
being published, any other daily newspaper of national circulation. If the
Company elects to provide such notice by publication, it shall also promptly
mail notice of such redemption to the holders of the Series C Preferred Stock to
be redeemed. Neither the failure to mail any notice required by this paragraph
(e), nor any defect therein or in the mailing thereof, to any particular holder,
shall affect the sufficiency of the notice or the validity of the proceedings
for redemption with respect to the other holders. Any notice which was mailed in
the manner herein provided shall be conclusively presumed to have been duly
given on the date mailed whether or not the holder receives the notice. Each
such mailed or published notice shall state, as appropriate: (1) the Call Date:
(2) the number of shares of Series C Preferred Stock to be redeemed from such
holder; (3) the redemption price; (4) the place or places where the Series C
Preferred Stock is to be surrendered for payment of the redemption price; and
(5) that dividends on the shares to be redeemed shall cease to accrue on such
Call Date except as otherwise provided herein. Notice having been published or
mailed as aforesaid, from and after the Call Date (unless the Company shall fail
to make available the amount of cash necessary to effect such redemption), (i)
except as otherwise provided herein, dividends on the shares of the Series C
Preferred Stock so called for redemption shall cease to accrue, (ii) said shares
shall no longer be deemed to be outstanding, and (iii) all rights of the holders
thereof as holders of Series C Preferred Stock of the Company shall cease
(except the rights to receive the cash payable upon such redemption, without
interest thereon, upon surrender and endorsement of their certificates). The
Company's obligation to provide cash in accordance with the preceding sentence
shall be deemed fulfilled if, on or before the Call Date, the Company shall
deposit with a bank or trust company (which may be an affiliate of the Company)
that has an office in the Borough of Manhattan, The City of New York and that
has, or is an affiliate of a bank or trust company that has, a capital and
surplus of at least $50,000,000, any cash necessary for such redemption, in
trust, with irrevocable instructions that

                                       5
<PAGE>

such cash be applied to the redemption of the shares of Series C Preferred Stock
so called for redemption. At the close of business on the Call Date, each share
Series C Preferred Stock to be redeemed pursuant to Section 5(a) (unless the
Company defaults in the delivery of the cash payable on such Call Date) shall be
deemed to be no longer outstanding regardless of whether such holder has
surrendered the certificates representing the Series C Preferred Stock. No
interest shall accrue for the benefit of the holders of Series C Preferred Stock
to be redeemed on any cash so set aside by the Company. Subject to applicable
escheat laws, any such cash unclaimed at the end of two years from the Call Date
(together with any interest or other earnings accrued thereon) shall revert to
the general funds of the Company, after which reversion the holders of such
shares so called for redemption shall look only to the general funds of the
Company for the payment of such cash, and shall have no right to interest from
and after the Call Date.

      As promptly as practicable after the surrender in accordance with said
notice of the certificates for any such shares so redeemed (properly endorsed or
assigned for transfer, if the Company shall so require and if the notice shall
so state), such shares shall be exchanged for cash (without interest thereon)
for which such shares have been redeemed. If fewer than all the outstanding
shares of Series C Preferred Stock are to be redeemed, shares to be redeemed
shall be selected by the Company from outstanding shares of Series C Preferred
Stock not previously called for redemption by lot or pro rata (as nearly as may
be) or by any other method determined by the Company in its sole discretion to
be equitable. If fewer than all the shares of Series C Preferred Stock
represented by any certificate are redeemed, then new certificates representing
the unredeemed shares shall be issued without cost to the holder thereof.

      (f)   Notwithstanding the foregoing, the Company may at any time acquire
shares of its capital stock, without regard to rank, for the purpose of
preserving its status as a REIT, for purposes of an employee benefit plan of the
Company, or in accordance with the conversion or redemption provisions of any
class of Preferred Stock ranking on parity with or senior to the Series C
Preferred Stock.

      (g)   The procedures for redeeming any depositary receipts evidencing
fractional interests in the Series C Preferred Stock shall be substantially the
same as the procedures for redeeming the Series C Preferred Stock contained in
this Section 5 except that the depositary agent that issued the depositary
receipts being redeemed may act on behalf of the Company.

      SECTION 6. SHARES TO BE RETIRED.

      All shares of Series C Preferred Stock which shall have been issued and
reacquired in any manner by the Company shall be restored to the status of
authorized but unissued shares of Preferred Stock, without designation as to
series. The Company may also retire any unissued shares of Series C Preferred
Stock, and such shares shall then be restored to the status of authorized but
unissued shares of Preferred Stock, without designation as to series.

      SECTION 7. CONVERSION.

      Holders of shares of Series C Preferred Stock shall have no conversion
rights.

                                       6
<PAGE>
      SECTION 8. RANKING.

      Any class or series of stock of the Company shall be deemed to rank:

      (a)   prior to the Series C Preferred Stock, as to the payment of
dividends and as to distribution of assets upon liquidation, dissolution or
winding up, if the holders of such class or series shall be entitled to the
receipt of dividends or amounts distributable upon liquidation, dissolution or
winding up, as the case may be, in preference or priority to the holders of
Series C Preferred Stock;

      (b)   on a parity with the Series C Preferred Stock, as to the payment of
dividends and as to distribution of assets upon liquidation, dissolution or
winding up, whether or not the dividend rates, dividend payment dates or
redemption or liquidation prices per share thereof are different from those of
the Series C Preferred Stock, if the holders of such class or series of stock
and the Series C Preferred Stock shall be entitled to the receipt of dividends
and amounts distributable upon liquidation, dissolution or winding up in
proportion to their respective amounts of accrued and unpaid dividends per share
or liquidation preferences, without preference or priority of one over the other
("Parity Stock"); the Series A Preferred Stock and the Series B Preferred Stock
shall be Parity Stock with respect to the Series C Preferred Stock; and

      (c)   junior to the Series C Preferred Stock, as to the payment of
dividends or as to the distribution of assets upon liquidation, dissolution or
winding up, if such class or series of stock shall be Common Stock or if the
holders of Series C Preferred Stock shall be entitled to receipt of dividends or
amounts distributable upon liquidation, dissolution or winding up, as the case
may be, in preference or priority to the holders of shares of such class or
series of stock.

      SECTION 9. VOTING.

      (a)   If and whenever six quarterly dividends (whether or not consecutive)
payable on the Series C Preferred Stock or any series or class of Parity Stock
shall be in arrears (which shall, with respect to any such quarterly dividend,
mean that any such dividend has not been paid in full), whether or not earned or
declared, the number of directors then constituting the Board of Directors shall
be increased by two (if not already increased by reason of a similar arrearage
with respect to any Parity Stock) and the holders of shares of Series C
Preferred Stock, together with the holders of shares of every other series of
Parity Stock similarly entitled to vote (any such other series, the "Voting
Preferred Stock"), voting as a single class regardless of series, shall be
entitled to elect the two additional directors to serve on the Board of
Directors at any annual meeting of stockholders or special meeting held in place
thereof, or at a special meeting of the holders of the Series C Preferred Stock
and the Voting Preferred Stock called as hereinafter provided. Whenever all
arrearage dividends on the Series C Preferred Stock and the Voting Preferred
Stock then outstanding shall have been paid and dividends thereon for the
current quarterly dividend period shall have been paid or declared and set apart
for payment, then the right of the holders of the Series C Preferred Stock and
the Voting Preferred Stock to elect such additional two directors shall cease
(but subject always to the same provision for the vesting of such voting rights
in the case of any similar future arrearage in six quarterly dividends), and the
terms of office of all persons elected as directors by the holders of the Series
C Preferred Stock and the Voting Preferred Stock shall forthwith terminate and
the number of members of the Board of Directors shall be automatically reduced
accordingly. At any time after such voting

                                       7
<PAGE>

power shall have been so vested in the holders of shares of Series C Preferred
Stock and the Voting Preferred Stock, the secretary of the Company may, and upon
the written request of any holder of Series C Preferred Stock or any holder of
depositary receipts evidencing a fractional interest in the Series C Preferred
Stock (addressed to the secretary at the principal office of the Company) shall,
call a special meeting of the holders of the Series C Preferred Stock and the
Voting Preferred Stock for the election of the two directors to be elected by
them as herein provided, such call to be made by notice similar to that provided
in the Bylaws of the Company for a special meeting of the stockholders or as
required by law. If any such special meeting required to be called as above
provided shall not be called by the secretary within 20 days after receipt of
any such request, then any holder of shares of Series C Preferred Stock (or
depositary receipts representing a fractional interest in the Series C Preferred
Stock) may call such meeting, upon the notice above provided, and for that
purpose shall have access to the stock books of the Company. The directors
elected at any such special meeting shall hold office until the next annual
meeting of the stockholders or special meeting held in lieu thereof if such
office shall not have previously terminated as above provided. If any vacancy
shall occur among the directors elected by the holders of the Series C Preferred
Stock and the Voting Preferred Stock, a successor shall be elected by the Board
of Directors, upon the nomination of the then-remaining director elected by the
holders of the Series C Preferred Stock and the Voting Preferred Stock or the
successor of such remaining director, to serve until the next annual meeting of
the stockholders or special meeting held in place thereof if such office shall
not have previously terminated as provided above.

      (b)   So long as any shares of Series C Preferred Stock are outstanding,
in addition to any other vote or consent of stockholders required by law or by
the Charter, as amended, the affirmative vote of at least 66 2/3% of the votes
entitled to be cast by the holders of the shares of Series C Preferred Stock and
the Voting Preferred Stock, at the time outstanding, acting as a single class
regardless of series, at any meeting called for the purpose, shall be necessary
for effecting or validating the following:

            (i)   Any amendment, alteration or repeal of any of the provisions
of these Articles Supplementary, whether by way of merger, consolidation or
otherwise, that materially adversely affects the voting powers, rights or
preferences of the holders of the Series C Preferred Stock or the Voting
Preferred Stock; PROVIDED, HOWEVER, that the amendment of the provisions of the
Charter so as to authorize or create, or to increase the authorized amount, of
any Junior Stock or any shares of any class ranking on a parity with the Series
C Preferred Stock or the Voting Preferred Stock shall not be deemed to
materially adversely affect the voting powers, rights or preferences of the
holders of Series C Preferred Stock, and PROVIDED, FURTHER, that if any such
amendment, alteration or repeal would materially adversely affect any voting
powers, rights or preferences of the Series C Preferred Stock or another series
of Voting Preferred Stock that are not enjoyed by some or all of the other
series which otherwise would be entitled to vote in accordance herewith, the
affirmative vote of least 66 2/3% of the votes entitled to be cast by holders of
all series similarly affected, similarly given, shall be required in lieu of the
affirmative vote of at least 66 2/3% of the votes entitled to be cast by the
holders of the shares of Series C Preferred Stock and the Voting Preferred Stock
which otherwise would be entitled to vote in accordance herewith;

                                       8
<PAGE>

            (ii)  Enter into a share exchange that affects the Series C
Preferred Stock, consolidate with or merge into another entity, or permit
another entity to consolidate with or merge into the Company, unless in each
such case, each share of Series C Preferred Stock remains outstanding without a
material and adverse change to its terms and rights or is converted into or
exchanged for a share of preferred stock of the surviving entity having
preferences, rights, voting powers, restrictions, limitations as to
distributions, qualifications and terms and conditions of redemption identical
to those of a share of Series C Preferred Stock (except for changes that do not
materially and adversely affect the holders of the Series C Preferred Stock); or

            (iii) The authorization, reclassification, or creation of, or the
increase in the authorized amount of, any shares of any class or any security
convertible into shares of any class ranking prior to the Series C Preferred
Stock in the distribution of assets upon any liquidation, dissolution or winding
up of the Company or in the payment of dividends.

      For purposes of the foregoing provisions of this Section 9, each share of
Series C Preferred Stock shall have one hundred (100) votes per share, each of
which may be directed separately by the holder thereof (or by any proxy or
proxies of such holder). With respect to each share of the Series C Preferred
Stock, the holder thereof may designate up to 100 proxies, with each proxy
having the right to vote a whole number of votes (totaling 100 votes per share
of Series C Preferred Stock). Except as otherwise required by applicable law or
as set forth herein, the shares of Series C Preferred Stock shall not have any
relative, participating, optional or other special voting rights and powers
other than as set forth herein, and the consent of the holders thereof shall not
be required for the taking of any corporate action.

      SECTION 10. RECORD HOLDERS. The Company and the Transfer Agent may deem
and treat the record holder of any shares of Series C Preferred Stock as the
true and lawful owner thereof for all purposes, and neither the Company nor the
Transfer Agent shall be affected by any notice to the contrary.

                         [Signatures On Following Page.]

                                       9
<PAGE>

      IN WITNESS WHEREOF, the Company has caused these Articles Supplementary to
be executed in its name and on its behalf on this 4th day of April 2005, by its
Executive Vice President who acknowledges that these Articles Supplementary are
the act of the Company and that to the best of his knowledge, information and
belief, under penalties for perjury, all matters and facts contained in these
Articles Supplementary are true in all material respects.

                                 FELCOR LODGING TRUST INCORPORATED

                                 By:_________________________________
                                 Name: Lawrence D. Robinson
                                 Title: Executive Vice President

                                 Attest:

                                        _____________________________
                                        Assistant Secretary

                                               (Corporate Seal)

                                       10
<PAGE>

                             ARTICLES SUPPLEMENTARY
                                       OF
                        FELCOR LODGING TRUST INCORPORATED

      FELCOR LODGING TRUST INCORPORATED, a Maryland corporation (hereinafter,
the "Company"), hereby certifies as follows:

      FIRST: Under the authority set forth in Article V of the Charter of the
Company, on January 25, 2005, the Board of Directors of the Company authorized
the Executive Committee of the Board of Directors of the Company (the
"Committee") to take action to classify up to 68,000 unissued shares of the
Company's preferred stock, par value $0.01 per share, as "8% Series C Cumulative
Redeemable Preferred Stock" ("Series C Preferred Stock"). On March 8, 2005, the
Committee classified 54,000 shares of preferred stock as Series C Preferred
Stock under its authority. On August 9, 2005, the Committee classified an
additional 13,980 shares of preferred stock as Series C Preferred Stock under
its authority. As a result, the aggregate number of authorized shares of Series
C Preferred Stock is increased from 54,000 to 67,980.

      SECOND: The additional 13,980 shares of Series C Preferred Stock shall be
subject in all respects to the terms and conditions of the Company's Charter and
shall have the preferences, conversion and other rights, voting powers,
restrictions, limitations as to dividends, qualifications, and terms and
conditions of redemption that are applicable to the existing shares of Series C
Preferred Stock as set forth in the Articles Supplementary of the Company
accepted for record by the State Department of Assessments and Taxation of the
State of Maryland (the "SDAT") on April 4, 2005, except that dividends on such
additional shares of Series C Preferred Stock shall be cumulative from August 1,
2005.

      THIRD: The total number of shares of capital stock that the Company has
authority to issue is (i) 200,000,000 shares of common stock, par value $0.01
per share, and (ii) 20,000,000 shares of preferred stock, par value $0.01 per
share, of which 12,950,000 shares are designated as $1.95 Series A Cumulative
Convertible Preferred Stock, 13,758 shares are designated as 9% Series B
Cumulative Redeemable Preferred Stock ("Series B Preferred Stock") and 67,980
shares are designated as 8% Series C Cumulative Redeemable Preferred Stock. By
Articles Supplementary of the Company accepted for record by the SDAT on May 6,
1998 and April 2, 2002 (collectively, the "Series B Articles"), the Company
classified an aggregate of 67,758 shares of its preferred stock as Series B
Preferred Stock. According to the Series B Articles, shares of Series B
Preferred Stock that are redeemed by the Company became authorized but unissued
shares of preferred stock without description as to class or series. The Company
has heretofore redeemed 54,000 shares of Series B Preferred Stock.

<PAGE>

      IN WITNESS WHEREOF, the Company has caused these Articles Supplementary to
be signed and acknowledged in its name and on its behalf this 29th day of August
2005, by its Executive Vice President, who acknowledges that these Articles
Supplementary are the act of the Company and that, to the best of his knowledge,
information and belief and under the penalties of perjury, all matters and facts
contained in these Articles Supplementary are true in all material respects.

                                          FELCOR LODGING TRUST INCORPORATED

                                          By: /s/ LAWRENCE D. ROBINSON
                                              ---------------------------------
                                              Lawrence D. Robinson,
                                              Executive Vice President

(Corporate Seal)                         Attest:

                                          By:  /s/ BARBARA LACY
                                               ---------------------------------
                                               Assistant Secretary

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