Document:

exv4w5

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FELCOR LODGING LIMITED PARTNERSHIP,

as Issuer,

FELCOR LODGING TRUST INCORPORATED,

FELCOR/CSS HOTELS, L.L.C.,

FELCOR/LAX HOTELS, L.L.C.,

FELCOR/CSS HOLDINGS, L.P.,

FELCOR/ST. PAUL HOLDINGS, L.P.,

FELCOR/LAX HOLDINGS, L.P.,

FELCOR EIGHT HOTELS, L.L.C.,

FELCOR HOTEL ASSET COMPANY, L.L.C.,

FELCOR NEVADA HOLDINGS, L.L.C.,

FHAC NEVADA HOLDINGS, L.L.C.,

FHAC TEXAS HOLDINGS, L.P.,

FELCOR OMAHA HOTEL COMPANY, L.L.C.,

FELCOR COUNTRY VILLA HOTEL, L.L.C.,

FELCOR MOLINE HOTEL, L.L.C.,

FELCOR CANADA CO.,

FELCOR TRS HOLDINGS, L.P.,

KINGSTON PLANTATION DEVELOPMENT CORP.

AND

FELCOR HOLDINGS TRUST

as Guarantors,

and

SUNTRUST BANK,

as Trustee

INDENTURE

Dated as of May 26, 2004

Senior Floating Rate Notes due 2011

 

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CROSS-REFERENCE TABLE

	 	 	 
	TIA Sections
	 	Indenture Sections

	Section 310(a)(1)
	 	7.10
	(a)(2)
	 	7.10
	(b)
	 	7.08
	Section 313(c)
	 	7.06; 10.02
	Section 314(a)
	 	4.17; 10.02
	(a)(4)
	 	4.16; 10.02
	(c)(1)
	 	10.03
	(c)(2)
	 	10.03
	(e)
	 	10.04
	Section 315(b)
	 	7.05; 10.02
	Section 316(a)(1)(A)
	 	6.05
	(a)(1)(B)
	 	6.04
	(b)
	 	6.07
	Section 317(a)(1)
	 	6.08
	(a)(2)
	 	6.09
	Section 318(a)
	 	10.01
	(c)
	 	10.01

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

 

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TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page

	ARTICLE I
DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 	 
	SECTION 1.01. Definitions
	 	 	1	 
	SECTION 1.02. Incorporation by Reference of Trust Indenture Act
	 	 	19	 
	SECTION 1.03. Rules of Construction
	 	 	19	 
	ARTICLE II
NOTES
	 	 	 	 
	SECTION 2.01. Form and Dating
	 	 	20	 
	SECTION 2.02. Restrictive Legends
	 	 	21	 
	SECTION 2.03. Execution, Authentication and Denominations
	 	 	22	 
	SECTION 2.04. Registrar and Paying Agent
	 	 	23	 
	SECTION 2.05. Paying Agent To Hold Money in Trust
	 	 	23	 
	SECTION 2.06. Transfer and Exchange
	 	 	23	 
	SECTION 2.07. Book-Entry Provisions for Global Notes
	 	 	24	 
	SECTION 2.08. Special Transfer Provisions
	 	 	25	 
	SECTION 2.09. Replacement Notes
	 	 	27	 
	SECTION 2.10. Outstanding Notes
	 	 	28	 
	SECTION 2.11. Temporary Notes
	 	 	28	 
	SECTION 2.12. Cancellation
	 	 	28	 
	SECTION 2.13. CUSIP Numbers
	 	 	28	 
	SECTION 2.14. Defaulted Interest
	 	 	29	 
	SECTION 2.15. Issuance of Additional Notes
	 	 	29	 
	ARTICLE III
REDEMPTION
	 	 	 	 
	SECTION 3.01. Optional Redemption
	 	 	29	 
	SECTION 3.02. Notices to Trustee
	 	 	29	 
	SECTION 3.03. Selection of Notes To Be Redeemed
	 	 	29	 
	SECTION 3.04. Notice of Redemption
	 	 	30	 
	SECTION 3.05. Effect of Notice of Redemption
	 	 	30	 
	SECTION 3.06. Deposit of Redemption Price
	 	 	31	 
	SECTION 3.07. Payment of Notes Called for Redemption
	 	 	31	 
	SECTION 3.08. Notes Redeemed in Part
	 	 	31	 
	ARTICLE IV
COVENANTS
	 	 	 	 
	SECTION 4.01. Payment of Notes
	 	 	31	 
	SECTION 4.02. Maintenance of Office or Agency
	 	 	31	 
	SECTION 4.03. Limitation on Indebtedness
	 	 	32	 
	SECTION 4.04. Limitation on Restricted Payments
	 	 	34	 
	SECTION 4.05. Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries
	 	 	37	 
	SECTION 4.06. Limitation on the Issuance and Sale of Capital Stock of Restricted Subsidiaries
	 	 	38	 

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	SECTION 4.07. Limitation on Issuances of Guarantees by Restricted Subsidiaries
	 	 	38	 
	SECTION 4.08. Limitation on Transactions with Affiliates
	 	 	39	 
	SECTION 4.09. Limitation on Liens
	 	 	39	 
	SECTION 4.10. Limitation on Asset Sales
	 	 	39	 
	SECTION 4.11. Repurchase of Notes upon a Change of Control
	 	 	40	 
	SECTION 4.12. Existence
	 	 	40	 
	SECTION 4.13. Payment of Taxes and Other Claims
	 	 	40	 
	SECTION 4.14. Maintenance of Properties and Insurance
	 	 	41	 
	SECTION 4.15. Notice of Defaults
	 	 	41	 
	SECTION 4.16. Compliance Certificates
	 	 	41	 
	SECTION 4.17. Commission Reports and Reports to Holders
	 	 	42	 
	SECTION 4.18. Waiver of Stay, Extension or Usury Laws
	 	 	42	 
	SECTION 4.19. Limitation on Sale-Leaseback Transactions
	 	 	42	 
	SECTION 4.20. Maintenance of Total Unencumbered Assets
	 	 	43	 
	SECTION 4.21. Investment Grade Rating
	 	 	43	 
	ARTICLE V
SUCCESSOR CORPORATION
	 	 	 	 
	SECTION 5.01. Consolidation, Merger and Sale of Assets
	 	 	43	 
	SECTION 5.02. Successor Substituted
	 	 	43	 
	ARTICLE VI
DEFAULT AND REMEDIES
	 	 	 	 
	SECTION 6.01. Events of Default
	 	 	44	 
	SECTION 6.02. Acceleration
	 	 	45	 
	SECTION 6.03. Other Remedies
	 	 	46	 
	SECTION 6.04. Waiver of Past Defaults
	 	 	46	 
	SECTION 6.05. Control by Majority
	 	 	46	 
	SECTION 6.06. Limitation on Suits
	 	 	46	 
	SECTION 6.07. Rights of Holders To Receive Payment
	 	 	47	 
	SECTION 6.08. Collection Suit by Trustee
	 	 	47	 
	SECTION 6.09. Trustee May File Proofs of Claim
	 	 	47	 
	SECTION 6.10. Priorities
	 	 	47	 
	SECTION 6.11. Undertaking for Costs
	 	 	47	 
	SECTION 6.12. Restoration of Rights and Remedies
	 	 	48	 
	SECTION 6.13. Rights and Remedies Cumulative
	 	 	48	 
	SECTION 6.14. Delay or Omission Not Waiver
	 	 	48	 
	ARTICLE VII
TRUSTEE
	 	 	 	 
	SECTION 7.01. General
	 	 	48	 
	SECTION 7.02. Certain Rights of Trustee
	 	 	48	 
	SECTION 7.03. Individual Rights of Trustee
	 	 	49	 
	SECTION 7.04. Trustee’s Disclaimer
	 	 	49	 
	SECTION 7.05. Notice of Default
	 	 	49	 
	SECTION 7.06. Reports by Trustee to Holders
	 	 	49	 
	SECTION 7.07. Compensation and Indemnity
	 	 	50	 
	SECTION 7.08. Replacement of Trustee
	 	 	50	 
	SECTION 7.09. Successor Trustee by Merger, Etc
	 	 	51	 

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	SECTION 7.10. Eligibility
	 	 	51	 
	SECTION 7.11. Money Held in Trust
	 	 	51	 
	SECTION 7.12. Withholding Taxes
	 	 	51	 
	ARTICLE VIII
DISCHARGE OF INDENTURE
	 	 	 	 
	SECTION 8.01. Termination of Company’s Obligations
	 	 	52	 
	SECTION 8.02. Defeasance and Discharge of Indenture
	 	 	52	 
	SECTION 8.03. Defeasance of Certain Obligations
	 	 	54	 
	SECTION 8.04. Application of Trust Money
	 	 	55	 
	SECTION 8.05. Repayment to Company
	 	 	55	 
	SECTION 8.06. Reinstatement
	 	 	55	 
	ARTICLE IX
AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	 	 
	SECTION 9.01. Without Consent of Holders
	 	 	56	 
	SECTION 9.02. With Consent of Holders
	 	 	56	 
	SECTION 9.03. Revocation and Effect of Consent
	 	 	57	 
	SECTION 9.04. Notation on or Exchange of Notes
	 	 	57	 
	SECTION 9.05. Trustee To Sign Amendments, Etc.
	 	 	57	 
	SECTION 9.06. Conformity with Trust Indenture Act
	 	 	58	 
	ARTICLE X
MISCELLANEOUS
	 	 	 	 
	SECTION 10.01. Trust Indenture Act of 1939
	 	 	58	 
	SECTION 10.02. Notices
	 	 	58	 
	SECTION 10.03. Certificate and Opinion as to Conditions Precedent
	 	 	59	 
	SECTION 10.04. Statements Required in Certificate or Opinion
	 	 	59	 
	SECTION 10.05. Rules by Trustee, Paying Agent or Registrar
	 	 	59	 
	SECTION 10.06. Payment Date Other Than a Business Day
	 	 	59	 
	SECTION 10.07. Governing Law
	 	 	59	 
	SECTION 10.08. No Adverse Interpretation of Other Agreements
	 	 	59	 
	SECTION 10.09. No Recourse Against Others
	 	 	59	 
	SECTION 10.10. Successors
	 	 	60	 
	SECTION 10.11. Duplicate Originals
	 	 	60	 
	SECTION 10.12. Separability
	 	 	60	 
	SECTION 10.13. Table of Contents, Headings, Etc.
	 	 	60	 
	ARTICLE XI
GUARANTEE OF THE NOTES
	 	 	 	 
	SECTION 11.01. Guarantee
	 	 	60	 
	SECTION 11.02. Obligations of Guarantor Unconditional
	 	 	61	 
	SECTION 11.03. Notice to Trustee
	 	 	61	 
	SECTION 11.04. This Article Not To Prevent Events of Default
	 	 	61	 
	SECTION 11.05. Trustee’s Compensation Not Prejudiced
	 	 	61	 
	SECTION 11.06. Payments May Be Paid Prior to Dissolution
	 	 	61	 
	SECTION 11.07. Release of Guarantee
	 	 	61	 

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     INDENTURE, dated as of May 26, 2004,
among FelCor Lodging Limited Partnership (“FelCor LP”), a Delaware limited
partnership, FelCor Lodging Trust Incorporated (“FelCor”), a Maryland
corporation, FelCor/CSS Hotels, L.L.C., a Delaware limited liability company,
FelCor/LAX Hotels, L.L.C., a Delaware limited liability company, FelCor/CSS
Holdings, L.P., a Delaware limited partnership, FelCor/St. Paul Holdings, L.P.,
a Delaware limited partnership, FelCor/LAX Holdings, L.P., a Delaware limited
partnership, FelCor Eight Hotels, L.L.C., a Delaware limited liability company,
FelCor Hotel Asset Company, L.L.C., a Delaware limited liability company,
FelCor Nevada Holdings, L.L.C., a Nevada limited liability company, FHAC Nevada
Holdings, L.L.C., a Nevada limited liability company, FHAC Texas Holdings,
L.P., a Texas limited partnership, FelCor Omaha Hotel Company, L.L.C., a
Delaware limited liability company, FelCor Country Villa Hotel, L.L.C., a
Delaware limited liability company, FelCor Moline Hotel, L.L.C., a Delaware
limited liability company, FelCor Canada Co., a Nova Scotia unlimited liability
company, FelCor TRS Holdings, L.P., a Delaware limited partnership, Kingston
Plantation Development Corp., a Delaware corporation, FelCor Holdings Trust, a
Massachusetts business trust, and SunTrust Bank, a Georgia banking corporation
(the “Trustee”).

RECITALS OF COMPANY

     FelCor LP has duly authorized the execution and delivery of this Indenture
to provide for the issuance initially of up to $175,000,000 aggregate principal
amount at maturity of FelCor LP’s Senior Floating Rate Notes Due 2011 (the
“Notes”) issuable as provided in this Indenture. Each Guarantor has duly
authorized the execution and delivery of this Indenture to provide for a
guarantee of the Notes and of certain of FelCor LP’s obligations hereunder.
All things necessary to make this Indenture a valid agreement of FelCor LP and
the Guarantors in accordance with its terms have been done, and FelCor LP and
the Guarantors have done all things necessary to make the Notes, when executed
by FelCor LP and authenticated and delivered by the Trustee hereunder and duly
issued by FelCor LP, the valid obligations of FelCor LP and the Guarantors as
hereinafter provided.

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

AND THIS INDENTURE FURTHER WITNESSETH

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

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.01. Definitions.

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

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

 

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

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

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

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

     (v) all extraordinary gains and extraordinary losses.

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

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

     (ii) all goodwill, trade names, trademarks, patents, unamortized
debt discount and expense and other like intangibles, all as set forth on
the most recent quarterly or annual consolidated balance sheet of FelCor
LP or FelCor and their respective Restricted Subsidiaries, prepared in
conformity with GAAP and filed with the Commission or provided to the
Trustee pursuant to Section 4.17.

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

     (i) Total Assets for such Person as of the end of the calendar
quarter preceding the Transaction Date as set forth on the most recent
quarterly or annual consolidated balance sheet of FelCor LP or FelCor and
their respective Restricted Subsidiaries, prepared in conformity with
GAAP and filed with the Commission or provided to the Trustee pursuant to
Section 4.17, and

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

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

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

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

     “Asset Acquisition” means:

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

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

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

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

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

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

     (i) all or any of the Capital Stock of any Restricted Subsidiary
other than sales permitted under clause (iv) of Section 4.06,

     (ii) all or substantially all of the property and assets of an
operating unit or business of FelCor LP or FelCor or any of their
respective Restricted Subsidiaries, or

     (iii) any other property and assets of FelCor LP or FelCor or any of
their respective Restricted Subsidiaries outside the ordinary course of
business of FelCor LP or FelCor or such Restricted Subsidiary and, in
each case, that is not governed by the provisions of this Indenture
applicable to mergers, consolidations and sales of assets of FelCor LP
and FelCor;

provided that “Asset Sale” shall not include:

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

     (b) sales, transfers or other dispositions of assets with a fair
market value not in excess of $1 million in any transaction or series of
related transactions, or

     (c) sales or other dispositions of assets for consideration at least
equal to the fair market value of the assets sold or disposed of, to the
extent that the consideration received would satisfy the requirements set
forth in clause (i)(B) of the second paragraph of Section 4.10.

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

     (i) the sum of the products of:

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

     (b) the amount of such principal payment; by

     (ii) the sum of all such principal payments.

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

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

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

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

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

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

     “Change of Control” means such time as:

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

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

     “Closing Date” means May 26, 2004.

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

     “Common Stock” means, with respect to any Person, any and all shares,
interests, participations or other equivalents (however designated, whether
voting or non-voting) that have no preference on liquidation or with re-

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spect to
distributions over any other class of Capital Stock, including partnership
interests, whether general or limited, of such Person’s equity, whether
outstanding on the Closing Date or issued thereafter, including, without
limitation, all series and classes of common stock.

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

     “Consolidated EBITDA” means, for any period, Adjusted Consolidated Net
Income for such period plus, to the extent such amount was deducted in
calculating such Adjusted Consolidated Net Income:

     (i) Consolidated Interest Expense,

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

     (iii) depreciation expense,

     (iv) amortization expense, and

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

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

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

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

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

     (a) amortization of original issue discount on any Indebtedness and
the interest portion of any deferred payment obligation, calculated in
accordance with GAAP;

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

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

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

excluding (i) the amount of such interest expense of any Restricted Subsidiary
if the net income of such Restricted Subsidiary is excluded in the calculation
of Adjusted Consolidated Net Income pursuant to clause (ii) of the definition
thereof (but only in the same proportion as the net income of such Restricted
Subsidiary is excluded from the calculation of Adjusted Consolidated Net Income
pursuant to clause (ii) of the definition thereof) and (ii) any premiums, fees
and expenses (and any amortization thereof) payable in connection with the
offering of the Notes or paid in connection with any other Indebtedness
outstanding on June 30, 2000, all as determined on a consolidated basis
(without taking into account Unrestricted Subsidiaries) in conformity with
GAAP.

     “Corporate Trust Office” means the office of the Trustee at which the
corporate trust business of the Trustee shall, at any particular time, be
principally administered, which office is, at the date of this Indenture,
located at 25 Park Place, 24th Floor, Atlanta, Georgia 30303-2900, Attention:
Corporate Trust Administration.

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

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

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

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

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

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

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

provided that any Capital Stock that would not constitute Disqualified Stock
but for provisions thereof giving holders thereof the right to require such
Person to repurchase or redeem such Capital Stock upon the occurrence of an
“asset sale” or “change of control” occurring prior to the Stated Maturity of
the Notes shall not constitute Disqualified Stock if the “asset sale” or
“change of control” provisions applicable to such Capital Stock are no more
favorable to the holders of such Capital Stock than the provisions contained in
Sections 4.10 and 4.11 and such Capital Stock specifically provides that such
Person will not repurchase or redeem any such stock pursuant to such provisions
prior to FelCor LP’s repurchase of such Notes as are required to be repurchased
pursuant to Sections 4.10 and 4.11.

     “Equity Offering” means a public or private offering of Capital Stock
(other than Disqualified Stock) of FelCor or FelCor LP; provided that the
proceeds received by FelCor or FelCor LP directly or indirectly from such
offering are not less than $50,000,000.

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

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

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

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

     “Existing Senior Notes” means FelCor LP’s outstanding 7 3/8% Senior Notes
due 2004, 7 5/8% Senior Notes due 2007, 9 1/2% Senior Notes due 2008 and 8 1/2%
Senior Notes due 2011.

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

     “Funds From Operations” for any period means the consolidated net income
of FelCor LP, FelCor and their respective Restricted Subsidiaries for such
period in conformity with GAAP (without taking into account Unrestricted
Subsidiaries) excluding gains or losses from debt restructurings and sales of
depreciable operating property, plus depreciation of real property (including
furniture and equipment) and amortization related to real property and other
non-cash charges related to real property, after adjustments for unconsolidated
partnerships and joint ventures plus the minority interest in FelCor LP, if
applicable; provided that for purposes of the payment of any dividend or
distribution by FelCor LP or FelCor, “Funds From Operations” shall be equal to
$80 million plus the amount thereof computed for the period commencing with
July 1, 2000 and ending on the last day of the last fiscal quarter preceding
the payment of such dividend or distribution.

     “GAAP” means generally accepted accounting principles in the United States
of America as in effect as of July 1, 2000, including, without limitation,
those set forth in the opinions and pronouncements of the Accounting Principles
Board of the American Institute of Certified Public Accountants and statements
and pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as approved by a significant segment of the
accounting profession. All ratios and computations contained or referred to in
this Indenture shall be computed in conformity with GAAP applied on a
consistent basis, except that calculations made for purposes of determining
compliance with the terms of the covenants and with other provisions of this
Indenture shall be made without giving effect to:

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

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

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

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

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

     (i) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness of such other Person (whether arising by
virtue of partnership arrangements, or by agreements to keep-well, to
purchase assets, goods, securities or services (unless such purchase
arrangements are on

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arm’s-length terms and are entered into in the
ordinary course of business), to take-or-pay, or to maintain financial
statement conditions or otherwise), or

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

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

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

     “Guarantors” means FelCor and the Subsidiary Guarantors, collectively.

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

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

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

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

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

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

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

     (v) all Capitalized Lease Obligations;

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

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

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

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

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

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

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

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

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

     (i) the aggregate amount of Consolidated EBITDA for the then most
recent four fiscal quarters prior to such Transaction Date for which
reports have been filed with the Commission or provided to the Trustee
pursuant to Section 4.17 (“Four Quarter Period”); to

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

In making the foregoing calculation,

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

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

     (C) pro forma effect shall be given to Asset Dispositions and Asset
Acquisitions (including giving pro forma effect to the application of
proceeds of any Asset Disposition and any Indebtedness In-

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curred or repaid
in connection with any such Asset Acquisitions or Asset Dispositions)
that occur during such Reference Period but subsequent to the end of the
related Four Quarter Period as if they had occurred and such proceeds had
been applied on the first day of such Reference Period; and

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

     “Interest Payment Date” means each semiannual interest payment date on
June 1 and December 1, of each year, commencing December 1, 2004.

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

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

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

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

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

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

     (ii) the fair market value of the assets (net of liabilities (other
than liabilities to FelCor LP or FelCor or any of their respective
Restricted Subsidiaries)) of any Unrestricted Subsidiary at the time that

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such Unrestricted Subsidiary is designated a Restricted Subsidiary shall
be considered a reduction in outstanding Investments; and

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

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

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

     “Line of Credit” means an unsecured credit facility established by FelCor
LP or FelCor, together with all other agreements, instruments and documents
executed or delivered pursuant thereto or in connection therewith, in each case
as such agreements, instruments or documents may be amended, supplemented,
extended, renewed, replaced or otherwise modified from time to time; provided
that, with respect to any such credit facility, such facility shall be the Line
of Credit under this Indenture only if a notice to that effect is delivered by
FelCor LP and FelCor to a Responsible Officer of the Trustee.

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

     “Net Cash Proceeds” means:

     (a) with respect to any Asset Sale, the proceeds of such Asset Sale
in the form of cash or cash equivalents, including payments in respect of
deferred payment obligations (to the extent corresponding to the
principal, but not interest, component thereof) when received in the form
of cash or cash equivalents (except to the extent such obligations are
financed or sold with recourse to FelCor LP or FelCor or any of their
respective Restricted Subsidiaries) and proceeds from the conversion of
other property received when converted to cash or cash equivalents, net
of:

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

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

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

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

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

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

     “Note Guarantee” means a Guarantee by FelCor and the Subsidiary Guarantors
for payment of the Notes by such Person, including, without limitation, the
Subsidiary Guarantees. The Note Guarantees will be unsecured senior
obligations of each such Person and will be unconditional regardless of the
enforceability of the Notes or this Indenture.

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

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

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

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

     (ii) the purchase price and the date of purchase (which shall be a
Business Day no earlier than 30 days nor later than 60 days from the date
such notice is mailed) (“Payment Date”);

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

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

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

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

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

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On the Payment Date, FelCor LP shall

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

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

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

     The Paying Agent shall promptly mail to the Holders of Notes so accepted
payment in an amount equal to the purchase price, and the Trustee shall
promptly authenticate and mail to such Holders a new Note equal in principal
amount to any unpurchased portion of any Note surrendered; provided that each
Note purchased and each new Note issued shall be in a principal amount of
$1,000 or integral multiples thereof. FelCor LP shall publicly announce the
results of an Offer to Purchase as soon as practicable after the Payment Date.
FelCor LP shall comply with Rule 14e-1 under the Exchange Act and any other
securities laws and regulations thereunder to the extent such laws and
regulations are applicable, in the event that FelCor LP is required to
repurchase Notes pursuant to an Offer to Purchase.

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

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

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

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

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

     “Opinion of Counsel” means a written opinion signed by legal counsel who
may be an employee of or counsel to FelCor or FelCor LP. Each such Opinion of
Counsel shall include the statements provided for in TIA Section 314(e).

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

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

     “Permitted Investment” means:

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

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     (ii) Temporary Cash Investments;

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

     (iv) stock, obligations or securities received in satisfaction of
judgments.

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

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

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

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

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

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

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

     “Registrar” has the meaning provided in Section 2.04.

     “Registration Rights Agreement” means the Registration Rights Agreement,
dated May 26, 2004, among FelCor LP, FelCor, Deutsche Bank Securities Inc. and
certain permitted assigns specified therein.

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

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

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

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

     “Restricted Subsidiary” means any Subsidiary of FelCor LP or FelCor other
than an Unrestricted Subsidiary; provided that FelCor LP shall not be a
Restricted Subsidiary of FelCor.

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

     “Secured Indebtedness” means any Indebtedness secured by a Lien upon the
property of FelCor LP or FelCor or any of their respective Restricted
Subsidiaries, other than Indebtedness secured by a Stock Pledge to the extent
such Indebtedness does not exceed 50% of Adjusted Total Assets.

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

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

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

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

     (iii) Subsidiary Debt.

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

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

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

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

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

     “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies,
and its successors.

     “Specified Date” means any Redemption Date, Change of Control Payment
Date, Excess Proceeds Payment Date or any date on which the Notes first become
due and payable after an Event of Default.

     “Stated Maturity” means:

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

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

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

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

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

     “Subsidiary Guarantee” means a Guarantee by each Subsidiary Guarantor for
payment of the Notes by such Subsidiary Guarantor. The Subsidiary Guarantee
will be an unsecured senior obligation of each Subsidiary Guarantor and will be
unconditional regardless of the enforceability of the Notes and this Indenture.
Notwithstanding the foregoing, each Subsidiary Guarantee by a Subsidiary
Guarantor shall provide by its terms that it shall be automatically and
unconditionally released and discharged upon (i) the sale or other disposition
of the Capital Stock of such Subsidiary Guarantor, if, as a result of such sale
or disposition, such Subsidiary Guarantor ceases to be a subsidiary of FelCor
LP; provided such sale or other disposition is in compliance with the terms of
this Indenture, (ii) the consolidation or merger of any such Subsidiary
Guarantor with any person other than FelCor LP or a Subsidiary of FelCor LP,
if, as a result of such consolidation or merger, such Subsidiary Guarantor
ceases to be a subsidiary of FelCor LP; provided such consolidation or merger
is in compliance with this Indenture, (iii) a defeasance under Section 8.02 or
8.03 of this Indenture or (iv) the unconditional and complete release of such
Subsidiary Guarantor from its Guarantee of all Guaranteed Indebtedness.

     “Subsidiary Guarantor” means each of:

          (i) FelCor/CSS Hotels, L.L.C., a Delaware limited liability company;

          (ii) FelCor/LAX Hotels, L.L.C., a Delaware limited liability company;

          (iii) FelCor/CSS Holdings, L.P., a Delaware limited partnership;

          (iv) FelCor/St. Paul Holdings, L.P., a Delaware limited partnership;

          (v) FelCor/LAX Holdings, L.P., a Delaware limited partnership;

          (vi) FelCor Eight Hotels, L.L.C., a Delaware limited liability company;

          (vii) FelCor Hotel Asset Company, L.L.C., a Delaware limited liability company;

          (viii) FelCor Nevada Holdings, L.L.C., a Nevada limited liability company;

          (ix) FHAC Nevada Holdings, L.L.C., a Nevada limited liability company;

          (x) FHAC Texas Holdings, L.P., a Texas limited partnership;

          (xi) FelCor Omaha Hotel Company, L.L.C., a Delaware limited liability company;

          (xii) FelCor Country Villa Hotel, L.L.C., a Delaware limited liability company;

          (xiii) FelCor Moline Hotel, L.L.C., a Delaware limited liability company;

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          (xiv) FelCor Canada Co., a Nova Scotia unlimited liability company;

          (xv) FelCor TRS Holdings, L.P., a Delaware limited partnership;

          (xvi) Kingston Plantation Development Corp., a Delaware corporation;

          (xvii) FelCor Holdings Trust, a Massachusetts business trust; and

          (xviii) each other Restricted Subsidiary that executes a Subsidiary
Guarantee in compliance with Section 4.07.

     “Temporary Cash Investment” means any of the following:

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

          (ii) time deposits accounts, certificates of deposit and money
market deposits maturing within 180 days of the date of acquisition
thereof issued by a bank or trust company which is organized under the
laws of the United States of America, any state thereof, and which bank
or trust company has capital, surplus and undivided profits aggregating
in excess of $50 million and has outstanding debt which is rated “A” (or
such similar equivalent rating) or higher by at least one nationally
recognized statistical rating organization (as defined in Rule 436 under
the Securities Act) or any money-market fund sponsored by a registered
broker dealer or mutual fund distributor;

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

          (iv) commercial paper, maturing not more than 90 days after the date
of acquisition, issued by a corporation (other than an Affiliate of
FelCor LP or FelCor) organized and in existence under the laws of the
United States of America, any state thereof with a rating at the time as
of which any investment therein is made of “P-1” (or higher) according to
Moody’s or “A-1” (or higher) according to S&P; and

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

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

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

     “Total Assets” means the sum of:

          (i) Undepreciated Real Estate Assets; and

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

     “Total Unencumbered Assets” as of any date means the sum of:

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          (i) those Undepreciated Real Estate Assets not securing any portion
of Secured Indebtedness; and

          (ii) all other assets (but excluding intangibles and accounts
receivable) of FelCor LP, FelCor and their respective Restricted
Subsidiaries not securing any portion of Secured Indebtedness determined
on a consolidated basis in accordance with GAAP.

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

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

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

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

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

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

     “Unrestricted Subsidiary” means

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

          (ii) any Subsidiary of an Unrestricted Subsidiary.

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

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

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

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

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

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

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

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

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

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

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

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

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

     SECTION 1.02. Incorporation by Reference of Trust Indenture Act. Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. The following TIA terms
used in this Indenture have the following meanings:

          “indenture notes” means the Notes;

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

          “indenture to be qualified” means this Indenture;

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

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

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

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

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

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

          (iii) “or” is not exclusive;

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

          (v) provisions apply to successive events and transactions;

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

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

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

ARTICLE II

NOTES

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

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

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

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

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

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

     The definitive Notes shall be typed, printed, lithographed or engraved or
produced by any combination of these methods or may be produced in any other
manner permitted by the rules of any securities exchange on which the Notes may
be listed, all as determined by the Officers executing such Notes, as evidenced
by their execution of such Notes.

     SECTION 2.02. Restrictive Legends. Unless and until a Note is exchanged
for an Exchange Note or sold in connection with an effective Registration
Statement pursuant to the Registration Rights Agreement, the U.S. Global Notes,
Temporary Offshore Global Notes and each U.S. Physical Note shall bear the
following legend on the face thereof:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE.
BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A
“QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS
SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (2) AGREES THAT IT WILL NOT, WITHIN TWO YEARS AFTER THE
ORIGINAL ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE TRANSFER THIS
SECURITY EXCEPT (A) TO FELCOR LODGING LIMITED PARTNERSHIP OR ANY
SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR (AS DEFINED
IN RULE 501(a)(1), (2), (3), OR (7) UNDER THE SECURITIES ACT (AN
“ACCREDITED INVESTOR”) THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS
FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A SIGNED
LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE
RESTRICTIONS ON TRANSFER OF THIS SECURITY (THE FORM OF WHICH LETTER CAN
BE OBTAINED FROM THE TRUSTEE FOR THIS SECURITY), (D) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 903 OR RULE 904
UNDER THE SECURITIES ACT (IF AVAILABLE), (E) PURSUANT TO THE EXEMPTION
FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE), (F) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN
OPINION OF COUNSEL IF FELCOR LP SO REQUESTS), OR (G) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES
THAT IT WILL DELIVER TO EACH
PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY
WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY, IF THE
PROPOSED TRANSFEREE IS AN ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO
SUCH TRANSFER, FURNISH TO THE TRUSTEE AND FELCOR LP SUCH CERTIFICATIONS,
LEGAL OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY
REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN
EXEMPTION FROM, OR IN A

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TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS “OFFSHORE
TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN
TO THEM BY REGULATION S UNDER THE SECURITIES ACT.

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

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, TO FELCOR LP OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
OR SUCH OTHER REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY OR SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR
TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. TRANSFERS
OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN
PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL
BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN SECTION 2.08 OF THE INDENTURE.

     SECTION 2.03. Execution, Authentication and Denominations. The Notes
shall be executed by two Officers of FelCor, as general partner of FelCor LP.
The signature of any of these Officers on the Notes may be by facsimile or
manual signature in the name and on behalf of FelCor or FelCor LP, as the case
may be.

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

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

     The Notes shall be issued in the initial aggregate principal amount of
$175,000,000, provided that FelCor LP may issue additional Notes hereunder
without limitation as to principal amount in accordance with Section 2.15
hereof.

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

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

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

     SECTION 2.04. Registrar and Paying Agent. FelCor LP shall maintain an
office or agency where Notes may be presented for registration of transfer or
for exchange (the “Registrar”), an office or agency where Notes may be
presented for payment (the “Paying Agent”) and an office or agency where
notices and demands to or upon FelCor LP in respect of the Notes and this
Indenture may be served, which shall be in the Borough of Manhattan, The City
of New York. FelCor LP shall cause the Registrar to keep a register of the
Notes and of their transfer and exchange (the “Note Register”). FelCor LP may
have one or more co-Registrars and one or more additional Paying Agents.

     FelCor LP shall enter into an appropriate agency agreement with any Agent
not a party to this Indenture. The agreement shall implement the provisions of
this Indenture that relate to such Agent. FelCor LP shall give prompt written
notice to the Trustee of the name and address of any such Agent and any change
in the address of such Agent. If FelCor LP fails to maintain a Registrar,
Paying Agent and/or agent for service of notices and demands, the Trustee shall
act as such Registrar, Paying Agent and/or agent for service of notices and
demands. FelCor LP may remove any Agent upon written notice to such Agent and
the Trustee; provided that no such removal shall become effective until (i) the
acceptance of an appointment by a successor Agent to such Agent as evidenced by
an appropriate agency agreement entered into by FelCor LP and such successor
Agent and delivered to the Trustee or (ii) notification to the Trustee that the
Trustee shall serve as such Agent until the appointment of a successor Agent in
accordance with clause (i) of this proviso. Except with respect to Article 8,
FelCor, FelCor LP, any Subsidiary of FelCor or FelCor LP, or any Affiliate of
any of them may act as Paying Agent, Registrar or co-Registrar, and/or agent
for service of notice and demands.

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

     SECTION 2.05. Paying Agent To Hold Money in Trust. Not later than each
due date of the principal, premium, if any, and interest on any Notes, FelCor
LP shall deposit with the Paying Agent money in immediately available funds
sufficient to pay such principal, premium, if any, and interest so becoming
due; provided that if the Trustee is then serving as Paying Agent, FelCor LP
agrees to use its reasonable best efforts to deposit or otherwise transfer such
funds to the Trustee by no later than 11:00 a.m., Atlanta, Georgia time, on the
applicable due date. FelCor LP shall require each Paying Agent other than the
Trustee to agree in writing that such Paying Agent shall hold in trust for the
benefit of the Holders or the Trustee all money held by the Paying Agent for
the payment of principal of, premium, if any, and interest on the Notes
(whether such money has been paid to it by FelCor LP or any other obligor on
the Notes), and such Paying Agent shall promptly notify the Trustee of any
default by FelCor LP (or any other obligor on the Notes) in making any such
payment. FelCor LP at any time may require a Paying Agent to pay all money
held by it to the Trustee and account for any funds disbursed, and the Trustee
may at any time during the continuance of any payment default, upon written
request to a Paying Agent, require such Paying Agent to pay all money held by
it to the Trustee and to
account for any funds disbursed. Upon doing so, the Paying Agent shall
have no further liability for the money so paid over to the Trustee. If
FelCor, FelCor LP or any Subsidiary of FelCor or FelCor LP or any Affiliate of
any of them acts as Paying Agent, it will, on or before each due date of any
principal of, premium, if any, or interest on the Notes, segregate and hold in
a separate trust fund for the benefit of the Holders a sum of money sufficient
to pay such principal, premium, if any, or interest so becoming due until such
sum of money shall be paid to such Holders or otherwise disposed of as provided
in this Indenture, and will promptly notify the Trustee of its action or
failure to act.

     SECTION 2.06. Transfer and Exchange. The Notes are issuable only in
registered form. A Holder may transfer a Note only by written application to
the Registrar stating the name of the proposed transferee and otherwise
complying with the terms of this Indenture. No such transfer shall be effected
until, and such transferee shall succeed to the rights of a Holder only upon,
final acceptance and registration of the transfer by the Registrar in the Note

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

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

     SECTION 2.07. Book-Entry Provisions for Global Notes. The U.S. Global
Note and Offshore Global Note initially shall (i) be registered in the name of
the Depositary for such Global Notes or the nominee of such Depositary, (ii) be
delivered to the Trustee as custodian for such Depositary and (iii) bear
legends as set forth in Section 2.02.

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

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

     (c) Any beneficial interest in one of the Global Notes that is transferred
to a person who takes delivery in the form of an interest in the other Global
Note will, upon transfer, cease to be an interest in such Global Note and
become an interest in the other Global Note and, accordingly, will thereafter
be subject to all transfer restric-

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tions, if any, and other procedures
applicable to beneficial interests in such other Global Note for as long as it
remains such an interest.

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

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

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

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

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

     SECTION 2.08. Special Transfer Provisions. Unless and until a Note is
exchanged for an Exchange Note or sold in connection with an effective
Registration Statement pursuant to the Registration Rights Agreement, the
following provisions shall apply:

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

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

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

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

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

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

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

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

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

     (d) Transfers of Interests in the Permanent Offshore Global Note or
Unlegended Offshore Physical Notes. The following provisions shall apply with
respect to any transfer of interests in the Permanent Offshore Global Note or
unlegended Offshore Physical Notes. The Registrar shall register the transfer
of any such Note without requiring any additional certification.

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

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

     (ii) (a) If the proposed transferor is an Agent Member holding a

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

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

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

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

     SECTION 2.09. Replacement Notes. If a mutilated Note is surrendered to
the Trustee or if the Holder claims that the Note has been lost, destroyed or
wrongfully taken, FelCor LP shall issue and the Trustee shall authenticate a
replacement Note of like tenor and amount and bearing a number not
contemporaneously outstanding; provided that the requirements of this Section
2.09 are met. If required by the Trustee or FelCor LP, an indemnity bond must
be furnished that is sufficient in the judgment of both the Trustee and FelCor
LP to protect FelCor LP, the Guarantors, the Trustee or any Agent from any loss
that any of them may suffer if a Note is replaced. FelCor LP

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may charge such
Holder for its expenses and the expenses of the Trustee in replacing a Note.
In case any such mutilated, lost, destroyed or wrongfully taken Note has become
or is about to become due and payable, FelCor LP in its discretion may pay such
Note instead of issuing a new Note in replacement thereof.

     Every replacement Note is an additional obligation of FelCor LP and shall
be entitled to the benefits of this Indenture.

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

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

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

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

     SECTION 2.11. Temporary Notes. Until definitive Notes are ready for
delivery, FelCor LP may prepare and the Trustee shall authenticate temporary
Notes. Temporary Notes shall be substantially in the form of definitive Notes
but may have insertions, substitutions, omissions and other variations
determined to be appropriate by the Officers executing the temporary Notes, as
evidenced by their execution of such temporary Notes. If temporary Notes are
issued, FelCor LP will cause definitive Notes to be prepared without
unreasonable delay. After the preparation of definitive Notes, the temporary
Notes shall be exchangeable for definitive Notes upon surrender of the
temporary Notes at the office or agency of FelCor LP designated for such
purpose pursuant to Section 4.02, without charge to the Holder. Upon surrender
for cancellation of any one or more temporary Notes FelCor LP shall execute and
the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of definitive Notes of authorized denominations. Until so
exchanged, the temporary Notes shall be entitled to the same benefits under
this Indenture as definitive Notes.

     SECTION 2.12. Cancellation. FelCor LP at any time may deliver to the
Trustee for cancellation any Notes previously authenticated and delivered
hereunder which FelCor LP may have acquired in any manner whatsoever, and may
deliver to the Trustee for cancellation any Notes previously authenticated
hereunder which FelCor LP has not issued and sold. The Registrar and the
Paying Agent shall forward to the Trustee any Notes surrendered to them for
transfer, exchange or payment. The Trustee shall cancel all Notes surrendered
for transfer, exchange, payment or cancellation in accordance with its normal
procedure.

     SECTION 2.13. CUSIP Numbers. FelCor LP in issuing the Notes may use
“CUSIP,” “CINS” or “ISIN” numbers (if then generally in use), and the Trustee
shall use CUSIP, CINS or ISIN numbers, as the case may be, in notices of
redemption or exchange as a convenience to Holders; provided that any such
notice shall state that no representation is made as to the correctness of such
numbers either as printed on the Notes or as contained in any

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notice of
redemption or exchange and that reliance may be placed only on the other
identification numbers printed on the Notes.

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

     SECTION 2.15. Issuance of Additional Notes. FelCor LP may, subject to
compliance with Article Four of this Indenture, issue additional Notes under
this Indenture. The Notes issued on the Closing Date and any additional Notes
subsequently issued shall be treated as a single class for all purposes under
this Indenture.

ARTICLE III

REDEMPTION

     SECTION 3.01. Optional Redemption. (a) Except as provided in Section
3.01(b), FelCor LP may not redeem any of the Notes prior to December 1, 2006.
The Notes will be redeemable at the option of FelCor LP, in whole or in part,
at any time, and from time to time, on and after December 1, 2006, upon not
less than 30 days’ nor more than 60 days’ notice, at the following Redemption
Prices (expressed as percentages of the principal amount thereof) if redeemed
during the 12-month period commencing December 1 of the years indicated below,
in each case together with accrued and unpaid interest thereon to the
Redemption Date:

	 	 	 	 	 
	Year
	 	Redemption Price

	2006
	 	 	102.000	%
	2007
	 	 	101.000	%
	2008 and thereafter
	 	 	100.000	%

     (b) Notwithstanding the foregoing, at any time, or from time to time, on
or prior to June 1, 2007, FelCor LP may, at its option, use the net cash
proceeds of one or more Equity Offerings to redeem up to 35% of the principal
amount of the Notes issued under this Indenture at a Redemption Price
(expressed as a percentage of the principal amount thereof) equal to the sum of
(i) 100% plus (ii) the then Applicable Interest Rate (as defined in Exhibit A)
on the Notes, together with accrued unpaid interest thereon, if any, to the
Redemption Date; provided that (i) at least 65% of the aggregate principal
amount of the Notes issued under this Indenture remains outstanding immediately
after such redemption; and (ii) FelCor LP makes such redemption no later than
90 days after the consummation of any such Equity Offering.

     SECTION 3.02. Notices to Trustee. If FelCor LP elects to redeem Notes
pursuant to Section 3.01, it shall notify the Trustee in writing of the
Redemption Date and the principal amount of Notes to be redeemed in an
Officers’ Certificate at least 45 days before the Redemption Date (unless a
shorter period shall be satisfactory to the Trustee).

     SECTION 3.03. Selection of Notes To Be Redeemed. If less than all of the
Notes are to be redeemed at any time, the Trustee shall select the Notes to be
redeemed in compliance with the requirements, as certified to it by FelCor LP,
of the principal national securities exchange, if any, on which the Notes are
listed or, on a pro rata basis, by lot or by such other method as the Trustee
in its sole discretion shall deem fair and appropriate; provided that no Notes
of $1,000 in principal amount at maturity shall be redeemed in part.
Notwithstanding the foregoing, if less than all the Notes are to be redeemed
with the proceeds of an Equity Offering, the Trustee shall select the Notes to

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be redeemed on a pro rata basis or on as nearly a pro rata basis as practicable
(subject to the procedures of the Depositary) unless such method is otherwise
prohibited.

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

     SECTION 3.04. Notice of Redemption. With respect to any redemption of Notes pursuant to Section 3.01, at
least 30 days but not more than 60 days before a Redemption Date, FelCor LP
shall mail a notice of redemption by first class mail to each Holder whose
Notes are to be redeemed.

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

          (i) the Redemption Date;

          (ii) the Redemption Price;

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

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

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

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

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

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

     SECTION 3.05. Effect of Notice of Redemption. Once notice of redemption
is mailed, Notes called for redemption become due and payable on the Redemption
Date and at the Redemption Price. Upon surrender of any Notes to the Paying
Agent, such Notes shall be paid at the Redemption Price, plus accrued interest,
if any, to the Redemption Date.

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

     SECTION 3.06. Deposit of Redemption Price. On or prior to any Redemption
Date, FelCor LP shall deposit with the Paying Agent (or, if FelCor LP is acting
as its own Paying Agent, shall segregate and hold in trust as provided in
Section 2.05) money sufficient to pay the Redemption Price of and accrued
interest on all Notes to be redeemed on that
date other than Notes or portions thereof called for redemption on that
date that have been delivered by FelCor LP to the Trustee for cancellation.

     SECTION 3.07. Payment of Notes Called for Redemption. If notice of
redemption has been given in the manner provided above, the Notes or portion of
Notes specified in such notice to be redeemed shall become due and payable on
the Redemption Date at the Redemption Price stated therein, together with
accrued interest to such Redemption Date, and on and after such date (unless
FelCor LP shall default in the payment of such Notes at the Redemption Price
and accrued interest to the Redemption Date, in which case the principal, until
paid, shall bear interest from the Redemption Date at the rate prescribed in
the Notes), such Notes shall cease to accrue interest. Upon surrender of any
Note for redemption in accordance with a notice of redemption, such Note shall
be paid and redeemed by FelCor LP at the Redemption Price, together with
accrued interest, if any, to the Redemption Date; provided that installments of
interest whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders registered as such at the close of business on the
relevant Regular Record Date.

     SECTION 3.08. Notes Redeemed in Part. Upon surrender of any Note that is
redeemed in part, FelCor LP shall execute and the Trustee shall authenticate
and deliver to the Holder a new Note equal in principal amount to the
unredeemed portion of such surrendered Note.

ARTICLE IV

COVENANTS

     SECTION 4.01. Payment of Notes. FelCor LP shall pay the principal of,
premium, if any, and interest on the Notes on the dates and in the manner
provided in the Notes and this Indenture. An installment of principal,
premium, if any, or interest shall be considered paid on the date due if the
Trustee or Paying Agent (other than FelCor LP, a Subsidiary of FelCor LP, a
Guarantor or any Affiliate of any of them) holds on that date money designated
for and sufficient to pay the installment. If FelCor LP, any Subsidiary of
FelCor LP, a Guarantor or any Affiliate of any of them, acts as Paying Agent,
an installment of principal, premium, if any, or interest shall be considered
paid on the due date if the entity acting as Paying Agent complies with the
last sentence of Section 2.05. As provided in Section 6.09, upon any
bankruptcy or reorganization procedure relative to FelCor LP or any Guarantor,
the Trustee shall serve as the Paying Agent and conversion agent, if any, for
the Notes.

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

     SECTION 4.02. Maintenance of Office or Agency. FelCor LP shall maintain
in the Borough of Manhattan, The City of New York an office or agency where
Notes may be surrendered for registration of transfer or exchange or for
presentation for payment and where notices and demands to or upon FelCor LP in
respect of the Notes and this Indenture may be served. FelCor LP will give
prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time FelCor LP shall fail to
maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the address of the Trustee set forth in
Section 10.02.

     FelCor LP may also from time to time designate one or more other offices
or agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided that no
such designation or rescission shall in any manner relieve FelCor LP of its
obligation to maintain an

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office or agency in the Borough of Manhattan, The
City of New York for such purposes. FelCor LP shall give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

     FelCor LP hereby initially designates SunTrust Bank c/o Law Debenture
Corporate Services Inc., 767 Third Avenue, New York, New York 10017, as agent
for FelCor LP, located in the Borough of Manhattan, The City of New York, as
such office of FelCor LP in accordance with Section 2.04.

     SECTION 4.03. Limitation on Indebtedness. Neither FelCor LP nor FelCor
shall, and neither FelCor LP nor FelCor shall permit any of their respective
Restricted Subsidiaries to, Incur any Indebtedness if, immediately after giving
effect to the Incurrence of such additional Indebtedness, the aggregate
principal amount of all outstanding Indebtedness of FelCor LP, FelCor and their
respective Restricted Subsidiaries on a consolidated basis determined in
accordance with GAAP is greater than 60% of Adjusted Total Assets.

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

     (c) Neither FelCor LP nor FelCor shall, and neither FelCor LP nor FelCor
shall permit any of their respective Restricted Subsidiaries to, Incur any
Indebtedness (other than the Existing Senior Notes, the Subsidiary Guarantees
relating to the Existing Senior Notes and other Indebtedness existing on the
Closing Date); provided that FelCor LP or FelCor or any of their respective
Restricted Subsidiaries may Incur Indebtedness if, after giving effect to the
Incurrence of such Indebtedness and the receipt and application of the proceeds
therefrom, the Interest Coverage Ratio of FelCor LP, FelCor and their
respective Restricted Subsidiaries on a consolidated basis would be greater
than 2.0 to 1.

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

     (i) Indebtedness outstanding under the Line of Credit at any time in
an aggregate principal amount not to exceed the greater of (a) $50
million or (b) 1.5 times Consolidated EBITDA for the then most recent
four fiscal quarters completed prior to such Transaction Date for which
reports have been filed with the Commission or provided to the Trustee
pursuant to Section 4.17, less any amount of such Indebtedness
permanently repaid as provided under Section 4.10;

     (ii) Indebtedness owed to:

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

     (B) to any Restricted Subsidiary;

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

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

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

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

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

provided further that in no event may Indebtedness of FelCor LP or FelCor that
is pari passu with or subordinated in right of payment to the Notes be
refinanced by means of any Indebtedness of any Restricted Subsidiary pursuant
to this clause (iii);

     (iv) Indebtedness;

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

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

     (C) arising from agreements providing for indemnification,
adjustment of purchase price or similar obligations, or from
Guarantees or letters of credit, surety bonds or performance bonds
securing any obligations of FelCor LP or FelCor or any of their
respective Restricted Subsidiaries pursuant to such agreements, in
any case Incurred in connection with the disposition of any
business, assets or Restricted Subsidiary (other than Guarantees
of Indebtedness Incurred by any Person acquiring all or any
portion of such business, assets or Restricted Subsidiary for the
purpose of financing such acquisition), in a principal amount not
to exceed the gross proceeds actually received by FelCor LP,
FelCor and their respective Restricted Subsidiaries on a
consolidated basis in connection with such disposition;

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

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

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

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

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

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

     (1) Indebtedness Incurred under the Line of Credit on or prior to
the Closing Date shall be treated as Incurred pursuant to clause (i) of
paragraph (d) of this Section 4.03,

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

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

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

     SECTION 4.04. Limitation on Restricted Payments. Neither FelCor LP nor
FelCor shall, and neither FelCor LP nor FelCor permit any of their respective
Restricted Subsidiaries to, directly or indirectly,

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

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

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

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

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

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

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

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

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

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

     (B) FelCor LP or FelCor could not Incur at least $1.00 of
Indebtedness under paragraphs (a), (b) and (c) of Section 4.03, or

     (C) the aggregate amount of all Restricted Payments (the amount, if
other than in cash, to be determined in good faith by the Board of
Directors, whose determination shall be conclusive and evidenced by a
Board Resolution) made after September 15, 2000 shall exceed the sum of:

     (1) 95% of the aggregate amount of the Funds From Operations
(or, if the Funds From Operations is a loss, minus 100% of the
amount of such loss) (determined by excluding income resulting
from transfers of assets by FelCor LP or FelCor or any of their
respective Restricted Subsidiaries to an Unrestricted Subsidiary)
accrued on a cumulative basis during the period (taken as one
accounting period) beginning on July 1, 2000 and ending on the
last day of the last fiscal quarter completed preceding the
Transaction Date for which reports have been filed with the
Commission or provided to the Trustee pursuant to Section 4.17,
plus

     (2) the aggregate Net Cash Proceeds received by FelCor LP or
FelCor after September 15, 2000 from the issuance and sale
permitted by this Indenture of its Capital Stock (other than
Disqualified Stock) to a Person who is not a Subsidiary of FelCor
LP or FelCor, including an issuance or sale permitted by this
Indenture of Indebtedness of FelCor LP or FelCor for cash
subsequent to September 15, 2000 upon the conversion of such
Indebtedness into Capital Stock (other than Disqualified Stock) of
FelCor LP or FelCor, or from the issuance to a Person who is not a
Subsidiary of FelCor LP or FelCor of any options, warrants or
other rights to acquire Capital Stock of FelCor LP or FelCor (in
each case, exclusive of any Disqualified Stock or any options,
warrants or other rights that are redeemable at the option of the
holder, or are required to be redeemed, prior to the Stated
Maturity of the Notes), plus

     (3) an amount equal to the net reduction in Investments
(other than reductions in Permitted Investments) in any Person
resulting from payments of interest on Indebtedness, dividends,
repayments of loans or advances, or other transfers of assets, in
each case to FelCor LP or FelCor or any of their respective
Restricted Subsidiaries or from the Net Cash Proceeds from the
sale of any such Investment (except, in each case, to the extent
any such payment or proceeds are included in the calculation of
Funds From Operations) or from redesignations of Unrestricted
Subsidiaries as Restricted Subsidiaries (valued in each case as
provided in the definition of “Investments”) not to exceed, in
each case, the amount of Investments previously made by FelCor LP,
FelCor and their respective Restricted Subsidiaries in such Person
or Unrestricted Subsidiary, plus

     (4) the purchase price of noncash tangible assets acquired in
exchange for an issuance of Capital Stock (other than Disqualified
Stock) of FelCor LP or FelCor subsequent to September 15, 2000.

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

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

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

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

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

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

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

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

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

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

     (vii) Investments in any Person or Persons in an aggregate amount
not to exceed $150 million; or

     (viii) any other Restricted Payments in an aggregate amount not to
exceed $100 million, provided that at the time of, and after giving
effect to, the proposed Restricted Payment FelCor LP and FelCor could
have incurred at least $1.00 of Indebtedness under paragraphs (a), (b)
and (c) of Section 4.03;

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

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     SECTION 4.05. Limitation on Dividend and Other Payment Restrictions
Affecting Restricted Subsidiaries. Neither FelCor LP nor FelCor shall, and
neither FelCor LP nor FelCor shall permit any of their respective Restricted
Subsidiaries to, create or otherwise cause or suffer to exist or become
effective any consensual encumbrance or restriction of any kind on the ability
of any Restricted Subsidiary to:

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

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

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

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

     The foregoing provisions shall not restrict any encumbrances or
restrictions:

     (i) existing on the Closing Date in this Indenture, the Line of
Credit, and any other agreement in effect on the Closing Date to the
extent listed on Schedule A to this Indenture, and any extensions,
refinancings, renewals or replacements of such agreements; provided that
the encumbrances and restrictions in any such extensions, refinancings,
renewals or replacements are no less favorable in any material respect to
the Holders than those encumbrances or restrictions that are then in
effect and that are being extended, refinanced, renewed or replaced;

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

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

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

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

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

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

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

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

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     (A) the encumbrance or restriction applies only in the event
of a payment default or a default with respect to a financial
covenant contained in such Indebtedness or agreement,

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

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

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

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

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

     SECTION 4.06. Limitation on the Issuance and Sale of Capital Stock of
Restricted Subsidiaries. Neither FelCor LP nor FelCor shall sell, and neither
FelCor LP nor FelCor shall permit any of their respective Restricted
Subsidiaries, directly or indirectly, to issue or sell, any shares of Capital
Stock of a Restricted Subsidiary (including options, warrants or other rights
to purchase shares of such Capital Stock) except:

     (i) to FelCor LP, FelCor or a Wholly Owned Restricted Subsidiary;

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

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

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

     SECTION 4.07. Limitation on Issuances of Guarantees by Restricted
Subsidiaries. Neither FelCor LP nor FelCor will permit any of their respective
Restricted Subsidiaries, directly or indirectly, to Guarantee any Indebtedness
of FelCor LP or FelCor which is pari passu with or subordinate in right of
payment to the Notes (“Guaranteed Indebtedness”), unless:

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

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

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

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

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

     SECTION 4.08. Limitation on Transactions with Affiliates. Neither FelCor
LP nor FelCor shall, and neither FelCor LP nor FelCor shall permit any of their
respective Restricted Subsidiaries to, directly or indirectly, enter into,
renew or extend any transaction (including, without limitations, the purchase,
sale, lease or exchange of property or assets, or the rendering of any service)
with any holder (or any Affiliate of such holder) of 5% or more of any class of
Capital Stock of FelCor LP or FelCor or with any Affiliate of FelCor LP or
FelCor or any of their respective Restricted Subsidiaries, except upon fair and
reasonable terms no less favorable to FelCor LP, FelCor or such Restricted
Subsidiary than could be obtained, at the time of such transaction or, if such
transaction is pursuant to a written agreement, at the time of the execution of the
agreement providing therefor, in a comparable arm’s-length transaction with a
Person that is not such a holder or an Affiliate.

     The foregoing limitation shall not limit, and shall not apply to: (i)
transactions (A) approved by a majority of the independent directors of FelCor
or (B) for which FelCor LP, FelCor or any Restricted Subsidiary delivers to the
Trustee a written opinion of a nationally recognized investment banking firm
stating that the transaction is fair to FelCor LP, FelCor or such Restricted
Subsidiary from a financial point of view; (ii) any transaction solely between
FelCor LP or FelCor and any of their respective Wholly Owned Restricted
Subsidiaries or solely between Wholly Owned Restricted Subsidiaries; (iii) the
payment of reasonable and customary fees and expenses to directors of FelCor
who are not employees of FelCor; (iv) any payments or other transactions
pursuant to any tax-sharing agreement between FelCor LP or FelCor and any other
Person with which FelCor LP or FelCor files a consolidated tax return or with
which FelCor LP or FelCor is part of a consolidated group for tax purposes; or
(v) any Restricted Payments not prohibited by Section 4.04. Notwithstanding
the foregoing, any transaction or series of related transactions covered by the
first paragraph of this Section 4.08 and not covered by clauses (ii) through
(v) of this paragraph, (a) the aggregate amount of which exceeds $2 million in
value, must be approved or determined to be fair in the manner provided for in
clause (i)(A) or (B) above, and (b) the aggregate amount of which exceeds $5
million in value, must be determined to be fair in the manner provided for in
clause (i)(B) above.

     SECTION 4.09. Limitation on Liens. Neither FelCor LP nor FelCor shall
secure any Indebtedness under the Line of Credit by a Lien unless
contemporaneously therewith effective provision is made to secure the Notes
equally and ratably with the Indebtedness under the Line of Credit for so long
as the Indebtedness under the Line of Credit is secured by such Lien.

     SECTION 4.10. Limitation on Asset Sales. Neither FelCor LP nor FelCor
shall, and neither FelCor LP or FelCor shall permit any of their respective
Restricted Subsidiaries to, consummate any Asset Sale, unless:

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

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

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     In the event and to the extent that the Net Cash Proceeds received by FelCor LP, FelCor or such Restricted Subsidiary from one or more Asset Sales occurring on or after the Closing Date in any period of 12 consecutive months exceed 10% of Adjusted Consolidated Net Tangible Assets (determined as of the date closest to the commencement of such 12-month period for which a consolidated balance sheet of FelCor LP, FelCor and their respective Restricted Subsidiaries has been filed with the Commission or provided to the Trustee pursuant to Section 4.17), then FelCor LP or FelCor shall or shall cause the relevant Restricted Subsidiary to:

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

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

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

     (ii)
apply (no later than the end of the 12-month period referred to in clause (i)) such excess
Net Cash Proceeds (to the extent not applied pursuant to clause (i)) as provided in the
following paragraph of this Section 4.10.

     The amount of such excess Net Cash Proceeds required to be applied (or to be committed to be applied) during such 12-month period as set forth in clause (i) of the preceding sentence and not applied as so required by the end of such period shall constitute “Excess Proceeds.” If, as of the first day of any calendar month, the aggregate amount of Excess Proceeds not previously subject to an Offer to Purchase pursuant to this Section 4.10 totals at least $10 million, FelCor LP shall commence, not later than the fifteenth Business Day of such month, and consummate an Offer to Purchase from the Holders on a pro rata basis an aggregate principal amount of Notes equal to the Excess Proceeds on such date, at a purchase price equal to 100% of the principal amount of the Notes, plus, in each case, accrued interest (if any) to the Payment Date.

     SECTION 4.11. Repurchase of Notes
upon a Change of Control. FelCor LP shall commence, within 30 days of the
occurrence of a Change of Control, and consummate an Offer to Purchase for all
Notes then outstanding, at a purchase price equal to 101% of the principal
amount thereof, plus accrued and unpaid interest, if any, to the Payment Date.

     SECTION 4.12. Existence. Subject to Articles IV and V of this Indenture,
FelCor LP and the Guarantors shall do or cause to be done all things necessary
to preserve and keep in full force and effect their existence and the existence
of each Restricted Subsidiary in accordance with the respective organizational
documents of FelCor LP, the Guarantors and each Restricted Subsidiary and the
rights (whether pursuant to charter, partnership certificate, agreement,
statute or otherwise), material licenses and franchises of FelCor LP, the
Guarantors and each Restricted Subsidiary; provided that neither FelCor nor
FelCor LP shall be required to preserve any such right, license or franchise,
or the existence of any Restricted Subsidiary or Subsidiary Guarantor, if the
maintenance or preservation thereof is no longer desirable in the conduct of
the business of FelCor LP, the Guarantors and their Restricted Subsidiaries
taken as a whole.

     SECTION 4.13. Payment of Taxes and Other Claims. FelCor and FelCor LP
shall pay or discharge and shall cause each of their respective Restricted
Subsidiaries to pay or discharge, or cause to be paid or discharged,

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before the same shall become delinquent (i) all material taxes, assessments and
governmental charges levied or imposed upon (a) FelCor and FelCor LP or any
such Restricted Subsidiary, (b) the income or profits of any such Restricted
Subsidiary which is a corporation or (c) the property of FelCor, FelCor LP or
any such Restricted Subsidiaries and (ii) all material lawful claims for labor,
materials and supplies that, if unpaid, might by law become a lien upon the
property of FelCor, FelCor LP or any such Restricted Subsidiary; provided that
FelCor and FelCor LP shall not be required to pay or discharge, or cause to be
paid or discharged, any such tax, assessment, charge or claim the amount,
applicability or validity of which is being contested in good faith by
appropriate proceedings and for which adequate reserves have been established.

     SECTION 4.14. Maintenance of Properties and Insurance. FelCor and FelCor
LP shall cause all properties used or useful in the conduct of their business
or the business of any of their Restricted Subsidiaries, to be maintained and
kept in good condition, repair and working order and supplied with all
necessary equipment and shall cause to be made all necessary repairs,
renewals, replacements, betterments and improvements thereof, all as in the
judgment of FelCor or FelCor LP may be necessary so that the business carried
on in connection therewith may be properly conducted at all times; provided
that nothing in this Section 4.14 shall prevent FelCor, FelCor LP or any such
Restricted Subsidiary from discontinuing the use, operation or maintenance of
any of such properties or disposing of any of them, if such discontinuance or
disposal is, in the judgment of FelCor, FelCor LP, desirable in the conduct of
the business of FelCor, FelCor LP or such Restricted Subsidiary.

     Each of FelCor and FelCor LP shall provide or cause to be provided, for
itself and its Restricted Subsidiaries, insurance (including appropriate
self-insurance) against loss or damage of the kinds customarily insured against
by corporations similarly situated and owning like properties, with reputable
insurers or with the government of the United States of America, or an agency
or instrumentality thereof, in such amounts, with such deductibles and by such
methods as shall be customary for corporations similarly situated in the
industry in which FelCor, FelCor LP or such Restricted Subsidiary, as the case
may be, is then conducting business.

     SECTION 4.15. Notice of Defaults. In the event that FelCor LP becomes
aware of any Default or Event of Default, FelCor LP, promptly after it becomes
aware thereof, shall give written notice thereof to the Trustee.

     SECTION 4.16. Compliance Certificates. FelCor and FelCor LP shall deliver to the Trustee, within 45 days
after the end of each fiscal quarter (90 days after the end of the last fiscal
quarter of each year), an Officers’ Certificate stating whether or not the
signers know of any Default or Event of Default that occurred during such
fiscal quarter. In the case of the Officers’ Certificate delivered within 90
days of the end of FelCor’s and FelCor LP’s fiscal year, such certificate shall
contain a certification from the principal executive officer, principal
financial officer or principal accounting officer that a review has been
conducted of the activities of FelCor and FelCor LP and their Restricted
Subsidiaries and FelCor’s and FelCor LP’s and their Restricted Subsidiaries’
performance under this Indenture and that, to the knowledge of such Officers,
FelCor and FelCor LP have complied with all conditions and covenants under this
Indenture. For purposes of this Section 4.16, such compliance shall be
determined without regard to any period of grace or requirement of notice
provided under this Indenture. If they do know of such a Default or Event of
Default, the certificate shall describe any such Default or Event of Default
and its status. The first certificate to be delivered pursuant to this Section
4.16(a) shall be for the first fiscal quarter beginning after the execution of
this Indenture.

     (b) So long as (and to the extent) not prohibited by the then current
recommendations of the American Institute of Certified Public Accountants,
FelCor and FelCor LP shall deliver to the Trustee, within 90 days after the end
of FelCor’s and FelCor LP’s fiscal year, a certificate signed by FelCor’s and
FelCor LP’s independent certified public accountants stating (i) that their
audit examination has included a review of the terms of this Indenture and the
Notes as they relate to accounting matters, (ii) that they have read the most
recent Officers’ Certificate delivered to the Trustee pursuant to paragraph (a)
of this Section 4.16 and (iii) whether, in connection with their audit
examination, anything came to their attention that caused them to believe that
FelCor and FelCor LP were not in compliance with any of the terms, covenants,
provisions or conditions of Article Four and Section 5.01 of this Indenture as
they pertain to accounting matters and, if any Default or Event of Default has
come to their attention, specifying the nature and period of existence thereof;
provided that such independent certified public accountants shall not be li-

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able in respect of such statement by reason of any failure to obtain knowledge of
any such Default or Event of Default that would not be disclosed in the course
of an audit examination conducted in accordance with generally accepted
auditing standards in effect at the date of such examination.

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

     SECTION 4.17. Commission Reports and Reports to Holders. At all times
from and after the date of this Indenture, whether or not FelCor or FelCor LP
is then required to file reports with the Commission, FelCor and FelCor LP
shall file with the Commission all such reports and other information as they
would be required to file with the Commission by Sections 13(a) or 15(d) under
the Exchange Act if they were subject thereto; provided that, if filing such
documents by FelCor LP or FelCor with the Commission is not permitted under the
Exchange Act, FelCor LP or FelCor shall provide such documents to the Trustee
and upon written request supply copies of such documents to any prospective
Holder; provided, further, that if the rules and regulations of the Commission
permit FelCor LP and FelCor to file combined reports or information pursuant to
the Exchange Act, FelCor LP and FelCor may file combined reports and
information. FelCor LP and FelCor shall supply the Trustee and each Holder or
shall supply to the Trustee for forwarding to each such Holder, without cost to
such Holder, copies of such reports and other information. Delivery of such
reports, information and documents to the Trustee is for informational purposes
only and the Trustee’s receipt of such shall not constitute constructive notice
of any information contained therein or determinable from information contained
therein, including FelCor or FelCor LP’s compliance with any of their covenants
hereunder (as to which the Trustee is entitled to rely exclusively on Officers’
Certificates). In addition, upon the request of any Holder or any prospective
purchaser of the Notes designated by a Holder, FelCor LP shall supply to such
Holder or such prospective purchaser the information required under Rule 144A
under the Securities Act. FelCor LP also shall comply with the other
provisions of TIA Section 314(a).

     SECTION 4.18. Waiver of Stay, Extension or Usury Laws. FelCor LP covenants (to the extent that it may lawfully do so) that it
shall not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law or any usury law
or other law that would prohibit or forgive FelCor LP from paying all or any
portion of the principal of, premium, if any, or interest on the Notes as
contemplated herein, wherever enacted, now or at any time hereafter in force,
or that may affect the covenants or the performance of this Indenture; and (to
the extent that it may lawfully do so) FelCor LP hereby expressly waives all
benefit or advantage of any such law and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
had been enacted.

     SECTION 4.19. Limitation on Sale-Leaseback Transactions. Neither FelCor
LP nor FelCor shall, and neither FelCor LP nor FelCor shall permit any of their
respective Restricted Subsidiaries to, enter into any sale-leaseback
transaction involving any of its assets or properties whether now owned or
hereafter acquired, whereby any of them sells or transfers such assets or
properties and then or thereafter leases such assets or properties or any
substantial part thereof.

     The foregoing restriction shall not apply to any sale-leaseback
transaction if:

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

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

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

     (iv) FelCor LP or FelCor or any of their respective Restricted
Subsidiaries, within 12 months after the sale or transfer of any assets
or properties is completed, applies an amount not less than the net
pro-

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ceeds received from such sale in accordance with clause (i)(A) or (B)
of the second paragraph of Section 4.10.

     SECTION 4.20. Maintenance of Total Unencumbered Assets. FelCor LP, FelCor
and their respective Restricted Subsidiaries shall maintain Total Unencumbered
Assets of not less than 150% of the aggregate outstanding principal amount of
the Unsecured Indebtedness of FelCor LP, FelCor and their respective Restricted
Subsidiaries on a consolidated basis.

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

ARTICLE V

SUCCESSOR CORPORATION

     SECTION 5.01. Consolidation, Merger and Sale of Assets. Neither FelCor LP
nor FelCor will merge with or into, or sell, convey, transfer, lease or
otherwise dispose of all or substantially all of its property and assets (as an
entirety or substantially an entirety in one transaction or a series of related
transactions) to, any Person or permit any Person to merge with or into FelCor
LP or FelCor unless:

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

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

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

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

     SECTION 5.02. Successor Substituted. Upon any consolidation or merger, or
any sale, conveyance, transfer, lease or other disposition of all or
substantially all of the property and assets of FelCor LP in accordance with
Section 5.01 of this Indenture, the successor Person formed by such
consolidation or into which FelCor LP is merged or to which such sale,
conveyance, transfer, lease or other disposition is made shall succeed to, and
be substituted for, and may exercise every right and power of, FelCor LP under
this Indenture with the same effect as if

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such successor Person had been named as FelCor LP herein and thereafter the predecessor corporation shall be
relieved of all obligations and covenants under this Indenture and the Notes;
provided that FelCor LP shall not be released from its obligation to pay the
principal of, premium, if any, or interest on the Notes in the case of a lease
of all or substantially all of its property and assets.

ARTICLE VI

DEFAULT AND REMEDIES

     SECTION 6.01. Events of Default. An “Event of Default” shall occur with
respect to this Indenture if:

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

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

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

     (d) FelCor LP or FelCor defaults in the performance of or breaches any
other covenant or agreement of FelCor LP or FelCor in this Indenture or under
the Notes (other than a default specified in clause (a), (b) or (c) above) and
such default or breach continues for a period of 30 consecutive days after
written notice by the Trustee or the Holders of 25% or more in aggregate
principal amount of the Notes;

     (e) there occurs with respect to any issue or issues of Indebtedness of
FelCor LP or FelCor or any Significant Subsidiary having an outstanding
principal amount of $10 million or more in the aggregate for all such issues of
all such Persons, whether such Indebtedness now exists or shall hereafter be
created,

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

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

     (f) any final judgment or order (not covered by insurance) for the payment
of money in excess of $10 million in the aggregate for all such final judgments
or orders against all such Persons (treating any deductibles, self-insurance or
retention as not covered by insurance):

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

     (ii) there shall be any period of 60 consecutive days
following entry of the final judgment or order that causes the
aggregate amount for all such final judgments or orders outstanding
and not paid or discharged against all such Persons to exceed $10
million during which a stay of enforcement of such final judgment
or order, by reason of a pending appeal or otherwise, shall not be
in effect;

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

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

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

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

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

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

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

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

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

     SECTION 6.02. Acceleration. If an Event of Default (other than an Event
of Default specified in clause (g) or (h) of Section 6.01 that occurs with
respect to FelCor LP or FelCor) occurs and is continuing under this Indenture,
the Trustee or the Holders of at least 25% in aggregate principal amount of the
Notes then outstanding, by written notice to FelCor LP and FelCor (and to the
Trustee if such notice is given by the Holders), may, and the Trustee at the
request of such Holders shall, declare the principal of, premium, if any, and
accrued interest on the Notes to be immediately due and payable. Upon a
declaration of acceleration, such principal of, premium, if any, and accrued
interest shall be immediately due and payable. In the event of a declaration
of acceleration because an Event of Default set forth in clause (e) of Section
6.01 has occurred and is continuing, such declaration of acceleration shall be
automatically rescinded and annulled if the event of default triggering such
Event of Default pursuant to such clause (e) shall be remedied or cured by
FelCor LP, FelCor or the relevant Significant Subsidiary or waived by the
holders of the relevant Indebtedness within 60 days after the declaration of
acceleration with respect thereto.

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

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

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

     SECTION 6.03. Other Remedies. If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy by proceeding at law or
in equity to collect the payment of principal of, premium, if any, or interest
on the Notes or to enforce the performance of any provision of the Notes or
this Indenture.

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

     SECTION 6.04. Waiver of Past Defaults. Subject to Sections 6.02, 6.07 and 9.02, the Holders of at least a
majority in principal amount of the outstanding Notes, by notice to the
Trustee, may waive an existing Default or Event of Default and its
consequences, except a Default in the payment of principal of, premium, if any,
or interest on any Note as specified in clause (a) or (b) of Section 6.01 or in
respect of a covenant or provision of this Indenture which cannot be modified
or amended without the consent of the Holder of each outstanding Note affected.
Upon any such waiver, such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
Default or Event of Default or impair any right consequent thereto.

     SECTION 6.05. Control by Majority. The Holders of at least a majority in
aggregate principal amount at maturity of the outstanding Notes may direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee or exercising any trust or power conferred on the Trustee.
However, the Trustee may refuse to follow any direction that conflicts with law
or this Indenture, that may involve the Trustee in personal liability, or that
the Trustee determines in good faith may be unduly prejudicial to the rights of
Holders of Notes not joining in the giving of such direction and may take any
other action it deems proper that is not inconsistent with any such direction
received from Holders of Notes.

     SECTION 6.06. Limitation on Suits. A Holder may not institute any
proceeding, judicial or otherwise, with respect to this Indenture or the Notes,
or for the appointment of a receiver or trustee, or for any other remedy
hereunder unless:

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

     (2) the Holders of at least 25% in aggregate principal amount at
maturity of outstanding Notes shall have made a written request to the
Trustee to institute proceedings in respect of such Event of Default in
its own name as Trustee hereunder;

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

     (4) the Trustee does not comply with the request within 60 days
after receipt of the request and the offer of indemnity and has failed to
institute any such proceedings; and

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

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

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

     SECTION 6.07. Rights of Holders To Receive Payment. Notwithstanding any other provision of this Indenture, the right of any
Holder of a Note to receive payment of the principal of, premium, if any, or
interest on, such Note or to bring suit for the enforcement of any such payment
on or after the due date expressed in the Notes, shall not be impaired or
affected without the consent of such Holder.

     SECTION 6.08. Collection Suit by Trustee. If an Event of Default in
payment of principal, premium or interest specified in clause (a), (b) or (c)
of Section 6.01 occurs and is continuing, the Trustee may recover judgment in
its own name and as trustee of an express trust against FelCor LP, the
Guarantors or any other obligor of the Notes for the whole amount of principal,
premium, if any, and accrued interest remaining unpaid, together with interest
on overdue principal, premium, if any, and, to the extent that payment of such
interest is lawful, interest on overdue installments of interest, in each case
at the rate specified in the Notes, and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

     SECTION 6.09. Trustee May File Proofs of Claim. The Trustee may file such
proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section
7.07) and the Holders allowed in any judicial proceedings relative to FelCor LP
(or any other obligor of the Notes), its creditors or its property and shall be
entitled and empowered to collect and receive any monies, securities or other
property payable or deliverable upon conversion or exchange of the Notes or
upon any such claims and to distribute the same, and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agent and counsel, and any other amounts due the
Trustee under Section 7.07. Nothing herein contained shall be deemed to
empower the Trustee to authorize or consent to, or accept or adopt on behalf of
any Holder, any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder thereof, or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.

     SECTION 6.10. Priorities. If the Trustee collects any money pursuant to
this Article Six, it shall pay out the money in the following order:

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

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

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

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

     SECTION 6.11. Undertaking for Costs. In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court may require any party litigant in such suit to file an
undertaking to pay the costs of the suit, and the court may assess reasonable
costs, including reasonable attorneys’ fees, against any party litigant in the
suit having due regard to the merits and

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good faith of the claims or defenses
made by the party litigant. This Section 6.11 does not apply to a suit by the
Trustee, a suit by a Holder pursuant to Section 6.07 of this Indenture, or a
suit by Holders of more than 10% in principal amount of the outstanding Notes.

     SECTION 6.12. Restoration of Rights and Remedies. If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder,
then, and in every such case, subject to any determination in such proceeding,
FelCor LP, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and
remedies of FelCor LP, the Guarantors, Trustee and the Holders shall continue
as though no such proceeding had been instituted.

     SECTION 6.13. Rights and Remedies Cumulative. Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed,
lost or wrongfully taken Notes in Section 2.09, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

     SECTION 6.14. Delay or Omission Not Waiver. No delay or omission of the
Trustee or of any Holder to exercise any right or remedy accruing upon any
Event of Default shall impair any such right or remedy or constitute a waiver
of any such Event of Default or an acquiescence therein. Every right and
remedy given by this Article Six or by law to the Trustee or to the Holders may
be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

ARTICLE VII

TRUSTEE

     SECTION 7.01. General. The duties and responsibilities of the Trustee
shall be as provided by the TIA and as set forth herein. Notwithstanding the
foregoing, no provision of this Indenture shall require the Trustee to expend
or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it. The Trustee shall not be required to give any
bond or surety with respect to the performance of its duties or the exercise of
its powers under this Indenture. Whether or not therein expressly so provided,
every provision of this Indenture relating to the conduct or affecting the
liability of or affording protection to the Trustee shall be subject to the
provisions of this Article Seven.

     SECTION 7.02. Certain Rights of Trustee. Subject to TIA Sections 315(a)
through (d):

     (1) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or
other paper or document believed by it to be genuine and to have
been signed or presented by the proper person. The Trustee need
not investigate any fact or matter stated in the document;

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

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

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

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

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

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

     SECTION 7.03. Individual Rights of Trustee. The Trustee, in its
individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with FelCor LP, the Guarantors, or their Affiliates with the
same rights it would have if it were not the Trustee. Any Agent may do the
same with like rights. However, the Trustee is subject to TIA Sections 310(b)
and 311.

     SECTION 7.04. Trustee’s Disclaimer. The Trustee (i) makes no
representation as to the validity or adequacy of this Indenture or the Notes,
(ii) shall not be accountable for FelCor LP’s use or application of the
proceeds from the Notes, (iii) shall not be responsible for any statement in
the Notes other than its certificate of authentication and (iv) shall have no
responsibility for any information or statements contained in any offering or
other disclosure documents prepared in connection with the offering and the sale of the Notes other than the information
provided by the Trustee to FelCor or FelCor LP.

     SECTION 7.05. Notice of Default. If any Default or any Event of Default
occurs and is continuing and if such Default or Event of Default is known to a
Responsible Officer of the Trustee, the Trustee shall mail to each Holder in
the manner and to the extent provided in TIA Section 313(c) notice of the
Default or Event of Default within 45 days after it occurs, unless such Default
or Event of Default has been cured; provided, however, that, except in the case
of a default in the payment of the principal of, premium, if any, or interest
on any Note, the Trustee shall be protected in withholding such notice if and
so long as the board of directors, the executive committee or a trust committee
of directors and/or Responsible Officers of the Trustee in good faith determine
that the withholding of such notice is in the interest of the Holders.

     SECTION 7.06. Reports by Trustee to Holders. Within 60 days after each
May 15, beginning with May 15, 2005, the Trustee shall mail to each Holder as
provided in TIA Section 313(c) a brief report dated as of such May 15 but only
if required by TIA Section 313(a).

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     SECTION 7.07. Compensation and Indemnity. FelCor LP shall pay to the
Trustee such compensation as shall be agreed upon in writing for its services.
The compensation of the Trustee shall not be limited by any law on compensation
of a trustee of an express trust. FelCor LP shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses and advances incurred or made
by the Trustee. Such expenses shall include the reasonable compensation and
expenses of the Trustee’s agents and counsel.

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

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

     If the Trustee incurs expenses or renders services after the occurrence
of an Event of Default specified in clause (g) or (h) of Section 6.01, the
expenses and the compensation for the services will be intended to constitute
expenses of administration under Title 11 of the United States Bankruptcy Code
or any applicable federal or state law for the relief of debtors.

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

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

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

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

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

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

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

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

     SECTION 7.09. Successor Trustee by Merger, Etc. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation or national banking
association, the resulting, surviving or transferee corporation or national banking association without any further act shall be
the successor Trustee with the same effect as if the successor Trustee had been
named as the Trustee herein.

     SECTION 7.10. Eligibility. This Indenture shall always have a Trustee who
satisfies the requirements of TIA Section 310(a)(1). The Trustee shall have a
combined capital and surplus of at least $25,000,000 as set forth in its most
recent filed annual report of condition.

     SECTION 7.11. Money Held in Trust. The Trustee shall not be liable for
interest on any money received by it except as the Trustee may agree with
FelCor LP. Money held in trust by the Trustee need not be segregated from
other funds except to the extent required by law and except for money held in
trust under Article Eight of this Indenture.

     SECTION 7.12. Withholding Taxes. The Trustee, as agent for FelCor LP,
shall exclude and withhold from each payment of principal and interest and
other amounts due hereunder or under the Notes any and all withholding taxes
applicable thereto as required by law. The Trustee agrees to act as such
withholding agent and, in connection therewith, whenever any present or future
taxes or similar charges are required to be withheld with respect to any
amounts payable in respect of the Notes, to withhold such amounts and timely
pay the same to the appropriate authority in the name of and on behalf of the
Holders of the Notes, that it will file any necessary withholding tax returns
or statements when due. FelCor LP or the Trustee shall, as promptly as
possible after the payment of the taxes described above, deliver to each Holder
of a Note appropriate documentation showing the payment thereof, together with
such additional documentary evidence as such Holders may reasonably request
from time to time.

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ARTICLE VIII

DISCHARGE OF INDENTURE

     SECTION 8.01. Termination of Company’s Obligations. Except as otherwise
provided in this Section 8.01, FelCor LP may terminate its obligations under
the Notes and this Indenture if:

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

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

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

     SECTION 8.02. Defeasance and Discharge of Indenture. FelCor LP and the
Guarantors will be deemed to have paid and will be discharged from any and all
obligations in respect of the Notes or any Guarantee pursuant to Article 11 on
the 123rd day after the date of the deposit referred to in clause (A) of this
Section 8.02, and the provisions of this Indenture will no longer be in effect
with respect to the Notes, and the Trustee, at the expense of FelCor LP, shall
execute proper instruments acknowledging the same; provided that the following
conditions shall have been satisfied:

     (A) with reference to this Section 8.02, FelCor LP has
deposited or caused to be deposited with the Trustee (or another
trustee satisfying the requirements of Section 7.10 of this
Indenture) and conveyed all right, title and interest for the
benefit of the Holders, under the terms of a trust agreement in
form and substance satisfactory to the Trustee as trust funds in
trust, specifically pledged to the Trustee for the benefit of the
Holders as security for payment of the principal of, premium, if
any, and interest, if any, on the Notes, and dedicated solely to,
the benefit of the Holders, in and to (1) money in an amount, (2)
U.S. Government Obligations that, through the payment of interest,
premium, if any, and principal in respect thereof in accordance
with their terms, will provide, not later than one day before the
due date of any payment referred to in this

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clause (A), money in an
amount or (3) a combination thereof in an amount sufficient, in the
opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered
to the Trustee, to pay and discharge, without consideration of the
reinvestment of such interest and after payment of all federal,
state and local taxes or other charges and assessments in respect
thereof payable by the Trustee, the principal of, premium, if any,
and accrued interest on the outstanding Notes at the Stated
Maturity of such principal or interest; provided that the Trustee
shall have been irrevocably instructed to apply such money or the
proceeds of such U.S. Government Obligations to the payment of such
principal, premium, if any, and interest with respect to the Notes;

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

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

     (D) FelCor LP shall have delivered to the Trustee (1) either
(x) a ruling directed to the Trustee received from the Internal
Revenue Service to the effect that the Holders will not recognize
income, gain or loss for federal income tax purposes as a result of
FelCor LP’s exercise of its option under this Section 8.02 and will
be subject to federal income tax on the same amount and in the same manner and at the same times as would have
been the case if such option had not been exercised or (y) an
Opinion of Counsel to the same effect as the ruling described in
clause (x) above accompanied by a ruling to that effect published
by the Internal Revenue Service, unless there has been a change in
the applicable federal income tax law since the date of this
Indenture such that a ruling from the Internal Revenue Service is
no longer required and (2) an Opinion of Counsel to the effect that
(x) the creation of the defeasance trust does not violate the
Investment Company Act of 1940 and (y) after the passage of 123
days following the deposit (except, with respect to any trust funds
for the account of any Holder who may be deemed to be an “insider”
for purposes of the United States Bankruptcy Code, after one year
following the deposit), the trust funds will not be subject to the
effect of Section 547 of the United States Bankruptcy Code or
Section 15 of the New York Debtor and Creditor Law in a case
commenced by or against FelCor LP or a Guarantor under either such
statute, and either (I) the trust funds will no longer remain the
property of FelCor LP or a Guarantor (and therefore will not be
subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights
generally) or (II) if a court were to rule under any such law in
any case or proceeding that the trust funds remained property of
FelCor LP or a Guarantor, (a) assuming such trust funds remained in
the possession of the Trustee prior to such court ruling to the
extent not paid to the Holders, the Trustee will hold, for the
benefit of the Holders, a valid and perfected security interest in
such trust funds that is not avoidable in bankruptcy or otherwise
except for the effect of Section 552(b) of the United States
Bankruptcy Code on interest on the trust funds accruing after the
commencement of a case under such statute and (b) the Holders will
be entitled to receive adequate protection of their interests in
such trust funds if such trust funds are used in such case or
proceeding;

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

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

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     Notwithstanding the foregoing, prior to the end of the 123-day (or one
year) period referred to in clause (D)(2)(y) of this Section 8.02, none of
FelCor LP’s obligations under this Indenture shall be discharged. Subsequent
to the end of such 123-day (or one year) period with respect to this Section
8.02, FelCor LP’s obligations in Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07,
2.08, 2.09, 2.14, 4.01, 4.02, 7.07, 7.08, 8.05 and 8.06 shall survive until the
Notes are no longer outstanding. Thereafter, only FelCor LP’s obligations in
Sections 7.07, 8.05 and 8.06 shall survive. If and when a ruling from the
Internal Revenue Service or an Opinion of Counsel referred to in clause (D)(1)
of this Section 8.02 is able to be provided specifically without regard to, and
not in reliance upon, the continuance of FelCor LP’s obligations under Section
4.01, then FelCor LP’s obligations under such Section 4.01 shall cease upon
delivery to the Trustee of such ruling or Opinion of Counsel and compliance
with the other conditions precedent provided for herein relating to the
defeasance contemplated by this Section 8.02.

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

     SECTION 8.03. Defeasance of Certain Obligations. FelCor LP may omit to
comply with any term, provision or condition set forth in clause (iii) under
Section 5.01 and Sections 4.03 through 4.17 and Sections 4.19 and 4.20, clauses
(c) and (d) under Section 6.01 with respect to such clause (iii) under Section
5.01 and Sections 4.03 through 4.17 and Sections 4.19 and 4.20, and clauses (e)
and (f) under Section 6.01 shall be deemed not to be Events of Default, in each
case with respect to the outstanding Notes if:

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

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

     (iii) no Default or Event of Default shall have occurred and be
continuing on the date of such deposit;

     (iv) FelCor LP has delivered to the Trustee an Opinion of Counsel to
the effect that (A) the creation of the defeasance trust does not violate
the Investment Company Act of 1940, (B) the Holders have a valid
first-priority security interest in the trust funds, (C) the Holders will
not recognize income, gain or loss for federal income tax purposes as a
result of such deposit and defeasance of certain obligations and will be
subject to federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit and
defeasance had not occurred and (D) after the passage of 123 days
following the deposit (except, with respect to any trust funds for the
account of any Holder who may be deemed to be an “insider” for purposes
of the United States Bankruptcy Code, after one year following

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the deposit), the trust funds will not be subject to the effect of Section
547 of the United States Bankruptcy Code or Section 15 of the New York
Debtor and Creditor Law in a case commenced by or against FelCor LP under
either such statute, and either (1) the trust funds will no longer remain
the property of FelCor LP or a Guarantor (and therefore will not be
subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally) or
(2) if a court were to rule under any such law in any case or proceeding
that the trust funds remained property of FelCor LP or a Guarantor, (x)
assuming such trust funds remained in the possession of the Trustee prior
to such court ruling to the extent not paid to the Holders, the Trustee
will hold, for the benefit of the Holders, a valid and perfected security
interest in such trust funds that is not avoidable in bankruptcy or
otherwise (except for the effect of Section 552(b) of the United States
Bankruptcy Code on interest on the trust funds accruing after the
commencement of a case under such statute), (y) the Holders will be
entitled to receive adequate protection of their interests in such trust
funds if such trust funds are used in such case or proceeding and (z) no
property, rights in property or other interests granted to the Trustee or
the Holders in exchange for, or with respect to, such trust funds will be
subject to any prior rights of holders of other Indebtedness of FelCor
LP, FelCor or any of their Subsidiaries;

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

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

     SECTION 8.04. Application of Trust Money. Subject to Section 8.06, the
Trustee or Paying Agent shall hold in trust money or U.S. Government
Obligations deposited with it pursuant to Section 8.01, 8.02 or 8.03, as the
case may be, and shall apply the deposited money and the money from U.S.
Government Obligations in accordance with the Notes and this Indenture to the
payment of principal of, premium, if any, and interest on the Notes; but such
money need not be segregated from other funds except to the extent required by
law.

     SECTION 8.05. Repayment to Company. Subject to Sections 7.07, 8.01, 8.02
and 8.03, the Trustee and the Paying Agent shall promptly pay to FelCor LP upon
request set forth in an Officers’ Certificate any excess money held by them at
any time and thereupon shall be relieved from all liability with respect to
such money. The Trustee and the Paying Agent shall pay to FelCor LP upon
request any money held by them for the payment of principal, premium, if any,
or interest that remains unclaimed for two years; provided that the Trustee or
such Paying Agent before being required to make any payment may cause to be
published at the expense of FelCor LP once in a newspaper of general
circulation in the City of New York or mail to each Holder entitled to such
money at such Holder’s address (as set forth in the Note Register) notice that
such money remains unclaimed and that after a date specified therein (which
shall be at least 30 days from the date of such publication or mailing) any
unclaimed balance of such money then remaining will be repaid to FelCor LP.
After payment to FelCor LP, Holders entitled to such money must look to FelCor
LP for payment as general creditors unless an applicable law designates another
Person, and all liability of the Trustee and such Paying Agent with respect to
such money shall cease.

     SECTION 8.06. Reinstatement. If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Obligations in accordance with Section 8.01,
8.02 or 8.03, as the case may be, by reason of any legal proceeding or by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, FelCor LP’s
obligations under this Indenture and the Notes shall be revived and reinstated
as though no deposit had occurred pursuant to Section 8.01, 8.02 or 8.03, as
the case may be, until such time as the Trustee or Paying Agent is permitted to
apply all such money or U.S. Government Obligations in accordance with Section
8.01, 8.02 or 8.03, as the case may be; provided that, if FelCor LP has made
any payment of principal of, premium, if any, or interest on any Notes because
of the reinstatement of its obligations, FelCor LP shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money or
U.S. Government Obligations held by the Trustee or Paying Agent.

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ARTICLE IX

AMENDMENTS, SUPPLEMENTS AND WAIVERS

     SECTION 9.01. Without Consent of Holders. FelCor, FelCor LP and the
Subsidiary Guarantors when authorized by a resolution of their Board of
Directors, and the Trustee may amend or supplement this Indenture or the Notes
without notice to or the consent of any Holder:

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

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

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

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

     (5) to secure or Guarantee the Notes; or

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

     SECTION 9.02. With Consent of Holders. Subject to Sections 6.04 and 6.07
and without prior notice to the Holders, FelCor, FelCor LP and the Subsidiary
Guarantors, when authorized by their Board of Directors (as evidenced by a
Board Resolution), and the Trustee may amend this Indenture and the Notes with
the written consent of the Holders of a majority in aggregate principal amount
at maturity of the Notes then outstanding, and the Holders of a majority in
aggregate principal amount at maturity of the Notes then outstanding by written
notice to the Trustee may waive future compliance by FelCor or FelCor LP with
any provision of this Indenture or the Notes.

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

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

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

     (iii) change the place of payment of principal of, or premium, if
any, or interest on, any Note, or adversely affect any right of repayment
at the option of any Holder of any Note,

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

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

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

     (vii) voluntarily release a Guarantor of the Notes,

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

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

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

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

     SECTION 9.03. Revocation and Effect of Consent. Until an amendment or
waiver becomes effective, a consent to it by a Holder is a continuing consent
by the Holder and every subsequent Holder of a Note or portion of a Note that
evidences the same debt as the Note of the consenting Holder, even if notation
of the consent is not made on any Note. However, any such Holder or subsequent
Holder may revoke the consent as to its Note or portion of its Note. Such
revocation shall be effective only if the Trustee receives the notice of
revocation before the date the amendment, supplement or waiver becomes
effective. An amendment, supplement or waiver shall become effective on
receipt by the Trustee of written consents from the Holders of the requisite
percentage in principal amount of the outstanding Notes.

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

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

     SECTION 9.04. Notation on or Exchange of Notes. If an amendment,
supplement or waiver changes the terms of a Note, the Trustee may require the
Holder to deliver it to the Trustee. The Trustee may place an appropriate
notation on the Note about the changed terms and return it to the Holder and
the Trustee may place an appropriate notation on any Note thereafter
authenticated. Alternatively, if FelCor LP or the Trustee so determines,
FelCor LP in exchange for the Note shall issue and the Trustee shall
authenticate a new Note that reflects the changed terms.

     SECTION 9.05. Trustee To Sign Amendments, Etc. The Trustee shall be
entitled to receive, and shall be fully protected in relying upon, an Opinion
of Counsel stating that the execution of any amendment, supplement or waiver
authorized pursuant to this Article Nine is authorized or permitted by this
Indenture. Subject to the preceding sentence, the Trustee shall sign such
amendment, supplement or waiver if the same does not adversely affect the
rights of the Trustee. The Trustee may, but shall not be obligated to, execute
any such amendment, supplement or waiver that affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise.

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     SECTION 9.06. Conformity with Trust Indenture Act. Every supplemental indenture executed pursuant to this Article Nine
shall conform to the requirements of the TIA as then in effect.

ARTICLE X

MISCELLANEOUS

     SECTION 10.01. Trust Indenture Act of 1939. Prior to the effectiveness of
the Registration Statement, this Indenture shall incorporate and be governed by
the provisions of the TIA that are required to be part of and to govern
indentures qualified under the TIA. After the effectiveness of the
Registration Statement, this Indenture shall be subject to the provisions of
the TIA that are required to be a part of this Indenture and shall, to the
extent applicable, be governed by such provisions.

     SECTION 10.02. Notices. Any notice or communication shall be sufficiently
given if in writing and delivered in person or mailed by first class mail
addressed as follows:

     if to FelCor, FelCor LP or any Subsidiary Guarantor:

	 
	c/o FelCor Lodging Trust Incorporated

	545 East John Carpenter Freeway

	Suite 1300

	Irving, Texas 75062

	Attention: General Counsel

     if to the Trustee:

	 
	SunTrust Bank

	25 Park Place, 24th Floor

	Atlanta, Georgia 30303-2900

	Attention: Corporate Trust Department

     FelCor, FelCor LP or a Subsidiary Guarantor or the Trustee by notice to
the other may designate additional or different addresses for subsequent
notices or communications.

     Any notice or communication mailed to a Holder shall be mailed to him at
his address as it appears on the Note Register by first class mail and shall be
sufficiently given to him if so mailed within the time prescribed. Copies of
any such communication or notice to a Holder shall also be mailed to the
Trustee and each Agent at the same time.

     Failure to mail a notice or communication to a Holder or any defect in it
shall not affect its sufficiency with respect to other Holders. Except for a
notice to the Trustee, which is deemed given only when received, and except as
otherwise provided in this Indenture, if a notice or communication is mailed in
the manner provided in this Section 10.02, it is duly given, whether or not the
addressee receives it.

     Where this Indenture provides for notice in any manner, such notice may be
waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders shall be filed with the Trustee, but such filing
shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

     In case by reason of the suspension of regular mail service or by reason
of any other cause it shall be impracticable to give such notice by mail, then
such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.

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     SECTION 10.03. Certificate and Opinion as to Conditions Precedent. Upon
any request or application by FelCor LP to the Trustee to take any action under
this Indenture, FelCor LP shall furnish to the Trustee:

     (i) an Officers’ Certificate stating that, in the opinion of the
signers, all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with; and

     (ii) an Opinion of Counsel stating that, in the opinion of such
Counsel, all such conditions precedent have been complied with.

     SECTION 10.04. Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:

     (i) a statement that each person signing such certificate or opinion
has read such covenant or condition and the definitions herein relating
thereto;

     (ii) a brief statement as to the nature and scope of the examination
or investigation upon which the statement or opinion contained in such
certificate or opinion is based;

     (iii) a statement that, in the opinion of each such person, he has
made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or
condition has been complied with; and

     (iv) a statement as to whether or not, in the opinion of each such
person, such condition or covenant has been complied with; provided,
however, that, with respect to matters of fact, an Opinion of Counsel may
rely on an Officers’ Certificate or certificates of public officials.

     SECTION 10.05. Rules by Trustee, Paying Agent or Registrar. The Trustee
may make reasonable rules for action by or at a meeting of Holders. The Paying
Agent or Registrar may make reasonable rules for its functions.

     SECTION 10.06. Payment Date Other Than a Business Day. If an Interest
Payment Date, Redemption Date, Payment Date, Stated Maturity or date of
maturity of any Note shall not be a Business Day, then payment of principal of,
premium, if any, or interest on such Note, as the case may be, need not be made
on such date, but may be made on the next succeeding Business Day with the same
force and effect as if made on the Interest Payment Date, Payment Date, or
Redemption Date, or at the Stated Maturity or date of maturity of such Note;
provided that no interest shall accrue for the period from and after such
Interest Payment Date, Payment Date, Redemption Date, Stated Maturity or date
of maturity, as the case may be.

     SECTION 10.07. Governing Law. The laws of the State of New York shall
govern this Indenture and the Notes. The Trustee, FelCor LP and the Holders
agree to submit to the jurisdiction of the courts of the State of New York in
any action or proceeding arising out of or relating to this Indenture or the
Notes. Notwithstanding the foregoing, the situs of the trusts created hereunder shall be deemed to be the Corporate Trust Office at
which location the trusts shall be administered.

     SECTION 10.08. No Adverse Interpretation of Other Agreements. This
Indenture may not be used to interpret another indenture, loan or debt
agreement of FelCor LP, the Guarantors or any Subsidiary of any such Person.
Any such indenture, loan or debt agreement may not be used to interpret this
Indenture.

     SECTION 10.09. No Recourse Against Others. No recourse for the payment of
the principal of, premium, if any, or interest on any of the Notes, or for any
claim based thereon or otherwise in respect thereof, and no recourse under or
upon any obligation, covenant or agreement of FelCor LP or the Guarantors
contained in this Indenture, or in any of the Notes, or because of the creation
of any Indebtedness represented thereby, shall be had against any incorporator
or against any past, present or future limited partner, stockholder, other
equity holder (other than a general partner), officer, director, employee or
controlling person, as such, of FelCor LP, FelCor or the Sub-

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sidiary Guarantors or of any successor Person, either directly or through FelCor LP or any
successor Person, whether by virtue of any constitution, statute or rule of
law, or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issue of the Notes.

     SECTION 10.10. Successors. All agreements of FelCor LP, FelCor or the
Subsidiary Guarantors in this Indenture and the Notes shall bind its
successors. All agreements of the Trustee in this Indenture shall bind its
successor.

     SECTION 10.11. Duplicate Originals. The parties may sign any number of
copies of this Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement.

     SECTION 10.12. Separability. In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

     SECTION 10.13. Table of Contents, Headings, Etc. The Table of Contents,
Cross-Reference Table and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be
considered a part hereof and shall in no way modify or restrict any of the
terms and provisions hereof.

ARTICLE XI

GUARANTEE OF THE NOTES

     SECTION 11.01. Guarantee. Subject to the provisions of this Article
Eleven, each Guarantor, jointly and severally, hereby unconditionally
guarantees to each Holder and to the Trustee on behalf of the Holders: (i) the
due and punctual payment of the principal of, premium if any, on and interest
on the Notes, when and as the same shall become due and payable, whether at
maturity, by acceleration, redemption or otherwise, the due and punctual
payment of interest on the over due principal of and interest, if any, on the Notes, to the extent lawful,
and the due and punctual performance of all other obligations of FelCor LP to
the Holders or the Trustee, all in accordance with the terms of such Note and
this Indenture and (ii) in the case of any extension of time of payment or
renewal of any Notes or any of such other obligations, that the same will be
promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, at stated maturity, by acceleration, redemption or
otherwise. Each Guarantor hereby waives diligence, presentment, filing of
claims with a court in the event of merger or bankruptcy of FelCor LP, any
right to require a proceeding first against FelCor LP, the benefit of
discussion, protest or notice with respect to any such Note or the debt
evidenced thereby and all demands whatsoever (except as specified above), and
covenants that this Article Eleven will not be discharged as to any such Note
except by payment in full of the principal thereof and interest thereon and as
provided in Sections 8.01 and 8.02. The maturity of the obligations guaranteed
hereby may be accelerated as provided in Article Six for the purposes of this
Article Eleven. In the event of any declaration of acceleration of such
obligations as provided in Article Eleven, such obligations (whether or not due
and payable) shall become due and payable immediately by the Guarantor for the
purpose of this Article Eleven. In addition, without limiting the foregoing
provisions, upon the effectiveness of an acceleration under Article Six, the
Trustee shall promptly make a demand for payment on the Notes under the
Guarantees provided for in this Article Eleven.

     Each Guarantor hereby irrevocably waives any claim or other rights which
it may now or hereafter acquire against performance or enforcement of such
Guarantor’s obligations under this Indenture, including, without limitation,
any right of subrogation, reimbursement, exoneration, contribution,
indemnification, any right to participate in any claim or remedy of the Holders
against FelCor LP, whether or not such claim, remedy or right arises in equity,
or under contract, statute or common law, including, without limitation, the
right to take or receive from FelCor LP, directly or indirectly, in cash or
other property or in any other manner, payment or security on account of such
claim or other rights. If any amount shall be paid to any Guarantor in
violation of the preceding sentence and the principal of, premium if any, and
accrued interest on the Notes shall not have been paid in full, such amount
shall be deemed

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to have been paid to such Guarantor for the benefit of, and
held in trust for the benefit of, the Holders, and shall immediately be paid to
the Trustee for the benefit of the Holders to be credited and applied upon the
principal of, premium, if any, and accrued interest on the Notes. Each
Guarantor acknowledges that it will receive direct and indirect benefits from
the issuance of the Notes pursuant to this Indenture and that the waiver set
forth in this paragraph is knowingly made in contemplation of such benefits.

     The Guarantee set forth in this Section 11.01 shall not be valid or become
obligatory for any purpose with respect to a Note until the certificate of
authentication on such Note shall have been signed by or on behalf of the
Trustee.

     Notwithstanding anything contained in this Article Eleven to the contrary,
the parties acknowledge that FelCor Holdings Trust has been formed under the
laws of the Commonwealth of Massachusetts pursuant to a Declaration of Trust
dated as of July 31, 2002, and in accordance with the Declaration of Trust,
none of the shareholders, trustees or officers of FelCor Holdings Trust shall
be personally liable for such Guarantor’s obligations under this Article
Eleven, and the Trustee shall look solely to the trust estate comprising FelCor
Holdings Trust for the payment of any claim under such obligations or for the
performance of such obligations.

     SECTION 11.02. Obligations of Guarantor Unconditional. Nothing contained
in this Article Eleven or elsewhere in this Indenture or in the Notes is
intended to or shall impair, as among each Guarantor and the Holders of the
Notes, the obligation of each Guarantor, which is absolute and unconditional,
upon failure by FelCor LP, to pay to the Holders of the Notes and principal of,
premium, if any, and interest on the Notes as and when the same shall become
due and payable in accordance with their terms, or is intended to or shall
affect the relative rights of the Holders of the Notes and creditors of each
Guarantor, nor shall anything herein or therein prevent the Holder of any Note
or the Trustee on their behalf from exercising all remedies otherwise permitted
by applicable law upon default under this Indenture.

     Without limiting the generality of the foregoing, nothing contained in
this Article Eleven will restrict the right of the Trustee or the Holders of
the Notes to take any action to declare the Guarantees to be due and payable
prior to the stated maturity of the Notes pursuant to Section 6.02 or to pursue
any rights or remedies hereunder.

     SECTION 11.03. Notice to Trustee. Each Guarantor shall give prompt
written notice to the Trustee of any fact known to such Guarantor which would
prohibit the making of any payment to or by the Trustee in respect of the
Guarantee pursuant to the provisions of this Article Eleven.

     SECTION 11.04. This Article Not To Prevent Events of Default. The failure
to make a payment on account of principal, of premium, if any, or interest on
the Notes by reason of any provision of this Article Eleven will not be
construed as preventing the occurrence of an Event of Default.

     SECTION 11.05. Trustee’s Compensation Not Prejudiced. Nothing in this
Article Eleven will apply to amounts due to the Trustee pursuant to other
sections in this Indenture.

     SECTION 11.06. Payments May Be Paid Prior to Dissolution. Nothing
contained in this Article Eleven or elsewhere in this Indenture shall prevent
(i) a Guarantor from making payments of principal of, premium if any, and
interest on the Notes, or from depositing with the Trustee any monies for such
payments or (ii) the application by the Trustee of any monies deposited with it
for the purpose of making such payments of principal of, premium, if any, and
interest on the Notes to the Holders entitled thereto, each Guarantor shall
give prompt written notice to the Trustee of any dissolution, winding up,
liquidation or reorganization of such Guarantor.

     SECTION 11.07. Release of Guarantee. The Guarantee provided pursuant to
this Article 11 by each Subsidiary Guarantor shall be automatically and
unconditionally released and discharged upon (i) the sale or other disposition
of the Capital Stock of such Subsidiary Guarantor, if, as a result of such sale
or disposition, such Subsidiary Guarantor ceases to be a subsidiary of FelCor
LP; provided such sale or other disposition is in compliance with the terms of
this Indenture, (ii) the consolidation or merger of any such Subsidiary
Guarantor with any person

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other than FelCor LP or a Subsidiary of FelCor LP,
if, as a result of such consolidation or merger, such Subsidiary Guarantor
ceases to be a subsidiary of FelCor LP; provided such consolidation or merger
is in compliance with this Indenture, (iii) a defeasance under Section 8.02 or
8.03 of this Indenture or (iv) the unconditional and complete release of such
Subsidiary Guarantor from its Guarantee of all Guaranteed Indebtedness.

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SIGNATURES

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, all as of the date first written above.

	 	 	 	 	 
	 	FELCOR LODGING TRUST INCORPORATED

 	 
	 	By:  	                                           /s/ LAWRENCE D. ROBINSON
 	 
	 	 	Name:  	Lawrence D. Robinson 	 
	 	 	Title:  	Executive Vice President & General

Counsel 	 
	 

	 	 	 	 	 
	 	FELCOR LODGING LIMITED PARTNERSHIP

 	 
	 	By:  	FelCor Lodging Trust Incorporated, 	 
	 	 	General Partner 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                           /s/ LAWRENCE D. ROBINSON
 	 
	 	 	Name:  	Lawrence D. Robinson 	 
	 	 	Title:  	Executive Vice President & General

Counsel 	 
	 

	 	 	 	 	 
	 	SUNTRUST BANK, as Trustee

 	 
	 	By:  	                            /s/ GEORGE HOGAN
 	 
	 	 	Name:  	George Hogan 	 
	 	 	Title:  	Vice President 	 

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Table of Contents

	 	 	 	 	 
	 	FELCOR/CSS HOTELS, L.L.C.

FELCOR/LAX HOTELS, L.L.C.

FELCOR EIGHT HOTELS, L.L.C.

FELCOR HOTEL ASSET COMPANY, L.L.C.

FELCOR NEVADA HOLDINGS, L.L.C.

FHAC NEVADA HOLDINGS, L.L.C.

FELCOR OMAHA HOTEL COMPANY, L.L.C.

FELCOR COUNTRY VILLA HOTEL, L.L.C.

FELCOR MOLINE HOTEL, L.L.C.

FELCOR CANADA CO.

KINGSTON PLANTATION DEVELOPMENT CORP.

FELCOR HOLDINGS TRUST

FELCOR/CSS HOLDINGS, L.P.

    By: FELCOR/CSS HOTELS, L.L.C., General

    Partner

FELCOR/ST. PAUL HOLDINGS, L.P.

    By: FELCOR/CSS HOTELS, L.L.C., General

    Partner

FELCOR/LAX HOLDINGS, L.P.

    By: FELCOR/LAX HOTELS, L.L.C., General

    Partner

FHAC TEXAS HOLDINGS, L.P.

    By: FELCOR HOTEL ASSET COMPANY,

    L.L.C., General Partner
FELCOR TRS HOLDINGS, L.P.
        By: FELCOR TRS I, LLC
 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                           /s/ LAWRENCE D. ROBINSON
 	 
	 	 	Name:  	Lawrence D. Robinson 	 
	 	 	Title:  	Executive Vice President & General

Counsel 	 

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SCHEDULE A

 

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EXHIBIT A

[FACE OF NOTE]

Senior Floating Rate Note due 2011

[CUSIP]                    

	 	 	 
	No.

	 	$                   

     FELCOR LODGING LIMITED PARTNERSHIP, a Delaware limited partnership
(“FelCor LP”, which term includes any successor under the Indenture hereinafter
referred to), for value received, promises to pay to CEDE & Co., or its
registered assigns, the principal sum of    ($   ) on June 1,
2011.

     Interest Payment Dates: June 1 and December 1, commencing December 1,
2004.

     Regular Record Dates: May 15 and November 15.

     Reference is hereby made to the further provisions of this Note set forth
on the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place.

     IN WITNESS WHEREOF, FelCor LP has caused this Note to be signed manually
or by facsimile by its duly authorized officers.

	 	 	 	 	 
	 	FELCOR LODGING LIMITED PARTNERSHIP

 	 
	 	By:  	FELCOR LODGING TRUST
 INCORPORATED, General Partner	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

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(Trustee’s Certificate of Authentication)

     This is one of the Senior Floating Rate Notes due 2011 described in the
within-mentioned Indenture.

Date:

	 	 	 	 	 
	 	SUNTRUST BANK, as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

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[REVERSE SIDE OF NOTE]

FELCOR LODGING LIMITED PARTNERSHIP

Senior Floating Rate Note due 2011

	1.	 	Principal and Interest.

     FelCor LP will pay the principal of this Note on June 1, 2011.

     Interest on the Notes will be payable semi-annually in cash on each June 1
and December 1 commencing on December 1, 2004 (each, an “Interest Payment
Date”), to the Holders of record of the Notes at the close of business on May
15 and November 15 immediately preceding the applicable Interest Payment Date.

     If an exchange offer registered under the Securities Act is not
consummated and a shelf registration statement under the Securities Act with
respect to resales of the Notes is not declared effective by the Commission on
or before November 22, 2004 in accordance with the terms of the Registration
Rights Agreement, interest due on the Notes will accrue at an annual rate of
0.5% plus the interest rate specified on the face hereof until the exchange
offer is consummated or the shelf registration statement is declared effective.
The Holder of this Note is entitled to the benefits of such Registration
Rights Agreement.

     Interest on the Notes will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the Closing Date.

     This Note will bear interest at a rate per annum (the “Applicable Interest
Rate”), reset semi-annually, equal to LIBOR plus 4.25%, as determined by the
calculation agent appointed by FelCor LP (the “Calculation Agent”), which shall
initially be the Trustee.

     Set forth below is a summary of certain of the defined terms used in this
Section 1 relating to the determination of interest on this Note.

     “Determination Date,” with respect to an Interest Period, will be the
second London Banking Day preceding the first day of the Interest Period.

     “Interest Period” means the period commencing on and including an interest
payment date and ending on and including the day immediately preceding the next
succeeding interest payment date, with the exception that the first Interest
Period shall commence on and include the Closing Date and end on and include
November 30, 2004.

     “LIBOR,” with respect to an Interest Period, will be the rate (expressed
as a percentage per annum) for deposits in United States dollars for a
six-month period beginning on the second London Banking Day after the
Determination Date that appears on Telerate Page 3750 as of 11:00 a.m., London
time, on the Determination Date. If Telerate Page 3750 does not include such a
rate or is unavailable on a Determination Date, the Calculation Agent will
request the principal London office of each of four major banks in the London
interbank market, as selected by the Calculation Agent, to provide such bank’s
offered quotation (expressed as a percentage per annum), as of approximately
11:00 a.m., London time, on such Determination Date, to prime banks in the
London interbank market for deposits in a Representative Amount in United
States dollars for a six-month period beginning on the second London Banking
Day after the Determination Date. If at least two such offered quotations are
so provided, LIBOR for the Interest Period will be the arithmetic mean of such
quotations. If fewer than two such quotations are so provided, the Calculation
Agent will request each of three major banks in New York City, as selected by
the Calculation Agent, to provide such bank’s rate (expressed as a percentage
per annum), as of approximately 11:00 a.m., New York City time, on such
Determination Date, for loans in a Representative Amount in
United States dollars to leading European banks for a six-month period
beginning on the second London Banking Day after the Determination Date. If at
least two such rates are so provided, LIBOR for the Interest Period will be the
arithmetic mean of such

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rates. If fewer than two such rates are so provided, then LIBOR for the
Interest Period will be LIBOR in effect with respect to the immediately
preceding Interest Period.

     “London Banking Day” is any day in which dealings in United States dollars
are transacted or, with respect to any future date, are expected to be
transacted in the London interbank market.

     “Representative Amount” means a principal amount of not less than U.S.
$1,000,000 for a single transaction in the relevant market at the relevant
time.

     “Telerate Page 3750” means the display designated as “Page 3750” on the
Moneyline Telerate service (or such other page as may replace Page 3750 on that
service).

     The amount of interest for each day that the Notes are outstanding (the
“Daily Interest Amount”) will be calculated by dividing the interest rate in
effect for such day by 360 and multiplying the result by the principal amount
of the Notes. The amount of interest to be paid on the Notes for each Interest
Period will be calculated by adding the Daily Interest Amounts for each day in
the Interest Period.

     All percentages resulting from any of the above calculations will be
rounded, if necessary, to the nearest one hundred-thousandth of a percentage
point, with the final one-millionths of a percentage point being rounded
upwards (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or
..0987655)) and all dollar amounts used in or resulting from such calculations
will be rounded to the nearest cent (with one-half cent being rounded upwards).

     The interest rate on the Notes will in no event be higher than the maximum
rate permitted by New York law as the same may be modified by United States law
of general application.

     The Calculation Agent will, upon the request of the Holder of any Note,
provide the interest rate then in effect with respect to the Notes. All
calculations made by the Calculation Agent in the absence of manifest error
will be conclusive for all purposes and binding on FelCor LP, the Guarantors
and the Holders of the Notes.

     FelCor LP shall pay interest on overdue principal and premium, if any, and
interest on overdue installments of interest, to the extent lawful, at a rate
per annum that is 2% in excess of the rate otherwise payable.

	2.	 	Method of Payment.

     FelCor LP will pay interest (except defaulted interest) on the principal
amount of the Notes as provided above on each June 1 and December 1 to the
persons who are Holders (as reflected in the Note Register at the close of
business on such May 15 and November 15 immediately preceding the Interest
Payment Date), in each case, even if the Note is canceled on registration of
transfer or registration of exchange after such record date; provided that,
with respect to the payment of principal, FelCor LP will make payment to the
Holder that surrenders this Note to a Paying Agent on or after June 1, 2011.

     FelCor LP will pay principal, premium, if any, and as provided above,
interest in money of the United States that at the time of payment is legal
tender for payment of public and private debts. However, FelCor LP may pay
principal, premium, if any, and interest by its check payable in such money.
It may mail an interest check to a Holder’s registered address (as reflected in
the Note Register). If a payment date is a date other than a Business Day at a
place of payment, payment may be made at that place on the next succeeding day
that is a Business Day and no interest shall accrue for the intervening period.

	3.	 	Paying Agent and Registrar.

     Initially, the Trustee will act as authenticating agent, Paying Agent and
Registrar. FelCor LP may change any authenticating agent, Paying Agent or
Registrar without notice. FelCor LP, any Subsidiary or any Affiliate of any of
them may act as Paying Agent, Registrar or co-Registrar.

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4. Indenture; Limitations.

     FelCor LP issued the Notes under an Indenture dated as of May 26, 2004
(the “Indenture”), among FelCor LP, FelCor, the Subsidiary Guarantors and
SunTrust Bank (the “Trustee”). Capitalized terms herein are used as defined in
the Indenture unless otherwise indicated. The terms of the Notes include those
stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act. The Notes are subject to all such terms, and Holders
are referred to the Indenture and the Trust Indenture Act for a statement of
all such terms. To the extent permitted by applicable law, in the event of any
inconsistency between the terms of this Note and the terms of the Indenture,
the terms of the Indenture shall control.

     The Notes are general unsecured obligations of FelCor LP.

5. Redemption.

     Except as provided below, FelCor LP may not redeem any of the Notes prior
to December 1, 2006.

     The Notes may be redeemed at the option of FelCor LP, in whole or in part,
at any time and from time to time, on or after December 1, 2006, upon not less
than 30 days’ nor more than 60 days’ notice, at the following Redemption Prices
(expressed as percentages of the principal amount thereof) if redeemed during
the 12-month period commencing December 1 of the years indicated below, in each
case together with accrued and unpaid interest thereon to the Redemption Date:

	 	 	 	 	 
	Year
	 	Redemption Price

	2006

	 	 	102.000	%
	2007

	 	 	101.000	%
	2008 and thereafter

	 	 	100.000	%

     Notwithstanding the foregoing, at any time, or from time to time, on or
prior to June 1, 2007, FelCor LP may, at its option, use the net cash proceeds
of one or more Equity Offerings to redeem up to 35% of the principal amount of
the Notes at a Redemption Price (expressed as a percentage of the principal
amount thereof) equal to the sum of (a) 100% plus (b) the then Applicable
Interest Rate on the Notes, together with accrued and unpaid interest thereon,
if any, to the Redemption Date; provided that

     (i) at least 65% of the principal amount of the Notes issued under
this Indenture remains outstanding immediately after such redemption; and

     (ii) FelCor LP makes such redemption not more than 90 days after the
consummation of any such Equity Offering.

     Notice of any optional redemption will be mailed at least 30 but not more
than 60 days before the Redemption Date to each Holder of Notes to be redeemed
at its last address as it appears in the Note Register. Notes in original
principal amount greater than $1,000 may be redeemed in part. On and after the
Redemption Date, interest ceases to accrue on Notes or portions thereof called
for redemption, unless FelCor LP defaults in the payment of the amount due upon
redemption.

6. Repurchase upon Change in Control.

     Upon the occurrence of any Change of Control, each Holder shall have the
right to require the repurchase of its Notes by FelCor LP in cash pursuant to
the offer described in the Indenture at a purchase price equal to 101% of the
principal amount thereof plus accrued and unpaid interest, if any, to the date
of purchase (the “Change of Control Payment”).

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     A notice of such Change of Control will be mailed within 30 days after any
Change of Control occurs to each Holder at his last address as it appears in
the Note Register. Notes in original denominations larger than $1,000 may be
sold to FelCor LP in part. On and after the Change of Control Payment Date,
interest ceases to accrue on Notes or portions of Notes surrendered for
purchase by FelCor LP, unless FelCor LP defaults in the payment of the Change
of Control Payment.

7. Denominations; Transfer; Exchange.

     The Notes are in registered form without coupons in denominations of
$1,000 of principal amount at maturity and multiples of $1,000 in excess
thereof. A Holder may register the transfer or exchange of Notes in accordance
with the Indenture. The Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay any taxes
and fees required by law or permitted by the Indenture. The Registrar need not
register the transfer or exchange of any Notes selected for redemption. Also,
it need not register the transfer or exchange of any Notes for a period of 15
days before a selection of Notes to be redeemed is made.

8. Persons Deemed Owners.

     A Holder shall be treated as the owner of a Note for all purposes.

9. Unclaimed Money.

     If money for the payment of principal, premium, if any, or interest
remains unclaimed for two years, the Trustee and the Paying Agent will pay the
money back to FelCor LP at its request. After that, Holders entitled to the
money must look to FelCor LP for payment, unless an abandoned property law
designates another Person, and all liability of the Trustee and such Paying
Agent with respect to such money shall cease.

10. Discharge Prior to Redemption or Maturity.

     If FelCor LP deposits with the Trustee money or U.S. Government
Obligations sufficient to pay the then outstanding principal of, premium, if
any, and accrued interest on the Notes (a) to redemption or maturity, FelCor LP
will be discharged from the Indenture and the Notes, except in certain
circumstances for certain sections thereof, and (b) to the Stated Maturity,
FelCor LP will be discharged from certain covenants set forth in the Indenture.

11. Amendment; Supplement; Waiver.

     Subject to certain exceptions, the Indenture or the Notes may be amended
or supplemented with the consent of the Holders of at least a majority in
principal amount of the Notes then outstanding, and any existing default or
compliance with any provision may be waived with the consent of the Holders of
at least a majority in principal amount of the Notes then outstanding. Without
notice to or the consent of any Holder, the parties thereto may amend or
supplement the Indenture or the Notes to, among other things, cure any
ambiguity, defect or inconsistency and make any change that does not materially
and adversely affect the rights of any Holder.

12. Restrictive Covenants.

     The Indenture imposes certain limitations on the ability of FelCor, FelCor
LP and their respective Restricted Subsidiaries, among other things, to Incur
additional Indebtedness, make Restricted Payments, use the proceeds from Asset
Sales, engage in transactions with Affiliates or merge, consolidate or transfer
substantially all of their assets. Within 45 days after the end of each fiscal
quarter (90 days after the end of the last fiscal quarter of each year), FelCor
and FelCor LP must report to the Trustee on compliance with such limitations.

13. Successor Persons.

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     When a successor person or other entity assumes all the obligations of its
predecessor under the Notes and the Indenture, the predecessor person will be
released from those obligations.

14. Defaults and Remedies.

     The following events constitute “Events of Default” under the Indenture:

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

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

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

        (d) FelCor LP or FelCor defaults in the performance of or breaches
any other covenant or agreement of FelCor LP or FelCor in the Indenture
or under the Notes (other than a default specified in clause (a), (b) or
(c) above) and such default or breach continues for a period of 30
consecutive days after written notice by the Trustee or the Holders of
25% or more in aggregate principal amount of the Notes;

        (e) there occurs with respect to any issue or issues of Indebtedness
of FelCor LP or FelCor or any Significant Subsidiary having an
outstanding principal amount of $10 million or more in the aggregate for
all such issues of all such Persons, whether such Indebtedness now exists
or shall hereafter be created, (i) an event of default that has caused
the holder thereof to declare such Indebtedness to be due and payable
prior to its Stated Maturity and such Indebtedness has not been
discharged in full or such acceleration has not been rescinded or
annulled within 30 days of such acceleration and/or (ii) the failure to
make a principal payment at the final (but not any interim) fixed
maturity and such defaulted payment shall not have been made, waived or
extended within 30 days of such payment default;

        (f) any final judgment or order (not covered by insurance) for the
payment of money in excess of $10 million in the aggregate for all such
final judgments or orders against all such Persons (treating any
deductibles, self-insurance or retention as not covered by insurance) (i)
shall be rendered against FelCor LP or FelCor or any Significant
Subsidiary and shall not be paid or discharged, and (ii) there shall be
any period of 60 consecutive days following entry of the final judgment
or order that causes the aggregate amount for all such final judgments or
orders outstanding and not paid or discharged against all such Persons to
exceed $10 million during which a stay of enforcement of such final
judgment or order, by reason of a pending appeal or otherwise, shall not
be in effect;

        (g) a court having jurisdiction in the premises enters a decree or
order for (i) relief in respect of FelCor LP or FelCor or any Significant
Subsidiary in an involuntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, (ii)
appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of FelCor LP or FelCor or any
Significant Subsidiary or for all or substantially all of the property
and assets of FelCor LP or FelCor or any Significant Subsidiary or (iii)
the winding up or liquidation of the affairs of FelCor LP or FelCor or
any Significant Subsidiary and, in each case, such decree or order shall
remain unstayed and in effect for a period of 60 consecutive days;

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

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possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of FelCor LP or FelCor or Significant
Subsidiary or for all or substantially all of the property and assets of
FelCor LP or FelCor or any Significant Subsidiary or (iii) effects any
general assignment for the benefit of its creditors; or

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

     If an Event of Default (other than an Event of Default described in
subparagraphs (g) or (h) above that occurs with respect to FelCor LP or FelCor)
occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the Notes may declare all the Notes to be due and payable.
If an Event of Default described in subparagraphs (g) or (h) above occurs with
respect to FelCor LP or FelCor, the Notes automatically become due and payable.
Holders may not enforce the Indenture or the Notes except as provided in the
Indenture. The Trustee may require indemnity satisfactory to it before it
enforces the Indenture or the Notes. Subject to certain limitations, Holders
of at least a majority in principal amount of the Notes then outstanding may
direct the Trustee in its exercise of any trust or power.

15. Trustee Dealings with Company.

     The Trustee under the Indenture, in its individual or any other capacity,
may make loans to, accept deposits from and perform services for FelCor LP or
its Affiliates and may otherwise deal with FelCor LP or its Affiliates as if it
were not the Trustee.

16. No Recourse Against Others.

     No incorporator or any past, present or future limited partner,
shareholder, other equity holder, officer, director, employee or controlling
person as such, of FelCor LP or of any successor Person shall have any
liability for any obligations of FelCor LP under the Notes or the Indenture or
for any claim based on, in respect of or by reason of, such obligations or
their creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for the
issuance of the Notes.

17. Authentication.

     This Note shall not be valid until the Trustee or authenticating agent
signs the certificate of authentication on the other side of this Note.

18. Abbreviations.

     Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors
Act).

     FelCor LP will furnish to any Holder upon written request and without
charge a copy of the Indenture. Requests may be made to FelCor Lodging Limited
Partnership, 545 East John Carpenter Freeway, Suite 1300, Irving, Texas 75062
or at such other address provided for in the Indenture.

19. Guarantee.

     Repayment of principal and interest on the Notes is guaranteed on a senior
basis by the Guarantors pursuant to Article Eleven of the Indenture.

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[FORM OF TRANSFER NOTICE]

     FOR VALUE RECEIVED the undersigned registered Holder hereby sell(s),
assign(s) and transfer(s) unto

Insert Taxpayer Identification No.

__________________________________________ (Please print or typewrite name and
address including zip code of assignee) the within Note and all rights
thereunder, hereby irrevocably constituting __________________________________________ and appointing _______________________
attorney to transfer said Note on the books of FelCor LP with full power of
substitution in the premises.

[THE FOLLOWING PROVISION TO BE INCLUDED

ON ALL NOTES OTHER THAN EXCHANGE NOTES,

PERMANENT OFFSHORE GLOBAL NOTES AND

OFFSHORE PHYSICAL NOTES]

     In connection with any transfer of this Note occurring prior to the date
which is the earlier of (i) the date the shelf registration statement with
respect to resales of the Notes is declared effective or (ii) two years after
the original issuance of the Notes, the undersigned confirms that without
utilizing any general solicitation or general advertising that:

[Check One]

	 	 	 
	[   ]

	 	(a)     this Note is being transferred in
compliance with the exemption from registration
under the Securities Act of 1933, as amended,
provided by Rule 144A thereunder.

or

	 	 	 
	[   ]

	 	(b)     this Note is being transferred other
than in accordance with (a) above and documents
are being furnished which comply with the
conditions of transfer set forth in this Note and
the Indenture.

If none of the foregoing boxes is checked, the Trustee or other Registrar shall
not be obligated to register this Note in the name of any Person other than the
Holder hereof unless and until the conditions to any such transfer of
registration set forth herein and in Section 2.08 of the Indenture shall have
been satisfied.

	 	 	 
	Date:

	 	

NOTICE: The signature to this assignment must correspond with the
name as written upon the face of the within-mentioned instrument in
every particular, without alteration or any change whatsoever.

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TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

     The undersigned represents and warrants that it is purchasing this Note
for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A under the Securities Act
of 1933, as amended, and is aware that the sale to it is being made in reliance
on Rule 144A and acknowledges that it has received such information regarding
FelCor LP as the undersigned has requested pursuant to Rule 144A or has
determined not to request such information and that it is aware that the
transferor is relying upon the undersigned’s foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	

	 	

	 	 	 	

	

	 	 	 	 	 	NOTICE: To be executed by an executive officer

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OPTION OF HOLDER TO ELECT PURCHASE

     If you wish to have this Note purchased by FelCor LP pursuant to Section
4.10 or Section 4.11 of the Indenture, check the Box:
o

     If you wish to have a portion of this Note purchased by FelCor LP pursuant
to Section 4.10 or Section 4.11 of the Indenture, state the amount (in
principal amount at maturity):
$                  .

	 	 	 
	Date:
	 	 
	

	 	

	 	 	 
	Your Signature:
	 	 
	

	 	

	

	 	(Sign exactly as your name appears on the other side of
this Note)

	 	 	 
	Signature Guarantee:
	 	 
	

	 	

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EXHIBIT B

Form of Certificate

___________, _____

FelCor Lodging Limited Partnership

545 East John Carpenter Freeway

Suite 1300

Irving, Texas 75062

FelCor Lodging Trust Incorporated

545 East John Carpenter Freeway

Suite 1300

Irving, Texas 75062

SunTrust Bank

25 Park Place, 24th Floor

Atlanta, Georgia 30303-2900

Attention: Corporate Trust Department

Re: FelCor Lodging Limited Partnership (“FelCor LP”)

       Senior Floating Rate Notes Due 2011 (the “Notes”)

Dear Sirs:

     This
letter relates to U.S. $           
  principal amount at maturity of
Notes represented by a Note (the “Legended Note”) which bears a legend
outlining restrictions upon transfer of such Legended Note. Pursuant to
Section 2.01 of the Indenture (the “Indenture”) dated as of May 26, 2004
relating to the Notes, we hereby certify that we are (or we will hold such
securities on behalf of) a person outside the United States to whom the Notes
could be transferred in accordance with Rule 903 or Rule 904 of Regulation S
promulgated under the U.S. Securities Act of 1933, as amended. Accordingly,
you are hereby requested to exchange the legended certificate for an unlegended
certificate representing an identical principal amount at maturity of Notes,
all in the manner provided for in the Indenture.

     You are entitled to rely upon this letter and are irrevocably authorized
to produce this letter or a copy hereof to any interested party in any
administrative or legal proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this certificate have the meanings set
forth in Regulation S.

	 	 	 	 	 
	 	Very truly yours,

[Name of Holder]

 	 
	 	By:  	

	 
	 	 	Authorized Signature 	 

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EXHIBIT C

Form of Certificate to Be

Delivered in Connection with

Transfers to Non-QIB Accredited Investors

_____________, __

FelCor Lodging Limited Partnership

545 East John Carpenter Freeway

Suite 1300

Irving, Texas 75062

FelCor Lodging Trust Incorporated

545 East John Carpenter Freeway

Suite 1300

Irving, Texas 75062

SunTrust Bank

25 Park Place, 24th Floor

Atlanta, Georgia 30303-2900

Attention: Corporate Trust Department

Re: FelCor Lodging Limited Partnership (“FelCor LP”)

       Senior Floating Rate Notes Due 2011 (the “Notes”)

Dear Sirs:

        In
connection with our proposed purchase of $      
      aggregate
principal amount at maturity of the Notes, we confirm that:

     1. We understand that any subsequent transfer of the Notes is
subject to certain restrictions and conditions set forth in the Indenture
dated as of May 26, 2004, relating to the Notes (the “Indenture”) and the
undersigned agrees to be bound by, and not to resell, pledge or otherwise
transfer the Notes except in compliance with, such restrictions and
conditions and the Securities Act of 1933, as amended (the “Securities
Act”).

     2. We understand that the offer and sale of the Notes have not been
registered under the Securities Act, and that the Notes may not be
offered or sold except as permitted in the following sentence. We agree,
on our own behalf and on behalf of any accounts for which we are acting
as hereinafter stated, that if we should sell any Notes, we will do so
only (A) to FelCor, FelCor LP or any subsidiary thereof, (B) in
accordance with Rule 144A under the Securities Act to a “qualified
institutional buyer” (as defined therein), (C) to an institutional
“accredited investor” (as defined below) that, prior to such transfer,
furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you
a signed letter substantially in the form of this letter, and, if this
letter relates to a proposed transfer in respect of an aggregate
principal amount of Notes less than $100,000, an opinion of counsel
acceptable to FelCor and FelCor LP that such transfer is in compliance
with the Securities Act, (D) outside the United States in accordance with
Rule 904 of Regulation S under the Securities Act, (E) pursuant to the
exemption from registration provided by Rule 144 under the Securities Act
(if available), or (F) pursuant to an effective registration statement
under the Securities Act, and we further agree to provide to any person
purchasing any of the Notes from us a notice advising such purchaser that
resales of the Notes are restricted as stated herein.

     3. We understand that, on any proposed resale of any Notes, we will
be required to furnish to you such certifications, legal opinions and
other information as you may reasonably require to confirm

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that the proposed sale complies with the foregoing restrictions. We
further understand that the Notes purchased by us will bear a legend to
the foregoing effect.

     4. We are an institutional “accredited investor” (as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and
have such knowledge and experience in financial and business matters as
to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to
bear the economic risk of our or its investment.

     5. We are acquiring the Notes purchased by us for our own account or
for one or more accounts (each of which is an institutional “accredited
investor”) as to each of which we exercise sole investment discretion.

     You are entitled to rely upon this letter and are irrevocably authorized
to produce this letter or a copy hereof to any interested party in any
administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.

	 	 	 	 	 
	 	Very truly yours,

[Name of Transferee]

 	 
	 	By:  	 	 
	 	 	Authorized Signature 	 

C-2

Table of Contents

	 	 	 	 	 

EXHIBIT D

Form of Certificate To Be Delivered

in Connection with Transfers

Pursuant to Regulation S

___________, ____

FelCor Lodging Limited Partnership

545 East John Carpenter Freeway

Suite 1300

Irving, Texas 75062

FelCor Lodging Trust Incorporated

545 East John Carpenter Freeway

Suite 1300

Irving, Texas 75062

SunTrust Bank

25 Park Place, 24th Floor

Atlanta, Georgia 30303-2900

Attention: Corporate Trust Department

Re: FelCor Lodging Limited Partnership (“FelCor LP”)

       Senior Floating Rate Notes Due 2011(the “Notes”)

Dear Sirs:

     In
connection with our proposed sale of
U.S.$          
aggregate principal
amount at maturity of the Notes, we confirm that such sale has been effected
pursuant to and in accordance with Regulation S under the Securities Act of
1933, as amended (the “Securities Act”), and, accordingly, we represent that:

(1) the offer of the Notes was not made to a person in the United
States;

(2) at the time the buy order was originated, the transferee was
outside the United States or we and any person acting on our behalf
reasonably believed that the transferee was outside the United States;

(3) no directed selling efforts have been made by us in the United
States in contravention of the requirements of Rule 903(b) or Rule 904(b)
of Regulation S, as applicable; and

(4) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act.

     You are entitled to rely upon this letter and are irrevocably authorized
to produce this letter or a copy hereof to any interested party in any
administrative or legal proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this certificate have the meanings set
forth in Regulation S.

	 	 	 	 	 
	 	Very truly yours,

[Name of Transferor]

 	 
	 	By:  	 	 
	 	 	Authorized Signature 	 

D-1exv10w32

 

EXHIBIT 10.32

REGISTRATION RIGHTS AGREEMENT

Dated May 26, 2004

AMONG

FELCOR LODGING LIMITED PARTNERSHIP,

FELCOR LODGING TRUST INCORPORATED,

and

THE INITIAL PURCHASER NAMED HEREIN

 

 

REGISTRATION RIGHTS AGREEMENT

               THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered
into as of May 26, 2004, among FELCOR LODGING LIMITED PARTNERSHIP, a Delaware
limited partnership (the “Operating Partnership”), FELCOR LODGING TRUST
INCORPORATED, a Maryland corporation (“FelCor” and, together with the Operating
Partnership, the “Company”) and DEUTSCHE BANK SECURITIES INC., as initial
purchaser (the “Initial Purchaser”).

               This Agreement is made pursuant to the Purchase Agreement dated as of May
17, 2004, among the Operating Partnership, FelCor, the Subsidiary Guarantors
and the Initial Purchaser (the “Purchase Agreement”), which provides for the
sale by the Operating Partnership to the Initial Purchaser of $175,000,000
aggregate principal amount of Senior Floating Rate Notes due 2011 of the
Operating Partnership (the “Notes”) to be issued pursuant to the Indenture (as
defined below). The Notes will be guaranteed by FelCor and the Subsidiary
Guarantors (as defined below) so long as they are obligors on other
indebtedness of FelCor and the Operating Partnership which is pari passu with,
or subordinated to, the Notes. In order to induce the Initial Purchaser to
enter into the Purchase Agreement, the Company has agreed to provide to the
Initial Purchaser and their direct and indirect transferees the registration
rights with respect to the Notes set forth in this Agreement. The execution of
this Agreement is a condition to the closing under the Purchase Agreement.

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

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

               “1933 Act” shall mean the Securities Act of 1933, as amended from time to
time.

               “1934 Act” shall mean the Securities Exchange Act of 1934, as amended from
time to time.

               “Closing Date” shall mean the Closing Date as defined in the Purchase
Agreement.

               “Company” shall have the meaning set forth in the preamble to this
Agreement and shall also include the Company’s successors.

               “Exchange Notes” shall mean Notes issued by the Operating Partnership
under the Indenture containing terms identical to the Notes (except that (i)
interest thereon shall accrue from the last date on which interest was paid on
the Notes or, if no such interest has

 

 

been paid, from May 26, 2004, (ii) the Exchange Notes will not contain
restrictions on transfer and (iii) certain provisions relating to an increase
in the stated rate of interest thereon shall be eliminated) and to be offered
to Holders of Notes in exchange for Notes pursuant to the Exchange Offer.

               “Exchange Offer” shall mean the exchange offer by the Company of Exchange
Notes for Registrable Notes pursuant to Section 2(a) hereof.

               “Exchange Offer Registration” shall mean a registration under the 1933 Act
effected pursuant to Section 2(a) hereof.

               “Exchange Offer Registration Statement” shall mean an exchange offer
registration statement on Form S-4 (or, if applicable, on another appropriate
form) and all amendments and supplements to such registration statement, in
each case including the Prospectus contained therein, all exhibits thereto and
all material incorporated by reference therein.

               “Holder” shall mean the Initial Purchaser, for so long as it owns any
Registrable Notes, and its successors, assigns and direct and indirect
transferees who become registered owners of Registrable Notes under the
Indenture; provided that for purposes of Sections 4 and 5 of this Agreement,
the term “Holder” shall include Participating Broker-Dealers (as defined in
Section 4(a)).

               “Indenture” shall mean the Indenture relating to the Notes dated as of May
26, 2004 between the Operating Partnership, FelCor, the Subsidiary Guarantors
and SunTrust Bank, as trustee, and as the same may be amended or supplemented
from time to time in accordance with the terms thereof.

               “Initial Purchaser” shall have the meaning set forth in the preamble to
this Agreement.

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

               “Notes” shall have the meaning set forth in the second paragraph of this
Agreement.

-2-

 

               “Person” shall mean an individual, partnership, corporation, trust or
unincorporated organization, or a government or agency or political subdivision
thereof.

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

               “Purchase Agreement” shall have the meaning set forth in the second
paragraph of this Agreement.

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

               “Registration Expenses” shall mean any and all expenses incident to
performance of or compliance by the Company with this Agreement, including
without limitation: (i) all SEC, stock exchange or National Association of
Securities Dealers, Inc. (the “NASD”) registration and filing fees, (ii) all
fees and expenses incurred in connection with compliance with state securities
or blue sky laws (including reasonable fees and disbursements of counsel for
any underwriters or Holders in connection with blue sky qualification of any of
the Exchange Notes or Registrable Notes), (iii) all expenses of any Persons in
preparing or assisting in preparing, word processing, printing and distributing
any Registration Statement, any Prospectus, any amendments or supplements
thereto, any underwriting agreements, securities sales agreements and other
documents relating to the performance of and compliance with this Agreement,
(iv) all rating agency fees, (v) all fees and disbursements relating to the
qualification of the Indenture under applicable securities laws, (vi) the fees
and disbursements of the Trustee and its counsel, (vii) the fees and
disbursements of counsel for the Company and, in the case of a Shelf
Registration Statement, the reasonable fees and disbursements of one counsel
for the Holders (which counsel shall be selected by the Majority Holders and
which counsel may also be counsel for the Initial Purchaser) and (viii) the
fees and disbursements of the independent public accountants of the Company,
including the expenses of any special audits or “cold comfort” letters required
by or incident to such performance and compliance, but excluding fees and
expenses of counsel to the underwriters (other than reasonable fees and
expenses set forth in clause (ii) above) or the Holders and
underwrit-

-3-

 

ing discounts and commissions and transfer taxes, if any, relating to the
sale or disposition of Registrable Notes by a Holder.

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

               “SEC” shall mean the Securities and Exchange Commission.

               “Shelf Registration” shall mean a registration effected pursuant to
Section 2(b) hereof.

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

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

               “Trustee” shall mean the trustee with respect to the Notes under the
Indenture.

-4-

 

               “Underwritten Registration” or “Underwritten Offering” shall mean a
registration in which Registrable Notes are sold to an Underwriter (as
hereinafter defined) for reoffering to the public.

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

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

          (ii) the dates of acceptance for exchange (which shall be a period
of at least 20 business days from the date such notice is mailed) (the
“Exchange Dates”);

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

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

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

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

-5-

 

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

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

The Company shall use its commercially reasonable efforts to complete the
Exchange Offer as provided above and shall comply with the applicable
requirements of the 1933 Act, the 1934 Act and other applicable laws and
regulations in connection with the Exchange Offer. The Exchange Offer shall
not be subject to any conditions, other than that the Exchange Offer does not
violate applicable law or any applicable interpretation of the Staff of the
SEC. The Company shall inform the Initial Purchaser, if requested by the
Initial Purchaser, of the names and addresses of the Holders to whom the
Exchange Offer is made, and the Initial Purchaser shall have the right, subject
to applicable law, to contact such Holders and otherwise facilitate the tender
of Registrable Notes in the Exchange Offer.

               (b) In the event that (i) the Company determines that the Exchange Offer
Registration provided for in Section 2(a) above is not available or may not be
consummated as soon as practicable after the last Exchange Date because it
would violate applicable law or the applicable interpretations of the Staff of
the SEC, (ii) the Exchange Offer is not for any other reason consummated on or
prior to 180 days after the Closing Date, or (iii) in the opinion of counsel
for the Initial Purchaser a Registration Statement must be filed and a
Prospectus must be delivered by the Initial Purchaser in connection with any
offering or sale of Registrable Notes, the Company shall cause to be filed as
soon as practicable after such determination, date or notice of such opinion of
counsel is given to the Company, a Shelf Registration Statement providing for
the sale by the Holders of all of the Registrable Notes and use its
commercially reasonable efforts to have such Shelf Registration Statement
declared effective by the SEC. In the event the Company is required to file a
Shelf Registration Statement solely as a result of the matters referred to in
clause (iii) of the preceding sentence, the Company shall file and use its
commercially reasonable efforts to have declared effective by the SEC both an
Exchange Offer Registration Statement pursuant to Section 2(a) with respect to
all Registrable Notes and a Shelf Registration Statement (which may be a
combined Registration Statement with the Exchange Offer Registration Statement)
with respect to offers and sales of Registrable Notes held by the Initial
Purchaser after completion of the Exchange Offer. The Company agrees to use
its commercially reasonable efforts to keep the Shelf Registration Statement
continuously effective until the expiration of the period referred to in Rule
144(k) with respect to all Registrable Notes covered by the Shelf Registration
Statement or such shorter period that will terminate when all of the
Registrable Notes covered by the Shelf Registration Statement have been sold
pursuant to the Shelf Registration Statement. The Com-

-6-

 

pany further agrees to supplement or amend the Shelf Registration
Statement if required by the rules, regulations or instructions applicable to
the registration form used by the Company for such Shelf Registration Statement
or by the 1933 Act or by any other rules and regulations thereunder for shelf
registration or if reasonably requested by a Holder with respect to information
relating to such Holder, and to use its commercially reasonable efforts to
cause any such amendment to become effective and such Shelf Registration
Statement to become usable as soon as thereafter practicable. The Company
agrees to furnish to the Holders of Registrable Notes copies of any such
supplement or amendment promptly after its being used or filed with the SEC.

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

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

               (e) Without limiting the remedies available to the Initial Purchaser and
the Holders, the Company acknowledges that any failure by the Company to comply
with its obligations under Section 2(a) and Section 2(b) hereof may result in
material irreparable injury to the Initial Purchaser or the Holders for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure,
the Initial Purchaser or any Holder may obtain such relief as may be required
to specifically enforce the Company’s obligations under Section 2(a) and
Section 2(b) hereof.

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

          (a) prepare and file with the SEC a Registration Statement on the
appropriate form under the 1933 Act, which form (x) shall be selected by
the Company and (y)

-7-

 

shall, in the case of a Shelf Registration, be available for the
sale of the Registrable Notes by the selling Holders thereof and (z)
shall comply as to form in all material respects with the requirements of
the applicable form and include all financial statements required by the
SEC to be filed therewith, and use its commercially reasonable efforts to
cause such Registration Statement to become effective and remain
effective in accordance with Section 2 hereof;

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

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

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

-8-

 

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

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

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

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

     (i) in the case of a Shelf Registration, upon the occurrence of any
event contemplated by Section 3(e)(v) or (vi) hereof, use its
commercially reasonable efforts to prepare and file with the SEC a
supplement or post-effective amendment to a Regis-

-9-

 

tration Statement or the related Prospectus or any document
incorporated therein by reference or file any other required document so
that, as thereafter delivered to the purchasers of the Registrable Notes,
such Prospectus will not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made,
not misleading. The Company agrees to notify the Holders to suspend use
of the Prospectus as promptly as practicable after the occurrence of such
an event, and the Holders hereby agree to suspend use of the Prospectus
upon receipt of such notice until the Company has amended or supplemented
the Prospectus to correct such misstatement or omission;

     (j) a reasonable time prior to the filing of any Registration
Statement, any Prospectus, any amendment to a Registration Statement or
amendment or supplement to a Prospectus or any document which is to be
incorporated by reference into a Registration Statement or a Prospectus
after initial filing of a Registration Statement, provide copies of such
document to the Initial Purchaser and its counsel, upon request, (and, in
the case of a Shelf Registration Statement, the Holders and their
counsel) and make such of the representatives of the Company as shall be
reasonably requested by the Initial Purchaser or its counsel (and, in the
case of a Shelf Registration Statement, the Holders or their counsel)
available for discussion of such document, and shall not at any time file
or make any amendment to the Registration Statement, any Prospectus or
any amendment of or supplement to a Registration Statement or a
Prospectus or any document which is to be incorporated by reference into
a Registration Statement or a Prospectus, of which the Initial Purchaser
and its counsel (and, in the case of a Shelf Registration Statement, the
Holders and their counsel) shall not have previously been advised and
furnished a copy or to which the Initial Purchaser or its counsel (and,
in the case of a Shelf Registration Statement, the Holders or their
counsel) shall reasonably object;

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

     (l) in the case of a Shelf Registration, make available for
inspection by a representative of the Holders of the Registrable Notes,
any Underwriter participating in any disposition pursuant to such Shelf
Registration Statement, and attorneys and accountants designated by the
Holders, at reasonable times and in a reasonable manner,

-10-

 

all financial and other records, pertinent documents and properties
of the Company, and cause the respective officers, directors and
employees of the Company to supply all information reasonably requested
by any such representative, Underwriter, attorney or accountant in
connection with a Shelf Registration Statement;

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

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

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

     (p) in the case of a Shelf Registration, use its commercially
reasonable efforts to enter into such customary agreements and take all
such other actions in connection therewith (including those requested by
the Holders of a majority of the Registrable Notes being sold) in order
to expedite or facilitate the disposition of such Registrable Notes
including, but not limited to, an Underwritten Offering and in such
connection, (i) to the extent possible, make such representations and
warranties to the Holders and any Underwriters of such Registrable Notes
with respect to the business of the Company and its subsidiaries, the
Registration Statement, Prospectus and documents incorporated by
reference or deemed incorporated by reference, if any, in each case, in
form, substance and scope as are customarily made by issuers to
underwriters in Underwritten Offerings (but in no event more onerous to
the Company than those contained in the Purchase Agreement), and confirm
the same if and when requested, (ii) obtain opinions of counsel to the
Company (which counsel and opinions, in form, scope and substance, shall
be reasonably satisfactory to the Holders and such Underwriters and their
respective counsel) addressed to each selling Holder and Underwriter of
Registrable Notes covering the matters customarily covered in opinions
requested in Underwritten Offerings (but in no event more onerous to the
Company

-11-

 

than those opinions required in the Purchase Agreement), (iii)
obtain “cold comfort” letters from the independent certified public
accountants of FelCor and the Operating Partnership (and, if necessary,
any other certified public accountant of any subsidiary of the Company,
or of any business acquired by the Company for which financial statements
and financial data are or are required to be included in the Registration
Statement) addressed to each selling Holder and Underwriter of
Registrable Notes, such letters to be in customary form and covering
matters of the type customarily covered in “cold comfort” letters in
connection with Underwritten Offerings, and (iv) deliver such documents
and certificates as may be reasonably requested by the Holders of a
majority in principal amount of the Registrable Notes being sold or the
Underwriters, and which are customarily delivered in Underwritten
Offerings, to evidence the continued validity of the representations and
warranties of the Company made pursuant to clause (i) above and to
evidence compliance with any customary conditions contained in an
underwriting agreement.

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

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

               The Holders of Registrable Notes covered by a Shelf Registration Statement
who desire to do so may sell such Registrable Notes in an Underwritten
Offering; provided that the Company shall be required to use its commercially
reasonable efforts to make an Underwritten Offering only upon the request of
Holders of at least 25% of the Registrable Notes outstanding at the time such
request is delivered to the Company. In the case of any Under-

-12-

 

written Offering, the Company shall (x) provide written notice to the
Holders of all Registrable Notes of such Underwritten Offering at least 30 days
prior to the filing of a prospectus for such Underwritten Offering, (y) specify
a date, which shall be no earlier than 10 days following the date of such
notice, by which each such Holder must inform the Company of its intent to
participate in such Underwritten Offering and (z) include reasonable procedures
that are customary to underwritten offerings of the type contemplated herein
that such Holder must follow in order to participate in such Underwritten
Offering. In any such Underwritten Offering, the investment banker or
investment bankers and manager or managers (the “Underwriters”) that will
administer the offering will be selected by the Majority Holders of the
Registrable Notes included in such offering and shall be approved by the
Company, which approval shall not be unreasonably withheld.

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

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

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

         (i) the Company shall not be required to amend or supplement the
Prospectus contained in the Exchange Offer Registration Statement, as
would otherwise be contemplated by Section 3(i), for a period exceeding
180 days after the last Exchange Date (as such period may be extended
pursuant to the penultimate paragraph of

-13-

 

Section 3 of this Agreement) and Participating Broker-Dealers shall not be authorized by
the Company to deliver and shall not deliver such Prospectus after such
period in connection with the resales contemplated by this Section 4; and

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

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

     5. Indemnification and Contribution. (a) The Company agrees to indemnify
and hold harmless the Initial Purchaser, each Holder and each person, if any,
who controls the Initial Purchaser or any Holder within the meaning of either
Section 15 of the 1933 Act or Section 20 of the 1934 Act, or is under common
control with, or is controlled by, the Initial Purchaser or any Holder, from
and against all losses, claims, damages and liabilities (including, without
limitation, any legal or other expenses reasonably incurred by the Initial
Purchaser, any Holder or any such controlling or affiliated person in
connection with defending or investigating any such action or claim) caused by
any untrue statement or alleged untrue statement of a material fact contained
in any Registration Statement (or any amendment thereto) pursuant to which
Exchange Notes or Registrable Notes were registered under the 1933 Act,
including all documents incorporated therein by reference, or caused by any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, or
caused by any untrue statement or alleged untrue statement of a material fact
contained in any Prospectus (as amended or supplemented if the Company shall
have furnished any amendments or supplements thereto), or caused by any
omission or alleged omission to state therein a material fact necessary to make
the statements therein in the light of the circumstances under which they were
made not mis-

-14-

 

leading, except insofar as such losses, claims, damages or liabilities
are caused by any such untrue statement or omission or alleged untrue statement
or omission based upon information relating to the Initial Purchaser or any
Holder furnished to the Company in writing by the Initial Purchaser or such
Holder expressly for use therein. In connection with any Underwritten Offering
permitted by Section 3, the Company will also indemnify the Underwriters, if
any, their officers and directors and each Person who controls such Persons
(within the meaning of the Securities Act and the Exchange Act) to the same
extent as provided above with respect to the indemnification of the Holders, if
requested in connection with any Registration Statement.

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

     (c) In case any proceeding (including any governmental investigation)
shall be instituted involving any person in respect of which indemnity may be
sought pursuant to either paragraph (a) or paragraph (b) above, such person
(the “indemnified party”) shall promptly notify the person against whom such
indemnity may be sought (the “indemnifying party”) in writing and the
indemnifying party, upon request of the indemnified party, shall retain counsel
reasonably satisfactory to the indemnified party to represent the indemnified
party and any others the indemnifying party may designate in such proceeding
and shall pay the reasonable fees and disbursements of such counsel related to
such proceeding. In any such proceeding, any indemnified party shall have the
right to retain its own counsel, but the fees and expenses of such counsel
shall be at the expense of such indemnified party unless (i) the indemnifying
party and the indemnified party shall have mutually agreed to the retention of
such counsel, (ii) the named parties to any such proceeding (including any
impleaded parties) include both the indemnifying party and the indemnified
party and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them or
(iii) the indemnifying party does not, within a reasonable period of time after
request of such indemnified party, retain counsel to represent such indemnified
party. It is understood that the indemnifying party shall not, in connection
with any proceeding or related proceedings in the same jurisdiction, be liable
for (A) the reasonable fees and expenses of more than one separate firm (in
addition to any local counsel) for the Initial Purchaser and all persons, if
any, who control the Initial Purchaser within the meaning of either Section 15
of the 1933 Act or Section 20 of the 1934 Act, (B) the reasonable fees and
expenses of more than one separate firm (in addition to any local counsel) for
the Company, its

-15-

 

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

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

-16-

 

     (e) The Company and each Holder agree that it would not be just or
equitable if contribution pursuant to this Section 5 were determined by pro
rata allocation or by any other method of allocation that does not take account
of the equitable considerations referred to in paragraph (d) above. The amount
paid or payable by an indemnified party as a result of the losses, claims,
damages and liabilities referred to in paragraph (d) above shall be deemed to
include, subject to the limitations set forth above, any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 5, no Holder shall be required to indemnify or
contribute any amount in excess of the amount by which the total price at which
Registrable Notes were sold by such Holder exceeds the amount of any damages
that such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933
Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation. The remedies provided for in this Section 5
are not exclusive and shall not limit any rights or remedies which may
otherwise be available to any indemnified party at law or in equity.

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

     6. Miscellaneous.

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

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

-17-

 

effective as against any Holder of
Registrable Notes unless consented to in writing by such Holder.

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

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

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

     (d) Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Registrable Notes in
violation of the terms of the Purchase Agreement. If any transferee of any
Holder shall acquire Registrable Notes, in any manner, whether by operation of
law or otherwise, such Registrable Notes shall be held subject to all of the
terms of this Agreement, and by taking and holding such Registrable Notes such
person shall be conclusively deemed to have agreed to be bound by and to
perform all of the terms and provisions of this Agreement and such person shall
be entitled to receive the benefits hereof. The Initial Purchaser (in its
capacity as Initial Purchaser) shall have no liability or obligation to the
Company with respect to any failure by a Holder to comply with, or any breach
by any Holder of, any of the obligations of such Holder under this Agreement.

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

     (f) Third Party Beneficiary. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchaser, on the other hand, and shall have the right to enforce such
agreements directly to

-18-

 

the extent it deems such enforcement necessary or
advisable to protect its rights or the rights of Holders hereunder.

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

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

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

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

-19-

 

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

	 	 	 	 	 
	 	FELCOR LODGING TRUST INCORPORATED

 	 
	 	By:  	              /s/ LAWRENCE D. ROBINSON
	 
	 	 	Name:  	Lawrence D. Robinson 	 
	 	 	Title:  	Executive Vice President & General
Counsel 	 
	 
	 	FELCOR LODGING LIMITED PARTNERSHIP

 	 
	 	By:  	FelCor Lodging Trust Incorporated,
 	 
	 	 	General Partner 	 
	 	 	 	 
	 	By:  	              /s/ LAWRENCE D. ROBINSON
 	 
	 	 	Name:  	Lawrence D. Robinson 	 
	 	 	Title:  	Executive Vice President & General
Counsel 	 

S-1

 

	 	 	 	 	 

The foregoing Registration Rights Agreement

is hereby confirmed and accepted as of the

date hereof by:

DEUTSCHE BANK SECURITIES INC.

	 	 	 	 	 
	By:

	 	   /s/ILLEGIBLE
	 	 
	

	 	
 	 	 
	

	 	Name:	 	 
	

	 	Title:	 	 
	 
	 	 	 	 
	By:

	 	   /s/ILLEGIBLE
	 	 
	

	 	
 	 	 
	

	 	Name:	 	 
	

	 	Title:	 	 

S-2

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