Document:

Exhibit 4.1

 Exhibit 4.1 

 
  

CHOICE HOTELS INTERNATIONAL, INC. 
  

 
 FORM OF INDENTURE 

Dated as of [                    ]

  
  

WELLS FARGO BANK, National Association 

Trustee 
  

 

 CROSS-REFERENCE TABLE 

This Cross-Reference Table is not part of the Indenture 
  

			
	TIA Section	  	Indenture Section
	310(a)(1)	  	7.10
	310(a)(2)	  	7.10
	310(a)(3)	  	Not Applicable
	310(a)(4)	  	Not Applicable
	310(a)(5)	  	7.10
	310(b)	  	7.08; 7.10
	311(a)	  	7.11
	311(b)	  	7.11
	312(a)	  	2.7
	312(b)	  	10.3
	312(c)	  	10.3
	313(a)	  	7.6
	313(b)(1)	  	Not Applicable
	313(b)(2)	  	7.6
	313(c)	  	10.2; 7.6
	313(d)	  	7.6
	314(a)	  	4.2; 4.3; 10.2
	314(b)	  	Not Applicable
	314(c)(1)	  	10.4
	314(c)(2)	  	10.4
	314(c)(3)	  	Not Applicable
	314(d)	  	Not Applicable
	314(e)	  	10.5
	314(f)	  	4.4
	315(a)	  	7.1
	315(b)	  	7.5; 10.2
	315(c)	  	7.1
	315(d)	  	7.1
	315(e)	  	6.11
	316(a)(1)	  	6.4; 6.5
	316(a)(2)	  	Not Applicable
	316(b)	  	6.7
	316(c)	  	6.10
	317(a)(1)	  	6.8
	317(a)(2)	  	6.9
	317(b)	  	2.6
	318(a)	  	10.1

 

 TABLE OF CONTENTS 

 

					
	 	 	 	  	Page
	 ARTICLE I DEFINITIONS
	  	1
	 Section 1.1.
	 	 Definitions
	  	1
	 Section 1.2.
	 	 Other Definitions
	  	7
	 Section 1.3.
	 	 Incorporation by Reference of Trust Indenture Act
	  	7
	 Section 1.4.
	 	 Rules of Construction
	  	7
	 ARTICLE II THE SECURITIES
	  	8
	 Section 2.1.
	 	 Issuable in Series
	  	8
	 Section 2.2.
	 	 Establishment of Terms of Series of Notes
	  	8
	 Section 2.3.
	 	 Denominations; Provisions for Payment
	  	10
	 Section 2.4.
	 	 Execution and Authentication
	  	11
	 Section 2.5.
	 	 Registrar and Paying Agent
	  	12
	 Section 2.6.
	 	 Paying Agent To Hold Money in Trust
	  	12
	 Section 2.7.
	 	 Holder Lists
	  	13
	 Section 2.8.
	 	 Transfer and Exchange
	  	13
	 Section 2.9.
	 	 Mutilated, Destroyed, Lost and Stolen Notes
	  	14
	 Section 2.10.
	 	 Outstanding Notes
	  	14
	 Section 2.11.
	 	 Treasury Notes
	  	15
	 Section 2.12.
	 	 Temporary Notes
	  	15
	 Section 2.13.
	 	 Cancellation
	  	15
	 Section 2.14.
	 	 Defaulted Interest
	  	15
	 Section 2.15.
	 	 Global Notes
	  	16
	 Section 2.16.
	 	 CUSIP or ISIN Numbers
	  	17
	 Section 2.17.
	 	 Benefits of Indenture
	  	17
	 ARTICLE III REDEMPTION AND PREPAYMENT
	  	17
	 Section 3.1.
	 	 Notices to Trustee
	  	17
	 Section 3.2.
	 	 Selection of Notes To Be Redeemed
	  	17
	 Section 3.3.
	 	 Notice of Redemption
	  	18
	 Section 3.4.
	 	 Effect of Notice of Redemption
	  	19
	 Section 3.5.
	 	 Deposit of Redemption Price
	  	19
	 Section 3.6.
	 	 Notes Redeemed in Part
	  	19
	 ARTICLE IV COVENANTS
	  	19
	 Section 4.1.
	 	 Payment of Notes
	  	19
	 Section 4.2.
	 	 Provision of Financial Information
	  	19
	 Section 4.3.
	 	 Compliance Certificate
	  	20
	 Section 4.4.
	 	 Further Instruments and Acts
	  	20
	 Section 4.5.
	 	 Corporate Existence
	  	20
	 Section 4.6.
	 	 Calculation of Original Issue Discount
	  	20
	 Section 4.7.
	 	 Limitations on Liens
	  	20
	 Section 4.8.
	 	 Limitations on Sale and Leaseback Transactions
	  	21
	 Section 4.9.
	 	 Exempted Debt
	  	21
	 ARTICLE V SUCCESSORS
	  	21
	 Section 5.1.
	 	 Mergers, Consolidations, Sales
	  	21
	 Section 5.2.
	 	 Successor Substituted
	  	22
	 ARTICLE VI DEFAULTS AND REMEDIES
	  	22
	 Section 6.1.
	 	 Events of Default
	  	22
	 Section 6.2.
	 	 Acceleration
	  	24
	 Section 6.3.
	 	 Other Remedies
	  	24
	 Section 6.4.
	 	 Waiver of Past Defaults
	  	24
	 Section 6.5.
	 	 Control by Majority
	  	25

  

 i 

					
	 Section 6.6.
	 	 Limitation on Suits
	  	25
	 Section 6.7.
	 	 Rights of Holders to Receive Payment
	  	25
	 Section 6.8.
	 	 Collection Suit by Trustee
	  	26
	 Section 6.9.
	 	 Trustee May File Proofs of Claim
	  	26
	 Section 6.10.
	 	 Priorities
	  	26
	 Section 6.11.
	 	 Undertaking for Costs
	  	26
	 Section 6.12.
	 	 Waiver of Stay or Extension Laws
	  	27
	 ARTICLE VII TRUSTEE
	  	27
	 Section 7.1.
	 	 Duties of Trustee
	  	27
	 Section 7.2.
	 	 Rights of Trustee
	  	28
	 Section 7.3.
	 	 Individual Rights of Trustee
	  	29
	 Section 7.4.
	 	 Trustee’s Disclaimer
	  	29
	 Section 7.5.
	 	 Notice of Defaults
	  	29
	 Section 7.6.
	 	 Reports by Trustee to Holder
	  	29
	 Section 7.7.
	 	 Compensation and Indemnity
	  	30
	 Section 7.8.
	 	 Replacement of Trustee
	  	30
	 Section 7.9.
	 	 Successor Trustee by Merger
	  	31
	 Section 7.10.
	 	 Eligibility; Disqualification
	  	31
	 Section 7.11.
	 	 Preferential Collection of Claims Against Company
	  	31
	 ARTICLE VIII LEGAL DEFEASANCE, COVENANT DEFEASANCE AND SATISFACTION AND DISCHARGE
	  	32
	 Section 8.1.
	 	 Option To Effect Legal Defeasance or Covenant Defeasance
	  	32
	 Section 8.2.
	 	 Legal Defeasance and Discharge
	  	32
	 Section 8.3.
	 	 Covenant Defeasance
	  	32
	 Section 8.4.
	 	 Conditions to Legal or Covenant Defeasance
	  	33
	 Section 8.5.
	 	 Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions
	  	33
	 Section 8.6.
	 	 Repayment to Company
	  	34
	 Section 8.7.
	 	 Satisfaction and Discharge of Indenture
	  	34
	 Section 8.8.
	 	 Reinstatement
	  	35
	 ARTICLE IX AMENDMENTS
	  	35
	 Section 9.1.
	 	 Without Consent of Holders
	  	35
	 Section 9.2.
	 	 With Consent of Holders
	  	36
	 Section 9.3.
	 	 Revocation and Effect of Consents and Waivers
	  	37
	 Section 9.4.
	 	 Notation on or Exchange of Notes
	  	37
	 Section 9.5.
	 	 Trustee to Sign Amendments
	  	37
	 Section 9.6.
	 	 Payment for Consent
	  	38
	 ARTICLE X MISCELLANEOUS
	  	39
	 Section 10.1.
	 	 Trust Indenture Act Controls
	  	39
	 Section 10.2.
	 	 Notices
	  	39
	 Section 10.3.
	 	 Communication by Holders with Other Holders
	  	39
	 Section 10.4.
	 	 Certificate and Opinion as to Conditions Precedent
	  	39
	 Section 10.5.
	 	 Statements Required in Certificate or Opinion
	  	40
	 Section 10.6.
	 	 Rules by Trustee, Paying Agent and Registrar
	  	40
	 Section 10.7.
	 	 Legal Holidays
	  	40
	 Section 10.8.
	 	 Governing Law
	  	40
	 Section 10.9.
	 	 No Recourse Against Others
	  	40
	 Section 10.10.
	 	 Successors
	  	40
	 Section 10.11.
	 	 Multiple Originals; Electronic Signatures
	  	40
	 Section 10.12.
	 	 Waiver of Jury Trial
	  	40
	 Section 10.13.
	 	 Table of Contents; Headings
	  	41
	 Section 10.14.
	 	 Severability
	  	41
	 Section 10.15.
	 	 Submission to Jurisdiction and Venue
	  	41

  

 ii 

					
	 Section 10.16.
	 	 Force Majeure
	  	41
	 Section 10.17.
	 	 U.S.A. Patriot Act
	  	41
	 Section 10.18.
	 	 Acts of Holders
	  	41

  

 iii 

 INDENTURE dated as of
[                    ], between CHOICE HOTELS INTERNATIONAL, INC., a corporation organized under the laws of Delaware (the
“Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America, as trustee (the “Trustee”). 

The Company and the Trustee agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders of the
Notes authenticated and delivered under this Indenture (the “Notes”): 
 ARTICLE I  

DEFINITIONS 

Section 1.1. Definitions. The following terms shall have the following meanings: 

“Affiliate” means, as to any Person, any other Person which, directly or indirectly, is in control of, is controlled by,
or is under common control with, such Person. For purposes of this definition, a Person shall be deemed to be “controlled by” a Person if such Person possesses, directly or indirectly, power to direct or cause the direction of the
management and policies of such Person whether by contract or otherwise. 
 “Agent” means any Registrar, Paying
Agent or co-registrar. 
 “Attributable Indebtedness” in respect of a Sale and Leaseback Transaction means, at
any date of determination, (a) if such Sale and Leaseback Transaction is a Capitalized Lease Obligation, the amount of Indebtedness represented thereby according to the definition of “Capitalized Lease Obligations” and (b) in all
other instances, the present value of the total obligations of the lessee for rental payments during the remaining term of the lease included in such Sale and Leaseback Transaction (including any period for which such lease has been extended)
determined in accordance with GAAP, discounted at a rate that at the inception of the lease the lessee would have incurred to borrow over a similar term the funds necessary to purchase the leased assets. 

“Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief of debtors. 

“Board of Directors” means the Board of Directors of the Company (or, if the Company is not a corporation, the board or
committee of the Company serving a similar function), or any authorized committee thereof. 
 “Board
Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and
effect on the date of the certificate and delivered to the Trustee. 
 “Business Day” means, unless otherwise
provided by Board Resolutions, Officers’ Certificate or supplemental indenture hereto for a particular Series, any day other than a Legal Holiday. 

“Capital Lease” means any lease of any Principal Property that is accounted for as a capital lease on the consolidated
balance sheet of the Company and its Subsidiaries prepared in accordance with GAAP. 
  

 1 

 “Capitalized Lease Obligations” of any Person means the obligations of such
Person to pay rent or other amounts under a lease that is accounted for as a Capital Lease, and the amount of such obligation shall be the capitalized amount thereof determined in accordance with GAAP. 

“Capital Stock” means (i) in the case of a corporation, capital stock, (ii) in the case of an association or
business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (iii) in the case of a partnership, partnership interests (whether general or limited), (iv) in the case of
a limited liability company, membership interests and (v) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distribution of assets of, the issuing Person (excluding
hypothetical shares of stock of the Company issued to employees as part of a “phantom stock” or similar compensation plan). 

“Clearstream” means Clearstream Banking, société anonyme, or any successor thereto. 

“Company” means Choice Hotels International, Inc., until a successor replaces it and thereafter means only the
successor. 
 “Company Order” means a written order signed in the name of the Company by two Officers, one of
whom must be the Company’s principal executive officer, principal financial officer or principal accounting officer. 

“Consolidated Net Assets” means the consolidated total assets of the Company and its Subsidiaries, after deducting
therefrom all current liabilities of the Company and its Subsidiaries (other than the current portion of long-term Indebtedness of the Company and its Subsidiaries and Capitalized Lease Obligations of the Company and its Subsidiaries), all as set
forth on the latest consolidated balance sheet of the Company prepared in accordance with GAAP. 
 “Corporate Trust
Office of the Trustee” shall be the address of the Trustee specified in Section 10.2 hereof or such other address at which at any particular time its corporate trust business is principally administered. 

“Custodian” means the Trustee, as custodian for the Depositary with respect to the Notes in global form, or any
successor entity thereto. 
 “Default” means any event that is, or after notice or passage of time or both
would be, an Event of Default. 
 “Depositary” means, with respect to the Notes issuable or issued in whole or
in part in global form, the Person specified in Section 2.15 hereof as the Depositary with respect to the Notes, and any and all successors thereto appointed as depositary hereunder and having become such pursuant to the applicable provision of
this Indenture, and, if at any time there is more than one such person, “Depositary” as used with respect to the Notes of any Series shall mean the Depositary with respect to the Notes of such Series. 

“Dollar” means a dollar or other equivalent unit in such coin or currency of the United States of America as at the time
shall be legal tender for the payment of public and private debt. 
 “Euroclear” means Euroclear Bank
S.A./N.V., as operator of the Euroclear system, or any successor thereto. 
  

 2 

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

 “Funded Debt” means all Indebtedness of the Company and its Subsidiaries with a stated maturity more than
one year after, or which is renewable or extendable at the option of the Company for a period ending more than one year after, the date as of which Funded Debt is being determined. 

“GAAP” means generally accepted accounting principles in the United States of America as in effect on the date hereof,
including those principles set forth in (i) the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants, (ii) statements and pronouncements of the Financial Accounting
Standards Board, (iii) such other statements by such other entity as approved by a significant segment of the accounting profession and (iv) the rules and regulations of the SEC governing the inclusion of financial statements (including
pro forma financial statements) in periodic reports required to be filed pursuant to Section 13 of the Exchange Act, including opinions and pronouncements in staff accounting bulletins and similar written statements from the accounting staff of
the SEC. 
 “Global Note” when used with respect to any Series of Notes issued hereunder, means, individually
and collectively, Notes executed by the Company and authenticated and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction, all in accordance with this Indenture and an indenture supplemental hereto, if any, or
Board Resolution and pursuant to a Company Order, which shall be registered in the name of the Depositary or its nominee and which shall represent the amount of Notes as specified therein and which shall bear the Global Note Legend. 

“Global Note Legend” means the legend set forth in Section 2.15(c), which is required to be placed on all Global
Notes issued under this Indenture. 
 “Government Securities” means direct obligations of, or obligations
guaranteed by, the United States of America, and the payment for which the United States of America pledges its full faith and credit. 

“Governmental Authority” means any nation or government, any state or other political subdivision thereof and any entity
exercising executive, legislative, judicial, regulatory or administrative functions of government. 
 “Holder”
means a Person in whose name a Note is registered on the Registrar’s books. 
 “Indebtedness” means, with
respect to any Person, indebtedness of, or guaranteed or assumed by, the Person for borrowed money, including indebtedness evidenced by bonds, debentures, notes or other similar instruments and reimbursement and cash collateralization of letters of
credit, bankers’ acceptances, interest rate hedge and currency hedge agreements, if any such indebtedness would appear as a liability upon a consolidated balance sheet of the Person and its Subsidiaries prepared in accordance with GAAP (not
including contingent liabilities that appear only in a footnote to such balance sheet). 
 “Indenture” means
this Indenture, as amended or supplemented from time to time. 
 “Interest Payment Date” when used with respect
to any Series of Notes, means the date specified in such Notes for the payment of any installment of interest on those Notes. 
  

 3 

 “Internal Revenue Code” means the Internal Revenue Code of 1986, as
amended, and the regulations thereunder. 
 “Lien” means, with respect to any Property or assets, any mortgage
or deed of trust, pledge, hypothecation, assignment, security interest, lien, encumbrance, or other security arrangement of any kind or nature whatsoever on or with respect to such property or assets (including any conditional sale or other title
retention agreement having substantially the same economic effect as any of the foregoing). 
 “Maturity” when
used with respect to any Note or installment of principal thereof, means the date on which the principal of such Note or such installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, call for redemption, notice of option to elect repayment or otherwise. 
 “Non-Recourse
Indebtedness” means any Indebtedness the terms of which provide that the lender’s claim for repayment of such Indebtedness is limited solely to the single Property or group of related properties that secure such Indebtedness.

 “Notes” has the meaning assigned to it in the preamble to this Indenture. 

“Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the
Chief Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary, any Assistant Secretary or any Vice-President of such Person. 

“Officers’ Certificate” means a certificate signed on behalf of the Company by two Officers of the Company, one of
whom must be the principal executive officer, the principal financial officer or the principal accounting officer of the Company, that meets the requirements of Sections 10.4 and 10.5 hereof and delivered to the Trustee. 

“Opinion of Counsel” means an opinion from legal counsel, that meets the requirements of Section 10.4 and 10.5
hereof. The counsel may be an employee of or counsel to the Company, any Subsidiary of the Company or the Trustee. 

“Original Issue Discount Note” means any Note that provides for an amount less than the stated principal amount thereof
to be due and payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2. 

“Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who has an account with the
Depositary, Euroclear or Clearstream, respectively (and, with respect to The Depository Trust Company, shall include Euroclear and Clearstream or other indirect participants in The Depository Trust Company serving a similar function). 

“Permitted Liens” means: 

(a) Liens existing on the date of this Indenture; 

(b) Liens in favor of the Company or a Restricted Subsidiary; 

(c) Liens on any Property existing at the time of the acquisition thereof; 

 

 4 

 (d) Liens on any Property of a Person or its subsidiaries existing at the time such Person
is consolidated with or merged into the Company or a Restricted Subsidiary, or Liens on any Property of a Person existing at the time such Person becomes a Restricted Subsidiary; 

(e) Liens to secure all or part of the cost of acquisition (including Liens created as a result of an acquisition by way of Capitalized
Lease Obligations), construction, development or improvement of the underlying Property, or to secure Indebtedness incurred to provide funds for any such purposes; provided, that the commitment of the creditor to extend the credit secured by
any such Lien shall have been obtained not later than 18 months after the later of (A) the completion of the acquisition, construction, development or improvement of such Property and (B) the placing in operation of such Property or of
such Property as so constructed, developed or improved; 
 (f) Liens securing industrial revenue, pollution control or similar
bonds; and 
 (g) any extension, renewal or replacement (including successive extensions, renewals and replacements), in whole
or in part, of any Lien referred to in any of clauses (a) through (f) of this definition of Permitted Liens that would not otherwise be permitted pursuant to any of clauses (a) through (f) of this definition of Permitted Liens,
to the extent that (A) the principal amount of Indebtedness secured thereby and not otherwise permitted to be secured pursuant to any of clauses (a) through (f) of this definition of Permitted Liens does not exceed the principal
amount of Indebtedness, plus any premium or fee payable in connection with any such extension, renewal or replacement, so secured at the time of any such extension, renewal or replacement, except that where (1) the Indebtedness so secured at
the time of any such extension, renewal or replacement was incurred for the sole purpose of financing a specific project and (2) additional Indebtedness is to be incurred in connection with such extension, renewal or replacement solely to
finance the completion of the same project, the additional Indebtedness may also be secured by such Lien; and (B) the Property that is subject to the Lien serving as an extension, renewal or replacement is limited to some or all of the Property
that was subject to the Lien so extended, renewed or replaced. 
 “Person” means any individual, corporation,
partnership, limited liability company, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 

“Principal Property” means (i) a parcel of improved or unimproved real estate or other physical facility or
depreciable asset of the Company or a consolidated Subsidiary of the Company, the net book value of which on the date of determination exceeds 7.5% of Consolidated Net Assets and (ii) any group of parcels of real estate, other physical
facilities, and/or depreciable assets of the Company and/or its consolidated Subsidiaries, the net book value of which, when sold in one or a series of related Sale and Leaseback Transactions or securing Indebtedness issued in respect of such
Principal Properties, on the date of determination exceeds 7.5% of the Consolidated Net Assets. For purposes of the foregoing, “related Sale and Leaseback Transactions” refers to any two or more such contemporaneous transactions which are
on substantially similar terms with substantially the same parties. 
 “Property” means, with respect to any
Person, all types of real, personal, tangible, intangible or mixed property owned by such Person whether or not included in the most recent consolidated balance sheet of such Person and its Subsidiaries under GAAP. 

“Responsible Officer” with respect to the Trustee, means any Vice President, any Assistant Vice President, any Trust
Officer or Assistant Trust Officer, or any other officer of the Trustee who (i) (A) is assigned by the Trustee to administer its corporate trust matters and who customarily performs functions similar to those performed by such Persons who
at the time shall be such 
  

 5 

 
officers, respectively, or (B) to whom any corporate trust matter is referred because of such Person’s knowledge of and familiarity with the particular subject or (ii) has direct
responsibility for the administration of this Indenture. 
 “Restricted Subsidiary” means any Subsidiary of the
Company which owns, operates or leases Principal Property. 
 “Sale and Leaseback Transaction” means any
arrangement with any Person (other than the Company or any Subsidiary of the Company) providing for the leasing by the Company or a Restricted Subsidiary of the Company of any Principal Property owned by the Company or such Restricted Subsidiary
(except for leases for a term of not more than three years), which property has been or is to be sold or transferred by the Company or such Restricted Subsidiary to such Person on the security of such Principal Property more than 365 days after the
acquisition thereof or the completion of construction and commencement of full operation thereof. 
 “SEC”
means the Securities and Exchange Commission. 
 “Securities Act” means the Securities Act of 1933, as amended.

 “Series” or “Series of Notes” means each series of debentures, notes or other debt
instruments of the Company created pursuant to Sections 2.1 and 2.2 hereof. 
 “Significant Subsidiary”
means each Subsidiary of the Company which is a “significant subsidiary” of the Company as defined in Rule 1-02 of Regulation S-X under the Securities Act. 

“Stated Maturity” when used with respect to any Note, means the date specified in such Note as the fixed date on which
an amount equal to the principal amount of such Note is due and payable. 
 “Subsidiary” in respect of any
Person, means (i) any Person of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the
time owned or controlled, directly or indirectly, by any Person or one or more of the Subsidiaries of that Person or a combination thereof, and (ii) any partnership, joint venture or other Person in which such Person or one or more of the
Subsidiaries of that Person or a combination thereof has the power to control by contract or otherwise the board of directors or equivalent governing body or otherwise controls such entity. 

“TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) and the rules and regulations
thereunder as in effect on the date on which this Indenture is qualified under the TIA; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by
any such amendment, the Trust Indenture Act as so amended. 
 “Trustee” means the party named as such above
until a successor replaces it in accordance with the applicable provisions of this Indenture and thereafter means the successor serving hereunder, and if at any time there is more than one such person, “Trustee” as used with respect to the
Notes of any Series shall mean the Trustee with respect to Notes of that Series. 
  

 6 

 Section 1.2. Other Definitions. 

 

			
	 Term
	  	Defined in Section
	 “Covenant Defeasance”
	  	8.3
	 “Event of Default”
	  	6.1
	 “Legal Defeasance”
	  	8.2
	 “Legal Holiday”
	  	10.7
	 “OID”
	  	4.6
	 “Paying Agent”
	  	2.5
	 “Registrar”
	  	2.5
	 “Regular Record Date”
	  	2.3
	 “Service Agent”
	  	2.5

 Section 1.3.
Incorporation by Reference of Trust Indenture Act. When qualified under the TIA, this Indenture shall be subject to the mandatory provisions of the TIA, which are incorporated by reference in and made a part of this Indenture. Whether or not
this Indenture is so qualified, the following TIA terms used in this Indenture have the following meanings: 
 “indenture
securities” means the Notes; 
 “indenture security Holder” means a Holder of a Note; 

“indenture to be qualified” means this Indenture; 

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

“obligor” on the Notes means the Company, until a successor replaces it and thereafter means the successor. 

When qualified under the TIA, all other terms used in this Indenture that are defined by the TIA, defined by the TIA’s reference to
another statute or defined by SEC rule under the TIA shall have the meanings so assigned to them. 
 Section 1.4. Rules
of Construction. Unless the context otherwise requires: 
 (1) a term has the meaning assigned to it; 

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

(3) “or” is not exclusive; 

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

(5) provisions apply to successive events and transactions; and 

(6) references to sections of or rules under the Securities Act shall be deemed to include substitute, replacement or successor
sections or rules adopted by the SEC from time to time. 
  

 7 

 ARTICLE II  

THE SECURITIES 

Section 2.1. Issuable in Series. The aggregate principal amount of Notes that may be authenticated and delivered under this
Indenture is unlimited. The Notes may be issued in one or more Series. All Notes of a Series shall be identical except as may be set forth in a Board Resolution, a supplemental indenture or an Officers’ Certificate detailing the adoption of the
terms thereof pursuant to the authority granted under a Board Resolution. In the case of Notes of a Series to be issued from time to time, the Board Resolution, supplemental indenture or Officers’ Certificate may provide for the method by which
specified terms (such as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined. Notes may differ between Series in respect of any matters. 

Section 2.2. Establishment of Terms of Series of Notes. At or prior to the issuance of any Notes within a Series, the Company
may establish (as to the Series generally, in the case of Subsection 2.2(a) and 2.2(b) and either as to such Notes within the Series or as to the Series generally in the case of Subsections 2.2(c) through 2.2(aa)) by a Board Resolution, a
supplemental indenture or an Officers’ Certificate pursuant to authority granted under a Board Resolution the following terms applicable to such Notes: 

(a) the principal amount offered; 

(b) the title of the Notes of the Series (which shall distinguish the Notes of that particular Series from the Notes of any other
Series); 
 (c) any limit upon the aggregate principal amount of the Notes of the Series which may be authenticated and
delivered under this Indenture (except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes of the Series); 

(d) the date or dates on which the principal and premium, if any, of the Notes of the Series are payable; 

(e) the rate or rates (which may be fixed or variable per annum) at which the Notes of the Series shall bear interest, if any, or the
method of determining such rate or rates, the date or dates from which such interest, if any, shall accrue, the Interest Payment Dates on which such interest, if any, shall be payable or the method by which such dates will be determined, the record
dates, for the determination of Holders thereof to whom such interest is payable (in the case of Notes in registered form), and the basis upon which such interest will be calculated if other than that of a 360-day year of twelve 30-day months;

 (f) the currency or currencies, including composite currencies in which Notes of the Series shall be denominated, if
other than Dollars; 
 (g) the place or places, if any, in addition to or instead of the Corporate Trust Office of the Trustee
(in the case of Notes in registered form) or the principal New York office of the Trustee (in the case of Notes in bearer form), where the principal, premium and interest with respect to Notes of such Series shall be payable or the method of such
payment, if by wire transfer, mail or other means; 
 (h) whether Notes of the Series are to be issued in registered form or
bearer form or both and, if Notes are to be issued in bearer form, whether coupons will be attached to them, whether Notes of the Series in bearer form may be exchanged for Notes of the Series issued in registered form, and the circumstances under
which and the places at which any such exchanges, if permitted, may be made; 
  

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 (i) if any Notes of the Series are to be issued in bearer form or as one or more Global
Notes representing individual Notes of the Series in bearer form, whether certain provisions for the payment of additional interest or tax redemptions shall apply; whether interest with respect to any portion of a temporary Note of the Series in
bearer form payable with respect to any Interest Payment Date prior to the exchange of such temporary Note in bearer form for definitive Notes of the Series in bearer form shall be paid to any clearing organization with respect to the portion of
such temporary Note in bearer form held for its account and, in such event, the terms and conditions (including any certification requirements) upon which any such interest payment received by a clearing organization will be credited to the Persons
entitled to interest payable on such Interest Payment Date; and the terms upon which a temporary Note in bearer form may be exchanged for one or more definitive Notes of the Series in bearer form; 

(j) the obligation, if any, of the Company to redeem, purchase or repay the Notes of the Series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof and the price or prices at which, the period or periods within which, and the terms and conditions upon which, Notes of the Series shall be redeemed, purchased or repaid, in whole or in part, pursuant
to such obligations; 
 (k) the terms, if any, upon which the Notes of the Series may be convertible into or exchanged for any
of the Company’s common stock, preferred stock, other debt securities or warrants for common stock, preferred stock or other securities of any kind and the terms and conditions upon which such conversion or exchange shall be effected, including
the initial conversion or exchange price or rate, the conversion or exchange period and any other additional provisions; 
 (l)
if other than denominations of $2,000 and any integral multiple of $1,000 in excess thereof, the denominations in which the Notes of the Series shall be issuable; 

(m) if the amount of principal, premium or interest with respect to the Notes of the Series may be determined with reference to an index
or pursuant to a formula, the manner in which such amounts will be determined; 
 (n) if the principal amount payable at the
Stated Maturity of Notes of the Series will not be determinable as of any one or more dates prior to such Stated Maturity, the amount that will be deemed to be such principal amount as of any such date for any purpose, including the principal amount
thereof which will be due and payable upon any Maturity other than the Stated Maturity and which will be deemed to be outstanding as of any such date (or, in any such case, the manner in which such deemed principal amount is to be determined), and
if necessary, the manner of determining the equivalent thereof in Dollars; 
 (o) any changes or additions to Article VIII;

 (p) if other than the principal amount thereof, the portion of the principal amount of the Notes of the Series that shall be
payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2; 
 (q) the terms, if any, of the
transfer, mortgage, pledge or assignment as security for the Notes of the Series of any properties, assets, moneys, proceeds, securities or other collateral, including whether any provisions of the TIA are applicable and any corresponding changes to
provisions of this Indenture as then in effect; 
  

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 (r) any addition to or change in the Events of Default which applies to any Notes of the
Series and any change in the right of the Trustee or the requisite Holders of such Series of Notes to declare the principal amount of, premium, if any, and interest on such Series of Notes due and payable pursuant to Section 6.2; 

(s) if the Notes of the Series shall be issued in whole or in part in the form of a Global Note, the terms and conditions, if any, upon
which such Global Note may be exchanged in whole or in part for other individual Notes of such Series, the Depositary for such Global Note and the form of any legend or legends to be borne by any such Global Note in addition to or in lieu of the
Global Note Legend; 
 (t) any Trustee, authenticating agent, Paying Agent, transfer agent, Service Agent or Registrar;

 (u) the applicability of, and any addition to or change in, the covenants (and the related definitions) set forth in Articles
IV or V which applies to Notes of the Series; 
 (v) with regard to Notes of the Series that do not bear interest, the dates for
certain required reports to the Trustee; 
 (w) the intended United States Federal income tax consequences of the Notes;

 (x) the terms applicable to Original Issue Discount Notes, including the rate or rates at which original issue discount will
accrue; 
 (y) whether and the extent to which the Notes will be guaranteed, the ranking of any such guarantee, the manner in
which such guarantees may be terminated and the form of any such guarantee; 
 (z) whether the Notes will be secured, and if so,
the property covered by the security interest, the priority of the security interest, the method of perfecting the security interest and any escrow arrangements related to the security interest; and 

(aa) any other terms of Notes of the Series (which terms shall not be prohibited by the provisions of this Indenture). 

All Notes of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this
Indenture, if so provided by or pursuant to the Board Resolution, supplemental indenture or Officers’ Certificate referred to above, and the authorized principal amount of any Series may not be increased to provide for issuances of additional
Notes of such Series, unless otherwise provided in such Board Resolution, supplemental indenture or Officers’ Certificate. 

Section 2.3. Denominations; Provisions for Payment. The Notes shall be issuable, except as otherwise provided with respect to
any Series of Notes pursuant to Section 2.2, as registered Notes in the denominations of two thousand Dollars ($2,000) or any integral multiple of one thousand Dollars ($1,000) in excess thereof, subject to Section 2.2(l). The Notes of any
Series shall bear interest payable on the dates and at the rate specified with respect to that Series. Unless otherwise provided as contemplated by Section 2.2 with respect to Notes of any Series, the principal of and the interest on the Notes
of any Series, as well as any premium thereon in case of redemption thereof prior to maturity, shall be payable in Dollars. Such payment shall be made at the office or agency of the Company maintained for that purpose in the Borough of Manhattan,
the City 
  

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and State of New York. Each Note shall be dated the date of its authentication. Unless otherwise provided as contemplated by Section 2.2, interest on the Notes shall be computed on the basis
of a 360-day year composed of twelve 30-day months. 
 The interest installment on any Note that is payable, and is punctually
paid or duly provided for, on any Interest Payment Date for Notes of that Series shall be paid to the Person in whose name said Note (or one or more predecessor Notes) is registered at the close of business on the Regular Record Date for such
interest installment. In the event that any Note of any Series or portion thereof is called for redemption and the redemption date is subsequent to a Regular Record Date with respect to any Interest Payment Date and prior to such Interest Payment
Date, interest on such Note will be paid upon presentation and surrender of such Note as provided in Section 3.5 and Section 3.6. 

Unless otherwise set forth in a Board Resolution, a supplemental indenture or an Officers’ Certificate establishing the terms of any
Series of Notes pursuant to Section 2.2 hereof, the term “Regular Record Date” as used in this Section with respect to Notes of any Series with respect to any Interest Payment Date for such Series shall mean (i) either the
fifteenth day of the month immediately preceding the month in which an Interest Payment Date established for such Series pursuant to Section 2.2 hereof shall occur, if such Interest Payment Date is the first day of a month or (ii) the last
day of the month immediately preceding the month in which an Interest Payment Date established for such Series pursuant to Section 2.2 hereof shall occur, if such Interest Payment Date is the fifteenth day of a month, whether or not such date
is a Business Day. 
 Subject to the foregoing provisions of this Section, each Note of a Series delivered under this Indenture
upon transfer of or in exchange for or in lieu of any other Note of such Series shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Note. 

Section 2.4. Execution and Authentication. One or more Officers shall sign the Notes for the Company by manual or facsimile
signature. If an Officer whose signature is on a Note no longer holds that office at the time the Note is authenticated, the Note shall nevertheless be valid. A Note shall not be valid until authenticated by the manual signature of the Trustee or an
authenticating agent. The signature shall be conclusive evidence that the Note has been authenticated under this Indenture. The Notes may contain such notations, legends or endorsements required by law, stock exchange rule or usage. 

The Trustee shall at any time, and from time to time, authenticate Notes for original issue in the principal amount provided in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate, upon receipt by the Trustee of a Company Order. Such Company Order shall specify the amount of Notes to be authenticated, the date on which the issue of Notes is to be
authenticated, the number of separate Notes to be authenticated, the registered holder of each Note and delivery instructions. Each Note shall be dated the date of its authentication unless otherwise provided by a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate. 
 The aggregate principal amount of Notes of any Series outstanding at any
time may not exceed any limit upon the maximum principal amount for such Series set forth in the Board Resolution, supplemental indenture hereto or Officers’ Certificate delivered pursuant to Section 2.2, except as provided in
Section 2.9. 
 Prior to the issuance of Notes of any Series, the Trustee shall have received and (subject to
Section 7.2) shall be fully protected in conclusively relying on: (a) the Board Resolution, supplemental indenture hereto or Officers’ Certificate establishing the form of the Notes of that Series or of Notes within that Series and
the terms of the Notes of that Series or of Notes within that Series, (b) an Officers’ Certificate complying with Section 10.4, and (c) an Opinion of Counsel complying with Section 10.4. 

 

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 The Trustee shall have the right to decline to authenticate and deliver any Notes of such
Series: (a) if the Trustee, being advised by counsel, determines that such action may not lawfully be taken; or (b) if the Trustee in good faith shall determine that such action would expose the Trustee to personal liability to Holders of
any then outstanding Series of Notes or otherwise exposes the Trustee to liability hereunder or under any Series of Notes. 

The Trustee may appoint an authenticating agent acceptable to the Company 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 agent. An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate of the
Company. 
 Section 2.5. Registrar and Paying Agent. So long as Notes of any Series remaining outstanding, the
Company agrees to maintain an office or agency in the Borough of Manhattan, the City and State of New York (or any other place or places specified with respect to such Series pursuant to Section 2.2), where Notes of such Series may be presented
or surrendered for payment (“Paying Agent”), where Notes of such Series may be presented for registration of transfer or exchange (“Registrar”). The Registrar shall keep a register with respect to each Series of Notes and to
their transfer and exchange. The Company shall appoint a service agent where notices and demands to or upon the Company in respect of the Notes of such Series and this Indenture may be served (“Service Agent”). The Company hereby
appoints the Trustee as the initial Registrar, Paying Agent and Service Agent for each Series unless another Registrar, Paying Agent or Service Agent, as the case may be, is appointed prior to the time Notes of that Series are first issued. The
Company will give prompt written notice to the Trustee of the name and address, and any change in the name or address, of each Registrar, Paying Agent or Service Agent. If at any time the Company shall fail to maintain any such required Registrar,
Paying Agent or Service Agent or shall fail to furnish the Trustee with the name and address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands. 
 The Company may also
from time to time designate one or more co-registrars, additional paying agents or additional service agents and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any
manner relieve the Company of its obligations to maintain a Registrar, Paying Agent and Service Agent in each place so specified pursuant to Section 2.2 for Notes of any Series for such purposes. The Company will give prompt written notice to
the Trustee of any such designation or rescission and of any change in the name or address of any such co-registrar, additional paying agent or additional service agent. The term “Registrar” includes any co-registrar; the term “Paying
Agent” includes any additional paying agent; and the term “Service Agent” includes any additional service agent. 

Section 2.6. Paying Agent To Hold Money in Trust. Prior to 11:00 am (New York City Time) on each due date for payment of
principal and interest on the Notes, the Company shall deposit with the Paying Agent a sum sufficient to pay such principal and interest when so becoming due. The Company shall require each Paying Agent, other than the Trustee, to agree in writing
that the Paying Agent will hold in trust, for the benefit of Holders of any Series of Notes, or the Trustee, all money held by the Paying Agent for the payment of principal of or interest on the Series of Notes, and will notify the Trustee of any
default by the Company in making any such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. Notwithstanding anything in this Section to the contrary, (i) the agreement
to hold sums in 
  

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trust as provided in this Section is subject to the provisions of Section 8.6, and (ii) the Company may at any time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or direct any paying agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same terms and conditions as those upon which such
sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent (if other than the Company or a Subsidiary) shall be released from all further liability with respect to the money. If
the Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of Holders of any Series of Notes all money held by it as Paying Agent. 

Section 2.7. Holder Lists. (a) The Trustee shall preserve in as current a form as is reasonably practicable the most
recent list available to it of the names and addresses of Holders of each Series of Notes and the Company undertakes to provide, or cause the Depositary to provide, such a list at the Trustee’s reasonable request but in any case no more often
than at stated intervals of six months, unless the Company and the Trustee shall otherwise agree. 
 (b) If the Trustee is not
the Registrar, the Company shall furnish to the Trustee at least 10 days before each Interest Payment Date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require,
of the names and addresses of Holders of each Series of Notes. The Trustee may destroy any list furnished to it as provided in Section 2.7(a) upon receipt of a new list so furnished. 

Section 2.8. Transfer and Exchange. When Notes of a Series are presented to the Registrar with a request to register a
transfer or to exchange them for an equal principal amount of Notes of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met. To permit registrations of transfers and
exchanges, the Trustee shall authenticate Notes at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange (except as otherwise expressly permitted herein), but the Company may require payment from
the transferring or exchanging Holder, as the case may be, of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable upon
exchanges pursuant to Sections 2.12, 3.6 or 9.4). At the option of the Holder, Notes may be exchanged for other Notes of the same Series in any authorized denomination or denominations and of a like aggregate principal amount, upon surrender of
the Notes to be exchanged. 
 Neither the Company nor the Registrar shall be required (a) to issue, register the transfer
of, or exchange Notes of any Series for the period beginning at the opening of business 15 days immediately preceding the mailing of a notice of redemption of Notes of that Series selected for redemption and ending at the close of business on the
day of such mailing, or (b) to register the transfer or exchange of Notes of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Notes selected, called or being called for redemption
in part. 
 All Notes presented or surrendered for exchange or registration of transfer, as provided in this Section 2.8,
shall be accompanied by a written instrument or instruments of transfer, in the form set forth in a Board Resolution, the supplemental indenture or Officers’ Certificate authorizing such Series of Notes and satisfactory to the Company or the
Registrar, duly executed by the registered holder or by such holder’s duly authorized attorney in writing. 
 The
provisions of this Section 2.8 are, with respect to any Global Note, subject to Section 2.15 hereof. 
  

 13 

 The Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Notes (including any transfers between or among Depositary Participants or beneficial owners of
interests in any Global Note) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same
to determine substantial compliance as to form with the express requirements hereof. 
 Neither the Trustee nor any Agent shall
have any responsibility for any actions taken or not taken by the Depositary. 
 Section 2.9. Mutilated, Destroyed, Lost
and Stolen Notes. If any mutilated Note is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Note of the same Series and of like tenor and principal amount and bearing
a number not contemporaneously outstanding. 
 If there shall be delivered to the Company and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Note and (ii) such security or indemnity as required by them to save each of them and any agent of either of them harmless, then, in the absence of written notice to the Company or the
Trustee that such Note has been acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Note, a new Note of the
same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding. 
 In case any such
mutilated, destroyed, lost or stolen Note has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Note, pay such Note (without surrender thereof except in the case of a mutilated Note) if the
applicant for such payment shall furnish to the Company and the Trustee such security or indemnity as shall be required by them to save each of them and any agent of either of them harmless, and, in case of destruction, loss or theft, evidence to
their satisfaction of the destruction, loss or theft of such Note and of the ownership thereof. 
 Upon the issuance of any new
Note under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith. 
 Every new Note of any Series issued pursuant to this Section in lieu of any destroyed, lost or stolen Note shall
constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes of that Series duly issued hereunder. 
 The provisions of this Section are
exclusive and shall preclude (to the extent lawful) any and all other rights and remedies, notwithstanding any law or statute existing or hereafter enacted to the contrary, with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Notes, negotiable instruments or other securities. 
 Section 2.10. Outstanding Notes. The Notes outstanding
at any time are all the Notes authenticated by the Trustee except for those canceled by it, those paid pursuant to Section 2.9 delivered to it for cancellation, those reductions in the interest on a Global Note effected by the Trustee in
accordance with the provisions hereof and those described in this Section 2.10 as not outstanding. 
  

 14 

 If a Note is replaced pursuant to Section 2.9, it ceases to be outstanding until the
Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser. 
 If the Paying Agent (other
than the Company, a Subsidiary of the Company or an Affiliate of any thereof) holds on the Maturity of Notes of a Series money sufficient to pay such Notes payable on that date, then on and after that date such Notes of the Series cease to be
outstanding and interest on them ceases to accrue. 
 A Note does not cease to be outstanding because the Company or an
Affiliate of the Company holds the Note. 
 In determining whether the Holders of the requisite principal amount of outstanding
Notes have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of an Original Issue Discount Note that shall be deemed to be outstanding for such purposes shall be the amount of the
principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.2. 

Section 2.11. Treasury Notes. In determining whether the Holders of the required principal amount of Notes of a Series have
concurred in any request, demand, authorization, direction, notice, consent or waiver, Notes of a Series owned by the Company or an Affiliate of the Company shall be disregarded, except that for the purposes of determining whether the Trustee shall
be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver only Notes of a Series that a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded. Subject to the foregoing,
only Notes outstanding at the time shall be considered in any such determination. 
 Section 2.12. Temporary Notes.
Until definitive Notes are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Notes upon a Company Order. Temporary Notes shall be substantially in the form of definitive Notes but may have variations that the
Company considers appropriate for temporary Notes. Without unreasonable delay, the Company shall prepare and the Trustee upon written request shall authenticate definitive Notes of the same Series and date of maturity in exchange for temporary
Notes. Until so exchanged, temporary Notes shall have the same rights under this Indenture as the definitive Notes. 

Section 2.13. Cancellation. The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and the
Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of transfer, exchange or payment. The Trustee shall cancel all Notes surrendered for transfer, exchange, payment, replacement or cancellation and shall dispose
of such canceled Notes in accordance with its customary procedures (subject to the record retention requirement of the Exchange Act) and deliver a certificate of such destruction to the Company, upon the written request of the Company. The Company
may not issue new Notes to replace Notes that it has paid or delivered to the Trustee for cancellation. 
 Section 2.14.
Defaulted Interest. If the Company defaults in a payment of interest on a Series of Notes, it shall pay the defaulted interest, plus, to the extent permitted by law and if the terms of such Series so provide, any interest payable on the
defaulted interest, to the persons who are Holders of the Series on a subsequent special record date. The Company shall fix the special record date and payment date. At least 10 days before the special record date, the Company shall mail to the
Trustee and to each Holder of the Series a notice that states the special record date, the payment date and the amount of interest to be paid. The Company may pay defaulted interest in any other lawful manner. 

 

 15 

 Section 2.15. Global Notes. (a) Terms of Notes. A Board Resolution,
a supplemental indenture hereto or an Officers’ Certificate shall establish whether the Notes of a Series shall be issued in whole or in part in the form of one or more Global Notes and the Depositary for such Global Note or Notes. 

(b) Transfer and Exchange. Notwithstanding any provisions to the contrary contained in Section 2.8 of the Indenture and in
addition thereto, any Global Note shall be exchangeable pursuant to Section 2.8 of the Indenture for Notes registered in the names of Holders other than the Depositary for such Note or its nominee only if (i) such Depositary notifies the
Company that it is unwilling or unable to continue as Depositary for such Global Note or if at any time such Depositary ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor
Depositary within 90 days of such event, and (ii) the Company executes and delivers to the Trustee an Officers’ Certificate to the effect that such Global Note shall be so exchangeable. Any Global Note that is exchangeable pursuant to
the preceding sentence shall be exchangeable for Notes registered in such names as the Depositary shall direct in writing in an aggregate principal amount equal to the principal amount of the Global Note with like tenor and terms. 

Except as provided in this Section 2.15(b), a Global Note may only be transferred in whole but not in part (i) by the
Depositary with respect to such Global Note to a nominee of such Depositary, (ii) by a nominee of such Depositary to such Depositary or another nominee of such Depositary or (iii) by the Depositary or any such nominee to a successor
Depositary or a nominee of such a successor Depositary. 
 (c) Legend. Any Global Note issued hereunder shall bear a
legend in substantially the following form: 
 “This Note is held by the Depositary (as defined in the Indenture
governing this Note) or its nominee in custody for the benefit of the beneficial owners hereof, and is not transferable to any person under any circumstances except that (a) the Trustee may make such notations hereon as may be required pursuant
to Section 2.4 of the Indenture, (b) this Note may be exchanged in whole but not in part pursuant to Section 2.15(b) of the Indenture, (c) this Note may be delivered to the Trustee for cancellation pursuant to Section 2.13
of the Indenture and (d) except as otherwise provided in Section 2.15(b) of the Indenture, this Note may be transferred, in whole but not in part, only (x) by the Depositary to a nominee of the Depositary, (y) by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or (z) by the Depositary or any nominee to a successor Depositary or to a nominee of such successor Depositary.” 

(d) Acts of Holders. The Depositary, as a Holder, may establish procedures for beneficial owners of Notes who hold interests in
the Notes through Participants to provide any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under the Indenture and it may take actions as Holder consistent with such
instructions in accordance with such procedures. 
 (e) Payments. Notwithstanding the other provisions of this Indenture,
unless otherwise specified as contemplated by Section 2.2, payment of the principal of and interest, if any, on any Global Note shall be made to the Holder thereof. 
  

 16 

 (f) Consents, Declaration and Directions. Except as provided in Section 2.15(e),
the Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount of outstanding Notes of such Series represented by a Global Note as shall be specified in a written statement of the Depositary with respect to such
Global Note, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture. 

Section 2.16. CUSIP or ISIN Numbers. The Company in issuing the Notes may use “CUSIP” or “ISIN” numbers
(if then generally in use), and, if so, the Trustee shall use “CUSIP” or “ISIN” numbers in notices of redemption as provided in Section 3.3; provided, that neither the Company nor the Trustee shall have any
responsibility for any defect in the “CUSIP” or “ISIN” number that appears on any Note, check, advice of payment or redemption notice, that any such notice may state that no representation is made as to the correctness of such
numbers either as printed on the Notes or as contained in any notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Notes, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Company shall promptly notify the Trustee in writing of changes in the “CUSIP” or “ISIN” numbers for the Notes of which it becomes aware. 

Section 2.17. Benefits of Indenture. Nothing in this Indenture or in the Notes, express or implied, shall give or be
construed to give to any Person, other than the parties hereto and the Holders of the Notes, any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision herein contained; all
such covenants, conditions and provisions being for the sole benefit of the parties hereto and of the Holders of the Notes. 

ARTICLE III  

REDEMPTION AND PREPAYMENT 

Section 3.1. Notices to Trustee. The Company may, with respect to any Series of Notes, reserve the right to redeem and pay
the Series of Notes or may covenant to redeem and pay the Series of Notes or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Series of Notes. If a Series of Notes is redeemable and the
Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the Series of Notes pursuant to the terms of such Notes, it shall notify the Trustee in writing of the redemption date and the principal amount of Notes of
the Series to be redeemed and the redemption price. The Company shall give such written notice to the Trustee at least 30 but no more that 60 days before the redemption date (or such shorter notice as may be acceptable to the Trustee).

 Section 3.2. Selection of Notes To Be Redeemed. Unless otherwise indicated for a particular Series by a Board
Resolution, a supplemental indenture or an Officers’ Certificate, if less than all of the Notes of a Series are to be redeemed or purchased in an offer to purchase at any time, the Trustee shall select the Notes to be redeemed or purchased as
follows: 
 (1) if the Notes are listed on any national securities exchange, in compliance with the requirements of the
principal national securities exchange, if any, on which the Notes are listed; or 
 (2) if the Notes are not listed on any
national securities exchange, on a pro rata basis, by lot or by such other method as the Trustee shall deem fair and appropriate. 

Provisions of this Indenture that apply to Notes called for redemption also apply to portions of Notes called for redemption. The Trustee
shall make the selection at least 30 days but not more than 60 days before the redemption date from outstanding Notes of a Series not previously called for redemption. 
  

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 If any Note is to be redeemed in part only, the principal amount of the Note that remains
outstanding after the redemption in part shall be in a denomination authorized for the Series of the Notes redeemed. If any Note is to be redeemed in part only, the notice of redemption that relates to such Note of the same Series and Stated
Maturity shall state the portion of the principal amount of that Note to be redeemed. A new Note in principal amount equal to the unredeemed portion of the original Note presented for redemption will be issued in the name of the Holder thereof upon
cancellation of the original Note. Notes called for redemption become irrevocably due on the date fixed for redemption at the applicable redemption price, plus accrued and unpaid interest to the redemption date. On and after the redemption date,
interest ceases to accrue or accrete on Notes or portions of them called for redemption. 
 Section 3.3. Notice of
Redemption. Unless otherwise provided for a particular Series of Notes by a Board Resolution, a supplemental indenture or an Officers’ Certificate, at least 30 days but not more than 60 days before a redemption date, the Company shall mail
or cause to be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be redeemed at its registered address. 

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

(1) the redemption date; 

(2) the redemption price, which will include interest accrued and unpaid to the date fixed for redemption; 

(3) if any Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed and that, after the redemption
date upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion shall be issued upon cancellation of the original Note; 

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

(5) that Notes called for redemption must be surrendered to the Paying Agent to collect the redemption price; 

(6) that, unless the Company defaults in making such redemption payment or the Paying Agent is prohibited from making such payment
pursuant to the terms of this Indenture, interest on Notes (or portion thereof) called for redemption ceases to accrue on and after the redemption date; 

(7) the paragraph of the Notes and/or provision of this Indenture or any supplemental indenture pursuant to which the Notes called for
redemption are being redeemed; and 
 (8) the CUSIP or ISIN number, if any, printed on the Notes being redeemed; 

(9) that no representation is made as to the correctness or accuracy of the CUSIP or ISIN number, if any, listed in such notice or
printed on the Notes. 
 At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at its expense; provided, however, that the Company shall deliver to the Trustee, at least 15 days prior to the intended mailing of any such notice (or such shorter period as the Company and the Trustee shall agree), an
Officers’ Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice as required by this Section. 

 

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 Section 3.4. Effect of Notice of Redemption. Once notice of redemption is mailed
in accordance with Section 3.3 hereof, Notes called for redemption become due and payable on the redemption date at the redemption price. A notice of redemption may not be conditional. 

Failure to give notice or any defect in the notice to any Holder shall not affect the validity of the notice to any other Holder.

 Section 3.5. Deposit of Redemption Price. Prior to 10:00 a.m. (New York City time) on the redemption date, the
Company shall deposit with the Trustee or with the Paying Agent (or, if the Company or a Subsidiary of the Company is the Paying Agent, shall segregate and hold in trust) 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 of Notes called for redemption that have been delivered by the Company to the Trustee for cancellation. The Trustee or the Paying Agent shall as promptly as practicable return to the
Company any money deposited with the Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the redemption price of, and accrued interest on, all Notes to be redeemed. If such money is then held by the Company in trust
and is not required for such purpose it shall be discharged from such trust. 
 If the Company complies with the provisions of
the preceding paragraph, on and after the redemption date, interest shall cease to accrue on the Notes or the portions of Notes called for redemption. If a Note is redeemed on or after a Regular Record Date but on or prior to the related Interest
Payment Date, then any accrued and unpaid interest shall be paid on the redemption date to the Person in whose name such Note was registered at the close of business on such record date. If any Note called for redemption shall not be so paid upon
surrender for redemption because of the failure of the Company to comply with the preceding paragraph, interest shall be paid on the unpaid principal, from the redemption date until such principal is paid, and, to the extent permitted by law and if
the terms of such Series so provide, on any interest not paid on such unpaid principal, in each case at the rate provided in the Notes. 

Section 3.6. Notes Redeemed in Part. Upon surrender of a Note that is redeemed in part, the Company shall execute and, upon
the Company’s written request, the Trustee shall authenticate for the Holder (at the Company’s expense) a new Note of the same Series and Stated Maturity equal in principal amount to the unredeemed portion of the Note surrendered.

 ARTICLE IV  

COVENANTS 

Section 4.1. Payment of Notes. The Company covenants and agrees for the benefit of the Holders of each Series of Notes that
it will duly and punctually make all payments in respect of each Series of Notes on the dates and in the manner provided in such Series of Notes and this Indenture. Such payments shall be considered made on the date due if on such date the Trustee
or the Paying Agent holds, in accordance with this Indenture, money sufficient to make all payments with respect to such Notes then due and the Trustee or the Paying Agent, as the case may be, is not prohibited from paying such money to the Holders
on that date pursuant to the terms of this Indenture. 
 Section 4.2. Provision of Financial Information.
(a) The Company will file with the Trustee, within 15 days after the Company shall be required so to file the same with the SEC, copies of the annual reports and of the information, documents and other reports which the Company may be required
to file with the SEC pursuant to the provisions of Section 13 or Section 15(d) of the Exchange Act (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe); or, if the Company is not required
to file information, documents or reports pursuant to the provisions of either of such Sections, then the Company will file with the Trustee and the SEC, in accordance with the rules and regulations prescribed by the SEC, such supplementary

  

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and periodic information, documents and reports which may be required pursuant to the provisions of Section 13 of the Exchange Act, in respect of a security listed and registered on a
national securities exchange, as may be prescribed in such rules and regulations. 
 (b) 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 the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates). 

Section 4.3. Compliance Certificate. The Company shall deliver to the Trustee within 120 days after the end of each fiscal
year of the Company an Officers’ Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining
whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that, to such Officers’ knowledge, the Company has kept, observed,
performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred,
describing all such Defaults or Events of Default of which such Officer has knowledge and what action the Company is taking or proposes to take, if any, with respect thereto). 

Section 4.4. Further Instruments and Acts. The Company shall execute and deliver to the Trustee such further instruments and
do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture. 

Section 4.5. Corporate Existence. Subject to Article V hereof, the Company shall do or cause to be done all things
necessary to preserve and keep in full force and effect: 
 (1) its existence in accordance with its organizational documents
(as the same may be amended from time to time); and 
 (2) the rights (charter and statutory), licenses and franchises of the
Company; provided, however, that the Company shall not be required to preserve any such right, license or franchise if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the
business of the Company and its Subsidiaries, taken as a whole, and that the loss thereof is not adverse in any material respect to the Holders of the Notes; provided further, that the foregoing shall not prohibit a sale, transfer or
conveyance of a Subsidiary of the Company or any of its or the Company’s respective assets in compliance with the terms of this Indenture. 

Section 4.6. Calculation of Original Issue Discount. If the Notes are issued with original issue discount (other than de
minimis original issue discount) (“OID”), as defined under the Internal Revenue Code, the Company shall file with the Trustee promptly at the end of each calendar year (i) a written notice specifying the amount of OID (including
daily rates and accrual periods) accrued on outstanding Notes as of the end of such year and (ii) such other specific information relating to such OID as may then be relevant under the Internal Revenue Code. 

Section 4.7. Limitations on Liens. The Company will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, create, incur or otherwise cause or suffer to exist or become effective any Liens of any kind upon any Principal Property or any Capital Stock of any Restricted Subsidiary (whether such Principal Property or Capital Stock are now
owned or hereafter acquired), or any interest therein or any increase or profits therefrom, unless all payments due under the Indenture and the Notes are secured on an equal and ratable basis with (or prior to) the obligations so secured until such
time as such obligation is no longer secured by a Lien, except in the case of Permitted Liens or as provided in Section 4.9 below. 
  

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 Section 4.8. Limitations on Sale and Leaseback Transactions. Except as provided
in Section 4.9 below, the Company will not, and will not permit any of its Restricted Subsidiaries to, enter into any Sale and Leaseback Transaction with respect to any Principal Property unless either (i) the Company or such Restricted
Subsidiary would be entitled, pursuant to the provisions of the Indenture, to incur Indebtedness secured by a Lien on the Property to be leased in an amount equal to the Attributable Indebtedness with respect to such transaction without equally and
ratably securing the Notes, or (ii) the Company, within 180 days after the effective date of such transaction, applies to the voluntary retirement of its Funded Debt an amount equal to the value of such transaction, defined as the greater of
the net proceeds of the sale of the Principal Property leased in such transaction or the fair value, in the opinion of the Company’s Board of Directors, of the leased Principal Property at the time such transaction was entered into. 

Section 4.9. Exempted Debt. Notwithstanding the foregoing limitations on Liens and Sale and Leaseback Transactions, the
Company and its Restricted Subsidiaries may create, incur or otherwise cause to suffer to exist or become effective Liens without securing the Notes or enter into a Sale and Leaseback Transaction without retiring Funded Debt, or enter into a
combination of such transactions, provided that, at the time of such event, and after giving effect thereto and to the retirement of any other such Indebtedness which is concurrently being repaid, the sum of (x) the principal amount of such
Indebtedness secured by such Liens or the Attributable Indebtedness in respect of such Sale and Leaseback Transaction, as the case may be, and (y) the principal amount of all other such Indebtedness secured by such Liens (not including Liens
permitted in Section 4.7) and all other Attributable Indebtedness in respect of Sale and Leaseback Transactions then outstanding (not including Sale and Leaseback Transactions permitted in Section 4.8), measured, in each case, at the time
any such Lien is incurred or any such Sale and Leaseback Transaction is entered into, does not exceed the greater of (i) $25,000,000 or (ii) 15% of the Consolidated Net Assets of the Company and its consolidated Subsidiaries. 

ARTICLE V  

SUCCESSORS 

Section 5.1. Mergers, Consolidations, Sales. Unless otherwise provided for a particular Series of Notes by a Board
Resolution, a supplemental indenture or an Officers’ Certificate, the Company shall not consolidate with or merge into any other Person or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the
Company’s and its Subsidiaries’ properties and assets, taken as a whole, to any Person, unless: 
 (a) the Person
surviving such consolidation or merger (if not the Company) or the Person that acquires by sale, assignment, transfer, lease, conveyance or other disposition all or substantially all of the Company’s and its Subsidiaries’ properties and
assets, taken as a whole, shall be a corporation, partnership, limited liability company, trust or other entity organized and existing under the laws of the United States of America, any state or territory thereof or the District of Columbia and
shall expressly assume, by a supplemental indenture, executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of and any premium and interest on all the Notes and the performance or
observance of every covenant of the Indenture on the part of the Company to be performed or observed; 
 (b) immediately after
giving effect to such transaction and treating any Indebtedness that becomes an obligation of the Company or any Subsidiary as a result of such transaction as having been incurred by the Company or such Subsidiary at the time of such transaction, no
Default or Event of Default shall have occurred and be continuing; and 
  

 21 

 (c) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, sale, assignment, transfer, lease, conveyance or other disposition and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture,
comply with the terms of this Indenture and that all conditions precedent provided for herein relating to such transaction have been complied with. 

The restrictions of this Section 5.1 will not apply to any sale, assignment, transfer, conveyance, lease or other disposition of
assets solely between or among the Company and its Subsidiaries. 
 Section 5.2. Successor Substituted. (a) In
case of any such consolidation, merger, sale, conveyance, assignment, transfer, lease or other disposition and upon the assumption by the successor entity, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to
the Trustee, of the due and punctual payment of the principal of, premium, if any, and interest on all of the Notes of all Series outstanding and the due and punctual performance of all of the covenants and conditions of this Indenture or
established with respect to each Series of the Notes pursuant to Section 2.2 to be performed by the Company with respect to each Series, such successor entity shall succeed to and be substituted for and may exercise every right and power of the
Company under this Indenture with the same effect as if it had been named as the Company herein, and thereupon the predecessor entity shall be relieved of all obligations and covenants under this Indenture and the Notes. 

(b) In case of any such consolidation, merger, sale, conveyance, assignment, transfer, lease or other disposition such changes in
phraseology and form (but not in substance) may be made in the Notes thereafter to be issued as may be appropriate. 
 (c)
Nothing contained in this Indenture or in any of the Notes shall prevent the Company from merging into itself or acquiring by purchase or otherwise all or any part of the Property of any other Person (whether or not affiliated with the Company).

 ARTICLE VI  

DEFAULTS AND REMEDIES 

Section 6.1. Events of Default. Unless otherwise indicated for a particular Series of Notes by a Board Resolution, a
supplemental indenture hereto, or an Officers’ Certificate, each of the following constitutes an “Event of Default” with respect to each Series of Notes: 

(1) default in the payment of the principal of or premium, if any, when due on the Notes; 

(2) default for 30 days in the payment of interest when due on the Notes; 

(3) the Company fails to comply with any of its covenants or agreements in the Notes or this Indenture and such failure continues for 90
days after the written notice specified below has been given; 
 (4) default by the Company or any Subsidiary under any
Indebtedness (other than Non-Recourse Indebtedness) of the Company or any Subsidiary having an aggregate principal amount equal to the greater of $25,000,000 or 15% of Consolidated Net Assets, or under any mortgage, indenture or instrument under
which there may be issued or by which there may be secured or 
  

 22 

 
evidenced any Indebtedness for money borrowed by the Company or any Subsidiary having an aggregate principal amount equal to the greater of $25,000,000 or 15% of Consolidated Net Assets, whether
such Indebtedness now exists or shall hereafter be created, which default shall constitute a failure to pay any portion of the principal of such Indebtedness when due and payable after the expiration of any applicable grace period with respect
thereto or shall have resulted in such Indebtedness becoming or being declared due and payable prior to the date on which it would otherwise have become due and payable; provided, that such acceleration shall not have been rescinded or
annulled within 10 days after written notice is given to the Company by the Trustee or the Company and the Trustee by Holders of at least 25% of the outstanding principal amount of Notes of such Series as specified below; and provided,
further, that prior to any declaration of acceleration of the Notes pursuant to Section 6.2, an Event of Default under this clause (4) will be remedied, cured or waived without further action on the part of either the Trustee or any
of the Holders if the default under such other Indebtedness is remedied, cured or waived; 
 (5) the Company or any Significant
Subsidiary pursuant to or within the meaning of any Bankruptcy Law: 
 (A) commences a voluntary case; 

(B) consents to the entry of an order for relief against it in an involuntary case; or 

(C) consents to the appointment of a Custodian of it or for all or substantially all of its property; or 

(D) makes a general assignment for the benefit of its creditors; or 

(E) takes any comparable action under any foreign laws relating to insolvency; or 

(6) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

(A) is for relief against the Company or any Significant Subsidiary in an involuntary case; 

(B) appoints a Custodian of the Company or any Significant Subsidiary for all or substantially all of its property; or 

(C) orders the winding up or liquidation of the Company or any Significant Subsidiary; or 

(D) or any similar relief is granted under any foreign laws and the order or decree remains unstayed and in effect for 90 days.

 The term “Custodian” means, for the purposes of this Article VI only, any receiver, trustee, assignee,
liquidator, custodian or similar official under any Bankruptcy Law. 
 A Default under clause (3) is not an Event of
Default until the Trustee notifies the Company of the Default and the Company does not cure such Default within the time specified after receipt of such notice or the Holders of at least 25% in aggregate principal amount of the outstanding Notes
notify the Company and the Trustee of the Default and the Company does not cure such Default within the time specified after receipt of such notice. Such notice must specify the Default, demand that it be remedied and state that such notice is a
“Notice of Default.” 
  

 23 

 The Company shall deliver to the Trustee, within 30 days after the Company first gains
knowledge of the occurrence thereof, written notice in the form of an Officers’ Certificate of any Default or Event of Default, its status and what action the Company is taking or proposes to take with respect thereto. 

Section 6.2. Acceleration. (a) If an Event of Default with respect to any Series of Notes at the time outstanding (other
than an Event of Default specified in Sections 6.1(5) and (6)) occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the outstanding Notes of that Series by notice to the Company, may declare the
principal amount of (or, in the case of Original Issue Discount Notes of that Series, the portion thereby specified in the terms of such Note), premium, if any, and accrued and unpaid interest on all the Notes of that Series to be due and payable.
Upon such a declaration, such amounts shall be due and payable immediately. If an Event of Default specified in Sections 6.1 (5) and (6) occurs and is continuing, the principal amount of (or, in the case of Original Issue Discount
Notes of that Series, the portion thereby specified in the terms of such Note), premium, if any, and accrued and unpaid interest on all the Notes of each Series of Notes shall ipso facto become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder. 
 (b) At any time after the principal of the Notes of any
Series of Notes shall have been so declared due and payable (or have become immediately due and payable), and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the Holders of
a majority in principal amount of the Notes of that Series then outstanding hereunder, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: (i) the Company has paid or deposited with
the Trustee a sum sufficient to pay all matured installments of interest upon all the Notes of that Series and the principal of (and premium, if any, on) any and all Notes of that Series that shall have become due otherwise than by acceleration
(with interest upon such principal and premium, if any, and, to the extent that such payment is enforceable under applicable law, upon overdue installments of interest, at the rate per annum expressed in the Notes of that Series to the date of such
payment or deposit) and (ii) any and all Events of Default under the Indenture with respect to such Series of Notes, other than the nonpayment of principal (or, in the case of Original Issue Discount Notes of that Series, the portion thereby
specified in the terms of such Note) and interest, if any, on Notes of that Series that have become due solely by such declaration of acceleration, shall have been remedied or waived as provided in Section 6.4. No such rescission shall affect
any subsequent Default or impair any right consequent thereto. 
 Section 6.3. Other Remedies. If an Event of
Default with respect to any Series of Notes occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of the principal amount of (or, in the case of Original Issue Discount Notes of that Series, the portion thereby
specified in the terms of such Note), premium, if any, and accrued and unpaid interest on the Notes of that Series or to enforce the performance of any provision of the Notes of that Series or this Indenture. 

The Trustee may institute and maintain a suit or legal proceeding even if it does not possess any of the Notes of a Series or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default with respect to any Series of Notes shall not impair the right or remedy or constitute a
waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative to the extent permitted by law. 

Section 6.4. Waiver of Past Defaults. The Holders of a majority in principal amount of the outstanding Notes of any Series
may on behalf of the Holders of all the Notes of such Series by written notice to the Trustee waive an existing Default and its consequences except (i) a Default in 

 

 24 

 
the payment of the principal amount of (or, in the case of Original Issue Discount Notes of that Series, the portion thereby specified in the terms of such Note), premium, if any, and accrued and
unpaid interest on a Note of that Series, (ii) a Default arising from the failure to redeem or purchase any Note of that Series when required pursuant to the terms of this Indenture or (iii) a Default in respect of a provision that under
Section 9.2 cannot be amended without the consent of each Holder of that Series affected provided, however, that the Holders of a majority in principal amount of the outstanding Notes of any Series may rescind an acceleration and its
consequences, including any related payment default that resulted from such acceleration in accordance with Section 6.2. When a Default is waived, it shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been
cured, but no such waiver shall extend to any subsequent or other Default or impair any consequent right. 
 Section 6.5.
Control by Majority. The Holders of a majority in principal amount of the outstanding Notes of any Series (each Series voting as a separate class) may direct the time, method and place of conducting any proceeding for any remedy available to
the Trustee or of exercising any trust or power conferred on the Trustee with respect to that Series, provided that such direction shall not conflict with law or this Indenture, the Trustee may take any other action deemed proper by the
Trustee that is not inconsistent with such direction and, subject to Section 7.1, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer of the Trustee, determine
that proceeding as so directed would subject the Trustee to personal liability. Prior to taking any action hereunder, the Trustee shall be entitled to security or indemnity against all losses and expenses caused by taking or not taking such action
reasonably satisfactory to the Trustee. 
 Section 6.6. Limitation on Suits. Except to enforce the right to receive
payment of the principal amount of (or, in the case of Original Issue Discount Notes, the portion thereby specified in the terms of such Note), premium, if any, and accrued and unpaid interest on the Notes of any Series held by such Holder when due,
no Holder of a Note of that Series may pursue any remedy with respect to this Indenture or the Notes of that Series unless: 

(i) the Holder previously gave the Trustee written notice stating that an Event of Default with respect to that Series is continuing;

 (ii) the Holders of at least 25% in aggregate principal amount of the outstanding Notes of that Series make a written request
to the Trustee to pursue the remedy; 
 (iii) such Holder or Holders of that Series offer to the Trustee security or indemnity
reasonably satisfactory to the Trustee against any loss, liability or expense caused by taking such action; 
 (iv) the Trustee
does not comply with the request within 60 days after receipt of the request and the offer of security or indemnity; and 
 (v)
the Holders of a majority in aggregate principal amount of the outstanding Notes of that Series do not give the Trustee a direction inconsistent with the request during such 60-day period. 

A Holder of Notes of any Series may not use this Indenture to prejudice the rights of another Holder of that Series or to obtain a
preference or priority over another Holder of that Series (it being understood that the Trustee does not have an affirmative duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such Holders). 

Section 6.7. Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture, the right of any
Holder to receive payment of the principal amount of (or, in the 
  

 25 

 
case of Original Issue Discount Notes, the portion thereby specified in the terms of such Note), premium, if any, and accrued and unpaid interest on the Notes held by such Holder, on or after
their Maturity, or to bring suit for the enforcement of any such payment on or after their Maturity, shall not be impaired or affected without the consent of such Holder. 

Section 6.8. Collection Suit by Trustee. If an Event of Default specified in Section 6.1(1) or (2) occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount then due and owing (together with interest on any unpaid interest to the extent lawful) and the amounts provided
for in Section 7.7. 
 Section 6.9. 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 and the Holders allowed in any judicial proceedings relative to the Company, its creditors or its Property and, unless prohibited by law or
applicable regulations, may vote on behalf of the Holders in any election of a trustee in bankruptcy or other Person performing similar functions, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make 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 it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and its counsel, and any other amounts due the Trustee under Section 7.7. 
 Section 6.10. Priorities.
If the Trustee collects any money or property pursuant to this Article VI with respect to any Series of Notes, it shall pay out the money or property in the following order, and, in case of the distribution of such money on account of principal
or interest, upon presentation of the Notes and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 

FIRST: to the Trustee for amounts due under Section 7.7; 

SECOND: to Holders for amounts due and unpaid on the Notes of that Series for the principal amount of (or, in the case of Original Issue
Discount Notes of that Series, the portion thereby specified in the terms of such Note), premium, if any, and accrued and unpaid interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes of
that Series for the principal amount of (or, in the case of Original Issue Discount Notes of that Series, the portion thereby specified in the terms of such Note), premium, if any, and accrued and unpaid interest, respectively; and 

THIRD: to the Company. 

The Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section. At least 15 days before such
record date, the Trustee shall mail to each Holder and the Company a notice that states the record date, the payment date and amount to be paid. 

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 in its discretion may require the filing, by any party litigant in the suit, of an undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section does not apply
to a suit by the Trustee, a suit by a Holder pursuant to Section 6.7 or a suit by Holders of more than 10% in principal amount of the then outstanding Notes of any Series. 

 

 26 

 Section 6.12. Waiver of Stay or Extension Laws. The Company (to the extent it
may lawfully do so) shall not at any time insist upon, plead, or in any manner whatsoever claim to take the benefit or advantage of, any stay or extension law, wherever enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and shall not hinder, delay or impede the execution of any power herein granted to the
Trustee, but shall suffer and permit the execution of every such power as though no such law had been enacted. 
 ARTICLE VII
 
 TRUSTEE 

Section 7.1. Duties of Trustee. (a) If an Event of Default has occurred and is continuing with respect to any Series of
Notes, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in its exercise thereof as a prudent Person would exercise or use under the circumstances in the conduct of such
Person’s own affairs. 
 (b) Except during the continuance of an Event of Default with respect to any Series of Notes:

 (1) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture with
respect to the Notes of that Series, as modified or supplemented by a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate and no implied covenants or obligations shall be read into this Indenture against the Trustee;
and 
 (2) in the absence of bad faith on its part, the Trustee may, with respect to this Indenture and to Notes of that Series,
conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, in the case of any such
certificates or opinions which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture
(but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein). 
 (c) The
Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that: 

(1) this paragraph does not limit the effect of paragraph (b) of this Section; 

(2) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer unless it is proved that the
Trustee was negligent in ascertaining the pertinent facts; and 
 (3) the Trustee shall not be liable with respect to any action
it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.5. 
 (d) Every
provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section. 

(e) The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company.

  

 27 

 (f) Money held in trust by the Trustee need not be segregated from funds except to the
extent required by law. 
 (g) No provision of this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur 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 to believe that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it. 
 (h) 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 Section and, if this Indenture is qualified under the TIA, to the provisions of the TIA. 

Section 7.2. Rights of Trustee. (a) The Trustee may conclusively rely on, and shall be fully protected in acting or
refraining from acting by, any resolution, certificate, statement, instrument, opinion, notice, request, direction, consent, order or other document believed by it to be genuine and to have been signed or presented by the proper Person or Persons.
The Trustee need not investigate any fact or matter stated in the document. 
 (b) Before the Trustee acts or refrains from
acting, it may require an Officers’ Certificate or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on the Officers’ Certificate or Opinion of Counsel.

 (c) The Trustee may act through agents or attorneys and shall not be responsible for the misconduct or negligence of any
agent or attorney appointed by it with due care. No Depositary shall be deemed an agent of the Trustee, and the Trustee shall not be responsible for any act or omission by any Depositary. 

(d) The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within
its rights or powers; provided, however, that the Trustee’s conduct does not constitute negligence or willful misconduct. 

(e) The Trustee may consult with counsel of its choice, and the advice or opinion of counsel with respect to legal matters relating to
this Indenture and the Notes, shall be full and complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder without negligence and in good faith and in accordance with the advice or
opinion of such counsel. 
 (f) Unless otherwise specifically provided in this Indenture, any demand, request, direction or
notice from the Company shall be sufficient if signed by an Officer of the Company, and the Trustee may rely thereon. 
 (g) The
Trustee shall not be deemed to have notice of any Default or Event of Default with respect to the Notes of any Series unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact
such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references such Notes and this Indenture. 

(h) The rights, privileges, protections, immunities and benefits given to the Trustee hereunder, including, without limitation, its right
to be indemnified, are extended to and shall be enforceable by, the Trustee in each of its capacities hereunder, and each such agent, custodian and other person employed to act hereunder. 

 

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 (i) 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 pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity reasonably satisfactory to the Trustee against the costs, expenses and
liabilities which might be incurred by the Trustee in compliance with such request or direction. 
 (j) 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. 

(k) The Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith and reasonably believed by
it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture. 
 (l) The Trustee shall
not be required to give any bond or surety in respect of the performance of its duties or powers hereunder. 
 (m) The Trustee
may request that the Company deliver a certificate of incumbency setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture. 

(n) In no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind
whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 

Section 7.3. 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 the Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar or co-paying agent may do the same with like rights. However, the Trustee must comply
with Sections 7.10 and 7.11. 
 Section 7.4. Trustee’s Disclaimer. The Trustee shall not be responsible
for and makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be accountable for the Company’s use of the proceeds from the Notes, and it shall not be responsible for any statement of the Company in
this Indenture, in the Notes or in any document executed in connection with the sale of the Notes, other than those set forth in the Trustee’s certificate of authentication. 

Section 7.5. Notice of Defaults. If a Default with respect to Notes of any Series occurs and is continuing and if it is
actually known to a Responsible Officer of the Trustee, the Trustee shall mail to each Holder of that Series notice of the Default within 90 days after it occurs. The Trustee may withhold the notice if and so long as it in good faith determines that
withholding the notice is in the interests of Holders. 
 Section 7.6. Reports by Trustee to Holder. Unless
otherwise specified in the applicable Board Resolution, supplemental indenture hereto or Officers’ Certificate, as promptly as practicable after each May 15 following the date of this Indenture for so long as Notes remain outstanding, the
Trustee shall mail to each Holder a brief report dated as of such reporting date that complies with § 313(a) of the TIA, if such report would have been required pursuant to such § 313(a). The Trustee shall also comply with
§ 313(b)(2) of the TIA. 
  

 29 

 A copy of each report at the time of its mailing to Holders shall be filed with each stock
exchange (if any) on which the Notes are listed. The Company agrees to notify promptly the Trustee in writing whenever the Notes become listed on any stock exchange and of any delisting thereof. 

Section 7.7. Compensation and Indemnity. The Company shall pay to the Trustee from time to time such compensation for its
services as the Company and the Trustee shall from time to time agree in writing. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request
for all reasonable and documented out-of-pocket expenses incurred or made by it in connection with its administration of the trust hereunder, including costs of collection. The Company shall indemnify and hold harmless the Trustee and its officers,
directors, employees and agents against any and all loss, liability, damage, claim or expense (including the reasonable and documented fees and expenses of outside counsel) incurred by or in connection with its acceptance or administration of this
trust and the performance of its duties hereunder as Trustee including the costs and expenses of defending itself against any claim (whether asserted by the Company, a Holder or any other Person). The Trustee shall notify the Company of any claim
for which it may seek indemnity promptly upon obtaining actual knowledge thereof; provided, however, that any failure to so notify the Company shall not relieve the Company of its indemnity obligations hereunder. The Company need not
reimburse any expense or indemnify against any loss, liability or expense incurred by an indemnified party through such party’s own willful misconduct or negligence. 

To secure the Company’s payment obligations in this Section 7.7, the Trustee shall have a Lien prior to the Notes on all money
or Property held or collected by the Trustee other than money or Property held in trust to pay the principal of and interest and any additional payments on particular Notes. 

When the Trustee incurs expenses after the occurrence of a Default specified in Section 6.1(5) or (6) with respect to the
Company, the expenses are intended to constitute expenses of administration under the Bankruptcy Law. The Company’s payment obligations pursuant to this Section 7.7 shall survive the satisfaction or discharge of this Indenture or the
resignation or removal of the Trustee. 
 Section 7.8. Replacement of Trustee. The Trustee may resign with respect
to the Notes of any Series by so notifying the Company in writing at least 30 days prior to the date of the proposed resignation. The Holders of a majority in principal amount of the Notes of any Series may remove the Trustee and may appoint a
successor Trustee with respect to such Series of Notes by so notifying the Trustee and the Company in writing not less than 30 days prior to the effective date of such removal. The Company shall remove the Trustee with respect to Notes of one or
more Series if: 
 (1) the Trustee fails to comply with Section 7.10; 

(2) the Trustee is adjudged bankrupt or insolvent; 

(3) a receiver or other public officer takes charge of the Trustee or its Property; or 

(4) the Trustee otherwise becomes incapable of acting. 

If the Trustee resigns, is removed by the Company or by the Holders of a majority in principal amount of the Notes of any Series and such
Holders do not reasonably promptly appoint a 
  

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successor Trustee or if a vacancy exists in the office of Trustee for any reason (the Trustee in such event being referred to herein as the retiring Trustee), the Company shall promptly appoint a
successor Trustee. 
 A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to
the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee with respect to each Series of Notes for which it is acting as
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to Holders of that Series of Notes. The retiring Trustee shall promptly transfer all Property held by it as Trustee to the successor Trustee, subject to the
Lien provided for in Section 7.7. 
 If a successor Trustee does not take office within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee or the Holders of at least a majority in principal amount of the Notes of that Series may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor
Trustee. 
 If the Trustee fails to comply with Section 7.10, any Holder of that Series of Notes may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
 Notwithstanding the
replacement of the Trustee pursuant to this Section 7.8, the Company’s obligations under Section 7.7 shall continue for the benefit of the retiring Trustee with respect to expenses and liabilities incurred by it prior to such
replacement. 
 Section 7.9. Successor Trustee by Merger. If the Trustee consolidates with, merges or converts into,
or transfers all or substantially all of its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation or banking association without any further act shall be the successor
Trustee. 
 In case at the time such successor or successors by merger, conversion or consolidation to the Trustee shall succeed
to the trusts created by this Indenture any of the Notes shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee, and deliver such Notes so
authenticated; and if at that time any of the Notes shall not have been authenticated, any such successor to the Trustee may authenticate such Notes either in the name of any predecessor hereunder or in the name of the successor to the Trustee; and
in all such cases such certificates shall have the full force which it is anywhere in the Notes or in this Indenture provided that the certificate of the Trustee shall have. 

Section 7.10. Eligibility; Disqualification. The Trustee shall at all times satisfy the requirements of TIA
§ 310(a)(1), (2) and (5). The Trustee shall have a combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply with TIA § 310(b);
provided, however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other securities or certificates of interest or participation in other securities of the Company
are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are met. 
 Section 7.11.
Preferential Collection of Claims Against Company. The Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has resigned or has been removed shall be subject to
TIA § 311(a) to the extent indicated. 
  

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 ARTICLE VIII  

LEGAL DEFEASANCE, COVENANT DEFEASANCE 

AND SATISFACTION AND DISCHARGE 

Section 8.1. Option To Effect Legal Defeasance or Covenant Defeasance. Unless otherwise indicated for a particular Series of
Notes by a Board Resolution, a supplemental indenture or an Officers’ Certificate, the Company may, at any time, elect to have either Section 8.2 or 8.3 hereof be applied to all outstanding Notes of any Series upon compliance with the
conditions set forth below in this Article VIII. 
 Section 8.2. Legal Defeasance and Discharge. Upon the
Company’s exercise under Section 8.1 hereof of the option applicable to this Section 8.2, the Company shall, subject to the satisfaction of the conditions set forth in Section 8.4 hereof, be deemed to have been discharged from
its obligations with respect to all outstanding Notes of that Series on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the Company shall be deemed to
have paid and discharged the entire Indebtedness represented by the outstanding Notes of that Series, which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.5 hereof and the other Sections of this
Indenture referred to in (a) and (b) below, and to have satisfied all its other obligations under the outstanding Notes of that Series and this Indenture (and the Trustee, on written demand of and at the expense of the Company, shall
execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder: 

(a) the Company’s obligations with respect to such Notes of that Series under Sections 2.5, 2.8 and 2.9 hereof; 

(b) the rights, powers, trusts, duties, indemnities and immunities of the Trustee hereunder and the Company’s obligations in
connection therewith (including, but not limited to, the rights of the Trustee and the duties of the Company under Section 7.7, which shall survive despite the satisfaction in full of all obligations hereunder); and 

(c) Sections 8.2, 8.4, 8.5, 8.6 and 8.7 hereof. 

Subject to compliance with this Article VIII, the Company may exercise its option under this Section 8.2 notwithstanding the prior
exercise of its option under Section 8.3 hereof. 
 Section 8.3. Covenant Defeasance. Upon the Company’s
exercise under Section 8.1 hereof of the option applicable to this Section 8.3 with respect to any Series of Notes, the Company shall, subject to the satisfaction of the conditions set forth in Section 8.4 hereof, be released from its
obligations under the covenants contained in Sections 4.7, 4.8, and 4.9 of this Indenture (if applicable to such Series) and any covenants made applicable to the Series of Notes which are subject to defeasance under the terms of a Board Resolution,
a supplemental indenture hereto or an Officers’ Certificate with respect to the outstanding Notes of that Series on and after the date the conditions set forth in Section 8.4 are satisfied (hereinafter, “Covenant Defeasance”),
and the Notes of that Series shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but
shall continue to be deemed “outstanding” for all other purposes hereunder. For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes of that Series, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any
other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 6.1 hereof, but, except as specified 

 

 32 

 
above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition, upon the Company’s exercise under Section 8.1 hereof of the option applicable to this
Section 8.3 hereof with respect to any Series of Notes, subject to the satisfaction of the conditions set forth in Section 8.4 hereof, Section 6.1(3) as it relates to the covenants defeased and Section 6.1(4) hereof shall not
constitute Events of Default with respect to the Notes of that Series. 
 Section 8.4. Conditions to Legal or Covenant
Defeasance. The following shall be the conditions to the application of either Section 8.2 or 8.3 hereof to the outstanding Notes: 

In order to exercise either Legal Defeasance or Covenant Defeasance with respect to any Series of Notes: 

(1) the Company must irrevocably deposit or cause to be irrevocably deposited with the Trustee, in trust, for the benefit of the Holders
of that Series of Notes, cash in Dollars, noncallable Government Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay the principal of,
premium, if any, and interest on the outstanding Notes of that Series on the stated date for payment thereof or on the applicable redemption date, as the case may be; 

(2) in the case of an election under Section 8.2 hereof, the Company shall have delivered to the Trustee an Opinion of Counsel in
the United States reasonably acceptable to the Trustee confirming that (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (B) since the date of this Indenture, there has been a
change in the applicable federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the outstanding Notes will not recognize income, gain or loss for federal income tax
purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred; 

(3) in the case of an election under Section 8.3 hereof, the Company shall have delivered to the Trustee an Opinion of Counsel in
the United States reasonably acceptable to the Trustee confirming that the Holders of the outstanding Notes of that Series will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and will be
subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 

(4) no Default or Event of Default with respect to that Series of Notes shall have occurred and be continuing under Sections 6.1(5)
and (6) hereof at any time in the period ending on the 91st day after the date of deposit; and 
 (5) the Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for or relating to the Legal Defeasance or the Covenant Defeasance have been complied with. 

Section 8.5. Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions. Subject to
Section 8.6 hereof, all money and noncallable Government Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 8.5, the “Trustee”) pursuant
to Section 8.4 hereof in respect of the outstanding Notes of the Series shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium, if any, and interest, but such money need not be segregated
from other funds except to the extent required by law. 
  

 33 

 The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the cash or noncallable Government Securities deposited pursuant to Section 8.4 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account
of the Holders of the outstanding Notes of that Series. 
 Anything in this Article VIII to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon the request of the Company any money or noncallable Government Securities held by it as provided in Section 8.4 hereof which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.4(5) hereof), are in excess of the amount thereof that would then be required to be
deposited to effect an equivalent Legal Defeasance or Covenant Defeasance. 
 Section 8.6. Repayment to Company. Any
money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, premium, if any, or interest on any Note and remaining unclaimed for two years after such principal, and premium, if
any, or interest has become due and payable shall be paid to the Company on its written request or, if then held by the Company, shall be discharged from such trust; and the Holder of such Note shall thereafter look only to the Company for payment
thereof as general creditors, unless an applicable abandoned property law designates another person, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall
thereupon cease. 
 Section 8.7. Satisfaction and Discharge of Indenture. If at any time: 

(a) the Company shall have delivered to the Trustee for cancellation all Notes of a Series theretofore authenticated (other than any
Notes that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.9 and Notes for whose payment money and/or Government Securities have theretofore been deposited in trust or segregated and
held in trust by the Company and thereupon repaid to the Company or discharged from such trust, as provided in Section 8.6); or 

(b) all such Notes of a particular Series not theretofor delivered to the Trustee for cancellation shall have become due and payable
within one year, and 
 (i) the Company has irrevocably deposited or caused to be deposited with the Trustee, in
trust, for the benefit of the Holders of that Series of Notes, cash in Dollars, noncallable Government Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public
accountants, to pay at maturity or upon redemption all Notes of that Series not theretofore delivered to the Trustee for cancellation, including principal of, premium, if any, and interest due or to become due to such date of maturity or date fixed
for redemption, as the case may be, and 
 (ii) if the Company shall also pay or cause to be paid all other sums
payable hereunder with respect to such Series by the Company, and 
  

 34 

 (iii) shall have delivered to the Trustee an Opinion of Counsel and an
Officers’ Certificate, each stating that all conditions precedent relating to the satisfaction and discharge of this Indenture with respect to such Series have been complied with, 

then this Indenture shall thereupon cease to be of further effect with respect to such Series except for the rights, powers, trusts, duties, indemnities
and immunities of the Trustee hereunder and the Company’s obligations in connection therewith (including, but not limited to, the rights of the Trustee and the duties of the Company under Section 7.7, which shall survive despite the
satisfaction in full of all obligations hereunder) and, if money shall have been deposited with the Trustee pursuant to this Section 8.7(b): 

(i) the Company’s obligations with respect to such Notes of that Series under Sections 2.5, 2.8 and 2.9 hereof;

 (ii) the Company’s agreements set forth in Sections 5.1 and 5.2; and 

(iii) Sections 8.2, 8.4, 8.5, 8.6 and 8.7 hereof, 

each of which shall survive until the Notes have been paid in full. 

Upon the Company’s exercise of this Section 8.7, the Trustee, on demand of the Company and at the cost and expense of the
Company, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture with respect to such Series. 

Section 8.8. Reinstatement. If the Trustee or Paying Agent is unable to apply any Dollars or noncallable Government
Securities in accordance with Sections 8.2 or 8.3 hereof, as the case may be, by reason of any order or judgment of any court or Governmental Authority enjoining, restraining or otherwise prohibiting such application, then the Company’s
obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section either 8.2 or 8.3 hereof until such time as the Trustee or Paying Agent is permitted to apply all such money in
accordance with either Section 8.2 or 8.3 hereof, as the case may be; provided, however, that, if the Company makes any payment of principal of, premium, if any, or interest on any Note following the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held by the Trustee or Paying Agent. 

ARTICLE IX  

AMENDMENTS 

Section 9.1. Without Consent of Holders. The Company and the Trustee may amend or supplement this Indenture or the Notes
without the consent of any Holder: 
 (1) to cure any ambiguity, defect, omission or inconsistency; 

(2) to provide for uncertificated Notes in addition to, or in place of, certificated Notes; 

(3) to evidence the succession of another Person to the Company pursuant to Article V and the assumption by such successor of the
Company’s obligations in this Indenture and in the Notes to Holders of such Notes pursuant to Article V; 
 (4) to make any
changes that would not materially adversely affect the legal rights under the Indenture of any such Holder; 
  

 35 

 (5) to modify or amend this Indenture in such a manner as to comply with the requirements of
the SEC in order to effect or maintain the qualification of this Indenture or any supplemental indenture hereto under the TIA; 

(6) to provide for the issuance of additional Notes in accordance with the Indenture; 

(7) to evidence and provide for the acceptance of appointment by a successor or separate Trustee with respect to the Notes of one or more
Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of this Indenture by more than one Trustee; 

(8) to establish the form or terms of Notes and coupons of any Series pursuant to Article II; or 

(9) to add to, change, or eliminate any of the provisions of this Indenture with respect to one or more Series of Notes, so long as any
such addition, change or elimination not otherwise permitted under this Indenture shall (A) neither apply to any Note of any Series created prior to the execution of such supplemental indenture and entitled to the benefit of such provision nor
modify the rights of the Holders of any such Note with respect to the benefit of such provision or (B) become effective only when there are no Notes of that Series outstanding. 

Section 9.2. With Consent of Holders. The Company and the Trustee may amend or supplement this Indenture or the Notes of any
Series with the written consent of the Holders of at least a majority in aggregate principal amount of the Notes of each Series then outstanding (including consents obtained in connection with a tender offer or exchange offer for the Notes) affected
by such amendment or supplement by execution of a supplemental indenture hereto treating each Series as a separate class. However, without the consent of each Holder affected, an amendment or supplement may not: 

(1) reduce the principal amount of Notes of a Series whose Holders must consent to an amendment, supplement or waiver; 

(2) reduce the rate of or extend the time for payment of interest, including default interest, on any Note; 

(3) reduce the principal of or change the Stated Maturity of any Note or alter or waive any of the provisions with respect to the
redemption of the Notes; 
 (4) reduce the amount payable upon the redemption of any Note or change the time at which such Note
may be redeemed, if applicable; 
 (5) make any Note payable in money other than that stated in the Note; 

(6) waive a Default or Event of Default in the payment of principal of or premium, if any, or interest on the Notes (except a rescission
of acceleration of the Notes of a Series by the Holders of at least a majority in aggregate principal amount of the then outstanding Notes of that Series and a waiver of the payment default that resulted from such acceleration); 

(7) make any change in the provisions of this Indenture relating to waivers of past Defaults or the rights of Holders to receive payments
of principal of, or premium, if any, or interest on the Notes; 
 (8) waive a redemption payment with respect to any Note;

  

 36 

 (9) modify any of the provisions of this Section or Section 6.4 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 Note affected thereby; provided, however, that this clause shall not be deemed to require the
consent of any Holder with respect to changes in the references to “the Trustee” and concomitant changes in this Section, or the deletion of this provision, in accordance with the requirements of Sections 9.1(1) and 9.1(7); or 

(10) make any change in Section 6.4 or 6.7 hereof or in the foregoing amendment and waiver provisions. 

It shall not be necessary for the consent of the Holders under this Section to approve the particular form of any proposed amendment or
supplement, but it shall be sufficient if such consent approves the substance thereof. After an amendment or supplement under this Section becomes effective, the Company shall mail to all affected Holders a notice briefly describing such amendment
or supplement. The failure to give such notice to all such Holders, or any defect therein, shall not impair or affect the validity of an amendment or supplement under this Section. 

Section 9.3. Revocation and Effect of Consents and Waivers. A consent to an amendment, supplement or a waiver by a Holder of
a Note shall bind the Holder and every subsequent Holder of that Note or portion of the Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent or waiver is not made on the Note. However, any such
Holder or subsequent Holder may revoke the consent or waiver as to such Holder’s Note or portion of the Note if the Trustee receives the notice of revocation before the date the amendment, supplement or waiver becomes effective. After an
amendment, supplement or waiver becomes effective, it shall bind every Holder of each Series affected by such amendment, supplement or waiver. An amendment, supplement or waiver becomes effective once both (i) the requisite number of consents
have been received by the Company or the Trustee and (ii) such amendment or waiver has been executed by the Company and the Trustee. 

The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to give their
consent or take any other action described above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding 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 give such consent or to revoke any consent previously given or to take any such action, whether or not such Persons continue to be Holders after such record date. No
such consent shall be valid or effective for more than 120 days after such record date. 
 Section 9.4. Notation on or
Exchange of Notes. If an amendment changes the terms of a Note, the Trustee may require the Holder of the Note to deliver it to the Trustee. The Trustee may place an appropriate notation on the Note regarding the changed terms and return it to
the Holder. Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Note shall issue and the Trustee shall authenticate a new Note that reflects the changed terms. Failure to make the appropriate notation or to
issue a new Note shall not affect the validity of such amendment. 
 Section 9.5. Trustee to Sign Amendments. The
Trustee shall sign any amendment, supplement or waiver authorized pursuant to this Article IX if the amendment, supplement or waiver does not adversely affect the rights of the Trustee. If it does, the Trustee may, but need not, sign it. In signing
such amendment, supplement or waiver the Trustee shall (subject to Section 7.2) receive and shall be fully protected in conclusively relying upon, an Officers’ Certificate and an Opinion of Counsel stating that such amendment is authorized
or permitted by this Indenture and that such amendment is an enforceable obligation of the Company. The Trustee shall also be entitled to request indemnity reasonably satisfactory to it in connection with signing an amendment, supplement or waiver.

  

 37 

 Section 9.6. Payment for Consent. Neither the Company nor any Affiliate of the
Company shall, directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee or otherwise, to any Holder for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of this
Indenture or the Notes unless such consideration is offered to be paid to all Holders, ratably, that so consent, waive or agree to amend in the time frame set forth in solicitation documents relating to such consent, waiver or agreement. 

 

 38 

 ARTICLE X  

MISCELLANEOUS 

Section 10.1. Trust Indenture Act Controls. If this Indenture is qualified under the TIA and any provision of this Indenture
limits, qualifies or conflicts with another provision which is required to be included in this Indenture by the TIA, the required provision shall control. 

Section 10.2. Notices. Any notice or communication shall be in writing (including facsimile) and delivered in person or
mailed by first-class mail addressed as follows: 
  

	
	If to the Company:
	
	 Choice Hotels International, Inc.

10750 Columbia Pike
 Silver Spring, Maryland
20901
 Attention: David L. White

	
	If to the Trustee:
	
	 Wells Fargo Bank, National Association

45 Broadway, 14th Floor
 New York, New York 10006

 Attention: Corporate Trust Services – Administrator for Choice Hotels International, Inc.

The Company or the Trustee by written 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 the Holder at the Holder’s address as
it appears on the registration books of the Registrar and shall be sufficiently given if so mailed within the time prescribed. 

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.
If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it. 

Section 10.3. Communication by Holders with Other Holders. Holders may communicate pursuant to TIA § 312(b) with
other Holders with respect to their rights under this Indenture or the Notes. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c). 

Section 10.4. Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Company to the
Trustee to take or refrain from taking any action under this Indenture, the Trustee shall be entitled to receive: 
 (1) an
Officers’ Certificate in form and substance reasonably satisfactory to the Trustee 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 
 (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee stating that, in the opinion
of such counsel, all such conditions precedent have been complied with. 
  

 39 

 Section 10.5. Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a covenant or condition provided for in this Indenture shall include: 
 (1) a statement
that the individual making such certificate or opinion has read such covenant or condition; 
 (2) a brief statement as to the
nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 

(3) a statement that, in the opinion of such individual, 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 
 (4) a statement as to
whether or not, in the opinion of such individual, such covenant or condition has been complied with. 
 Section 10.6.
Rules by Trustee, Paying Agent and Registrar. The Trustee may make reasonable rules for action by or a meeting of Holders. The Registrar and the Paying Agent may make reasonable rules for their functions. 

Section 10.7. Legal Holidays. Unless otherwise provided by Board Resolution, Officers’ Certificates or supplemental
indenture hereto for any particular Series, a “Legal Holiday” is a Saturday, Sunday or other day on which banking institutions in New York State are authorized or required by law to close. If a payment date is a Legal Holiday, payment
shall be made on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period. If a Regular Record Date is a Legal Holiday, the record date shall not be affected. 

Section 10.8. Governing Law. THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

Section 10.9. No Recourse Against Others. No director, officer, employee, incorporator or stockholder, as such, of the
Company shall have any liability for any obligations of the Company under the Notes, this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Note, each Holder shall waive and release
all such liability. This waiver and release shall be part of the consideration for the issuance of the Notes. 

Section 10.10. Successors. All agreements of the Company in this Indenture and the Notes shall bind its successors. All
agreements of the Trustee in this Indenture shall bind its successors. 
 Section 10.11. Multiple Originals; Electronic
Signatures. 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. The exchange of copies of this Indenture and of signature pages by facsimile
or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF
shall be deemed to be their original signatures for all purposes. 
 Section 10.12. Waiver of Jury Trial. EACH OF
THE COMPANY, AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTIONS
CONTEMPLATED HEREBY. 
  

 40 

 Section 10.13. Table of Contents; Headings. The table of contents,
cross-reference sheet and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not intended to be considered a part hereof and shall not modify or restrict any of the terms or provisions
hereof. 
 Section 10.14. Severability. If any provision in this Indenture is deemed unenforceable, it shall not
affect the validity or enforceability of any other provision set forth herein, or of the Indenture as a whole. 

Section 10.15. Submission to Jurisdiction and Venue. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY ARISING OUT OF OR
RELATING HERETO, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS INDENTURE, EACH PARTY, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY
SUBMITS TO AND ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, TO THE APPLICABLE PARTY; AGREES THAT SERVICE AS PROVIDED ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN
EVERY RESPECT; AND AGREES EACH OTHER PARTY RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY PARTY IN THE COURTS OF ANY OTHER JURISDICTION HAVING JURISDICTION OVER SUCH PARTY. 

Section 10.16. Force Majeure. In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or other force majeure events, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use commercially reasonable
efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances. 

Section 10.17. U.S.A. Patriot Act. The parties hereto acknowledge that in accordance with Section 326 of the U.S.A.
Patriot Act, as amended, the Trustee, in accordance with requirements applicable to financial institutions, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an
account with the Trustee. Each party to this Indenture agrees that it will provide the Trustee with such information as the Trustee may request in order for the Trustee to comply with the requirements of the U.S.A. Patriot Act applicable to the
Trustee. 
 Section 10.18. Acts of Holders. 

(i) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given
or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments are delivered to the Trustee and to the 
  

 41 

 
Company. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the Company, if made in the manner provided in this
Section. 
 (ii) The fact and date of the execution by any Person of any such instrument or writing may be proved by the
affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to such officer the
execution thereof. Where such execution is by a signer acting in a capacity other than such signer’s individual capacity, such certificate or affidavit shall also constitute sufficient proof of such signer’s authority. The fact and date of
the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner which the Trustee deems sufficient. 

(iii) The ownership of bearer securities may be proved by the production of such bearer securities. The Trustee and the Company may
assume that such ownership of any bearer security continues until (i) such bearer security is produced to the Trustee by some other Person, (ii) such bearer security is surrendered in exchange for a registered security or (iii) such
bearer security is no longer outstanding. The ownership of bearer securities may also be proved in any other manner which a Responsible Officer of the Trustee deems sufficient. 

(iv) The ownership of registered securities shall be proved by the register maintained by the Registrar. 

(v) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Note shall bind every
future Holder of the same Note and the Holder of every Note issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company in
reliance thereon, whether or not notation of such action is made upon such Note. 
 (vi) If the Company shall solicit from the
Holders any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to a Board Resolution, fix in advance a record date for the determination of Holders entitled to give such
request, demand, authorization, direction, notice, consent, waiver or other Act, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act
may be given before or after such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of outstanding Notes
have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the outstanding Notes shall be computed as of such record date; provided, that such
authorization, agreement or consent by the Holders on such record date shall not be deemed effective unless it shall become effective pursuant to the provisions of this Indenture within six months after the record date. 

[Signatures on following page] 
  

 42 

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

			
	CHOICE HOTELS INTERNATIONAL, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to Indenture]

  

 43 

 INCUMBENCY CERTIFICATE 

The undersigned,
                            , being the
                             of
                             (the “Company”) does hereby certify that the individuals listed
below are qualified and acting officers of the Company as set forth in the right column opposite their respective names and the signatures appearing in the extreme right column opposite the name of each such officer is a true specimen of the genuine
signature of such officer and such individuals have the authority to execute documents to be delivered to, or upon the request of,
                            , as Trustee under the Indenture dated as of
                 , 20    , by and between the Company and
                            . 

 

											
	 Name
	 	  	  	 Title
	  	  	  	 Signature
	  	  
						
	  
	 		  	  
	  		  	  
	  	
						
	  
	 		  	  
	  		  	  
	  	
						
	  
	 		  	  
	  		  	  
	  	

 IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Certificate as of the
     day of             , 20    . 

 

	
	  

	Name:
	Title:

  

 44Exhibit 4.2

 Exhibit 4.2 

 
  

CHOICE HOTELS INTERNATIONAL, INC. 

and the Guarantors named herein 
  

 
 FORM OF FIRST SUPPLEMENTAL
INDENTURE 
 Dated as of [            ] 

to 
 INDENTURE

 Dated as of [            ] 

 
  

WELLS FARGO BANK, National Association 

Trustee 
  

 

 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
		
	Article I DEFINITIONS	  	2
	 Section 1.1
	  	Definitions	  	2
	 Section 1.2
	  	Other Definitions	  	5
		
	Article II DESIGNATION AND TERMS OF THE NOTES	  	5
	 Section 2.1
	  	Title and Aggregate Principal Amount	  	5
	 Section 2.2
	  	Execution	  	6
	 Section 2.3
	  	Other Terms and Form of the Senior Notes	  	6
	 Section 2.4
	  	Further Issues	  	6
	 Section 2.5
	  	Interest and Principal	  	6
	 Section 2.6
	  	Place of Payment	  	6
	 Section 2.7
	  	Form and Dating	  	6
	 Section 2.8
	  	Depositary; Registrar	  	7
	 Section 2.9
	  	Optional Redemption	  	7
		
	Article III AMENDMENTS	  	7
	 Section 3.1
	  	With Consent of Holders	  	7
		
	Article IV LEGAL DEFEASANCE, COVENANT DEFEASANCE AND SATISFACTION AND DISCHARGE	  	7
	 Section 4.1
	  	Legal Defeasance, Covenant Defeasance and Satisfaction and Discharge	  	7
		
	Article V CHANGE OF CONTROL	  	7
	 Section 5.1
	  	Offer to Purchase upon Change of Control	  	7
		
	Article VI GUARANTEES	  	9
	 Section 6.1
	  	Guarantees	  	9
	 Section 6.2
	  	Limitation on Liability; Termination, Release and Discharge	  	11
	 Section 6.3
	  	Right of Contribution	  	11
	 Section 6.4
	  	No Subrogation	  	11
	 Section 6.5
	  	Future Guarantors	  	11
		
	Article VII EVENTS OF DEFAULT	  	12
	 Section 7.1
	  	Events of Default	  	12
		
	Article VIII MISCELLANEOUS	  	12
	 Section 8.1
	  	Ratification of Original Indenture; Supplemental Indentures Part of Original Indenture	  	12
	 Section 8.2
	  	Concerning the Trustee	  	13
	 Section 8.3
	  	Multiple Originals; Electronic Signatures	  	13
	 Section 8.4
	  	GOVERNING LAW	  	13
		
	EXHIBIT A	  	A-1
		
	EXHIBIT B	  	B-1

  

 i 

 FIRST SUPPLEMENTAL INDENTURE, dated as of
[            ](this “First Supplemental Indenture”), to the Indenture, dated as of [            ] (the
“Original Indenture”), among CHOICE HOTELS INTERNATIONAL, INC., a corporation organized under the laws of Delaware (the “Company”), BRENTWOOD BOULEVARD HOTEL DEVELOPMENT, LLC, a limited liability company
organized under the laws of Delaware, CHOICE CAPITAL CORP., a corporation organized under the laws of Delaware, CHOICE HOTELS INTERNATIONAL SERVICES CORP., a corporation organized under the laws of Delaware, CSES, LLC, a limited
liability company organized under the laws of Delaware, DRY POCKET ROAD HOTEL DEVELOPMENT, LLC, a limited liability company organized under the laws of Delaware, PARK LANE DRIVE HOTEL DEVELOPMENT, LLC, a limited liability company organized under the
laws of Delaware, SUBURBAN FRANCHISE HOLDING COMPANY, INC., a corporation organized under the laws of Georgia and SUBURBAN FRANCHISE SYSTEMS, INC., a corporation organized under the laws of Georgia, as Guarantors (as defined herein) and WELLS FARGO
BANK, NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America, as trustee (the “Trustee”). 

WHEREAS, the Company and the Trustee have heretofore executed and delivered the Original Indenture to provide for the issuance from time
to time of Notes (as defined in the Original Indenture) of the Company, to be issued in one or more Series; 
 WHEREAS,
Sections 2.2 and 9.1 of the Original Indenture provide, among other things, that the Company and the Trustee may enter into indentures supplemental to the Original Indenture for, among other things, the purpose of establishing the designation,
form, terms and conditions of Notes of any Series permitted by Sections 2.1 and 9.1 of the Original Indenture; 
 WHEREAS,
the Company (i) desires the issuance of one Series of Notes to be designated as hereinafter provided and (ii) has requested the Trustee to enter into this First Supplemental Indenture for the purpose of establishing the designation, form,
terms and conditions of the Notes of such Series; 
 WHEREAS, the Company has duly authorized the creation of an issue of its
[    ]% Senior Notes Due [            ] (the “Senior Notes” or the “Notes”), which expression includes any further Notes issued
pursuant to Section 2.4 hereof and forming a single Series therewith of substantially the tenor and amount hereinafter set forth; 

WHEREAS, each Guarantor (as defined herein) has duly authorized the execution and delivery of this First Supplemental Indenture to
provide for the issuance of its Guarantee (as defined herein); and 
 WHEREAS, all action on the part of the Company necessary
to authorize the issuance of the Notes under the Original Indenture and this First Supplemental Indenture (the Original Indenture, as supplemented by this First Supplemental Indenture, being hereinafter called the “Indenture”) has
been duly taken. 
  

 1 

 NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH: 

That, in order to establish the designation, form, terms and conditions of, and to authorize the authentication and delivery of the Notes
and in consideration of the acceptance of the Notes by the Holders thereof and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

ARTICLE I 

DEFINITIONS 

Section 1.1 Definitions. 

(a) Capitalized terms used herein and not otherwise defined herein shall have the respective meanings ascribed thereto in the Original
Indenture. 
 (b) The rules of interpretation set forth in the Original Indenture shall be applied hereto as if set forth in
full herein. 
 (c) For all purposes of this First Supplemental Indenture, except as otherwise expressly provided or unless the
context otherwise requires, the following terms shall have the following meanings: 
 “Bank Credit Agreement”
means the Senior Unsecured Revolving Credit Facility agreement dated June 16, 2006 among Choice Hotels International, Inc., Wachovia Bank, National Association, as Agent, SunTrust Bank, as Syndication Agent, Bank of America, N.A., as
Documentation Agent, Wachovia Capital Markets, LLC, as Lead Arranger and Sole Book Manager, and the additional lenders named in the credit agreement, as such agreement may be amended, modified, renewed, refunded, restated, refinanced or replaced
from time to time. 
 “Bank Credit Agreement Guarantor” means every Subsidiary of the Company that is or
becomes a guarantor under the Bank Credit Agreement from time to time; provided that, to the extent that any Subsidiary ceases to be a guarantor under the Bank Credit Agreement, such Subsidiary shall cease to be a Bank Credit Agreement
Guarantor. 
 “Beneficial Ownership” shall have the meaning provided in Rule 13d-3 of the SEC under the
Exchange Act. 
 “Change of Control” means (i) any Person or two or more Persons acting in concert (other
than, in either case, a Permitted Holder) shall have acquired Beneficial Ownership, directly or indirectly, of, or shall have acquired by contract or otherwise, Voting Stock of the Company (or other securities convertible into such Voting Stock)
representing 50% or more of the combined voting power of all Voting Stock of the Company, (ii) the direct or indirect sale, assignment, transfer, lease, conveyance or other disposition (other than by way of merger or consolidation), in one or a
series of related transactions, of all or substantially all of the Company’s and its Subsidiaries’ properties or assets, taken as a whole, to any “person” (individually and as that term is used in Section 13(d)(3) and
Section 14(d)(2) of the Exchange Act), other than the Company or one of its Subsidiaries, or (iii) Continuing Directors shall cease for any reason to constitute a majority of the members of the board of directors of the Company then in
office. Notwithstanding the foregoing, a transaction effected to create a holding company for the Company will not, in and of itself, constitute a Change of Control if (i) pursuant to such transaction the Company becomes a direct or indirect
wholly owned subsidiary of such holding company, and (ii) immediately following that transaction no Person (other than a Permitted Holder) is the Beneficial Owner, directly or indirectly, of Voting Stock of such holding company (or other
securities convertible into such Voting Stock) representing 50% or more of the combined voting power of all Voting Stock of such holding company. 
  

 2 

 “Change of Control Triggering Event” means (i) the occurrence of a
Change of Control and (ii) the Notes cease to be rated Investment Grade by both Rating Agencies, or in the absence of such rating for the Notes, the Company’s corporate rating, in the case of S&P, or the Company’s corporate family
rating, in the case of Moody’s, for Dollar-denominated senior unsecured long-term debt ceases to be rated Investment Grade, by both Rating Agencies on any date during the Trigger Period. Notwithstanding the foregoing, no Change of Control
Triggering Event will be deemed to have occurred in connection with any particular Change of Control unless and until such Change of Control has actually been consummated. 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent that would be
used, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes. 

“Comparable Treasury Price” means, with respect to any redemption date and any Notes of a Series to be redeemed
(i) the average of four Reference Treasury Dealer Quotations for such redemption date and Series, after excluding the highest and lowest of such Reference Treasury Dealer Quotations or (ii) if the Company obtains fewer than four Reference
Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations obtained. 
 “Continuing
Directors” means, during any period of up to 24 consecutive months after the date hereof, individuals who at the beginning of such 24 month period were directors of the Company (together with any new director whose election by the
Company’s Board of Directors or whose nomination for election by the Company’s stockholders was approved by a vote of (i) at least a majority of the directors then still in office who either were directors at the beginning of such
period or whose election or nomination for election was previously so approved or (ii) Permitted Holders representing not less than 50% of the combined voting power of all Voting Stock of the Company). 

“Definitive Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with
Article III hereof substantially in the form of Exhibit A hereto, except that such Notes shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges or Interests in the Global Note” attached thereto. 

“Existing Stockholder” means any stockholder of the Company which, together with such stockholder’s affiliates,
owns more than 5% of the common stock of Choice Hotels International, Inc. as of [            ], so long as the Bainum Affiliates continue to own more common stock of Choice Hotels
International, Inc. than such Existing Stockholder. 
 “Global Note Legend” means the legend set forth in
Section 3.3, which is required to be placed on all Global Notes issued hereunder. 
 “Global Note”
means the Note deposited with or on behalf of and registered in the name of the Depositary or its nominee, substantially in the form of Exhibit A hereto and that bears the Global Note Legend and that has the “Schedule of Exchanges or
Interests in the Global Note” attached thereto, issued in accordance with Section 2.15 of the Original Indenture and Section 2.7 hereof. 
  

 3 

 “guarantee” means any obligation, contingent or otherwise, of any Person
directly or indirectly guaranteeing any Indebtedness of any other Person and 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 agreement to keep-well, to purchase assets, goods, securities or services, 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, however, that the term
“guarantee” will not include endorsements for collection or deposit in the ordinary course of business. The term “guarantee” used as a verb has a corresponding meaning. 

“Guarantee” means, individually, any guarantee of payment of the Notes by a Guarantor pursuant to the terms of this
First Supplemental Indenture, and, collectively, all such Guarantees. 
 “Guarantor” means each Subsidiary of
the Company party to this First Supplemental Indenture as a guarantor, and each Subsidiary of the Company that is or becomes a Bank Credit Agreement Guarantor; provided, that, to the extent that a Subsidiary ceases to be a Bank Credit Agreement
Guarantor, such Subsidiary shall automatically and without further action cease to be a Guarantor. 
 “Investment
Grade” means a rating equal to or higher than Baa3 by Moody’s (or its equivalent under any successor rating category of Moody’s); a rating equal to or higher than BBB- by S&P (or its equivalent under any successor rating
category of S&P); and an equivalent rating of any replacement agency, respectively. 
 “Moody’s” means
Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation, and its successors. 
 “Permitted
Holder” means (A) (i) all lineal descendents of Stewart W. Bainum, and all spouses and adopted children of such descendents, (ii) all trusts for the benefit of any person described in clause (i) and trustees of such
trusts; (iii) all legal representatives of any person or trust described in clauses (i) and (ii); and (iv) all partnerships, corporations, limited liability companies or other entities controlled by a Person described in clauses (i),
(ii) or (iii) (such persons referred to in this clause (A) collectively, “Bainum Affiliates”); or (B) any other Existing Stockholder. 

“Primary Treasury Dealer” means an investment banking firm that is a primary Government Securities dealer in the United
States. 
 “Quotation Agent” means one of the Reference Treasury Dealers selected by the Company. 

“Rating Agency” means S&P and Moody’s or if S&P or Moody’s or both shall not make publicly available a
rating of the notes or a rating of the Company’s corporate credit for Dollar-denominated senior unsecured long term debt generally, a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Company which
shall be substituted for S&P or Moody’s or both, as the case may be. 
 “Reference Treasury Dealer”
means (i) [    ] or their respective successors or 
  

 4 

 
Affiliates that are Primary Treasury Dealers; provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Company shall substitute therefor
another Primary Treasury Dealer and (ii) any other Primary Treasury Dealer selected by the Company. 
 “Reference
Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding the date that a notice of redemption is given. 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and its
successors. 
 “Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. The
Treasury Rate will be calculated on the third Business Day preceding the date that a notice of redemption is given. 

“Trigger Period,” with respect to a Change of Control Triggering Event, means the period commencing 60 days prior to the
first public announcement by the Company of any Change of Control (or pending Change of Control) and ending 60 days following consummation of such Change of Control (which will be extended following the consummation of a Change of Control for so
long as any of the Rating Agencies has publicly announced that it is considering a possible ratings change). 
 Section 1.2
Other Definitions. 
  

			
	 Term
	  	Defined in Section
	 “Bainum Affiliates”
	  	1.1, “Permitted Holder”
	 “Change of Control Offer”
	  	5.1
	 “Change of Control Payment”
	  	5.1
	 “Change of Control Payment Date”
	  	5.1
	 “DTC”
	  	2.7
	 “Interest Payment Date”
	  	2.5
	 “Obligations”
	  	6.1
	 “Regular Record Date”
	  	2.5
	 “Redemption Price”
	  	2.9

 ARTICLE II

 DESIGNATION AND TERMS OF THE NOTES 

Section 2.1 Title and Aggregate Principal Amount. There is hereby created one Series of Notes designated: [  ]%
Senior Notes Due [  ]. The initial aggregate principal amount of the Notes to be issued under this Supplemental Indenture shall be
$[                    ]. 
  

 5 

 Section 2.2 Execution. The Senior Notes may forthwith be executed by the Company
and delivered to the Trustee for authentication and delivery by the Trustee in accordance with the provisions of Section 2.4 of the Original Indenture. 

Section 2.3 Other Terms and Form of the Senior Notes. The Senior Notes shall have and be subject to such other terms as
provided in the Original Indenture and this First Supplemental Indenture and shall be evidenced by one or more Global Notes in the form of Exhibit A hereof and as set forth in Section 2.7 hereof. 

Section 2.4 Further Issues. The Company may from time to time, without the consent of the Holders of the Senior Notes and in
accordance with the Original Indenture and this First Supplemental Indenture, create and issue further Notes having the same terms and conditions as the Senior Notes in all respects (or in all respects except for the first Interest Payment Date and
the date from which interest will accrue, the issue date and issue price) so as to form a Single Series with the Senior Notes, but only if the further Notes are fungible with the Senior Notes for U.S. federal income tax purposes. 

Section 2.5 Interest and Principal. The Senior Notes will mature on
[            ] and will bear interest at the rate of     % per annum. The Company will pay interest on the Senior Notes on each
[            ] and [            ] (each an “Interest Payment Date”), beginning on
[            ], to the holders of record on the immediately preceding [            ] or
[            ] (each a “Regular Record Date”), respectively. Interest on the Senior Notes shall accrue from the most recent date to which interest has been paid or, if no interest
has been paid, from the date of issuance. Payments of the principal of and interest on the Senior Notes shall be made in Dollars, and the Senior Notes shall be denominated in Dollars. If any Interest Payment Date, any redemption date, the maturity
date or any other date on which the principal of or premium, if any, or interest on a note becomes due and payable falls on a day that is not a business day, the required payment shall be made on the next business day as if it were made on the date
the payment was due, and no interest shall accrue on the amount so payable for the period from and after the interest payment date, redemption date, maturity date or other day, as the case may be. 

Section 2.6 Place of Payment. The place of payment where the Senior Notes issued in the form of Definitive Notes may be
presented or surrendered for payment, where the principal of and interest and any other payments due on the Senior Notes issued in the form of Definitive Notes are payable, where the Senior Notes may be surrendered for registration of transfer or
exchange and where notices and demands to and upon the Company in respect of the Senior Notes and the Indenture may be served shall be in the Borough of Manhattan, The City of New York, and the office or agency maintained by the Company for such
purpose shall initially be the Corporate Trust Office of the Trustee. All payments on Senior Notes issued in the form of Global Notes shall be made by wire transfer of immediately available funds to the Depositary and, at the option of the Company,
payment of interest on the Senior Notes issued in the form of Definitive Notes may be made by check mailed to registered Holders. 

Section 2.7 Form and Dating. 

(a) General. The Senior Notes and the Trustee’s certificate of authentication will be substantially in the form of Exhibit A
hereto. The terms and provisions contained in the Senior Notes will constitute, and are hereby expressly made, a part of this First Supplemental Indenture and the Company and the Trustee, by their execution and delivery of this First Supplemental
Indenture, expressly agree to such terms and provisions and to be 
  

 6 

 
bound thereby. However, to the extent any provision of any Note conflicts with the express provisions of this First Supplemental Indenture, the provisions of this First Supplemental Indenture
shall govern and be controlling. 
 (b) Global Note. The Notes shall be issued initially in the form of a Global Note,
deposited with the Trustee as custodian for The Depository Trust Company (“DTC”) or such other Depositary as any officer of the Company may from time to time designate. 

Section 2.8 Depositary; Registrar. The Company initially appoints DTC to act as Depositary with respect to the
Global Notes. The Company initially appoints the Trustee to act as the Registrar and the paying agent and designates the Trustee’s New York office as the office or agency referred to in Section 2.5 of the Original Indenture.

 Section 2.9 Optional Redemption. The Senior Notes will be redeemable, in whole or in part in integral multiples
of $1,000 principal amount, at the option of the Company at any time at a redemption price equal to the greater of (i) 100% of the principal amount of the Senior Notes being redeemed and (ii) as calculated by the Quotation Agent, the sum
of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed from the redemption date to the date of maturity (except for accrued but unpaid interest) discounted to the redemption date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus [            ] basis points; plus, in each case, accrued but unpaid
interest on the Notes to, but not including, the redemption date (the “Redemption Price”). 
 ARTICLE III

 AMENDMENTS 

Section 3.1 With Consent of Holders. Without the consent of each Holder affected, an amendment or supplement to the Original
Indenture or this First Supplemental Indenture may not make any change in any Guarantee. 
 ARTICLE IV 

LEGAL DEFEASANCE, COVENANT DEFEASANCE 

AND SATISFACTION AND DISCHARGE 

Section 4.1 Legal Defeasance, Covenant Defeasance and Satisfaction and Discharge. Article VIII of the Original Indenture
shall be applicable to the Notes. The Company may defease the covenant contained in Section 5.1 of this First Supplemental Indenture under the provisions of Section 8.3 of the Original Indenture. 

ARTICLE V 

CHANGE OF CONTROL 

Section 5.1 Offer to Purchase upon Change of Control. 

(a) If a Change of Control Triggering Event occurs, unless the Company has exercised any right to redeem the Notes, each Holder will have
the right to require that the Company repurchase all or a portion (equal to an integral multiple of $1,000) of such Holder’s Notes pursuant to an offer by the Company (a “Change of Control Offer”) at a repurchase price in cash
equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest, if any, on the Notes repurchased, to the date of repurchase (the 

 

 7 

 
“Change of Control Payment”). If any Note is to be redeemed in part only, the principal amount of the Note that remains outstanding after the redemption in part shall be $2,000
or a higher integral multiple of $1,000. Within 30 days following any Change of Control Triggering Event, or at the Company’s option, prior to any Change of Control but after the public announcement of the pending Change of Control, the Company
will mail a notice to each Holder, with a copy to the Trustee, which terms will govern the terms of the Change of Control Offer. Such notice shall state, among other things: 

(i) that the Change of Control Offer is being made pursuant to this Section 5.1 and that all Notes tendered will be
accepted for payment; 
 (ii) that a Change of Control Triggering Event has occurred and that such Holder has the
right to require the Company to repurchase all or a portion of such Holder’s Notes at the Change of Control Payment; 

(iii) the circumstances and relevant facts regarding such Change of Control Triggering Event; 

(iv) the purchase date, which shall be no earlier than 30 days and no later than 60 days from the date such notice is
mailed, other than as may be required by law (the “Change of Control Payment Date”); 
 (v) the
instructions, as determined by the Company, consistent with this Section 5.1; 
 (vi) that any Note not
tendered will continue to accrue interest; 
 (vii) that, unless the Company defaults in the payment of the
Change of Control Payment, all Notes accepted for payment pursuant to the Change of Control Offer will cease to accrue interest after the Change of Control Payment Date; 

(viii) that Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be required to
surrender the Notes, with the form entitled “Option of Holder to Elect Purchase” attached to the Notes completed, to the Paying Agent at the address specified in the notice prior to the close of business on the third Business Day preceding
the Change of Control Payment Date; 
 (ix) that Holders will be entitled to withdraw their election if the
Paying Agent receives, not later than the close of business on the second Business Day preceding the Change of Control Payment Date, a facsimile transmission or letter setting forth the name of the Holder, the principal amount of Notes delivered for
purchase, and a statement that such Holder is withdrawing his election to have the Notes purchased; and 
 (x)
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, which unpurchased portion must be equal to $2,000 in principal amount or an integral
multiple of $1,000 in excess thereof. 
 The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent those laws and 
  

 8 

 
regulations are applicable in connection with the repurchase of the Notes as a result of a Change in Control Triggering Event. To the extent that the provisions of any securities laws or
regulations conflict with the provisions of this Section 5.1, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section 5.1 by virtue of such
compliance. 
 (b) On the Change of Control Payment Date, the Company will, to the extent lawful: 

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

 (ii) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or
portions of Notes properly tendered; and 
 (iii) deliver or cause to be delivered to the Trustee the Notes
properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being purchased by the Company. 

The Paying Agent will promptly mail to each Holder of Notes properly tendered the Change of Control Payment for such Notes, and the
Trustee will promptly authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any; provided, that each new Note will be in a
principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. 
 (c) A Change of Control Offer may be made in
advance of a Change of Control, conditional upon such Change of Control, if a definitive agreement is in place for the Change of Control at the time of making of the Change of Control Offer. The Change of Control Offer, if mailed prior to the date
of consummation of the Change of Control, will state that the offer is conditioned on the Change of Control being consummated on or prior to the Change of Control Payment Date. 

(d) Notwithstanding anything to the contrary in this Section 5.1, the Company will not be required to make a Change of Control Offer
upon a Change of Control Triggering Event if a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Section 5.1 and purchases all Notes properly tendered
and not withdrawn under such Change of Control Offer. 
 ARTICLE VI 

GUARANTEES 

Section 6.1 Guarantees 

(a) Each Guarantor hereby fully, unconditionally and irrevocably guarantees, as primary obligor and not merely as surety, jointly and
severally with each other Guarantor, to each Holder of the Notes and the Trustee the full and punctual payment when due, whether at maturity, by acceleration, by redemption, by repurchase, or otherwise, of the principal of, premium, if any, and
interest on the Notes and all other obligations of the Company under this First Supplemental Indenture (all the foregoing being hereinafter collectively called the “Obligations”). Each Guarantor further agrees (to the extent
permitted by law) that the Obligations may be extended or renewed, in whole or in part, without notice or further assent from it, and that it will remain bound under this Article VI notwithstanding any extension or renewal of any Obligation.

  

 9 

 (b) Each Guarantor waives presentation to, demand of payment from and protest to the Company
of any of the Obligations and also waives notice of protest for nonpayment. Each Guarantor waives notice of any default under the Notes or the Obligations. The obligations of each Guarantor hereunder shall not be affected by (a) the failure of
any Holder to assert any claim or demand or to enforce any right or remedy against the Company or any other person under this First Supplemental Indenture, the Notes or any other agreement or otherwise; (b) any extension or renewal of any
thereof; (c) any rescission, waiver, amendment or modification of any of the terms or provisions of this First Supplemental Indenture, the Notes or any other agreement; (d) the release of any security held by any Holder or the Trustee for
the Obligations or any of them; (e) the failure of any Holder to exercise any right or remedy against any other Guarantor; or (f) any change in the ownership of the Company. 

(c) Each Guarantor further agrees that its Guarantee herein constitutes a guarantee of payment when due (and not a guarantee of
collection) and waives any right to require that any resort be had by any Holder to any security held for payment of the Obligations. 

(d) The obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any
reason (other than payment of the Obligations in full), including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or termination whatsoever or by reason
of the invalidity, illegality or unenforceability of the Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of each Guarantor herein shall not be discharged or impaired or otherwise affected by the failure of
any Holder to assert any claim or demand or to enforce any remedy under this First Supplemental Indenture, the Notes or any other agreement, by any waiver or modification of any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the Obligations, or by any other act or thing or omission or delay to do any other act or thing which may or might in any manner or to any extent vary the risk of any Guarantor or would otherwise operate as a discharge of such
Guarantor as a matter of law or equity. 
 (e) Each Guarantor further agrees that its Guarantee herein shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of principal of or interest on any of the Obligations is rescinded or must otherwise be restored by any Holder upon the bankruptcy or reorganization of the
Company or otherwise. 
 (f) In furtherance of the foregoing and not in limitation of any other right which any Holder has at
law or in equity against any Guarantor by virtue hereof, upon the failure of the Company to pay any of the Obligations when and as the same shall become due, whether at maturity, by acceleration, by redemption, by repurchase or otherwise, each
Guarantor hereby promises to and will, upon receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the Holders an amount equal to the sum of (i) the unpaid amount of such Obligations then due and owing and
(ii) accrued and unpaid interest on such Obligations then due and owing (but only to the extent not prohibited by law). 

(g) Each Guarantor further agrees that, as between such Guarantor, on the one hand, and the Holders, on the other hand, (x) the
maturity of the Obligations guaranteed hereby may be accelerated as provided in this First Supplemental Indenture and the Original Indenture for the purposes of its Guarantee herein, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the Obligations guaranteed 
  

 10 

 
hereby and (y) in the event of any such declaration of acceleration of such Obligations, such Obligations (whether or not due and payable) shall forthwith become due and payable by the
Guarantor for the purposes of this Guarantee. 
 (h) Each Guarantor also agrees to pay any and all reasonable costs and expenses
(including reasonable attorneys’ fees) incurred by the Trustee or the Holders in enforcing any rights under this Section. 

Section 6.2 Limitation on Liability; Termination, Release and Discharge. 

(a) The obligations of each Guarantor hereunder will be limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of such Guarantor (including, without limitation, any guarantees under the Bank Credit Agreement) and after giving effect to any collections from or payments made by or on behalf of any other Guarantor in respect of
the obligations of such other Guarantor under its Guarantee or pursuant to its contribution obligations under this First Supplemental Indenture, result in the obligations of such Guarantor under its Guarantee not constituting a fraudulent conveyance
or fraudulent transfer under federal or state law. 
 (b) If a Guarantor ceases to be a Bank Credit Agreement Guarantor for any
reason or a discharge of this Indenture occurs pursuant to Section 4.1, such Guarantor(s) will be automatically and without further action be released from all of its (their) obligations under the Indenture and its (their) Guarantee of the
Securities and such Guarantee(s) will terminate. The Trustee shall execute such documentation as the Company may reasonably request to evidence such release. 

Section 6.3 Right of Contribution. Each Guarantor hereby agrees that to the extent that any Guarantor shall have paid more
than its proportionate share of any payment made on the obligations under the Guarantees, such Guarantor shall be entitled to seek and receive contribution from and against the Company or any other Guarantor who has not paid its proportionate share
of such payment. The provisions of this Section 6.3 shall in no respect limit the obligations and liabilities of each Guarantor to the Trustee and the Holders and each Guarantor shall remain liable to the Trustee and the Holders for the full
amount guaranteed by such Guarantor hereunder. 
 Section 6.4 No Subrogation. Notwithstanding any payment or
payments made by each Guarantor hereunder, no Guarantor shall be entitled to be subrogated to any of the rights of the Trustee or any Holder against the Company or any other Guarantor or any collateral security or guarantee or right of offset held
by the Trustee or any Holder for the payment of the Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from the Company or any other Guarantor in respect of payments made by such Guarantor hereunder,
until all amounts owing to the Trustee and the Holders by the Company on account of the Obligations are paid in full. If any amount shall be paid to any Guarantor on account of such subrogation rights at any time when all of the Obligations shall
not have been paid in full, such amount shall be held by such Guarantor in trust for the Trustee and the Holders, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over to the Trustee in
the exact form received by such Guarantor (duly indorsed by such Guarantor to the Trustee, if required), to be applied against the Obligations. 

Section 6.5 Future Guarantors. After the date on which a Subsidiary (whether previously existing or created or acquired by
the Company) becomes a Bank Credit Agreement Guarantor, the Company will execute and deliver and cause such Subsidiary to 
  

 11 

 
execute and deliver to the Trustee a supplemental indenture pursuant to which such Subsidiary will unconditionally guarantee, on a joint and several basis with the other Guarantors, the full and
prompt payment of the principal of, premium, if any, and interest on the Notes on an unsecured and unsubordinated basis and become a party to this First Supplemental Indenture as a Guarantor for all purposes of the Indenture. 

ARTICLE VII 

EVENTS OF DEFAULT 

Section 7.1 Events of Default. In addition to the Events of Default under the Original Indenture, the following shall be
considered an Event of Default applicable to the Notes: 
 (1) any Guarantor pursuant to or within the meaning of any Bankruptcy Law:

 (A) commences a voluntary case; 

(B) consents to the entry of an order for relief against it in an involuntary case; or 

(C) consents to the appointment of a Custodian of it or for all or substantially all of its property; or 

(D) makes a general assignment for the benefit of its creditors; or 

(E) takes any comparable action under any foreign laws relating to insolvency; or 

(2) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

(A) is for relief against any Guarantor in an involuntary case; 

(B) appoints a Custodian of any Guarantor for all or substantially all of its property; or 

(C) orders the winding up or liquidation of the any Guarantor; or 

(D) any similar relief is granted under any foreign laws and the order or decree remains unstayed and in effect for 90 days; or

 (3) any Guarantee that ceases to be in full force and effect (except as contemplated by the terms hereof), or 

(4) any Guarantee that is declared in a judicial proceeding to be null and void, or any Guarantor that denies or disaffirms in writing its obligations
under the terms of this First Supplemental Indenture or its Guarantee. 
 ARTICLE VIII 

MISCELLANEOUS 

Section 8.1 Ratification of Original Indenture; Supplemental Indentures Part of Original Indenture. Except as expressly
amended hereby, the Original Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This First Supplemental Indenture shall form a part of the Original
Indenture for all purposes, and every Holder heretofore or hereafter authenticated and delivered shall be bound hereby. 
  

 12 

 Section 8.2 Concerning the Trustee. The recitals contained herein and in the
Notes, except with respect to the Trustee’s certificates of authentication, shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representations as to
the validity or sufficiency of this First Supplemental Indenture or of the Senior Notes. 
 Section 8.3 Multiple
Originals; Electronic Signatures. The parties may sign any number of copies of this First Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. The exchange of copies of this First
Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes.
Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. 

Section 8.4 GOVERNING LAW. THIS FIRST SUPPLEMENTAL INDENTURE AND EACH NOTE OF THE SERIES CREATED HEREUNDER SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 [Signature Page Follows] 
  

 13 

 IN WITNESS WHEREOF, the parties have caused this First Supplemental Indenture to be duly
executed by their respective officers thereunto duly authorized as of the date first above written. 
  

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  

		 	Name:
		 	Title:
	
	CHOICE HOTELS INTERNATIONAL, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	AS GUARANTORS
	
	CHOICE HOTELS INTERNATIONAL SERVICES CORP.
		
	By:	 	  

		 	Name:
		 	Title:
	
	CHOICE CAPITAL CORP.
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to First
Supplemental Indenture] 
  

 14 

			
	SUBURBAN FRANCHISE SYSTEMS, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	SUBURBAN FRANCHISE HOLDING COMPANY, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	PARK LANE DRIVE HOTEL DEVELOPMENT, LLC
	
	By: CHOICE HOTELS INTERNATIONAL SERVICES CORP.
	Its: Member
		
	By:	 	  

		 	Name:
		 	Title:

  

 [Signature Page to First Supplemental Indenture] 

15 

			
	BRENTWOOD BOULEVARD HOTEL DEVELOPMENT, LLC
	
	By: CHOICE HOTELS INTERNATIONAL SERVICES CORP.
	Its: Member
		
	By:	 	  

		 	Name:
		 	Title:
	
	DRY POCKET ROAD HOTEL DEVELOPMENT, LLC
	
	By: CHOICE HOTELS INTERNATIONAL SERVICES CORP.
	Its: Member
		
	By:	 	  

		 	Name:
		 	Title:
	
	CSES, LLC
	
	By: CHOICE HOTELS INTERNATIONAL SERVICES CORP.
	Its: Member
		
	By:	 	  

		 	Name:
		 	Title:

  

 [Signature Page to First Supplemental Indenture] 

16 

 EXHIBIT A 

[Face of Note] 

CUSIP/ISIN [            ] 

% Senior Note due [            ] 

 

			
	 No. [    ]
	 	$[            ]

CHOICE HOTELS INTERNATIONAL, INC. promises to pay to [            ] or registered assigns,
the principal sum of [            ] Dollars on              [    ],
         [or such greater or lesser amount as may be indicated in Schedule A hereto.]* 
 Interest Rate:
        % per annum 
 Interest Payment Dates:      and 

Regular Record Dates:      and 

Additional provisions of this Note are set forth on the other side of this Note. 

 

	*	Include only if Note is issued in Global Note Form 

  

 A-1 

 IN WITNESS WHEREOF, the parties have caused this instrument to be duly executed. 

 

			
	CHOICE HOTELS INTERNATIONAL, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	AS GUARANTORS
	
	CHOICE HOTELS INTERNATIONAL SERVICES CORP.
		
	By:	 	  

		 	Name:
		 	Title:
	
	CHOICE CAPITAL CORP.
		
	By:	 	  

		 	Name:
		 	Title:
	
	SUBURBAN FRANCHISE SYSTEMS, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	SUBURBAN FRANCHISE HOLDING COMPANY, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  

 A-2 

			
	PARK LANE DRIVE HOTEL DEVELOPMENT, LLC
	
	By: CHOICE HOTELS INTERNATIONAL SERVICES CORP.
	Its: Member
		
	By:	 	  

		 	Name:
		 	Title:
	
	BRENTWOOD BOULEVARD HOTEL DEVELOPMENT, LLC
	
	By: CHOICE HOTELS INTERNATIONAL SERVICES CORP.
	Its: Member
		
	By:	 	  

		 	Name:
		 	Title:
	
	DRY POCKET ROAD HOTEL DEVELOPMENT, LLC
	
	By: CHOICE HOTELS INTERNATIONAL SERVICES CORP.
	Its: Member
		
	By:	 	  

		 	Name:
		 	Title:
	
	CSES, LLC
	
	By: CHOICE HOTELS INTERNATIONAL SERVICES CORP.
	Its: Member
		
	By:	 	  

		 	Name:
		 	Title:

  

 A-3 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes of the Series designated therein referred to in the within mentioned Supplemental Indenture. 

Dated:                      

 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	By:	 	  

		 	Authorized Signatory

  

 A-4 

 [Reverse of Note] 

% Senior Note due [            ] 

[Unless and until it is exchanged in whole or in part for Notes in definitive form, this Note may not be transferred except as a whole by
the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary.
Unless this certificate is presented by an authorized representative of The Depository Trust Company (55 Water Street, New York, New York) (“DTC”), to the Company or its agent for registration of transfer, exchange or payment, and any
certificate issued is registered in the name of Cede & Co. or such other name as may be requested by an authorized representative of DTC (and any payment is made to Cede & Co. or such other entity as may be requested by an
authorized representative of DTC), any transfer, pledge or other use hereof for value or otherwise by or to any person is wrongful inasmuch as the registered owner hereof, Cede & Co., has an interest herein.]* 

 

	*	Include only if Note is issued in Global Note Form 

  

 A-5 

	1.	Indenture  

 This Note is
one of a duly authorized issue of Notes of the Company, designated as its [    ]% Senior Notes Due [            ] (herein called the “Notes,” which
expression includes any further Notes issued pursuant to Section 2.4 of the First Supplemental Indenture (as hereinafter defined) and forming a single Series therewith), issued and to be issued under an indenture, dated as of August
    , 2010 (herein called the “Original Indenture”), as supplemented by a supplemental indenture, dated as of August     , 2010 (the “First Supplemental Indenture,” and
together with the Original Indenture, the “Indenture”), among CHOICE HOTELS INTERNATIONAL, INC., a Delaware corporation (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein
called the “Company”), BRENTWOOD BOULEVARD HOTEL DEVELOPMENT, LLC, a limited liability company organized under the laws of Delaware, CHOICE CAPITAL CORP., a corporation organized under the laws of Delaware, CHOICE HOTELS
INTERNATIONAL SERVICES CORP., a corporation organized under the laws of Delaware, CSES, LLC, a limited liability company organized under the laws of Delaware, DRY POCKET ROAD HOTEL DEVELOPMENT, LLC, a limited liability company organized under
the laws of Delaware, PARK LANE DRIVE HOTEL DEVELOPMENT, LLC, a limited liability company organized under the laws of Delaware, SUBURBAN FRANCHISE HOLDING COMPANY, INC., a corporation organized under the laws of Georgia, SUBURBAN FRANCHISE SYSTEMS,
INC., a corporation organized under the laws of Georgia and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America, as trustee (the “Trustee”).
Reference is hereby made to the Indenture and all indentures supplemental thereto relevant to the Notes reference is hereby made for a complete description of the rights, limitations of rights, obligations, duties and immunities thereunder of the
Trustee, the Company and the Holders of the Notes. Capitalized terms used but not defined in this Note shall have the meanings ascribed to them in the Indenture. 

The Indenture imposes certain limitations on the ability of the Company and its Restricted Subsidiaries to create or incur Liens and to
enter into Sale and Leaseback Transactions. The Indenture also imposes certain limitations on the ability of the Company to merge, consolidate or amalgamate with or into any other person (other than a merger of a subsidiary into the Company) or
sell, transfer, assign, lease, convey or otherwise dispose of all or substantially all of the property of the Company in any one transaction or series of related transactions. 

Each Note is subject to, and qualified by, all such terms as set forth in the Indenture certain of which are summarized herein and each
Holder of a Note is referred to the corresponding provisions of the Indenture for a complete statement of such terms. To the extent that there is any inconsistency between the summary provisions set forth in the Notes and the Indenture, the
provisions of the Indenture shall govern. 
  

	2.	Interest  

 The Company
promises to pay interest on the principal amount of this Note at the rate per annum shown above. The Company will pay interest semiannually on and of each year, commencing
                    . 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                     . Interest shall be computed on the basis of a 360-day year of twelve 30-day months. 

 

	3.	Paying Agent, Registrar and Service Agent  

Initially the Trustee will act as paying agent, registrar and service agent. The Company may appoint and change any paying agent,
registrar or co-registrar and service agent without notice to Holders. The Company may act as paying agent, registrar, co-registrar or service agent. 
  

 A-6 

	4.	Defaults and Remedies; Waiver  

If an Event of Default (other than an Event of Default described in clauses (5) and (6) of Section 6.1 of the Indenture)
with respect to the Notes shall occur and be continuing, either the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding by notice as provided in the Indenture may declare the principal amount of the
Notes to be due and payable immediately. If an Event of Default described in clauses (5) and (6) of Section 6.1 of the Indenture occurs, the principal amount of all Notes will automatically, and without any action by the Trustee or
any Holder, become immediately due and payable. After any such declaration of acceleration, but before a judgment or decree based on such declaration of acceleration, the Holders of a majority in aggregate principal amount of the Notes then
outstanding may, under certain circumstances, rescind and annul such declaration of acceleration if all Events of Default, other than the non-payment of accelerated principal (or other specified amount), have been cured or waived as provided in the
Indenture. 
  

	5.	Amendment  

 Modifications
and amendments of the Indenture may be made by the Company and the Trustee without notice to any Holder but with the written consent of the Holders of at least a majority in aggregate principal amount of each affected Series of Notes then
outstanding (including consents obtained in connection with a tender offer or exchange offer for such Notes); provided, however, that no such modification or amendment may, without the consent of the Holder of each Note affected
thereby, (i) reduce the principal amount of any Notes issued under the indenture whose Holders must consent to an amendment, supplement or waiver; (ii) reduce the rate of or extend the time for payment of interest, including default
interest, on any Note issued under the Indenture; (iii) reduce the principal of or change the Stated Maturity of any Note or alter or waive any of the provisions with respect to the redemption of the Notes issued under the Indenture;
(iv) reduce the amount payable upon the redemption of any Note issued under the Indenture or change the time at which such Notes may be redeemed, if applicable; (v) make any Note payable in money other than that stated in the Note;
(vi) waive a Default or Event of Default in the payment of principal of or premium, if any, or interest on the Notes (except a rescission of acceleration of the securities by the Holders of at least a majority in aggregate principal amount of
then outstanding Notes and a waiver of the payment default that resulted from such acceleration); (vii) make any change in the provisions of the Indenture relating to waivers of past Defaults or the rights of Holders to receive payments of
principal of, or premium, if any, or interest on the Notes; (viii) waive a redemption payment with respect to any Note issued under the Indenture; (ix) make any change in the sections of the Indenture captioned “Waiver of Past
Defaults” and “Rights of Holders to Receive Payment” or in the provisions described in this sentence; or (x) make any change in the Guarantees. 

The Holders of the Notes, through the written consent of a majority in principal amount of the Notes then outstanding, may waive
compliance by the Company with certain covenants of the Indenture with respect to the Notes. 
  

 A-7 

 With respect to the Notes, notwithstanding the preceding paragraphs, without the consent of
any Holder of such Notes, the Company and the Trustee may amend or supplement the Indenture or the Notes (i) to cure any ambiguity, defect, omission or inconsistency; (ii) to provide for uncertificated Notes in addition to or in place of
certificated Notes; (iii) to provide for the assumption of the Company’s obligations to Holders of such Notes in the case of a merger or consolidation or sale of all or substantially all of the Company’s assets; (iv) to make any
change that would not materially adversely affect the legal rights under the Indenture of any such Holder; (v) to comply with requirements of the SEC in order to effect or maintain the qualification of the indenture under the Trust Indenture
Act of 1939, as amended; (vi) to provide for the issuance of additional Notes in accordance with the limitations set forth in the Indenture; (vii) to appoint a successor Trustee with respect to the Notes; or (viii) to add or change
any of the provisions of the Indenture necessary to provide for the administration of the trusts in the Indenture by more than one Trustee. 
  

	6.	Change of Control  

 If a
Change of Control Triggering Event occurs, and the Company has not previously exercised its option to redeem the Notes, each Holder will have the right to require that the Company repurchase all or a portion (equal to an integral multiple of $1,000)
of such Holder’s Notes pursuant to a Change of Control Offer at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of repurchase (subject to the right of Holders of record on the
relevant Regular Record Date to receive interest due on the relevant Interest Payment Date). 
  

	7.	Obligations Absolute  

 No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Note at the
place, at the respective times, at the rate and in the coin or currency herein prescribed. 
  

	8.	Sinking Fund  

 The Notes
will not have the benefit of any sinking fund. 
  

	9.	Denominations; Transfer; Exchange  

The Notes are issuable in registered form without coupons in denominations of $2,000 principal amount and any integral multiple of $1,000
in excess thereof. When Notes are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Notes of the same Series, the Registrar shall register the transfer or make the
exchange in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but with 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 similar governmental charge payable upon exchange or transfer pursuant to Sections 2.12, 3.8 and 9.4 of the Original Indenture and Section 5.1 of the First Supplemental Indenture). 

The Company and the Registrar shall not be required (a) to issue, register the transfer of or to exchange any Notes during a period
beginning at the opening of business 15 days before the day of mailing of a notice of redemption of Notes for redemption under Section 3.2 of the Original Indenture and ending at the close of business on the day of such mailing; (b) to
register the transfer of or to exchange any Note selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part; or (c) to register the transfer of or to exchange a Note between a Regular Record
Date and the next succeeding Interest Payment Date. 
  

 A-8 

	10.	Further Issues  

 The
Company may from time to time, without the consent of the Holders of the Notes and in accordance with the Indenture, create and issue further Notes having the same terms and conditions as the Notes in all respects (or in all respects except for the
first Interest Payment Date and the date from which interest accrues on the notes) so as to form a single Series with the Notes, but only if the further Notes are fungible with the Senior Notes for U.S. federal income tax purposes. 

 

	11.	Optional Redemption  

 The
Notes will be redeemable, in whole or in part, at the option of the Company at any time at a Redemption Price equal to the greater of: (A) 100% of the principal amount of the Notes being redeemed; and (B) as calculated by the Quotation
Agent, the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed from the redemption date to the date of maturity (except for accrued but unpaid interest) discounted to the redemption
date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus [    ] basis points; plus accrued but unpaid interest on the notes to, but not including, the
redemption date. 
  

	12.	Persons Deemed Owners  

The ownership of Notes shall be proved by the register maintained by the Registrar. 

 

	13.	No Recourse Against Others  

No director, officer, employee, incorporator or stockholder of the Company, as such, will have any liability for any obligations of the
Company under the Notes, 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 issuance of the Notes. The waiver may not be effective to waive liabilities under the federal securities laws. 
  

	14.	Discharge and Defeasance  

Subject to certain conditions set forth in the Indenture, the Company at any time may terminate some or all of its obligations under the
Notes and the Indenture if the Company deposits with the Trustee money and/or U.S. Government Obligations for the payment of principal of, premium, if any, and interest on the Notes to redemption or maturity, as the case may be. 

 

	15.	Guarantees  

 The payment
by the Company of the principal of and interest on the Notes is fully and unconditionally guaranteed on a joint and several basis by each of the Guarantors on the terms set forth in the Indenture. 

 

	16.	Trustee Dealings with the Company  

Subject to certain limitations imposed by the Trust Indenture Act, the Trustee in its individual or any other capacity may become the
owner or pledgee of Notes and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar or co-paying agent may do the same with like rights. 

 

 A-9 

	17.	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 rights of survivorship and not as tenants in common), CUST (=custodian), and
U/G/M/A (=Uniform Gift to Minors Act). 
  

	18.	CUSIP Numbers  

 Pursuant
to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and has directed the Trustee to use CUSIP numbers in notices of redemption as a
convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

  

	19.	Governing Law  

 THE
INDENTURE AND THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY. 
 The Company will furnish to any Holder of Notes upon written request and without
charge to the Holder a copy of the Indenture. 
  

 A-10 

 ASSIGNMENT FORM 

For value received
                     hereby sell(s), assign(s) and transfer(s) unto
                     (please insert social security or other identifying number of assignee) the within Note, and hereby irrevocably
constitutes and appoints                      attorney to transfer the said Note on the books of the Company, with full power of
substitution in the premises. 
 Dated:
                         

                         
            

                         
            
 Signature(s) 

Signature(s) must be guaranteed by an eligible Guarantor Institution (banks, stock brokers, savings and loan associations and credit unions) with
membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15. 

                         
            
 Signature Guarantee 

 

 A-11 

 Option of Holder to Elect Purchase 

If you want to elect to have this Note purchased by the Company pursuant to Section 5.1 of the First Supplemental Indenture, check the
box:   ̈ 
 If you want to elect to have only part of the Note purchased by the Company
pursuant to Section 5.1 of the First Supplemental Indenture, state the amount you elect to have purchased: 

$                    

  

					
	Date:	  		  	
			
	Your Signature:	  	  
	  	
		  	(Sign exactly as your name appears on the face of this Note)	  	

 Tax Identification No.:
                                        
 
 Signature Guarantee*:
                                        
 
  

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

 

 A-12 

 Schedule A 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE* 

The initial principal amount of this Note is U.S.
$[                    ]. The following increases or decreases in the principal amount of this Note have been made: 

 

									
	 Date
	  	Amount of decrease in
Principal
Amount of
this Note	  	Amount of increase in
Principal
Amount
of this Note	  	Principal Amount of
this Note
following
such
decrease or increase	  	Signature of authorized
Signatory of
Trustee or
Custodian
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  

	*	This schedule should be included only if the Note is issued in Global Note form. 

 

 A-13 

 EXHIBIT B 

FORM OF CERTIFICATE OF TRANSFER 

Choice Hotels International, Inc. 
 10750
Columbia Pike 
 Silver Spring, Maryland 20901 

Wells Fargo Bank, National Association, 
 As
Trustee and Registrar – DAPS Reorg 
 MAC N9303-121 

608 –
2nd Avenue South 

Minneapolis, MN 55479 
 Telephone No.:
(877) 872-4605 
 Fax No.: (866) 969-1290 

Email: DAPSReorg@wellsfargo.com 
  

			
	Re:	 	Choice Hotels International, Inc. [    ]% Senior Notes due
[            ]

 The undersigned hereby certifies that:

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

Social Security Number or other Identifying Number of Assignee
                             

(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 such Note on the books of the Company with full power of substitution in the premises. 

 

 B-1 

 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. 
  

			
	By:	 	  

		 	Name:
		 	Title:

 Dated:
                     
 Signature
Guarantee:
                                        

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements
include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended. 
  

 B-2

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