Document:

exv4w1

Exhibit 4.1

WYNDHAM WORLDWIDE CORPORATION

as Issuer

and

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 

FIFTH SUPPLEMENTAL INDENTURE

Dated as of March 1, 2011

to

INDENTURE

Dated as of November 20, 2008

 

5.625% Notes due 2021

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1. DEFINITIONS
	 	 	1	 
	Section 1.1 Definition of Terms
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2. GENERAL TERMS AND CONDITIONS OF THE NOTES
	 	 	5	 
	Section 2.1 Designation and Principal Amount
	 	 	5	 
	Section 2.2 Maturity
	 	 	5	 
	Section 2.3 Further Issues
	 	 	5	 
	Section 2.4 Form of Payment
	 	 	5	 
	Section 2.5 Global Securities and Denomination of Notes
	 	 	6	 
	Section 2.6 Interest
	 	 	6	 
	Section 2.7 Redemption
	 	 	6	 
	Section 2.8 Limitations on Liens.
	 	 	6	 
	Section 2.9 Limitations on Sale and Leaseback Transactions
	 	 	6	 
	Section 2.10 Merger, Consolidation and Sale of Assets
	 	 	7	 
	Section 2.11 Additional Amounts.
	 	 	7	 
	Section 2.12 Events of Default.
	 	 	10	 
	Section 2.13 Appointment of Agents
	 	 	11	 
	Section 2.14 Defeasance upon Deposit of Moneys or U.S. Government Obligations
	 	 	11	 
	Section 2.15 SEC Reports.
	 	 	12	 
	Section 2.16 Purchase of Notes Upon a Change of Control.
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 3. FORM OF NOTES
	 	 	14	 
	Section 3.1 Form of Notes
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 4. ORIGINAL ISSUE OF NOTES
	 	 	14	 
	Section 4.1 Original Issue of Notes
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 5. MISCELLANEOUS
	 	 	14	 
	Section 5.1 Ratification of Indenture
	 	 	14	 
	Section 5.2 Trustee Not Responsible for Recitals
	 	 	15	 
	Section 5.3 Governing Law
	 	 	15	 
	Section 5.4 Separability
	 	 	15	 
	Section 5.5 Counterparts Originals
	 	 	15	 
	 
	 	 	 	 
	EXHIBIT A — Form of Notes
	 	 	A-1	 

 

 

     FIFTH SUPPLEMENTAL INDENTURE, dated as of March 1, 2011 (this “Supplemental
Indenture”), between Wyndham Worldwide Corporation, a corporation duly organized and existing
under the laws of the State of Delaware, having its principal office at 22 Sylvan Way, Parsippany,
NJ 07054 (the “Company”), and U.S. Bank National Association, a national banking
association, organized and in good standing under the laws of the United States, as trustee (the
“Trustee”).

     WHEREAS, the Company executed and delivered the indenture, dated as of November 20, 2008, to
the Trustee (the “Base Indenture,” and as hereby supplemented, the “Indenture”), to
provide for the issuance of the Company’s debt Securities to be issued in one or more series;

     WHEREAS, pursuant to the terms of the Base Indenture, the Company desires to provide for the
establishment of a new series of its notes under the Base Indenture to be known as its “5.625%
Notes due 2021” (the “Notes”), the form and substance and the terms, provisions and
conditions thereof to be set forth as provided in the Base Indenture and this Supplemental
Indenture;

     WHEREAS, the Board of Directors, the Executive Committee and the Pricing Committee thereof,
pursuant to resolutions duly adopted on November 20, 2008, February 7, 2011, February 22, 2011 and
February 23, 2011, have duly authorized the issuance of the Notes, and have authorized the proper
officers of the Company to execute any and all appropriate documents necessary or appropriate to
effect each such issuance;

     WHEREAS, this Supplemental Indenture is being entered into pursuant to the provisions of
Section 14.01 of the Base Indenture;

     WHEREAS, the Company has requested that the Trustee execute and deliver this Supplemental
Indenture; and

     WHEREAS, all things necessary to make this Supplemental Indenture a valid agreement of the
Company, in accordance with its terms, and to make the Notes, when executed by the Company and
authenticated and delivered by the Trustee, the valid obligations of the Company, have been
performed, and the execution and delivery of this Supplemental Indenture has been duly authorized
in all respects;

     NOW THEREFORE, in consideration of the premises and the purchase and acceptance of the Notes
by the Holders thereof, and for the purpose of setting forth, as provided in the Base Indenture,
the forms and terms of the Notes, the Company covenants and agrees, with the Trustee, as follows:

ARTICLE 1.

DEFINITIONS

     Section 1.1 Definition of Terms. Unless the context otherwise requires:

     (a) each term defined in the Base Indenture has the same meaning when used in this
Supplemental Indenture;

 

 

     (b) the singular includes the plural and vice versa;

     (c) headings are for convenience of reference only and do not affect interpretation;

     (d) a reference to a Section or Article is to a Section or Article of this Supplemental
Indenture unless otherwise indicated; and

     (e) the following terms have the meanings given to them in this Section 1.1(e):

     (i) “Additional Amounts” shall have the meaning assigned to it in Section 2.11.

     (ii) “Attributable Debt” means, with regard to a sale and leaseback arrangement of a
Principal Property, an amount equal to the lesser of: (a) the fair market value of the
Principal Property (as determined in good faith by the Board of Directors); or (b) the
present value of the total net amount of rent payments to be made under the lease during its
remaining term (including any period for which such lease has been extended and excluding
any unexercised renewal or other extension options exercisable by the lessee, and excluding
amounts on account of maintenance and repairs, services, taxes and similar charges and
contingent rents), discounted at the rate of interest set forth or implicit in the terms of
the lease (or, if not practicable to determine such rate, the weighted average interest rate
per annum borne by the Notes then outstanding), compounded semi-annually.

     (iii) “Below Investment Grade Rating Event” means the Notes are rated below an
Investment Grade Rating by each of the Rating Agencies on any date from the earlier of (1)
the occurrence of a Change of Control or (2) public notice of the Company’s intention to
effect a Change of Control, in each case until the end of the 60-day period following the
earlier of (1) the occurrence of a Change of Control or (2) public notice of the Company’s
intention to effect a Change of Control; provided, however, that if (i) during such 60-day
period one or more Rating Agencies has publicly announced that it is considering the
possible downgrade of the Notes, and (ii) a downgrade by each of the Rating Agencies that
has made such an announcement would result in a Below Investment Grade Rating Event, then
such 60-day period shall be extended for such time as the rating of the Notes by any such
Rating Agency remains under publicly announced consideration for possible downgrade to a
rating below an Investment Grade Rating and a downgrade by such Rating Agency to a rating
below an Investment Grade Rating could cause a Below Investment Grade Rating Event.
Notwithstanding the foregoing, a rating event otherwise arising by virtue of a particular
reduction in rating will not be deemed to have occurred in respect of a particular Change of
Control (and thus will not be deemed a Below Investment Grade Rating Event for purposes of
the definition of Change of Control Triggering Event) if the Rating Agencies making the
reduction in rating to which this definition would otherwise apply do not announce or
publicly confirm or inform the Trustee in writing at the Company’s or its request that the
reduction was the result, in whole or in part, of any event or circumstance comprised of or
arising as a result of, or in respect of, the applicable Change of Control (whether or not
the applicable Change of Control has occurred at the time of the rating event).

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     (iv) “Change in Domicile” shall have the meaning assigned to it in Section
2.11.

     (v) “Change of Control” means the occurrence of any of the following: (i) the direct
or indirect sale, transfer, 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 properties or assets of the Company and its Subsidiaries taken as a whole to any
“person” (as that term is used in Section 13(d)(3) of the Exchange Act) other than the
Company or one of its Subsidiaries; (ii) the adoption of a plan relating to the liquidation
or dissolution of the Company; (iii) the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any “person” (as
defined in this paragraph) becomes the beneficial owner, directly or indirectly, of 50% or
more of the total voting power of all shares of the Company’s capital stock entitled to vote
generally in elections of directors; or (iv) the first day on which a majority of the
members of the Board of Directors are not Continuing Directors. Notwithstanding the
foregoing, a transaction will not be deemed to involve a Change of Control if (1) the
Company becomes a direct or indirect wholly-owned Subsidiary of a holding company and (2)(A)
the direct or indirect holders of the voting stock of such holding company immediately
following that transaction are substantially the same as the holders of the Company’s voting
stock immediately prior to that transaction or (B) immediately following that transaction no
Person (other than a holding company satisfying the requirements of this sentence) is the
beneficial owner, directly or indirectly, of more than 50% of the voting stock of such
holding company.

     (vi) “Change of Control Offer” shall have the meaning assigned to it in Section
2.16.

     (vii) “Change of Control Payment” shall have the meaning assigned to it in Section
2.16.

     (viii) “Change of Control Payment Date” shall have the meaning assigned to it in
Section 2.16.

     (ix) “Change of Control Triggering Event” means the occurrence of both a Change of
Control and a Below Investment Grade Rating Event.

     (x) “Consolidated Net Worth” means, as of any date of determination, all items which in
conformity with GAAP would be included under stockholders’ equity on a consolidated balance
sheet of the Company and its Subsidiaries at such date.

     (xi) “Continuing Directors” means, as of any date of determination, any member of the
Board of Directors who (i) was a member of such Board of Directors on the date of this
Supplemental Indenture; or (ii) was nominated for election or elected to such Board of
Directors with the approval of a majority of the Continuing Directors who were members of
such Board of Directors at the time of such nomination or election.

     (xii) “DTC” means The Depository Trust Company.

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     (xiii) “EDGAR” means the SEC’s Electronic Data Gathering, Analysis, and Retrieval
system or any successor thereto.

     (xiv) “Event of Default” shall have the meaning assigned to it in Section 2.12.

     (xv) “Indebtedness” of any Person means, for purposes of this Supplemental Indenture
only, without duplication, (i) any obligation of such Person for money borrowed, (ii) any
obligation of such Person evidenced by bonds, debentures, notes or other similar instruments
and (iii) any reimbursement obligation of such Person in respect of letters of credit or
other similar instruments which support financial obligations which would otherwise become
Indebtedness.

     (xvi) “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the
equivalent) by Moody’s and BBB— (or the equivalent) by S&P.

     (xvii) “Lien” means any pledge, mortgage, lien, encumbrance or other security interest.

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

     (xix) “Permitted Liens” means: (a) Liens existing on the date the Notes are issued;
(b) Liens on any property or any Indebtedness of a Person existing at the time the Person
becomes a Subsidiary (whether by acquisition, merger or consolidation) which were not
incurred in anticipation thereof; (c) Liens in favor of the Company or its Subsidiaries; (d)
Liens existing at the time of acquisition of the assets encumbered thereby which were not
incurred in anticipation of such acquisition; (e) purchase money Liens which secure
Indebtedness that does not exceed the cost of the purchased property; (f) Liens on real
property acquired after the date on which the Notes are first issued which secure
Indebtedness incurred to acquire such real property or improve such real property so long as
(i) such Indebtedness is incurred on the date of acquisition of such real property or within
180 days of the acquisition of such real property; (ii) such Liens secure Indebtedness in an
amount no greater than the purchase price or improvement price, as the case may be, of such
real property so acquired; and (iii) such Liens do not extend to or cover any property of
the Company’s or any Restricted Subsidiary other than the real property so acquired; and (g)
extensions, renewals or replacements of any Indebtedness secured by the foregoing types of
Permitted Liens, so long as the principal amount of Indebtedness secured thereby shall not
exceed the amount of Indebtedness existing at the time of such extension, renewal or
replacement.

     (xx) “Principal Property” means an asset or assets owned by the Company or any
Restricted Subsidiary having a gross book value in excess of $50,000,000.

     (xxi) “Rating Agencies” means (1) each of Moody’s and S&P; and (2) if either of Moody’s
or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available
for reasons outside of the Company’s control, a “nationally recognized statistical rating
organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, as
amended, selected by the Company (as certified by a resolution of the

4

 

Board of Directors of the Company) as a replacement agency for Moody’s or S&P, or both,
as the case may be.

     (xxii) “Relevant Taxing Jurisdiction” shall have the meaning assigned to it in
Section 2.11.

     (xxiii) “Restricted Subsidiary” means a Subsidiary of the Company (other than a
Securitization Entity) that (i) is owned, directly or indirectly, by the Company or by one
or more of the Subsidiaries of the Company, or by the Company and by one or more of the
Subsidiaries of the Company, (ii) is incorporated under the laws of the United States or a
state thereof and (iii) owns a Principal Property.

     (xxiv) “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., and its successors.

     (xxv) “Securitization Entity” means any Subsidiary or other Person that is engaged
solely in the business of effecting asset securitization transactions and related
activities.

     (xxvi) “Significant Subsidiary” shall mean any Subsidiary of the Company (other than a
Securitization Entity) that is a “significant subsidiary” of the Company within the meaning
given to such term in Article 1, Rule 1-02 of Regulation S-X.

     (xxvii) “Taxes” shall have the meaning assigned to it in Section 2.11.

ARTICLE 2.

GENERAL TERMS AND CONDITIONS OF THE NOTES

     Section 2.1 Designation and Principal Amount. There is hereby authorized and established a new series of Securities under the Base
Indenture designated as the “5.625% Notes due 2021,” which is not limited in aggregate principal
amount. The initial aggregate principal amount of the Notes to be issued under this Supplemental
Indenture shall be $250,000,000. The Notes are not Original Issue Discount Securities and are
issued at a public offering price of 99.134%. Any additional amounts of Notes to be issued shall
be set forth in a Company Order.

     Section 2.2 Maturity. The stated maturity of principal for the Notes shall be March 1, 2021.

     Section 2.3 Further Issues. The Company may from time to time, without the consent of the Holders of Notes, issue
additional Notes, but only if such additional Notes are issued as part of a “qualified reopening”
for U.S. federal income tax purposes. Any such additional Notes shall have the same ranking,
interest rate, maturity date and other terms as the Notes. Any such additional Notes, together
with the Notes herein provided for, shall constitute a single series of Securities under the
Indenture.

     Section 2.4 Form of Payment. Principal of, premium, if any, and interest on the Notes shall be payable in U.S. dollars.

5

 

     Section 2.5 Global Securities and Denomination of Notes. Upon the original issuance, the Notes shall be represented by one or more Global
Securities. The Company shall issue the Notes in minimum denominations of $2,000 and in integral
multiples of $1,000 in excess thereof and shall deposit the Global Securities with, or on behalf
of, DTC in New York, New York, and register the Global Securities in the name of Cede & Co., DTC’s
nominee.

     Section 2.6 Interest. The Notes shall bear interest (computed on the basis of a 360-day year consisting of twelve
30-day months) from March 1, 2011 at the rate of 5.625% per annum payable semiannually in arrears;
interest payable on each Interest Payment Date shall include interest accrued from March 1, 2011,
or from the most recent Interest Payment Date to which interest has been paid or duly provided for;
the Interest Payment Dates on which such interest shall be payable are March 1 and September 1,
commencing on September 1, 2011; and the record date for the interest payable on any Interest
Payment Date is the close of business on February 15 or August 15, as the case may be, next
preceding the relevant Interest Payment Date.

     Section 2.7 Redemption. The Notes are subject to redemption at the option of the Company as set forth in the form
of Note attached hereto as Exhibit A.

     Section 2.8 Limitations on Liens.

     (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, incur, assume or guarantee any Indebtedness secured by a Lien on any of its
or any of its Subsidiaries’ capital stock, properties or assets, other than Permitted Liens, unless
it has made or shall make effective provision whereby the Notes shall be secured by such Lien
equally and ratably with (or prior to) the Indebtedness of the Company or any Restricted Subsidiary
secured by such Lien for so long as such Indebtedness is secured. Any such Lien created pursuant
to this Section 2.8 shall be automatically and unconditionally released and discharged upon
the release and discharge of the Lien to which it relates.

     (b) Notwithstanding paragraph (a) of this Section 2.8, the Company and its Restricted
Subsidiaries may, without securing the Notes, directly or indirectly, incur, assume or guarantee
Indebtedness that would otherwise be subject to paragraph (a) if the sum of (i) the aggregate of
all Indebtedness secured by such Liens and (ii) any Attributable Debt related to any permitted sale
and leaseback arrangement does not at any one time exceed the greater of (i) 25% of Consolidated
Net Worth calculated as of the date of the creation or incurrence of the Lien and (ii)
$300,000,000.

     Section 2.9 Limitations on Sale and Leaseback Transactions. The Company shall not, and shall not permit any of its Restricted Subsidiaries to, enter
into any arrangement with any Person to lease a Principal Property (except for any arrangements
that exist on the date the Notes are issued or that exist at the time any Person that owns a
Principal Property becomes a Restricted Subsidiary) which has been or is to be sold by the Company
or the Restricted Subsidiary to such Person unless:

     (a) the sale and leaseback arrangement involves a lease for a term of not more than three
years;

6

 

     (b) the sale and leaseback arrangement is entered into between the Company and a Subsidiary of
the Company or between Subsidiaries of the Company;

     (c) the Company or the Restricted Subsidiary would be entitled to incur Indebtedness secured
by a Lien on the Principal Property at least equal in amount to the Attributable Debt associated
with such Principal Property without having to secure equally and ratably the Notes pursuant to
Section 2.8(a) hereof;

     (d) the proceeds of the sale and leaseback arrangement are at least equal to the fair market
value (as determined by the Board of Directors in good faith) of the Principal Property and the
Company applies within 180 days after the sale an amount equal to the greater of the net proceeds
of the sale or the Attributable Debt associated with the Principal Property to (i) the retirement
of long-term debt for borrowed money that is not subordinated to the Notes and that is not debt to
the Company or a Subsidiary of the Company, or (ii) the purchase or development of other comparable
property; or

     (e) the sale and leaseback arrangement is entered into within 180 days after the initial
acquisition of the Principal Property subject to the sale and leaseback arrangement.

     Section 2.10 Merger, Consolidation and Sale of Assets. Section 6.04(a) of the Base Indenture shall be revised in its entirety to read:

     (a) The Company shall not consolidate with any other entity or accept a merger of any other
entity into the Company or permit the Company to be merged into any other entity, or sell other
than for cash or lease all or substantially all its assets to another entity, unless (i) either the
Company shall be the continuing entity, or the successor, transferee or lessee entity (if other
than the Company) shall expressly assume, by indenture supplemental hereto, executed and delivered
by such entity prior to or simultaneously with such consolidation, merger, sale or lease, the due
and punctual payment of the principal of and interest and premium, if any, on all the Notes,
according to their tenor, and the due and punctual performance and observance of all other
obligations to the Holders of Notes and the Trustee under this Indenture or under the Notes to be
performed or observed by the Company; (ii) immediately after such consolidation, merger, sale,
lease or purchase, no Event of Default shall have occurred and be continuing; and (iii) the
successor, transferee or lessee entity (if other than the Company) is a corporation or a limited
liability company organized and validly existing under the laws of the United States or any
jurisdiction thereof, Canada, Mexico, Switzerland or any other country that is a member country of
the European Union on the date hereof.

     Section 2.11 Additional Amounts.

     (a) All payments made by the Company, including any successor thereto, on the Notes shall be
made without withholding or deduction for, or on account of, any present or future taxes, duties,
assessments or governmental charges of whatever nature (“Taxes”) unless the withholding or
deduction of such Taxes is then required by law.

     (b) If, pursuant to Section 2.10, as a result of or following a merger or
consolidation of the Company with, or a sale by the Company of all or substantially all of its
assets to, an entity that is organized under the laws of a jurisdiction outside of the United
States (a “Change in

7

 

Domicile”), any deduction or withholding is at any time required for, or on account
of, any Taxes imposed or levied by or on behalf of:

     (i) any jurisdiction (other than the United States) from or through which the Company
makes (or, as a result of the Company’s connection with such jurisdiction, is deemed to
make) a payment or delivery on the Notes, or any political subdivision or governmental
authority thereof or therein having the power to tax; or

     (ii) any other jurisdiction (other than the United States) in which the Company is
organized or otherwise considered to be a resident or doing business for tax purposes, or
any political subdivision or governmental authority thereof or therein having the power to
tax (each of clauses (i) and (ii), a “Relevant Taxing Jurisdiction”);

to be made in respect of any payment or delivery under the Notes, the Company shall pay (together
with such payment or delivery) such additional amounts (the “Additional Amounts”) as may be
necessary in order that the net amounts received in respect of such payment or delivery by each
beneficial owner of the Notes after such withholding or deduction (including any such deduction or
withholding from such Additional Amounts), shall equal the amount that would have been received in
respect of such payment or delivery in the absence of such withholding or deduction; provided,
however, that Additional Amounts shall be payable only to the extent necessary so that the net
amount received by the holder, after taking into account such withholding or deduction, equals the
amount that would have been received by the holder in the absence of a Change in Domicile;
provided, further, that no such Additional Amounts shall be payable with respect to:

     (1) any Taxes that would have been imposed absent a Change in Domicile;

     (2) any Taxes that would not have been so imposed but for the existence of any
present or former connection between the beneficial owner (or between a fiduciary,
settlor, beneficiary, member or shareholder of, or possessor of power over the
relevant beneficial owner, if the relevant beneficial owner is an estate, nominee,
trust or corporation) and the Relevant Taxing Jurisdiction (including the beneficial
owner being a citizen or resident or national of, or carrying on a business or
maintaining a permanent establishment in, or being physically present in, the
Relevant Taxing Jurisdiction) other than by the mere ownership or holding of such
Note or enforcement of rights thereunder or the receipt of payments in respect
thereof;

     (3) any Taxes that would not have been so imposed if the beneficial owner had
made a declaration of non-residence or any other claim or filing for exemption to
which it is entitled (provided that (x) such declaration of non-residence or other
claim or filing for exemption is required by the applicable law of the Relevant
Taxing Jurisdiction as a precondition to exemption from the requirement to deduct or
withhold such Taxes and (y) at least 30 days prior to the first payment date with
respect to which such declaration of non-residence or other claim or filing for
exemption is required under the applicable law of the

8

 

Relevant Taxing Jurisdiction, the relevant beneficial owner at that time has
been notified by mail to the addresses of such Holders of Notes as they appear in
the Register by the Company or any other person through whom payment may be made
that a declaration of non-residence or other claim or filing for exemption is
required to be made);

     (4) any Note presented for payment (where presentation is required) more than
30 days after the relevant payment is first made available for payment to the
beneficial owner (except to the extent that the beneficial owner would have been
entitled to Additional Amounts had the Note been presented during such 30 day
period);

     (5) any Taxes that are payable otherwise than by withholding from a payment or
delivery on the Notes;

     (6) any estate, inheritance, gift, sale, transfer, personal property or similar
tax, assessment or other governmental charge;

     (7) any withholding or deduction imposed on a payment to an individual that is
required to be made pursuant to European Council Directive 2003/48/ EC on the
taxation of savings or any other directive implementing the conclusions of the
ECOFIN Council meeting of 26-27 November, 2000 or any law implementing or complying
with, or introduced in order to conform to, such directive;

     (8) any Taxes that could have been avoided by the presentation (where
presentation is required) of the relevant Note to another Paying Agent in a member
state of the European Union; and

     (9) where, had the beneficial owner of the Note been the holder of the Note, it
would not have been entitled to payment of Additional Amounts by reason of any of
clauses (1) to (8) inclusive of this Section 2.11(b).

     (c) The Company shall (i) make any required withholding or deduction and (ii) remit the full
amount deducted or withheld to the Relevant Taxing Jurisdiction in accordance with applicable law.
The Company shall use all reasonable efforts to obtain certified copies of tax receipts evidencing
the payment of any Taxes so deducted or withheld from each Relevant Taxing Jurisdiction imposing
such Taxes and shall provide such certified copies to each holder. The Company shall attach to
each certified copy a certificate stating (x) that the amount of withholding Taxes evidenced by the
certified copy was paid in connection with payments in respect of the principal amount of Notes
then outstanding and (y) the amount of such withholding Taxes paid per $1,000 principal amount of
the Notes. Copies of such documentation shall be available for inspection during ordinary business
hours at the office of the Trustee by the Holders of Notes upon request and shall be made available
at the offices of the Paying Agent.

     (d) At least 30 days prior to each date on which any payment under or with respect to the
Notes is due and payable (unless such obligation to pay Additional Amounts arises shortly

9

 

before or after the 30th day prior to such date, in which case it shall be promptly
thereafter), if the Company shall be obligated to pay Additional Amounts with respect to such
payment, the Company shall deliver to the Trustee an Officer’s Certificate stating the fact that
such Additional Amounts shall be payable, the amounts so payable and shall set forth such other
information necessary to enable the Trustee to pay such Additional Amounts to Holders of Notes on
the payment date. Each such Officer’s Certificate may be conclusively relied upon by the Trustee
until receipt of a further Officer’s Certificate addressing such matters.

     (e) References in this Indenture or the Notes to the payment of principal, purchase prices in
connection with a purchase of Notes, interest, or any other amount payable on or with respect to
the Notes shall be deemed to include payment of Additional Amounts pursuant to this Section
2.11 to the extent that, in such context, Additional Amounts are, were or would be payable in
respect thereof.

     (f) The obligations provided for in this Section 2.11 shall survive any termination,
defeasance or discharge of the Indenture and shall apply mutatis mutandis to any jurisdiction in
which any successor to the Company is organized or any political subdivision or taxing authority or
agency thereof or therein.

     Section 2.12 Events of Default.

     (a) The term “Event of Default” as used in this Indenture with respect to the Notes only,
shall include the following described events in addition to those set forth in Section 7.01
of the Base Indenture:

     (i) any failure by the Company to comply with its obligations under Section
2.10 hereof or Section 6.04 of the Base Indenture;

     (ii) the entry by a court having jurisdiction in the premises of a decree or order for
relief in respect of a Significant Subsidiary in an involuntary case under the federal
bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a
receiver, liquidator, assignee, custodian, trustee or sequestrator (or similar official) of
a Significant Subsidiary or of substantially all the property of a Significant Subsidiary or
ordering the winding-up or liquidation of its affairs and such decree or order shall remain
unstayed and in effect for a period of 90 consecutive days;

     (iii) the commencement by a Significant Subsidiary of a voluntary case under the
federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or
state bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent
by a Significant Subsidiary to the entry of an order for relief in an involuntary case under
any such law, or the consent by any Significant Subsidiary to the appointment of or taking
possession by a receiver, liquidator, assignee, trustee, custodian or sequestrator (or
similar official) of a Significant Subsidiary or of substantially all the property of a
Significant Subsidiary or the making by it of an assignment for the benefit of creditors or
the admission by it in writing of its inability to pay its debts generally as

10

 

they become due, or the taking of corporate action by a Significant Subsidiary in
furtherance of any action; and

     (iv) any final judgment or decree for the payment of money which, when taken together
with all other final judgments or decrees for the payment of money, causes the aggregate
amount of such judgments or decrees entered against the Company or any Significant
Subsidiary to exceed $50 million (net of any amounts with respect to which a reputable and
creditworthy insurance company has acknowledged liability), remains outstanding for a period
of 60 consecutive days after the later of (a) the date on which the right to appeal thereof
has expired if no such appeal has commenced, or (b) the date on which all rights to appeal
have been extinguished.

     (b) The “Event of Default” set forth in Section 7.01(a) of the Base Indenture with
respect to the Notes only shall be replaced with the following:

     (i) the failure of the Company to pay any installment of interest, including any
additional interest and any Additional Amounts, on any Note when and as the same shall
become payable, which failure shall have continued unremedied for a period of 30 days;

     (c) The “Event of Default” set forth in Section 7.01(b) of the Base Indenture with
respect to the Notes only shall be replaced with the following:

     (i) the failure of the Company to pay the principal of any Note, including any
Additional Amount, when and as the same shall become payable, whether at Maturity, by call
for redemption (otherwise than pursuant to a sinking fund), upon required repurchase in
connection with a Fundamental Change, or upon acceleration as authorized by the Indenture;

     (d) The “Event of Default” set forth in Section 7.01(g) of the Base Indenture with
respect to the Notes only shall be replaced with the following:

     (i) Indebtedness of the Company or any of its Restricted Subsidiaries of at least
$50,000,000 in aggregate principal amount is accelerated which acceleration has not been
rescinded or annulled after 30 days notice thereof.

     (e) This Section 2.12 shall incorporate the provisions of Section 2.15(c).
The third and second from last paragraphs of Section 7.01 of the Base Indenture shall be
replaced by Section 2.15(c) with respect to the Notes only.

     Section 2.13 Appointment of Agents. The Trustee shall initially be the Registrar and Paying Agent for the Notes.

     Section 2.14 Defeasance upon Deposit of Moneys or U.S. Government Obligations. At the Company’s option, either (a) the Company shall be deemed to have been Discharged
from its obligations with respect to the Notes on the first day after the applicable conditions set
forth in Section 12.03 of the Base Indenture have been satisfied or (b) the Company shall
cease to be under any obligation to comply with any term, provision or condition set forth in
Section 6.04 or

11

 

Section 10.02 of the Base Indenture and Sections 2.9, 2.10 and
2.11 of this Supplemental Indenture with respect to the Notes at any time after the
applicable conditions set forth in Section 12.03 of the Base Indenture have been satisfied.

     Section 2.15 SEC Reports.

     (a) Any documents, reports or other information that the Company is required to file with the
SEC pursuant to Section 13 or 15(d) of the Exchange Act shall be filed by the Company with the
Trustee within 15 days after the same are required to be filed with the SEC (after giving effect to
any grace period provided by Rule 12b-25 under the Exchange Act). The Company shall otherwise
comply with the requirements of Section 314(a) of the Trust Indenture Act. Documents, reports or
other information filed by the Company with the SEC via EDGAR shall be deemed to be filed with the
Trustee as of the time such documents, reports or other information are filed via EDGAR. The
Trustee does not have the duty to review such information, documents or reports, is not considered
to have notice of the content of such information, documents or reports or any defaults or Events
of Default discernable therefrom and does not have a duty to verify the accuracy of such
information, documents or reports.

     (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 Officer’s Certificates).

     (c) Notwithstanding anything to the contrary in Section 2.12, to the extent that the
Company elects, pursuant to Section 2.15(e), the sole remedy available to the Holders of
Notes or to the Trustee on their behalf for an Event of Default relating to (i) the Company’s
failure to file with the Trustee pursuant to Section 314(a)(1) of the Trust Indenture Act any
documents or reports that the Company is required to file with the SEC pursuant to Section 13 or
15(d) of the Exchange Act, or (ii) the Company’s failure to comply with its obligations in
Section 2.15(a), shall, after the occurrence of such an Event of Default, consist
exclusively of the right to receive additional interest on the Notes at a rate equal to:

     (i) 0.25% per annum of the principal amount of the Notes outstanding for each day
during the 60-day period beginning on, and including, the occurrence of such an Event of
Default during which such Event of Default is continuing; and

     (ii) 0.50% per annum of the principal amount of the Notes outstanding for each day
during the 120-day period beginning on, and including, the 61st day following, and
including, the occurrence of such an Event of Default during which such Event of Default is
continuing;

provided, however, that in no event shall such additional interest accrue at an annual rate in
excess of 0.50% during the six-month period beginning on, and including, the date which is six
months after the last date of original issuance of the Notes for any failure to timely file any
document or report that the Company is required to file with the SEC pursuant to Section 13 or

12

 

15(d) of the Exchange Act (after giving effect to all applicable grace periods thereunder and other
than reports on Form 8-K).

     (d) If the Company elects, additional interest shall be payable in the same manner and on the
same dates as the stated interest payable on the Notes. On the 181st day after such Event of
Default (if the Event of Default relating to the reporting obligations is not cured or waived prior
to such 181st day), the Notes shall be subject to acceleration as provided in Section 7.02
of the Base Indenture. This Section 2.15(d) shall not affect the rights of Holders of
Notes in the event of the occurrence of any Event of Default unrelated to this Section
2.15. In the event that the Company does not elect to pay the additional interest following an
Event of Default in accordance with this Section 2.15(d), the Notes shall be subject to
acceleration as provided in Section 7.02 of the Base Indenture.

     (e) In order to elect to pay additional interest as the sole remedy during the first 180 days
after the occurrence of an Event of Default relating to the Company’s failure to comply with the
reporting obligations, the Company must notify, in writing, all Holders of Notes and the Trustee
and Paying Agent of such election prior to the beginning of such 180-day period. Upon the
Company’s failure to timely give such notice, the Notes shall be immediately subject to
acceleration as provided in Section 7.02 of the Base Indenture.

     Section 2.16 Purchase of Notes Upon a Change of Control.

     (a) Upon the occurrence of a Change of Control Triggering Event, unless the Company has
exercised its right to redeem the Notes as provided in Article Four of the Base Indenture, each
Holder shall have the right to require the Company to repurchase all or any part (equal to $2,000
or an integral multiple of $1,000 in excess thereof) of each Holder’s Notes pursuant to the offer
described in this Section 2.16 (the “Change of Control Offer”) on the terms set
forth in the Base Indenture at a purchase price in cash equal to 101% of the aggregate principal
amount thereof plus accrued and unpaid interest, if any, to but not including the date of purchase
(the “Change of Control Payment”).

     (b) Within 30 days following any Change of Control Triggering Event, or, at the Company’s
option, prior to the date of consummation of any Change of Control, but after the public
announcement of the pending Change of Control, the Company shall mail a notice to each Holder, with
a copy to the Trustee, describing the transaction or transactions that constitute the Change of
Control and offering to repurchase the Notes on the date specified in the notice, which date shall
be no earlier than 30 days and no later than 60 days from the date such notice is mailed (the
“Change of Control Payment Date”), pursuant to the procedures required by the Base
Indenture and described in such notice. The repurchase obligation with respect to any notice
mailed prior to the consummation of the Change of Control, shall be conditioned on the Change of
Control Triggering Event occurring on or prior to the payment date specified in the notice.

     (c) The Company shall 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 regulations are
applicable in connection with the repurchase of the Notes as a result of a Change of Control
Triggering Event. To the extent that the provisions of any securities laws or regulations conflict
with this Section 2.16, the Company shall comply with the applicable

13

 

securities laws and regulations and shall not be deemed to have breached its obligations under
this Section 2.16 by virtue of such conflicts.

     (d) On the Change of Control Payment Date, the Company shall, 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 thereof properly tendered and (iii) deliver or cause to be
delivered to the Trustee the Notes properly accepted together with an Officer’s Certificate stating
the aggregate principal amount of Notes or portions thereof being purchased by the Company and the
amount to be paid by the Paying Agent. The Paying Agent shall promptly mail to each Holder of
Notes properly tendered the Change of Control Payment for such Notes, and the Trustee shall
promptly authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note
equal in principal amount to any unpurchased portion of the Notes surrendered by such Holder, if
any; in denominations as set forth herein. The Company shall publicly announce the results of the
Change of Control Offer on or as soon as practicable after the Change of Control Payment Date.

     (e) The Company shall not be required to make a Change of Control Offer upon a Change of
Control Triggering Event if another Person makes the Change of Control Offer in the manner, at the
times and otherwise in compliance with the requirements set forth in this Section 2.16
otherwise applicable to a Change of Control Offer made by the Company and such other Person
purchases all Notes properly tendered and not withdrawn pursuant to such Change of Control Offer.

ARTICLE 3.

FORM OF NOTES

     Section 3.1 Form of Notes. The Notes and the Trustee’s Certificate of Authentication to be endorsed thereon are to be
substantially in the form set forth in Exhibit A hereto.

ARTICLE 4.

ORIGINAL ISSUE OF NOTES

     Section 4.1 Original Issue of Notes. The Notes may, upon execution of this Supplemental Indenture, be executed by the Company
and delivered to the Trustee for authentication, and the Trustee shall, upon receipt of a Company
Order, authenticate and deliver such Notes as in such Company Order provided.

ARTICLE 5.

MISCELLANEOUS

     Section 5.1 Ratification of Indenture. The Base Indenture, as supplemented by this Supplemental Indenture, is in all respects
ratified and confirmed, and this Supplemental Indenture shall be deemed part of the Base Indenture
in the manner and to the extent herein and

14

 

therein provided; provided that the provisions of this Supplemental Indenture apply solely
with respect to the Notes.

     Section 5.2 Trustee Not Responsible for Recitals. The recitals herein contained are made by the Company and not by the Trustee, and the
Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation
as to the validity or sufficiency of this Supplemental Indenture.

     Section 5.3 Governing Law. This Supplemental Indenture and each Note shall be deemed to be contracts made under the
law of the State of New York, and for all purposes shall be governed by and construed in accordance
with the law of said State.

     Section 5.4 Separability. In case any provision in this Supplemental Indenture or in the Notes shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

     Section 5.5 Counterparts Originals. This Supplemental Indenture may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all such counterparts shall together constitute but
one and the same instrument.

15

 

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

	 	 	 	 	 
	 	WYNDHAM WORLDWIDE CORPORATION

 	 
	 	By:  	/s/
Stephen P. Holmes	 
	 	 	Name:  	Stephen P. Holmes 	 
	 	 	Title:  	Chairman of the Board of Directors
and Chief Executive Officer 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 	 
	 	By:  	/s/
William G. Keenan	 
	 	 	Name:  	William G. Keenan 	 
	 	 	Title:  	Vice President 	 
	 

 

 

EXHIBIT A

17

 

[FACE OF NOTE]

          THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY
THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS NOTE FOR ALL PURPOSES.

          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 IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS 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 SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, 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.

 

 

CUSIP No. [                       ]

WYNDHAM WORLDWIDE CORPORATION

5.625% NOTES DUE 2021

	 	 	 
	No. [   ]

	 	$[                        ] 
As revised by the
 Schedule of 
Increases or
 Decreases in

Global Security 
attached hereto

          Interest. Wyndham Worldwide Corporation, a corporation duly organized and existing under the
laws of the State of Delaware (herein called the “Company,” which term includes any successor
Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to
Cede & Co. or registered assigns, the principal sum of [                       ], as revised by the Schedule of Increases or Decreases in Global Security attached
hereto, on March 1, 2021 and to pay interest thereon from March 1, 2011 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for, semi-annually in
arrears on March 1 and September 1 in each year, commencing September 1, 2011 at the rate of 5.625%
per annum, until the principal hereof is paid or made available for payment.

          Method of Payment. The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date shall, as provided in such Indenture, be paid to the Person in whose name
this Note (or one or more Predecessor Securities) is registered at the close of business on the
Record Date for such interest, which shall be February 15 or August 15, as the case may be, next
preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided
for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be
paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at
the close of business on a Special Record Date for the payment of such Defaulted Interest to be
fixed by the Trustee, notice thereof having been given to Holders of Notes not less than 10 days
prior to such Special Record Date, all as more fully provided in said Indenture. Payment of the
principal of (and premium, if any) and any such interest on this Note shall be made at the
Corporate Trust Office in U.S. Dollars.

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

          Authentication. Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

1

 

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

Dated:

	 	 	 	 	 
	 	WYNDHAM WORLDWIDE CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

Dated:

U.S. BANK NATIONAL ASSOCIATION

as Trustee, certifies

that this is one of the

Securities of the series

referred to in the Indenture.

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

Signature Page to Global Note

 

 

[REVERSE OF NOTE]

          Indenture. This Note is one of a duly authorized issue of securities of the Company (herein
called the “Notes”) issued and to be issued under an Indenture, dated as of November 20, 2008 (the
“Base Indenture”), as supplemented by a Fifth Supplemental Indenture dated March 1, 2011 (as so
supplemented, herein called the “Indenture”), between the Company and U.S. Bank National
Association, as Trustee (herein called the “Trustee,” which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto reference is
hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Notes and of the terms upon which the
Notes are, and are to be, authenticated and delivered. This Note is one of the series designated
on the face hereof, initially limited in aggregate principal amount
to $[                    ]. To the extent
the terms of this Note conflict with the terms of the Indenture, the terms of the Indenture shall
govern.

          Optional Redemption. The Notes are subject to redemption at the Company’s option, at any time
and from time to time, in whole or in part, at a redemption price equal to the greater of (i) 100%
of the principal amount to be redeemed plus accrued and unpaid interest thereon to, but excluding,
the Redemption Date, and (ii) the sum, as determined by an Independent Investment Banker, of the
present values of the remaining scheduled payments of principal and interest on the Securities to
be redeemed (exclusive of interest accrued to the Redemption Date) discounted to the Redemption
Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the
applicable Treasury Rate plus 35 basis points plus accrued and unpaid interest on the principal
amount being redeemed to the Redemption Date (exclusive of interest accrued to the Redemption
Date).

          For purposes of determining the optional redemption price, the following definitions are
applicable:

          “Treasury Rate” means, with respect to any Redemption Date, (i) the yield, under the heading
which represents the average for the immediately preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded United States Treasury securities adjusted to constant maturity under the
caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury
Issue (if no maturity is within three months before or after the Remaining Life, yields for the two
published maturities most closely corresponding to the Comparable Treasury Issue shall be
determined and the Treasury Rate shall be interpolated or extrapolated from such yields on a
straight line basis, rounding to the nearest month), (ii) if the period from the Redemption Date to
the maturity date of the Securities to be redeemed is less than one year, the weekly average yield
on actually traded United States Treasury securities adjusted to a constant maturity of one year
shall be used, or (iii) if such release (or any successor release) is not published during the week
preceding the calculation date or does

R-1

 

not contain such yields, the rate per annum equal to the semiannual equivalent yield to
maturity of the Comparable Treasury Issue, calculated using 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 shall be calculated on the third Business Day preceding the Redemption Date.

          “Comparable Treasury Issue” means the U.S. Treasury security selected by an Independent
Investment Banker as having a maturity comparable to the remaining term (“Remaining Life”) of the
Securities to be redeemed that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining terms of the Securities.

          “Comparable Treasury Price” means, with respect to any Redemption Date:

          (a) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after
excluding the highest and lowest Reference Treasury Dealer Quotations, or

          (b) if the Independent Investment Banker obtains fewer than four such Reference Treasury
Dealer Quotations, the average of all Reference Treasury Dealer Quotations obtained by the
Independent Investment Banker or, if the Independent Investment Banker is able to obtain only one
Reference Treasury Dealer Quotation, such Reference Treasure Dealer Quotation.

          “Independent Investment Banker” means an independent investment banking institution of
national standing appointed by the Company, which may be one of the Reference Treasury Dealers.

          “Reference Treasury Dealer” means any primary U.S. government securities dealer in New York
City (a “Primary Treasuries Dealer”) that the Company selects. The Company has selected Credit
Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith
Incorporated, and their respective successors, as Primary Treasury Dealers.

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

R-2

 

          Notice of any redemption shall be mailed at least 30 days but not more than 60 days before the
Redemption Date to each registered Holder of the Securities to be
redeemed. If money sufficient to pay the redemption price of all of the Securities (or
portions thereof) to be redeemed on the Redemption Date is deposited with the Trustee or Paying
Agent on or before the Redemption Date, and unless the Company defaults in payment of the
redemption price, on and after the Redemption Date, interest shall cease to accrue on the
Securities or portions of the Securities called for redemption. If fewer than all of the
Securities are to be redeemed, and such Securities are at the time represented by a Global
Security, the Depositary shall select by lot the particular interests to be redeemed. If the
Company elects to redeem fewer than all of the Securities, and any of such Securities are not
represented by a Global Security, then the Trustee shall select the particular Securities to be
redeemed in a manner it deems appropriate and fair (and the Depositary shall select by lot the
particular interests in any Global Security to be redeemed).

          The Company may at any time, and from time to time, purchase the Securities at any price or
prices in the open market or otherwise.

          Defaults and Remedies. If an Event of Default with respect to Notes shall occur and be
continuing, the principal of the Notes may be declared due and payable in the manner and with the
effect provided in the Indenture.

          Amendment, Modification and Waiver. The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Notes at any time by the Company and the Trustee with the
consent of the Holders of a majority in aggregate principal amount of the Notes at the time
Outstanding. The Indenture also contains provisions permitting the Holders of a majority in
aggregate principal amount of the Notes at the time Outstanding, on behalf of the Holders of all
Notes, to waive compliance by the Company with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this Note.

          Restrictive Covenants. The Indenture does not limit the incurrence of additional debt by the
Company or any of its Subsidiaries; however, it does limit the creation of certain Liens and the
entry into sale and leaseback transactions by the Company or any of its Restricted Subsidiaries.
The limitations are subject to a number of important qualifications and exceptions. Once a year,
the Company must report to the Trustee on its compliance with these limitations.

          Denominations, Transfer and Exchange. The Notes are issuable only in registered form without
coupons in minimum denominations of $2,000 and in integral multiples of $1,000 in excess thereof.
As provided in the Indenture and subject to certain limitations therein set forth, Notes are
exchangeable for a like aggregate principal amount

R-3

 

of Notes of any different authorized
denomination or denominations, as requested by the Holder surrendering the same.

          As provided in the Indenture and subject to certain limitations therein set forth, including
Section 3.06 of the Base Indenture, the transfer of this Note is registerable in the
Register, upon surrender of this Note for registration of transfer at the Registrar accompanied by
a written request for transfer in form satisfactory to the Company and the Registrar duly executed
by the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new
Notes of any different authorized denomination or denominations and for the same aggregate
principal amount, shall be issued to the designated transferee or transferees.

          No service charge shall be made for any such registration of transfer or exchange, but the
Company or the Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

          Persons Deemed Owners. Prior to due presentment of this Note for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose
name this Note is registered as the owner hereof for the purpose of receiving payment of principal
of and premium, if any, and (subject to Section 3.08 of the Base Indenture) interest, if any, on
such Note and for all other purposes whatsoever, whether or not this Note be overdue, and neither
the Company, the Trustee nor any agent shall of the Company or the Trustee shall be affected by
notice to the contrary.

          Defined Terms. All terms used in this Note and not defined herein shall have the meanings
assigned to them in the Indenture.

R-4

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

          The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 

	Date of 

Exchange
	 	Amount of increase in

Principal Amount of

this Global Security
	 	Amount of decrease

in Principal Amount

of this Global

Security
	 	Principal Amount of

this Global Security

following each

decrease or increase
	 	Signature of

authorized signatory

of TrusteeExhibit 10.31

Exhibit 10.31

February 28, 2011

Alec Covington

2900 Thomas Avenue South, Unit #2208

Minneapolis, MN 55416

Dear Mr. Covington:

By letter to you dated February 26, 2008 (the “February 26 Letter”), the Company set forth the
benefits which the Company agreed to provide you in the event your employment with the Company is
terminated in connection with a Change in Control. The Board has reviewed your February 26 Letter
and desires to amend certain provisions to comply with applicable requirements of Section 409A of
the Internal Revenue Code (“Section 409A”). This letter restates and supersedes the February 26
Letter.

You are presently the President and Chief Executive Officer of Nash Finch Company, a Delaware
corporation. The Company considers the establishment and maintenance of a sound and vital
management to be essential to protecting and enhancing the best interests of the Company and its
stockholders. In this connection, the Company recognizes that, as is the case with many publicly
held corporations, the possibility of a Change in Control may arise and that such possibility, and
the uncertainty and questions which it may raise among management, may result in the departure or
distraction of management personnel to the detriment of the Company and its stockholders.

Accordingly, the Board has determined that appropriate steps should be taken to minimize the risk
that Company management will depart prior to a Change in Control, thereby leaving the Company
without adequate management personnel during such a critical period, and that appropriate steps
also be taken to reinforce and encourage the continued attention and dedication of members of the
Company’s management to their assigned duties without distraction in circumstances arising from the
possibility of a Change in Control. In particular, the Board believes it important, should Nash
Finch Company or its stockholders receive a proposal of transfer of control, that you be able to
continue your management responsibilities and assess and advise the Board whether such proposal
would be in the best interests of Nash Finch Company and its stockholders and to take other action
regarding such proposal as the Board might determine to be appropriate, without being influenced by
the uncertainties of your own personal situation.

The Board recognizes that continuance of your position with the Company involves a substantial
commitment to the Company in terms of your personal life and professional career and the
possibility of foregoing present and future career opportunities, for which the Company receives
substantial benefits. Therefore, to induce you to remain in the employ of the Company, this letter
agreement, which has been approved by the Board, sets forth the benefits which the Company agrees
will be provided to you in the event your employment with the Company is terminated in connection
with a Change in Control under the circumstances described below.

     1. Definitions. The following terms will have the meaning set forth below unless the
context clearly requires otherwise. Terms defined elsewhere in this Agreement will have the same
meaning throughout this Agreement.

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     (a) “Agreement” means this letter agreement as amended, extended or renewed from time
to time in accordance with its terms.

     (b) “Board” means the board of directors of the Parent Corporation duly qualified and
acting at the time in question.

     (c) “Cause” means: (i) the willful and continued failure by you to substantially
perform your duties to the Company (other than any such failure resulting from your Disability or
incapacity due to bodily injury or physical or mental illness) after a demand for substantial
performance is delivered to you by the Company which specifically identifies the manner in which
you have not substantially performed your duties; or (ii) your conviction (including a plea of nolo
contendere) of a felony or gross misdemeanor under federal or state law that the Board determines
is injurious to reputation or the business of the Company; (iii) your commission of any act
involving dishonesty, fraud, gross negligence or other willful misconduct in the performance of
your duties of the Company or (iv) your breach of any confidentiality, non-compete or
non-solicitation covenants you may have with the Company. For purposes of this definition, no act,
or failure to act, on your part will be considered “willful” unless done, or omitted to be done, by
you in bad faith and without reasonable belief that your action or omission was in, or not opposed
to, the best interests of the Company. Any act, or failure to act, based upon authority given
pursuant to a resolution duly adopted by the Board (or a committee hereof) or based upon the advice
of counsel for the Company will be conclusively presumed to be done, or omitted to be done, by you
in good faith and in the best interests of the Company. It is also expressly understood that your
attention to matters not directly related to the business of the Company will not provide a basis
for termination for Cause so long as the Board does not expressly disapprove in writing of your
engagement on such activities either before or within a reasonable period of time after the Board
knew or could reasonably have known that you engaged in those activities. Notwithstanding the
foregoing, you will not be deemed to have been terminated for Cause unless and until there has been
delivered to you a copy of a resolution duly adopted by the Board (after reasonable notice to you
and an opportunity for you, together with your counsel, to be heard before the Board), finding that
in the good faith opinion of the Board you were guilty of the conduct set forth above and
specifying the particulars thereof in detail.

     (d) “Change in Control” means:

     (i) Any one person or more than one person acting as a group acquires ownership of
stock of the Company that, together with the stock held by such person or group,
constitutes more than 50 percent (50%) of the total fair market value or total voting power
of the stock of the Company. However, if any one person or more than one person acting as
a group, is considered to own more than 50 percent (50%) of the total fair market value or
total voting power of the stock of the Company, the acquisition of additional stock by the
same person or persons is not considered to cause a Change in Control;

     (ii) Any one person, or more than one person acting as a group acquires (or has
acquired during the twelve (12) month period ending on the date of the most recent
acquisition by such person or persons) ownership of stock of the Company possessing thirty
percent (30%) or more of the total voting power of the stock of the Company;

     (iii) Any one person, or more than one person acting as a group acquires (or has
acquired during the twelve (12) month period ending on the date of the most recent
acquisition by such person or persons) all or substantially all of the assets of the
Company immediately prior to such acquisition or acquisitions; or

     (iv) A majority of the members of the Board is replaced during any twelve (12) month
period by directors whose appointment or election is not endorsed by a majority of the
members of the Board prior to the date of the appointment or election;

provided, that the transaction or event described in subsection (i), (ii), (iii) or (iv)
also constitutes a “change in control event,” as defined in Treasury Regulation
§1.409A-3(i)(5).

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     (e) “Code” means the Internal Revenue Code of 1986, as amended.

     (f) “Company” means the Parent Corporation, any Subsidiary and any Successor.

     (g) “Confidential Information” means information which is proprietary to the Company
or proprietary to others and entrusted to the Company, whether or not trade secrets. It includes
information relating to business plans and to business as conducted or anticipated to be conducted,
and to past or current or
anticipated products or services. It also includes, without limitation, information
concerning research, development, purchasing, accounting, marketing and selling. All information
which you have a reasonable basis to consider confidential is Confidential Information, whether or
not originated by you and without regard to the manner in which you obtain access to that and any
other proprietary information.

     (h) “Date of Termination” following a Change in Control (or prior to a Change in
Control if your termination was either a condition of the Change in Control or was at the request
or insistence of any Person (other than the Company) related to the Change in Control) means: (i)
if your employment is to be terminated for Disability, thirty (30) calendar days after Notice of
Termination is given (provided that you have not returned to the performance of your duties on a
full-time basis during such thirty (30)-calendar-day period); (ii) if your employment is to be
terminated by the Company for Cause or by you for Good Reason, the date specified in the Notice of
Termination; (iii) if your employment is to be terminated by the Company for any reason other than
Cause, Disability, death or Retirement, the date specified in the Notice of Termination, which in
no event may be a date earlier than ninety (90) calendar days after the date on which a Notice of
Termination is given, unless an earlier date has been expressly agreed to by you in writing either
in advance of, or after, receiving such Notice of Termination; or (iv) if your employment is
terminated by reason of death or Retirement, the date of death or Retirement, respectively;
provided that in all events the applicable “Date of Termination” shall be the date of your
“separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h). In the
case of termination by the Company of your employment for Cause, if you have not previously
expressly agreed in writing to the termination, then within thirty (30) calendar days after receipt
by you of the Notice of Termination with respect thereto, you may notify the Company that a dispute
exists concerning the termination, in which event the Date of Termination will be the date set
either by mutual written agreement of the parties or by the judge or arbitrators in a proceeding as
provided in Section 13 of this Agreement. During the pendency of any such dispute, the Company
will continue to pay you your full compensation and benefits in effect just prior to the time the
Notice of Termination is given and until the dispute is resolved in accordance with Section 13 of
this Agreement.

     (i) “Disability” means a disability as defined in the Company’s long-term disability
plan as in effect immediately prior to the Change in Control or, in the absence of such a plan,
means permanent and total disability as defined in section 22(e)(3) of the Code.

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

     (k) “Good Reason” means:

     (i) a material adverse change in your status or position(s) as an executive of the
Company as in effect immediately prior to the Change in Control, including, without
limitation, any adverse change in your status or position(s) as a result of a material
diminution in your duties or responsibilities (other than, if applicable, any such change
directly attributable to the fact that the Company is no longer publicly owned) or the
assignment to you of any duties or responsibilities which are inconsistent with such status
or position(s), or any removal of you from or any failure to reappoint or reelect you to
such position(s) (except in connection with the termination of your employment for Cause,
Disability or Retirement or as a result of your death or by you other than for Good
Reason);

3

 

     (ii) a reduction by the Company in your rate of total compensation (including, without
limitation, salary and bonus potential) (or an adverse change in the form or timing of the
payment thereof) as in effect immediately prior to the Change in Control;

     (iii) the failure by the Company to continue in effect any Plan in which you (and/or
your family) are participating at any time during the ninety (90)-calendar-day period
immediately preceding the Change in Control (or Plans providing you (and/or your family)
with at least substantially similar benefits) other than as a result of the normal
expiration of any such Plan in accordance with its terms as in effect immediately prior to
the ninety (90)-calendar-day period immediately preceding the time of the Change in
Control, or the taking of any action, or the failure to act, by the Company which would
adversely affect you (and/or your family’s) continued participation in any of such Plans on
at least as favorable a basis to you (and/or your family) as is the case on the date of the
Change in Control or
which would materially reduce your (and/or your family’s) benefits in the future under
any of such Plans or deprive you (and/or your family) of any material benefit enjoyed by
you (and/or your family) at the time of the Change in Control;

     (iv) the Company’s requiring you to be based more than fifty (50) miles from where
your office is located immediately prior to the Change in Control, except for required
travel on the Company’s business, and then only to the extent substantially consistent with
the business travel obligations which you undertook on behalf of the Company during the
ninety (90)-calendar-day period immediately preceding the Change in Control (without regard
to travel related or in anticipation of the Change in Control);

     (v) the failure by the Company to obtain from any Successor the assent to this
Agreement contemplated by Section 6 of this Agreement.

     (vi) any purported termination by the Company of your employment which is not properly
effected pursuant to a Notice of Termination and pursuant to any other requirements of this
Agreement, and for purposes of this Agreement, no such purported termination will be
effective; or

     (vii) any refusal by the Company to continue to allow you to attend to matters or
engage in activities not directly related to the business of the Company which, at any time
prior to the Change in Control, you were not expressly prohibited in writing by the Board
from attending to or engaging in.

Notwithstanding anything in the foregoing to the contrary, your termination of employment with the
Company for any reason other than death, Disability or Retirement within six (6) calendar months
following a Change in Control will be conclusively deemed to be for Good Reason.

     (l) “Highest Monthly Compensation” means one-twelfth (1/12) of the highest amount of
your compensation for any twelve (12) consecutive calendar-month period during the thirty-six (36)
consecutive calendar-month period prior to the month that includes the Date of Termination. For
purposes of this definition, “compensation” means your base pay plus short term bonus target.

     (m) “Notice of Termination” means a written notice which indicates the specific
termination provision in this Agreement pursuant to which the notice is given. Any purported
termination by the Company or by you following a Change in Control (or prior to a Change in Control
if your termination was either a condition of the Change in Control or was at the request or
insistence of any Person (other than the Company) related to the Change in Control) must be
communicated by written Notice of Termination.

     (n) “Parent Corporation” means Nash Finch Company and any Successor.

     (o) “Person” means and includes any individual, corporation, partnership, group,
association or other “person”, as such term is used in section 14(d) of the Exchange Act, other
than the Parent Corporation, a wholly-owned subsidiary of the Parent Corporation or any employee
benefit plan(s) sponsored by the Parent Corporation or a wholly-owned subsidiary of the Parent
Corporation.

4

 

     (p) “Plan” means any compensation plan (such as a stock option, restricted stock plan
or other equity-based plan), or any employee benefit plan (such as a thrift, pension, profit
sharing, medical, dental, disability, accident, life insurance, relocation, salary continuation,
expense reimbursements, vacation, fringe benefits, office and support staff plan or policy) or any
other plan, program, policy or agreement of the Company intended to benefit you (and/or your
family) (including, without limitation, the Company’s 2000 Stock Incentive Plan, Profit Sharing
Plan, Income Deferral Plan, Deferred Compensation Plan and Supplemental Executive Retirement Plan).

     (q) “Retirement” means the day on which you attain the age of sixty-five (65).

     (r) “Subsidiary” means any corporation at least a majority of whose securities having
ordinary voting power for the election of directors is at the time owned by the Company and/or one
(1) or more Subsidiaries.

     (s) “Successor” means any Person that succeeds to, or has the practical ability to
control (either immediately or with the passage of time), the Parent Corporation’s business
directly, by merger, consolidation or other form of business combination, or indirectly, by
purchase of the Parent Corporation’s voting securities, all or substantially all of its assets or
otherwise.

     2. Term of Agreement. This Agreement is effective immediately and will continue in
effect until December 31, 2008; provided, however, that commencing on January 1, 2009 and each
January 1 thereafter, the term of this Agreement will automatically be extended for one (1)
additional year beyond the expiration date otherwise then in effect, unless at least ninety (90)
calendar days prior to any such January 1, the Company or you has been given notice that this
Agreement will not be extended; and, provided, further, that this Agreement will continue in effect
beyond the termination date then in effect for a period of twenty-four (24) calendar months
following a Change in Control if a Change in Control has occurred during such term.

     3. Benefits upon a Change in Control Termination. If your employment by the Company
is terminated for any reason other than death, Cause, Disability or Retirement, or if you terminate
your employment by the Company for Good Reason either within: (a) twenty-four (24) calendar months
following a Change in Control; or (b) prior to a Change in Control if your termination was either a
condition of the Change in Control or was at the request or insistence of a Person (other than the
Company) related to the Change in Control, then, subject to your execution of a general release of
claims against the Company in the Company’s customary form for such purpose (a “Release”) within 55
days of your Termination of Employment and not revoking such Release:

     (i) Cash Payment. On the later to occur of six months following the Date of
Termination or sixteen days following your timely execution of a Release, the Company will
make a lump-sum cash payment to you in an amount equal to the product of (A) your Highest
Monthly Compensation multiplied by (B) the lesser of (I) the number of full or partial
calendar months remaining until your Retirement or (II) thirty-six (36).

     (ii) Welfare Plans. The Company will maintain in full force and effect, for
the continued benefit of you and your dependents for a period terminating on the earliest
of (A) thirty-six (36) calendar months after the Date of Termination or (B) your
Retirement, all insured and self-insured employee welfare benefit Plans (including, without
limitation, health, life, dental and disability plans) in which you were entitled to
participate at any time during the ninety (90)-calendar-day period immediately preceding
the Change in Control, provided that your continued participation is possible under the
general terms and provisions of such Plans and any applicable funding media and provided
that you continue to pay an amount equal to your regular contribution under such Plans for
such participation (based upon your level of benefits and employment status most favorable
to you at any time during the ninety (90)-calendar-day period immediately preceding the
Change in Control). If the thirty-six (36) month-period ends before you have reached
Retirement and you have not previously received or are not then receiving equivalent
benefits from a new employer (including coverage for any pre-existing conditions), the
Company will arrange, at its sole cost and expense, to enable you to

5

 

convert your and your
dependents’ coverage under such plans to individual policies or programs under the same
terms as executives of the Company may apply for such conversions. In the event that you
or your dependents’ participation in any such Plan is barred, the Company, at its sole cost
and expense, will arrange to have issued for the benefit of you and your dependents
individual policies of insurance providing benefits substantially similar (on a federal,
state and local income and employment after-tax basis) to those which you otherwise would
have been entitled to receive under such Plans pursuant to this clause (ii) or, if such
insurance is not available at a reasonable cost to the Company, the Company will otherwise
provide you and your dependents equivalent benefits (on a federal, state and local income
and employment after-tax basis). You will not be required to pay any premiums or other
charges in an amount greater than that which you would have paid in order to participate in
such Plans.

     (iii) Tax Reimbursement.

     (A) Anything in this Agreement to the contrary notwithstanding, in the event
it shall be determined that any payments or distributions by the Company, any
person or entity
whose actions result in a Change of Control or any person or entity affiliated
with the Company or such person or entity, to or for your benefit (whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement,
any option agreement, restricted stock award agreement or otherwise, but determined
without regard to any payments required under this Section 3(iii)) (collectively,
the “Payments”) would be subject to the excise tax imposed by Section 4999 of the
Code or you incur any interest or penalties with respect to such excise tax (such
excise tax, together with any such interest and penalties, are hereinafter
collectively referred to as the “Excise Tax”), then you shall be entitled to
receive an additional payment (a “Gross-Up Payment”) in an amount such that, after
your payment of all taxes (and any interest or penalties imposed with respect to
such taxes), including any income taxes and Excise Tax imposed upon the Gross-Up
Payment, you retain an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments.

     (B) Subject to the provisions of clause (D), below, all determinations
required to be made under this Section 3(iii), including whether and when a
Gross-Up Payment is required and the amount such Gross-Up Payment and the
assumptions to be utilized in arriving at such determination, shall be made by an
accounting firm of national reputation selected by the Company ( the “Accounting
Firm”), which shall provide detailed supporting calculations both to you and to the
Company within fifteen (15) business days of the receipt of notice from you that
there has been a Payment, or such earlier time as is requested by the Company. In
the event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, you shall appoint
another nationally recognized accounting firm to make the determinations required
hereunder (which accounting firm shall then be referred to as the “Accounting Firm”
hereunder). All fees and expenses of the Accounting Firm shall be borne solely by
the Company. Any Gross-Up Payment, as determined pursuant to this Section 3(iii),
shall be paid by the Company on your behalf within five days of the receipt of the
Accounting Firm’s determination. If the Accounting Firm determines that no Excise
Tax is payable by you, it shall furnish evidence of its determination that failure
to report the Excise Tax on your applicable federal income tax return would not
result in the imposition of a penalty. Any determination by the Accounting Firm
shall be binding upon you and the Company.

     (C) As a result of uncertainty in the application of Section 4999 of the Code
at the time of the initial determination by the Accounting Firm hereunder, it is
possible that Gross-Up Payments which should have been made by the Company will not
have been made (“Underpayment”), consistent with the calculations required to be
made hereunder. In the event that the Company exhausts its remedies pursuant to
clause (D) below and you thereafter are required to make a payment of any
additional Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by
the Company to or for your benefit.

6

 

     (D) You shall notify the Company in writing of any claim by the Internal
Revenue Service or any other taxing authority that, if successful, would require
the payment by the Company of any Gross-Up Payment. Such notification shall be
given as soon as practicable but no later than ten (10) business days after you
know of such claim and shall apprise the Company of the nature of such claim and
the date on which such claim is requested to be paid. You shall not pay such claim
prior to the expiration of the thirty (30)-day period following the date on which
you give such notice to the Company (or such shorter period ending on the date that
any payment of taxes with respect to such claim is due). If the Company notifies
you in writing prior to the expiration of such period that it desires to contest
such claim, you shall:

     (1) give the Company any information reasonably requested by the
Company relating to such claim;

     (2) take such action in connection with contesting such claim as the
Company shall reasonably request in writing from time to time, including
accepting
legal representation with respect to such claim by an attorney
reasonably selected by the Company;

     (3) cooperate with the Company in good faith in order to effectively
contest such claim; and

     (4) permit the Company to participate in any proceedings relating to
such claim;

provided, however, that the Company shall bear and pay directly all
costs and expenses (including additional interest and penalties) incurred in
connection with such contest and shall indemnify and hold you harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and penalties
with respect thereto) imposed as a result of such representation and payment of
costs and expenses. Without limitation on the foregoing provisions of this clause
(D), the Company shall control all proceedings taken in connection with such contest
and, at its sole option, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of such
claim and may, at its sole option, either direct you to pay the tax claimed and sue
for a refund or contest the claim in any permissible manner, and you agree to
prosecute such contest to a determination before any administrative tribunal, in a
court of initial jurisdiction and in one or more appellate courts, as the Company
shall determine. If the Company directs you to pay such claim and sue for a refund,
the Company shall: (i) to the extent not prohibited by law, rule or regulation,
advance the amount of such payment to you on an interest-free basis; or (ii) to the
extent any such advance is so prohibited, pay such amount directly; and, in either
case, shall indemnify and hold you harmless, on an after-tax basis, from any Excise
Tax or income tax (including interest or penalties with respect thereto) imposed
with respect to such payment or advance or with respect to any imputed income with
respect to such payment or advance; and provided further that any extension of the
statute of limitations relating to payment of taxes for your taxable year with
respect to which such contested amount is claimed to be due is limited solely to
such contested amount. Furthermore, the Company’s control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and you shall be entitled to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing authority.

     (E) If, after your receipt of an amount advanced by the Company pursuant to
clause (D), above, you become entitled to receive any refund with respect to such
claim, you shall (subject to the Company’s complying with the requirements of
clause (D)) promptly pay to the Company the amount of such refund (together with
any interest paid or credited thereon after taxes applicable thereto). If, after
your receipt of an amount advanced by the Company

7

 

pursuant to clause (D), above, a
determination is made that you shall not be entitled to any refund with respect to
such claim and the Company does not notify you in writing of its intent to contest
such denial of refund prior to the expiration of thirty (30) days after such
determination, then such advance shall be forgiven and shall not be required to be
repaid and the amount of such advance shall offset, to the extent thereof, the
amount of Gross-Up Payment required to be paid.

     (iv) Non-Competition Obligations. As consideration for the Gross-Up Payment
(which is hereby acknowledged by you as providing you with additional and sufficient
benefit to support the following covenant), you agree that in the event your employment
with the Company is terminated upon conditions entitling you to the payments and benefits
provided for under Section 3 of the Agreement, you will not, without the prior written
consent of the Company (given after the consummation of the Change in Control), alone or in
any capacity (other than by way of holding shares of a publicly traded company in an amount
not exceeding five percent (5%) of the outstanding class or series so traded) with any
other person or entity, directly or indirectly engage in competition with the Company or
any Subsidiary, in association with or as an officer, director, employee, principal, agent
or consultant of or to SuperValu, Inc., Spartan Stores, Inc., Merchants Distributors, Inc.,
Laurel Grocery
Company, L.L.C., C&S Wholesale Grocers or any of their respective subsidiaries,
affiliates or successors for a period ending one (1) year after such date of termination.

     4. Indemnification. Following a Change in Control, the Company will indemnify and pay
your expenses, as incurred, to the full extent permitted by law and the Company’s certificate of
incorporation and bylaws for damages, costs and expenses (including, without limitation, judgments,
fines, penalties, settlements and reasonable fees and expenses of your counsel) incurred in
connection with all matters, events and transactions relating to your service to or status with the
Company or any other corporation, employee benefit plan or other entity with whom you served at the
request of the Company.

     5. Confidentiality. You will not use, other than in connection with your employment
with the Company, or disclose any Confidential Information to any person not employed by the
Company or not authorized by the Company to receive such Confidential Information, without the
prior written consent of the Company; and you will use reasonable and prudent care to safeguard and
protect and prevent the unauthorized disclosure of Confidential Information. Nothing in this
Agreement will prevent you from using, disclosing or authorizing the disclosure of any Confidential
Information: (a) which is or hereafter becomes part of the public domain or otherwise becomes
generally available to the public through no fault of yours; (b) to the extent and upon the terms
and conditions that the Company may have previously made the Confidential Information available to
certain persons; or (c) to the extent that you are required to disclose such Confidential
Information by law or judicial or administrative process.

     6. Successors. The Company will seek to have any Successor, by agreement in form and
substance satisfactory to you, assent to the fulfillment by the Company of the Company’s
obligations under this Agreement. Failure of the Company to obtain such assent at least three (3)
business days prior to the time a Person becomes a Successor (or where the Company does not have at
least three (3) business days’ advance notice that a Person may become a Successor, within one (1)
business day after having notice that such Person may become or has become a Successor) will
constitute Good Reason for termination by you of your employment.

     7. Fees and Expenses. The Company, upon demand, will pay or reimburse you for all
reasonable legal fees, court costs, experts’ fees and related costs and expenses incurred by you in
connection with any actual, threatened or contemplated litigation or legal, administrative,
arbitration or other proceeding relating to this Agreement to which you are or reasonably expect to
become a party, whether or not initiated by you, including, without limitation, your seeking to
obtain or enforce any right or benefit provided by this Agreement; provided, however, you will be
required to repay (without interest) any such amounts to the Company to the extent that a court
issues a final and non-appealable order setting forth the determination that the position taken by
you was frivolous or advanced by you in bad faith.

8

 

     8. Binding Agreement. This Agreement inures to the benefit of, and is enforceable by,
you, your personal and legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If you die while any amount would still be payable to you
under this Agreement if you had continued to live, all such amounts, unless otherwise provided in
this Agreement, will be paid in accordance with the terms of this Agreement to your devisee,
legatee or other designee or, if there be no such designee, to your estate.

     9. No Mitigation. You will not be required to mitigate the amount of any payments or
benefits the Company becomes obligated to make or provide to you in connection with this Agreement
by seeking other employment or otherwise. The payments or benefits to be made or provided to you
in connection with this Agreement may not be reduced, offset or subject to recovery by the Company
by any payments or benefits you may receive from other employment or otherwise.

     10. No Setoff. The Company will have no right to setoff payments or benefits owed to
you under this Agreement against amounts owed or claimed to be owed by you to the Company under
this Agreement or otherwise.

     11. Taxes. All payments and benefits to be made or provided to you in connection with
this Agreement will be subject to required withholding of federal, state and local income, excise
and employment-related taxes.

     12. Notices. For the purposes of this Agreement, notices and all other communications
provided for in, or required under, this Agreement must be in writing and will be deemed to have
been duly given when personally delivered or when mailed by United States registered or certified
mail, return receipt requested, postage prepaid and addressed to each party’s respective address
set forth on the first page of this Agreement (provided that all notices to the Company must be
directed to the attention of the chair of the Board), or to such other address as either party may
have furnished to the other in writing in accordance with these provisions, except that notice of
change of address will be effective only upon receipt.

     13. Disputes. Any dispute, controversy or claim for damages rising under or in
connection with this Agreement may, in your sole discretion, be settled exclusively by such
judicial remedies that you may seek to pursue or by arbitration in Minneapolis, Minnesota by three
(3) arbitrators in accordance with the rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitrators’ award in any court having jurisdiction. The
Company will be entitled to seek an injunction or restraining order in a court of competent
jurisdiction (within or without the State of Minnesota) to enforce the provisions of Section 5 of
this Agreement.

     14. Jurisdiction. Except as specifically provided otherwise in this Agreement, the
parties agree that any action or proceeding arising under or in connection with this Agreement must
be brought in a court of competent jurisdiction in the State of Minnesota, and hereby consent to
the exclusive jurisdiction of said courts for this purpose and agree not to assert that such courts
are an inconvenient forum.

     15. Related Agreements. To the extent that any provision of any other Plan or
agreement between the Company and you shall limit, qualify or be inconsistent with any provision of
this Agreement, then for purposes of this Agreement, while such other Plan or agreement remains in
force, the provision of this Agreement will control and such provision of such other Plan or
agreement will be deemed to have been superseded, and to be of no force or effect, as if such other
agreement had been formally amended to the extent necessary to accomplish such purpose. Nothing in
this Agreement prevents or limits your continuing or future participation in any Plan provided by
the Company and for which you may qualify, and nothing in this Agreement limits or otherwise
affects the rights you may have under any Plans or other agreements with the Company. Amounts
which are vested benefits or which you are otherwise entitled to receive under any Plan or other
agreement with the Company at or subsequent to the Date of Termination will be payable in
accordance with such Plan or other agreement.

     16. No Employment or Service Contract. Nothing in this Agreement is intended to
provide you with any right to continue in the employ of the Company for any period of specific
duration or interfere with or

9

 

otherwise restrict in any way your rights or the rights of the
Company, which rights are hereby expressly reserved by each, to terminate your employment at any
time for any reason or no reason whatsoever, with or without cause.

     17. Survival. The respective obligations of, and benefits afforded to, the Company
and you which by their express terms or clear intent survive termination of your employment with
the Company or termination of this Agreement, as the case may be, including, without limitation,
the provisions of Sections 3, 4, 5, 6, 7, 10, 11, 12 and 13 of this Agreement, will survive
termination of your employment with the Company or termination of this Agreement, as the case may
be, and will remain in full force and effect according to their terms.

     18. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such modification, waiver or discharge is agreed to in a writing signed by you
and the chair of the Board. No waiver by any party to this Agreement at any time of any breach by
another party to this Agreement of, or of compliance with, any condition or provision of this
Agreement to be performed by such party will be deemed a waiver of similar or dissimilar provisions
or conditions at the same or at any prior or subsequent time. No agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter to this Agreement have
been made by any party which are not expressly set forth in this Agreement.

This Agreement and the legal relations among the parties as to all matters, including, without
limitation, matters of validity, interpretation, construction, performance and remedies, will be
governed by and construed exclusively in accordance with the internal laws of the State of
Minnesota (without regard to the conflict of laws
provisions of any jurisdiction), except to the extent that the provisions of the corporate law of
Delaware may apply to the internal affairs of the Company. Headings are for purposes of
convenience only and do not constitute a part of this Agreement. The parties to this Agreement
agree to perform, or cause to be performed, such further acts and deeds and to execute and deliver,
or cause to be executed and delivered, such additional or supplemental documents or instruments as
may be reasonably required by the other party to carry into effect the intent and purpose of this
Agreement. The invalidity or unenforceability of all or any part of any provision of this
Agreement will not affect the validity or enforceability of the remainder of such provision or of
any other provision of this Agreement, which will remain in full force and effect. This Agreement
may be executed in several counterparts, each of which will be deemed to be an original, but all of
which together will constitute one and the same instrument.

If this letter correctly sets forth our agreement on the subject matter discussed above, kindly
sign and return to the Company the enclosed copy of this letter which will then constitute our
agreement on this subject.

Sincerely,

NASH FINCH COMPANY.

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

William R. Voss
	 	 
	 

	 	Chair, Nash Finch Board of Directors	 	 
	 
	 	 	 	 
	Agreed to this 28th day of February 2011.	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	Alec C. Covington	 	 

10

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