Document:

exv4w1

Exhibit 4.1

THE TJX COMPANIES, INC.,

as Issuer

and

U.S. Bank National Association,

as Trustee

SECOND SUPPLEMENTAL INDENTURE

Dated as of July 23, 2009

to the Indenture dated as of April 2, 2009

4.200% Notes due 2015

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1

	APPLICATION OF SUPPLEMENTAL INDENTURE

	 
	 	 	 	 
	Section 1.01. Application of Second Supplemental Indenture
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 2

	DEFINITIONS

	 
	 	 	 	 
	Section 2.01. Certain Terms Defined in the Indenture
	 	 	2	 
	Section 2.02. Definitions
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 3

	FORM AND TERMS OF THE NOTES

	 
	 	 	 	 
	Section 3.01. Form and Dating
	 	 	7	 
	Section 3.02. Terms of the Notes
	 	 	8	 
	Section 3.03. Optional Redemption
	 	 	8	 
	Section 3.04. Repurchase of Notes upon a Change of Control
	 	 	9	 
	Section 3.05. Certain Interest Payments
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 4

	CERTAIN COVENANTS

	 
	 	 	 	 
	Section 4.01. Restrictions on Secured Debt
	 	 	11	 
	Section 4.02. Restrictions on Sale and Leaseback Transactions
	 	 	12	 
	Section 4.03. Exempted Debt
	 	 	13	 
	Section 4.04. Limitations Upon Permitting Restricted Subsidiaries to become
Non-Restricted Subsidiaries and Non-Restricted Subsidiaries to become Restricted
Subsidiaries
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 5

	MISCELLANEOUS

	 
	 	 	 	 
	Section 5.01. Trust Indenture Act Controls
	 	 	14	 
	Section 5.02. New York Law to Govern
	 	 	14	 
	Section 5.03. Counterparts
	 	 	14	 
	Section 5.04. Severability
	 	 	14	 
	Section 5.05. Ratification
	 	 	14	 
	Section 5.06. Effectiveness
	 	 	14	 
	Section 5.07. Trustee Makes No Representation
	 	 	15	 
	 
	EXHIBIT A — Form of 4.200% Note due 2015
	 	 	A-1	 

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SECOND SUPPLEMENTAL INDENTURE

          SECOND SUPPLEMENTAL INDENTURE (this “Second Supplemental Indenture”), dated as of July 23,
2009, between The TJX Companies, Inc., a Delaware corporation (the “Company”), and U.S. Bank
National Association, as Trustee (the “Trustee”).

RECITALS OF THE COMPANY

          WHEREAS, the Company and the Trustee executed and delivered an Indenture, dated as of April 2,
2009 (the “Base Indenture,” and together with this Second Supplemental Indenture, the “Indenture”),
to provide for the issuance by the Company from time to time of Securities to be issued in one or
mores series as provided in the Indenture;

          WHEREAS, Section 9.1 of the Base Indenture provides, among other things, that the Company and
the Trustee may enter into indentures supplemental to the Base Indenture, without the consent of
any Holders of Securities, to establish the form of any Security, as permitted by Section 2.1 of
the Base Indenture, and to provide for the issuance of the Notes (as defined below), as permitted
by Section 3.1 of the Base Indenture, and to set forth the terms thereof;

          WHEREAS, the Company desires to execute this Second Supplemental Indenture pursuant to Section
2.1 of the Base Indenture to establish the form, and pursuant to Section 3.1 of the Base Indenture
to provide for the issuance, of a series of its senior notes designated as its 4.200% Notes due
2015 (the “Notes”), in an initial aggregate principal amount of $400,000,000. The Notes are a
series of securities as referred to in Section 3.1 of the Base Indenture.

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

          WHEREAS, all things necessary have been done by the Company to make this Second Supplemental
Indenture, when executed and delivered by the Company, a valid supplement to the Indenture; and

          WHEREAS, all things necessary have been done by the Company to make the Notes, when executed
by the Company and authenticated and delivered in accordance with the provisions of the Indenture,
the valid obligations of the Company;

          NOW, THEREFORE, in consideration of the premises stated herein and the purchase of the Notes
by the Holders thereof, the Company and the Trustee mutually covenant and agree for the equal and
proportionate benefit of the respective Holders from time to time of the Notes as follows:

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ARTICLE 1

APPLICATION OF SUPPLEMENTAL INDENTURE

          Section 1.01. Application of Second Supplemental Indenture.

          Notwithstanding any other provision of this Second Supplemental Indenture, all provisions of
this Second Supplemental Indenture are expressly and solely for the benefit of the Holders of the
Notes and any such provisions shall not be deemed to apply to any other securities issued under the
Indenture and shall not be deemed to amend, modify or supplement the Base Indenture for any purpose
other than with respect to the Notes. Unless otherwise expressly specified, references in this
Second Supplemental Indenture to specific Article numbers or Section numbers refer to Articles and
Sections contained in this Second Supplemental Indenture as they amend or supplement the Base
Indenture, and not the Base Indenture or any other document. All Initial Notes and Additional
Notes, if any, shall be treated as a single class for all purposes of this Indenture, including
waivers, amendments, redemptions and offers to purchase.

ARTICLE 2

DEFINITIONS

          Section 2.01. Certain Terms Defined in the Indenture.

          For purposes of this Second Supplemental Indenture, all capitalized terms used but not defined
herein shall have the meanings ascribed to such terms in the Base Indenture, as amended hereby.

          Section 2.02. Definitions.

          For the benefit of the Holders of the Notes, Section 1.1 of the Base Indenture shall be
amended by adding the following new definitions:

          “Additional Notes” has the meaning specified in Section 3.02(b) hereto.

          “Attributable Debt” in respect of a Sale and Leaseback Transaction means, at the time of
determination, the present value (discounted at the imputed rate of interest of such transaction
determined in accordance with generally accepted accounting principles) of the obligation of the
lessee for net rental payments during the remaining term of the lease included in such arrangement
(including any period for which such lease has been extended or may, at the option of the lessor,
be extended). The term “net rental payments” under any lease for any period shall mean the sum of
the rental and other payments required to be paid in such period by the lessee thereunder, not
including any amounts required to be paid by such lessee (whether or not designated as rental or
additional rental) on account of maintenance and repairs, insurance, taxes, assessments, water
rates or similar charges required to be paid by such lessee thereunder or any amounts required to
be paid by such lessee thereunder contingent upon the amount of sales, maintenance and repairs,
insurance, taxes, assessments, water rates or similar charges.

          “Capitalized Lease Obligations” means obligations created pursuant to leases that are required
to be shown on the liability side of a balance sheet in accordance with FASB

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Statement No. 13, “Accounting for Leases,” as amended and interpreted, or any successor or
comparable accounting standard.

          “Change of Control” means the occurrence of any of the following: (1) the direct or indirect
sale, lease, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or more series of related transactions, of all or substantially all of the
Company’s assets and the assets of its Subsidiaries, taken as a whole, to any person, other than
the Company or one of its Subsidiaries; (2) the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any person (other than the
Company or one of its Wholly-Owned Subsidiaries) becomes the beneficial owner (as defined in Rules
13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Company’s
outstanding Voting Stock or other Voting Stock into which the Company’s Voting Stock is
reclassified, consolidated, exchanged or changed, measured by voting power rather than number of
shares; (3) the first day on which a majority of the members of the Company’s Board of Directors
are not Continuing Directors; or (4) the adoption of a plan relating to the Company’s liquidation
or dissolution.

          The term “person”, as used in this definition, has the meaning given thereto in Section
13(d)(3) of the Exchange Act.

          “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Rating Event.

          “Comparable Treasury Issue” means the United States Treasury security or securities selected
by an Independent Investment Banker as having an actual or interpolated maturity comparable to the
remaining term of the Notes 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 a comparable maturity to the remaining term of such Notes.

          “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 such Reference Treasury Dealer Quotations, or (B) if the Company obtains fewer than four
such Reference Treasury Dealer Quotations, the average of all such quotations.

          “Consolidated Net Tangible Assets” means the total amount of assets (less depreciation and
valuation reserves and other reserves and items deductible from the gross book value of specific
asset accounts under generally accepted accounting principles) that under generally accepted
accounting principles would be included on the Company’s and its Restricted Subsidiaries’
consolidated balance sheet, after deducting therefrom (i) amounts that would, in conformity with
generally accepted accounting principles, be included as current liabilities on such consolidated
balance sheet (other than (x) the current portion of any Funded Debt or Capitalized Lease
Obligations, (y) the current portion of accrued interest and (z) the current portion of current and
deferred income taxes), (ii) all goodwill, trade names, trademarks, patents, unamortized debt
discount and expense and other like intangibles (other than leasehold costs), which in each such
case would be so included on such balance sheet, and (iii) all amounts which

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would be so included on such balance sheet in respect of Investments (less applicable
reserves) in Non-Restricted Subsidiaries in excess of the amount of such Investments at January 31,
2009.

          “Continuing Directors” means, as of any date of determination, any members of the Company’s
Board of Directors who (1) were members of the Company’s Board of Directors on the date the Notes
were issued or (2) were nominated for election, elected or appointed to the Company’s Board of
Directors with the approval of a majority of the Continuing Directors who were members of the
Company’s Board of Directors at the time of such nomination, election or appointment (either by a
specific vote or by approval of the Company’s proxy statement in which such member was named as a
nominee for election as a director, without objection to such nomination).

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

          “Funded Debt” of any person means Indebtedness, whether incurred, assumed or guaranteed,
maturing by its terms more than one year from the date of creation thereof, or that is extendable
or renewable at the sole option of the obligor so that it may become payable more than one year
from the date of creation thereof; provided, however, that Funded Debt shall not include (i)
obligations created pursuant to leases, (ii) any Indebtedness or portion thereof maturing by its
terms within one year from the time of any computation of the amount of outstanding Funded Debt
unless such Indebtedness shall be extendable or renewable at the sole option of the obligor in such
manner that it may become payable more than one year from such time, or (iii) any Indebtedness for
the payment or redemption of which money in the necessary amount shall have deposited in trust
either at or before the maturity date thereof.

          “Global Note” means the Note in the form of Global Securities issued to the Depositary or its
nominee, substantially in the form of Exhibit A.

          “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the
Company.

          “Initial Notes” has the meaning specified in Section 3.02(b) hereto.

          “Investment” means and includes any investment in stock, evidences of indebtedness, loans or
advances, however made or acquired, but shall not include the Company’s or any Restricted
Subsidiary’s accounts receivable arising from transactions in the ordinary course of business, or
any evidences of indebtedness, loans or advances made in connection with the sale to any Subsidiary
of the Company’s or any Restricted Subsidiary’s accounts receivable arising from transactions in
the Company’s or any Restricted Subsidiary’s ordinary course of business.

          “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, and the equivalent investment grade credit rating
from any replacement Rating Agency or Rating Agencies selected by the Company.

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

          “Mortgage” and “Mortgages” have the meaning specified in Section 4.01(a) hereto.

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          “Net Proceeds” means the aggregate cash proceeds received by the Company or any of its
Restricted Subsidiaries in respect of any Sale and Leaseback Transaction, net of the direct costs
relating to such Sale and Leaseback Transaction, including (i) legal, accounting and investment
banking fees, and brokerage and sales commissions, (ii) any relocation expenses incurred as a
result thereof, (iii) taxes paid or payable as a result thereof (after taking into account any
available tax credits or deductions and any tax sharing arrangements), (iv) amounts required to be
applied to the repayment of principal, premium, if any, and interest on Indebtedness secured by the
Operating Property or Operating Assets disposed of and required to be paid as a result of such
transaction and (v) any deduction of appropriate amounts to be provided by the Company or any
Restricted Subsidiary as a reserve in accordance with generally accepted accounting principles
against any liabilities associated with the Operating Property or Operating Assets disposed of in
such transaction and retained by the Company or any Restricted Subsidiary after such sale or other
disposition thereof.

          “Non-Restricted Subsidiary” means any Subsidiary other than a Restricted Subsidiary.

          “Notes” has the meaning specified in the recitals hereto.

          “Operating Assets” means all merchandise inventories, furniture, fixtures and equipment
(including all transportation and warehousing equipment but excluding office equipment and data
processing equipment) owned by the Company or a Restricted Subsidiary.

          “Operating Property” means all real property and improvements thereon owned by the Company or
a Restricted Subsidiary constituting, without limitation, any store, warehouse, service center or
distribution center wherever located; provided that such term shall not include any store,
warehouse, service center or distribution center that the Company’s Board of Directors declares by
resolution not to be of material importance to the Company’s and its Restricted Subsidiaries’
business. Operating Property is treated as having been “acquired” on the day the Operating
Property is placed in operation by the Company or a Restricted Subsidiary after the later of (a)
its acquisition from a third party, including a Non-Restricted Subsidiary, (b) completion of its
original construction or (c) completion of its substantial reconstruction, renovation, remodeling,
expansion or improvement (whether or not constituting an Operating Property prior to such
reconstruction, renovation, remodeling, expansion or improvement).

          “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 selected by the Company as a
replacement agency for Moody’s or S&P, or both of them, as the case may be.

          “Rating Event” means the rating on the Notes is lowered by both Rating Agencies and the Notes
are rated below an Investment Grade Rating by both Rating Agencies, in any case

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on any day during the period (which period will be extended so long as the rating of the Notes
is under publicly announced consideration for a possible downgrade by any of the Rating Agencies)
commencing upon the first public notice of the occurrence of a Change of Control or the Company’s
intention to effect a Change of Control and ending 60 days following the consummation of the Change
of Control; provided that a Rating Event otherwise arising by virtue of a particular reduction in
rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus
shall not be deemed a Rating Event for purposes of the definition of Change of Control Triggering
Event hereunder) if any of the Rating Agencies making the reduction in rating to which this
definition would otherwise apply does not announce or publicly confirm or inform the Trustee in
writing at 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 shall have occurred at the time of the
Rating Event).

          “Reference Treasury Dealer” means each of Banc of America Securities LLC, Deutsche Bank
Securities Inc., J.P. Morgan Securities Inc., RBS Securities Inc. or their affiliates that are
primary U.S. Government securities dealers and one other primary U.S. Government securities dealer
in the City of New York selected by the Company, and their respective successors; provided,
however, that if any of the foregoing or their affiliates shall cease to be a primary U.S.
Government securities dealer in The City of New York, the Company shall substitute therefor another
such primary U.S. Government securities dealer.

          “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Company, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Company by such Reference Treasury Dealer at 3:30 p.m. New York time on
the third Business Day preceding such Redemption Date.

          “Restricted Subsidiary” means any Subsidiary so designated by the Company’s Board of Directors
or the Company’s duly authorized Officers in accordance with this Second Supplemental Indenture
provided that (a) the Company’s Board of Directors or its duly authorized Officers may, subject to
certain limitations, designate any Non-Restricted Subsidiary as a Restricted Subsidiary and any
Restricted Subsidiary as a Non-Restricted Subsidiary and (b) any Subsidiary of which the majority
of the voting stock is owned directly or indirectly by one or more Non-Restricted Subsidiaries
shall be a Non-Restricted Subsidiary.

          “Sale and Leaseback Transaction” has the meaning specified in Section 4.02 hereto.

          “Senior Funded Debt” means all of the Company’s Funded Debt (except Funded Debt, the payment
of which is expressly subordinated to the payment of the Notes).

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

          “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the
semiannual equivalent yield to maturity or interpolated maturity (on a day count

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basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such
Redemption Date.

          “Voting Stock” means, with respect to any specified “person” (as that term is used in Section
13(d)(3) of the Exchange Act) as of any date, the capital stock of such person that is at the time
entitled to vote generally in the election of the board of directors of such person.

          “Wholly Owned Restricted Subsidiary” means any Restricted Subsidiary, all of the capital stock
of which, other than directors’ qualifying shares, is owned by the Company and its other Wholly
Owned Restricted Subsidiaries.

ARTICLE 3

FORM AND TERMS OF THE NOTES

          Section 3.01. Form and Dating.

          (a) The Notes and the Trustee’s certificate of authentication shall be substantially in the
form of Exhibit A attached hereto. The Notes shall be executed on behalf of the Company by
an Officer of the Company and attested by its Secretary or one of its Assistant Secretaries. The
Notes may have notations, legends or endorsements required by law, stock exchange rules or usage.
Each Note shall be dated the date of its authentication. The Notes and any beneficial interest in
the Notes shall be in minimum denominations of $2,000 and integral multiples of $1,000 in excess
thereof.

          (b) The terms and notations contained in the Notes shall constitute, and are hereby expressly
made, a part of the Indenture, and the Company and the Trustee, by their execution and delivery of
this Second Supplemental Indenture, expressly agree to such terms and provisions and to be bound
thereby.

          (c) Global Note. The Notes shall be issued initially in the form of fully registered
Global Securities (the “Global Note”), which shall be deposited on behalf of the purchasers of the
Notes represented thereby with The Depository Trust Company, New York, New York (the “Depositary”)
and registered in the name of Cede & Co., the Depositary’s nominee, duly executed by the Company,
authenticated by the Trustee.

          (d) Book-Entry Provisions. This Section 3.01(d) shall apply only to the Global Note
deposited with or on behalf of the Depositary. The Company shall execute and the Trustee shall, in
accordance with this Section 3.01(d), authenticate and deliver the Global Note that shall be
registered in the name of the Depositary or the nominee of the Depositary and shall be delivered by
the Trustee to the Depositary or pursuant to the Depositary’s instructions.

          (e) Paying Agent. The Company initially appoints the Trustee as Paying Agent for the
payment of the principal of (and premium, if any) and interest on the Notes and the office of the
Trustee at U.S. Bank National Association, 100 Wall Street, 16th Floor, New York, New
York 10005, be and hereby is, designated as the Place of Placement where the Notes may be presented
for payment.

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          Section 3.02. Terms of the Notes. The following terms relating to the Notes are
hereby established:

          (a) Title. The Notes shall constitute a series of Securities having the title “4.200%
Notes due 2015”.

          (b) Principal Amount. The aggregate principal amount of the Notes that may be
initially authenticated and delivered under the Indenture (the “Initial Notes”) shall be
$400,000,000 (except for Notes authenticated and delivered upon registration of, transfer of, or in
exchange for, or in lieu of, other Notes pursuant to Sections 3.4, 3.5, 3.6, 9.6 or 11.7 of the
Indenture). The Company may from time to time, without the consent of the Holders of Notes, issue
additional Notes (in any such case “Additional Notes”) having the same ranking and the same
interest rate, Maturity and other terms as the Initial Notes. Any Additional Notes and the Initial
Notes shall constitute a single series under the Indenture and all references to the Notes shall
include the Initial Notes and any Additional Notes unless the context otherwise requires.

          (c) Maturity Date. The entire outstanding principal amount of the Notes shall be
payable on August 15, 2015.

          (d) Interest Rate. The rate at which the Notes shall bear interest shall be 4.200%
per annum; the date from which interest shall accrue on the Notes shall be July 23, 2009, or the
most recent Interest Payment Date to which interest has been paid or provided for; the Interest
Payment Dates for the Notes shall be February 15 and August 15 of each year, beginning February 15,
2010; the interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date, will be paid, in immediately available funds, to the Persons in whose names the Note (or
predecessor Note) is registered (which shall initially be the Depository) at the close of business
on the Regular Record Date for such interest, which shall be the February 1 or August 1, as the
case may be, next preceding such Interest Payment Date. Interest shall be computed on the basis of
a 360-day year comprised of twelve 30-day months. For so long as the Notes are represented in
global form by one or more Global Securities, all payments of principal (and premium, if any) and
interest shall be made by wire transfer of immediately available funds to the Depositary or its
nominee, as the case may be, as the registered owner of the Global Security representing such
Notes. In the event that definitive Notes shall have been issued, all payments of principal (and
premium, if any) and interest shall be made by wire transfer of immediately available funds to the
accounts of the registered Holders thereof; provided, that the Company may elect to make
such payments at the office of the Paying Agent in The City of New York; and provided
further, that the Company may at its option pay interest by check to the registered address
of each Holder of a definitive Note.

          (e) Currency. The currency of denomination of the Notes is United States Dollars.
Payment of principal of and interest and premium, if any, on the Notes shall be made in United
States Dollars.

          (f) Sinking Fund. The Notes are not subject to any sinking fund.

          Section 3.03. Optional Redemption.

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          (a) The provisions of Article 11 of the Base Indenture, as supplemented by the provisions of
this Second Supplemental Indenture, shall apply to the Notes.

          (b) The Notes shall be redeemable as a whole or in part, at the Company’s option at any time,
at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Notes to be
redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal
and interest thereon (exclusive of interest accrued and unpaid to the date of redemption)
discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of
twelve 30-day months) at the Treasury Rate plus 30 basis points, plus, in each case, accrued and
unpaid interest thereon to, but not including, the date of redemption. Further, installments of
interest on the Notes to be redeemed that are due and payable on the Interest Payment Dates falling
on or prior to the Redemption Date shall be payable on the Interest Payment Date to the registered
Holders as of the close of business on the relevant Regular Record Date according to the Notes and
the Indenture.

          (c) Notice of any redemption shall be mailed at least 30 days but not more than 60 days before
the Redemption Date to each Holder of the Notes to be redeemed; provided that notice of
redemption may be mailed more than 60 days prior to the Redemption Date if the notice is issued in
connection with a defeasance of the Notes or a satisfaction and discharge of Notes. If less than
all of the Notes are to be redeemed, the Notes to be redeemed shall be selected by the Trustee by
lot or any other such method as the Trustee deems to be fair and appropriate.

          (d) Unless the Company defaults in payment of the Redemption Price, on and after the
Redemption Date interest shall cease to accrue on the Notes or portions thereof called for
redemption.

          Section 3.04. Repurchase of Notes upon a Change of Control.

          (a) If a Change of Control Triggering Event occurs with respect to the Notes, unless the
Company has exercised its option to redeem the Notes as provided in Section 3.03, the Company shall
make an offer (a “Change of Control Offer”) to each Holder of the Notes to repurchase all or any
part (equal to any integral multiple of $1,000, such that any remaining portion held be such Holder
is at least $2,000) of that Holder’s Notes on the terms set forth in this Section 3.04 and in the
Notes. In a Change of Control Offer, the Company shall offer payment in cash equal to 101% of the
aggregate principal amount of Notes repurchased, plus accrued and unpaid interest, if any, on the
Notes repurchased to the date of repurchase (a “Change of Control Payment”). Within 30 days
following any Change of Control Triggering Event or, at the Company’s option, prior to any Change
of Control, but after public announcement of the transaction that constitutes or may constitute the
Change of Control, a notice shall be mailed to Holders of the Notes, describing the transaction
that constitutes or may constitute the Change of Control Triggering Event and offering to
repurchase the Notes on the date specified in the applicable notice, which date shall be no earlier
than 30 days and no later than 60 days from the date such notice is mailed (a “Change of Control
Payment Date”). The notice shall, if mailed prior to the date of consummation of the Change of
Control, state that the Change of Control Offer is conditioned on the Change of Control Triggering
Event occurring on or prior to the applicable Change of Control Payment Date; provided, that the
expiration of the Change of Control Offer prior to consummation of such Change of Control shall not
relieve the

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Company of its obligation under this Section 3.04 if such Change of Control subsequently
occurs.

          (b) On each Change of Control Payment Date, the Company shall, to the extent lawful:

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

     (ii) deposit with the Paying Agent an amount equal to the Change of Control
Payment in respect of all Notes or portions of Notes properly tendered; and

     (iii) deliver or cause to be delivered to the Trustee the Notes properly
accepted together with an Officers’ Certificate stating the aggregate principal
amount of Notes or portions of Notes being repurchased.

          (c) The Company shall not be required to make a Change of Control Offer upon the occurrence of
a Change of Control Triggering Event if a third party makes such an offer in the manner, at the
times and otherwise in compliance with the requirements for an offer made by the Company and the
third party purchases all Notes properly tendered and not withdrawn under its offer. In addition,
the Company shall not repurchase any Notes if there has occurred and is continuing on the Change of
Control Payment Date an Event of Default under the Indenture, other than a default in the payment
of the Change of Control Payment.

          (d) 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 the Change of Control Offer provisions of the Notes, the Company shall comply with those
securities laws and regulations and shall not be deemed to have breached its obligations under the
Change of Control Offer provisions of the Notes by virtue of any such conflict and compliance.

          Section 3.05. Certain Interest Payments

          Installments of interest that are due and payable on Notes to be repurchased or redeemed on a
Change of Control Payment Date or Redemption Date, as the case may be, between a Regular Record
Date and an Interest Payment Date shall be payable on the Change of Control Payment Date or
Redemption Date, as the case may be, to the registered Holders as of the close of business on the
relevant Regular Record Date according to the Notes and the Indenture.

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ARTICLE 4

CERTAIN COVENANTS

          The following covenants shall be applicable to the Company for so long as any of the Notes are
Outstanding. Nothing in this Article will, however, affect the Company’s rights or obligations
under any other provision of the Base Indenture or this Second Supplemental Indenture.

          Section 4.01. Restrictions on Secured Debt

          (a) The Company shall not, and shall not permit any Restricted Subsidiary to issue, assume or
guarantee any Indebtedness secured by any mortgage, security interest, pledge, lien or other
encumbrance (herein referred to as a “Mortgage” or “Mortgages”) upon any Operating Property or
Operating Assets of the Company or any Restricted Subsidiary, whether such Operating Property or
Operating Asset is now owned or hereafter acquired, without in any such case effectively providing
concurrently with the issuance, assumption or guarantee of any such Indebtedness that the Notes
(together with, if the Company shall so determine, any other Indebtedness ranking equally with the
Notes other than Securities not having the benefit of this Section 4.1) shall be secured equally
and ratably with such Indebtedness, except that the foregoing restrictions shall not apply to:

     (i) the giving, within 180 days after the later of the acquisition or completion of
construction or completion of substantial reconstruction, renovation, remodeling, expansion
or improvement (each a “substantial improvement”) of such property, and the placing in
operation of such property after the acquisition or completion of any such construction or
substantial improvement, of any purchase money Mortgage (including security for bankers
acceptances and similar inventory financings in the ordinary course of business and vendors’
rights under purchase contracts under an agreement whereby title is retained for the purpose
of securing the purchase price thereof), or the acquiring of property not theretofore owned
by the Company or such Restricted Subsidiary subject to any then existing Mortgage securing
Indebtedness (whether or not assumed) including Indebtedness incurred for reimbursement of
funds previously expended for any such purpose, provided that in each case (x) such Mortgage
is limited to such property, including accretions thereto and any such construction or
substantial improvement (or, with respect to bankers acceptances and similar inventory
financings in the ordinary course of business, any inventory acquired by the Company or such
Restricted Subsidiary during the 180-day period immediately preceding the date of creation
of such Mortgage); (y) the principal amount of the Indebtedness being incurred that is
secured by such Mortgage shall not exceed the cost of such acquired property, construction
or substantial improvement, as the case may be; and (z) the principal amount of the
Indebtedness secured by such Mortgage, together with all other Indebtedness to persons other
than the Company or a Restricted Subsidiary secured by Mortgages on such property, shall not
exceed the total cost of such property, including any such construction or substantial
improvement;

11

 

     (ii) the giving by the Company or a Restricted Subsidiary of a Mortgage on real
property that is the sole security for Indebtedness (w) incurred within three years after
the latest of (1) the date of acquisition of such real property or (2) the date of
completion of construction or substantial improvement made thereon by the Company or such
Restricted Subsidiary, (x) incurred for the purpose of reimbursing itself for the cost of
acquisition and/or the cost of improvement of such real property, (y) the amount of which
does not exceed the aggregate cost of such real property and improvements, and (z) the
Holder of which shall be entitled to enforce payment of such Indebtedness solely by
resorting to the security therefor, without any liability on the part of the Company or such
Restricted Subsidiary for any deficiency;

     (iii) any Mortgage on the Company’s or any Subsidiary’s assets existing on the date of
this Second Supplemental Indenture or any Mortgage on the assets of any person on the date
it became a Subsidiary or is merged into or consolidated with the Company or any Subsidiary
or any Mortgage on the assets of a Subsidiary that is newly designated as a Restricted
Subsidiary, if such Mortgage was created while such Subsidiary was a Non- Restricted
Subsidiary, and such Mortgage would have been permitted under the provisions of this
paragraph if such Subsidiary had been a Restricted Subsidiary at the time such Mortgage was
created;

     (iv) any Mortgage incurred in connection with any refunding or extension of
Indebtedness secured by a Mortgage permitted under clauses (i) to (iii) above, provided that
the principal amount of the refinancing or extending Indebtedness does not exceed the
principal amount of the Indebtedness so refunded or extended and that such Mortgage applies
only to the same property or assets subject to the prior permitted Mortgage and fixtures and
building improvements thereon (and if the prior Mortgage was incurred under clause (ii)
above, the requirements of clause (z) thereof are satisfied); or

     (v) any Mortgage given in favor of the Company or any Wholly Owned Restricted
Subsidiary.

          Section 4.02. Restrictions on Sale and Leaseback Transactions

          The Company shall not, and shall not permit any Restricted Subsidiary to, enter into any
arrangement with any person providing for the leasing by the Company or any Restricted Subsidiary
of any Operating Property or Operating Asset that has been or is to be sold or transferred by the
Company or such Restricted Subsidiary to such person subsequent to the date of this Second
Supplemental Indenture with the intention of taking back a lease of such property (a “Sale and
Leaseback Transaction”) unless the terms of such sale or transfer have been determined by the
Company to be fair and arm’s length and, within 180 days after the receipt of the proceeds of such
sale or transfer, the Company or any Restricted Subsidiary (1) apply an amount equal to the Net
Proceeds of such sale or transfer of such Operating Property or Operating Asset at the time of such
sale or transfer to the prepayment or retirement (other than any mandatory prepayment or
retirement) of Senior Funded Debt of the Company or Funded Debt of such Restricted Subsidiary or
(2) reinvest the Net Proceeds of such sale or transfer in assets used or useful for the Company’s
and its Restricted Subsidiaries’ business. The foregoing restriction shall not apply to (i) any
Sale and Leaseback Transaction for a term of not more than

12

 

three years including renewals, (ii) any Sale and Leaseback Transaction with respect to
Operating Property if a binding commitment with respect thereto is entered into within three years
after the date such property was acquired (as the term “acquired” is used in the definition of
Operating Property) or any Sale and Leaseback Transaction with respect to Operating Assets if a
binding commitment with respect thereto is entered into within 180 days after the later of the date
such property was acquired and, if applicable, the date such property was first placed in
operation, or (iii) any Sale and Leaseback Transaction between the Company and a Restricted
Subsidiary or between Restricted Subsidiaries provided that the lessor shall be the Company or a
Wholly Owned Restricted Subsidiary.

          Section 4.03. Exempted Debt

          Notwithstanding the restrictions on Mortgages and on Sale and Leaseback Transactions provided
in Sections 4.01 and 4.02, the Company and its Restricted Subsidiaries may create or assume
Mortgages, and renew, extend or replace such Mortgages, or enter into Sale and Leaseback
Transactions, provided that, after giving effect thereto, the aggregate principal amount of all
Indebtedness secured by Mortgages, which would otherwise be subject to Sections 4.01 and 4.02
(other than any Indebtedness secured by Mortgages permitted by clauses (i) through (v) of Section
4.01), together with all Attributable Indebtedness with respect to Sale and Leaseback Transactions,
which would otherwise be subject to these restrictions (other than with respect to Sale and
Leaseback Transactions that are permitted as provided under Section 4.02) does not exceed 15% of
Consolidated Net Tangible Assets.

          Section 4.04. Limitations Upon Permitting Restricted Subsidiaries to become Non-Restricted
Subsidiaries and Non-Restricted Subsidiaries to become Restricted Subsidiaries

          (a) The Company shall not permit any Restricted Subsidiary to be designated as or otherwise to
become a Non-Restricted Subsidiary unless immediately after such Restricted Subsidiary becomes a
Non-Restricted Subsidiary, it will not own, directly or indirectly, any capital stock of any other
Restricted Subsidiary or any Mortgage on property of any other Restricted Subsidiary.

          (b) The Company shall not permit any Non-Restricted Subsidiary that has previously been a
Restricted Subsidiary to be designated as a Restricted Subsidiary unless such Non-Restricted
Subsidiary shall not, at any time after it ceased to be a Restricted Subsidiary have participated
in any sale and leaseback transaction involving any Operating Property or Operating Asset owned by
such Subsidiary, the Company or any Restricted Subsidiary (other than in a transaction permitted
under Section 4.02 for such Subsidiary if it had been a Restricted Subsidiary at the time), unless
the Operating Property or Operating Asset involved in such transaction shall no longer be leased by
the Company or any Restricted Subsidiary or such Subsidiary or shall be owned by the Company or a
Wholly Owned Restricted Subsidiary.

          (c) Promptly after the adoption of any Board Resolution designating a Restricted Subsidiary as
a Non-Restricted Subsidiary or a Non-Restricted Subsidiary as a Restricted Subsidiary, or the
making of an election by duly authorized Officers of the Company to effect any such designation, a
copy of such Board Resolution or a written statement as to such designation signed by such Officers
shall be filed with the Trustee, together with an Officers’

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Certificate stating that the provisions of this Section 4.04 have been complied with in
connection with such designation, and, in case of the designation of a Restricted Subsidiary as a
Non-Restricted Subsidiary, setting forth the name of each other Subsidiary (if any) that has become
a Non-Restricted Subsidiary as a result of such designation.

ARTICLE 5

MISCELLANEOUS

          Section 5.01. Trust Indenture Act Controls.

          If any provision of this Second Supplemental Indenture limits, qualifies or conflicts with
another provision which is required to be included in this Second Supplemental Indenture by the
TIA, the required provision shall control. If any provision of this Second Supplemental Indenture
modifies or excludes any provision of the TIA which may be so modified or excluded, the latter
provision shall be deemed to apply to this Second Supplemental Indenture as so modified or to be
excluded, as the case may be.

          Section 5.02. New York Law to Govern.

          The Second Supplemental Indenture and the Notes shall be governed by and construed in
accordance with the laws of the State of New York.

          Section 5.03. Counterparts.

          This Second 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.

          Section 5.04. Severability. If any provision of this Second Supplemental Indenture or the
Notes shall be held to be illegal or unenforceable under applicable law, then the remaining
provisions hereof shall be construed as though such invalid, illegal or unenforceable provision
were not contained therein.

          Section 5.05. Ratification.

          The Base Indenture, as supplemented and amended by the First Supplemental Indenture dated as
of April 7, 2007 and this Second Supplemental Indenture, is in all respects ratified and confirmed.
The Indenture shall be read, taken and construed as one and the same instrument. All provisions
included in this Second Supplemental Indenture supersede any conflicting provisions included in the
Base Indenture unless not permitted by law. The Trustee accepts the trusts created by the
Indenture, and agrees to perform the same upon the terms and conditions of the Indenture.

          Section 5.06. Effectiveness.

          The provisions of this Second Supplemental Indenture shall become effective as of the date
hereof.

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          Section 5.07. Trustee Makes No Representation.

          The recitals contained herein 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 Second Supplemental Indenture. All rights, protections,
privileges, indemnities and benefits granted or afforded to the Trustee under the Indenture shall
be deemed incorporated herein by this reference and shall be deemed applicable to all actions
taken, suffered or omitted by the Trustee in each of its capacities hereunder, and each agent,
custodian and other Person employed to act under this Second Supplemental Indenture.

[Remainder of page intentionally left blank.]

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

	 	 	 	 	 
	 	The TJX Companies, Inc.

 	 
	 	By:  	/s/ Mary B. Reynolds
 	 
	 	 	Name:  	Mary B. Reynolds 	 
	 	 	Title:  	Senior Vice President — Finance

Treasurer 	 
	 

	 	 	 	 	 
	Attest:	 	 
	 
	 	 	 	 
	By:

	 	/s/ Ann McCauley
 

Name: Ann McCauley
	 	 
	 

	 	Title: Executive Vice President,	 	 
	 

	 	          General Counsel and Secretary	 	 

Signature Page to Second Supplemental Indenture

 

 

	 	 	 	 	 
	 	U.S. Bank National Association

 	 
	 	By:  	/s/ Karen R. Beard
 	 
	 	 	Name:  	Karen R. Beard 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Second Supplemental Indenture

 

 

EXHIBIT A

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY (AS DEFINED IN THE INDENTURE) OR A NOMINEE THEREOF. THIS
GLOBAL SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF ANY PERSON OTHER THAN SUCH
DEPOSITARY OR ITS NOMINEE ONLY IN LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS GLOBAL SECURITY
MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT 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 INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE TJX COMPANIES, INC.

4.200% Note due 2015

			
	 	 	 
	No. 1
	 	Principal Amount
	CUSIP No. 872540AN9
	 	$400,000,000

          The TJX Companies, Inc., a Delaware corporation (hereinafter called the “Company”, which term
includes any successor Person under the Indenture referred to below), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of FOUR HUNDRED MILLION
U.S. Dollars (U.S. $400,000,000) on August 15, 2015 and to pay interest thereon from July 23, 2009
or from the most recent Interest Payment Date to which interest has been paid or duly provided for,
semi-annually on February 15 and August 15 in each year (each an “Interest Payment Date”),
beginning February 15, 2010 at the rate of 4.200% per annum, until the principal hereof is paid or
duly made available for 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 Regular Record Date for such interest, which shall be the February 1 or August 1 (whether or
not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such
interest which is payable, but is not punctually paid or duly provided for, on any Interest Payment
Date shall forthwith cease to be payable to the Holder hereof on the relevant Regular Record Date
by virtue of having been

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such Holder, and may 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 whereof shall be given to Holders of the
Notes not less than 10 days prior to such Special Record Date, or may be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities exchange on which the
Notes may be listed, and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture.

          Payment of the principal of (and premium, if any) and the interest on this Note shall be made
at the designated office of the Trustee (as defined below) at U.S. Bank National Association, 100
Wall Street, 16th Floor, New York, New York, 10005, in such currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts; provided, however, for so long as the Notes are represented in global form
by one or more Global Securities, all payments of principal (and premium, if any) and interest
shall be made by wire transfer of immediately available funds to the Depositary or its nominee, as
the case may be, as the registered owner of the Global Security representing such Notes. In the
event that definitive Notes shall have been issued, all payments of principal (and premium, if any)
and interest shall be made by wire transfer of immediately available funds to the accounts of the
registered Holders thereof; provided, that the Company may at its option pay interest by
check to the registered address of each Holder of a definitive Note.

          This Note is one of the duly authorized series of Securities of the Company, designated as the
Company’s “4.200% Notes due 2015”, initially limited to an aggregate principal amount of
$400,000,000, all issued or to be issued under and pursuant to an Indenture (the “Base
Indenture”), dated as of April 2, 2009, between the Company and U.S. Bank National Association, as
Trustee (hereinafter referred to as the “Trustee”), as supplemented by the Second Supplemental
Indenture thereto, dated as of July 23, 2009 (the “Second Supplemental Indenture”, and together
with the Base Indenture, the “Indenture”). Reference is hereby made to the Indenture for a
description of the respective rights, limitation of rights, obligations, duties and immunities
thereunder of the Trustee, the Company and the Holders of the Notes.

          The Company may redeem the Notes as a whole or in part, at the Company’s option at any time,
at a Redemption Price equal to the greater of: (i) 100% of the principal amount of the Notes to be
redeemed; and (ii) the sum of the present values of the remaining scheduled payments of principal
and interest thereon (exclusive of interest accrued and unpaid to the date of redemption)
discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of
twelve 30-day months) at the Treasury Rate (as defined below), plus 30 basis points, plus in each
case accrued and unpaid interest thereon to, but not including, the date of redemption. Further,
installments of interest on the Notes to be redeemed that are due and payable on the Interest
Payment Dates falling on or prior to a Redemption Date shall be payable on the Interest Payment
Date to the registered Holders as of the close of business on the relevant Regular Record Date.

          For purposes of the optional redemption provisions of this Note, the following terms shall be
applicable:

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          “Comparable Treasury Issue” means the United States Treasury security or securities selected
by an Independent Investment Banker as having an actual or interpolated maturity comparable to the
remaining term of the Notes 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 a comparable maturity to the remaining term of such Notes.

          “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 such Reference Treasury Dealer Quotations, or (B) if the Company obtains fewer than four
such Reference Treasury Dealer Quotations, the average of all such quotations.

          “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the
Company.

          “Reference Treasury Dealer” means each of Banc of America Securities LLC, Deutsche Bank
Securities Inc., J.P. Morgan Securities Inc., RBS Securities Inc. or their affiliates that are
primary U.S. Government securities dealers and one other primary U.S. Government securities dealer
in the City of New York selected by the Company, and their respective successors; provided,
however, that if any of the foregoing or their affiliates shall cease to be a primary U.S.
Government securities dealer in The City of New York, the Company shall substitute therefor another
such primary U.S. Government securities dealer.

          “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Company, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Company by such Reference Treasury Dealer at 3:30 p.m. New York time on
the third Business Day preceding such Redemption Date.

          “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the
semiannual equivalent yield to maturity or interpolated maturity (on a day count basis) of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption
Date.

          Notice of any redemption shall be mailed at least 30 days but not more than 60 days before the
Redemption Date to each Holder of Notes to be redeemed; provided that notice of redemption may be
mailed more than 60 days prior to a Redemption Date if the notice is issued in connection with a
defeasance of the Notes or a satisfaction and discharge of Notes.

          If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected
by the Trustee by lot or any other such method as the Trustee deems to be fair and appropriate.

          Unless the Company defaults in payment of the Redemption Price, on and after the Redemption
Date, interest shall cease to accrue on the Notes or portions thereof called for redemption.

3

 

          If a Change of Control Triggering Event (as defined below) occurs with respect to the Notes,
unless the Company has exercised its option to redeem the Notes as described above, the Company
shall make an offer (a “Change of Control Offer”) to each Holder of the Notes to repurchase all or
any part (equal to any integral multiple of $1,000, such that any remaining portion held be such
Holder is at least $2,000) of that Holder’s Notes on the terms set forth herein. In a Change of
Control Offer, the Company shall offer payment in cash equal to 101% of the aggregate principal
amount of Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to
the date of repurchase (a “Change of Control Payment”).

          Within 30 days following any Change of Control Triggering Event or, at the Company’s option,
prior to any Change of Control (as defined below), but after public announcement of the transaction
that constitutes or may constitute the Change of Control, a notice shall be mailed to Holders of
the Notes, describing the transaction that constitutes or may constitute the Change of Control
Triggering Event and offering to repurchase the Notes on the date specified in the applicable
notice, which date shall be no earlier than 30 days and no later than 60 days from the date such
notice is mailed (a “Change of Control Payment Date”). The notice shall, if mailed prior to the
date of consummation of the Change of Control, state that the Change of Control Offer is
conditioned on the Change of Control Triggering Event occurring on or prior to the applicable
Change of Control Payment Date; provided, that the expiration of the Change of Control Offer prior
to consummation of such Change of Control will not relieve the Company of its obligation herein if
such Change of Control subsequently occurs.

          On each Change of Control Payment Date, the Company shall, to the extent lawful:

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

	 
	 	(ii)	 	deposit with the Paying Agent an amount equal to the Change
of Control Payment in respect of all Notes or portions of Notes
properly tendered; and

	 
	 	(iii)	 	        deliver or cause to be delivered to the Trustee the Notes
properly accepted, together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being repurchased.

          The Company shall not be required to make a Change of Control Offer upon the occurrence of a
Change of Control Triggering Event if a third party makes such an offer in the manner, at the times
and otherwise in compliance with the requirements for an offer made by the Company and the third
party purchases all Notes properly tendered and not withdrawn under its offer. In addition, the
Company shall not repurchase any Notes if there has occurred and is continuing on the Change of
Control Payment Date an Event of Default under the Indenture, other than a default in the payment
of the Change of Control Payment.

          The Company shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), and any other securities laws and regulations thereunder,
to the extent those laws and regulations are applicable in

4

 

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 the
Change of Control Offer provisions of the Notes, the Company shall comply with those securities
laws and regulations and shall not be deemed to have breached its obligations under the Change of
Control Offer provisions of the Notes by virtue of any such conflict and compliance.

          Installments of interest that are due and payable on Notes to be repurchased on a Change of
Control Payment Date between a Regular Record Date and an Interest Payment Date shall be payable on
the Change of Control Payment Date to the registered Holders as of the close of business on the
relevant Regular Record Date according to this Note and the Indenture.

          For purposes of the Change of Control Offer provisions of the Notes, the following terms shall
be applicable:

          “Change of Control” means the occurrence of any of the following:

	 	(1)	 	the direct or indirect sale, lease, transfer, conveyance or
other disposition (other than by way of merger or consolidation), in one or
more series of related transactions, of all or substantially all of the
Company’s assets and the assets of its Subsidiaries, taken as a whole, to any
person, other than the Company or one of its Subsidiaries;
	 
	 	(2)	 	the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any person
(other than the Company or one of its Wholly Owned Subsidiaries) becomes the
beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act),
directly or indirectly, of more than 50% of the Company’s outstanding Voting
Stock or other Voting Stock into which the Company’s Voting Stock is
reclassified, consolidated, exchanged or changed, measured by voting power
rather than number of shares;
	 
	 	(3)	 	the first day on which a majority of the members of the
Company’s Board of Directors are not Continuing Directors; or
	 
	 	(4)	 	the adoption of a plan relating to the Company’s liquidation or
dissolution.

          The term “person,” as used in this definition, has the meaning given thereto in Section
13(d)(3) of the Exchange Act.

          “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Rating Event.

          “Continuing Directors” means, as of any date of determination, any members of the Company’s
Board of Directors who (1) were members of the Company’s Board of Directors on the date the Notes
were issued; or (2) were nominated for election, elected or appointed to the Company’s Board of
Directors with the approval of a majority of the Continuing Directors who were members of the
Company’s Board of Directors at the time of such nomination, election or appointment (either by a
specific vote or by approval of the Company’s proxy statement in

5

 

which such member was named as a nominee for election as a director, without objection to such
nomination).

          “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, and the equivalent investment grade credit rating from
any replacement Rating Agency or Rating Agencies selected by the Company.

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

          “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, selected by the Company as a
replacement agency for Moody’s or S&P, or both of them, as the case may be.

          “Rating Event” means the rating on the Notes is lowered by both Rating Agencies and the Notes
are rated below an Investment Grade Rating by both Rating Agencies, in any case on any day during
the period (which period shall be extended so long as the rating of the Notes is under publicly
announced consideration for a possible downgrade by any of the Rating Agencies) commencing upon the
first public notice of the occurrence of a Change of Control or the Company’s intention to effect a
Change of Control and ending 60 days following the consummation of the Change of Control; provided
that a Rating Event otherwise arising by virtue of a particular reduction in rating shall not be
deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed
a Rating Event for purposes of the definition of Change of Control Triggering Event hereunder) if
any of the Rating Agencies making the reduction in rating to which this definition would otherwise
apply does not announce or publicly confirm or inform the Trustee in writing at 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 shall have occurred at the time of the Rating Event).

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

          “Voting Stock” means, with respect to any specified “person” (as that term is used in Section
13(d)(3) of the Exchange Act) as of any date, the capital stock of such person that is at the time
entitled to vote generally in the election of the board of directors of such person.

          The Notes are not subject to any sinking fund.

          If an Event of Default with respect to the 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.

          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

6

 

rights of the Holders of the Securities of each series to be affected under the Indenture at
any time by the Company and the Trustee with the consent of the Holders of not less than a majority
in aggregate principal amount of the Securities at the time Outstanding of each series affected
thereby. The Indenture also contains provisions permitting the Holders of specified percentages in
aggregate principal amount of the Securities of any series at the time Outstanding, on behalf of
the Holders of all Securities of such series, 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.

          No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the right of the Holder of this Note, which is absolute and unconditional, to
receive payment of the principal of and, subject to certain qualifications in the Indenture,
interest on this Note at the times herein and in the Indenture prescribed and to institute suit for
the enforcement of any such payment unless the Holder of this Note shall have consented to the
impairment of such right.

          As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered in the Security Register, upon surrender of this Note for
registration of transfer at the office or agency of the Company in any place where the principal of
(and premium, if any) and interest on this Note are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or by his attorney duly authorized in writing, and thereupon one or
more new Notes of this series and of any authorized denominations and of a like aggregate principal
amount and tenor, shall be issued to the designated transferee or transferees.

          The Notes are issuable only in registered form without coupons in denominations of $2,000 and
integral multiples of $1,000 in excess thereof. Subject to certain limitations therein set forth
in the Indenture and in this Note, the Notes are exchangeable for a like aggregate principal amount
of Notes of this series in different authorized denominations, as requested by the Holders
surrendering the same.

          No service charge shall be made for any such registration of transfer or for exchange of this
Note, but the Company or the Trustee may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any registration of transfer or
exchange of a Note, other than in certain cases provided in the Indenture.

          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 all purposes, whether or not this Note be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

7

 

          The Indenture contains provisions whereby (i) the Company may be discharged from its
obligations with respect to the Notes (subject to certain exceptions) or (ii) the Company may be
released from its obligations under specified covenants and agreements in the Indenture, in each
case if the Company irrevocably deposits with the Trustee money or U.S. Government Obligations
sufficient to pay and discharge the entire indebtedness on all Notes of this series, and satisfies
certain other conditions, all as more fully provided in the Indenture.

          This Note shall be governed by and construed in accordance with the laws of the State of New
York.

          All terms used in this Note which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

          Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee under the Indenture by the manual signature of one of its authorized signatories, this Note
shall not be entitled to any benefits under the Indenture or be valid or obligatory for any
purpose.

8

 

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

Dated: July 23, 2009

	 	 	 	 	 	 	 	 	 
	 	 	 	 	                           THE TJX COMPANIES, INC.
	 
	 	 	 	 	 	 	 	 
	Attest:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	Name:
	 

	 	Title:
	 	 	 	 	 	Title:

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

          This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

Dated: July 23, 2009

	 	 	 	 	 
	 	U.S. BANK NATIONAL

ASSOCIATION, as

Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

4.200% Note due 2015

Signature Page

 

 

ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations.

	 	 	 	 	 
	TEN COM

	 	-
	 	as tenants
in common
	TEN ENT

	 	-
	 	as tenants by
the entireties
	JT TEN

	 	-
	 	as joint tenants
with right of
survivorship and
not as tenants in
common

			
	UNIF GIFT MIN ACT	 	 - . . . Custodian

(Cust) (Minor)

Under Uniform Gifts to

Minor Act

 

(State)

Additional abbreviations may also be used though not in the above list.

                                        

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

 

(Please insert Assignee’s legal name)

 

(Please insert Social Security or other identifying number of Assignee)

 

 

(Please print or typewrite name and address including postal zip code of Assignee)

the within Note of THE TJX COMPANIES, INC. and does hereby irrevocably constitute
and appoint                                         attorney to transfer the said Note on the
books of the Company, with full power of substitution in the premises.

Dated:                                        

	 	 	 	 	 
	Your Signature:

	 	 

	 	 
	 

	 	 

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

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

4.200% Note due 2015exv10w1

Exhibit 10.1

AMENDED AND RESTATED

EXECUTIVE EMPLOYMENT AGREEMENT

BETWEEN

LODGIAN, INC.

AND

DANIEL E. ELLIS

JULY 20, 2009

 

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) by and between Lodgian, Inc. (the
“Company”), and Daniel E. Ellis (“You” or “Your”)(collectively, the “Parties”), is entered into and
effective as of the 11th day of June, 2009 (the “Effective
Date”).1

     WHEREAS, You are currently employed as Senior Vice President, General Counsel, and Secretary
of the Company pursuant to the Executive Employment Agreement between You and the Company dated
March 29, 2007 (the “Prior Agreement”);

     WHEREAS, the Company desires that You be appointed President and Chief Executive Officer of
the Company and maintain your title as General Counsel and You desire to accept said employment;

     WHEREAS, you were elected to the Board of Directors on June 11, 2009;

     WHEREAS, Your position is a position of trust and responsibility with access to Confidential
Information, Trade Secrets, and information concerning employees and customers of the Company;

     WHEREAS, the Trade Secrets and Confidential Information, and the relationship between the
Company and each of its employees and customers are valuable assets of the Company and may not be
used for any purpose other than the Company’s Business;

     WHEREAS, the Company has agreed to continue to employ You in exchange for Your compliance with
the terms of this Agreement; and

     WHEREAS, the Company and You desire to express the terms and conditions of Your continued
employment in this Amended and Restated Agreement.

     NOW, THEREFORE, the Parties agree:

1.
Termination of Prior Agreement. On the Effective Date of this Agreement, the Parties
hereby terminate the Prior Agreement. The Parties acknowledge and agree that the termination of
the Prior Agreement does not and shall not result in the vesting, acceleration, or triggering of
any employment benefit in Your favor, including, but not limited to, any post-termination payment
obligation or any separation payment or benefit, or any other right which You may have

 

			
	1	 	Unless otherwise indicated, all capitalized terms used in this
Agreement are defined in the “Definitions” section attached as Exhibit A.
Exhibit A is incorporated by reference and is included in the definition of
“Agreement.”

1

 

as a shareholder, officer, or employee, or under any agreement or understanding between You and the
Company, including, but not limited to, the Prior Agreement.

2. Employment and Duties

     (a) Position. The Company shall employ You as President, Chief Executive Officer and
General Counsel.

     (b) Duties. You agree to perform all duties that are consistent with Your position
and that may otherwise be assigned to You by the Board of Directors from time to time.

     (c) Reporting. You shall report directly to the Board of Directors of the Company.

     (d) Devotion of Time. You agree to (i) devote all necessary working time required of
Your position, (ii) devote Your best efforts, skill, and energies to promote and advance the
business and/or interests of the Company, and (iii) fully perform Your obligations under this
Agreement. During Your employment, You shall not render services to any other entity, regardless
of whether You receive compensation, if such services shall impede Your ability to perform Your
duties for the Company. You may, however, (A) engage in community, charitable, and educational
activities, (B) manage Your personal investments, and (C) with the prior written consent of the
Company, serve on corporate boards or committees, provided that such activities do not conflict or
interfere with the performance of Your obligations under this Agreement or conflict with the
interests of the Company.

     (e) Company Policies. You agree to comply with the policies and procedures of the
Company as may be adopted and changed from time to time, including those described in the Company’s
employee handbook. If this Agreement conflicts with such policies or procedures, this Agreement
will control.

3. Term. This Agreement is for an indefinite term. This Agreement may be terminated only
pursuant to Section 5 below. The period during which You are employed by the Company shall be
referred to as the Employment Period.

4. Compensation.

     In addition to the 15,000 restricted stock grants the Company awarded You pursuant to a
document dated June 11, 2009 (with 50% of the shares vesting on the first anniversary of the date
of the grant and the balance vesting on the second anniversary), the Company will provide you with
the following compensation and benefits:

     (a) Base Salary. During the Employment Period, the Company will pay You an annual
minimum base salary (“Base Salary”) of Four Hundred Thousand Dollars ($400,000.00), minus
applicable withholdings, in accordance with the Company’s normal payroll practices. Your Base
Salary may be increased at the Company’s discretion based upon Your performance and the Company’s
performance. Your Base Salary and other terms of your Employment Agreement will be reviewed on or
about January 1, 2010 and on an annual basis thereafter.

2

 

     (b) Incentive Compensation. During the Employment Period, You will be a participant
eligible to receive additional incentive compensation if Your performance and the Company’s
performance meet certain criteria established as part of the Lodgian, Inc. Executive Incentive Plan
(the “Incentive Plan”) and as amended from time to time by the Company’s Compensation Committee.
The Incentive Plan is incorporated by reference. Compensation provided to You pursuant to the
Incentive Plan will be paid pursuant to the terms of the Incentive Plan, and will be subject to all
applicable withholdings.

     (c) Benefits Plans. During the Employment Period, You will be eligible to participate
in all benefit plans in effect for executives and employees of the Company, subject to the terms
and conditions of such plans.

     (d) Vacation. During the Employment Period, You are entitled to four (4) weeks paid
vacation each year. In addition, You shall be entitled to personal and/or sick days in accordance
with the Company policies.

5. Termination. This Agreement may be terminated at any time by any of the following
events:

     (a) Mutual written agreement between You and the Company at any time;

     (b) Your death;

     (c) Your disability which renders You unable to perform the essential functions of Your job
even with reasonable accommodation, as determined by the Company in its sole discretion;

     (d) For Cause. “For Cause” shall mean a termination by the Company because of any one of the
following events:

     (i) Your willful refusal to follow the lawful directive of the Board of Directors or
Your material failure to perform Your duties (other than by reason of disability, as defined
in Section 5(c) above), in either case, only after You have been given written notice by the
Board of Directors detailing the directives You have refused to follow or the duties You
have failed to perform and been given at least 30 days to cure;

     (ii) Your material and willful failure to comply with Company policies as applied to
Company employees, only after You have been given written notice by the Board of Directors
detailing the policies with which You have failed to comply and been given at least 30 days
to cure;

     (iii) Your engaging in any of the following conduct:

     (1) an act of fraud or dishonesty that materially harms the Company or its
affiliates,

3

 

     (2) a felony or any violation of any federal or state securities law or Your
being judicially enjoined from violating any federal or state securities law or
being determined to have violated any such law;

     (3) gross negligence in connection with any property or activity of the Company
and its subsidiaries and affiliates, and successors;

     (4) repeated and intemperate use of alcohol or illegal drugs after written
notice from the Board of Directors;

     (5) material breach of any of Your obligations under this Agreement (other than
by reason of physical or mental illness, injury, or condition), but only after You
have been given written notice of the breach by the Board of Directors and been
given at least thirty (30) days to cure;

     (6) becoming barred or prohibited by the SEC from holding Your position with
the Company; or

     (iv) Your resignation for other than Good Reason as defined in Exhibit A;

     (e) Your resignation for Good Reason; or

     (f) Without Cause. “Without Cause” shall mean any termination of Your employment by the
Company which is not defined in sub-sections (a)-(e) above.

6. Company’s Post-Termination Obligations.

     (a) If this Agreement terminates for the reasons set forth in Sections 5(a) or 5(d) above, and
Section 7 below does not apply, then the Company will pay You all accrued but unpaid Base Salary
through the termination date. The Company shall have no other obligations to You, including under
this Agreement, the Incentive Plan, any Company policy, or otherwise; however, You shall continue
to be bound by Section 9 and all other post-termination obligations to which You are subject,
including, but not limited to, the obligations contained in this Agreement. You shall not be
entitled to any accelerated vesting or lapse of vesting restrictions with respect to any award(s)
granted pursuant to the 2002 Lodgian, Inc. Stock Incentive Plan or any other similar plan.

     (b) If this Agreement terminates for any reason set forth in Sections 5(b), 5(c), 5(e), or
5(f) above, and Section 7 below does not apply, then the Company will pay You all accrued but
unpaid Base Salary through the termination date. In addition, upon Your “separation from service”
(within the meaning of Internal Revenue Code (“Code”) § 409A(a)(2)(A)(i)), the Company shall: (i)
pay You (or Your estate if applicable), within thirty (30) days of Your termination date a lump sum
payment equal to Your then current annual Base Salary; (ii) reimburse Your and Your eligible
dependents’ COBRA premiums under the Company’s major medical group health plan on a monthly basis
for a period of twelve (12) months; (iii) pay You (or Your estate if applicable), within thirty
(30) days of Your termination date, a lump sum payment of One Hundred Fifty Thousand Six Dollars
($150,006.00); and (iv) notwithstanding

4

 

anything to the contrary in any applicable documents evidencing a grant of an award under the
Lodgian, Inc. 2002 Stock Incentive Plan or any similar plan, accelerate the vesting of any such
awards granted to You by the Company (the “Award(s)”) so that any such Award(s) comprised of
options to purchase Company stock shall be immediately exercisable in full, and so that all vesting
restrictions upon any such Award(s) comprised of restricted stock shall lapse (collectively, the
payments and benefits set forth in the preceding sub-clauses (i) — (iv) to be referred to as the
“Separation Benefits”). The Company shall have no other obligations to You, including under this
Agreement, any Company policy, or otherwise. The Separation Benefits shall constitute full
satisfaction of the Company’s obligations under this Agreement. The Company’s obligation to
provide the Separation Benefits shall be subject to Section 8 below, and conditioned upon Your
satisfaction of the following conditions (the “Separation Benefits Conditions”):

     (i) Execution and non-revocation of a Separation & Release Agreement in a form prepared
by the Company, which includes, but is not limited to, Your releasing the Company from any
and all liability and claims of any kind; and

     (ii) Your compliance with the restrictive covenants (Section 9(d)) and all of Your
post-termination obligations, including, but not limited, the obligations contained in this
Agreement.

     If You do not execute an effective Separation & Release Agreement as set forth above,
the Company will not be obligated to provide any Separation Benefits to You under this
Section 6(b). The Company’s obligation to provide the Separation Benefits set forth in this
Section 6(b) shall terminate immediately upon any breach by You of any post-termination
obligations to which You are subject.

7. Change in Control.

     (a) Change In Control Separation Benefits. 

     (i) If, within sixty (60) days before or three hundred sixty five (365) days after a
Change in Control, this Agreement terminates for the reasons set forth in Sections 5(e) or
5(f), then the Company will pay You all accrued but unpaid Base Salary through the
termination date. In addition, upon Your “separation from service” (within the meaning of
Code § 409A(a)(2)(A)(i)), the Company shall: (i) pay You a lump sum payment equal to two (2)
times Your then current annual Base Salary, to be paid within thirty (30) days after the
date of termination; (ii) pay You a lump sum payment of Three Hundred Thousand Twelve
Dollars ($300,012.00), to be paid within thirty (30) days after the date of termination;
(iii) reimburse Your and your eligible dependents’ COBRA premiums under the Company’s major
medical group health plan on a monthly basis for the period during which You remain eligible
for COBRA coverage and until You become eligible to participate in any subsequent employer’s
major medical group health plan, up to a maximum of twenty-four (24) months; and (iv)
notwithstanding anything to the contrary in any applicable documents evidencing a grant of
an award under the Lodgian,
Inc. 2002 Stock Incentive Plan or any similar plan, accelerate the vesting of any such
awards granted to You by the Company (the “Award(s)”) so that any such Award(s)

5

 

comprised of
options to purchase Company stock shall be immediately exercisable in full, or so that all
vesting restrictions upon any such Award(s) comprised of restricted stock shall lapse
(collectively, the payments and benefits set forth in the preceding sub-clauses (i) — (iv)
to be referred to as the “Change In Control Separation Benefits”). Your right to receive
the Change In Control Separation Benefits shall be subject to Section 8 below and the
Separation Benefits Conditions set forth in Section 6(b) above. The Change In Control
Separation Benefits to be provided under this Section 7 shall constitute full satisfaction
of the Company’s obligations under this Agreement, any Company policy, or otherwise.

     (b) Golden Parachute Limitation/Gross Up. Upon the closing of any transaction
constituting a Change In Control, the Company shall select an independent tax consultant
(the “ITC”) who shall be a lawyer, certified public accountant, or a compensation
consultant, with expertise in the area of executive compensation tax law. The Company shall
pay all fees and disbursements of the ITC. As soon as possible following the closing of the
transaction constituting a Change In Control and the selection of the ITC, the ITC shall
determine the extent to which the amounts paid or payable or distributed or distributable to
You under this Section 7 that constitute “parachute payments” (as defined in Code §
280G(b)(2)) (the “Parachute Payments”) would be subject to the Code § 4999 excise tax. If
the ITC determines that no Code § 4999 excise tax is payable by You, the ITC shall furnish
You with a written opinion that You have substantial authority not to report any Code § 4999
excise tax due on Your income tax returns. You must provide the ITC with all information
reasonably necessary for the ITC to determine the proper amount of excise tax which should
be paid by You, and must agree to the release of such information by the Company to the ITC;
otherwise, You shall not be entitled to any benefits under this Section 7(c).

     (i) Tax Gross Up. If Your Parachute Payments equal an amount greater than one
hundred ten percent (110%) of three (3) times Your Base Amount (as defined in Code §
280G(b)(3)) (as determined by the ITC), then the Company shall pay You an additional lump
sum cash payment (the “Gross-Up Payment”) in an amount such that, after Your payment of all
taxes (including any Code § 4999 excise tax or any interest or penalties imposed with
respect to such taxes) imposed upon the Gross-Up Payment, You retain from the Gross-Up
Payment an amount equal to the Code § 4999 excise tax imposed upon the Parachute Payments.

     (ii) Golden Parachute Limitation. If Your Parachute Payments equal an amount
less than or equal to one hundred ten percent (110%) of three (3) times Your Base Amount (as
defined in Code § 280G(b)(3)) (as determined by the ITC), then the ITC shall determine the
maximum amount of Parachute Payments that could be paid to You so that no portion of such
maximum amount of Parachute Payments would be
subject to the Code § 4999 excise tax (the “Maximum Payment Amount”), and the Company
shall reduce the Parachute Payments so that they do not exceed the Maximum Payment Amount,
with such reduction first applied with respect to Parachute Payments

6

 

that would be cash
compensation, but otherwise determined by the Company in its sole discretion.

8. Delay In Payments To Comply With Code § 409A. Notwithstanding any provision of this
Agreement to the contrary, if You are a “specified employee” within the meaning of Code
§409A(a)(2)(B)(i), then any payment that is required to be made under Section 6 or Section 7 above
within the first six (6) months following Your “separation from service” (within the meaning of
Code § 409A(a)(2)(A)(i)) shall be paid on the date that is the first business day of the seventh
(7th) month after the date of Your “separation from service” and shall be paid in a single lump sum
payment, provided that You satisfy the Separation Benefits Conditions. The provisions of this
Section are intended to require a delay in a payment under Section 6 or Section 7 above only to the
extent that such a delay is required in order for such payment to comply with Code §
409A(a)(2)(B)(i), and shall not otherwise apply. In addition, immediately prior to Your
“separation from service” (within the meaning of Code §409A(a)(2)(A)(i), the Company shall (i)
establish an irrevocable grantor trust (the “Trust”) that shall have terms designed to be
consistent with those allowed under the model trust set forth in IRS Revenue Procedure 92-64 and
that shall have an independent financial institution as trustee, (ii) contribute to the Trust the
amount of each payment delayed for six (6) months under this Section as of the date such payment
would otherwise be required to be paid absent the provisions of this Section applying to delay such
payment, and (iii) provide the trustee of the Trust with a written direction to (A) hold said
amount in a segregated account for Your benefit and (B) pay from such segregated account all
payments delayed under this Section (with earnings thereon) to You on the first business day of the
seventh (7th) month after the date of Your “separation from service.” Trust assets shall be
invested in the highest-yielding available money market account of the trustee (or, if the trustee
does not have such an account, then the highest-yielding available money market account of Bank of
America), and earnings on amounts contributed to the Trust for purposes of the preceding sentence
shall be determined based on such chosen investment. All expenses of the trustee shall be paid by
the Company and not from the Trust’s assets. The provisions of this Section shall not be required
if You so agree in writing. Upon the trustee’s final payment of the entire corpus of the Trust in
a single lump sum, the Trust shall terminate.

9. Your Post-Termination Obligations.

     (a) Return of Materials. Upon the termination of Your employment for any reason or
upon the Company’s request at any time, You will return to the Company all of the Company’s
property, including, but not limited to, computers, computer equipment, office equipment, mobile
phones, personal digital assistants (PDAs), keys, passcards, calling cards, credit cards,
confidential or proprietary lists (including, but not limited to, customer, supplier, licensor, and
client lists), rolodexes, tapes, software, computer files, marketing and sales materials, and any
other property, record, document or piece of equipment belonging to the Company. You will not (i)
retain any copies of the Company’s property, including any copies existing in electronic form,
which are in Your possession, custody, or control, or (ii) destroy, delete, or alter any Company
property, including, but not limited to, any files stored electronically without the Company’s
prior written consent. The obligations contained in this Section also apply to any property
which belongs to a third party, including, but not limited to, (i) any entity which is affiliated
or related to the Company, or (ii) the Company’s customers, licensors, or suppliers.

7

 

     (b) Set-Off. If You have any outstanding obligations to the Company upon the
termination of Your employment for any reason, You hereby authorize the Company to deduct any
amounts owed to the Company from Your final paycheck and/or any amounts that would otherwise be due
to You, including, but not limited to, under Section 6 or Section 7 above.

     (c) Non-Disparagement. During Your employment and upon the termination of Your
employment with the Company for any reason, You will not make any disparaging or defamatory
statements, whether written or oral, regarding the Company.

     (d) Restrictive Covenants. You acknowledge that the restrictions contained in this
Section 9(d) are reasonable and necessary to protect the legitimate business interests of the
Company, and will not impair or infringe upon Your right to work or earn a living after Your
employment with the Company ends.

     (i) Trade Secrets and Confidential Information. You represent and warrant
that: (i) You are not subject to any legal or contractual duty or agreement that would
prevent or prohibit You from performing the duties contemplated by this Agreement or
otherwise complying with this Agreement, and (ii) You are not in breach of any legal or
contractual duty or agreement, including any agreement concerning trade secrets or
confidential information owned by any other party.

     You agree that You will not: (i) use, disclose, or reverse engineer the Trade Secrets
or the Confidential Information for any purpose other than the Company’s Business, except as
authorized in writing by the Company; (ii) during Your employment with the Company, use,
disclose, or reverse engineer (a) any confidential information or trade secrets of any
former employer or third party, or (b) any works of authorship developed in whole or in part
by You during any former employment or for any other party, unless authorized in writing by
the former employer or third party; or (iii) upon Your resignation or termination (a) retain
Trade Secrets or Confidential Information, including any copies existing in any form
(including electronic form), which are in Your possession or control, or (b) destroy,
delete, or alter the Trade Secrets or Confidential Information without the Company’s written
consent.

     The obligations under this sub-section shall: (i) with regard to the Trade Secrets,
remain in effect as long as the information constitutes a trade secret under applicable law,
and (ii) with regard to the Confidential Information, remain in effect during the Restricted
Period. The confidentiality, property, and proprietary rights protections available in this
Agreement are in addition to, and not exclusive of, any and all other rights to which the
Company is entitled under federal and state law, including, but not limited to, rights
provided under copyright laws, trade secret and confidential information laws, and laws
concerning fiduciary duties.

     (ii) Non-Solicitation of Customers. During the Restricted Period, You shall
not, directly or indirectly, solicit any Customer of the Company for the purpose of selling
or providing any products or services competitive with the Business. The restrictions set
forth in this sub-section apply only to Customers with whom You had Contact during the term
of Your employment. Nothing in this sub-section shall be construed to prohibit You

8

 

from
soliciting any Customer of the Company for the purpose of selling or providing any products
or services competitive with the Business: (i) which You never sold or provided while
employed by the Company; (ii) to a Customer that explicitly severed its business
relationship with the Company unless You, directly or indirectly, caused or encouraged the
Customer to sever the relationship; or (iii) which products or services the Company no
longer offers.

     (iii) Non-Solicitation of Prospective Customers. During the Restricted Period,
You shall not, directly or indirectly, solicit any Prospective Customer of the Company for
the purpose of selling or providing any products or services competitive with the Business.
The restrictions set forth in this sub-section apply only to Prospective Customers with whom
You had Contact during the last year of Your employment with the Company (or during Your
employment if employed less than a year). Nothing in this sub-section shall be construed to
prohibit You from soliciting any Prospective Customer of the Company for the purpose of
selling or providing any products or services competitive with the Business which the
Company no longer offers.

     (iv) Non-Recruit of Employees. During the Restricted Period, You shall not,
directly or indirectly, solicit, recruit, or induce any Employee to (i) terminate his or her
employment relationship with the Company, or (ii) work for any other person or entity
engaged in the Business. The restrictions set forth in this sub-section shall apply only to
Employees (a) with whom You had Material Interaction, or (b) You, directly or indirectly,
supervised.

     (v) Non-Disclosure of Customer or Prospective Customer Information. During the
Restricted Period, You shall not, except as authorized by the Company, divulge or make
accessible to any person or entity (i) the names of Customers or Prospective Customers, or
(ii) any information contained in a Customer’s or Prospective Customer’s account.

(e) Post-Employment Disclosure. During the Restricted Period, You shall provide a
copy of this Agreement to persons and/or entities for whom You work or consult as an owner,
partner, joint venturer, employee or independent contractor.

10. Injunctive Relief. You agree that if You breach any portion of Section 9 of this
Agreement: (i) the Company would suffer irreparable harm; (ii) it would be difficult to determine
damages, and money damages alone would be an inadequate remedy for the injuries suffered by the
Company, and (iii) if the Company seeks injunctive relief to enforce this Agreement, You will waive
and will not (a) assert any defense that the Company has an adequate remedy at law with respect to
the breach, (b) require that the Company submit proof of the economic value of any Trade Secret or
Confidential Information, or (c) require the Company to post a bond or any
other security. Nothing contained in this Agreement shall limit the Company’s right to any other
remedies at law or in equity.

11. Independent Enforcement. The covenants set forth in Section 9 of this Agreement shall
be construed as agreements independent of (i) any other agreements, or (ii) any other provision in
this Agreement, and the existence of any claim or cause of action by You against the

9

 

Company,
whether predicated on this Agreement or otherwise, regardless of who was at fault and regardless of
any claims that either You or the Company may have against the other, shall not constitute a
defense to the enforcement by the Company of the covenants set forth in Section 9 of this
Agreement. The Company shall not be barred from enforcing the restrictive covenants set forth in
Section 9 of this Agreement by reason of any breach of (i) any other part of this Agreement, or
(ii) any other agreement with You.

12. Release. You release and discharge the Company from any claim or liability, whether
known or unknown, arising out of any event, act or omission occurring on or before the day You sign
this Agreement, including, but not limited to, claims arising out of Your employment, claims
arising out of or relating to the Prior Agreement or the termination of the Prior Agreement, claims
arising by virtue of Your status as a shareholder of Company, claims for breach of contract, tort,
negligent hiring, negligent training, negligent supervision, negligent retention, employment
discrimination, retaliation, or harassment, claims arising out of or relating to equity or other
ownership interest in Company, as well as any other statutory or common law claims, at law or in
equity, recognized under any federal, state, or local law. You also release any claims for unpaid
back pay, sick pay, vacation pay, expenses, bonuses, commissions, attorneys’ fees, or any other
compensation.

13. Severability. The provisions of this Agreement are severable. If any provision is
determined to be invalid, illegal, or unenforceable, in whole or in part, the remaining provisions
and any partially enforceable provisions shall remain in full force and effect.

14. Attorneys’ Fees. In the event of litigation relating to this Agreement, the prevailing
party shall be entitled to recover attorneys’ fees and costs of litigation in addition to all other
remedies available at law or in equity.

15. Waiver. The Company’s failure to enforce any provision of this Agreement shall not act
as a waiver of that or any other provision. The Company’s waiver of any breach of this Agreement
shall not act as a waiver of any other breach.

16. Entire Agreement. This Agreement, including Exhibit A, and the Incentive Plan which
are incorporated by reference, constitutes the entire agreement between the Parties concerning the
subject matter of this Agreement. This Agreement supersedes any prior communications, agreements or
understandings, whether oral or written, between the Parties relating to the subject matter of this
Agreement. Other than terms of this Agreement, no other representation, promise or agreement has
been made with You to cause You to sign this Agreement.

17. Amendments. As a condition of employment and a material term under this Agreement, You
agree that, at any time during Your employment, You shall sign an amendment to this Agreement which
would modify the Restrictive Covenants in Section 9 of this Agreement (the
“Amendment”) based on changes to Your duties or changes in the law regarding restrictive covenants.
You agree that You shall not be entitled to any additional consideration to execute the Amendment.
You agree that Your refusal to sign any such Amendment shall constitute a material breach of this
Agreement. This Agreement may not otherwise be amended or modified except in writing signed by
both Parties.

10

 

     The Parties further understand and acknowledge that modifications to this Agreement may be
appropriate after final regulations are issued under Code § 409A. The Parties agree to negotiate
in good faith regarding any such modifications that may be required in order to comply with Code §
409A and avoid additional and accelerated taxation to You pursuant to Code § 409A.

18. Successors and Assigns. This Agreement shall be assignable to, and shall inure to the
benefit of, the Company’s successors and assigns, including, without limitation, successors through
merger, name change, consolidation, or sale of a majority of the Company’s stock or assets, and
shall be binding upon You. You shall not have the right to assign Your rights or obligations under
this Agreement. The covenants contained in Section 9 of this Agreement shall survive cessation of
Your employment with the Company, regardless of who causes the cessation or the reason for
cessation.

19. Governing Law. Except as set forth in Section 23 below, the laws of the State of
Georgia shall govern this Agreement. If Georgia’s conflict of law rules would apply another
state’s laws, the Parties agree that Georgia law shall still govern.

20. No Strict Construction. If there is a dispute about the language of this Agreement,
the fact that one Party drafted the Agreement shall not be used in its interpretation.

21. Notice. Whenever any notice is required, it shall be given in writing addressed as
follows:

	 	 	 
	     To Company:

	 	Lodgian, Inc.
	 

	 	3445 Peachtree Rd., Suite 700
	 

	 	Atlanta, Georgia 30326
	 

	 	Attention: Chairman of the Board of Directors
	 
	 	 
	     To Executive:

	 	Daniel E. Ellis

     Notice shall be deemed given and effective three (3) days after the deposit in the U.S. mail
of a writing addressed as above and sent first class mail, certified, return receipt requested, or
when actually received. Either Party may change the address to which notices shall be delivered or
mailed by notifying the other party of such change in accordance with this Section.

22. Consent to Jurisdiction and Venue. Except as set forth in Section 23 below, You agree
that any claim arising out of or relating to this Agreement shall be (i) brought in the Superior
Court of Fulton County, Georgia, or (ii) brought in or removed to the United States District Court
for the Northern District of Georgia, Atlanta Division. You consent to the personal jurisdiction
of the courts identified above. You waive (i) any objection to jurisdiction or venue,
or (ii) any defense claiming lack of jurisdiction or improper venue, in any action brought in such
courts.

23. Arbitration. Except as provided below in this Section, all disputes arising out of
Your employment or the cessation of Your employment, including, but not limited to, claims arising
under or relating to this Agreement, claims for breach of contract, tort, employment

11

 

discrimination, retaliation, or harassment, as well as any other statutory or common law claims, at
law or in equity, recognized under any federal, state, or local law shall be exclusively resolved
by final and binding arbitration under the Federal Arbitration Act, 9 U.S.C. § 1. Such claims
shall be settled by final and binding arbitration administered by the American Arbitration
Association in accordance with its National Rules for the Resolution of Employment Disputes, and
judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction
thereof. The Company will pay all filing fees and arbitrator costs associated with such
arbitration.

     This arbitration provision shall not apply to any disputes or claims relating to or arising
out of unemployment, workers compensation, and/or the restrictive covenants set forth in Section 9
of this Agreement, including, but not limited to, any claims for equitable relief relating to such
restrictive covenants. Any claims relating to or arising out of Section 9 of this Agreement shall
be governed by Sections 19 and 22 above.

	 	 	 	 	 
	     Acknowledged and agreed:

	 	SJB
	 	DEE
	 

	 	Lodgian, Inc.
	 	Employee

24. AFFIRMATION. YOU ACKNOWLEDGE THAT YOU HAVE CAREFULLY READ THIS AGREEMENT, YOU KNOW AND
UNDERSTAND ITS TERMS AND CONDITIONS, AND YOU HAVE HAD THE OPPORTUNITY TO ASK THE COMPANY ANY
QUESTIONS YOU MAY HAVE HAD PRIOR TO SIGNING THIS AGREEMENT.

In Witness Whereof, the Parties hereto have executed this Agreement as of the Effective Date.

	 	 	 	 	 	 	 	 
	LODGIAN, INC.	 	DANIEL E. ELLIS
	 
	 	 	 	 	 	 
	By:	 	s/ Stewart J. Brown	 	s/ Daniel E. Ellis
	 	 	 	 	 
	 

	 	Its:
	 	Chairman of the Board of Directors
	 	Date: July 13, 2009
	 

	 	Date:
	 	July 20, 2009	 	 

12

 

EXHIBIT A

DEFINITIONS

	A.	 	“Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule
12b-2 promulgated under the Securities Exchange Act of 1934, as amended.
	 
	B.	 	“Beneficial Owner” shall have the meaning ascribed to that term in Rule 13d-3 promulgated
under the Securities Exchange Act of 1934, as amended.
	 
	C.	 	“Business” shall mean the business of owning and operating hotels including, but not limited
to, full-service hotels which have food and beverage operations and meeting spaces.
	 
	D.	 	“Change in Control” means the first of the following to occur after the date of this
Agreement:

     (i) when any Person (other than the Company, any Subsidiary of the Company, any employee
benefit plan of the Company or of any Subsidiary of the Company, or any person or entity organized,
appointed or established by the Company or any Subsidiary of the Company for or pursuant to the
terms of any such plan), alone or together with its Affiliates and Associates (collectively, an
“Acquiring Person”), shall become the Beneficial Owner of 40 percent or more of the then
outstanding shares of Common Stock or the Combined Voting Power of the Company;

     (ii) when, during any period of two consecutive years, individuals who at the beginning of
such period constitute the Board of Directors of the Company (the “Board”), and any new director
(other than a director who is a representative or nominee of an Acquiring Person) whose election by
the Board or nomination for election by the Company’s shareholders was approved by a vote of at
least a majority of the directors then still in office who either were directors at the beginning
of the period or whose election or nomination for election was previously so approved
(collectively, the “Continuing Directors”), cease for any reason to constitute a majority of the
Board due to contested events;

     (iii) the consummation of a merger or consolidation of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity or any Parent of such surviving
entity) at least a majority of the Combined Voting Power of the Company, such surviving entity, or
the Parent of such surviving entity outstanding immediately after such merger or consolidation;

     (iv) the consummation of a plan of reorganization (other than a reorganization under the
United States Bankruptcy Code) or complete liquidation of the Company or an agreement for the sale
or disposition by the Company of all or substantially all of the Company’s assets, other than a
sale of all or substantially all of the Company’s assets to a transferee, the majority of whose
voting securities are held by the Company; or

13

 

     (v) when the shareholders of the Company approve an agreement for the sale or disposition by
the Company of all or substantially all of the Company’s assets in a transaction or series of
transactions to an entity that is not owned, directly or indirectly, by the Company’s common stock
shareholders in substantially the same proportions as the owners of the Company’s common stock
before such transaction or series of transactions.

	E.	 	“Combined Voting Power” means the combined voting power of the Company’s or other relevant
entity’s then outstanding voting securities.
	 
	F.	 	“Common Stock “ means the Common Stock, par value $.01 per share, of the Company.
	 
	G.	 	“Confidential Information” means (a) information of the Company, to the extent not considered
a Trade Secret under applicable law, that (i) relates to the business of the Company, (ii)
possesses an element of value to the Company, (iii) is not generally known to the Company’s
competitors, and (iv) would damage the Company if disclosed, and (b) information of any third
party provided to the Company which the Company is obligated to treat as confidential,
including, but not limited to, information provided to the Company by its licensors,
suppliers, or customers. Confidential Information includes, but is not limited to, (i) future
business plans, (ii) the composition, description, schematic or design of products, future
products or equipment of the Company or any third party, (iii) communication systems, audio
systems, system designs and related documentation, (iv) advertising or marketing plans, (v)
information regarding independent contractors, employees, clients, licensors, suppliers,
customers, or any third party, including, but not limited to, customer lists compiled by the
Company, and customer information compiled by the Company, and (vi) information concerning the
Company’s or a third party’s financial structure and methods and procedures of operation.
Confidential Information shall not include any information that (i) is or becomes generally
available to the public other than as a result of an unauthorized disclosure, (ii) has been
independently developed and disclosed by others without violating this Agreement or the legal
rights of any party, or (iii) otherwise enters the public domain through lawful means.
	 
	H.	 	“Contact” means any interaction between You and a Customer or Prospective Customer which
takes place in an effort to establish, maintain, and/or further a business relationship on
behalf of the Company.
	 
	I.	 	“Customer” means any person or entity to whom the Company has sold its products or services.
	 
	J.	 	“Employee” means any person who (i) is employed by the Company at the time Your employment
with the Company ends, or (ii) was employed by the Company during the last year of Your
employment with the Company (or during Your employment if employed less than a year).
	 
	K.	 	“Good Reason” shall exist if (i) the Company, without Your written consent, (A) takes any
action which results in the material reduction of Your then current duties or
responsibilities, (B) reduces the benefits to which You are entitled on the Effective Date,
unless a similar reduction is made for other executive employees, (C) commits a material
breach of this

14

 

	 	 	Agreement, or (D) requires You to relocate more than fifty (50) miles from the location of the
Company’s home office on the Effective Date; (ii) You provide written notice to the Company of
such action and provide the Company with thirty (30) days to remedy such action (the “Cure
Period”), (iii) the Company fails to remedy such action within the Cure Period, and (iv) You
resign within ten (10) days of the expiration of the Cure Period. Good Reason shall not include
any isolated, insubstantial or inadvertent action that (i) is not taken in bad faith, and (ii)
is remedied by the Company within the Cure Period.
	 
	L.	 	“Material Interaction” means any interaction between You and an Employee which relates or
related, directly or indirectly, to the performance of Your duties for the Company.
	 
	M.	 	“Parent” means any corporation which is a “parent corporation” within the meaning of Section
424(e) of the Internal Revenue Code of 1986, as amended, with respect to the relevant entity.
	 
	N.	 	“Person” means any person, entity or “group” within the meaning of Section 13(d)(3) or
Section 14(d)(2) of the Exchange Act.
	 
	O.	 	“Prospective Customer” means any person or entity to whom the Company has solicited to sell
its products or services.
	 
	P.	 	“Restricted Period” means the time period during Your employment with the Company, and for
two (2) years after Your employment with the Company ends.
	 
	Q.	 	“Subsidiary” means any corporation which is a “subsidiary corporation” within the meaning of
Section 424(f) of the Internal Revenue Code of 1986, as amended, with respect to the Company.
	 
	R.	 	“Trade Secrets” means information of the Company, and its licensors, suppliers, clients, and
customers, without regard to form, including, but not limited to, technical or nontechnical
data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a
drawing, a process, financial data, financial plans, product plans, a list of actual
customers, clients, licensors, or suppliers, or a list of potential customers, clients,
licensors, or suppliers which is not commonly known by or available to the public and which
information (i) derives economic value, actual or potential, from not being generally known
to, and not being readily ascertainable by proper means by, other persons who can obtain
economic value from its disclosure or use, and (ii) is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy.

15

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