Document:

EX-10.2

 Exhibit 10.2 

SECOND AMENDMENT TO SECOND LIEN CREDIT AGREEMENT 

This SECOND AMENDMENT TO SECOND LIEN CREDIT AGREEMENT (this “Amendment”) is dated as of May 14, 2014 and
effective as of March 31, 2014, and entered into by and among AFFIRMATIVE INSURANCE HOLDINGS, INC., a Delaware corporation (the “Borrower”), the lenders listed on the signature pages hereto, JCF AFFM DEBT HOLDINGS L.P., as
Administrative Agent (in such capacity, the “Administrative Agent”) and as Collateral Agent (in such capacity, the “Collateral Agent”), and for purposes of Section 6 hereof, the other Loan Parties listed
on the signature pages hereto. Capitalized terms used but not defined herein having the meaning given them in the Credit Agreement (as hereinafter defined). 

Recitals 
 Whereas,
the Borrower, the Lenders from time to time party thereto, the Agents and the other parties thereto have entered into that certain Second Lien Credit Agreement dated as of September 30, 2013, as amended by that certain First Amendment to Second
Lien Credit Agreement dated as of December 31, 2013 (as amended, amended and restated, extended, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”); 

Whereas, the Borrower has requested an amendment to the Credit Agreement, pursuant to and in accordance with
Section 9.08(a) of the Credit Agreement; and 
 Whereas, the Required Lenders and the Agents are willing to agree to the
amendment requested by the Borrower, on the terms and conditions set forth in this Amendment; 
 Now Therefore, in consideration of
the premises and the mutual agreements set forth herein, the Borrower, Required Lenders and Agents agree as follows: 
 1. AMENDMENTS TO
CREDIT AGREEMENT. Subject to the conditions and upon the terms set forth in this Amendment and in reliance on the representations and warranties of the Borrower set forth in this Amendment, the Credit Agreement is hereby amended as follows: 

1.1. Amendment to Section 1.01. Section 1.01 of the Credit Agreement shall be amended as follows: 

(a) The following definitions shall be added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order: 

“Risk-Based Capital Ratio Compliance Amount” shall mean, for any period, any amounts credited during such period by any
Non-Regulated Subsidiary against any amounts owed to it by any Regulated Insurance Subsidiary for the purpose of supporting such Regulated Insurance Subsidiary’s compliance with Section 6.13 of this Agreement. 

“Second Amendment” shall mean that certain Second Amendment to Second Lien Credit Agreement, dated as of May 14, 2014 and
effective as of March 31, 2014, by and among the Borrower, the Loan Parties, the Required Lenders, and JCF AFFM DEBT HOLDINGS L.P., as administrative agent and collateral agent. 

“Second Amendment Effective Date” shall have the meaning set forth in Section 4 of the Second Amendment. 

 (b) The following definitions shall be replaced in their entirety with the following: 

“Cash Flow” shall mean, for any relevant 12 month fiscal period, the sum, without duplication, of (i) for the Borrower,
USAgencies and their respective subsidiaries (other than the Regulated Insurance Subsidiaries), Consolidated EBITDA for the relevant period, and (ii) all state and federal income tax expenses incurred by the Regulated Insurance Subsidiaries for
the relevant period; provided that for purposes of calculating Cash Flow for any period (A) the Cash Flow of USAgencies and of any other Acquired Entity acquired by the Borrower or any Subsidiary pursuant to a Permitted Acquisition during such
period shall be included on a pro forma basis for such period (assuming the consummation of such acquisition and the incurrence or assumption of any Indebtedness in connection therewith occurred as of the first day of such period) and (B) the
Cash Flow of any person or line of business sold or otherwise disposed of by the Borrower or any Subsidiary during such period shall be excluded for such period (assuming the consummation of such sale or other disposition and the repayment of any
Indebtedness in connection therewith occurred as of the first day of such period). The preceding formula shall be adjusted on a proportionate basis for any relevant period that is not a fiscal twelve month period. 

“Excess Cash Flow” shall mean, for any relevant twelve (12) month fiscal period, without duplication, Cash Flow, less
(a) the consolidated aggregate amount of all Capital Expenditures for such period, including capital payments for business expenditures and investments, such as capital lease payments, (b) consolidated state and federal income taxes for
such period, (c) Consolidated Interest Expense, (d) ordinary corporate dividends made in accordance with the terms hereof during such period, (e) cash consideration utilized for Permitted Acquisitions during the relevant twelve
(12) month fiscal period and (f) any payments made by any Non-Regulated Subsidiary to any Regulatory Subsidiary pursuant to the Affirmative Intercompany Tax Agreement. The preceding formula shall be adjusted on a proportionate basis for
any relevant period that is not a fiscal twelve (12) month period. 
 “Required Minimum EBITDA” shall mean (a) for
the fiscal quarter ending December 31, 2013 (i) if the Risk-Based Capital Ratio for any Regulated Insurance Subsidiary (determined on an individual basis) is equal to or greater than 375% as of the last day of such fiscal quarter,
$1,600,000 or (ii) if the Risk-Based Capital Ratio for any Regulated Insurance Subsidiary (determined on an individual basis) is less than 375% as of the last day of such fiscal quarter, $2,000,000 and (b) for the fiscal quarter ending
March 31, 2014 and each fiscal quarter thereafter (i) if the Risk-Based Capital Ratio for any Regulated Insurance Subsidiary (determined on an individual basis) is equal to or greater than 375% as of the last day of such fiscal quarter, an
amount equal to the difference of (x) $2,000,000, minus (y) any Risk-Based Capital Ratio Compliance Amount or (ii) if the Risk-Based Capital Ratio for any Regulated Insurance Subsidiary (determined on an individual basis) is
less than 375% as of the last day of such fiscal quarter, an amount equal to the difference of (x) $2,400,000, minus (y) any Risk-Based Capital Ratio Compliance Amount. 

1.2. Amendment to Sections 5.04(a), (b) and (c). Sections 5.04(a), (b) and (c) of the Credit
Agreement shall be amended such that each reference therein to “consolidated balance sheet and related statements of income” shall be deleted and replaced with the following: 

“consolidated (and, with respect to the Regulated Insurance Subsidiaries as a group and their consolidated Subsidiaries, consolidating)
balance sheet and related statements of income” 

  
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 1.3. Amendment to Section 5.04(d). Section 5.04(d) of the
Credit Agreement shall be replaced in its entirety to read as follows: 
 “(d) concurrently with any delivery of financial statements
under paragraph (a) or (b) above, (i) a certificate of the Financial Officer certifying such statements (A) certifying that no Event of Default or Default has occurred or, if such an Event of Default or Default has occurred,
specifying the nature and extent thereof and any corrective action taken or proposed to be taken with respect thereto and (B) setting forth computations in reasonable detail satisfactory to the Administrative Agent demonstrating compliance with
the covenants contained in Sections 6.11, 6.12, 6.13 and 6.14, and, in the case of a certificate delivered with the financial statements required by paragraph (a) above, setting forth the Borrower’s calculation of Excess Cash Flow and
(ii) production monitor reports in a form substantially consistent with the reports included in the “Debt Amendment Background Information” presentation to the Lenders dated March 2014 or such other form reasonably acceptable to the
Administrative Agent;” 
 1.4. Amendment to Section 5.04(n). Section 5.04(n) of the Credit
Agreement shall be replaced in its entirety to read as follows: 
 “(n) within 10 days of delivery of financial statements under
paragraph (a) or (b) above, (i) management’s discussion and analysis of the important operational and financial developments during such fiscal year or fiscal quarter, as applicable, consistent with the Borrower’s historical
practice and (ii) a risk-based capital report in a form substantially consistent with the report included in the “Debt Amendment Background Information” presentation to the Lenders dated March 2014 or such other form reasonably
acceptable to the Administrative Agent.” 
 1.5. Amendment to Section 5. Section 5 of the Credit
Agreement shall be amended to add the following additional Section 5.18: 
 “After the delivery to the Administrative Agent and the
Lenders of the financial statements pursuant to Sections 5.04(a) and (b), the Borrower will promptly conduct a meeting (which shall be telephonic) of the Administrative Agent and the Lenders to discuss the most recently reported financial results
and the financial condition of the Borrower and its Subsidiaries, at which shall be present a senior officer of the Borrower and such other senior officers of the Credit Parties as may be reasonably requested to attend (by telephone) by the
Administrative Agent or the Required Lenders, such request or requests to be made within a reasonable time prior to the scheduled date of such meeting.” 

1.6. Amendment to Section 6.13. Section 6.13 of the Credit Agreement shall be replaced in its entirety
to read as follows: 
 “The Borrower will not permit the Risk-Based Capital Ratio for any Regulated Insurance Subsidiary determined on
an individual basis calculated as of the last day of any fiscal quarter to be less than the ratio set forth opposite such fiscal quarter below: 
  

					
	 Fiscal Quarter Ended
	  	Ratio	 
	 December 31, 2013
	  	 	300	% 
	 June 30, 2014
	  	 	275	% 
	 September 30, 2014
	  	 	350	% 
	 December 31, 2014 and the last day of each fiscal quarter thereafter (if deferred consideration in Retail Sale is
received)
	  	 	300	% 
	 December 31, 2014 and the last day of each fiscal quarter thereafter (if deferred consideration in Retail Sale is not
received)
	  	 	350	%” 

  
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 2. REPRESENTATIONS AND WARRANTIES OF THE BORROWER. In order to induce the Required Lenders
and the Agents to enter into this Amendment, the Borrower represents and warrants to each Lender and the Agents that the following statements are true, correct and complete: 

2.1. Power and Authority. Each of the Loan Parties has all requisite corporate or limited liability company power and authority
to enter into this Amendment and to carry out the transactions contemplated by, and to perform its obligations under or in respect of, the Credit Agreement as amended hereby. 

2.2. Corporate Action. The execution and delivery of this Amendment and the performance of the obligations of each of the Loan
Parties under or in respect of the Credit Agreement as amended hereby have been duly authorized by all necessary corporate or limited liability company action on the part of each of the Loan Parties. 

2.3. No Conflict or Violation or Required Consent or Approval. The execution and delivery of this Amendment and the performance
of the obligations of each of the Loan Parties under or in respect of the Credit Agreement as amended hereby do not and will not conflict with or violate (a) any provision of the certificate or articles of incorporation or other constitutive
documents or by-laws of any Loan Party or any of its Subsidiaries, (b) any provision of any law or any governmental rule or regulation applicable to any Loan Party or any of its Subsidiaries, (c) any order of any Governmental Authority or
arbitrator binding on any Loan Party or any of its Subsidiaries, or (d) any indenture, agreement or instrument to which any Loan Party or any of its Subsidiaries is a party or by which any Loan Party or any of its Subsidiaries, or any property
of any of them, is bound (except where such violation could not reasonably be expected to have a Material Adverse Effect), and do not and will not require any consent or approval of any Person (other than any approval or consent obtained and is in
full force and effect or approvals or consents the failure to obtain could not reasonably be expected to have a Material Adverse Effect or which are not material to the consummation of the transaction contemplated hereby). 

2.4. Execution, Delivery and Enforceability. This Amendment has been duly executed and delivered by each Loan Party which is a
party hereto and is the legal, valid and binding obligation of such Loan Party, enforceable in accordance with its terms, except as enforceability may be affected by applicable bankruptcy, insolvency, and similar proceedings affecting the rights of
creditors generally, and general principles of equity. The Agents’ Liens in all Collateral continue to be valid, binding and enforceable Liens which secure the Obligations to the extent valid, binding and enforceable on the Closing Date, except
as enforceability may be affected by applicable bankruptcy, insolvency and similar proceedings affecting the rights of creditors generally, and general principles of equity. 

  
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 2.5. No Default or Event of Default. After giving effect to this Amendment, no
event has occurred and is continuing or will result from the execution and delivery of this Amendment that would constitute a Default or an Event of Default. 

2.6. No Material Adverse Effect. No event, change or condition has occurred since the Closing Date that has caused, or could
reasonably be expected to cause, a Material Adverse Effect. 
 2.7. Representations and Warranties. Each of the
representations and warranties contained herein and in the Loan Documents is and will be true and correct in all material respects (except that any representation and warranty that is qualified by “materiality” or “Material Adverse
Effect” shall be true and correct in all respects) on and as of the date hereof and as of the effective date of this Amendment, except to the extent that such representations and warranties specifically relate to an earlier date, in which case
they were true, correct and complete in all material respects as of such earlier date (except that any representation and warranty that is qualified by “materiality” or “Material Adverse Effect” shall be true and correct in all
respects as of such earlier date). 
 3. CONDITIONS TO EFFECTIVENESS OF THIS AMENDMENT. This Amendment, and the consents and
approvals contained herein, shall be effective only if and when signed by, and when counterparts hereof shall have been delivered to the Agents (by hand delivery, mail, telecopy or other electronic transmission) by each Loan Party, each Required
Lender, and only if and when each of the following conditions is satisfied or waived: 
 3.1. No Default or Event of Default; Accuracy
of Representations and Warranties. At the time of and immediately after giving effect to this Amendment, no Default or Event of Default shall exist and each of the representations and warranties made by the Loan Parties herein and in or
pursuant to the Loan Documents shall be true and correct in all material respects (except that any representation and warranty that is qualified by “materiality” or “Material Adverse Effect” shall be true and correct in all
respects) as if made on and as of the date on which this Amendment becomes effective (except that any such representation or warranty that is expressly stated as being made only as of a specified earlier date shall be true and correct in all
material respects as of such earlier date (except that any representation and warranty that is qualified by “materiality” or “Material Adverse Effect” shall be true and correct in all respects as of such earlier date)) and the
Administrative Agent shall have received an officer’s certificate from the Borrower confirming the same. 
 3.2. Amendment to
First Lien Credit Agreement. The Administrative Agent shall have received a duly executed copy of an amendment to the First Lien Credit Agreement substantially in the form attached as Exhibit A hereto, making amendments thereto that
correspond to those made herein and otherwise in form and substance reasonably satisfactory to the Administrative Agent. 
 3.3. Fees
and Expenses. The Borrower shall have paid to the Administrative Agent on the Second Amendment Effective Date all reasonable and documented out-of-pocket costs and expenses of the Administrative Agent incurred in connection with this
Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby (in the case of legal fees and expenses, limited to the reasonable fees, charges and disbursements of Debevoise & Plimpton LLP, counsel
for the Administrative Agent); provided that, the Administrative Agent and/or Debevoise & Plimpton LLP shall have provided to the Borrower reasonably detailed supporting backup documentation at least one Business Day prior to the Second
Amendment Effective Date. 
 4. EFFECTIVE DATE. This Amendment shall become effective (the “Second Amendment Effective
Date”) as of March 31, 2014 once the conditions set forth in Section 3 of this Amendment are satisfied or waived. 

  
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 5. EFFECT OF AMENDMENT; RATIFICATION. This Amendment is a Loan Document. From and after
the date on which this Amendment becomes effective, all references in the Loan Documents to the Credit Agreement and other Loan Documents shall mean the Credit Agreement as amended hereby. Except as expressly amended hereby, the Credit Agreement and
the other Loan Documents, including the Liens granted thereunder, shall remain in full force and effect, and all terms and provisions thereof are hereby ratified and confirmed. 

6. MISCELLANEOUS. Each of the Loan Parties confirms that as amended hereby, each of the Loan Documents to which it is a party is in
full force and effect, and that as of the date hereof, none of the Loan Parties has any defenses, setoffs or counterclaims to its Obligations. 

7. APPLICABLE LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. 
 8. NO WAIVER. The
execution, delivery and effectiveness of this Amendment does not constitute a waiver of any Default or Event of Default, amend or modify any provision of any Loan Document except as expressly set forth herein or constitute a course of dealing or any
other basis for altering the Obligations of any Loan Party. 
 9. COMPLETE AGREEMENT. This Amendment sets forth the complete
agreement of the parties in respect of any amendment to any of the provisions of any Loan Document. 
 10. CAPTIONS; COUNTERPARTS.
The catchlines and captions herein are intended solely for convenience of reference and shall not be used to interpret or construe the provisions hereof. This Amendment may be executed by one or more of the parties to this Amendment on any
number of separate counterparts (including by telecopy or other electronic transmission), all of which taken together shall constitute but one and the same instrument. 

[signatures follow; remainder of page intentionally left blank] 

  
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 IN WITNESS WHEREOF, each of the undersigned has duly executed this Second Amendment to
Second Lien Credit Agreement as of the date set forth above. 
  

					
	AFFIRMATIVE INSURANCE HOLDINGS, INC.,
	as Borrower
		
	By:	 	 /s/ Michael J. McClure

		 	Name:	 	Michael J. McClure
		 	Title:	 	CEO
	
	LOAN PARTIES:
	
	AFFIRMATIVE INSURANCE HOLDINGS, INC.
	AFFIRMATIVE MANAGEMENT SERVICES, INC.
	AFFIRMATIVE SERVICES, INC.
	AFFIRMATIVE INSURANCE GROUP, INC.
	AFFIRMATIVE UNDERWRITING SERVICES, INC.
	AFFIRMATIVE INSURANCE SERVICES, INC.
	USAGENCIES, L.L.C.
	USAGENCIES MANAGEMENT SERVICES, INC.
		
	By:	 	 /s/ Michael J. McClure

		 	Name:	 	Michael J. McClure
		 	Title:	 	CEO

 
			
	JCF AFFM DEBT HOLDINGS L.P., as Administrative Agent, as Collateral Agent and Lender
		
	By:	 	JCF AFFM DEBT HOLDINGS GP LTD., its General Partner
		
	By:	 	 /s/ Sally Rocker

		 	Name: Sally Rocker
		 	Title: DirectorEX-10.1

 Exhibit 10.1 

SEVENTH AMENDMENT TO THE 
 FOURTH
AMENDED AND RESTATED AGREEMENT OF 
 LIMITED PARTNERSHIP OF AIMCO PROPERTIES, L.P. 

This SEVENTH AMENDMENT TO THE FOURTH AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF AIMCO PROPERTIES, L.P., dated as of May 13,
2014 (this “Amendment”), is being executed by AIMCO-GP, Inc., a Delaware corporation (the “General Partner”), as the general partner of AIMCO Properties, L.P., a Delaware limited partnership (the “Partnership”),
pursuant to the authority conferred on the General Partner by Section 7.3.C(7) of the Fourth Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of July 29, 1994 and restated as of February 28,
2007, as amended and/or supplemented from time to time (including all the exhibits thereto, the “Agreement”). Capitalized terms used, but not otherwise defined herein, shall have the respective meanings ascribed thereto in the Agreement.

 WHEREAS, pursuant to Section 4.2.A of the Agreement, the General Partner (i) is authorized to cause the Partnership to issue
additional Partnership Preferred Units, for any Partnership purpose, at any time or from time to time, to the Partners or to other Persons, for such consideration and on such terms and conditions as shall be established by the General Partner in its
sole and absolute discretion, and (ii) is authorized to determine the designations, preferences and relative, participating, optional or other special rights, powers and duties of Partnership Preferred Units. 

NOW, THEREFORE, in consideration of the foregoing, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows: 
 (a) The Agreement is hereby amended by the addition of a new exhibit, entitled
“Exhibit Y,” in the form attached hereto, which shall be attached to and made a part of the Agreement. 
 (b) Except as
specifically amended hereby, the terms, covenants, provisions and conditions of the Agreement shall remain unmodified and continue in full force and effect and, except as amended hereby, all of the terms, covenants, provisions and conditions of the
Agreement are hereby ratified and confirmed in all respects. 

 IN WITNESS WHEREOF, this Amendment has been executed as of the date first written above. 

 

			
	GENERAL PARTNER:
	
	AIMCO-GP, INC.
		
	By:	 	 /s/ Ernest M. Freedman

	Name:	 	Ernest M. Freedman
	Title:	 	Executive Vice President and
Chief Financial Officer

 EXHIBIT Y 

PARTNERSHIP UNIT DESIGNATION OF THE 

CLASS A PARTNERSHIP PREFERRED UNITS 

OF AIMCO PROPERTIES, L.P. 
  

	 	1.	Number of Units and Designation. 

 A class of Partnership Preferred Units is
hereby designated as “Class A Partnership Preferred Units,” and the number of Partnership Preferred Units constituting such class shall be five million (5,000,000). 

 

	 	2.	Definitions. 

 For purposes of the Class A Partnership Preferred Units, the
following terms shall have the meanings indicated in this Section 2, and capitalized terms used and not otherwise defined herein shall have the meanings assigned thereto in the Agreement: 

“Agreement” shall mean the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of
July 29, 1994, amended and restated as of February 28, 2007, as amended. 
 “Alternative Form Consideration” shall
have the meaning set forth in the Articles Supplementary for the Class A Preferred Stock. 
 “Class A Partnership Preferred
Unit” means a Partnership Preferred Unit with the designations, preferences and relative, participating, optional or other special rights, powers and duties as are set forth in this Exhibit Y. It is the intention of the General
Partner that each Class A Partnership Preferred Unit shall be substantially the economic equivalent of one share of Class A Preferred Stock. 

“Class A Preferred Stock” means the Class A Cumulative Preferred Stock, par value $.01 per share, of the Previous
General Partner. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, or any successor
statute thereto. Reference to any provision of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor thereto, as interpreted by any applicable regulations or other administrative
pronouncements as in effect from time to time. 
 “Common Stock” shall mean the Class A Common Stock, par value $.01
per share, of the Previous General Partner. 
 “Distribution Payment Date” shall mean any date on which cash dividends are
paid on outstanding shares of the Class A Preferred Stock. 

  
 Y-1 

 “Distribution Record Date” shall have the meaning set forth in Section 3 of
this Exhibit Y. 
 “Junior Partnership Units” shall have the meaning set forth in paragraph (c) of
Section 7 of this Exhibit Y. 
 “Parity Partnership Units” shall have the meaning set forth in paragraph
(b) of Section 7 of this Exhibit Y. 
 “Partnership” shall mean AIMCO Properties, L.P., a Delaware limited
partnership. 
 “Senior Partnership Units” shall have the meaning set forth in paragraph (a) of Section 7 of this
Exhibit Y. 
  

	 	3.	Distributions. 

 On every Distribution Payment Date, the holders of Class A
Partnership Preferred Units shall be entitled to receive distributions payable in cash in an amount per Class A Partnership Preferred Unit equal to the per share dividend payable on the Class A Preferred Stock on such Distribution Payment
Date. Each such distribution shall be payable to the holders of record of the Class A Partnership Preferred Units, as they appear on the records of the Partnership at the close of business on the record date (the “Distribution Record
Date”) for the dividend payable with respect to the Class A Preferred Stock on such Distribution Payment Date. Holders of Class A Partnership Preferred Units shall not be entitled to any distributions on the Class A Partnership
Preferred Units, whether payable in cash, property or stock, except as provided herein. 
  

	 	4.	Liquidation Preference. 

 (a) In the event of any liquidation, dissolution or
winding up of the Partnership, whether voluntary or involuntary, before any payment or distribution of the Partnership (whether capital, surplus or otherwise) shall be made to or set apart for the holders of Junior Partnership Units, the holders of
Class A Partnership Preferred Units shall be entitled to receive Twenty-Five Dollars ($25.00) per Class A Partnership Preferred Unit (the “Liquidation Preference”), plus an amount per Class A Partnership Preferred Unit equal
to all dividends (whether or not declared or earned) accumulated, accrued and unpaid on one share of Class A Preferred Stock to the date of final distribution to such holders; but such holders shall not be entitled to any further payment. Until
the holders of the Class A Partnership Preferred Units have been paid the Liquidation Preference in full, plus an amount equal to all dividends (whether or not declared or earned) accumulated, accrued and unpaid on the Class A Preferred
Stock to the date of final distribution to such holders, no payment shall be made to any holder of Junior Partnership Units upon the liquidation, dissolution or winding up of the Partnership. If, upon any liquidation, dissolution or winding up of
the Partnership, the assets of the Partnership, or proceeds thereof, distributable among the holders of Class A Partnership Preferred Units shall be insufficient to pay in full the preferential amount aforesaid and liquidating payments on any
Parity Partnership Units, then such assets, or 

  
 Y-2 

 
the proceeds thereof, shall be distributed among the holders of Class A Partnership Preferred Units and any such Parity Partnership Units ratably in the same proportion as the respective
amounts that would be payable on such Class A Partnership Preferred Units and any such other Parity Partnership Units if all amounts payable thereon were paid in full. For the purposes of this Section 4, (i) a consolidation or merger
of the Partnership with one or more partnerships, or (ii) a sale or transfer of all or substantially all of the Partnership’s assets shall not be deemed to be a liquidation, dissolution or winding up, voluntary or involuntary, of the
Partnership. 
 (b) Upon any liquidation, dissolution or winding up of the Partnership, after payment shall have been made in full to the
holders of Class A Partnership Preferred Units and any Parity Partnership Units, as provided in this Section 4, any other series or class or classes of Junior Partnership Units shall, subject to the respective terms thereof, be entitled to
receive any and all assets remaining to be paid or distributed, and the holders of the Class A Partnership Preferred Units and any Parity Partnership Units shall not be entitled to share therein. 

 

	 	5.	Redemption. 

 Class A Partnership Preferred Units shall be redeemable by the
Partnership as follows: 
 (a) At any time that the Previous General Partner exercises its right to redeem all or any of the shares of
Class A Preferred Stock, the General Partner shall cause the Partnership to redeem an equal number of Class A Partnership Preferred Units, at a redemption price per Class A Partnership Preferred Unit payable in cash and equal to the
same price per share paid by the Previous General Partner to redeem the Class A Preferred Stock. In the event of a redemption of Class A Partnership Preferred Units, if the redemption date occurs after a dividend record date for the
Class A Preferred Stock and on or prior to the related Distribution Payment Date, the distribution payable on such Distribution Payment Date in respect of such Class A Partnership Preferred Units called for redemption shall be payable on
such Distribution Payment Date to the holders of record of such Class A Partnership Preferred Units on the applicable dividend record date, and shall not be payable as part of the redemption price for such Class A Partnership Preferred
Units. 
 (b) If the Partnership shall redeem Class A Partnership Preferred Units pursuant to paragraph (a) of this
Section 5, from and after the redemption date (unless the Partnership shall fail to make available the amount of cash necessary to effect such redemption), (i) except for payment of the redemption price, the Partnership shall not make any
further distributions on the Class A Partnership Preferred Units so called for redemption, (ii) said units shall no longer be deemed to be outstanding, and (iii) all rights of the holders thereof as holders of Class A Partnership
Preferred Units of the Partnership shall cease except the rights to receive the cash payable upon such redemption, without interest thereon; provided, however, that if the redemption date occurs after dividend record date for the Class A
Preferred Stock and on or prior to the related Distribution Payment Date, the full distribution payable on such Distribution Payment Date in respect 

  
 Y-3 

 
of such Class A Partnership Preferred Units called for redemption shall be payable on such Distribution Payment Date to the holders of record of such Class A Partnership Preferred Units
on the applicable dividend record date notwithstanding the prior redemption of such Class A Partnership Preferred Units. No interest shall accrue for the benefit of the holders of the Class A Partnership Preferred Units to be redeemed on
any cash set aside by the Partnership. 
 (c) If fewer than all the outstanding Class A Partnership Preferred Units are to be redeemed,
units to be redeemed shall be selected by the Partnership from outstanding Class A Partnership Preferred Units not previously called for redemption by any method determined by the General Partner in its discretion. Upon any such redemption, the
General Partner shall amend Exhibit A to the Agreement as appropriate to reflect such redemption. 
  

	 	6.	Status of Reacquired Units. 

 All Class A Partnership Preferred Units which
shall have been issued and reacquired in any manner by the Partnership shall be deemed cancelled. 
  

	 	7.	Conversion 

 Class A Partnership Preferred Units shall be convertible as
follows: 
 (a) Upon any conversion of shares of Class A Preferred Stock into shares of Common Stock, a number of Class A
Partnership Preferred Units equal to the number of shares of Class A Preferred Stock so converted shall be automatically converted into a number of Partnership Common Units equal to the number of shares of Common Stock issuable with respect to
the shares of Class A Preferred Stock so converted. Upon any conversion of shares of Class A Preferred Stock into Alternative Form Consideration, a number of Class A Partnership Preferred Units equal to the number of shares of
Class A Preferred Stock so converted shall be automatically converted into the same type and amount of Alternative Form Consideration as is deliverable with respect to the shares of Class A Preferred Stock so converted. Each conversion of
Class A Partnership Preferred Units shall be deemed to have been effected at the same date and time as the corresponding conversion of Class A Preferred Stock. 

(b) Holders of Class A Partnership Preferred Units at the close of business on a Distribution Record Date shall be entitled to receive
the distribution payable on such units on the corresponding Distribution Payment Date notwithstanding the conversion thereof after such Distribution Record Date and on or prior to such Distribution Payment Date. 

(c) If, upon any conversion of Class A Preferred Stock, the Previous General Partner is required to make a cash payment in lieu of
issuing any fractional shares of Common Stock, then, in connection with the corresponding conversion of Class A Partnership Preferred Units, the Partnership shall make an equal cash payment to the holder of such converted Class A
Partnership Preferred Units. 

  
 Y-4 

 (d) The Partnership will pay any and all documentary stamp or similar issue or transfer taxes
payable in respect of (i) the issue or delivery of Partnership Common Units or other securities or property on conversion of Class A Partnership Preferred Units pursuant hereto, and (ii) the issue or delivery of Common Stock or other
securities or property on conversion of Class A Preferred Stock pursuant to the terms hereof. 
  

	 	8.	Ranking. 

 Any class or series of Partnership Units of the Partnership shall be
deemed to rank: 
 (a) prior or senior to the Class A Partnership Preferred Units, as to the payment of distributions and as to
distributions of assets upon liquidation, dissolution or winding up, if the holders of such class or series shall be entitled to the receipt of distributions and of amounts distributable upon liquidation, dissolution or winding up, as the case may
be, in preference or priority to the holders of Class A Partnership Preferred Units (“Senior Partnership Units”); 
 (b) on a
parity with the Class A Partnership Preferred Units, as to the payment of distributions and as to distribution of assets upon liquidation, dissolution or winding up, whether or not the distribution rates, distribution payment dates or
redemption or liquidation prices per unit or other denomination thereof be different from those of the Class A Partnership Preferred Units if (i) such class or series of Partnership Units shall be Class Z Partnership Preferred Units,
Series A Community Reinvestment Act Perpetual Partnership Preferred Units, Class One Partnership Preferred Units, Class Two Partnership Preferred Units, Class Three Partnership Preferred Units, Class Four Partnership Preferred Units, Class
Six Partnership Preferred Units or Class Seven Partnership Preferred Units, or (ii) the holders of such class or series of Partnership Units and the Class A Partnership Preferred Units shall be entitled to the receipt of distributions and
of amounts distributable upon liquidation, dissolution or winding up in proportion to their respective amounts of accrued and unpaid distributions per unit or other denomination or liquidation preferences, without preference or priority one over the
other (the Partnership Units referred to in clauses (i) and (ii) of this paragraph being hereinafter referred to, collectively, as “Parity Partnership Units”); and 

(c) junior to the Class A Partnership Preferred Units, as to the payment of distributions and as to the distribution of assets upon
liquidation, dissolution or winding up, if (i) such class or series of Partnership Units shall be Partnership Common Units or Class I High Performance Partnership Units, or (ii) the holders of Class A Partnership Preferred Units shall
be entitled to receipt of distributions or of amounts distributable upon liquidation, dissolution or winding up, as the case may be, in preference or priority to the holders of such class or series of Partnership Units (the Partnership Units
referred to in clauses (i) and (ii) of this paragraph being hereinafter referred to, collectively, as “Junior Partnership Units”). 

  
 Y-5 

	 	9.	Special Allocations. 

 (a) Gross income and, if necessary, gain shall be allocated
to the holders of Class A Partnership Preferred Units for any Fiscal Year (and, if necessary, subsequent Fiscal Years) to the extent that the holders of Class A Partnership Preferred Units receive a distribution on any Class A
Partnership Preferred Units (other than an amount included in any redemption pursuant to Section 5 hereof) with respect to such Fiscal Year. 

(b) If any Class A Partnership Preferred Units are redeemed pursuant to Section 5 hereof, for the Fiscal Year that includes such
redemption (and, if necessary, for subsequent Fiscal Years) (a) gross income and gain (in such relative proportions as the General Partner in its discretion shall determine) shall be allocated to the holders of Class A Partnership
Preferred Units to the extent that the redemption amounts paid or payable with respect to the Class A Partnership Preferred Units so redeemed exceeds the aggregate Capital Contributions (net of liabilities assumed or taken subject to by the
Partnership) per Class A Partnership Preferred Unit allocable to the Class A Partnership Preferred Units so redeemed and (b) deductions and losses (in such relative proportions as the General Partner in its discretion shall determine)
shall be allocated to the holders of Class A Partnership Preferred Units to the extent that the aggregate Capital Contributions (net of liabilities assumed or taken subject to by the Partnership) per Class A Partnership Preferred Unit
allocable to the Class A Partnership Preferred Units so redeemed exceeds the redemption amount paid or payable with respect to the Class A Partnership Preferred Units so redeemed. 

 

	 	10.	Restrictions on Ownership. 

 The Class A Partnership Preferred Units shall be
owned and held solely by the General Partner or the Special Limited Partner. 
  

	 	11.	General. 

 (a) The ownership of Class A Partnership Preferred Units
may (but need not, in the sole and absolute discretion of the General Partner) be evidenced by one or more certificates. The General Partner shall amend Exhibit A to the Agreement from time to time to the extent necessary to reflect
accurately the issuance of, and subsequent conversion, redemption, or any other event having an effect on the ownership of, Class A Partnership Preferred Units. 

(b) The rights of the General Partner and the Special Limited Partner, in their capacity as holders of the Class A Partnership Preferred
Units, are in addition to and not in limitation of any other rights or authority of the General Partner or the Special Limited Partner, respectively, in any other capacity under the Agreement or applicable law. In addition, nothing contained herein
shall be deemed to limit or otherwise restrict the authority of the General Partner or the Special Limited Partner under the Agreement, other than in their capacity as holders of the Class A Partnership Preferred Units. 

  
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