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HOLLY ENERGY PARTNERS, L.P.
LONG-TERM INCENTIVE PLAN 
NOTICE OF GRANT OF PHANTOM UNITS
(Non-Employee Director Award)
Pursuant to the terms and conditions of the Holly Energy Partners, L.P. Long-Term Incentive Plan (the “Plan”), and the associated Phantom Unit Agreement (Non-Employee Director Award) which has been made separately available to you (your “Agreement”), you are hereby issued Units subject to certain restrictions thereon and under the conditions set forth in this Notice of Grant of Phantom Units (the “Notice”), in the Agreement, and in the Plan (the “Phantom Units”).  Capitalized terms used but not defined herein shall have the meanings set forth in the Plan or your Agreement.  You may obtain a copy of the Plan and a copy of the prospectus related to the Units by following the instructions attached as Appendix A.  Additionally, you may request a copy of the Plan or the prospectus by contacting Cara Whitesel at Cara.Whitesel@hollyfrontier.com or 214.954.6530.
Grantee:        ____________
Date of Grant:        ____________ __, 2020 (the “Date of Grant”)
Number of Units:    __________
Vesting Schedule:    The restrictions on all of the Phantom Units granted pursuant to the Agreement will expire and the Phantom Units will become transferable and non-forfeitable on December 1, 2021; provided, that you remain a member of the Board continuously from the Date of Grant through such date.  
Except as otherwise provided in Section 6 of your Agreement, all Phantom Units that have not become vested and non-forfeitable pursuant to this Notice will be null and void and forfeited to Holly Logistic Services, L.L.C. (the “Company”) in the event you cease to be a member of the Board.  
Vesting of the Units will be included in your income in an amount equal to the closing price of the Units on the date of vesting (or if such day is not a business day, the last preceding business day).  By receipt of the Phantom Units you acknowledge and agree that (a) you are not relying upon any determination by the Company, its affiliates, Holly Energy Partners, L.P. or any of their respective employees, directors, officers, attorneys or agents (collectively, the “Company Parties”) of the Fair Market Value of the Units on the Date of Grant, (b) you are not relying upon any written or oral statement or representation of the Company Parties regarding the tax effects associated with this Notice and the Agreement and your receipt, holding and vesting of the Phantom Units, (c) in accepting the Phantom Units you are relying on your own judgment and the judgment of the professionals of your choice with whom you have consulted and (d) a copy of the Agreement and the Plan has been made available to you. In addition, you consent to 
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receive documents from the Company and any plan administrator by means of electronic delivery, provided that such delivery complies with applicable law, including, without limitation, documents pursuant or relating to any equity award granted to you under the Plan or any other current or future equity or other benefit plan of the Company (the “Company’s Equity Plans”). This consent shall be effective for the entire time that you are a participant in a Company Equity Plan. By accepting the Phantom Units you release, acquit and forever discharge the Company Parties from all actions, causes of actions, suits, debts, obligations, liabilities, claims, damages, losses, costs and expenses of any nature whatsoever, known or unknown, on account of, arising out of, or in any way related to the tax effects associated with this Notice and the Agreement and your receipt, holding and vesting of the Phantom Units.
Holly Logistic Services, L.L.C.

    
Michael C. Jennings, Chief Executive Officer

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Appendix A

    A-1a1001choiceextensionconf

                           Deutsche Bank AG New York Branch                                        60 Wall Street                                  New York, New York 10005                                                                  Dated as of August 12, 2020   Choice Hotels International, Inc.  1 Choice Hotels Circle  Suite 400  Rockville, Maryland 20850  Attention:  Scott Oaksmith, Senior Vice President, Finance                 Re:  $600,000,000 Amended and Restated Senior Unsecured Credit Facility                                Choice Hotels International, Inc.                                    Extension Confirmation   Ladies and Gentlemen:         Reference is made to (i) the Amended and Restated Senior Unsecured Credit Agreement dated as of  August 20, 2018 (as amended, amended and restated, supplemented or otherwise modified to date, the “Credit  Agreement”; the terms defined therein, unless otherwise defined herein, being used herein as therein defined),  by and among Choice Hotels International, Inc., a Delaware corporation (the “Borrower”), the Lenders,  Deutsche Bank AG New York Branch, as Administrative Agent, Deutsche Bank Securities Inc., JPMorgan  Chase Bank, N.A. and Wells Fargo Securities, LLC, as the Joint Lead Arrangers and the Joint Book Running  Managers, JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association, as Co-Syndication Agents  and Wells Fargo Bank, National Association as Swingline Lender and (ii) that certain letter dated as of July 6,  2020 from the Borrower to the Administrative Agent requesting that each Lender (a) extend such Lender’s  current Maturity Date by one year (from August 20, 2024 to August 20, 2025) and (b) consent to the  Administrative Agent accepting the letter as effective notice under Section 2.16(a) of the Credit Agreement  notwithstanding the expiration of the time period for delivery set forth therein (the “Extension Request”).          The Administrative Agent hereby confirms (a) the Administrative Agent’s receipt from the Borrower  of an extension fee, paid to the Administrative Agent for the ratable account of each undersigned Extending  Lender (as defined in the Credit Agreement), in an amount equal to 5 bps multiplied by each such Extending  Lender’s Commitment as of the date hereof (the “Extension Fee”), (b) that each Extending Lender has consented  to the Extension Request, subject to such Extending Lender’s receipt of the Extension Fee and (c) the extension  of the Maturity Date of the Facility with respect to each Extending Lender, with the New Maturity Date being  August 20, 2025 (or such earlier date on which the Commitments may terminate in accordance with clauses (b),  (c) or (d) of the definition of “Maturity Date” in the Credit Agreement)        The Administrative Agent, the Borrower and each undersigned Extending Lender acknowledge that in  accordance with Sections 2.11(c) and 2.28(c) of the Credit Agreement, the Loans and Commitments of the  Lenders that are not Extending Lenders may be repaid and terminated on their applicable Maturity Date.  The  Commitment of each Lender as of the date hereof is set forth in Exhibit A attached hereto.           The Borrower hereby confirms that the Credit Agreement and each of the other Loan Documents (as so  extended) are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed.         This letter may be executed in any number of counterparts and by different parties hereto in separate  counterparts, each of which when so executed shall be deemed to be an original and all of which taken together  shall constitute but one and the same agreement.  Delivery of an executed counterpart of a signature page to this  letter by facsimile or other electronic means shall be as effective as delivery of a manually executed counterpart  of this letter.    Americas/2014725721.5                                     Choice Hotels – Extension Confirmation Letter

 

DocuSign Envelope ID: EB89016A-B308-45AA-A4FE-19D25642C877                                                      Yours truly,                                                     DEUTSCHE BANK AG NEW YORK BRANCH, as                                                    Administrative Agent                                                     By:                                                       Name: Darrell Gustafson                                                       Title: Managing Director                                                     By:                                                       Name:                                                       Title:              ACKNOWLEDGED AND AGREED:             CHOICE HOTELS INTERNATIONAL, INC.,            a Delaware corporation, as Borrower             By:               Name:  Maria Uy              Title:  Vice President, Treasurer             Americas/2014725721                    Signature Page     Choice Hotels – Extension Confirmation Letter 

 

DocuSign Envelope ID: 0F5073E7-CF98-42D3-A9AF-3101F78F0082                                                     Yours truly,                                                     DEUTSCHE BANK AG NEW YORK BRANCH, as                                                    Administrative Agent                                                     By:  _______________________________                                                        Name:                                                        Title:                                                     By:  _______________________________                                                        Name: James Rolison                                                        Title: Managing Director              ACKNOWLEDGED AND AGREED:             CHOICE HOTELS INTERNATIONAL, INC.,            a Delaware corporation, as Borrower             By:  _______________________________                Name:                 Title:                Americas/2014725721                    Signature Page     Choice Hotels – Extension Confirmation Letter

 

DocuSign Envelope ID: E993EAC6-B8A9-45E1-ACE7-E24931827F92             ACKNOWLEDGED AND AGREED:             DEUTSCHE BANK AG NEW YORK BRANCH, as            an Extending Lender             By: _____________________________               Name: Ming K Chu              Title:                Americas/2014725721                    Signature Page     Choice Hotels – Extension Confirmation Letter

 

DocuSign Envelope ID: 0F5073E7-CF98-42D3-A9AF-3101F78F0082             ACKNOWLEDGED AND AGREED:             DEUTSCHE BANK AG NEW YORK BRANCH, as            an Extending Lender             By: _____________________________               Name: Annie Chung               Title:                Americas/2014725721                    Signature Page     Choice Hotels – Extension Confirmation Letter

 

ACKNOWLEDGED AND AGREED:   BANK OF AMERICA, N.A., as an Extending Lender   By: _____________________________     Name: Will Bowers Jr.     Title:   Senior Vice President   AMERICAS/2014725721                    Signature Page     Choice Hotels – Extension Confirmation Letter

 

ACKNOWLEDGED AND AGREED:   CAPITAL ONE, NATIONAL ASSOCIATION, as an Extending Lender   By:  f5..,,_fl1r  .z_     Name: Benjamin Lucas     Title: Vice President    AMERICAS/2014725721                    Signature Page     Choice Hotels - Extension Confirmation Letter 

 

ACKNOWLEDGED AND AGREED:   FIFTH THIRD BANK, NATIONAL ASSOCIATION, as an Extending Lender    AMERICAS/2014725721                   Signature Page    Choice Hotels - Extension Confinnation Letter 

 

ACKNOWLEDGED AND AGREED:   GOLDMAN SACHS BANK USA, as an Extending Lender   By: _____________________________     Name: Ryan Durkin      Title: Authorized Signatory      AMERICAS/2014725721                    Signature Page     Choice Hotels – Extension Confirmation Letter

 

ACKNOWLEDGEDAND       AGREED:   PNC BANK, NATIONAL ASSOCIATION, as an Extending Lender        ame: David Notaro     Title: Senior Vice Pre 1dent    Americas/2014725721                   Signature Page      Choice Hotels - Extension ConfirmationLetter  

 

ACKNOWLEDGED AND AGREED:   Truist Bank, as an Extending Lender   By�d.     Name:MattwJ.Davis       Title: Senior Vice President    AMERICAS/2014725721                   Signature Page      Choice Hotels - Extension Confirmation Letter 

 

ACKNOWLEDGED AND AGREED:   U.S. Bank National Association, as an Extending Lender   By·   �   · 7m:stevenL   Sawy/-rfs}�     Title: Senior Vice President    AMERICAS/2014725721                    SignaturePage       Choice Hotels - Extension Confirmation Letter 

 

ACKNOWLEDGED AND AGREED:   Wells Fargo Bank, N.A, as an ExtendingLender    By, �Dllltl,f�     1'Gtne:Katherine  A. Marcotte    Title: Senior Vice President    Americas/2014 725721                    Signature Page      Choice Hotels - Extension Confirmation Letter 

 

                                                          EXHIBIT A                                               Americas/2014725721.5                                       Exhibit A 

 

                                     COMMITMENTS        Five Year Tranche Lender Name and Address      Commitment    Pro Rata Percentage       Deutsche Bank AG New York Branch              $75,000,000.00             12.5%      c/o DB Services New Jersey, Inc.      5022 Gate Parkway, Suite 400      Jacksonville, Florida 32256      Attention:  Phelecia Parker       Wells Fargo Bank, N.A.                        $75,000,000.00             12.5%      7711 Plantation Road      Roanoke, Virginia 24019      Facsimile:  (866) 270-7214      Attention: Wholesale Loan Servicing, Roanoke Loan      Center       Bank of America, N.A.                         $60,000,000.00            10.00%      101 N Tryon Street      Charlotte, North Carolina 28255      Facsimile:  (312) 453-4750      Attention:  Kavitha Thakur, Credit Service      Representative       Barclays Bank PLC                             $60,000,000.00            10.00%      c/o Barclays Loan Operations      10, South Colonnade      London, United Kingdom  E14 4PU      Facsimile:  +44 (0) 20 7516 3867            For ABR and Swingline Loans only:      Barclays Bank PLC London      c/o Barclays Capital Services LLC      Global Services Unit as US Dollar Funding      Administrator      700 Prides Crossing      Newark, Delaware 19713      Facsimile:  (201) 510-8101             Truist Bank                                   $60,000,000.00            10.00%      211 Perimeter Center Parkway      Atlanta, Georgia 30346      Facsimile:  (801) 567-6267      Attention:  Charlene Conley, Operations Analyst       US Bank, National Association                 $50,000,000.00             8.34%      401 City Center      Oshkosh, Wisconsin 54901      Facsimile:  (920) 237-7993      Attention:  CLS Syndication Services       Fifth Third Bank                              $36,250,000.00             6.04%      5050 Kingsley Drive    Americas/2014725721.5                   Exhibit A 

 

    Five Year Tranche Lender Name and Address      Commitment    Pro Rata Percentage       Cincinnati, Ohio 45227      Facsimile: (513) 358-3480      Attention: Joyce Elam, Commercial Participation      Analyst       Capital One, National Association             $36,250,000.00             6.04%      6200 Chevy Chase Drive      Laurel, Maryland 20707      Facsimile: (855) 267-0849      Attention:  Richard Fath, Sr. Ops Coordinator       Goldman Sachs Bank USA                        $36,250,000.00             6.04%      200 West Street      New York, NY 10282      Facisimile: (212) 902 1099      Attention: Loan Operations      PNC Bank, National Association                $36,250,000.00             6.04%      249 Fifth Avenue      One PNC Plaza      Pittsburgh, Pennsylvania 15222      Facsimile:  (866) 641-2751      Attention: Derrell Groce       Subtotal                                       $525,000,000              87.5%       Four Year Tranche Lender Name and Address      Commitment    Pro Rata Percentage       JPMorgan Chase Bank, N.A.                     $75,000,000.00             12.5%      10 South Deaborn L2      Chicago, Illinois 60603      Facsimile:  (214) 307-6874      Attention:  Jitesh Chaurasia, Deal Administrator             Subtotal                                        $75,000,000              12.5%       TOTAL:                                       $600,000,000.00             100%       Americas/2014725721.5                   Exhibit A

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