Document:

EX-4.9

 Exhibit 4.9 

 
  

FIRST SUPPLEMENTAL INDENTURE 

$25,300,000 
 7.00% SENIOR
UNSECURED NOTES DUE 2019 
  
  

dated 
 NOVEMBER 21, 2014

 by 
 SOTHERLY HOTELS
LP 
 Issuer 
 and 

SOTHERLY HOTELS INC. 

Guarantor 
 and 

WILMINGTON TRUST, NATIONAL ASSOCIATION 

Trustee 

 Table of Contents 

 

							
	 Article 1 RELATION TO BASE INDENTURE
	  	 	1	  
			
	 1.1
	 	 Relation to Base Indenture
	  	 	1	  
		
	 Article 2 DEFINITIONS
	  	 	2	  
			
	 2.1
	 	 Definitions
	  	 	2	  
		
	 Article 3 THE SERIES OF NOTES
	  	 	6	  
			
	 3.1
	 	 Title of the Securities
	  	 	6	  
	 3.2
	 	 Price
	  	 	6	  
	 3.3
	 	 Issuance
	  	 	6	  
	 3.4
	 	 Limitation on Aggregate Principal Amount
	  	 	6	  
	 3.5
	 	 Interest and Interest Rates; Maturity Date of Notes
	  	 	6	  
	 3.6
	 	 Method of Payment
	  	 	7	  
	 3.7
	 	 Currency
	  	 	8	  
	 3.8
	 	 No Sinking Fund
	  	 	8	  
	 3.9
	 	 No Conversion or Exchange Rights
	  	 	8	  
	 3.10
	 	 No Personal Liability of Directors, Officers, Employers and Equityholders
	  	 	8	  
	 3.11
	 	 Registered Securities; Global Form
	  	 	8	  
	 3.12
	 	 Transfer and Exchange
	  	 	9	  
	 3.13
	 	 General Provisions Relating to Transfers and Exchanges
	  	 	12	  
		
	 Article 4 Redemption
	  	 	13	  
			
	 4.1
	 	 Optional Redemption
	  	 	13	  
	 4.2
	 	 Notice of Optional Redemption
	  	 	13	  
	 4.3
	 	 Payment of Notes Called for Redemption by the Partnership
	  	 	14	  
		
	 Article 5 GUARANTEE
	  	 	15	  
			
	 5.1
	 	 Guarantee
	  	 	15	  
	 5.2
	 	 Execution and Delivery of Guarantee
	  	 	16	  
	 5.3
	 	 Limitation of Guarantor’s Liability; Certain Bankruptcy Events
	  	 	16	  
	 5.4
	 	 Application of Certain Terms and Provisions to the Guarantor
	  	 	17	  
		
	 Article 6 ADDITIONAL COVENANTS
	  	 	17	  
			
	 6.1
	 	 Maintenance of Office or Agency
	  	 	17	  
	 6.2
	 	 Appointments to Fill Vacancies in Trustee’s Office
	  	 	18	  
	 6.3
	 	 Change of Control Repurchase Event
	  	 	18	  
	 6.4
	 	 Limitations on Incurrence of Debt
	  	 	19	  
	 6.5
	 	 Provision of Financial Information
	  	 	19	  
	 6.6
	 	 Maintenance of Properties
	  	 	20	  
	 6.7
	 	 Insurance
	  	 	20	  
	 6.8
	 	 Payment of Taxes and Other Claims
	  	 	20	  
	 6.9
	 	 Consolidation, Merger and Sale of Assets
	  	 	21	  

  
 i 

							
		
	 Article 7 DEFAULTS AND REMEDIES
	  	 	21	  
			
	 7.1
	 	 Events of Default
	  	 	21	  
	 7.2
	 	 Acceleration of Maturity; Rescission and Annulment
	  	 	23	  
	 7.3
	 	 Limitation on Suits
	  	 	23	  
		
	 Article 8 Amendments and Waivers
	  	 	24	  
			
	 8.1
	 	 Without Consent of Holders
	  	 	24	  
		
	 Article 9 MISCELLANEOUS PROVISIONS
	  	 	24	  
			
	 9.1
	 	 Ratification of Indenture
	  	 	24	  
	 9.2
	 	 Governing Law
	  	 	24	  
	 9.3
	 	 Counterparts
	  	 	25	  
	 9.4
	 	 Calculations in Respect of the Notes
	  	 	25	  
	 9.5
	 	 Successors and Assigns
	  	 	25	  
	 9.6
	 	 Rights of Holders Limited
	  	 	25	  
	 9.7
	 	 Rights and Duties of Trustee
	  	 	25	  
	 9.8
	 	 Notices
	  	 	25	  
	 9.9
	 	 Headings, etc.
	  	 	26	  
	 9.10
	 	 Conflicts
	  	 	26	  
	 9.11
	 	 Trust Indenture Act Controls
	  	 	27	  
	 9.12
	 	 Force Majeure
	  	 	27	  
	 9.13
	 	 U.S.A. Patriot Act
	  	 	27	  

  
 ii 

 FIRST SUPPLEMENTAL INDENTURE 

FIRST SUPPLEMENTAL INDENTURE, dated as of November 21, 2014 (this “Supplemental Indenture”), by and among
SOTHERLY HOTELS LP, a Delaware limited partnership (the “Partnership”), SOTHERLY HOTELS INC., a Maryland corporation (the “Guarantor” or the “REIT”), and WILMINGTON TRUST, NATIONAL ASSOCIATION, a
national banking association organized under the laws of the United States of America (the “Trustee”). 
 RECITALS

 A. The Partnership and the Trustee have heretofore entered into an Indenture dated as of November 21, 2014 (the “Base
Indenture”), providing for the issuance from time to time of debt securities of the Partnership in one or more Series. 
 B. Section 2.2 of
the Base Indenture permits the Partnership and the Trustee to enter into a supplemental indenture to the Base Indenture to establish the form, terms and conditions of Securities of any Series as permitted by the Base Indenture. 

C. Each of the Partnership and the Guarantor desires to execute this Supplemental Indenture to establish the form and to provide for the issuance of a Series
of the Partnership’s senior unsecured notes designated as its 7.00% Senior Unsecured Notes due 2019 (the “Notes”) in an initial aggregate principal amount of $25,300,000. 

D. The Guarantor will guarantee the due and punctual payment of the principal and interest on the Notes pursuant to Article V of this Supplemental
Indenture. 
 E. The Board of Directors of the Guarantor, as the sole general partner of the Partnership, has duly adopted resolutions authorizing the
Partnership to execute and deliver this Supplemental Indenture and the Board of Directors of the Guarantor has duly adopted resolutions authorizing such Guarantor to execute and deliver this Supplemental Indenture. 

F. All other conditions and requirements necessary to make this Supplemental Indenture, when duly executed and delivered, a valid and binding agreement in
accordance with its terms and for the purposes herein expressed, have been performed and fulfilled. 
 NOW, THEREFORE, THIS INDENTURE
WITNESSETH: 
 For and in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, each of the Partnership and the Guarantor agrees as follows: 
 ARTICLE 1 

RELATION TO BASE INDENTURE 
  

	1.1	Relation to Base Indenture 

 This Supplemental Indenture constitutes an integral part of
the Base Indenture. Notwithstanding any other provision of this Supplemental Indenture, all provisions of this 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 Base Indenture and shall not be deemed to amend, modify or supplement the Base Indenture for any purpose other than with respect to the Notes. 

  
 1 

 ARTICLE 2 

DEFINITIONS 
  

	2.1	Definitions 

 For all purposes of this Supplemental Indenture, except as otherwise
expressly provided for or unless the context otherwise requires: 
  

	 	(a)	capitalized terms used but not defined herein shall have the respective meanings assigned to them in the Base Indenture; 

  

	 	(b)	all references herein to Articles and Sections, unless otherwise specified, refer to the corresponding Articles and Sections of this Supplemental Indenture; and 

 

	 	(c)	as used herein the following terms have the following meanings: 

 “Additional
Notes” means additional Notes (other than the Initial Notes) issued under the Indenture in accordance with Section 3.4 hereof, as part of the same series as the Initial Notes. 

“Adjusted Total Asset Value” as of any date means the sum of (i) Stabilized Asset Value, (ii) Non-Stabilized Asset
Value and (iii) total cash and cash equivalents of the Partnership and its Subsidiaries on a consolidated basis determined in accordance with GAAP. 

“Applicable Procedures” means, with respect to any transfer, exchange, payment, redemption, offer, or communications
delivered of or for beneficial interests in any Global Note, the rules and procedures of the Depository that apply to such transfer, exchange, payment, redemption, offer, or communications delivered. 

“Asset Under Renovation” means as of any date any hotel asset directly or indirectly owned by the Partnership, any Subsidiary
or any Unconsolidated Entity, that is designated by the Partnership in its discretion as the recipient or beneficiary of capital expenditures in an amount greater than 4% of such hotel asset’s total revenues for the preceding 12 months. 

“Authentication Order” means a Partnership Order to the Trustee to authenticate and deliver the Notes. 

“Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law for the relief of debtors. 

“Benefited Party” has the meaning set forth in Section 5.1 hereof. 

“Business Day” means a day other than a Saturday, Sunday or any other day on which banking institutions in New York City or
the location of the corporate trust office of the Trustee are authorized or required by law, regulation or executive order to close. 

“Capital Stock” means, with respect to any entity, any and all shares, interests, participations or other equivalents
(however designated, whether voting or non-voting), including partnership or limited liability company interests, whether general or limited, in the equity of such entity (including without limitation all warrants, options, derivative instruments,
or rights of subscription or conversion relating to or affecting Capital Stock), whether outstanding on the issue date of the notes or issued thereafter, including without limitation, in the case of the REIT, all common stock and preferred stock of
REIT outstanding from time to time. 
 “Capitalization Rate” means 7.5%. 

  
 2 

 “Change of Control Offer” has the meaning set forth in Section 6.3 hereof.

 “Change of Control Payment” has the meaning set forth in Section 6.3 hereof. 

“Change of Control Payment Date” has the meaning set forth in Section 6.3 hereof. 

“Change of Control Repurchase Event” means (A) the acquisition by any person, including any syndicate or group deemed to
be a “person” under Section 13(d)(3) of the Exchange Act, of beneficial ownership, directly or indirectly, through a purchase, merger or other acquisition transaction or series of purchases, mergers or other acquisition transactions
of the Capital Stock entitling that person to exercise more than 50% of the total voting power of all the Capital Stock entitled to vote generally in the election of the REIT’s directors (except that such person will be deemed to have
beneficial ownership of all securities that such person has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition); and (B) following the closing of any
transaction referred to in subsection (A), neither the Partnership, the REIT nor the acquiring or surviving entity has a class of common securities (or American Depositary Receipts representing such securities) listed on the New York Stock Exchange
(“NYSE”), the NYSE Amex Equities (“NYSE Amex”), or the Nasdaq Stock Market, or listed or quoted on an exchange or quotation system that is a successor to the NYSE, the NYSE Amex or the Nasdaq Stock Market. 

“Consolidated Income Available for Debt Service” means, for the four complete calendar quarters preceding the date of
determination, Consolidated Net Income of the Partnership and its Subsidiaries plus amounts that have been deducted for but minus amounts that have been added for (a) Consolidated Interest Expense plus dividends on mandatorily redeemable or
mandatorily convertible preferred stock and prepayment penalties included in GAAP interest expense, (b) provision for taxes of the Partnership and its Subsidiaries based on income, (c) depreciation and amortization and all other non-cash
items deducted for purposes of calculating Consolidated Net Income, (d) provision for gains and losses on sales or other dispositions of properties and other investments, (e) extraordinary items, (f) non-recurring or other unusual
items, as determined by the Partnership in good faith and (g) corporate, general and administrative expenses. 
 “Consolidated
Interest Expense” means, for the four complete calendar quarters preceding the date of determination, the aggregate amount of interest expense for the Partnership and its Subsidiaries for such period determined accordance with GAAP,
excluding any interest that is (i) payable in respect of Capital Stock, (ii) capitalized or (iii) payable in a form other than cash. 

“Consolidated Net Income” means, for the four complete calendar quarters preceding the date of determination, the amount of
net income (or loss) of the Partnership and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP. 

“Debt” means, as of any date, without duplication, any indebtedness of the Partnership or any Subsidiary, whether or not
contingent, solely in respect of (i) borrowed money evidenced by bonds, notes, debentures or similar instruments, (ii) indebtedness secured by a mortgage, pledge, lien, charge, encumbrance or any security interest existing on property
owned by the Partnership or any Subsidiary or (iii) reimbursement obligations in connection with any letters of credit actually issued or amounts representing the balance deferred and unpaid of the purchase price of any property except any such
balance that constitutes an accrued expense or trade payable; but in the case of items of indebtedness incurred under (i) through (iii) above only to the extent that any such items (other than letters of credit) would appear as a liability
on the Partnership’s consolidated balance sheet in accordance with GAAP; and also includes, to the extent not otherwise included, any obligation of the Partnership or any Subsidiary to be liable for, or to pay, as obligor, guarantor or
otherwise (other than for purposes of collection in the ordinary course of business), indebtedness of another person (other than the Partnership or any Subsidiary). Notwithstanding anything to the contrary in the foregoing, “Debt” shall
exclude all Capital Stock of the REIT, the Partnership or any Subsidiary. 

  
 3 

 “Default” means any event that is, or after notice or passage of time or
both would be, an Event of Default. 
 “Defaulted Interest” has the meaning set forth in Section 3.6 hereof.

 “Definitive Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with
Section 3.12 hereof, substantially in the form of Exhibit A hereof except that such Note shall not bear the Global Note legend and shall not have the “Schedule of Exchanges of Interests in the Global Note” attached
thereto. 
 “Depository” means, with respect to the Global Notes, the Depository Trust Company and any successor thereto.

 “Event of Default” has the meaning set forth in Section 7.1 hereof. 

“Financial Information” has the meaning set forth in Section 6.5 hereof. 

“GAAP” means generally accepted accounting principles, as in effect from time to time, as used in the United States of
America, applied on a consistent basis; provided, that solely for purposes of any calculation required by the financial covenants contained herein, “GAAP” shall mean generally accepted accounting principles as used in the United States of
America, on the date hereof, applied on a consistent basis. 
 “Global Note” means, individually and collectively,
each of the Notes in the form of a Global Security issued to the Depository or its nominee, substantially in the form of Exhibit A. 

“Guarantee” and “Guarantees” mean, with respect to any Notes that that are guaranteed by the Guarantor
pursuant to Section 5.1, the full and unconditional guarantee provided by the Guarantor in respect of such Notes as set forth in Article V hereof and the guarantees endorsed on the certificates evidencing such Notes, or both, as the context
shall require. 
 “Guarantee Obligations” has the meaning set forth in Section 5.1 hereof. 

“Indenture” means the Base Indenture, as supplemented by this Supplemental Indenture, as further supplemented, amended or
restated. 
 “Indirect Participant” means a person who holds a beneficial interest in a Global Note through a Participant.

 “Initial Notes” means the first $25,300,000 aggregate principal amount of Notes issued under this Supplemental Indenture
on the date hereof. 
 “Initial Original Principal Amount” has the meaning set forth in Section 3.4 hereof. 

“Intercompany Debt” means Debt to which the only parties are the REIT, any of its subsidiaries, the Partnership and
any Subsidiary, or Debt owed to the REIT arising from routine cash management practices, but only so long as such Debt is held solely by any of the REIT, any of its subsidiaries, the Partnership and any Subsidiary. 

“Interest Payment Date” has the meaning set forth in Section 3.5 hereof. 

“Maturity Date” has the meaning set forth in Section 3.5 hereof. 

  
 4 

 “Non-Stabilized Asset” means, as of any date, any hotel asset owned by
the Partnership, any Subsidiary or any Unconsolidated Entity that (i) is, or within the preceding 24 months has been, an Asset Under Renovation, or (ii) has, within the preceding 24 months, (A) completed a brand change, (B) been
subject to an event, or a series of events, giving rise to a material casualty or (C) is in, or has completed, condemnation proceedings in respect of all or any part of such hotel asset. 

“Non-Stabilized Asset Value” as of any date means the total “as-stabilized” value of all Non-Stabilized
Assets as determined by an appraisal of each such Non-Stabilized Asset commissioned by the Partnership from a certified MAI appraiser in December of each year during which any Notes remain outstanding. 

“Notes” has the meaning specified in Recital C hereof. The Initial Notes and the Additional Notes shall be treated as a
single class for all purposes under the Indenture, and unless the context otherwise requires, all references to the Notes shall include the Initial Notes and any Additional Notes. 

“Participant” means a person who has an account with the Depository. 

“Prospectus” means the prospectus dated October 10, 2014 and the prospectus supplement dated November 18, 2014,
relating to the original issuance of the Notes. 
 “Record Date” has the meaning set forth in Section 3.5 hereof. 

“Redemption Date” means, with respect to any Note or portion thereof to be redeemed in accordance with the provisions of
Section 4.1 hereof, the date fixed for such redemption in accordance with the provisions of Section 4.1 hereof. 

“Redemption Price” has the meaning specified in Section 4.1 hereof. 

“Required Filing Dates” has the meaning set forth in Section 6.5 hereof. 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in
effect from time to time. 
 “Significant Subsidiary” with respect to any person, means any Subsidiary of such
person that satisfies the criteria for a “significant subsidiary” set forth in Rule 1-02(w) of Regulation S-X under the Exchange Act. 

“Stabilized Asset” means, as of any date, any hotel asset owned by the Partnership, any Subsidiary or any Unconsolidated
Entity that does not constitute a Non-Stabilized Asset. 
 “Stabilized Asset Value” as of any date means the total value of
all Stabilized Assets determined by dividing (i) Stabilized Consolidated Income Available for Debt Service by (ii) the Capitalization Rate. 

“Stabilized Consolidated Income Available for Debt Service” as of any date means Consolidated Income Available for Debt
Service of the Partnership and its Subsidiaries, excluding any portion of Consolidated Income Available for Debt Service attributable to a Non-Stabilized Asset. 

“Stabilized Consolidated Interest Expense” as of any date means Consolidated Interest Expense of the Partnership and its
Subsidiaries, excluding any portion of Consolidated Interest Expense relating to Debt that is secured by a Non-Stabilized Asset. 

“Subsidiary” means a corporation, partnership or limited liability company, a majority of the outstanding Voting Stock
of which is owned or controlled, directly or indirectly, by the Partnership or by one or more Subsidiaries of the Partnership. 

  
 5 

 “Unconsolidated Entity” means a person, other than a Subsidiary, in which
the Partnership holds a direct or indirect ownership interest that is accounted for under the equity method of accounting or the cost method of accounting. 

“Voting Stock” means with respect to any person, Capital Stock of any class or kind ordinarily having the power to
vote for the election of directors, managers or other voting members of the governing body of such person 
 ARTICLE 3 

THE SERIES OF NOTES 
  

	3.1	Title of the Securities 

 There shall be a Series of Securities designated the 7.00%
Senior Unsecured Notes due 2019. 
  

	3.2	Price 

 The Initial Notes shall be issued at a public offering price of $25 per note,
other than any offering discounts pursuant to the initial offering and resale of the Notes. 
  

	3.3	Issuance 

 The Notes will be issued only in fully registered, book-entry form, in minimum
denominations of $25 and integral multiples of $25 in excess thereof. The principal amount of the Notes will be reflected in units with each unit being worth $25. The registered Holder of a Note will be treated as its owner for all purposes. 

 

	3.4	Limitation on Aggregate Principal Amount 

 The aggregate principal amount of the Notes
shall initially be limited to $25,300,000 (the “Initial Original Principal Amount”). Notwithstanding the foregoing, the Partnership, without notice to or the consent of the Holders of the Notes, by resolutions of the Board of
Directors of the Guarantor or indentures supplemental to the Base Indenture from time to time may increase the principal amount of the Notes by issuing Additional Notes in the future on the same terms and conditions as the Initial Notes except for
any difference in the issue date, issue price, interest accrued prior to the issue date and, if applicable, the first interest payment date of the Additional Notes, and with the same CUSIP number as the Initial Notes so long as such Additional Notes
are fungible for U.S. income tax purposes with the Initial Notes. 
 Except as provided in this Section 3.4, any such resolutions of
the Board of Directors of the Guarantor or indentures supplemental to the Base Indenture and in Section 2.8 of the Base Indenture, the Partnership shall not execute and the Trustee shall not authenticate or deliver Notes in excess of the
Initial Original Principal Amount. 
 Nothing contained in this Section 3.4 or elsewhere in this Supplemental Indenture, or in the
Notes, is intended to or shall limit execution by the Partnership or authentication or delivery by the Trustee of the Notes under the circumstances contemplated in Sections 2.3, 2.8, 2.11 and 3.6 of the Base Indenture. 

 

	3.5	Interest and Interest Rates; Maturity Date of Notes 

 The Notes will bear interest at a
rate of 7.00% per annum from November 21, 2014 or from the immediately preceding Interest Payment Date to which interest has been paid or duly provided for, payable quarterly in arrears on
February 15th, May 15th, August 15th and November 15th of each year, 

  
 6 

 
commencing February 15, 2015 (each, an “Interest Payment Date”), to the person in whose name such Note is registered at the close of business on
February 1st, May 1st, August 1st or November 1st (whether or not a Business Day), as the case may be, immediately preceding such Interest Payment Date (each, a “Record Date”). Interest will be computed
on the basis of a 360-day year composed of twelve 30-day months. 
 If any Interest Payment Date, Maturity Date or Redemption Date falls on
a day that is not a Business Day, the required payment shall be made on the next Business Day as if it were made on the date such payment was due and no interest shall accrue on the amount so payable for the period from and after such Interest
Payment Date, Maturity Date or Redemption Date, as the case may be. 
 The Notes will mature on November 15, 2019 (the
“Maturity Date”). 
  

	3.6	Method of Payment 

 The Partnership covenants and agrees that it will duly and punctually
pay or cause to be paid when due the principal of (including the Redemption Price upon redemption pursuant to Article IV, if applicable), and interest on each of the Notes at the places, at the respective times and in the manner provided herein
and in the Notes; provided that the Partnership may withhold from payments of interest and upon redemption pursuant to Article IV hereof, if applicable, maturity or otherwise, any amounts the Partnership is required to withhold by law. Interest
shall be payable at the office of the Partnership maintained by the Partnership for such purposes, which shall initially be an office or agency of the Trustee. The Partnership shall pay or cause the Paying Agent to pay interest (i) on any Notes
in certificated form by wire transfer of immediately available funds to the account specified by the Holder thereof in writing, or if no such account is specified, by mailing a check to each such Holder’s registered address, or (ii) on any
Global Note by wire transfer of immediately available funds to the account of the Depository or its nominee. Any interest on any Note which is payable, but is not punctually paid or duly provided for, on the date such interest is due (subject to any
applicable grace periods) (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder registered as such on the relevant Record Date, and such Defaulted Interest shall be paid by the Partnership, at its
election in each case, as provided in clause (1) or (2) below: 
 (1) The Partnership may elect to make payment of any Defaulted
Interest to the persons in whose names the Notes are registered at 5:00 p.m., New York City time, on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Partnership shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Note and the date of the proposed payment (which shall be not less than twenty-five (25) calendar days after the receipt by the Trustee of such notice,
unless the Trustee shall consent to an earlier date), and at the same time the Partnership shall deposit with the Trustee an amount of monies equal to the aggregate amount to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit on or prior to the date of the proposed payment, such monies when deposited to be held in trust for the benefit of the persons entitled to such Defaulted Interest as in this clause provided. The
Partnership shall also fix a special record date for the payment of such Defaulted Interest which shall be not more than fifteen (15) calendar days and not less than ten (10) calendar days prior to the date of the proposed payment, and not
less than ten (10) calendar days after the receipt by the Trustee of the notice of the proposed payment (unless, the Trustee shall consent to an earlier date). The Partnership shall promptly notify the Trustee of such special record date and,
in the name and at the expense of the Partnership, the Trustee shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed (or sent by electronic transmission), first-class postage prepaid,
to each Holder at its address as it appears in the register, not less than ten (10) calendar days prior to such special record date. Notice of the proposed payment of such Defaulted Interest and the

  
 7 

 
special record date therefor having been so sent, such Defaulted Interest shall be paid to the persons in whose names the Notes are registered at 5:00 p.m., New York City time, on such
special record date and shall no longer be payable pursuant to the following clause (2) of this Section 3.6. 
 (2) The
Partnership may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange or automated quotation system on which the Notes may be listed or designated for issuance, and upon
such notice as may be required by such exchange or automated quotation system, if, after notice given by the Partnership to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the
Trustee. 
  

	3.7	Currency 

 Principal and interest on the Notes shall be payable in Dollars. 

 

	3.8	No Sinking Fund 

 The provisions of Article XI of the Base Indenture shall not be
applicable to the Notes. 
  

	3.9	No Conversion or Exchange Rights 

 The Notes will not be convertible into or exchangeable
for any capital stock or other equity securities of the Partnership or the Guarantor. 
  

	3.10	No Personal Liability of Directors, Officers, Employers and Equityholders 

 No director,
officer, employee, or equityholder (past or present) of the Partnership or the Guarantor, as such, will have any liability for any of the Partnership’s or the Guarantor’s obligations under the Notes, the Guarantee or the Indenture or for
any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes
and the Guarantee. 
  

	3.11	Registered Securities; Global Form 

 The Notes will be issued in the form of one or more
fully-registered Global Notes in book-entry form, which will be deposited with, or on behalf of, the Depository. The Notes shall not be issuable in Definitive Notes except as provided in Section 3.12 of this Supplemental Indenture. The Notes
and the Trustee’s certificate of authentication shall be substantially in the form attached as Exhibit A hereto. The Partnership shall execute each Global Note and each Definitive Note, if any. The Trustee shall, in accordance with
Section 2.3 of the Base Indenture, authenticate and hold each Global Note as custodian for the Depository, and authenticate each Definitive Note, if any. Each Global Note will represent such of the outstanding Notes as will be specified therein
and each shall provide that it represents the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced or
increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Notes represented thereby will be made by the
Trustee or a custodian at the direction of the Trustee. The terms and provisions contained in the form of Note attached as Exhibit A hereto shall constitute, and are hereby expressly made, a part of the Indenture and, to the extent
applicable, the Partnership and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. 

  
 8 

	3.12	Transfer and Exchange 

  

	 	(a)	Transfer and Exchange of Global Notes. A Global Note may not be transferred except as a whole by the Depository to a nominee of the Depository, by a nominee of the Depository to the Depository or to another
nominee of the Depository, or by the Depository or any such nominee to a successor Depository or a nominee of such successor Depository. All Global Notes will be exchanged by the Partnership for Definitive Notes if: 

 

	 	(i)	the Partnership delivers to the Trustee notice from the Depository that it is unwilling or unable to continue to act as Depository or that it is no longer a clearing agency registered under the Exchange Act and, in
either case, a successor Depository is not appointed by the Partnership within ninety (90) days after the date of such notice from the Depository; 

  

	 	(ii)	the Partnership in its sole discretion determines that the Global Notes (in whole but not in part) should be exchanged for Definitive Notes and delivers a written notice to such effect to the Trustee; or

  

	 	(iii)	an Event of Default has occurred and is continuing with respect to the Notes and the Depository or the Partnership requests such exchange. 

Upon the occurrence of any of the preceding events in (i), (ii) or (iii) above, Definitive Notes shall be issued in such names as
the Depository shall instruct the Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.8 and 2.11 of the Base Indenture. 

A Global Note may not be exchanged for another Note other than as provided in this Section 3.12(a), however, beneficial interests in a
Global Note may be transferred and exchanged as provided in Section 3.12(c) or (d) hereof. 
  

	 	(b)	Legend. Any Global Note issued under this Supplemental Indenture shall bear a legend in substantially the following form: 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITORY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF
THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 3.12 OF THE FIRST SUPPLEMENTAL INDENTURE,
(2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 3.12 OF THE FIRST SUPPLEMENTAL INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THE BASE
INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE PARTNERSHIP. 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS
THIS 

  
 9 

 
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK 10041) (“DTC”) TO THE PARTNERSHIP OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.” 
  

	 	(c)	Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and exchange of beneficial interests in the Global Notes will be effected through the Depository, in accordance with the provisions
of the Indenture and the Applicable Procedures. Transfers of beneficial interests in the Global Notes will require compliance with either subparagraph (i) or (ii) below, as applicable, as well as one or more of the other following
subparagraphs, as applicable: 

  

	 	(i)	Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in any Global Note may be transferred to persons who take delivery thereof in the form of a beneficial interest in a Global Note. No
written orders or instructions shall be required to be delivered to the Registrar to effect the transfers described in this Section 3.12(c)(i). 

  

	 	(ii)	All Other Transfers of Beneficial Interests in Global Notes. In connection with all transfers of beneficial interests that are not subject to Section 3.12(c)(i) above, the transferor of such beneficial
interest must deliver to the Registrar both: 

  

	 	(A)	a written order from a Participant or an Indirect Participant given to the Depository in accordance with the Applicable Procedures directing the Depository to credit or cause to be credited a beneficial interest in
another Global Note in an amount equal to the beneficial interest to be transferred or exchanged; and 

  

	 	(B)	instructions given in accordance with the Applicable Procedures containing information regarding the Participant account to be credited with such increase. 

Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in Global Notes contained in the Indenture and
the Notes or otherwise applicable under the Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 3.12(g) hereof. 

 

	 	(d)	 Transfer and Exchange of Beneficial Interests in Global Notes for Definitive Notes. If any holder of a beneficial interest in a Global Note
proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a person who takes delivery thereof in the form of a Definitive Note, then, upon satisfaction of the conditions set forth in
Section 3.12(c)(ii) hereof, the Trustee will cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 3.12(g) hereof, and the Partnership will execute and the Trustee will
authenticate and deliver to the person designated in the instructions a Definitive Note in the appropriate principal amount. Any Definitive Note issued in exchange for a beneficial 

  
 10 

	 	
interest pursuant to this Section 3.12(d) will be registered in such name or names and in such authorized denomination or denominations as the holder of such beneficial interest requests
through instructions to the Registrar from or through the Depository and the Participant or Indirect Participant. The Trustee will deliver such Definitive Notes to the persons in whose names such Notes are so registered. 

 

	 	(e)	Transfer and Exchange of Definitive Notes for Beneficial Interests in Global Notes. A Holder of a Definitive Note may exchange such Note for a beneficial interest in a Global Note or transfer such Definitive
Notes to a person who takes delivery thereof in the form of a beneficial interest in a Global Note at any time. Upon receipt of a request for such an exchange or transfer, the Trustee will cancel the applicable Definitive Note and increase or cause
to be increased the aggregate principal amount of one of the Global Notes. 

 If any such exchange or transfer from a
Definitive Note to a beneficial interest is effected pursuant to the previous paragraph at a time when a Global Note has not yet been issued, the Partnership will issue and, upon receipt of an Authentication Order in accordance with
Section 3.12 hereof, the Trustee will authenticate one or more Global Notes in an aggregate principal amount equal to the principal amount of Definitive Notes so transferred. 

 

	 	(f)	Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 3.12(f), the Registrar will
register the transfer or exchange of Definitive Notes. Prior to such registration of transfer or exchange, the requesting Holder will present or surrender to the Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or by his attorney, duly authorized in writing. A Holder of Definitive Notes may transfer such Notes to a person who takes delivery thereof in the form of a Definitive Note.
Upon receipt of a request to register such a transfer, the Registrar shall register the Definitive Notes pursuant to the instructions from the Holder thereof. 

  

	 	(g)	Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed,
repurchased or canceled in whole and not in part, each such Global Note will be returned to or retained and canceled by the Trustee in accordance with Section 2.12 of the Base Indenture. At any time prior to such cancellation, if any beneficial
interest in a Global Note is exchanged for or transferred to a person who will take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes represented by such Global Note
will be reduced accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depository at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a
person who will take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note will be increased accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depository at the
direction of the Trustee to reflect such increase. 

  
 11 

	3.13	General Provisions Relating to Transfers and Exchanges 

  

	 	(a)	To permit registrations of transfers and exchanges, the Partnership will execute and the Trustee will authenticate Global Notes and Definitive Notes upon receipt of an Authentication Order in accordance with
Section 3.12 hereof or at the Registrar’s request. 

  

	 	(b)	No service charge will be made to a Holder of a beneficial interest in a Global Note or to a Holder of a Definitive Note for any registration of transfer or exchange, but the Partnership may require payment of a sum
sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections 2.11 and 9.6 of the
Base Indenture). 

  

	 	(c)	The Registrar will not be required to register the transfer of or exchange of any Note selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part. 

 

	 	(d)	All Global Notes and Definitive Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Notes will be the valid obligations of the Partnership, evidencing the same debt, and entitled to
the same benefits under the Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange. 

  

	 	(e)	Neither the Registrar nor the Partnership will be required: 

  

	 	(i)	to issue, register the transfer of or to exchange any Note during a period beginning at the opening of business fifteen (15) days before any selection of Notes for redemption under Article IV hereof and ending
at the close of business on the earliest date on which the relevant notice of redemption is deemed to have been given to all Holders of Notes to be so redeemed; 

  

	 	(ii)	to register the transfer of or to exchange any Note so selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part; or 

 

	 	(iii)	to register the transfer of or to exchange a Note between a Record Date and the next succeeding Interest Payment Date. 

  

	 	(f)	Prior to due presentment for the registration of a transfer of any Note, the Trustee, any Agent and the Partnership may deem and treat the person in whose name any Note is registered as the absolute owner of such Note
for the purpose of receiving payment of principal of and interest on such Notes and for all other purposes, and none of the Trustee, any Agent or the Partnership shall be affected by notice to the contrary. 

 

	 	(g)	The Trustee will authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 2.3 of the Base Indenture. 

 

	 	(h)	All certifications, certificates and Opinions of Counsel required to be submitted to the Registrar pursuant to this Section 3.13 to effect a registration of transfer or exchange may be submitted by facsimile.

  

	 	(i)	 The Trustee shall have no responsibility or obligation to any beneficial owner of a Global Note, a member of, or a participant in the Depository or
any other person with respect to 

  
 12 

	 	
the accuracy of the records of the Depository or its nominee or of any participant or member thereof, with respect to any ownership interest in the Notes or with respect to the delivery to any
participant, member, beneficial owner or other person (other than the Depository) of any notice (including any notice of redemption or repurchase) or the payment of any amount, under or with respect to such Notes. All notices and communications to
be given to the Holders and all payments to be made to the Holders under the Notes shall be given or made only to the registered Holders (which shall be the Depository or its nominee in the case of a Global Note). The rights of beneficial owners in
any Global Note shall be exercised only through the Depository subject to the Applicable Procedures of the Depository. The Trustee may conclusively rely and shall be fully protected in so relying upon information furnished by the Depository with
respect to its members, participants and any beneficial owners. 

  

	 	(j)	(ii) The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under the Indenture or under applicable law with respect to any transfer of
any interest in any Notes (including any transfers between or among Depository participants, members or beneficial owners in any Global Note) other than to require delivery of such certificates and other documentation or evidence as are expressly
required by, and to do so if and when expressly required by, the terms of the Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof. 

ARTICLE 4 
 REDEMPTION

  

	4.1	Optional Redemption 

  

	 	(a)	On or after November 15, 2017, the Partnership shall have the right to redeem the Notes at its option at the Redemption Price (as defined below) and in its sole discretion, in whole or from time to time in part.
The redemption price (“Redemption Price”) will equal 101% of the principal amount of the Notes to be redeemed plus unpaid interest, if any, accrued thereon to, but excluding, the Redemption Date. 

 

	 	(b)	The Partnership shall not redeem the Notes pursuant to Section 4.1(a) on any date if the principal amount of the Notes has been accelerated, and such an acceleration has not been rescinded or cured on or prior to
such date (except in the case of an acceleration resulting from a default by the Partnership in the payment of the Redemption Price with respect to the Notes to be redeemed). 

 

	4.2	Notice of Optional Redemption 

 In case the Partnership shall desire to exercise the
right to redeem all or, as the case may be, any part of the Notes pursuant to Section 4.1 hereof, it shall fix a date for redemption and it or, at its written request received by the Trustee in the form of an Officer’s Certificate not
fewer than five (5) Business Days prior (or such shorter period of time as may be acceptable to the Trustee) to the date the notice of redemption is to be sent, the Trustee in the name of and at the expense of the Partnership, shall send or
cause to be sent a notice of such redemption not fewer than thirty (30) calendar days nor more than sixty (60) calendar days prior to the Redemption Date to each Holder of Notes so to be redeemed in whole or in part at its last address as
the same appears on the register maintained by the Registrar; provided that if the Partnership makes such request of the Trustee, it shall, together with such request, also give written notice of the Redemption Date to the Trustee; provided further
that the text of the notice shall be prepared by the Partnership. Such notice shall be sent by first-class mail or, for Global Notes, through electronic delivery 

  
 13 

 
in PDF format. The notice, if sent in the manner herein provided, shall be conclusively presumed to have been duly given, whether or not the Holder receives such notice. In any case, failure to
give such notice or any defect in the notice to the Holder of any Note designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Note. 

Each such notice of redemption shall specify: (i) the aggregate principal amount of Notes to be redeemed, (ii) the CUSIP number or
numbers, if any, of the Notes being redeemed, (iii) the Redemption Date (which shall be a Business Day), (iv) the Redemption Price at which Notes are to be redeemed, (v) the place or places of payment and that payment will be made
upon presentation and surrender of such Notes and (vi) that interest accrued and unpaid to, but excluding, the Redemption Date will be paid as specified in said notice, and that on and after said date interest thereon or on the portion thereof
to be redeemed will cease to accrue. If fewer than all the Notes are to be redeemed, the notice of redemption shall identify the Notes to be redeemed (including CUSIP numbers, if any). In case any Note is to be redeemed in part only, the notice of
redemption shall state the portion of the principal amount thereof to be redeemed and shall state that, on and after the Redemption Date, upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion thereof
will be issued. 
 Whenever any Notes are to be redeemed, the Partnership will give the Trustee written notice of the Redemption Date as to
the aggregate principal amount of Notes to be redeemed not fewer than thirty (30) calendar days (or such shorter period of time as may be acceptable to the Trustee) prior to the Redemption Date. 

On or prior to the Redemption Date specified in the notice of redemption given as provided in this Section 4.2, the Partnership will
deposit with the Paying Agent an amount of monies in immediately available funds sufficient to redeem on the Redemption Date all the Notes (or portions thereof) so called for redemption at the appropriate Redemption Price; provided that if such
payment is made on the Redemption Date, it must be received by the Paying Agent, by 10:00 a.m., New York City time, on such date. 
 If
less than all of the outstanding Notes are to be redeemed, the Trustee shall select the Notes or portions thereof of the Global Note or the Notes in certificated form to be redeemed (in principal amounts of $25 and integral multiples of $25 in
excess thereof), on a pro rata basis or such other method the Trustee deems fair and appropriate and as is required by the Depository pursuant to the Applicable Procedures. The Notes (or portions thereof) so selected for redemption shall be deemed
duly selected for redemption for all purposes hereof. 
  

	4.3	Payment of Notes Called for Redemption by the Partnership 

 If notice of redemption has
been given as provided in Section 4.2, the Notes or portion of Notes with respect to which such notice has been given shall become due and payable on the Redemption Date and at the place or places stated in such notice at the Redemption Price,
and unless the Partnership shall default in the payment of such Notes at the Redemption Price, so long as the Paying Agent holds funds sufficient to pay the Redemption Price of the Notes to be redeemed on the Redemption Date, then (a) such
Notes will cease to be outstanding on and after the Redemption Date, (b) interest on the Notes or portion of Notes so called for redemption shall cease to accrue on and after the Redemption Date, (c) on and after the Redemption Date
(unless the Partnership shall default in the payment of the Redemption Price), such Notes will cease to be entitled to any benefit or security under the Indenture, and (d) the Holders of the Notes shall have no right in respect of such Notes
except the right to receive the Redemption Price thereof. On presentation and surrender of such Notes at a place of payment in said notice specified, the said Notes or the specified portions thereof shall be paid and redeemed by the Partnership at
the Redemption Price. 

  
 14 

 Upon presentation of any Note redeemed in part only, the Partnership shall execute and the
Trustee shall upon receipt of an Authentication Order, authenticate and make available for delivery to the Holder thereof, at the expense of the Partnership, a new Note or Notes, of authorized denominations, in principal amount equal to the
unredeemed portion of the Notes so presented. 
 ARTICLE 5 

GUARANTEE 
 This
Article V shall replace Article XII of the Base Indenture in its entirety with respect to the Notes only. 
  

	5.1	Guarantee 

 By its execution hereof, the Guarantor acknowledges and agrees that the Notes
shall be entitled to the benefits of a Guarantee. Accordingly, subject to the provisions of this Article, the Guarantor hereby unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and its successors and
assigns that: (i) the principal of (including the Redemption Price upon redemption pursuant to Article IV), and any premium and interest on, the Notes shall be duly and punctually paid in full when due, whether at the Maturity, upon
acceleration, upon redemption or otherwise, and interest on overdue principal of, and any premium and (to the extent permitted by law) interest on, the Notes and all other obligations of the Partnership to the Holders or the Trustee hereunder or
under the Notes (including fees, expenses or other) shall be promptly paid in full or performed, all in accordance with the terms hereof; and (ii) in case of any extension of time of payment or renewal of any Notes or any of such other
obligations, the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at the Maturity, by acceleration, call for redemption or otherwise, subject, however, in the case of
clauses (i) and (ii) above, to the limitations set forth in this Article (collectively, the “Guarantee Obligations”). 

Subject to the provisions of this Article, the Guarantor hereby agrees that its Guarantee hereunder shall be unconditional, irrespective of
the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any term thereof, the entry of any judgment against the
Partnership, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of the Guarantor. The Guarantor hereby waives and relinquishes: (a) any right to require the
Trustee, the Holders or the Partnership (each, a “Benefited Party”) to proceed against the Partnership or any other person or to proceed against or exhaust any security held by a Benefited Party at any time or to pursue any other
remedy in any secured party’s power before proceeding against the Guarantor; (b) any defense that may arise by reason of the incapacity, lack of authority, death or disability of any other person or persons or the failure of a Benefited
Party to file or enforce a claim against the estate (in administration, bankruptcy or any other proceeding) of any other person or persons; (c) demand, protest and notice of any kind (except as expressly required by the Indenture), including
but not limited to notice of the existence, creation or incurring of any new or additional indebtedness or obligation or of any action or non-action on the part of the Guarantor, the Partnership, any other Benefited Party, any creditor of the
Guarantor or the Partnership or on the part of any other person whomsoever in connection with any obligations the performance of which are hereby guaranteed; (d) any defense based upon an election of remedies by a Benefited Party, including but
not limited to an election to proceed against the Guarantor for reimbursement; (e) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more
burdensome than that of the principal; (f) any defense arising because of a Benefited Party’s election, in any proceeding instituted under the Bankruptcy Law, of the application of Section 1111(b)(2) of the Bankruptcy Law; and
(g) any defense based on any borrowing or grant of a security interest under Section 364 of the Bankruptcy Law. 

  
 15 

 
The Guarantor hereby covenants that, except as otherwise provided therein, the Guarantee shall not be discharged except by payment in full of all Guarantee Obligations, including the principal
of, and any premium and interest on, the Notes and all other costs provided for under the Indenture. 
 If any Holder or the Trustee is
required by any court or otherwise to return to either the Partnership or the Guarantor, or any trustee or similar official acting in relation to either the Partnership or the Guarantor, any amount paid by the Partnership or the Guarantor to the
Trustee or such Holder, the Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect. The Guarantor agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any
Guarantee Obligations hereby until payment in full of all such obligations guaranteed hereby. The Guarantor agrees that, as between it, on the one hand, and the Holders of Notes and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article VI of the Base Indenture for the purposes hereof, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Guarantee
Obligations, and (y) in the event of any acceleration of such obligations as provided in Article VI of the Base Indenture, such Guarantee Obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantor
for the purpose of the Guarantee. 
  

	5.2	Execution and Delivery of Guarantee 

  

	 	(a)	To evidence the Guarantee set forth in Section 5.1 hereof, the Guarantor agrees that a Notation of Guarantee substantially in the form included in Exhibit B hereto shall be endorsed on each Note
authenticated and delivered by the Trustee and that this First Supplemental Indenture shall be executed on behalf of the Guarantor by an Officer of the Guarantor. 

 

	 	(b)	The Guarantor agrees that the Guarantee set forth in this Article V shall remain in full force and effect and apply to all the Notes notwithstanding any failure to endorse on each Note a Notation of the Guarantee.

  

	 	(c)	If an Officer whose facsimile signature is on a Note or a Notation of Guarantee no longer holds that office at the time the Trustee authenticates the Note on which the Guarantee is endorsed, the Guarantee shall be valid
nevertheless. 

  

	 	(d)	The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Guarantee set forth in this First Supplemental Indenture on behalf of the Guarantor.

  

	5.3	Limitation of Guarantor’s Liability; Certain Bankruptcy Events 

  

	 	(a)	The Guarantor, and by its acceptance hereof each Holder, hereby confirms that it is the intention of all such parties that the Guarantee Obligations of the Guarantor pursuant to its Guarantee not constitute a fraudulent
transfer or conveyance for purposes of any Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law. To effectuate the foregoing intention, the Holders and the Guarantor hereby
irrevocably agree that the Guarantee Obligations of the Guarantor under this Article V shall be limited to the maximum amount as shall, after giving effect to all other contingent and fixed liabilities of the Guarantor, result in the Guarantee
Obligations of the Guarantor under the Guarantee not constituting a fraudulent transfer or conveyance. 

  

	 	(b)	The Guarantor hereby covenants and agrees, to the fullest extent that it may do so under applicable law, that in the event of the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Partnership,
the Guarantor shall not file (or join in any filing of), or otherwise seek to participate in the filing of, any motion or request seeking to stay or to prohibit (even temporarily) execution on the Guarantee and hereby waives and agrees not to take
the benefit of any such stay of execution, whether under Section 362 or 105 of the Bankruptcy Law or otherwise. 

  
 16 

	5.4	Application of Certain Terms and Provisions to the Guarantor 

  

	 	(a)	For purposes of any provision of the Indenture which provides for the delivery by the Guarantor of an Officer’s Certificate and/or an Opinion of Counsel, the definitions of such terms in Section 2.1 hereof
shall apply to the Guarantor as if references therein to the Partnership or the Guarantor, as applicable, were references to the Guarantor. 

  

	 	(b)	Upon any demand, request or application by the Guarantor to the Trustee to take any action under the Indenture, the Guarantor shall furnish to the Trustee such certificates and opinions as are required in
Sections 10.4 and 10.5 of the Base Indenture, as if all references therein to the Partnership were references to the Guarantor. 

ARTICLE 6 
 ADDITIONAL
COVENANTS 
 The following additional covenants shall apply with respect to the Notes so long as any of the Notes remain outstanding.

  

	6.1	Maintenance of Office or Agency 

 The Partnership will maintain an office or agency in
the United States where the Notes may be surrendered for registration of transfer or exchange or for presentation for payment or redemption and where notices and demands in respect of the Notes and the Indenture may be served. As of the date of the
Indenture, such office shall be the Corporate Trust Office and, at any other time, at such other address as the Trustee may designate from time to time by notice to the Partnership. The Partnership will give prompt written notice to the Trustee of
the location, and any change in the location, of such office or agency not designated or appointed by the Trustee. If at any time the Partnership shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office; provided, however, no service of legal process on the Partnership may be made at any office of the Trustee. 

The Partnership may also from time to time designate co-registrars and one or more offices or agencies where the Notes may be presented or
surrendered for any or all such purposes and may from time to time rescind such designations. The Partnership will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other
office or agency. 
 The Partnership hereby initially designates the Trustee as Paying Agent, Registrar and Custodian and the Corporate
Trust Office shall be considered as one such office or agency of the Partnership for each of the aforesaid purposes. 

  
 17 

	6.2	Appointments to Fill Vacancies in Trustee’s Office 

 The Partnership, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, upon the terms and conditions and otherwise as provided in Section 7.8 of the Base Indenture, a Trustee, so that there shall at all times be a Trustee hereunder. 

 

	6.3	Change of Control Repurchase Event 

  

	 	(a)	If a Change of Control Repurchase Event occurs, unless the Partnership has provided notice of the redemption of the Notes pursuant to Section 4.2 hereof, each holder of Notes will have the right to require the
Partnership to purchase some or all (in principal amounts of $25 or an integral multiple of $25 in excess thereof) of such Holder’s Notes pursuant to the offer described below (the “Change of Control Offer”). 

 

	 	(b)	Any Change of Control Offer will include a cash offer price of 102% of the principal amount of any Notes purchased plus accrued and unpaid interest to the date of purchase (the “Change of Control
Payment”). If a Change of Control Offer is required, within 30 days following a Change of Control Repurchase Event or at the Partnership’s option, prior to any Change of Control Repurchase Event, but after the public announcement of a
Change of Control Repurchase Event, the Partnership will deliver a notice in a manner provided in Section 4.2 herein to each Holder (with a copy to the Trustee and the Paying Agent, if other than the Trustee) describing the Change of Control
Repurchase Event and offering to repurchase Notes on a specified date (the “Change of Control Payment Date”). The Change of Control Payment Date will be no earlier than 30 days and no later than 60 days from the date the notice is
sent. The Change of Control Offer shall, if given prior to the date of consummation of the Change of Control Repurchase Event, state that the offer to purchase is conditioned on the Change of Control Repurchase Event occurring on or prior to the
Change of Control Payment Date specified in the Change of Control Offer. 

  

	 	(c)	On the Change of Control Payment Date, the Partnership will, to the extent lawful: 

  

	 	(i)	accept for payment all Notes properly tendered and not withdrawn pursuant to the Change of Control Offer; 

  

	 	(ii)	deposit the Change of Control Payment with the Paying Agent in respect of all Notes so accepted; and 

  

	 	(iii)	deliver to the Trustee the Notes accepted and an Officer’s Certificate stating the aggregate principal amount of all Notes purchased by the Partnership and requesting that such Notes be cancelled.

  

	 	(d)	The Paying Agent will promptly send to each Holder of Notes properly tendered the Change of Control Payment for such Notes, and the Trustee will promptly authenticate and send, or cause to be transferred by book entry,
to each Holder a new Note in principal amount equal to any unpurchased portion of the Notes surrendered; provided that each new Note will be in a principal amount of $25 and integral multiples of $25 in excess thereof. 

 

	 	(e)	 The Partnership will comply with the requirements of Section 14(e) of the Exchange Act and any other securities laws or regulations to the extent
those laws and regulations are applicable to any Change of Control Offer. If the provisions of any of the applicable 

  
 18 

	 	
securities laws or securities regulations conflict with the provisions of this Section 6.3, the Partnership will comply with the applicable securities laws and regulations and will not be
deemed to have breached its obligations under the covenant described above by virtue of that compliance. 

  

	 	(f)	The Partnership shall not be required to make a Change of Control Offer upon a Change of Control Repurchase Event if a third party makes the Change of Control Offer in the manner, at the times and otherwise in
compliance with the requirements set forth in the Indenture applicable to a Change of Control Offer made by the Partnership and purchases all Notes validly tendered and not withdrawn under such Change of Control Offer or if notice of redemption has
been given pursuant to Section 4.2 hereof (and all of the Notes are redeemed on or prior to the Redemption Date specified in such notice). Notwithstanding anything to the contrary contained herein, a Change of Control Offer may be made in
advance of a Change of Control Repurchase Event, subject to one or more conditions precedent, including, but not limited to, the consummation of such Change of Control, if a definitive agreement is in place for the transaction that will give rise to
a Change of Control Repurchase Event at the time the Change of Control Offer is made. 

  

	6.4	Limitations on Incurrence of Debt 

  

	 	(a)	The Partnership will not, and will not permit any Subsidiary to, incur any Debt, other than Intercompany Debt, including that which is subordinate in right of payment to the Notes, if, immediately after giving effect to
the incurrence of such Debt and the application of the proceeds thereof, the ratio of the aggregate principal amount of all outstanding Debt to Adjusted Total Asset Value would be greater than 0.65 to 1.0. 

 

	 	(b)	The Partnership will not, and will not permit any Subsidiary to, incur any Debt if the ratio of Stabilized Consolidated Income Available for Debt Service to Stabilized Consolidated Interest Expense on the date on which
such additional Debt is to be incurred, on a pro forma basis, after giving effect to the incurrence of such Debt and to the application of the proceeds thereof, would be less than 1.5 to 1.0. 

 

	6.5	Provision of Financial Information 

  

	 	(a)	 Whether or not the Partnership is subject to Section 13 or 15(d) of the Exchange Act, during any time that any Notes remain outstanding, the
Partnership will, to the extent permitted under the Exchange Act, file with the SEC the annual reports, quarterly reports and other documents which the Partnership would have been required to file with the SEC pursuant to such Section 13 or
15(d) if the Partnership were so subject (the “Financial Information”), such documents to be filed with the SEC on or prior to the respective dates (the “Required Filing Dates”) by which the Partnership would have
been required so to file such documents if the Partnership were so subject; provided, however, that notwithstanding the foregoing, during any period in which the Partnership is not subject to the reporting requirements of Sections 13 or 15(d)
of the Exchange Act, the REIT may elect to satisfy the Partnership’s obligations under this section by filing with the SEC the Financial Information required to be filed by the REIT under Sections 13 or 15(d) of the Exchange Act. The
Partnership also will in any event (unless available on the Commission’s Electronic Data Gathering, Analysis and Retrieval System (or successor system)) within 15 days of each Required Filing Date (i) transmit by mail (or other permissible
means under the Exchange Act) to all Holders, without cost to such 

  
 19 

	 	
Holders, copies of the Financial Information; and (ii) file with the Trustee copies of the Financial Information. If the filing of the Financial Information by the Partnership or the REIT,
as applicable, with the SEC is not permitted under the Exchange Act, the Partnership will promptly upon written request and payment of the reasonable cost of duplication and delivery, supply copies of the Financial Information to any prospective
Holder. 

  

	 	(b)	Delivery of such reports, information and documents to the Trustee pursuant to this Section 6.5 is for informational purposes only and the Trustee’s receipt of such shall not constitute actual or constructive
knowledge or notice of any information contained therein or determinable from information contained therein, including the Partnership’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on
an Officer’s Certificate with respect thereto). The Trustee will have no responsibility whatsoever to monitor whether such filing or posting has occurred or the timeliness of such filing or posting. 

 

	6.6	Maintenance of Properties 

 The Partnership will, and will cause each of its Subsidiaries
to, keep all of its material properties used or useful in the conduct of its business or the business of any Subsidiary to be maintained and kept in good condition, repair and working order supplied with all necessary equipment and will cause to be
made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in judgment of the Partnership may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at
all times; provided, however, that the Partnership and its Subsidiaries shall not be prevented from selling or otherwise disposing of for value their respective properties in the ordinary course of their respective businesses. 

 

	6.7	Insurance 

 The Partnership will, and will cause each of its Subsidiaries to, keep all of
its insurable properties insured against loss or damage at least equal to their then full insurable value with insurers of recognized responsibility and having an A.M. Best policy holder’s rating of not less than A-V. 

 

	6.8	Payment of Taxes and Other Claims 

 The Partnership will pay or discharge or cause to be
paid or discharged, before the same shall become delinquent, (1) all taxes, assessments and governmental charges levied or imposed upon it or any Subsidiary or upon the income, profits or property of the Partnership or any Subsidiary, and
(2) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a lien upon the property of the Partnership or any Subsidiary; provided, however, that the Partnership shall not be required to pay or discharge or
cause to be paid or discharged any such tax, assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings or for which the Partnership has set apart and maintains an adequate
reserve. Neither the Trustee, nor any Agent, shall be responsible or have liability for the payment of tax, assessment, charge or levy, other than such as may be required under the normal course of the Trustee’s or Agent’s business. 

  
 20 

	6.9	Consolidation, Merger and Sale of Assets 

 The Partnership will not consolidate with or
merge with or into, or sell, convey, transfer or otherwise dispose of all or substantially all of its and its Subsidiaries’ (taken as a whole) property and assets (as an entirety or substantially an entirety in one transaction or a series of
related transactions) to, any person or permit any person (other than a Subsidiary) to merge with or into it unless: 
  

	 	(a)	the Partnership shall be the continuing person, or the person (if other than the Partnership) formed by such consolidation or into which the Partnership is merged or that acquired such property and assets of the
Partnership shall be a corporation, limited liability company, partnership (including a limited partnership) or trust organized and validly existing under the laws of the United States of America or any state of the United States or the District of
Columbia and shall expressly assume, by a supplemental indenture, executed and delivered to the Trustee, all of the obligations of the Partnership with respect to the Notes and under the Indenture; 

 

	 	(b)	immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing; and 

  

	 	(c)	the Partnership delivers to the Trustee an Officer’s Certificate and an Opinion of Counsel, in each case stating that such consolidation, merger or transfer and such supplemental indenture complies with this
Section 6.9 and that all conditions precedent provided for herein relating to such transaction have been complied with and, with respect to the Opinion of Counsel, that the supplemental indenture constitutes a valid and binding obligation
enforceable against the Partnership, or the person (if other than the Partnership) formed by such consolidation or into which such Partnership is merged or that acquired all or substantially all of such Partnership and its Subsidiaries’
property and assets. 

 ARTICLE 7 

DEFAULTS AND REMEDIES 

Sections 7.1, 7.2 and 7.3 hereof shall replace Sections 6.1, 6.2 and 6.7, respectively, of the Base Indenture with respect to the
Notes only. 
  

	7.1	Events of Default 

 “Event of Default,” wherever used herein or in the
Base Indenture with respect to the Notes, means any one of the following events: 
  

	 	(a)	default in the payment of principal of, or premium, if any, on any Note, or the Redemption Price due with respect to any Note, when they are due and payable at maturity, upon acceleration, redemption or otherwise;

  

	 	(b)	default in the payment of interest on any Note when they are due and payable, and such default continues for a period of 30 days; 

  

	 	(c)	the Partnership or its Subsidiaries do not comply with their obligations under Section 6.9 hereof; 

  

	 	(d)	the Partnership fails to tender payment for the Notes upon a Change of Control Repurchase Event when required under Section 6.3 hereof, when such payment remains unpaid 60 consecutive days after issuance of
requisite notice; 

  

	 	(e)	the Partnership or its Subsidiaries default in the performance of or breach any other covenant or agreement of the Partnership or the Subsidiaries in the Indenture or under the Notes (other than a default specified in
clause (a), (b), (c) or (d) above) and such default or breach continues for 90 consecutive days after written notice by the Trustee or the Holders of 25% or more in aggregate principal amount of the Notes; 

  
 21 

	 	(f)	there occurs with respect to any issue or issues of Debt of the REIT, the Partnership or any Significant Subsidiary of the Partnership having an outstanding principal amount in excess of $20,000,000 singly or in
aggregate principal amount for all such issues of all such persons, whether such Debt now exists or shall hereafter be created, 

  

	 	(i)	an event of default that has caused the Holder thereof to declare such Debt to be due and payable prior to its stated maturity and such Debt has not been discharged in full or such acceleration has not been rescinded or
annulled within 30 days of such acceleration; and/or 

  

	 	(ii)	the failure to make a principal payment at the final (but not any interim) fixed maturity and such defaulted payment shall not have been made, waived or extended within 30 days of such payment default;

 provided, however, that in the case of either (i) or (ii) above, if such event of default, acceleration or payment
default is contested by the Partnership, a final and non-appealable judgment or order confirming the existence of the default and/or the lawfulness of the acceleration, as the case may be, shall have been entered; 

 

	 	(g)	any final and non-appealable judgment or order for the payment of money in excess of $20,000,000 singly or in the aggregate for all such final judgments or orders against all such persons: 

 

	 	(i)	shall be rendered against the REIT, the Partnership or any Significant Subsidiary of the Partnership and shall not be paid or discharged and 

 

	 	(ii)	there shall be any period of 60 consecutive days following entry of the final judgment or order that causes the aggregate amount for all such final judgments or orders outstanding and not paid or discharged against all
such persons to exceed $20,000,000 during which a stay of enforcement of such final judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; 

 

	 	(h)	a court of competent jurisdiction enters a decree or order for: 

  

	 	(i)	relief in respect of the REIT, the Partnership or any Significant Subsidiary of the Partnership in an involuntary case under any applicable Bankruptcy Law now or hereafter in effect, 

 

	 	(ii)	appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the REIT, the Partnership or any Significant Subsidiary of the Partnership or for all or substantially all of the
property and assets of the REIT, the Partnership or any Significant Subsidiary of the Partnership or 

  

	 	(iii)	the winding up or liquidation of the affairs of the REIT, the Partnership or any Significant Subsidiary of the Partnership 

and, in each case, such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or 

  
 22 

	 	(i)	the REIT, the Partnership or any Significant Subsidiary of the Partnership: 

  

	 	(i)	commences a voluntary case under any applicable Bankruptcy Law now or hereafter in effect, or consents to the entry of an order for relief in an involuntary case under such law, 

 

	 	(ii)	consents to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Partnership or such Significant Subsidiary or for all or substantially
all of the property and assets of the REIT, the Partnership or such Significant Subsidiary of the Partnership, or 

  

	 	(iii)	effects any general assignment for the benefit of its creditors. 

  

	7.2	Acceleration of Maturity; Rescission and Annulment 

 If an Event of Default with respect
to the Notes at the time outstanding occurs and is continuing (other than an Event of Default referred to in Section 7.1(h) or (i) hereof), then in every such case the Trustee or the Holders of not less than 25% in principal amount of the
outstanding Notes may, by a notice in writing to the Partnership (and to the Trustee if given by the Holders), declare to be due and payable immediately the principal of, and accrued and unpaid interest, if any, on all of the Notes, and upon any
such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any, shall become immediately due and payable. If an Event of Default specified in Section 7.1(h) or (i) hereof shall occur, the principal
amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding Notes will automatically become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder of
outstanding Notes. 
 At any time after a declaration of acceleration with respect to Notes has been made, but before a judgment or decree
for payment of the money due has been obtained by the Trustee, the Holders of a majority in principal amount of the outstanding Notes, by written notice to the Partnership and the Trustee, may rescind and annul such declaration and the acceleration
if all Events of Default, other than the non-payment of accelerated principal and interest, if any, with respect to the Notes, have been cured or waived as provided in Section 6.13 of the Base Indenture. No such rescission and annulment shall
extend to or shall affect any subsequent default or Event of Default, or shall impair any right consequent thereon 
  

	7.3	Limitation on Suits 

 No Holder of the Notes shall have any right to institute any
proceeding, judicial or otherwise, with respect to the Indenture or for the appointment of a receiver or trustee, or for any remedy under the Indenture, unless: 
  

	 	(a)	such Holder has previously given to the Trustee written notice of a continuing Event of Default with respect to the Notes; 

  

	 	(b)	the Holders of at least 25% in principal amount of the outstanding Notes shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

  

	 	(c)	such Holder or Holders shall have offered to the Trustee indemnity or security reasonably satisfactory to the Trustee, against the costs, expenses and liabilities to be incurred in compliance with such request;

  

	 	(d)	the Trustee for sixty (60) days after its receipt of such notice, request and offer of indemnity or security reasonably satisfactory to the Trustee, has failed to institute any such proceeding; and

  

	 	(e)	no written direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of at least a majority in principal amount of the outstanding Notes. 

  
 23 

 ARTICLE 8 

AMENDMENTS AND WAIVERS 
  

	8.1	Without Consent of Holders 

 The Partnership, when authorized by the resolutions of the
Board of Directors of the Guarantor, the Guarantor and the Trustee may, from time to time, and at any time enter into an indenture or indentures supplemental without the consent of the Holders of the Notes hereto for any of the purposes set forth in
Section 9.1 of the Base Indenture, or to conform the text of the Indenture, any Guarantee or the Notes to any provision of the description thereof set forth in the Prospectus to the extent that such provision in the Prospectus was intended to
be a verbatim recitation of a provision of the Indenture, such Guarantee or the Notes (as certified in an Officer’s Certificate). 

Upon the written request of the Partnership, accompanied by a copy of the resolutions of the Board of Directors of the Guarantor certified by
the Guarantor’s Secretary or Assistant Secretary authorizing the execution of any supplemental indenture, the Trustee is hereby authorized to join with the Partnership and the Guarantor in the execution of any such supplemental indenture, to
make any further appropriate agreements and stipulations that may be therein contained and to accept the conveyance, transfer and assignment of any property thereunder, but the Trustee shall not be obligated to, but may in its discretion, enter into
any supplemental indenture that affects the Trustee’s own rights, duties, liabilities or immunities under the Indenture or otherwise. 

Any supplemental indenture authorized by the provisions of this Section 8.1 may be executed by the Partnership, the Guarantor and the
Trustee without the consent of the Holders of any of the Notes at the time outstanding, notwithstanding any of the provisions of Section 9.2 or 9.3 of the Base Indenture. 

ARTICLE 9 
 MISCELLANEOUS
PROVISIONS 
  

	9.1	Ratification of Indenture 

 Except as expressly modified or amended hereby, the Indenture
continues in full force and effect and is in all respects confirmed and preserved. 
  

	9.2	Governing Law 

 THIS SUPPLEMENTAL INDENTURE AND THE SECURITIES, INCLUDING ANY CLAIM OR
CONTROVERSY ARISING OUT OF OR RELATING TO THE SUPPLEMENTAL INDENTURE OR THE SECURITIES, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS THEREOF OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW). EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE AND THE NOTES OR
THE TRANSACTION CONTEMPLATED HEREBY. 

  
 24 

	9.3	Counterparts 

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

	9.4	Calculations in Respect of the Notes 

 Except as explicitly specified otherwise herein,
the Partnership will be responsible for making all calculations required under the Indenture and the Notes. The Partnership will make all these calculations in good faith and, absent manifest error, the Partnership’s calculations will be final
and binding on the Holders. The Partnership will provide a schedule of its calculations to the Trustee, and the Trustee is entitled to rely upon the accuracy of the Partnership’s calculations without independent verification. The Trustee will
forward the Partnership’s calculations to any Holder upon written request. 
  

	9.5	Successors and Assigns 

 This Supplemental Indenture shall be binding upon the
Partnership and the Guarantor, and their respective successors and assigns, and inure to the benefit of the respective successors and assigns of the Trustee and the Holders. 
  

	9.6	Rights of Holders Limited 

 Notwithstanding anything herein to the contrary, the rights
of Holders with respect to this Supplemental Indenture and the Guarantee shall be limited in the manner and to the extent the rights of Holders are limited under the Indenture with respect to the Indenture and the Securities. 

 

	9.7	Rights and Duties of Trustee 

 The rights and duties of the Trustee shall be determined
by the express provisions of the Base Indenture and, except as expressly set forth in this Supplemental Indenture, nothing in this Supplemental Indenture shall in any way modify or otherwise affect the Trustee’s rights and duties thereunder.
The Trustee makes no representation or warranty, express or implied, as to the validity of this Supplemental Indenture and, except insofar as relates to the validity hereof with respect to the Trustee specifically, the Trustee shall not be liable in
connection therewith. The Trustee makes no representation or warranty, express or implied, as to the accuracy or completeness of any information contained in any offering or disclosure document related to the sale of the Notes, except for such
information that specifically pertains to the Trustee itself, or any information incorporated therein by reference as it relates specifically to the Trustee. If and when the Trustee shall be or become a creditor of the Partnership (or any other
obligor upon the Notes), excluding any creditor relationship listed in TIA Section 311(b), the Trustee shall be subject to the provisions of the TIA regarding the collection of claims against the Partnership (or any such other obligor). If the
Trustee has or shall acquire a conflicting interest within the meaning of the TIA, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the TIA and the Indenture.

  

	9.8	Notices 

 Any notice or communication by the Partnership, the Guarantor or the Trustee to
the other, or by a Holder of the Notes to the Partnership, the Guarantor or the Trustee, is duly given if in writing and delivered in person, sent electronically in PDF format or mailed by first-class mail: 

If to the Partnership or the Guarantor: 
  

			
	Sotherly Hotels Inc.
	410 W. Francis Street
	Williamsburg, Virginia 23185
	Facsimile:	 	  (757) 229-8801
	Attention:	 	  Andrew M. Sims, Chief Executive Officer

  
 25 

 With a copy (which will not constitute notice) to: 

 

			
	Baker & McKenzie LLP
	815 Connecticut Avenue, N.W.
	Washington, D.C. 20006
	Facsimile:	 	  (202) 452-7074
	Attention:	 	  Thomas J. Egan, Esq.

 If to the Trustee: 
  

			
	Wilmington Trust, National Association
	Rodney Square North
	1100 N. Market Street
	Wilmington, DE 19890
	Facsimile:	 	(302) 636-4145
	Attention:	 	W. Thomas Morris II

 The Partnership, the Guarantor or the Trustee by written notice to the others may designate additional or
different addresses for subsequent notices or communications. 
 Except as otherwise provided in the Indenture, any notice or communication
to a Holder of the Notes shall be mailed by first-class mail to his address shown on the register kept by the Registrar, provided that notices given to Holders holding Notes in book-entry form may be given through the facilities of the Depository or
any successor depository. Failure to mail a notice or communication to a Holder of the Notes or any defect in it shall not affect its sufficiency with respect to other Holders of the Notes or any other Series. 

If a notice or communication is mailed or published in the manner provided above, within the time prescribed, it is duly given, whether or not
the Securityholder receives it. If a notice or communication is delivered in person, by courier, telexed or by facsimile transmission (with confirmation of receipt) within the time prescribed, it is duly given. 

 

	9.9	Headings, etc. 

 The headings of the Articles and Sections of this Supplemental Indenture
have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof. 
  

	9.10	Conflicts 

 In the event of any conflict between the terms of this Supplemental Indenture
and the terms of the Indenture, the terms of this Supplemental Indenture shall control. 

  
 26 

	9.11	Trust Indenture Act Controls 

 If any provision of this Supplemental Indenture limits,
qualifies, or conflicts with another provision which is required or deemed to be included in this Supplemental Indenture by the TIA, such required or deemed provision shall control. 

 

	9.12	Force Majeure 

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

	9.13	U.S.A. Patriot Act 

 The parties hereto acknowledge that in accordance with
Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or
legal entity that establishes a relationship or opens an account with the Trustee. 
 [SIGNATURE PAGE FOLLOWS] 

  
 27 

 EXECUTION 

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

 

					
	SOTHERLY HOTELS LP, as issuer of the Notes
	
	By: Sotherly Hotels Inc., its general partner
		
	By:	 	 /s/ David R. Folsom

		 	Name:	 	David R. Folsom
		 	Title:	 	President and Chief Operating Officer
	
	SOTHERLY HOTELS INC., as Guarantor
		
	By:	 	 /s/ David R. Folsom

		 	Name:	 	David R. Folsom
		 	Title:	 	President and Chief Operating Officer
	
	WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	 /s/ W. Thomas Morris, II

		 	Name:	 	W. Thomas Morris, II
		 	Title:	 	Vice President

 Exhibit A 

Form of Global Note 

[see attached] 

 EXHIBIT A 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITORY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 3.12 OF THE SUPPLEMENTAL INDENTURE (AS DEFINED BELOW),
(2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 3.12 OF THE FIRST SUPPLEMENTAL INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THE BASE
INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUER. 
 UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF
THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK 10041) (“DTC”) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 SOTHERLY HOTELS LP 7.00% Senior
Unsecured Notes due 2019 
 CUSIP No. 83600E 109 

ISIN US83600E1091 
  

			
	No. 1	  	$25,300,000

 1,012,000 Units 

SOTHERLY HOTELS LP, a Delaware limited partnership (the “Issuer”), for value received, promises to pay to Cede &
Co., or its registered assigns, the principal sum of TWENTY FIVE MILLION THREE HUNDRED THOUSAND AND 00/100 DOLLARS or such other amount as is provided in a schedule attached hereto on November 15, 2019. 

Interest Payment Dates: February 15, May 15, August 15 and November 15, commencing February 15, 2015. 

Record Dates: February 1, May 1, August 1 and November 1. 

Reference is made to the further provisions of this Note contained herein, which will for all purposes have the same effect as if set forth at
this place. 

 IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by its
duly authorized officer. 
 Dated: November 21, 2014 
  

					
	SOTHERLY HOTELS LP, as Issuer,
		
	By:	 	Sotherly Hotels Inc., its general partner
			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the 7.00% Senior Unsecured Notes due 2019 described in the within-mentioned Indenture. 

Dated: November 21, 2014 
  

					
	WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee,
			
		 	By:	 	  

		 	Authorized Signatory

 7.00% Senior Unsecured Notes due 2019 

This Note is one of the series designated on the face hereof as 7.00% Senior Unsecured Notes due 2019 (the “Notes”), which was
issued under the Supplemental Indenture (as defined below). Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 

SECTION 1. Interest. Sotherly Hotels LP, a Delaware limited partnership (the “Issuer”), promises to pay interest on
the principal amount of this Note at 7.00% per annum from November 21, 2014, until maturity. The Issuer will pay interest quarterly on each Interest Payment Date, or if any such day is not a Business Day, on the next succeeding Business
Day (as if it were made on the date such payment was due and no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date. Interest on the Notes will accrue from the most recent date to which interest
has been paid or, if no interest has been paid, from November 21, 2014. The Issuer shall pay any Defaulted Interest as provided in Section 3.6 of the Supplemental Indenture. Interest will be computed on the basis of a 360-day year of
twelve 30-day months. 
 SECTION 2. Method of Payment. The Issuer will pay interest on the Notes to the persons who are registered
Holders at the close of business on the Record Date next preceding the Interest Payment Date, except as provided in Section 3.6 of the Supplemental Indenture (as defined below) with respect to defaulted interest. The Issuer shall pay principal,
premium, if any, and interest on the Notes in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts (“U.S. Legal Tender”). The Issuer shall pay or
cause the Paying Agent to pay interest on this Note by wire transfer of immediately available funds to the account of the Depository or its nominee. Until otherwise designated by the Issuer, the Issuer’s office or agency will be the Corporate
Trust Office. 
 SECTION 3. Paying Agent and Registrar. Initially, Wilmington Trust, National Association, the Trustee under the
Indenture, will act as Paying Agent and Registrar. The Issuer may change any Paying Agent or Registrar without notice to any Holder. Except as provided in the Indenture, the Issuer or any of its Subsidiaries may act in any such capacity. 

SECTION 4. Indenture. The Issuer issued the Notes under (i) that certain First Supplemental Indenture dated as of
November 21, 2014 (“Supplemental Indenture”) by and among the Issuer, the Guarantor and the Trustee and (ii) that certain Indenture dated as of November 21, 2014 (the “Base Indenture,” and together with the
Supplemental Indenture, the “Indenture”). Subject to the terms of the Indenture, the Issuer shall be entitled to issue Additional Notes pursuant to Section 3.4 of the Supplemental Indenture. The terms of the Notes include those
stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb) (the “Trust Indenture Act”). The Notes are subject to all such terms,
and Holders are referred to the Indenture and the Trust Indenture Act for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be
controlling. 
 SECTION 5. Optional Redemption. At any time on or after November 15, 2017, the Issuer will be entitled at its
option to redeem all or any portion of the Notes at a Redemption Price equal to 101% of the principal amount of such Notes plus any accrued and unpaid interest to, but not including, the Redemption Date (subject to the right of each Holder on the
relevant Record Date to receive interest due on the relevant Interest Payment Date falling prior to or on the redemption date). 
 SECTION
6. Notice of Redemption. Subject to Section 4.2 of the Supplemental Indenture, notice of any optional redemption of any Notes will be delivered to Holders (with a copy to the Trustee) at their addresses, as shown in the Notes register,
not more than 60 nor less than 30 days prior to the date fixed for redemption. The notice of redemption will specify, among other items, the redemption price and the principal amount of the Notes held by the holder to be redeemed. No Notes of $25 or
less shall be redeemed in part. On and after the Redemption Date interest ceases to accrue on Notes or portions thereof called for redemption subject to Section 4.3 of the Supplemental Indenture. 

SECTION 7. Mandatory Redemption or Sinking Fund Payment. The Issuer shall not be required to make mandatory redemption or sinking fund
payments with respect to the Notes. 
 SECTION 8. Repurchase at Option of Holder. Upon the occurrence of a Change of Control
Repurchase Event, and subject to certain conditions set forth in the Indenture, the Issuer will be required to offer to purchase all of the outstanding Notes at a purchase price equal to 102% of the principal amount thereof, plus accrued and unpaid
interest, if any, thereon to the date of repurchase. 

  
 3 

 SECTION 9. Denominations, Transfer Exchange. The Notes are issued in registered form
without coupons in denominations of $25 and integral multiples of $25 in excess thereof. The principal amount of the Notes will be reflected in units with each unit being worth $25. The transfer of Notes may be registered and Notes may be exchanged
as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Issuer may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Issuer and the Registrar are not required to transfer or exchange any Note selected for redemption. Also, the Issuer and the Registrar are not required to transfer or exchange any Notes for a period of 15 days before
a selection of Notes to be redeemed. 
 SECTION 10. Persons Deemed Owners. The registered Holder of a Note may be treated as its
owner for all purposes. 
 SECTION 11. Amendment, Supplement and Waiver. Subject to certain exceptions set forth in the Indenture,
the Indenture and the Notes may be amended or supplemented with the written consent of the Holders of at least a majority in aggregate principal amount of the Notes then outstanding, and any existing Default or compliance with any provision may be
waived with the consent of the Holders of a majority in aggregate principal amount of the Notes then outstanding. Without notice to or consent of any Holder, the parties thereto may amend or supplement the Indenture and the Notes as provided in the
Indenture. 
 SECTION 12. Defaults and Remedies. The Trustee and the Holders of the Notes will have the remedies following the
occurrence and during the continuance of an Event of Default as set forth in the Indenture. 
 SECTION 13. Restrictive Covenants. The
Indenture contains certain covenants, including as set forth in Article Six of the Supplemental Indenture. 
 SECTION 14. No Recourse
Against Others. No recourse for the payment of the principal of, premium, if any, or interest on any of the Notes or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement
of the Issuer in the Indenture, or in any of the Notes or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer, director, employee or controlling person of the Issuer or of any
successor Person thereof. Each Holder, by accepting the Notes, waives and releases all such liability. Such waiver and release are part of the consideration for issuance of the Notes. 

SECTION 15. Authentication. This Note shall not be valid until authenticated by the manual signature of the Trustee or an
authenticating agent. 
 SECTION 16. Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such
as: TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

SECTION 17. CUSIP and ISIN Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Issuer has caused CUSIP and ISIN numbers to be printed on the Notes and the Trustee may use CUSIP or ISIN numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers
either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 

SECTION 18. Registered Form. The Notes are in registered form within meaning of Treasury Regulations Section 1.871-14(c)(1)(i) for
U.S. federal income and withholding tax purposes. 
 SECTION 19. Governing Law. This Note shall be governed by, and construed in
accordance with, the laws of the State of New York. 
 The Issuer will furnish to any Holder upon written request and without charge a copy
of the Indenture. 

  
 4 

 ASSIGNMENT FORM 

I or we assign and transfer this Note to 
  

 
  
  

 
  

Print or type name, address and zip code of assignee or transferee) 
  

 
  

(Insert Social Security or other identifying number of assignee or transferee) 

and irrevocably appoint an agent to transfer this Note on the books of the Issuer. The agent may substitute another to act for him. 

 

			
	Dated:	 	Signed:
		
		 	  

		 	(Sign exactly as name appears on the other side of this Note)
		
		 	  

	Signature Guarantee:	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the Trustee)

  
 5 

 OPTION OF HOLDER TO ELECT PURCHASE 

This undersigned Holder elects to have this Note purchased by the Issuer pursuant to Section 4.1 of the Supplemental Indenture: 

If you want to elect to have only part of this Note purchased by the Issuer pursuant to Section 4.1 of the Supplemental Indenture, state
the amount (in denominations of $25 and integral multiples of $25 in excess thereof): $         
  

			
	Dated:	 	Signed:
		
		 	  

		 	(Sign exactly as name appears on the other side of this Note)
		
		 	  

	Signature Guarantee:	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the Trustee)

  
 6 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTES 

The following exchanges of a part of this Global Note for an interest in another Global Note or for a Physical Note, or exchanges of a part of
another Global Note or Physical Note for an interest in this Global Note, have been made: 
  

									
	 Date of Exchange
	  	Amount of
decrease in
Principal Amount
of The Global Note	  	Amount of
increase in
Principal Amount
of this Global Note	  	Principal Amount
of this Global
Note following
such decrease
(or increase)	  	Signature of
authorized
signatory of
Trustee of
Note custodian
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  
 7 

 Exhibit B 

Form of Notation of Guarantee 

[see attached] 

 EXHIBIT B 

NOTATION OF GUARANTEE 
 For value
received, the Guarantor (which term includes any successor Person under the Indenture (as defined below)), jointly and severally, unconditionally guarantees, to the extent set forth in the Indenture and subject to the provisions in the Indenture,
dated as of November 21, 2014 (the “Base Indenture”) among Sotherly Hotels LP, as issuer (the “Company”), Sotherly Hotels Inc., as guarantor (the “Guarantor”) and
Wilmington Trust, National Association, as trustee (the “Trustee”), as amended and supplemented by the First Supplemental Indenture, dated as of November 21, 2014, (the “Supplemental Indenture”
and together with the Base Indenture the “Indenture”) among the Company, the Guarantor and the Trustee (a) the due and punctual payment of the principal of, premium, if any, and interest on the Notes, whether at
maturity, by acceleration, redemption or otherwise, the due and punctual payment of interest on overdue principal and premium, if any, and, to the extent permitted by law, interest, and the due and punctual performance of all other obligations of
the Company to the Holders or the Trustee all in accordance with the terms of the Indenture and (b) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that the same will be promptly paid in
full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. The obligations of the Guarantor to the Holders of the Notes and to the Trustee pursuant to the Guarantee
and the Indenture are expressly set forth in Article 5 of the Supplemental Indenture and reference is hereby made to the Indenture for the precise terms of the Guarantee. This Guarantee is subject to release as and to the extent set forth in
Section 5.1 of the Supplemental Indenture and Section 12.4 of the Base Indenture. Each Holder of a Note, by accepting the same agrees to and shall be bound by such provisions. Capitalized terms used herein and not defined are used herein
as so defined in the Indenture. 
 [Signature page follows.] 

 
			
	SOTHERLY HOTELS INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

 [Signature page to 

Notation of Guarantee]FY 2014 10-K EX 10.2.2

Jack in the Box Inc.
Compensation and Benefits Assurance Agreement

This COMPENSATION AND BENEFITS ASSURANCE AGREEMENT (this “Agreement”) is made, entered into, and is effective as of [Date] (the “Effective Date”) by and between Jack in the Box Inc. (hereinafter referred to as the “Company”) and the eligible Executive [Name] (hereinafter referred to as the “Executive”).

WHEREAS, the Executive is presently employed by the Company in a key management capacity in one of the following positions: Chief Executive Officer, Executive Vice President, Brand President, or Senior Vice President, and;

WHEREAS, the Executive possesses considerable experience and knowledge of the business and affairs of the Company concerning its policies, methods, personnel, and operations, and

WHEREAS, the Company desires assuring the continued employment of the Executive in a key management capacity and the Executive is desirous of having such assurances.

NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and agreement of the parties set forth in this Agreement, and of other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

Section 1.  Term of Agreement
This Agreement will commence on the Effective Date and shall continue in effect for two full calendar years (through [Date] ) (the “Initial Term”), superseding all earlier Compensation and Benefits Assurance Agreements entered into by and between the Company and the Executive.

The Initial Term of this Agreement automatically shall be extended for two additional calendar years at the end of the Initial Term, and then again after each successive two-year period thereafter (each such two-year period following the Initial Term a “Successive Period”).  However, either party may terminate this Agreement at the end of the Initial Term, or at the end of any Successive Period thereafter, by giving the other party written notice of intent not to renew, delivered at least six (6) months prior to the end of such Initial Term or Successive Period.  If such notice is properly delivered by either party, this Agreement, along with all corresponding rights, duties, and covenants shall automatically expire at the end of the Initial Term or Successive Period then in progress.

In the event that a “Change in Control” of the Company occurs (as defined in Section 2.4 herein) during the Initial Term or any Successive Period, upon the effective date of such Change in Control, the term of this Agreement shall automatically and irrevocably be renewed for a period of twenty-four (24) full calendar months from the effective date of such Change in Control.  This Agreement shall thereafter automatically terminate following the twenty-four (24) month Change in Control renewal period.  Further, this Agreement shall be assigned to, and shall be assumed by, the purchaser in such Change in Control, as further provided in Section 4 herein.

Section 2.  Severance Benefits
2.1.  Right to Severance Benefits. The Executive shall be entitled to receive from the Company Severance Benefits as described in Section 2.3 herein, if during the term of this Agreement there has been a Change in Control of the Company and if, within twenty-four (24) calendar months immediately thereafter, the Executive’s employment with the Company shall end due to a Qualifying Termination (as defined in Section 2.2 herein).  The Severance Benefits described in Sections 2.3(a), 2.3(b), and 2.3(c) herein shall be paid in cash to the Executive.

The Severance Benefits described in Sections 2.3(a), 2.3(b), 2.3(c), 2.3(d) and 2.3(e) shall be paid out of the general assets of the Company.

2.2.  Qualifying Termination.  In the event the Executive incurs a separation from service (as defined under Treasury Regulation section 1.409A-1(h) and without regard to any alternate definition thereunder) as a result of the occurrence of either of the following events during the 24-month period following a Change in Control of the Company (“Qualifying Termination”), the Company shall provide Executive Severance Benefits, as such benefits are described under Section 2.3 herein:

		
	(a)
	The Company’s involuntary termination of the Executive’s employment without Cause (as such term is defined below); and

		
	(b)
	The Executive’s voluntary termination of employment for Good Reason (as such term is defined below).

Notwithstanding the foregoing, a Qualifying Termination shall not include (i) a termination of the Executive’s employment within twenty-four (24) calendar months after a Change in Control by reason of death or disability (defined as a physical or mental condition that results in a total and permanent disability to such extent that the person is eligible for disability benefits under the federal Social Security Act) , (ii) the Executive’s voluntary termination without Good Reason, or (iii) the Company’s involuntary termination of the Executive’s employment for Cause.

In the event the Executive’s employment is terminated during the 24-month period following a Change in Control due to death or disability (defined as a physical or mental condition that results in a total and permanent disability to such extent that the person is eligible for disability benefits under the federal Social Security Act), any benefits or payments provided to the Executive will be provided in accordance with the terms of the Company’s standard severance policy then in effect.

		
	(c)
	Definitions of terms used in this section:

		
	(i)
	“Cause” shall be determined by a committee designated by the Board of Directors of the Company (“Compensation Committee”), in the exercise of good faith and reasonable judgment, and shall mean the occurrence of any of the following:

(1) a demonstrably willful and deliberate act or failure to act by the Executive (other than as a result of incapacity due to physical or mental illness) which is committed in bad faith, without reasonable belief that such action or inaction is in the best interests of the Company, which causes actual material financial injury to the Company and which act or inaction is not remedied within fifteen (15) business days of written notice from the Company; or

(2) the Executive’s conviction by a court of competent jurisdiction for committing an act of fraud, embezzlement, theft, or any other act constituting a felony involving moral turpitude or causing material harm, financial or otherwise, to the Company.

		
	(ii)
	“Good Reason” shall be determined by the Executive, in the exercise of good faith and reasonable judgment, and shall mean, without the Executive’s express written consent, the Executive’s resignation of Service upon the occurrence of any one or more of the following conditions, provided that the Executive first provides the Company with written notice of the existence of the applicable condition described in clauses (1) through (5) below no later than 90 days after the initial existence of such condition is known by the Executive and the Company fails to remedy such condition within 30 days of the date of such written notice.

		
	(1)
	the material diminution in the Executive’s authorities, duties or responsibilities, which shall include a material reduction or alteration in the nature or status of the Executive’s authorities, duties, or responsibilities, from those in effect as of ninety (90) calendar days prior to the Change in Control, other than an insubstantial and inadvertent act that is remedied by the Company promptly after receipt of notice thereof given by the Executive;

		
	(2)
	the Company requiring the Executive to be based at a location in excess of fifty (50) miles 

from the location of the Executive’s principal job location or office immediately prior to the Change in Control; except for required travel on the Company’s business to an extent consistent with the Executive’s then present business travel obligations;

		
	(3)
	a material reduction by the Company of the Executive’s Base Salary in effect on the Effective Date, or as the same shall be increased from time to time, excluding amounts (i) designated by the Company as payment toward reimbursement of expenses; or (ii) received under incentive or other bonus plans, regardless of whether or not the amounts are deferred;

		
	(4)
	a material reduction in the Company’s compensation, health and welfare benefits, retirement benefits, or perquisite programs under which the Executive receives value, as such program exists immediately prior to the Change in Control (however, the replacement of an existing program with a new program will be permissible (and not grounds for a Good Reason termination) if there is not a material reduction in the value to be delivered to the Executive under the new program); or

		
	(5)
	any material breach by the Company of its obligations under Section 4 of this Agreement (or under any other written agreement under which the Executive provides services to the Company or the Acquiring Corporation).

The Executive’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any circumstance constituting Good Reason herein.

2.3.  Description of Severance Benefits.  Subject to, and to the extent applicable, the payment distribution rules applicable to “specified employees” (as defined in Treasury Regulation section 1.409A) set forth in Section 6.12 herein, in the event that the Executive incurs a Qualifying Termination, the Company shall pay to the Executive and provide the Executive the following:

		
	(a)
	A lump-sum cash amount equal to the Executive’s unpaid Base Salary (as such term is defined in Section 2.7 herein), accrued vacation pay, un-reimbursed business expenses, and all other items earned by and owed to the Executive through and including the date of the Qualifying Termination; provided that any business expense reimbursements shall (i) be paid no later than the last day of the Executive’s tax year following the tax year in which the expense was incurred, (ii) not be affected by any other expense eligible for reimbursement in a tax year, and (iii) not be subject to liquidation or exchange for another benefit.  Such payment shall be payable within 90 days of the effective date of the Executive’s Qualifying Termination and constitute full satisfaction for these amounts owed to the Executive.

		
	(b)
	A lump-sum cash amount equal to the result obtained by multiplying (i) the Executive’s annual rate of Base Salary in effect upon the date of the Qualifying Termination or, if greater, the Executive’s annual rate of Base Salary in effect immediately prior to the occurrence of the Change in Control by (ii) the following multiple, as applicable to the Executive (such applicable multiple referred to herein as the “Multiple”):

		
	▪
	3.0x for Chief Executive Officer

		
	▪
	2.5x for Executive Vice President

		
	▪
	2.5x for Brand President

		
	▪
	1.5x for Senior Vice President 

Such payment shall be payable within 90 days of the effective date of the Executive’s Qualifying Termination and constitute full satisfaction for these amounts owed to the Executive.

		
	(c)
	A lump-sum cash amount equal to the result obtained by multiplying (i) the Multiple and (ii) the greater of: (I) the result of the Executive’s annualized Base Salary determined in (b) above multiplied by the Executive’s average annual incentive percentage for the last three (3) years prior to the effective date of the Change in Control or (II) the Executive’s average dollar amount of annual incentive paid for the last three (3) years prior to the Change in Control.  If the Executive 

does not have three (3) full years of annual incentive payments prior to a Change in Control, the Company will substitute the target annual incentive percentage for each missing year.  Such payment shall be payable within 90 days of the effective date of the Executive’s Qualifying Termination and constitute full satisfaction for these amounts owed to the Executive.
		
	(d)
	At the exact same cost to the Executive, and at the same coverage level as in effect as of the Executive’s date of the Qualifying Termination (subject to changes in coverage levels applicable to all employees generally), a continuation of the Executive’s (and the Executive’s eligible dependents) health insurance coverage for the following time periods from the date of the Qualifying Termination, as applicable (such applicable period referred to herein as the “Continuation Coverage Period”):

		
	▪
	36 months for Chief Executive Officer

		
	▪
	30 months for Executive Vice President

		
	▪
	30 months for Brand President

		
	▪
	18 months for Senior Vice President  

The Continuation Coverage Period will run concurrently with any coverage provided as required by the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”).  The difference between the fair market value of the cost of such continuation coverage and the amount the Executive pays for the coverage will be included in the Executive’s taxable income.  Any payments or benefits that the Executive receives during the Continuation Coverage Period shall (i) be paid no later than the last day of the Executive’s tax year following the tax year in which the expense was incurred, (ii) not be affected by any other expense eligible for reimbursement or benefit provided in a tax year, and (iii) not be subject to liquidation or exchange for another benefit.

The Continuation Coverage Period shall cease prior to the end of the eighteenth (18th) month of such period in the event the Executive becomes covered under health insurance coverage of a subsequent employer which does not contain any exclusion or limitation with respect to any preexisting condition of the Executive or the Executive’s eligible dependents.  For purposes of enforcing this offset provision, the Executive acknowledges and agrees to inform the Company as to the terms and conditions of any subsequent employment and the corresponding benefits earned from such employment.  The Executive shall provide, or cause a subsequent employer to provide, to the Company in writing correct, complete, and timely information concerning the benefits provided under such health insurance coverage

		
	(e)
	The Executive shall be entitled, at the expense of the Company, to receive standard outplacement services from a nationally recognized outplacement firm of the Executive’s selection, for period of up to one (1) year from the effective date of the Executive’s Qualifying Termination.

		
	(f)
	All unvested stock options, restricted stock and unit awards, and all performance-based share and unit awards granted under the Company’s stock incentive plans will become  vested as of the effective date of the Executive’s Qualifying Termination under the terms of the award agreement unless such award vested earlier in accordance with the terms of the award agreement and/or the terms of the stock incentive plan.

2.4.  Definition of “Change in Control.” “Change in Control” of the Company means, and shall be deemed to have occurred upon, the first to occur of any of the following events:

		
	(a)
	Any Person (other than those Persons in control of the Company as of the                            Effective Date, or other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company, or a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company) becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing fifty percent (50%) or more of (i) the then outstanding shares of the securities of the Company, or (ii) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors (“Company Voting Stock”); or

		
	(b)
	The majority of members of the Company’s  Board of Directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board of Directors before the date of the appointment; or

		
	(c)
	The stockholders of the Company approve: (i) a plan of complete liquidation of the Company; or (ii) an agreement for the sale or disposition of all or substantially all of the Company’s assets; or (iii) a merger, consolidation, or reorganization of the Company with or involving any other corporation, if immediately after such transaction persons who hold a majority of the outstanding voting securities entitled to vote generally in the election of directors of the surviving entity (or the entity owning 100% of such surviving entity) are not persons who, immediately prior to such transaction, held the Company Voting Stock.

However, in no event shall a “Change in Control” be deemed to have occurred, with respect to the Executive, if the Executive is part of a purchasing group which consummates the Change in Control transaction.  The Executive shall be deemed “part of a purchasing group” for purposes of the preceding sentence if the Executive is an equity participant in the purchasing company or group (except for: (i) passive ownership of less than two percent (2%) of the stock of the purchasing company; or (ii) ownership of equity participation in the purchasing company or group which is otherwise not significant, as determined prior to the Change in Control by a majority of the non-employee continuing Directors).

2.5.  Other Defined Terms. The following terms shall have the meanings set forth below:

		
	(a)
	“Base Salary” means, at any time, the then-regular annualized rate of pay which the Executive is receiving as a salary, excluding amounts (i) designated by the Company as payment toward reimbursement of expenses; or (ii) received under incentive or other bonus plans, regardless of whether or not the amounts are deferred.

		
	(b)
	“Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act (as such term is defined below).

		
	(c)
	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.

		
	(d)
	“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Section 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.

Section 3.  Excise Tax.
3.1     Internal Revenue Code Section 280G Excise Tax Provision. Notwithstanding anything in this Agreement or any other agreement with the Company or any affiliate to the contrary, in the event it shall be determined that (A) any payment, award, benefit or distribution (or any acceleration of any payment, award, benefit or distribution) by the Company (or any of its affiliated entities) or any entity which effectuates a Change in Control (or any of its affiliated entities) to or for the benefit of Executive (whether pursuant to the terms of this Agreement or otherwise) (each a “Payment” and together the “Payments”) would constitute a “parachute payment” within the meaning of Section 280G of the Code and would be subject to the excise tax imposed by Section 4999 of the Code or any successor provision (the “Excise Tax”), and (B) the reduction of the Payments to the maximum amount that could be paid to Executive without giving rise to the Excise Tax (the “Safe Harbor Cap”) would provide Executive with a greater after-tax amount (taking into account the Excise Tax as well as federal, state and local income and employment taxes) than if such Payments were not reduced, then the Payments shall be reduced to the Safe Harbor Cap. If the reduction of the Payments would not result in a greater after-tax result to Executive (taking into account the Excise Tax as well as federal, state and local income and employment taxes), then no Payments shall be reduced pursuant to this provision.  The Executive shall be solely responsible for payment of the Excise Tax and such other applicable federal, state, and local income and employment taxes.

3.2  Reduction of Payments. The reduction of the Payments, if applicable, shall be made by applying any reduction in the following order: (A) first, any cash amounts payable to Executive as a severance benefit as provided in Section 2.3(b) or (c) of this Agreement or otherwise; (B) second, any amounts payable on behalf of Executive for 

continued health insurance coverage under Section 2.3(d) of this Agreement or otherwise; (C) third, any other cash amounts payable to or on behalf of Executive under the terms of this Agreement, such as for outplacement benefits, or otherwise; (D) fourth, any payments or benefits under any nonqualified deferred compensation plan; (E) fifth, outstanding performance-based equity grants; and (F) finally, any time-vesting equity grants.  In each case, Payments will be reduced beginning with Payments that would be made last in time.20 

3.3  Determinations by Accounting Firm. All determinations required to be made under this Section 3 shall be made by the public accounting firm that is retained by the Company (the “Accounting Firm”).  The Accounting Firm shall provide detailed supporting calculations both to the Company and Executive within fifteen (15) business days of the receipt of notice from the Company or Executive that there has been a Payment, or such earlier time as is requested by the Company. All fees, costs and expenses (including, but not limited to, the costs of retaining experts) of the Accounting Firm shall be borne by the Company. The determination by the Accounting Firm shall be binding upon the Company and Executive.

Section 4.  Successors and Assignments
4.1.  Successors.  The Company will require any successor (whether via a Change in Control, direct or indirect, by purchase, merger, consolidation, or otherwise) of the Company to expressly assume and agree to perform the obligations under this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

4.2.  Assignment by Executive.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees.  If the Executive should die while any amount is still payable to the Executive hereunder had the Executive continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement, to the Executive’s devisee, legatee, or other designee, or if there is no such designee, to the Executive’s estate.

An Executive’s rights hereunder shall not otherwise be assignable.

Section 5.  Miscellaneous
5.1.  Administration.  This Agreement shall be administered by the Board of Directors of the Company (the “Board”), or by the Administrative Committee.  The Administrative Committee (with the approval of the Board, if the Board is not the Administrative Committee) is authorized to interpret this Agreement, to prescribe and rescind rules and regulations, and to make all other determinations necessary or advisable for the administration of this Agreement.

In fulfilling its administrative duties hereunder, the Administrative Committee may rely on outside counsel, independent accountants, or other consultants to render advice or assistance.

5.2.  Notices.  Any notice required to be delivered to the Company or the Administrative Committee by the Executive hereunder shall be properly delivered to the Company when personally delivered to (including by a reputable overnight courier), or actually received through the U.S. mail, postage prepaid, by:
Jack in the Box Inc.
9330 Balboa Avenue
San Diego, CA 92123
Attn: General Counsel

Any notice required to be delivered to the Executive by the Company or the Administrative Committee hereunder shall be properly delivered to the Executive when personally delivered to (including by a reputable overnight courier), or actually received through the U.S. mail, postage prepaid, by, the Executive at his or her last known address as reflected on the books and records of the Company.

Section 6.  Contractual Rights and Legal Remedies
		
	1.
	 Contractual Rights to Benefits.  This Agreement establishes in the Executive a right to the benefits to which 

the Executive is entitled hereunder.  However, except as expressly stated herein, nothing herein contained shall require or be deemed to require, or prohibit or be deemed to prohibit, the Company to segregate, earmark, or otherwise set aside any funds or other assets in trust or otherwise to provide for any payment to be made or required hereunder.
		
	2.
	 Legal Fees, Compensation and Expenses.  The Company shall pay all legal fees, costs of litigation, prejudgment interest, and other expenses which are incurred in good faith by the Executive.  Additionally, the Company should be required to continue to pay and provide the Executive’s compensation and benefits pending resolution of conflict.  The aforementioned payments are a result of the Company’s refusal to provide the Severance Benefits to which the Executive becomes entitled under this Agreement, or as a result of the Company’s (or any third party’s) contesting the validity, enforceability, or interpretation of the Agreement, or as a result of any conflict between the parties pertaining to this Agreement.

		
	3.
	 Arbitration.  The Executive shall have the right and option to elect (in lieu of litigation) to have any dispute or controversy arising under or in connection with this Agreement settled by arbitration conducted before a panel of three (3) arbitrators sitting in a location selected by the Executive within fifty (50) miles from the location of his or her job with the Company, in accordance with the rules of the American Arbitration Associations then in effect.  The Executive’s election to arbitrate, as herein provided, and the decision of the arbitrators in that proceeding, shall be binding on the Company and the Executive.  Judgment may be entered on the award of the arbitrator in any court having jurisdiction.  All expenses of such arbitration, including the fees and expenses of the counsel for the Executive, shall be borne by the Company.

		
	4.
	 Unfunded Agreement.  This Agreement is intended to be an unfunded general asset promise for a select, highly compensated member of the Company’s management and, therefore, is intended to be exempt from the substantive provisions of the Employee Retirement Income Security Act of 1974, as amended.

		
	5.
	 Exclusivity of Benefits.  Unless specifically provided herein, neither the provision of this Agreement nor the benefits provided hereunder shall reduce any amounts otherwise payable, or in any way diminish the Executive’s rights as an employee of the Company, whether existing now or hereafter, under any compensation and/or benefit plans, programs, policies, or practices provided by the Company, for which the Executive may qualify.

Vested benefits or other amounts which the Executive is otherwise entitled to receive under any plan, policy, practice, or program of the Company (i.e., including, but not limited to, vested benefits under the Company’s 401(k) plan), at or subsequent to the Executive’s date of Qualifying Termination shall be payable in accordance with such plan, policy, practice, or program except as expressly modified by this Agreement.

1. Includable Compensation.  Severance Benefits provided hereunder shall not be considered “includable compensation” for purposes of determining the Executive’s benefits under any other plan or program of the Company.

2. Employment Status. Nothing herein contained shall be deemed to create an employment agreement between the Company and the Executive, providing for the employment of the Executive by the Company for any fixed period of time.  The Executive’s employment with the Company is terminable at-will by the Company or the Executive and each shall have the right to terminate the Executive’s employment with the Company at any time, with or without Cause, subject to the Company’s obligation to provide Severance Benefits as required hereunder.

In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned by the Executive as a result of employment by another employer, other than as provided in Section 2.3(e) herein.

3. Entire Agreement.  This Agreement represents the entire agreement between the parties with respect to the subject matter hereof, and supersedes all prior discussions, negotiations, and agreements concerning the subject matter hereof, including, but not limited to, any prior severance agreement made between the Executive and the Company.

4. Tax Withholding. The Company shall withhold from any amounts payable under this 

Agreement any federal, state, city, or other taxes as legally required to be withheld.

5. Waiver of Rights.  Except as otherwise provided herein, the Executive’s acceptance of Severance Benefits, and any other payments required hereunder shall be deemed to be a waiver of all rights and claims of the Executive against the Company pertaining to any matters arising under this Agreement.

6. Severability.  In the event any provision of the Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Agreement, and the Agreement shall be construed and enforced as if the illegal or invalid provision had not been included.

7. Applicable Law.  To the extent not preempted by the laws of the United States, the laws of the State of Delaware shall be the controlling law in all matters relating to the Agreement.

8. Application of Section 409A.  Notwithstanding any inconsistent provision of this Agreement, to the extent the Company determines in good faith that (i) payments or benefits received or to be received by the Executive pursuant to this Agreement in connection with the Executive’s termination of employment would constitute deferred compensation subject to the rules of Treasury Regulation Section 409A, and (ii) the Executive is a “specified employee” under Section 409A, then only to the extent required to avoid the Executive’s incurrence of any additional tax or interest under Section 409A, such payment or benefit will be delayed until the earliest date following the Executive’s “separation from service” within the meaning of Section 409A which will permit the Executive to avoid such additional tax or interest.  The Company and the Executive agree to negotiate in good faith to reform any provisions of this Agreement to maintain to the maximum extent practicable the original intent of the applicable provisions without violating the provisions of Section 409A, if the Company deems such reformation necessary or advisable pursuant to guidance under Section 409A to avoid the incurrence of any such interest and penalties.  Such reformation shall not result in a reduction of the aggregate amount of payments or benefits under this Agreement.

IN WITNESS WHEREOF, the Company has executed this Agreement, to be effective as of the day and year first written above.

ATTEST:
Jack in the Box Inc.

By:_________________________            By:________________________________
 Corporate Secretary                             Leonard A. Comma
             Chairman & Chief Executive Officer

Participating Executive
                            
             By:________________________________
                                        [Name]
            [Title]

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