Document:

EX-4.2

 Exhibit 4.2 

MID-AMERICA APARTMENTS, L.P., 

Issuer 
 – and –

 U.S. BANK NATIONAL ASSOCIATION, 

Trustee 
  

 
 SECOND
SUPPLEMENTAL INDENTURE 
 Dated as of May 14, 2018 

to 
 INDENTURE 

Dated as of May 9, 2017 
  

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	ARTICLE 1	 
	
	DEFINITIONS AND OTHER	 
	PROVISIONS OF GENERAL APPLICATION	 
	Section 1.01.	 	 Certain Provisions of General Application
	  	 	2	 
	Section 1.02.	 	 Additional Definitions
	  	 	3	 
	
	ARTICLE 2	 
	
	FORM AND TERMS OF THE NOTES	 
	Section 2.01.	 	 Designation of Notes; Establishment of Form of Notes
	  	 	5	 
	Section 2.02.	 	 Amount
	  	 	5	 
	Section 2.03.	 	 Issuance
	  	 	5	 
	Section 2.04.	 	 Stated Maturity
	  	 	5	 
	Section 2.05.	 	 Interest
	  	 	5	 
	Section 2.06.	 	 Notes Not Convertible or Exchangeable
	  	 	6	 
	Section 2.07.	 	 Payable in Dollars; No Option for Other Payment Currency
	  	 	6	 
	Section 2.08.	 	 Payments by Reference to Index, Formula, etc.
	  	 	6	 
	Section 2.09.	 	 Covenant Defeasance
	  	 	6	 
	Section 2.10.	 	 No Payment of Additional Amounts
	  	 	6	 
	Section 2.11.	 	 Paying Agent and Security Registrar
	  	 	6	 
	Section 2.12.	 	 Other Terms
	  	 	7	 
	Section 2.13.	 	 References to Premium
	  	 	7	 
	
	ARTICLE 3	 
	
	ADDITIONAL COVENANTS FOR THE BENEFIT OF HOLDERS OF NOTES	 
	Section 3.01.	 	 Additional Covenants
	  	 	7	 
	
	ARTICLE 4	 
	
	AMENDMENTS TO THE INDENTURE	 
	FOR THE BENEFIT OF THE HOLDERS OF THE NOTES	 
	Section 4.01.	 	 Amendment to Section 402(3) of the Original
Indenture
	  	 	10	 
	
	ARTICLE 5	 
	
	MISCELLANEOUS PROVISIONS	 
	Section 5.01.	 	 Adoption, Ratification and Confirmation
	  	 	11	 

  
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	 	 	 	  	Page	 
	Section 5.02.	 	 Conflicts with Trust Indenture Act
	  	 	11	 
	Section 5.03.	 	 Effect of Headings and Table of Contents
	  	 	11	 
	Section 5.04.	 	 Successors and Assigns
	  	 	11	 
	Section 5.05.	 	 Separability Clause
	  	 	11	 
	Section 5.06.	 	 Benefits of Second Supplemental Indenture
	  	 	11	 
	Section 5.07.	 	 Governing Law
	  	 	11	 
	Section 5.08.	 	 Counterparts
	  	 	11	 
	Section 5.09.	 	 Conflicts with Original Indenture
	  	 	12	 
	Section 5.10.	 	 Acceptance by Trustee
	  	 	12	 
	Section 5.11.	 	 Numbering of Sections and Articles in the Indenture
	  	 	12	 
		
	Annex A-Form of Note	  	 	A-1	 

  
 ii 

 THIS SECOND SUPPLEMENTAL INDENTURE dated as of May 14, 2018 (this “Second
Supplemental Indenture”) between MID-AMERICA APARTMENTS, L.P., a limited partnership duly organized and existing under the laws of the State of Tennessee (hereinafter called the “Operating Partnership”), having its
principal executive office located at 6815 Poplar Avenue, Suite 500, Germantown, Tennessee 38138, and U.S. BANK NATIONAL ASSOCIATION, a national banking association duly organized and existing under the laws of the United States of America, as
trustee (hereinafter called the “Trustee”). 
 RECITALS 

WHEREAS, the Operating Partnership has executed and delivered to the Trustee an Indenture dated as of May 9, 2017 (the “Original
Indenture”; the Original Indenture, as the same may be amended or supplemented from time, including by this Second Supplemental Indenture, the “Indenture”) providing for the issuance from time to time of the Operating
Partnership’s Securities (as defined in the Original Indenture) in one or more series; 
 WHEREAS, Sections 201, 301 and 901(5) of
the Original Indenture provide that the Operating Partnership and the Trustee may, without the consent of any Holders (as defined in the Original Indenture) of Securities, enter into one or more indentures supplemental thereto to establish the form
and terms of the Securities of any series issued pursuant to the Original Indenture; 
 WHEREAS, the Operating Partnership desires to issue
the Operating Partnership’s 4.200% Senior Notes due 2028 (the “Notes”), a new series of Securities; 
 WHEREAS,
Section 901(2) of the Original Indenture provides that the Operating Partnership and the Trustee may, without the consent of any Holders of Securities, enter into one or more indentures supplemental thereto to add to the covenants of the
Operating Partnership for the benefit of the Holders of any or all series of Securities and Section 901(11) of the Original Indenture provides that the Operating Partnership and the Trustee may, without the consent of any Holders of Securities,
enter into one or more indentures supplemental thereto to amend or supplement any provisions contained therein so long as such amendment or supplement does not apply to any Outstanding Security issued prior to the date of the supplemental indenture
effecting such amendment or supplement, as the case may be, and entitled to the benefits of such provision; 
 WHEREAS, the Operating
Partnership, pursuant to the foregoing authority, proposes in and by this Second Supplemental Indenture to establish the form and terms of the Notes and to amend and supplement in certain respects the Original Indenture; and 

WHEREAS, the Operating Partnership has authorized the execution and delivery of this Second Supplemental Indenture and all things necessary to
make the Notes, when executed by the Operating Partnership and authenticated and delivered, the valid obligations of the Operating Partnership in accordance with their terms and to make this Second Supplemental Indenture a valid agreement of the
Operating Partnership in accordance with its terms have been done. 

 NOW, THEREFORE, THIS SECOND SUPPLEMENTAL INDENTURE WITNESSETH: 

For and in consideration of the premises and the purchase of the Notes by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Notes, as follows: 
 ARTICLE 1 

DEFINITIONS AND OTHER 
 PROVISIONS
OF GENERAL APPLICATION 
 Section 1.01. Certain Provisions of General Application. Except as
otherwise expressly provided in or pursuant to this Second Supplemental Indenture or unless the context otherwise requires, for all purposes of this Second Supplemental Indenture: 

 

	 	(1)	the terms defined in Section 1.02 of this Second Supplemental Indenture have the meanings assigned to them in Section 1.02, and include the plural as well as the singular; 

 

	 	(2)	the terms Operating Partnership, Trustee and Indenture and all other terms used herein which are defined in the Original Indenture shall, unless otherwise expressly provided in Section 1.02 of this Second
Supplemental Indenture, have the meanings assigned to them in the Original Indenture; 

  

	 	(3)	all other terms, if any, used herein which are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein; 

 

	 	(4)	all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP; 

  

	 	(5)	the words “herein,” “hereof,” “hereto” and “hereunder” and other words of similar import refer to this Second Supplemental Indenture as a whole and not to any particular Article,
Section or other subdivision; 

  

	 	(6)	the word “or” is always used inclusively (for example, the phrase “A or B” means “A or B or both”, not “either A or B but not both”); 

 

	 	(7)	provisions apply to successive events and transactions; 

  

	 	(8)	the term “merger” includes a statutory share exchange and the terms “merge” and “merged” have correlative meanings; 

 

	 	(9)	the masculine gender includes the feminine and the neuter; 

  

	 	(10)	references to agreements and other instruments include subsequent amendments and supplements thereto; 

  
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	 	(11)	if expressly so indicated herein, certain terms defined in Section 1.02 of this Second Supplemental Indenture supersede and replace, but only insofar as relates to the Notes, the corresponding definitions in the
Original Indenture; and 

  

	 	(12)	unless otherwise expressly stated or the context otherwise requires, references in this Second Supplemental Indenture (including, without limitation, references in any covenants or other provisions added to the Original
Indenture pursuant to this Second Supplemental Indenture) to the “date of the Indenture”, and similar references, mean May 14, 2018. 

Section 1.02. Additional Definitions. Section 101 of the Original Indenture is hereby amended
and supplemented, but solely insofar as relates to the Notes, to add the following definitions, all in appropriate alphabetical sequence: 

“Adjusted Total Assets” means, as of any date, the sum of (without duplication) (i) Undepreciated Real Estate Assets on
such date and (ii) all other assets (excluding accounts receivable and intangibles) of the Operating Partnership and its Subsidiaries on such date, all determined on a consolidated basis in accordance with GAAP. 

“Annual Debt Service Charge” for any period means interest expense of the Operating Partnership and its Subsidiaries for such
period including, without duplication, (1) all amortization of debt discount, (2) all accrued interest, (3) all capitalized interest and (4) the interest component of all capitalized lease obligations, all determined on a
consolidated basis in accordance with GAAP. 
 “Consolidated Income Available for Debt Service” for any period means the
Consolidated Net Income of the Operating Partnership and its Subsidiaries for such period, plus amounts which have been deducted and minus amounts which have been added for (without duplication): 

 

	 	(1)	interest expense on Debt, 

  

	 	(2)	provision for taxes based on income, 

  

	 	(3)	amortization of debt discount and deferred financing costs, 

  

	 	(4)	the income or expense attributable to transactions involving derivative instruments that do not qualify for hedge accounting in accordance with GAAP, 

 

	 	(5)	provisions for gains and losses on sales or other dispositions of properties and other investments, 

  

	 	(6)	depreciation and amortization, 

  

	 	(7)	gains or losses on early extinguishment of Debt, 

  

	 	(8)	all prepayment penalties and all legal, accounting, financial advisory and similar costs or fees incurred in connection with any debt financing or amendment thereto, acquisition, disposition, recapitalization or similar
transaction (regardless of whether such transaction is completed), 

  
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	 	(9)	the effect of any item that is non-cash and non-recurring, and 

  

	 	(10)	amortization of deferred charges, 

 all determined on a consolidated basis in accordance with GAAP. 

“Consolidated Net Income” for any period means the amount of net income (or loss) of the Operating Partnership and its
Subsidiaries for such period, excluding (without duplication) (1) gains and losses on sales of properties and other investments, (2) extraordinary items, (3) property valuation gains and losses (including impairment charges), and
(4) the portion of net income (loss) of the Operating Partnership and its Subsidiaries allocable to noncontrolling interest, all determined on a consolidated basis in accordance with GAAP. 

“Second Supplemental Indenture” means this Second Supplemental Indenture dated as of May 14, 2018, between the Operating
Partnership and the Trustee, as originally executed or as it may from time to time be amended or supplemented by one or more indentures supplemental to the Indenture entered into pursuant to the applicable provisions of the Indenture. 

“Notes” means the Operating Partnership’s 4.200% Senior Notes due 2028, issued pursuant to the Indenture. 

“Secured Debt” has the meaning set forth in Section 1015. 

“Undepreciated Real Estate Assets” means, as of any date, the cost (original acquisition and development cost plus capital
improvements) of real estate assets of the Operating Partnership and its Subsidiaries on such date, before depreciation and amortization, all determined on a consolidated basis in accordance with GAAP. 

“Unencumbered Total Asset Value” means, as of any date, the sum of (without duplication) (i) those Undepreciated Real
Estate Assets on such date which are not subject to a Lien securing Debt and (ii) all other assets (excluding accounts receivable and intangibles) of the Operating Partnership and its Subsidiaries on such date which are not subject to a Lien
securing Debt, all determined on a consolidated basis in accordance with GAAP; provided, however, that all investments by the Operating Partnership or any of its Subsidiaries in unconsolidated joint ventures, unconsolidated limited partnerships,
unconsolidated limited liability companies and other unconsolidated entities shall be excluded from Unencumbered Total Asset Value to the extent that such investments would have otherwise been included. 

“Unsecured Debt” means Debt of the Operating Partnership or any of its Subsidiaries that is not Secured Debt. 

  
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 ARTICLE 2 

FORM AND TERMS OF THE NOTES 
 
Section 2.01. Designation of Notes; Establishment of Form of Notes. Pursuant to Section 301 of the Original Indenture, there is hereby established a new series of Securities which shall be known and designated as the 4.200%
Senior Notes due 2028 and which are sometimes referred to in this Second Supplemental Indenture as the “Notes.” Pursuant to Section 201 of the Original Indenture, the Notes shall be substantially in the form attached hereto as
Annex A. 
 Section 2.02. Amount. The aggregate principal amount of the Notes which may be
authenticated and delivered under the Indenture is initially limited to $400,000,000, except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 304, 305,
306, 905 or 1107 of the Indenture, but subject to the Operating Partnership’s right to re-open such series of Securities from time and time for issuance of additional Securities of such series without notice to or the consent of any Holders of
Notes; provided, however, that notwithstanding the foregoing, the Notes may not be reopened if the Operating Partnership has effected satisfaction and discharge with respect to the Notes pursuant to Section 401 of the Indenture or has effected
legal defeasance or covenant defeasance with respect to the Notes pursuant to Section 
402 of the Indenture. 
 Section 2.03. Issuance. The Notes are issuable only as Registered
Securities without Coupons and may (but need not) bear a corporate or other seal of the Operating Partnership. The Notes shall be issued in book-entry form and evidenced by one or more permanent Global Securities of such series, the initial
Depository for the Global Securities of such series shall be The Depository Trust Company and the depository arrangements shall be those employed by whoever shall be the Depository with respect to the Global Securities of such series from time to
time. Notwithstanding the foregoing, certificated Notes in definitive form may be issued to beneficial owners of interests in Global Securities of such series in exchange for their respective interests in the Global Securities of such series under
the circumstances contemplated by Section 305 of the Indenture. 
 Section 2.04. Stated
Maturity. The final maturity date of the Notes on which the unpaid principal thereof shall be due and payable shall be June 15, 2028. 

Section 2.05. Interest. The principal of the Notes shall bear interest at the rate of
4.200% per annum from May 14, 2018, or from the most recent date to which interest has been paid or duly provided for on the Notes, payable semi-annually in arrears on June 15 and December 15 (each such date being an Interest
Payment Date for the Notes) of each year, commencing December 15, 2018, to the Holders of the Notes (or one or more Predecessor Securities of such series) registered as such at the close of business on June 1 or December 1, as the
case may be (each such date being a Regular Record Date for the Notes), immediately preceding such Interest Payment Dates, regardless of whether or not any such Regular Record Date is a Business Day. Interest on the Notes will be computed on the
basis of a 360-day year of twelve 30-day months. Any principal of, or premium, if any, or interest on any Notes which is not paid when due shall, to the extent permitted by applicable law, bear interest from the date 

  
 5 

 
such amount was originally due to the date of payment of such overdue amount at the rate of interest borne by the Notes. All such interest on overdue amounts shall, to the extent permitted by
applicable law, be payable on demand. The Operating Partnership shall not have any right to extend the Interest Payment Dates or interest payment periods for the Notes. 

Section 2.06. Notes Not Convertible or Exchangeable. The Notes shall not be convertible into or
exchangeable for Capital Stock or other securities or property (other than exchanges for other Notes as provided in the Indenture). 
 
Section 2.07. Payable in Dollars; No Option for Other Payment Currency. The principal of, and premium, if any, and interest on the Notes shall be payable in Dollars and the Operating Partnership shall not have any right to elect to
make, nor shall any Holder of Notes have any right to elect to receive, payment in respect of the Notes in any currency other than Dollars. 

Section 2.08. Payments by Reference to Index, Formula, etc. Other than amounts payable upon
redemption of the Notes at the option of the Operating Partnership prior to March 15, 2028, the amount of payments of principal of, and premium, if any, or interest on the Notes shall not be determined with reference to an index, formula or
other similar method. 
 Section 2.09. Covenant Defeasance. Section 402 (relating to legal
defeasance and covenant defeasance) of the Original Indenture, as amended, solely insofar as relates to the Notes, pursuant to Section 4.01 of this Second Supplemental Indenture) shall apply to the Notes; provided that (i) the Operating
Partnership may effect legal defeasance and covenant defeasance only with respect to all (and not less than all) of the Notes and (ii) the covenants and other obligations, which are subject (solely insofar as relates to the Notes) to covenant
defeasance shall be those set forth in the amendment and restatement of Section 402(3) of the Original Indenture set forth in Section 4.01 of this Second Supplemental Indenture. 

Section 2.10. No Payment of Additional Amounts. The Operating Partnership shall not be required to
pay Additional Amounts in respect of the Notes. 
 Section 2.11. Paying Agent and Security
Registrar. The Operating Partnership’s Office or Agency in the Borough of Manhattan, The City of New York where the Notes may be presented or surrendered for payment of principal of, and premium, if any, and interest on the Notes, where the
Notes may be surrendered for registration of transfer or exchange, and where notices and demands to or upon the Operating Partnership in respect of the Notes and the Indenture may be served shall initially be the Corporate Trust Office of the
Trustee in the Borough of Manhattan, The City of New York, which office at the date of this Second Supplemental Indenture is located at U.S. Bank National Association, Corporate Trust EX-NY-Wall, Administrator for Mid-America Apartments, 100
Wall Street, Suite 1600, New York, NY 10005; provided, however, that, subject to Section 1002 of the Indenture, the Operating Partnership may from time to time designate one or more other 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; and provided, further, that the Operating Partnership may subsequently appoint a different Office or Agency in the Borough of
Manhattan, The City of New York for such purposes. 

  
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 The Operating Partnership initially appoints the Trustee as the Security Registrar and Paying
Agent for the Notes, and the Trustee hereby accepts such appointment. The Operating Partnership may remove and replace the Security Registrar and Paying Agent for the Notes and appoint another Security Registrar and one or more other Paying Agents
with respect to the Notes, subject to compliance with the applicable provisions of the Indenture. 

Section 2.12. Other Terms. The Notes shall have such other terms and provisions as are set forth in
the form of Note attached hereto as Annex A, all of which terms and provisions are incorporated by referenced in and made a part of this Second Supplemental Indenture as if set forth in full herein. 

Section 2.13. References to Premium. As used in the Indenture and this Second Supplemental
Indenture with respect to the Notes and in the certificates evidencing the Notes, all references to “premium” on the Notes shall mean any amounts (other than accrued interest) payable upon the redemption of any Notes in excess of 100% of
the principal amount of such Notes. 
 ARTICLE 3 

ADDITIONAL COVENANTS FOR THE BENEFIT OF HOLDERS OF NOTES 

Section 3.01. Additional Covenants. 

Article Ten of the Original Indenture is hereby supplemented, but solely insofar as relates to the Notes, by adding the following new sections
to appear immediately after Section 1012 of the Original Indenture and to read in full as follows (and the Table of Contents in the Original Indenture is amended, but solely insofar as relates to the Notes, to insert the section numbers and
titles of the following sections in appropriate sequence): 
 “Section 1013. Limitation on Incurrence of Total Debt. 

“The Operating Partnership will not, and will not cause or permit any of its Subsidiaries to, incur any Debt if, immediately after giving
effect to the incurrence of such additional Debt and the application of the proceeds thereof on a pro forma basis, the aggregate principal amount of all outstanding Debt of the Operating Partnership and its Subsidiaries on a consolidated basis
determined in accordance with GAAP is greater than 60% of the sum of (without duplication): 
  

	 	“(1)	Adjusted Total Assets as of the end of the most recent fiscal quarter prior to the incurrence of such additional Debt; 

  

	 	“(2)	the aggregate purchase price of any real estate assets or mortgages receivable (or interests therein) acquired by the Operating Partnership or any of its Subsidiaries since the end of such fiscal quarter, including
those obtained by application of the proceeds of such additional Debt, and owned by the Operating Partnership or any of its Subsidiaries as of the date of incurrence of such additional Debt; and 

  
 7 

	 	“(3)	the aggregate amount of any securities offering proceeds received by (or contributed to) the Operating Partnership or any of its Subsidiaries since the end of such fiscal quarter (to the extent that such proceeds were
not used to acquire such real estate assets or mortgages receivable (or interests therein) or used to reduce Debt of the Operating Partnership or any of its Subsidiaries), including the proceeds obtained from the incurrence of such additional Debt,

 “determined on a consolidated basis in accordance with GAAP. 

“For clarity, it is understood and agreed that, for purposes of this Section 1013, Debt of a Person existing at the time such Person
is merged or consolidated with or into the Operating Partnership or any of its Subsidiaries or becomes a Subsidiary of the Operating Partnership shall be deemed to have been incurred by the Operating Partnership or such Subsidiary, as the case may
be, on the date of such merger or consolidation or the date such Person becomes a Subsidiary of the Operating Partnership, as the case may be. 

“Section 1014. Ratio of Consolidated Income Available for Debt Service to Annual Debt Service Charge. 

“The Operating Partnership will not, and will not cause or permit any of its Subsidiaries to, incur any Debt if the ratio of Consolidated
Income Available for Debt Service to the Annual Debt Service Charge for the four consecutive fiscal quarters most recently ended prior to the date on which such additional Debt is to be incurred is less than 1.5 to 1, on a pro forma basis after
giving effect to the incurrence of such additional Debt and to the application of the proceeds thereof, determined on a consolidated basis in accordance with GAAP and calculated on the assumptions that: 

 

	 	“(1)	such additional Debt and any other Debt incurred by the Operating Partnership or any of its Subsidiaries since the first day of such four quarter period had been incurred, and the application of the proceeds therefrom
(including to repay or retire other Debt) had occurred, on the first day of such period, 

  

	 	“(2)	the repayment or retirement of any other Debt of the Operating Partnership or any of its Subsidiaries since the first day of such four quarter period had occurred on the first day of such period (except that, in making
such computation, the amount of Debt under any revolving credit facility, line of credit or similar facility shall be computed based upon the average daily balance of such Debt during such period), and 

 

	 	“(3)	in the case of any acquisition or disposition by the Operating Partnership or any of its Subsidiaries of any asset or group of assets, in any such case with a fair market value (determined in good faith by the Operating
Partnership’s Board of Directors) in excess of $1,000,000, since the first day of such four quarter period, whether by merger, purchase or sale of Capital Stock or assets, or otherwise, such acquisition or disposition had occurred as of the
first day of such period with the appropriate adjustments with respect to such acquisition or disposition being included in such pro forma calculation. 

  
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 “If the Debt giving rise to the need to make the foregoing calculation or any other Debt
incurred after the first day of the relevant four quarter period bears interest at a floating rate, then, for purposes of calculating the Annual Debt Service Charge, the interest rate on such Debt shall be computed on a pro forma basis as if
the average rate which would have been in effect during the entire such four quarter period had been the applicable rate for the entire such period. 

“For clarity, it is understood and agreed that, for purposes of this Section 1014, Debt of a Person existing at the time such Person
is merged or consolidated with or into the Operating Partnership or any of its Subsidiaries or becomes a Subsidiary of the Operating Partnership shall be deemed to have been incurred by the Operating Partnership or such Subsidiary, as the case may
be, on the date of such merger or consolidation or the date such Person becomes a Subsidiary of the Operating Partnership, as the case may be. 

“Section 1015. Limitation on Incurrence of Secured Debt. 

“The Operating Partnership will not, and will not cause or permit any of its Subsidiaries to, incur any Debt secured by a Lien upon any
property or assets of the Operating Partnership or any of its Subsidiaries, whether owned as of the date of the Indenture or thereafter acquired (“Secured Debt”), if, immediately after giving effect to the incurrence of such
additional Secured Debt and the application of the proceeds thereof on a pro forma basis, the aggregate principal amount of all outstanding Secured Debt of the Operating Partnership and its Subsidiaries on a consolidated basis determined in
accordance with GAAP is greater than 40% of the sum of (without duplication): 
  

	 	“(1)	Adjusted Total Assets as of the end of the most recent fiscal quarter prior to the incurrence of such additional Debt; 

  

	 	“(2)	the aggregate purchase price of any real estate assets or mortgages receivable (or interests therein) acquired by the Operating Partnership or any of its Subsidiaries since the end of such fiscal quarter, including
those obtained by application of the proceeds of such additional Debt, and owned by the Operating Partnership or any of its Subsidiaries as of the date of incurrence of such additional Debt; and 

 

	 	“(3)	the aggregate amount of any securities offering proceeds received by (or contributed to) the Operating Partnership or any of its Subsidiaries since the end of such fiscal quarter (to the extent that such proceeds were
not used to acquire such real estate assets or mortgages receivable (or interests therein) or used to reduce Debt of the Operating Partnership or any of its Subsidiaries), including the proceeds obtained from the incurrence of such additional Debt,

 “determined on a consolidated basis in accordance with GAAP. 

“For clarity, it is understood and agreed that, for purposes of this Section 1015, Debt of a Person existing at the time such Person
is merged or consolidated with or into the Operating Partnership or any of its Subsidiaries or becomes a Subsidiary of the Operating Partnership shall be deemed to have been incurred by the Operating Partnership or such Subsidiary, as the case may
be, on the date of such merger or consolidation or the date such Person becomes a Subsidiary of the Operating Partnership, as the case may be. 

  
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 “Section 1016. Maintenance of Unencumbered Total Asset Value. 

“The Operating Partnership and its Subsidiaries, determined on a consolidated basis in accordance with GAAP, will at all times maintain
an Unencumbered Total Asset Value in an amount not less than 150% of the aggregate principal amount of all of outstanding Unsecured Debt of the Operating Partnership and its Subsidiaries, determined on a consolidated basis in accordance with GAAP.

 “For clarity, it is understood and agreed that, for purposes of this Section 1016, Debt of a Person existing at the time such
Person is merged or consolidated with or into the Operating Partnership or any of its Subsidiaries or becomes a Subsidiary of the Operating Partnership shall be deemed to have been incurred by the Operating Partnership or such Subsidiary, as the
case may be, on the date of such merger or consolidation or the date such Person becomes a Subsidiary of the Operating Partnership, as the case may be.” 

ARTICLE 4 
 AMENDMENTS TO THE
INDENTURE 
 FOR THE BENEFIT OF THE HOLDERS OF THE NOTES 

Section 4.01. Amendment to Section 402(3) of the Original Indenture. Section 402(3) of
the Original Indenture is hereby amended and restated, but only insofar as relates to the Notes, to read in full as follows: 
  

	 	“(3)	Upon the Operating Partnership’s exercise of the above option applicable to this clause (3) of this Section 402 with respect to the Outstanding Notes, the Operating Partnership shall be released from its
obligations under clause (2) of Section 1005, Sections 1006 and 1007 and Sections 1011 through 1016, inclusive, on and after the date the conditions set forth in clause (4) of this Section 402 are satisfied
(hereinafter, “covenant defeasance”), and such Notes shall thereafter be deemed to be not “Outstanding” for the purposes of any direction, waiver, consent or declaration or Act of Holders (and the consequences of any
thereof) in connection with any such covenant, but shall continue to be deemed “Outstanding” for all other purposes hereunder. For this purpose, such covenant defeasance means that, with respect to such Outstanding Notes, the
Operating Partnership may omit to comply with, and shall have no liability in respect of, any term, condition or limitation set forth in any such Section, whether directly or indirectly, by reason of any reference elsewhere herein to any such
Section, or by reason of reference in any such Section, to any other provision herein or in any other document, and such omission to comply shall not constitute a default or an Event of Default under Section 501(4) or otherwise, but, except as
specified above, the remainder of this Indenture and the Notes shall be unaffected thereby.” 

  
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 ARTICLE 5 

MISCELLANEOUS PROVISIONS 
 
Section 5.01. Adoption, Ratification and Confirmation. The Original Indenture, as amended and supplemented by this Second Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed, and this Second Supplemental
Indenture shall be deemed part of the Original Indenture in the manner and to the extent herein and therein provided. 
 
Section 5.02. Conflicts with Trust Indenture Act. If any provision of this Second Supplemental Indenture limits, qualifies or conflicts with a provision of the Trust Indenture Act deemed to be included in the Indenture pursuant to
Section 318(c) thereof, the latter provision shall control. 
 Section 5.03. Effect of Headings
and Table of Contents. The Article, Section and subsection headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 

Section 5.04. Successors and Assigns. All covenants and agreements in this Second Supplemental
Indenture by the Operating Partnership shall bind its successors and assigns, whether so expressed or not. 

Section 5.05. Separability Clause. In case any provision in this Second Supplemental Indenture or
any Note that may be endorsed on the certificate evidencing any Note shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not, to the fullest extent permitted by law, in any way be
affected or impaired thereby. 
 Section 5.06. Benefits of Second Supplemental Indenture. Nothing
in this Second Supplemental Indenture or any Note, express or implied, shall give to any Person, other than the parties hereto, any Security Registrar and any Paying Agent and their successors under the Indenture and the Holders of Notes, any
benefit or any legal or equitable right, remedy or claim under this Second Supplemental Indenture. 

Section 5.07. Governing Law. This Second Supplemental Indenture and the Notes shall be governed by,
and construed in accordance with, the laws of the State of New York without regard, to the extent permitted by applicable law, to conflicts of law principles of such State other than New York General Obligations Law Section 5-1401. EACH OF THE
OPERATING PARTNERSHIP AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION, SUIT OR PROCEEDING ARISING OUT OF OR IN CONNECTION WITH THIS SECOND SUPPLEMENTAL
INDENTURE, THE INDENTURE, THE NOTES OR ANY TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 
 Section 5.08.
Counterparts. This Second Supplemental Indenture may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one 

  
 11 

 
and the same instrument. To the extent permitted by applicable law, the exchange of copies of this Second Supplemental Indenture and of signature pages by facsimile or PDF transmission shall
constitute effective execution and delivery of this Second Supplemental Indenture as to the parties hereto and may be used in lieu of the original Second Supplemental Indenture for all purposes, and signatures of the parties hereto transmitted by
facsimile or PDF shall be deemed to be their original signatures for all purposes. 
 Section 5.09.
Conflicts with Original Indenture. To the extent that any provision of this Second Supplemental Indenture conflicts with the Original Indenture, the provisions of this Second Supplemental Indenture will (except as may be otherwise required by
the Trust Indenture Act) govern and be controlling. 
 Section 5.10. Acceptance by Trustee. The
Trustee accepts the amendments and supplements to the Original Indenture effected by, and the other terms and provisions of, this Second Supplemental Indenture and agrees to execute the trusts created by the Original Indenture as hereby amended and
supplemented, upon the terms and conditions set forth in the Indenture. 
 Section 5.11. Numbering of
Sections and Articles in the Indenture. As provided above, this Second Supplemental Indenture amends and supplements the Original Indenture, but solely insofar as relates to the Notes, to, among other things, add certain covenants and other
provisions designated as Sections 1013 through 1016. Because the foregoing provisions added by this Second Supplemental Indenture relate solely to the Notes, it is understood and agreed that the article and section numbers assigned to
provisions added to the Original Indenture with respect to the Notes by this Second Supplemental Indenture may be assigned to provisions that may, in accordance with the terms of the Indenture, be added to the Indenture with respect to any one or
more other series of Securities so long as such additional provisions shall relate only to such other series of Securities. 
 [Signature
Page Follows] 

  
 12 

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

					
	MID-AMERICA APARTMENTS, L.P.,
	as Issuer
		
	By:	 	Mid-America Apartment Communities, Inc.,
		 	its general partner
		
	By:	 	/s/ Andrew Schaeffer
		 	Name:	 	Andrew Schaeffer
		 	Title:	 	Senior Vice President and Treasurer

 Attest: 
  

			
	
	/s/ Leslie Wolfgang
	Name:	 	Leslie Wolfgang
	Title:	 	Senior Vice President, Chief Ethics and
		 	Compliance Officer and Corporate Secretary

 (Signature Page to Second Supplemental Indenture) 

 
			
	U.S. BANK NATIONAL ASSOCIATION,
	as Trustee
		
	By:	 	/s/ Wally Jones
		 	Name: Wally Jones
		 	Title: Vice President

 (Signature Page to Second Supplemental Indenture) 

 ANNEX A 

FORM OF NOTE 

 [This paragraph for inclusion in Global Notes only—] THIS NOTE IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE
ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE (AS DEFINED BELOW) AND, 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.] 

[This paragraph for inclusion in Global Notes only—] UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
(“DTC”), TO THE OPERATING PARTNERSHIP (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  

	 No.: R- ● 
	 $● 

 CUSIP
No. 59523UAP2 
 ISIN No.: US59523UAP21 

MID-AMERICA APARTMENTS, L.P. 

4.200% Senior Notes due 2028 

Mid-America Apartments, L.P., a Tennessee limited partnership (hereinafter called the “Operating Partnership”, which term includes
any successor thereto under the Indenture referred to below), for value received, hereby promises to pay to ●, or registered assigns, the principal sum of ●Dollars ($●) on June 15, 2028 (the “Stated Maturity”), and
to pay interest thereon from May 14, 2018 or from the most recent date to which interest has been paid or duly provided for, semi-annually in arrears on June 15 and December 15 of each year (each, an “Interest Payment
Date”), commencing December 15, 2018, and at the Stated Maturity, at the rate of 4.200% per annum, until the principal hereof is paid or duly made available for payment. Interest on this Note shall be calculated on the basis of a
360-day year consisting of twelve 30-day months. The interest so payable and punctually paid or duly provided for on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be June 1 or December 1 (whether or not a Business Day), as the case may be, immediately preceding such Interest
Payment Date. Any such interest which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date shall forthwith cease to be payable to the Person who was the Holder hereof on the relevant Regular Record Date by virtue
of having been such Holder, and may be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to the Holder of this Note not less than 10 days prior to such Special Record Date, or may be paid in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes
may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. Any principal of, or premium, if any, or interest on this Note which is not paid when due shall, to the extent permitted by
applicable law, bear interest from the date such amount was originally due to the date of 

  
 A-1 

 
payment of such overdue amount at an interest rate per annum equal to the rate of interest borne by this Note. All such interest on overdue amounts shall be payable on demand. 

Payment of the principal of, and premium, if any, and interest on this Note will be made at the Office or Agency of the Operating Partnership
maintained for that purpose in the Borough of Manhattan, The City of New York, 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; provided, however,
that, at the option of the Operating Partnership, interest may be paid by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or by transfer to an account maintained by the payee with a
bank located in the United States of America; provided, further, that, notwithstanding the foregoing, all payments of principal of, and premium, if any, and interest on Notes in global form that are registered in the name of a
Depository or its nominee (“Global Notes”) shall be made by wire transfer of immediately available funds (unless otherwise required by the Depository) in accordance with the procedures of the Depository. 

This Note is one of a duly authorized issue of Securities of the Operating Partnership issued and to be issued in one or more series under an
Indenture dated as of May 9, 2017 (the “Original Indenture”), as amended and supplemented by the Second Supplemental Indenture dated as of May 14, 2018 (the “Second Supplemental Indenture”; the Original Indenture, as
amended and supplemented by the Second Supplemental Indenture and any other indentures supplemental thereto, is hereinafter called the “Indenture”), each between the Operating Partnership and U.S. Bank National Association, as trustee
(herein called the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of
rights, duties and immunities thereunder of the Operating Partnership, the Trustee and the Holders of the Notes, and the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the series of Securities
designated on the face hereof (such series of Securities, the “Notes”). 
 Prior to March 15, 2028 (the “Par Call
Date”), the Notes may be redeemed, at any time in whole or from time to time in part, at the option of the Operating Partnership, for cash, at a Redemption Price equal to the greater of: 

 

	 	(a)	100% of the principal amount of the Notes to be redeemed, and 

  

	 	(b)	the sum of the present values of the remaining scheduled payments of principal of, and interest on, the Notes to be redeemed that would be due if the Notes matured on the Par Call Date (exclusive of interest accrued to
the applicable Redemption Date) discounted to such Redemption Date on a semi-annual basis, assuming a 360-day year consisting of twelve 30-day months, at the Treasury Rate plus 20 basis points, 

plus, in the case of both clauses (a) and (b) above, accrued and unpaid interest on the principal amount of the Notes being redeemed to, but not
including, such Redemption Date. 
 On and after the Par Call Date, the Notes may be redeemed, at any time in whole or from time to time in
part, at the option of the Operating Partnership, for cash, at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest on the principal amount of the Notes being redeemed to, but not
including, such Redemption Date. 
 Notwithstanding the foregoing, installments of interest on Notes that are due and payable on an Interest
Payment Date falling on or prior to a Redemption Date for the Notes will be payable to the Persons who were the Holders of such Notes (or one or more Predecessor Securities) registered as such at the close of business on the relevant Regular Record
Dates according to their terms and the provisions of the Indenture. 
 “Treasury Rate” means (1) the yield, under the heading
which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15” or any successor publication which is published weekly by the Board of Governors of the Federal
Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the 

  
 A-2 

 
caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining life of the
Notes, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the
nearest month), or (2) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the applicable Redemption Date. The Treasury Rate shall be
calculated on the third Business Day preceding the applicable Redemption Date. As used in the immediately preceding sentence and in the definition of “Reference Treasury Dealer Quotations” below, the term “Business Day” means any
day, other than a Saturday or a Sunday, that is not a day on which banking institutions in The City of New York are authorized or required by law, regulation or executive order to close. 

“Comparable Treasury Issue” means, with respect to any Redemption Date for the Notes, the United States Treasury security selected
by the Independent Investment Banker as having an actual or interpolated maturity comparable to the remaining term of the Notes to be redeemed (assuming, for this purpose, that the Notes matured on the Par Call Date) that would be utilized, at the
time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes to be redeemed (assuming, for this purpose, that the Notes matured on
the Par Call Date). 
 “Comparable Treasury Price” means, with respect to any Redemption Date for the Notes: 

 

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

 

	 	(b)	if the Operating Partnership obtains fewer than five but more than one such Reference Treasury Dealer Quotations for such Redemption Date, the average of all such quotations, or 

 

	 	(c)	if the Operating Partnership obtains only one such Reference Treasury Dealer Quotation for such Redemption Date, that Reference Treasury Dealer Quotation. 

“Independent Investment Banker” means, with respect to any Redemption Date for the Notes, an independent investment banking
institution of national standing appointed by the Operating Partnership with respect to such Redemption Date. 
 “Reference Treasury
Dealer” means with respect to any Redemption Date for the Notes, as determined by the Operating Partnership, either (a) (i) two primary U.S. Government securities dealers in The City of New York (each, a “Primary Treasury
Dealer”) selected jointly by Wells Fargo Securities, LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and U.S. Bancorp Investments, Inc. or their respective successors and (ii) three other Primary Treasury Dealers
selected by the Operating Partnership or (b) one Primary Treasury Dealer selected by the Operating Partnership and four other Primary Treasury Dealers selected by the Independent Investment Banker. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for the Notes,
the average, as determined by the Operating Partnership, of the bid and ask prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Operating Partnership by such Reference
Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 Notwithstanding any
provision of the Original Indenture, notice of any redemption by the Operating Partnership will be mailed at least 15 days but not more than 60 days before any Redemption Date to the Holders of the Notes to be redeemed. If less than all of
the Outstanding Notes are to be redeemed, the Trustee shall select the Notes or portions of the Notes (in principal amounts of $2,000 and integral multiples of $1,000 in excess thereof) to be redeemed by such method as the Trustee shall deem fair
and appropriate and, in the case of Global Notes, in accordance with the Depository’s procedures; provided, however, that the unredeemed portion of the principal amount of any Note being redeemed in part must be an authorized denomination. 

  
 A-3 

 Unless the Operating Partnership defaults in payment of the Redemption Price and accrued interest
on the Notes or portions thereof called for redemption, on and after any Redemption Date interest will cease to accrue on the Notes or portions thereof called for redemption. 

The Notes are not subject to, and will not be entitled to the benefit of, any sinking fund. 

If an Event of Default with respect to the Notes shall occur and be continuing, the principal of, and accrued and unpaid interest on the Notes
may be declared immediately due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits, with
certain exceptions as therein provided, the Operating Partnership and the Trustee, with the consent of the Holders of at least a majority in principal amount of the Outstanding Notes, to modify or amend (but solely insofar as relates to the Notes)
any provisions of the Indenture or of the Notes or the rights of the Holders of the Notes under the Indenture. The Indenture also contains provisions permitting the Holders of at least a majority in aggregate principal amount of the Notes at the
time Outstanding, on behalf of the Holders of all Notes, to waive (but solely insofar as relates to the Notes), compliance by the Operating Partnership with certain provisions of the Indenture and certain past defaults under the Indenture with
respect to the Notes and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Notes issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 
 No reference
herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Operating Partnership, which is absolute and unconditional, to pay the principal of, and premium, if any, and interest on this
Note, at the time, place and rate, and in the coin or currency, herein and in the Indenture prescribed. 
 As provided in the Indenture and
subject to certain limitations set forth therein, the transfer of this Note may be registered on the Security Register upon surrender of this Note for registration of transfer at the Office or Agency of the Operating Partnership maintained for the
purpose in any place where the principal of, and interest on this Note are payable, duly endorsed, or accompanied by a written instrument of transfer in form satisfactory to the Operating Partnership and the Security Registrar duly executed by the
Holder hereof or by his attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

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

 No service charge shall be made for any such registration of transfer or exchange, but the Operating Partnership may require payment of a
sum sufficient to cover any tax or other governmental charge payable in connection therewith, other than in certain cases provided in the Indenture. 

Prior to due presentment of this Note for registration of transfer, the Operating Partnership, the Trustee and any agent of the Operating
Partnership or the Trustee may treat the Person in whose name this Note is registered in the Security Register as the owner hereof for all purposes, whether or not any payment with respect to this Note shall be overdue, and none of the Operating
Partnership, the Trustee or any such agent shall be affected by notice to the contrary. 
 The Indenture contains provisions whereby, upon
the satisfaction of certain conditions, (i) the Operating Partnership may be discharged from its obligations with respect to the Notes, and the Operating Partnership may be discharged from its obligations under the Indenture (subject to certain
exceptions) or (ii) the Operating Partnership may be released from its obligations under specified covenants in the Indenture. 

  
 A-4 

 No recourse under or upon any obligation, covenant or agreement contained in the Indenture or in
this Note, or because of any indebtedness evidenced by any of the foregoing, shall be had against any past, present or future partner, shareholder, member, manager, employee, officer, agent or director, solely in their capacity as such, of the
Operating Partnership or of any of the Operating Partnership’s predecessors or successors, either directly or through the Operating Partnership or any such predecessor or successor, under any rule of law, statute or constitutional provision or
by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of this Note by the Holder and as part of the consideration for the issue of this
Note. 
 This Note shall be governed by and construed in accordance with the laws of the State of New York without regard, to the extent
permitted by applicable law, to the conflicts of law principles of such State other than New York General Obligations Law Section 5-1401. 

All terms used in this Note which are defined in the Indenture and not defined herein shall have the meanings assigned to them in the
Indenture. To the extent that any term defined in the Original Indenture shall have been superseded or replaced, insofar as relates to the Notes, by a term defined in the Second Supplemental Indenture, then, for all purposes of this Note, such term
shall have the meaning specified in the Second Supplemental Indenture. 
 Unless the certificate of authentication hereon has been executed
by or on behalf of the Trustee under the Indenture by the manual signature of one of its authorized signatories, this Note shall not be entitled to any benefits under the Indenture or be valid or obligatory for any purpose. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 A-5 

 IN WITNESS WHEREOF, the Operating Partnership has caused this instrument to be duly executed by
the manual or facsimile signatures of two of the duly authorized officers of its general partner. 
 Dated: ● 

 

					
	MID-AMERICA APARTMENTS, L.P.
		
	By:	 	Mid-America Apartment Communities, Inc., its general partner
		
	By:	 	 
		 	Name:	 	
		 	Title:	 	
		
	By:	 	 
		 	Name:	 	
		 	Title:	 	

  

			
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
	
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
		
	By:	 	 
		 	Authorized Signatory

  
 A-6 

 ABBREVIATIONS 

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

 

 TEN COM—as tenants in common 

TEN ENT—as tenants by the entireties 
 JT TEN—as joint
tenants with right of survivorship and not as tenants in common

							
	UNIF GIFT MIN ACT—	 	 	 	Custodian	 	 
		 	(Cust)	 		 	(Minor)
		 	Under Uniform Gifts to Minors Act
	  
	 	   

		 	(State)

 
 

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

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

									
	PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE
		 		  		  		 	
		 	 	  	 	  		 	
		 	 	  	 	  		 	

							
		
	 	 	 
	PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE	 	
				
	 	  	 	  	 	 	 
	the within security and all rights thereunder, hereby irrevocably constituting and appointing	 	
				
	 	  	 	  	 	 	Attorney
	to transfer said security on the books of the Operating Partnership with full power of substitution in the premises.	 	

  

									
	Dated:	  	 	  		  	Signed:	  	 

 Notice: The signature(s) to this assignment must correspond with the name(s) as it (they) appear upon the face
of the within security in every particular, without alteration or enlargement or any change whatsoever. 

  
 A-7Exhibit

Exhibit 10.1

AGREEMENT

THIS AGREEMENT is entered into this 9th day of May, 2018 by and between Ergon Terminaling, Inc. (“Ergon”) and Blueknight Energy Partners, L. P. (“BKEP”).

WITNESSETH:

WHEREAS, BKEP has requested Ergon to invest in a joint venture with a to-be-formed subsidiary of Alta Mesa Resources, Inc. (“Alta Mesa”) to develop, construct, own, and operate a crude oil pipeline and related equipment and tankage originating in Kingfisher County, Oklahoma and terminating at BKEP’s Cushing Oklahoma terminal;

WHEREAS, as part of the arrangement with respect to the joint venture, BKEP has represented to Ergon that a BKEP subsidiary would be the construction manager and operator of the pipeline;

WHEREAS, BKEP has agreed it will purchase this investment from Ergon in the future; and

WHEREAS, BKEP and Ergon wish to memorialize the terms of their agreement regarding this investment.

NOW, THEREFORE, for and in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties covenant and agree as follows:

		
	1.
	Ergon’s Obligations.

		
	(a)
	Ergon has formed a Delaware limited liability company, Ergon - Oklahoma Pipeline, LLC (“DEVCO”), which will acquire a fifty percent (50%) membership interest in a to-be-formed limited liability company (“Cimarron Express Pipeline, LLC” or “JV Company”) which will design, construct, own, operate, and maintain an approximately sixty-five (65) mile, sixteen-inch (16”) pipeline from Alta Mesa’s truck unloading terminal in Kingfisher County, Oklahoma to BKEP’s western terminal in Cushing, Oklahoma (the “STACK Pipeline Project”).  Ergon will fund by contributions to the Cimarron Express Pipeline, LLC up to fifty percent (50%) of the cost to design and construct the STACK Pipeline Project, which is currently estimated to be Ninety-Six Million Three Hundred Thousand Dollars ($96,300,000) (exclusive of working capital) for the entire project.

		
	(b)
	Upon receipt the Purchase Price (as hereinafter defined), Ergon shall be obligated to convey one hundred percent (100%) of the authorized and outstanding member interests in DEVCO to BKEP or its designee.  Until DEVCO is purchased by BKEP, Ergon will 

1

be entitled to all rights and will be subject to all obligations as a member of Cimarron Express Pipeline, LLC., including, but not limited to, profits, losses, and distributions.
		
	(c)
	Ergon’s good faith performance of its obligations under the limited liability company agreement of Cimarron Express Pipeline, LLC

		
	2.
	BKEP’s Obligations. 

		
	(a)
	BKEP Pipeline, L.L.C.’s good faith performance of its obligations under the Construction Management Agreement, and the Operating Agreement with Cimarron Express Pipeline, LLC.

		
	(b)
	BKEP shall be obligated to purchase DEVCO if Ergon exercises the Put as herein after defined.

		
	(c)
	For the period prior to the Closing of the purchase of DEVCO, BKEP shall remit to Ergon monthly seventy-five percent (75%) of the revenue attributable to the lease of BKEP tankage at Cushing to the JV Company. This remittance shall cease upon the purchase of DEVCO by BKEP.

		
	3.
	Purchase Price.

		
	(a)
	The purchase price for DEVCO shall be computed by taking Ergon’s total investment in the STACK Pipeline Project including, but not limited to, working capital, cash, out-of-pocket expenses, engineering, project management, construction, legal, and accounting costs, plus interest at the rate of nine percent (9%) per annum compounded annually on each component from the last day of the month in which the expenditure is made less any distributions from the Cimarron Express Pipeline, LLC and payments to Ergon from BKEP as set forth in Section 2(c) (adjusted for income taxes)(the “Purchase Price”).  Reasonable compensation for the time reasonably expended by Ergon personnel on the STACK Pipeline Project shall be a component of the Purchase Price which will continue to accrue until Closing and shall be computed in accordance with Exhibit A.  The budget for such time to be expended by Ergon personnel on the STACK Pipeline Project shall be attached as part of Exhibit A.

		
	(b)
	The Purchase Price shall be paid in cash at closing.

		
	4.
	The Call.

BKEP shall have the right, at any time, to purchase one hundred percent (100%) of the authorized and outstanding member interests in DEVCO from Ergon for the Purchase Price by giving written notice to Ergon (the “Call”).  If exercised, the transaction will be memorialized by a membership interest purchase agreement as set forth in Exhibit “B” (the “MIPA”) and shall close within sixty (60) days of receipt of such written notice, or at such other time as Ergon and BKEP may mutually agree. Closing shall take place by the electronic exchange of the appropriate documentation, with any originals as may be required to be exchanged by mail promptly following the electronic closing.

2

		
	5.
	The Put.

		
	(a)
	Ergon shall have the right to require BKEP to purchase one hundred percent (100%) of the authorized and outstanding member interests of DEVCO for the Purchase Price (the “Put”) at any time beginning the earlier of (i) eighteen (18) months from the formation of the JV Company or (ii) six (6) months after Mechanical Completion (as defined in the Construction Management Agreement between Cimarron Express Pipeline, LLC and BKEP Pipeline, L.L.C.) of the STACK Pipeline Project.  The time periods in (i) and (ii) may be extended by an event of Force Majeure (as hereinafter defined) for a period of up to six (6) months from the date of the event but under no circumstances may the applicable time period extend past March 31, 2020.  Once the Put is exercised, BKEP will have sixty (60) days in which to close, or such other time period as Ergon and BKEP may mutually agree.  Failure to close within the stated time period shall trigger an interest rate of twelve percent (12%) per annum (the “Default Rate”).

		
	(b)
	Notwithstanding the foregoing time period, Ergon may exercise the Put in its sole discretion and require BKEP to purchase one hundred percent (100%) of the authorized and outstanding member interests of DEVCO upon the occurrence of an event of dissolution of the Cimarron Express Pipeline, LLC pursuant to Article 13 of the company’s limited liability company agreement. In the event of a dissolution, Ergon’s remedy, in addition to interest at the Default Rate, shall be the right to require BKEP to purchase DEVCO for the Purchase Price within sixty (60) days of written notice of the Put.  The Purchase Price shall be net of proceeds received by Ergon, if any, attributable to the dissolution (adjusted for income taxes).

		
	6.
	Force Majeure.  

Force Majeure shall have the meaning set forth in the Construction Management Agreement and shall only be effective to extend the time period for the Put as set forth in Section 5(a) above to the extent that the Cimarron Express Pipeline, LLC agrees that an event of Force Majeure has occurred and shall only be for the period that the event of Force Majeure remains in effect under the Construction Management Agreement. 

		
	7.
	Notices.

All notices and communications required or permitted to be given hereunder shall be sufficient in all respects (a) if given in writing and delivered personally, (b) if sent by overnight courier, (c) if mailed by U.S. Express Mail or by certified or registered United States Mail with all postage fully prepaid, or (d) sent by electronic transmission (provided any such electronic transmission is confirmed either orally or by written confirmation) and, in each case, addressed to the appropriate Party hereto at the address for such Party shown below or at such other address as such Party shall have theretofore designated by written notice delivered to the Party giving such notice:

3

BKEP:
Blueknight Energy Partners, L.P.
6060 American Plaza, Suite 600
Tulsa, OK 74135
Attention:        Mark Hurley
Telephone: 713-632-8805
E-mail: mhurley@bkep.com

With a copy to:
Blueknight Energy Partners, L.P.
6060 American Plaza, Suite 600
Tulsa, OK 74135
Attention: Joel W. Kanvik
Telephone: 918-237-4030

Ergon:

Ergon Terminaling, Inc.
Attention:    Emmitte J. Haddox
2829 Lakeland Drive, Suite 2000
Flowood, MS 39232 
Telephone:    601-933-3000
E-mail: Emmitte.Haddox@ergon.com
With a copy to:
Watson Heidelberg, PLLC
2829 Lakeland Drive, Suite 1502
Flowood, MS 39232
Attention:    J. Kevin Watson                 
Telephone:    601-939-8900
E-Mail: kwatson@whjpllc.com
		
	8.
	Governing Law.  

THIS AGREEMENT AND THE LEGAL RELATIONS BETWEEN THE PARTIES SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, EXCLUDING ANY CONFLICTS OF LAW RULE OR PRINCIPLE THAT MIGHT REFER CONSTRUCTION OF SUCH PROVISIONS TO THE LAWS OF ANOTHER JURISDICTION.    

4

		
	9.
	Entirety of Agreement. 

THIS AGREEMENT CONSTITUTES THE ENTIRE AGREEMENT BETWEEN THE PARTIES REGARDING THE INVESTMENT IN DEVCO AND SUPERSEDES ALL OTHER PRIOR AND CONTEMPORANEOUS AGREEMENTS, WHETHER WRITTEN OR ORAL, BETWEEN THE PARTIES AND RELATED THERETO.  NO VARIATIONS, MODIFICATIONS, OR CHANGES SHALL BE BINDING UPON A PARTY UNLESS EFFECTUATED BY AN INSTRUMENT IN WRITING EXECUTED BY A DULY AUTHORIZED OFFICER OR A DULY AUTHORIZED AGENT FOR IT.
		
	10.
	Captions or Headings.

The headings appearing at the beginning of each Section are all inserted and included solely for convenience and shall never be considered or given any effect in construing this Agreement, or any provision or provisions hereof, or in connection with determining the duties, obligations, or liabilities of the Parties or in ascertaining intent, if any question of intent should arise.
		
	11.
	Assignment.

This Agreement and its attendant rights may not be assigned, transferred, subcontracted, or otherwise conveyed by either Party without the express written consent of the other Party; provided however, a Party may assign its rights and obligations under this Agreement to an Affiliate with the prior consent of the other Party, which consent shall not be unreasonably withheld, conditioned or delayed.  Any such assignment without consent shall be void.  

		
	12.
	Duplicate Originals. 

This Agreement is executed in duplicate originals, with one original to be retained by Ergon and one original to be retained by BKEP.

		
	13.
	No Third-Party Beneficiary. 

Nothing in this Agreement, express or implied, shall entitle any Person other than the Parties or their respective successors and permitted assigns to any claim, remedy or right of any kind; provided that only a Party and its successors and permitted assigns will have the right to enforce the provisions of this Agreement on its own behalf.

		
	14.
	Severability. 

If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not materially affected in any manner adverse to any Party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.

5

		
	15.
	Waiver.  

No waiver by either Party of the performance of any provision, condition or requirement in this Agreement will be deemed to be a waiver of, or in any manner release the other Party from performance of any other provision, condition or requirement in this Agreement; and it will not be deemed to be a waiver of, or in any manner release the other Party from, future performance of the same provision, condition or requirement; and no delay or omission of a Party in exercising any right under this Agreement will in any manner impair the exercise of any such right or any like right accruing to it thereafter.  No waiver will be effective unless made in writing and signed by the Party to be charged with such waiver.
		
	16.
	Exhibits, Schedules, and MIPA.  

In the event of any conflict between the terms and conditions of this Agreement and the terms and conditions of any Exhibit, Schedule, or the MIPA, the terms and conditions of this Agreement govern and control.
		
	17.
	Joint Efforts.  

This Agreement will be considered for all purposes as prepared through the joint efforts of the Parties and will not be construed against one Party or the other as a result of the preparation, submittal or other event of negotiation, drafting or execution of the Agreement.
		
	18.
	Counterparts.  

This Agreement may be executed in any number of counterparts, and each such counterpart hereof shall be deemed to be an original instrument, but all of such counterparts shall constitute for all purposes one agreement.  Any signature hereto delivered by a Party by facsimile or other electronic transmission shall be deemed an original signature hereto.

THIS SPACE INTENTIONALLY LEFT BLANK

6

IN TESTIMONY WHEREOF, witness the hands and seals of the Parties as of the date of this Agreement.

	
		
	Blueknight Energy Partners, L.P.

	 
	 

	By:
	/s/ Mark A. Hurley

	Name:
	Mark A. Hurley

	Title:
	CEO

	 
	 

	Ergon Terminaling, Inc.

	 
	 

	By:
	/s/ Joel Pastorek

	Name:
	Joel Pastorek

	Title:
	President

7

EXHIBIT “A”

PURCHASE PRICE FORMULA

	
				
	Capital Contributions to Cimarron Express Pipeline, LLC
	 

	 
	 
	 
	 

	 
	Initial Contribution
	 

	 
	 
	 
	 

	 
	Additional Contributions
	 

	 
	 
	 
	 

	 
	(1) [Date]
	 

	 
	 
	 
	 

	 
	(2) [Date]
	 

	 
	 
	 
	 

	 
	(3) [Date]
	 

	 
	 
	 
	 

	 
	(4) [Date]
	 

	 
	 
	 
	 

	Out-of-Pocket Expenses
	 

	 
	 
	 
	 

	 
	Travel
	 

	 
	 
	 
	 

	 
	 
	Corporate Charter
	 

	 
	 
	 
	 

	 
	 
	Corporate Plane
	 

	 
	 
	 
	 

	 
	 
	All other travel expenses
	 

	 
	 
	 
	 

	 
	Legal
	 

	 
	 
	 
	 

	 
	Miscellaneous
	 

	 
	 
	 
	 

	Internal Costs1
	 

	 
	 
	 
	 

	 
	Eng./Env./Proj.Mgmt
	 

	 
	 
	 
	 

	 
	Ops/Upstream
	 

	 
	 
	 
	 

	 
	Accounting/Finance
	 

	 
	 
	 
	 

	 
	Sr. Mgmt.
	 

	 
	 
	 
	 

	 
	Exec. Mgmt.
	 

____________________________________
1 Per the rate sheet and time sheets, updated on a monthly basis.

	
				
	 
	Interest2
	 

	 
	 
	 
	 

	 
	Total as of [Date]
	 

	 
	 
	 
	 

	 
	Less:
	 

	 
	 
	 
	 

	 
	Distributions from the Joint Venture
	 

	 
	 
	 
	 

	 
	and Rental Payments from 2. c.3
	 

	 
	 
	 
	 

	 
	Balance due:
	 

____________________________________
2 Interest accrues at the rate of nine percent (9%) per annum from the first day of the month following the month in which the advancement was made as to Capital Contributions and Out-of-Pocket Expenses.  Interest will not accrue on the Internal Costs. Formula updated monthly
3 Adjusted for income taxes

EXHIBIT “B”

MEMBERSHIP INTEREST PURCHASE AGREEMENT

THIS MEMBERSHIP INTEREST PURCHASE AGREEMENT (this “Agreement”) is made and entered into on ________________, by and between Ergon Terminaling, Inc. (“Ergon”) and Blueknight Energy Partners, L. P. (“BKEP”).
W I T N E S S E T H:
WHEREAS, Ergon owns all of the issued and outstanding membership interests of DEVCO; and
WHEREAS, Ergon desires to sell, and BKEP desires to purchase in exchange for cash, all of the issued and outstanding membership interests of DEVCO owned by Ergon (“Membership Interests”).
NOW, THEREFORE, in consideration of the mutual covenants, agreements and understandings contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the Parties hereto hereby agree as follows:
1.Membership Interest Purchase.
(a)On the terms and subject to the conditions set forth in this Agreement, on the Closing Date, BEKP shall purchase from Ergon and Ergon shall sell, assign convey, and transfer to BKEP, all of the Membership Interests, free and clear of any liens, restrictions on transfer (other than restrictions arising under the law), options, rights, calls commitments, proxies or other contract rights.
(b)In consideration of the purchase of the Membership Interest by BKEP, BKEP shall pay to Ergon the Purchase Price as calculated in the formula set forth on Schedule 1.
		
	2.
	Purchase Price.

(a)The Purchase Price for the Membership Interests shall be computed by taking Ergon’s total investment in the STACK Pipeline Project including, but not limited to, working capital, cash, out-of-pocket expenses, engineering, project management, legal and accounting costs, plus interest at the rate of  nine percent (9%) per annum compounded annually on each component from the  last day of the month in which the expenditure is made less any distributions from the Cimarron Express Pipeline, LLC (adjusted for income taxes)( the “Purchase Price”).  Reasonable compensation for the time reasonably expended by Ergon personnel on the STACK Pipeline Project shall be a component of the Purchase Price and shall be computed in accordance with Schedule 1.
(b)Not later than five (5) Business Days prior to the Closing Date, Ergon shall deliver to BKEP a written statement showing Ergon’s good faith calculation of the Purchase Price.
(c)The Purchase Price shall not include any working capital in DEVCO.  Immediately prior to the Closing, Ergon may cause DEVCO to distribute to Ergon all cash or cash equivalents held and owned by DEVCO.
		
	3.
	Closing.

(a)Closing Date.  The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place by the electronic exchange of the appropriate documentation, with any originals as may be required to be exchanged by mail promptly following the electronic closing, not later than the sixtieth (60th) day following exercise of the Put or the Call as defined in that certain Agreement between the parties dated May 9th, 2018 or at such other place or on such other date as may be mutually agreeable to BKEP and Ergon.  The date 

1

and time of the Closing are herein referred to as the “Closing Date”.
(b)Closing Deliveries.  Subject to the conditions set forth in this Agreement, each of the Parties shall deliver to the other the following on the Closing Date (the “Closing Deliveries”):
(i)Ergon Deliveries.  At Closing, Ergon shall deliver to BKEP:
		
	(1)
	all corporate books and records of the DEVCO;

		
	(2)
	a copy of the signed entry into the Members’ Registry Book of DEVCO, duly recorded into such book, certifying the transfer of ownership of all of DEVCO’s Membership Interests to Buyer;

		
	(3)
	a resolution duly adopted at a meeting or by unanimous written consent of Ergon pursuant to which Ergon, approved the transfer to BKEP of the Membership Interests held by Ergon;

		
	(4)
	the resignation letters of the managers of DEVCO duly signed and effective as of the Closing Date;

(ii)BKEP Deliveries.  At Closing, BKEP shall deliver to Ergon:
		
	(1)
	duly adopted corporate resolutions of DEVCO electing managers to succeed Ergon’s resigning managers effective as of the Closing Date;

		
	(2)
	the Purchase Price by wire transfer of immediately available funds to an account or accounts designated by Ergon.

		
	4.
	Conditions to BKEP’s Obligation to Close. 

The obligation of BKEP to consummate the transactions contemplated by this Agreement is subject to the fulfillment of the following conditions as of the Closing Date:

(a)Ergon representations shall be true and correct in all material respects as of the date of this Agreement and as of the Closing Date.
(b)Ergon shall have performed and complied in all material respects with all of the covenants and agreement required to be performed under this Agreement.
		
	5.
	Conditions to Ergon’s Obligation to Close. 

The obligation of Ergon to consummate the transactions contemplated by this Agreement is subject to the fulfillment of the following conditions as of the Closing Date:

2

(a)BKEP representations shall be true and correct in all material respects as of the date of this Agreement and as of the Closing Date.
(b)BKEP shall have performed and complied in all material respects with all of the covenants and agreement required to be performed under this Agreement including delivery of the Purchase Price.
		
	6.
	Ergon Representations.

Ergon represents and warrants as follows:
(a)DEVCO is duly organized, validly existing, and in good standing under the laws of the State of Delaware.
(b)The execution, delivery and performance by Ergon of this Agreement, and the consummation of the transactions contemplated hereby, do not and will not (i) result in a violation or breach of any provision of the respective organizational documents of Ergon or DEVCO, (ii) result in a violation or breach of any provision of any law or governmental order applicable to Ergon or DEVCO; or (iii) require the consent, notice or other action by any Person under, conflict with, result in a violation or breach of, constitute a default under or result in the acceleration of any material contract. No consent, approval, license, governmental order, declaration or filing with, or notice to, any governmental authority is required by or with respect to Ergon or DEVCO in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.
(c)DEVCO owns fifty percent (50%) of the authorized and outstanding member interests in Cimarron Express Pipeline, LLC.  The limited liability company agreement of Cimarron Express Pipeline, LLC has not been materially amended, modified, or otherwise changed since it was executed.
		
	7.
	BKEP Representations.

BKEP represents and warrants as follows:

(a)BKEP is duly organized, validly existing, and in good standing under the laws of the State of Delaware, with full power and authority to enter into this Agreement and to perform its obligations hereunder.
(b)BKEP has all requisite power, authority and legal capacity to execute and deliver this Agreement and to consummate the transactions contemplated hereby and thereby.  Each of the Conflicts Committee of the Board of Directors and the Board of Directors of the General Partner of BKEP has duly approved this Agreement and has duly authorized the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.  No other corporate proceedings on the part of BKEP is necessary to approve and authorize the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.  This Agreement has been duly executed and delivered by BKEP and constitutes the valid and binding agreement of BKEP, enforceable against BKEP in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar applicable law affecting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

3

		
	8.
	Indemnification.

(a)The representation and warranties contained herein shall survive Closing and shall remain in full force and effect for six (6) months from the Closing Date.
(b)Ergon shall indemnify BKEP against and shall hold BKEP harmless from an against any and all losses incurred or sustained by or imposed upon BKEP based upon, arising out of with respect to or by reason of any material inaccuracy in or breach any representation set forth in Section 6.
(c)BKEP shall indemnify Ergon against and shall hold Ergon harmless from an against any and all losses incurred or sustained by or imposed upon Ergon based upon, arising out of with respect to or by reason of any material inaccuracy in or breach any representation set forth in Section 7.
		
	9.
	Notices.  

All notices and communications required or permitted to be given hereunder shall be sufficient in all respects (a) if given in writing and delivered personally, (b) if sent by overnight courier, (c) if mailed by U.S. Express Mail or by certified or registered United States Mail with all postage fully prepaid, or (d) sent by electronic transmission (provided any such electronic transmission is confirmed either orally or by written confirmation) and, in each case, addressed to the appropriate Party hereto at the address for such Party shown below or at such other address as such Party shall have theretofore designated by written notice delivered to the Party giving such notice:
BKEP:
Blueknight Energy Partners, L. P.
6060 American Plaza, Suite 600
Tulsa, OK 74135
Attention:    Mark Hurley
Telephone: 713-632-8805
E-mail:     mhurley@bkep.com
With a copy to:
Blueknight Energy Partners, L.P.
6060 American Plaza, Suite 600
Tulsa, OK 74135
Attention:    Joel W. Kanvik
Telephone:    918-237-4030
E-mail: jkanvik@bkep.com

4

Ergon:

Ergon Terminaling, Inc.
Attention:    Emmitte J. Haddox
2829 Lakeland Drive, Suite 2000
Flowood, MS 39232 
Telephone:    601-933-3000
E-mail: Emmitte.Haddox@ergon.com
With a copy to:
Watson Heidelberg, PLLC
2829 Lakeland Drive, Suite 1502
Flowood, MS 39232
Attention:    J. Kevin Watson                 
Telephone:    601-939-8900
E-Mail: kwatson@whjpllc.com
10.Governing Law.  
THIS AGREEMENT AND THE LEGAL RELATIONS BETWEEN THE PARTIES SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, EXCLUDING ANY CONFLICTS OF LAW RULE OR PRINCIPLE THAT MIGHT REFER CONSTRUCTION OF SUCH PROVISIONS TO THE LAWS OF ANOTHER JURISDICTION.    
		
	11.
	Entirety of Agreement. 

THIS AGREEMENT CONSTITUTES THE ENTIRE AGREEMENT BETWEEN THE PARTIES REGARDING THE INVESTMENT IN DEVCO AND SUPERSEDES ALL OTHER PRIOR AND CONTEMPORANEOUS AGREEMENTS, WHETHER WRITTEN OR ORAL, BETWEEN THE PARTIES AND RELATED THERETO. NO VARIATIONS, MODIFICATIONS, OR CHANGES SHALL BE BINDING UPON A PARTY UNLESS EFFECTUATED BY AN INSTRUMENT IN WRITING EXECUTED BY A DULY AUTHORIZED OFFICER OR A DULY AUTHORIZED AGENT FOR IT.
		
	12.
	Captions or Headings.

The headings appearing at the beginning of each Section are all inserted and included solely for convenience and shall never be considered or given any effect in construing this Agreement, or any provision or provisions hereof, or in connection with determining the duties, obligations, or liabilities of the Parties or in ascertaining intent, if any question of intent should arise.
		
	13.
	Assignment.

This Agreement and its attendant rights may not be assigned, transferred, subcontracted, or otherwise conveyed by either Party without the express written consent of the other Party; provided however, a Party may assign its rights and obligations under this Agreement to an Affiliate with the prior consent of the other Party, which consent shall not be unreasonably withheld, conditioned or delayed.  Any such assignment without consent shall be void.  

		
	14.
	Duplicate Originals. 

5

This Agreement is executed in duplicate originals, with one original to be retained by Ergon and one original to be retained by BKEP.

		
	15.
	No Third-Party Beneficiary. 

Nothing in this Agreement, express or implied, shall entitle any Person other than the Parties or their respective successors and permitted assigns to any claim, remedy or right of any kind; provided that only a Party and its successors and permitted assigns will have the right to enforce the provisions of this Agreement on its own behalf.

		
	16.
	Severability. 

 If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not materially affected in any manner adverse to any Party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.
		
	17.
	Waiver.  

No waiver by either Party of the performance of any provision, condition or requirement in this Agreement will be deemed to be a waiver of, or in any manner release the other Party from performance of any other provision, condition or requirement in this Agreement; and it will not be deemed to be a waiver of, or in any manner release the other Party from, future performance of the same provision, condition or requirement; and no delay or omission of a Party in exercising any right under this Agreement will in any manner impair the exercise of any such right or any like right accruing to it thereafter.  No waiver will be effective unless made in writing and signed by the Party to be charged with such waiver.
		
	18.
	Exhibits and Schedules.  

In the event of any conflict between the terms and conditions of this Agreement and the terms and conditions of any Exhibit or Schedule, the terms and conditions of this Agreement govern and control.

6

		
	19.
	Joint Efforts.  

This Agreement will be considered for all purposes as prepared through the joint efforts of the Parties and will not be construed against one Party or the other as a result of the preparation, submittal or other event of negotiation, drafting or execution of the Agreement.
		
	20.
	Counterparts.  

This Agreement may be executed in any number of counterparts, and each such counterpart hereof shall be deemed to be an original instrument, but all of such counterparts shall constitute for all purposes one agreement.  Any signature hereto delivered by a Party by facsimile or other electronic transmission shall be deemed an original signature hereto.
IN TESTIMONY WHEREOF, witness the hands and seals of the Parties as of the date of this Agreement.

	
		
	 
	Blueknight Energy Partners, L.P.

	 
	 

	By:
	 

	Name:
	 

	Title:
	 

	 
	 

	Ergon Terminaling, Inc.

	 
	 

	By:
	 

	Name:
	 

	Title:
	 

7

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