Document:

Exhibit 10.5

 

ASPIRATIONAL CONSUMER LIFESTYLE CORP.
II

1 Kim Seng Promenade

#18-07/12 Great World
City

Singapore 237994

  

	ASP Sponsor II LLC	January 21, 2021

1 Kim Seng Promenade

#18-07/12 Great World City

Singapore 237994

 

RE:       Securities
Subscription Agreement

 

Ladies and Gentlemen:

 

Aspirational Consumer Lifestyle Corp. II,
a Cayman Islands exempted company (the “Company”), is pleased to accept the offer ASP Sponsor II LLC, a Cayman
Islands limited liability company (the “Subscriber” or “you”), has made to subscribe for
7,187,500 of the Company’s Class B ordinary shares (the “Shares”), of US$0.0001 par value per share
(the “Class B Shares”), up to 937,500 of which are subject to forfeiture by you if the underwriters of
the Company’s initial public offering of its securities (“IPO”), if any, do not fully exercise their over-allotment
option (the “Over-allotment Option”). For the purposes of this agreement (this “Agreement”),
references to “Ordinary Shares” are to, collectively, the Class B Shares and the Company’s Class A ordinary
shares, of US$0.0001 par value per share (the “Class A Shares”). Upon certain terms and conditions, the Class
B Shares will automatically convert into Class A Shares on a one-for-one basis, subject to adjustment. Unless the context otherwise
requires, as used herein “Shares” shall be deemed to include any Class A Shares issued upon conversion of the
Class B Shares comprising the Shares. The terms on which the Company is willing to issue the Shares to the Subscriber, and the
Company and the Subscriber’s agreements regarding such Shares, are as follows:

 

1.             Subscription
of Shares.

 

For the sum of US$25,000, which the Company
acknowledges has been remitted at the Company’s direction for offering costs, the Company hereby issues the Shares to the
Subscriber, and the Subscriber hereby subscribes for the Shares from the Company, 937,500 of which are subject to forfeiture, on
the terms and subject to the conditions set forth in this Agreement. Concurrently with the Subscriber’s execution of this
Agreement, the Company shall register the Shares in the name of the Subscriber on the register of members of the Company. All references
in this Agreement to Shares being forfeited shall take effect as surrenders for no consideration of such shares as a matter of
Cayman Islands law.

 

     

     

    

 

2.             Representations,
Warranties and Agreements.

 

2.1           Subscriber’s
Representations, Warranties and Agreements. To induce the Company to issue the Shares to the Subscriber, the Subscriber hereby
represents and warrants to the Company and agrees with the Company as follows:

 

2.1.1       
No Government Recommendation or Approval. The Subscriber understands that no federal or state agency has passed upon
or made any recommendation or endorsement of the offering of the Shares.

 

2.1.2       
No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Subscriber of
the transactions contemplated hereby do not violate, conflict with or constitute a default under (i) the formation and governing
documents of the Subscriber, (ii) any agreement, indenture or instrument to which the Subscriber is a party or (iii) any law,
statute, rule or regulation to which the Subscriber is subject, or any agreement, order, judgment or decree to which the Subscriber
is subject.

 

2.1.3       
Registration and Authority. The Subscriber is a Cayman Islands limited liability company, validly formed, registered
and in good standing under the laws of the Cayman Islands and possesses all requisite power and authority necessary to carry out
the transactions contemplated by this Agreement. Upon execution and delivery by you, this Agreement is a legal, valid and binding
agreement of the Subscriber, enforceable against the Subscriber in accordance with its terms, except as such enforceability may
be limited by applicable bankruptcy, insolvency, fraudulent conveyance or similar laws affecting the enforcement of creditors’
rights generally and subject to general principles of equity (regardless of whether enforcement is sought in a proceeding at law
or in equity).

 

2.1.4       
Experience, Financial Capability and Suitability. The Subscriber is: (i) sophisticated in financial matters
and is able to evaluate the risks and benefits of the investment in the Shares and (ii) able to bear the economic risk of
its investment in the Shares for an indefinite period of time because the Shares have not been registered under the Securities
Act (as defined below) and therefore cannot be sold unless such transaction is registered under the Securities Act or an exemption
from such registration is available. The Subscriber is capable of evaluating the merits and risks of its investment in the Company
and has the capacity to protect its own interests. The Subscriber must bear the economic risk of this investment until the Shares
are sold pursuant to: (i) an effective registration statement under the Securities Act or (ii) an exemption from registration
available with respect to such sale.

 

2.1.5        Access
to Information; Independent Investigation. Prior to the execution of this Agreement, the Subscriber has had the
opportunity to ask questions of and receive answers from representatives of the Company concerning an investment in the
Company, as well as the finances, operations, business and prospects of the Company, and the opportunity to obtain additional
information to verify the accuracy of all information so obtained. In determining whether to make this investment, the
Subscriber has relied solely on the Subscriber’s own knowledge and understanding of the Company and its business based
upon the Subscriber’s own due diligence investigation and the information furnished pursuant to this paragraph. The
Subscriber understands that no person has been authorized to give any information or to make any representations which were
not furnished pursuant to this Section 2 and the Subscriber has not relied on any other representations or information in
making its investment decision, whether written or oral, relating to the Company, its operations and/or its prospects.

 

    2

     

    

 

2.1.6       
Private Placement. The Subscriber represents that it is an “accredited investor”
as such term is defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”),
and acknowledges the sale contemplated hereby is being made in reliance on a private placement exemption applicable to “accredited
investors” within the meaning of Section 501(a) of Regulation D under the Securities Act or similar exemptions under state
law.

 

2.1.7       
Investment Purposes. The Subscriber is purchasing the Shares solely for investment purposes, for the Subscriber’s
own account and not for the account or benefit of any other person, and not with a view towards the distribution or dissemination
thereof. The Subscriber did not decide to enter into this Agreement as a result of any general solicitation or general advertising
within the meaning of Rule 502 of Regulation D under the Securities Act.

 

2.1.8       
Restrictions on Transfer; Shell Company. The Subscriber understands the Shares are being offered in a transaction
not involving a public offering within the meaning of the Securities Act. The Subscriber understands the Shares will be “restricted
securities” within the meaning of Rule 144(a)(3) under the Securities Act and the Subscriber understands that any certificates
or book-entries representing the Shares will contain a legend in respect of such restrictions. If in the future the Subscriber
decides to offer, resell, pledge or otherwise transfer the Shares, such Shares may be offered, resold, pledged or otherwise transferred
only pursuant to: (i) registration under the Securities Act, or (ii) an available exemption from registration. The Subscriber agrees
that if any transfer of its Shares or any interest therein is proposed to be made, as a condition precedent to any such transfer,
the Subscriber may, at the Company’s option, be required to deliver to the Company an opinion of counsel satisfactory to
the Company. Absent registration or an exemption, the Subscriber agrees not to resell the Shares. The Subscriber further acknowledges
that because the Company is a shell company, Rule 144 may not be available to the Subscriber for the resale of the Shares until
at least one year following consummation of the initial business combination of the Company (which may not occur), despite technical
compliance with the requirements of Rule 144 and the release or waiver of any contractual transfer restrictions.

 

2.1.9       
No Governmental Consents. No governmental, administrative or other third party consents or approvals are required,
necessary or appropriate on the part of the Subscriber in connection with the transactions contemplated by this Agreement.

 

2.2           Company’s
Representations, Warranties and Agreements. To induce the Subscriber to subscribe for the Shares, the Company hereby represents
and warrants to the Subscriber and agrees with the Subscriber as follows:

 

2.2.1        Incorporation
and Corporate Power. The Company is a Cayman Islands exempted company and is qualified to do business in every
jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on the
financial condition, operating results or assets of the Company. The Company possesses all requisite corporate power and
authority necessary to carry out the transactions contemplated by this Agreement.

 

    3

     

    

 

2.2.2       
 No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Company of the
transactions contemplated hereby do not violate, conflict with or constitute a default under (i) the Company’s Memorandum
and Articles of Association, as amended to the date hereof (the "Memorandum and Articles"), (ii) any agreement,
indenture or instrument to which the Company is a party or (iii) any law, statute, rule or regulation to which the Company
is subject, or any agreement, order, judgment or decree to which the Company is subject.

 

2.2.3       
Title to Shares. Upon issuance in accordance with, and payment pursuant to, the terms hereof and the Memorandum and
Articles, and registration in the register of members of the Company, the Shares will be duly and validly issued as fully paid
and nonassessable. Upon issuance in accordance with, and payment pursuant to, the terms hereof and the Memorandum and Articles,
the Subscriber will have or receive good title to the Shares, free and clear of all liens, claims and encumbrances of any kind,
other than (a) transfer restrictions hereunder and under the other agreements to which the Shares may be subject, (b) transfer
restrictions under federal and state securities laws, and (c) liens, claims or encumbrances imposed due to the actions of the Subscriber.

 

2.2.4       
No Adverse Actions. There are no actions, suits, investigations or proceedings pending, threatened against or affecting
the Company which: (i) seek to restrain, enjoin, prevent the consummation of or otherwise affect the transactions contemplated
by this Agreement or (ii) question the validity or legality of any transactions or seeks to recover damages or to obtain other
relief in connection with any transactions.

 

2.2.5       
Authorization. The Class A Shares issuable upon conversion of the Class B Shares have been duly authorized
and reserved for issuance upon such conversion.

 

3.             Forfeiture of Shares.

 

3.1           Partial
or No Exercise of the Over-allotment Option. In the event the Over-allotment Option granted to the underwriters of the IPO
is not exercised in full, the Subscriber acknowledges and agrees that it (or, if applicable, it and any transferees of Shares)
shall forfeit at the time such Over-allotment Option expires (or earlier if the underwriters of the IPO waive their ability to
exercise such Over-allotment Option) any and all rights to such number of Shares (up to an aggregate of 375,000 Shares and pro
rata based upon the percentage of the Over-allotment Option exercised) such that immediately following such forfeiture, the number
of Shares will equal 20% of the issued and outstanding Ordinary Shares immediately following the IPO (in each case, not including
Class A Shares issuable upon exercise of any warrants).

 

3.2            Termination of Rights as Shareholder. If any of the Shares are forfeited in accordance with this Section 3, then
after such time the Subscriber (or successor in interest), shall no longer have any rights as a holder of such forfeited Shares,
and the Company shall take such action as is appropriate to cancel such forfeited Shares.

 

    4

     

    

 

4.            Waiver of Liquidation Distributions; Redemption Rights. In connection with the Shares purchased pursuant to this
Agreement, the Subscriber hereby waives any and all right, title, interest or claim of any kind in or to any distributions by
the Company from the trust account which will be established for the benefit of the Company’s public shareholders and into
which substantially all of the proceeds of the IPO will be deposited (the “Trust Account”), in the event of
a liquidation of the Company upon the Company’s failure to timely complete an initial business combination. For purposes
of clarity, in the event the Subscriber purchases securities in the IPO or in the aftermarket, any Class A Shares so purchased
shall be eligible to receive any liquidating distributions by the Company. However, in no event will the Subscriber have the right
to redeem any shares of Ordinary Shares held by it into funds held in the Trust Account upon the successful completion of an initial
business combination.

 

5.            Restrictions on Transfer.

 

5.1           Securities
Law Restrictions. In addition to any restrictions to be contained in that certain letter agreement (commonly known as an “Insider
Letter”) to be dated on or prior to the closing of the IPO by and among the Subscriber, the Company and the other parties
thereto, the Subscriber agrees not to sell, transfer, pledge, hypothecate or otherwise dispose of all or any part of the Shares
unless, prior thereto (a) a registration statement on the appropriate form under the Securities Act and applicable state securities
laws with respect to the Shares proposed to be transferred shall then be effective or (b) the Company has received, if requested
by the Company, an opinion from counsel reasonably satisfactory to the Company, that such registration is not required because
such transaction is exempt from registration under the Securities Act and the rules promulgated by the Securities and Exchange
Commission thereunder and with all applicable state securities laws.

 

5.2            Lock-up.
The Subscriber acknowledges that the Shares will be subject to lock-up provisions (the “Lock-up”) contained
in the Insider Letter. Pursuant to the Insider Letter, the Subscriber will agree (subject to certain customary exceptions) not
to sell, transfer, pledge, hypothecate or otherwise dispose of all or any part of the Shares until the earlier to occur of: (a) one
year after the completion of the Company’s initial business combination; and (b) subsequent to the Company’s initial
business combination, (x) if the last reported sale price of the Class A Shares equals or exceeds US$12.00 per share (as
adjusted for share sub-divisions, share dividends, rights issuances, consolidations, reorganizations, recapitalizations and other
similar transactions) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Company’s
initial business combination or (y) the date on which the Company consummates a liquidation, merger, amalgamation, share
exchange, reorganization or other similar transaction that results in all of the holders of the Class A Shares having the
right to exchange their Class A Shares for cash, securities or other property.

 

    5

     

    

 

5.3            Restrictive
Legends. Any certificates representing the Shares shall have endorsed thereon legends substantially as follows:

 

“THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER
THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS
WHICH, IN THE OPINION OF COUNSEL (IF THE COMPANY SO REQUESTS), IS AVAILABLE.”

 

“THE SECURITIES REPRESENTED HEREBY
ARE SUBJECT TO A LOCKUP AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED DURING THE TERM OF THE LOCKUP.”

 

5.4            Additional
Shares or Substituted Securities. In the event of the declaration of a share capitalization, the declaration of an extraordinary
dividend payable in a form other than Ordinary Shares, a spin-off, a share sub-division, an adjustment in conversion ratio, a
recapitalization or a similar transaction affecting the Company’s outstanding Ordinary Shares without receipt of consideration,
any new, substituted or additional securities or other property which are by reason of such transaction distributed with respect
to any Shares subject to this Section 5 or into which such Shares thereby become convertible shall immediately be subject to this
Section 5 and Section 3. Appropriate adjustments to reflect the distribution of such securities or property shall be made to the
number and/or class of Ordinary Shares subject to this Section 5 and Section 3.

 

5.5            Registration
Rights. The Subscriber acknowledges that the Shares are being purchased pursuant to an exemption from the registration requirements
of the Securities Act and will become freely tradable only after certain conditions are met or they are registered pursuant to
a registration rights agreement to be entered into with the Company prior to the closing of the IPO (the “Registration
Rights Agreement”).

 

6.             Other
Agreements.

 

6.1            Further
Assurances. The Subscriber agrees to execute such further instruments and to take such further action as may reasonably be
necessary to carry out the intent of this Agreement.

 

6.2            Notices.
All notices, statements or other documents which are required or contemplated by this Agreement shall be in writing and delivered
(i) personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic
transmission to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or
such other address or fax number as may be designated in writing by such party, or (iii) by electronic mail, to the electronic
mail address most recently provided to such party or such other electronic mail address as may be designated in writing by such
party. Any notice or other communication so transmitted shall be deemed to have been given on the day of delivery, if delivered
personally, on the business day following receipt of written confirmation, if sent by facsimile or electronic transmission, one
(1) business day after delivery to an overnight courier service or five (5) days after mailing if sent by mail.

 

6.3            Entire
Agreement. This Agreement, together with that certain Insider Letter to be entered into between the Subscriber and the Company
and the Registration Rights Agreement, each substantially in the form to be filed as an exhibit to the Registration Statement
on Form S-1 associated with the IPO, embodies the entire agreement and understanding between the Subscriber and the Company with
respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject
matter hereof. No statement, representation, warranty, covenant or agreement of any kind not expressly set forth in this Agreement
shall affect, or be used to interpret, change or restrict, the express terms and provisions of this Agreement.

 

    6

     

    

 

6.4            Modifications
and Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement executed by
all parties hereto.

 

6.5            Waivers
and Consents. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only
by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall
be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether
or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it
was given, and shall not constitute a continuing waiver or consent.

 

6.6            Assignment.
The rights and obligations under this Agreement may not be assigned by either party hereto without the prior written consent of
the other party.

 

6.7            Benefit. All statements, representations, warranties, covenants and agreements in this Agreement shall be binding
on the parties hereto and shall inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing
in this Agreement shall be construed to create any rights or obligations except among the parties hereto, and no person or entity
shall be regarded as a third-party beneficiary of this Agreement.

 

6.8            Governing
Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed
by the laws of New York applicable to contracts wholly performed within the borders of such state.

 

6.9            Severability. In the event that any court of competent jurisdiction shall determine that any provision, or any portion thereof,
contained in this Agreement shall be unreasonable or unenforceable in any respect, then such provision shall be deemed limited
to the extent that such court deems it reasonable and enforceable, and as so limited shall remain in full force and effect. In
the event that such court shall deem any such provision, or portion thereof, wholly unenforceable, the remaining provisions of
this Agreement shall nevertheless remain in full force and effect.

 

6.10          No
Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or remedy
under this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power
or remedy of such party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto,
nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any
other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy
by a party hereto shall not constitute a waiver of the right of such party to pursue other available remedies. No notice to
or demand on a party not expressly required under this Agreement shall entitle the party receiving such notice or demand to
any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the party
giving such notice or demand to any other or further action in any circumstances without such notice or demand.

 

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6.11         
Survival of Representations and Warranties. All representations and warranties made by the parties hereto in this
Agreement or in any other agreement, certificate or instrument provided for or contemplated hereby, shall survive the execution
and delivery hereof and any investigations made by or on behalf of the parties.

 

6.12         
No Broker or Finder. Each of the parties hereto represents and warrants to the other that no broker, finder or other
financial consultant has acted on its behalf in connection with this Agreement or the transactions contemplated hereby in such
a way as to create any liability on the other. Each of the parties hereto agrees to indemnify and save the other harmless from
any claim or demand for commission or other compensation by any broker, finder, financial consultant or similar agent claiming
to have been employed by or on behalf of such party and to bear the cost of legal expenses incurred in defending against any such
claim.

 

6.13         
Headings and Captions. The headings and captions of the various subdivisions of this Agreement are for convenience
of reference only and shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.

 

6.14         
Counterparts. This Agreement may be executed in one or more counterparts, all of which when taken together shall
be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered
to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is
delivered by facsimile transmission or any other form of electronic delivery, such signature shall create a valid and binding obligation
of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page
were an original thereof.

 

6.15          Construction.
The parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question
of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no
presumption or burden of proof will arise favoring or disfavoring any party hereto because of the authorship of any provision
of this Agreement. The words “include,” “includes,” and “including” will be deemed to be
followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to
include any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the
context otherwise requires. The words “this Agreement,” “herein,” “hereof,”
 “hereby,” “hereunder,” and words of similar import refer to this Agreement as a whole and not to any
particular subdivision unless expressly so limited. The parties hereto intend that each representation, warranty, and
covenant contained herein will have independent significance. If any party hereto has breached any representation, warranty,
or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating
to the same subject matter (regardless of the relative levels of specificity) which such party hereto has not breached will
not detract from or mitigate the fact that such party hereto is in breach of the first representation, warranty, or
covenant.

 

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6.16         
Mutual Drafting. This Agreement is the joint product of the Subscriber and the Company and each provision hereof
has been subject to the mutual consultation, negotiation and agreement of such parties and shall not be construed for or against
any party hereto.

 

6.17         
Surrender of Class B Ordinary Share. The Subscriber hereby surrenders to the Company for cancellation and for nil
consideration one Class B ordinary share of a par value US$0.0001 standing in its name in the register of members of the Company.

 

7.            Voting
and Tender of Shares. The Subscriber agrees to vote the Shares in favor of an initial business combination that the Company
negotiates and submits for approval to the Company’s shareholders and shall not seek redemption or repurchase with respect
to any of the Shares in connection with an initial business combination or any amendment to the Company’s Memorandum and
Articles of Association, as amended, prior to an initial business combination. Additionally, the Subscriber agrees not to tender
any Shares in connection with a tender offer presented to the Company’s shareholders in connection with an initial business
combination negotiated by the Company. The parties agree that the Insider Letter will require that the Company not enter into
a definitive agreement regarding its initial business combination without the prior consent of the Subscriber.

 

8.            Indemnification.
Each party shall indemnify the other against any loss, cost or damages (including reasonable attorney’s fees and expenses)
incurred as a result of such party’s breach of any representation, warranty, covenant or agreement in this Agreement.

  

[Signature Page Follows]

 

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If the foregoing accurately sets forth our
understanding and agreement, please sign the enclosed copy of this Agreement and return it to us.

 

	 	Very truly yours, 
	 	 
	 	Aspirational Consumer Lifestyle Corp. II

 

	 	By:	/s/ Ravi Thakran

		 	Name:	Ravi Thakran
		 	Title:	Chief Executive Officer

  

ASP Sponsor II LLC

 

	By:	/s/ Ravi Thakran	 

	 	Name:	Ravi Thakran	 
	 	Title: 	Chief Executive Officer	 

 

[Signature Page
to Securities Subscription Agreement]Document

EXHIBIT 10.1

SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT 

    THIS SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is executed on February 22, 2021, among BRAEMAR HOSPITALITY LIMITED PARTNERSHIP (formerly known as Ashford Hospitality Prime Limited Partnership), a Delaware limited partnership (“Borrower”), BRAEMAR HOTELS & RESORTS INC. (formerly known as Ashford Hospitality Prime, Inc.), a Maryland corporation (the “Parent”), each lender party hereto (collectively, “Lenders”), certain of their respective Subsidiaries party hereto as Guarantors, and BANK OF AMERICA, N.A., as Administrative Agent (“Administrative Agent”).

R E C I T A L S

    1.    Borrower, Parent, Administrative Agent, and Lenders are parties to that certain Second Amended and Restated Credit Agreement (as modified, amended, renewed, extended, and/or restated, the “Credit Agreement”) dated as of October 25, 2019.

    2.    The parties hereto desire to amend the Credit Agreement, subject to the terms and conditions set forth herein.

    NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

    1.    Terms and References.  Unless otherwise stated in this Amendment (a) terms defined in the Credit Agreement have the same meanings when used in this Amendment, and (b) references to “Sections” are to the Credit Agreement’s sections.

    2.    Amendments to the Credit Agreement Requiring Required Lender Consent.  

(a)    Section 1.1 of the Credit Agreement is hereby amended to add the following definitions in the appropriate alphabetical order:

“Budgeted Renovation Costs” has the meaning specified in Section 7.17(e).

“Second Amendment Effective Date” means February 22, 2021.

(b)    Section 1.1 of the Credit Agreement is hereby amended to delete the definitions of “Applicable Margin,” “Consolidated Fixed Charge Coverage Ratio” and “Waiver Period” in their entirety and to replace such definitions with the following:

 “Applicable Margin” (a) from the First Amendment Effective Date up to, but not including, the Second Amendment Effective Date, a percentage per annum equal to (i) three and one half percent (3.50%) with respect to Eurodollar Rate Loans and (ii) two and one half percent (2.50%) with respect to Base Rate Loans, (b) from the Second Amendment Effective Date up to, but not including, the last day of the Waiver Period, a percentage per annum equal to (i) three and sixty-five one hundredths percent (3.65%) with respect to Eurodollar Rate Loans and (ii) two and sixty-five one hundredths percent (2.65%) with respect to Base Rate Loans, and (c) at all other times, the applicable percentage per annum set forth below determined by reference to the Consolidated 
Second Amendment to Second Amended 
and Restated Credit Agreement 
              
4842-9930-8762 v.4

Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(a):
												
	Applicable Margin
	Pricing Level	Consolidated Leverage Ratio	Eurodollar Rate	Base Rate

	1	< 4.00x	2.25%	1.25%
	2	>4.00 but <5.00x
	2.50%	1.50%
	3	>5.00x but <5.50x
	2.75%	1.75%
	4	>5.50x but ≤6.00x	3.25%	2.25%
	5	>6.00x	3.50%	2.50%
				

Any increase or decrease in the Applicable Margin resulting from a change in the Consolidated Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(a); provided, however, that if a Compliance Certificate is not delivered when due in accordance with such Section, then, upon the request of the Required Lenders, Pricing Level 5 shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered and in each case shall remain in effect until the date on which such Compliance Certificate is delivered.  The Applicable Margin in effect from the Closing Date until adjusted as set forth above shall be set at Pricing Level 5.  The Applicable Margin in effect commencing on the last day of the Waiver Period until adjusted as set forth above shall be set at the applicable Pricing Level based upon the Consolidated Leverage Ratio as set forth in the Compliance Certificate delivered pursuant to Section 6.02(a) for the fiscal quarter ending March 31, 2022.
Notwithstanding anything to the contrary contained in this definition, the determination of the Applicable Margin for any period shall be subject to the provisions of Section 2.10(b).

“Consolidated Fixed Charge Coverage Ratio” means, without duplication, as of any date of determination, the ratio of (a) Consolidated Adjusted EBITDA for the previous four consecutive fiscal quarters ending on such date to (b) Consolidated Fixed Charges for such period.  For purposes of this calculation only, cash gains and other income (losses) in respect of Swap Contracts and foreign currency hedges realized during any applicable period shall be (i) deducted from (added to) Consolidated Adjusted EBITDA for such period but only to the extent included in net income when determining Consolidated Adjusted EBITDA and (ii) deducted from (added to) Consolidated Fixed Charges for such period; provided that for purposes of calculating the Consolidated Fixed Charge Coverage Ratio as of the last day of the fiscal quarters ending March 31, 2022, June, 30, 2022 and September 30, 2022, Consolidated Adjusted EBITDA shall be annualized based upon the three (3) month period ended March 31, 2022, the six (6) month period ended June, 30, 2022 and the nine (9) month period ended September 30, 2022, respectively.

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“Waiver Period” means the period commencing on the First Amendment Effective Date and continuing through and including the date Borrower delivers a Compliance Certificate pursuant to Section 6.02(a) for the fiscal quarter ending March 31, 2022 reflecting that the Parent is in compliance with all financial covenants set forth in Section 7.11 as of March 31, 2022 and certifying that no Default or Event of Default exists.

(c)    Section 2.05(c) of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

(c)    From and after the First Amendment Effective Date, if the Borrower, the Parent, any Loan Party or any of their respective Subsidiaries makes any Disposition (other than Dispositions permitted by Section 7.05(a), (b), or (c)), issues any Equity Interests (other than issuances by the Borrower to Parent or issuances by a direct or indirect Subsidiary of the Borrower to the Borrower or a direct or indirect Subsidiary of the Borrower), or incurs any Indebtedness, the Borrower shall, within one (1) Business Day of receipt by the Borrower, the Parent, such other Loan Party or such other Subsidiary, as applicable, of the proceeds thereof, prepay the Revolving Credit Loans in an amount equal to (i) with respect to any such Disposition, fifty percent (50%) of the Net Cash Proceeds of any such Disposition, (ii) with respect to any issuance of common Equity Interests, (A) (1) from the First Amendment Effective Date up to, but not including, the Second Amendment Effective Date, twenty-five percent (25%) of the aggregate Net Cash Proceeds received in connection with such issuances and (2) from the Second Amendment Effective Date and thereafter, (x) thirty-five percent (35%) of the aggregate Net Cash Proceeds received in connection with such issuances up to the first $50,000,000 of aggregate Net Cash Proceeds from and after the First Amendment Effective Date and (y) fifty percent (50%) of the aggregate Net Cash Proceeds received in connection with such issuances in excess of such $50,000,000 of aggregate Net Cash Proceeds, (iii) with respect to the issuance of any preferred Equity Interests (including any Preferred Equity issued after the First Amendment Effective Date), fifty percent (50%) of the Net Cash Proceeds received in connection with such issuance of preferred Equity Interests, and (E) with respect to the incurrence of any Indebtedness (including, without limitation, any refinancing or replacement of any Indebtedness existing as of the First Amendment Effective Date), fifty percent (50%) of the Net Cash Proceeds received in connection with any such Indebtedness. Each prepayment of the outstanding Revolving Credit Loans pursuant to this Section 2.05(c) shall be applied to the Outstanding Amount thereof in the inverse order of maturity, and subject to Section 2.17, each such prepayment shall be paid to the Lenders in accordance with their respective Applicable Percentages.

(d)    Section 7.11(a) of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

(a)    Consolidated Tangible Net Worth.  Permit Consolidated Tangible Net Worth, at any time after December 31, 2021, to be less than the sum of (i) $497,510,250 and (ii) an amount equal to 75% of the net equity proceeds received by the Consolidated Parties after June 30, 2019 by reason of the issuance and sale of Equity Interests in Parent.
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(e)    Section 7.11(e) of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

(e)    Consolidated Debt to TAV Ratio.  Permit the Consolidated Debt to TAV Ratio to, at any time after December 31, 2021, to exceed 65%.

(f)    Section 7.11(f) of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

(f)    Consolidated Fixed Charge Coverage Ratio.  Permit the Consolidated Fixed Charge Coverage Ratio at any time during the following periods to be less than the ratio set forth below opposite such period:

						
	Period	Minimum Consolidated Fixed Charge Coverage Ratio
	January 1, 2022 through March 31, 2022	1.00 to 1.0
	April 1, 2022 through September 30, 2022	1.10 to 1.0
	October 1, 2022 through December 31, 2022	1.20 to 1.0
	January 1, 2023 and thereafter	1.40 to 1.0

(g)    Section 7.17(e) of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

(e)    make or become legally obligated to make any expenditure in respect of the purchase or other acquisition of any fixed or capital asset other than (i) in connection with emergency repairs, life safety repairs or ordinary course maintenance repairs or as required by Law or as required under any franchise agreement or management agreement with a third party hotel brand that is not a Related Party of the Parent, the Borrower any Subsidiary or any Controlled JV Subsidiary and (ii) select renovation projects with respect to each of the Ritz-Carlton Sarasota Real Property, the Ritz-Carlton Tahoe Real Property, the Park Hyatt Beaver Creek Real Property, the Hilton Torrey Pines Real Property and the Marriott Seattle Real Property, in each case, using funds from existing furniture, fixture, and equipment reserves held in respect of each such Real Property; provided, however, that in no event shall the amount of any such expenditures permitted under this clause (ii) exceed the amounts set forth in the renovation budgets with respect to each such Real Property attached as Exhibit N (collectively, the “Budgeted Renovation Costs”); or

(h)    Schedule 1 to Exhibit D of the Credit Agreement is hereby deleted in its entirety and replaced with Schedule 1 attached hereto.

(i)    The Credit Agreement is hereby amended to add Exhibit N attached hereto.

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    3.    Amendments to the Credit Agreement Requiring All Lender Consent.  

(a)    Section 1.1 of the Credit Agreement is hereby amended to delete the definitions of “LIBOR Successor Rate,” “LIBOR Successor Rate Conforming Changes,” “Relevant Governmental Body,” “SOFR” and “Term SOFR” in their entirety and to replace such definitions with the following:

“LIBOR Successor Rate” has the meaning specified in Section 3.03(c).

“LIBOR Successor Rate Conforming Changes” means, with respect to any proposed LIBOR Successor Rate, any conforming changes to the definition of Base Rate, Interest Period, timing and frequency of determining rates and making payments of interest and other technical, administrative or operational matters (including, for the avoidance of doubt, the definition of Business Day, timing of borrowing requests or prepayment, conversion or continuation notices and length of lookback periods) as may be appropriate, in the discretion of the Administrative Agent, to reflect the adoption and implementation of such LIBOR Successor Rate and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines that adoption of any portion of such market practice is not administratively feasible or that no market practice for the administration of such LIBOR Successor Rate exists, in such other manner of administration as the Administrative Agent determines is reasonably necessary in connection with the administration of this Agreement and any other Loan Document).

“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York. 

“SOFR” with respect to any Business Day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark (or a successor administrator) on the Federal Reserve Bank of New York’s website (or any successor source) at approximately 8:00 a.m. (New York City time) on the immediately succeeding Business Day and, in each case, that has been selected or recommended by the Relevant Governmental Body. 

“Term SOFR” means the forward-looking term rate for any period that is approximately (as determined by the Administrative Agent) as long as any of the Interest Period options set forth in the definition of “Interest Period” and that is based on SOFR and that has been selected or recommended by the Relevant Governmental Body, in each case as published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion.

(b)    Section 1.1 of the Credit Agreement is hereby amended to add the following new definitions in the correct alphabetical order:

“ISDA Definitions” means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for 
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interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto.

“LIBOR Replacement Date” has the meaning specified in Section 3.03(c). 

“Pre-Adjustment Successor Rate” has the meaning specified in Section 3.03(c).

“Related Adjustment” means, in determining any LIBOR Successor Rate, the first relevant available alternative set forth in the order below that can be determined by the Administrative Agent applicable to such LIBOR Successor Rate: 

(a)    the spread adjustment, or method for calculating or determining such spread adjustment, that has been selected or recommended by the Relevant Governmental Body for the relevant Pre-Adjustment Successor Rate (taking into account the interest period, interest payment date or payment period for interest calculated and/or tenor thereto) and which adjustment or method (x) is published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion or (y) solely with respect to Term SOFR, if not currently published, which was previously so recommended for Term SOFR and published on an information service acceptable to the Administrative Agent; or 
(b)    the spread adjustment that would apply (or has previously been applied) to the fallback rate for a derivative transaction referencing the ISDA Definitions (taking into account the interest period, interest payment date or payment period for interest calculated and/or tenor thereto).

(c)    Section 3.03(c) of the Credit Agreement is hereby deleted in its entirety and replaced with the following Sections 3.03(c), (d), and (e):

(c)    Notwithstanding anything to the contrary in this Agreement or any other Loan Documents, if the Administrative Agent determines (which determination shall be conclusive absent manifest error), or the Borrower or Required Lenders notify the Administrative Agent (with, in the case of the Required Lenders, a copy to the Borrower) that the Borrower or Required Lenders (as applicable) have determined, that:

(i)    adequate and reasonable means do not exist for ascertaining LIBOR for any Interest Period hereunder or any other tenors of LIBOR, including, without limitation, because the LIBOR Screen Rate is not available or published on a current basis and such circumstances are unlikely to be temporary; or 

(ii)     the administrator of the LIBOR Screen Rate or a Governmental Authority having jurisdiction over the Administrative Agent or such administrator has made a public statement identifying a specific date after which LIBOR or the LIBOR Screen Rate shall no longer be made available, or used for determining the interest rate of loans, provided that, at the time of such statement, there is no successor administrator that is satisfactory to the Administrative Agent, that will continue to provide LIBOR after such specific date (such specific date, the “Scheduled Unavailability Date”); or

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(iii)    the administrator of the LIBOR Screen Rate or a Governmental Authority having jurisdiction over such administrator has made a public statement announcing that all Interest Periods and other tenors of LIBOR are no longer representative; or

(iv)    syndicated loans currently being executed, or that include language similar to that contained in this Section 3.03, are being executed or amended (as applicable) to incorporate or adopt a new benchmark interest rate to replace LIBOR;

then, in the case of clauses (i)-(iii) above, on a date and time determined by the Administrative Agent (any such date, the “LIBOR Replacement Date”), which date shall be at the end of an Interest Period or on the relevant interest payment date, as applicable, for interest calculated and shall occur reasonably promptly upon the occurrence of any of the events or circumstances under clauses (i), (ii) or (iii) above and, solely with respect to clause (ii) above, no later than the Scheduled Unavailability Date, LIBOR will be replaced hereunder and under any Loan Document with, subject to the proviso below, the first available alternative set forth in the order below for any payment period for interest calculated that can be determined by the Administrative Agent, in each case, without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document (the “LIBOR Successor Rate”; and any such rate before giving effect to the Related Adjustment, the “Pre-Adjustment Successor Rate”):

(x)    Term SOFR plus the Related Adjustment; and

(y)     SOFR plus the Related Adjustment; 

and in the case of clause (iv) above, the Borrower and Administrative Agent may amend this Agreement solely for the purpose of replacing LIBOR under this Agreement and under any other Loan Document in accordance with the definition of “LIBOR Successor Rate” and such amendment will become effective at 5:00 p.m., on the fifth Business Day  after the Administrative Agent shall have notified all Lenders and the Borrower of the occurrence of the circumstances described in clause (iv) above unless, prior to such time, Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders object to the implementation of a LIBOR Successor Rate pursuant to such clause;

provided  that, if the Administrative Agent determines that Term SOFR has become available, is administratively feasible for the Administrative Agent and would have been identified as the Pre-Adjustment Successor Rate in accordance with the foregoing if it had been so available at the time that the LIBOR Successor Rate then in effect was so identified, and the Administrative Agent notifies the Borrower and each Lender of such availability, then from and after the beginning of the Interest Period, relevant interest payment date or payment period for interest calculated, in each case, commencing no less than thirty (30) days after the date of such notice, the Pre-Adjustment Successor Rate shall be Term SOFR and the LIBOR Successor Rate shall  be Term SOFR plus the relevant Related Adjustment.  

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The Administrative Agent will promptly (in one or more notices) notify the Borrower and each Lender of (x) any occurrence of any of the events, periods or circumstances under clauses (i) through (iii) above, (y) a LIBOR Replacement Date and (z) the LIBOR Successor Rate.

Any LIBOR Successor Rate shall be applied in a manner consistent with market practice; provided that to the extent such market practice is not administratively feasible for the Administrative Agent, such LIBOR Successor Rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent.

Notwithstanding anything else herein, if at any time any LIBOR Successor Rate as so determined would otherwise be less than one half of one percent (0.50%), the LIBOR Successor Rate will be deemed to be one half of one percent (0.50%) for the purposes of this Agreement and the other Loan Documents.

In connection with the implementation of a LIBOR Successor Rate, the Administrative Agent will have the right to make LIBOR Successor Rate Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such LIBOR Successor Rate Conforming Changes will become effective without any further action or consent of any other party to this Agreement; provided that, with respect to any such amendment effected, the Administrative Agent shall post each such amendment implementing such LIBOR Successor Rate Conforming Changes to the Borrower and the Lenders reasonably promptly after such amendment becomes effective.

If the events or circumstances of the type described in Section 3.03(c)(i)-(iii) have occurred with respect to the LIBOR Successor Rate then in effect, then the successor rate thereto shall be determined in accordance with the definition of “LIBOR Successor Rate.”

(d)    Notwithstanding anything to the contrary herein, (i) after any such determination by the Administrative Agent or receipt by the Administrative Agent of any such notice described under Section 3.03(c)(i)-(iii), as applicable, if the Administrative Agent determines that none of the LIBOR Successor Rates is available on or prior to the LIBOR Replacement Date, (ii) if the events or circumstances described in Section 3.03(c)(iv) have occurred but none of the LIBOR Successor Rates is available, or (iii) if the events or circumstances of the type described in Section 3.03(c)(i)-(iii) have occurred with respect to the LIBOR Successor Rate then in effect and the Administrative Agent determines that none of the LIBOR Successor Rates is available, then in each case, the Administrative Agent and the Borrower may amend this Agreement solely for the purpose of replacing LIBOR or any then current LIBOR Successor Rate in accordance with this Section 3.03 at the end of any relevant Interest Period, relevant interest payment date or payment period for interest calculated, as applicable, with another alternate benchmark rate giving due consideration to any evolving or then existing convention for similar U.S. dollar denominated syndicated credit facilities for such alternative benchmarks and, in each case, including any Related Adjustments and any other mathematical or other adjustments to such benchmark giving due consideration to any evolving or then existing convention for similar U.S. dollar denominated syndicated 
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credit facilities for such benchmarks, which adjustment or method for calculating such adjustment shall be published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion and may be periodically updated. For the avoidance of doubt, any such proposed rate and adjustments shall constitute a LIBOR Successor Rate. Any such amendment shall become effective at 5:00 p.m. on the fifth Business Day after the Administrative Agent shall have posted such proposed amendment to all Lenders and the Borrower unless, prior to such time, Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders object to such amendment.

(e)    If, at the end of any Interest Period, relevant interest payment date or payment period for interest calculated, no LIBOR Successor Rate has been determined in accordance with clauses (c) or (d) of this Section 3.03 and the circumstances under clauses (c)(i) or (c)(iii) above exist or the Scheduled Unavailability Date has occurred (as applicable), the Administrative Agent will promptly so notify the Borrower and each Lender. Thereafter, (x) the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended, (to the extent of the affected Eurodollar Rate Loans, Interest Periods, interest payment dates or payment periods), and (y) the Eurodollar Rate component shall no longer be utilized in determining the Base Rate, until the LIBOR Successor Rate has been determined in accordance with clauses (c) or (d). Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans (to the extent of the affected Eurodollar Rate Loans, Interest Periods, interest payment dates or payment periods) or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans (subject to the foregoing clause (y)) in the amount specified therein.  

4.    Amendments to other Loan Documents.

(a)    All references in the Loan Documents to the Credit Agreement shall henceforth include references to the Credit Agreement, as modified and amended hereby, and as may, from time to time, be further amended, modified, extended, renewed, and/or increased. 

(b)    Any and all of the terms and provisions of the Loan Documents are hereby amended and modified wherever necessary, even though not specifically addressed herein, so as to conform to the amendments and modifications set forth herein.

    5.    Conditions Precedent.  This Amendment shall not be effective unless and until:

(a)    Administrative Agent receives this Amendment executed by Borrower, Parent, Guarantors, Administrative Agent, and Required Lenders; provided, however, that solely with respect to the amendments set forth in Section 3 of this Amendment, such changes shall only become effective if this Amendment is executed by Borrower, Parent, Guarantors, Administrative Agent, and all Lenders;

(b)     Administrative Agent receives evidence dated within thirty (30) days as of the date hereof that each Loan Party is validly existing, in good standing and qualified to engage in business in its jurisdiction of formation and each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; 
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(c)    Administrative Agent receives a renovation budget acceptable to Administrative Agent with respect to the proposed renovation projects at each of the Ritz Carlton Sarasota Real Property, the Ritz-Carlton Tahoe Northstar Real Property, the Hyatt Beaver Creek Resort Real Property, the Hilton LaJolla Torrey Pines Real Property and the Marriott Seattle Waterfront Real Property;

(d)    the representations and warranties in the Credit Agreement, as amended by this Amendment, and each other Loan Document are true and correct in all material respects (without duplication of any materiality qualifiers set forth therein) on and as of the date of this Amendment as though made as of the date of this Amendment except to the extent that (i) any of them speak to a different specific date or (ii) the facts on which any of them were based have been changed by transactions contemplated or permitted by the Credit Agreement; 

(e)    Borrower shall have paid to Administrative Agent and Lenders, in immediately available funds, (i) all fees due under any Fee Letter or any other Loan Documents as of the date hereof and (ii) the estimated reasonable fees and expenses of Administrative Agent’s counsel incurred in connection with this Amendment; and

(f)    after giving effect to this Amendment, no Default or Event of Default exists.

    6.    Ratifications.  Each of Borrower and Parent (a) ratifies and confirms all provisions of the Loan Documents as amended by this Amendment, (b) ratifies and confirms that all guaranties, assurances, and Liens granted, conveyed, or assigned to Administrative Agent for the benefit of Lenders under the Loan Documents are not released, reduced, or otherwise adversely affected by this Amendment and continue to guarantee, assure, and secure full payment and performance of the present and future obligations of Borrower, Parent and each Guarantor under the Credit Agreement and the Loan Documents, and (c) agrees to perform such acts and duly authorize, execute, acknowledge, deliver, file, and record such additional documents, and certificates as Administrative Agent may request in order to create, perfect, preserve, and protect those guaranties, assurances, and Liens.

    7.    Representations.  Each of Borrower and Parent represents and warrants to Administrative Agent and Lenders that as of the date of this Amendment: (a) this Amendment has been duly authorized, executed, and delivered by Borrower, Parent, and each Guarantor; (b) no action of, or filing with, any governmental authority is required to authorize, or is otherwise required in connection with, the execution, delivery, and performance by Borrowers, Parent, or Guarantors of this Amendment; (c) the Loan Documents, as amended by this Amendment, are valid and binding upon Borrower, Parent, and Guarantors and are enforceable against Borrower, Parent, and Guarantors in accordance with their respective terms, except as limited by Debtor Relief Laws; (d) the execution, delivery, and performance by Borrower, Parent, and Guarantors of this Amendment does not require the consent of any other Person and do not and will not constitute a violation of any laws, agreements, or understandings to which Borrower, Parent, or any Guarantor is a party or by which Borrower, Parent, or any Guarantor is bound; (e) all representations and warranties in the Loan Documents are true and correct in all material respects (without duplication of any materiality qualifiers set forth therein) except (i) to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date or (ii) the facts on which any of them were based have been changed by transactions contemplated or permitted by the Credit Agreement or by the effects of COVID-19 pandemic; and (f) after giving effect to this Amendment, no Default or Event of Default exists.

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    8.    Continued Effect.  Except to the extent amended hereby, all terms, provisions and conditions of the Credit Agreement and the other Loan Documents, and all documents executed in connection therewith, shall continue in full force and effect and shall remain enforceable and binding in accordance with their respective terms.

    9.    Miscellaneous.  Unless stated otherwise (a) the singular number includes the plural and vice versa and words of any gender include each other gender, in each case, as appropriate, (b) headings and captions may not be construed in interpreting provisions, (c) this Amendment shall be subject to the provisions regarding choice of law, submission to jurisdiction, waiver of venue, service of process, and waiver of jury trial set forth in Section 11.14 and 11.15 of the Credit Agreement, and such provisions are incorporated herein by this reference, mutatis mutandis, (d) if any part of this Amendment is for any reason found to be unenforceable, all other portions of it nevertheless remain enforceable, and (e) this Amendment may be executed in any number of counterparts (originals or facsimile copies followed by original executed counterparts within two (2) Business Days, but the failure to deliver original executed counterparts shall not affect the validity, enforceability, and binding effect of this Amendment) with the same effect as if all signatories had signed the same document, and all of those counterparts must be construed together to constitute the same document. Borrower shall pay the reasonable fees and expenses of counsel for Administrative Agent incurred in connection with this Amendment in accordance with Section 11.04 of the Credit Agreement.

    10.    Release.  The Loan Parties hereby acknowledge that, as of the date hereof, the Obligations under the Credit Agreement and under the other Loan Documents are absolute and unconditional without any right of rescission, setoff, counterclaim, defense, offset, cross-complaint, claim or demand of any kind or nature from Administrative Agent.  Borrower and Parent hereby voluntarily and knowingly release and forever discharge agents, employees, successors, and assigns (collectively, the “Released Parties”) from all possible claims, demands, actions, causes of action, damages, costs, expenses, and liabilities whatsoever arising from or whether known or unknown, anticipated or unanticipated, suspected or unsuspected, fixed, contingent, or conditional, at law or in equity, originating in whole or in part on or before the date hereof which any Loan Party may now or hereafter have against the Released Parties, if any, and irrespective of whether any such claims arise out of contract, tort, violation of law or regulations, or otherwise, including, without limitation, any contracting for, charging, taking, reserving, collecting, or receiving interest in excess of the highest lawful rate applicable.

    11.    Electronic Signatures.  This Amendment and any document, amendment, approval, consent, information, notice, certificate, request, statement, disclosure or authorization related to this Amendment (each a “Communication”), including Communications required to be in writing, may be in the form of an Electronic Record and may be executed using Electronic Signatures.  Each of Borrower, Parent, and each Guarantor agrees that any Electronic Signature on or associated with any Communication shall be valid and binding on Borrower, Parent, and each Guarantor to the same extent as a manual signature, and that any Communication entered into by Electronic Signature, will constitute the legal, valid and binding obligation of Borrower, Parent, and each Guarantor enforceable against such in accordance with the terms thereof to the same extent as if manually executed.  Any Communication may be executed in as many counterparts as necessary or convenient, including both paper and electronic counterparts, but all such counterparts are one and the same Communication.  For the avoidance of doubt, the authorization under this paragraph may include use or acceptance by Administrative Agent and each of the Lenders of a manually signed paper Communication which has been converted into electronic form (such as scanned into PDF format), or an electronically signed Communication converted into another format, for transmission, delivery and/or retention.  Administrative Agent and each of the Lenders may, at 
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its option, create one or more copies of any Communication in the form of an imaged Electronic Record (“Electronic Copy”), which shall be deemed created in the ordinary course of such Person’s business, and destroy the original paper document.  All Communications in the form of an Electronic Record, including an Electronic Copy, shall be considered an original for all purposes, and shall have the same legal effect, validity and enforceability as a paper record.  Notwithstanding anything contained herein to the contrary, Administrative Agent is under no obligation to accept an Electronic Signature in any form or in any format unless expressly agreed to by Administrative Agent pursuant to procedures approved by it; provided, further, without limiting the foregoing, (a) to the extent Administrative Agent has agreed to accept such Electronic Signature, Administrative Agent and each of the Lenders shall be entitled to rely on any such Electronic Signature purportedly given by or on behalf of Borrower, Parent, or any Guarantor without further verification and (b) upon the request of Administrative Agent or any Lender, any Electronic Signature shall be promptly followed by such manually executed counterpart.  For purposes hereof, “Electronic Record” and “Electronic Signature” shall have the meanings assigned to them, respectively, by 15 USC §7006, as it may be amended from time to time.

    12.    Loan Document.  This Amendment shall be a Loan Document under and as defined in the Credit Agreement.

    13.    Entireties.  The Credit Agreement as amended by this Amendment represents the final agreement among the parties about the subject matter of the Credit Agreement as amended by this Amendment and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties.  There are no unwritten oral agreements among the parties.

    14.    Parties.  This Amendment binds and inures to Borrower, Parent, Administrative Agent, each Lender, and their respective successors and permitted assigns.

[Remainder of Page Intentionally Left Blank; Signature Pages to Follow]

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EXECUTED as of the date first stated above.

BORROWER:

BRAEMAR HOSPITALITY LIMITED PARTNERSHIP, a Delaware limited liability company

By:    Braemar OP General Partner LLC, its general partner

By:     /s/ Robert G. Haiman    
    Robert G. Haiman
    Executive Vice President, General Counsel, and Secretary

PARENT:

BRAEMAR HOTELS & RESORTS INC., a Nevada corporation

By:     /s/ Robert G. Haiman    
    Robert G. Haiman
    Executive Vice President, General Counsel, and Secretary

Signature Page to 
Second Amendment to Second Amended and Restated Credit Agreement

ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A., as Administrative Agent

By:    /s/ Suzanne E. Pickett                
    Suzanne E. Pickett
    Senior Vice President

Signature Page to 
Second Amendment to Second Amended and Restated Credit Agreement

LENDERS:

BANK OF AMERICA, N.A., as a Lender

By:      /s/ Suzanne E. Pickett            
    Suzanne E. Pickett
    Senior Vice President

Signature Page to 
Second Amendment to Second Amended and Restated Credit Agreement

KEYBANK NATIONAL ASSOCIATION, as a Lender

By:     /s/ Michael P. Szuba                    
    Name:  Michael P. Szuba                
    Title:    Senior Vice President                

Signature Page to 
Second Amendment to Second Amended and Restated Credit Agreement

MORGAN STANLEY SENIOR FUNDING, INC., as a Lender

By:     /s/ Jack Kuhns                    
    Name:  Jack Kuhns                
    Title:        Vice President                
Signature Page to 
Second Amendment to Second Amended and Restated Credit Agreement

To induce the Administrative Agent and Lenders to enter into this Amendment, the undersigned (a) consents and agrees to the Amendment’s execution and delivery, (b) ratifies and confirms that all guaranties, assurances, and liens granted, conveyed, or assigned to Administrative Agent and Lenders under the Loan Documents are not released, diminished, impaired, reduced, or otherwise adversely affected by the Amendment and continue to guarantee, assure, and secure the full payment and performance of all present and future Obligations, (c) agrees to perform such acts and duly authorize, execute, acknowledge, deliver, file, and record such additional guaranties, assignments, security agreements, deeds of trust, mortgages, and other agreements, documents, instruments, and certificates as Administrative Agent may reasonably deem necessary or appropriate in order to create, perfect, preserve, and protect those guaranties, assurances, and liens, (d) waives notice of acceptance of this consent and agreement, which consent and agreement binds the undersigned and its successors and permitted assigns and inures to the Administrative Agent and Lenders and their respective successors and permitted assigns, and (e) ratifies and confirms the release contained in Section 10 herein and the agreement regarding electronic signatures contained in Section 11 herein.

GUARANTORS: 

BRAEMAR OP LIMITED PARTNER LLC
BRAEMAR OP GENERAL PARTNER LLC

By:    /s/ Robert G. Haiman    
Robert G. Haiman
Executive Vice President, General Counsel, and Secretary

ASHFORD HHC III LLC

By:    /s/ Robert G. Haiman    
Robert G. Haiman
Vice President and Secretary

BRAEMAR TRS CORPORATION

By:    /s/ Deric S. Eubanks    
Deric S. Eubanks
President

Signature Page to 
Second Amendment to Second Amended and Restated Credit Agreement

For the Quarter/Year ended ___________________, ____ (“Statement Date”)
SCHEDULE 1
to the Compliance Certificate
($ in 000’s)
																									
	I.	Section 7.11(a) – Consolidated Tangible Net Worth.
	
						
		A.	Actual Consolidated Tangible Net Worth at Statement Date:	
						
			1.	Shareholders’ Equity:	$______	
						
			2.	Intangible Assets:	$______	
						
			3.	Accumulated depreciation	$______	
						
			4.	Reversal of any effects of the application of FASB ASC No. 715: Compensation—Retirement Benefits	$______	
						
			5.	Reversal of impact from (i) straight line rent leveling adjustments required under GAAP and (ii) amortization of intangibles pursuant to FASB Statement No. 141	$______	
						
			6.	Consolidated Tangible Net Worth (Line I.A1 minus Line I.A.2 plus Line I.A.3, plus or minus, as applicable, Line I.A.4, plus or minus, as applicable, Line I.A.5):
	$______	
						
		B.	$497,510,250  
		
						
		C.	75% of increases in Shareholders’ Equity after June 30, 2019, from issuance and sale of Equity Interests of the Parent:	$______	
						
		D.	Minimum required Consolidated Tangible Net Worth (Lines I.B plus I.C):
	$______	
						
		E.	[Excess][Deficiency] for covenant compliance (Line I.A.6 minus I.D):
	$______	
						
	II.	Section 7.11 (b) – Consolidated Recourse Indebtedness.
	
						
		A.	Consolidated Recourse Indebtedness other than Consolidated Recourse Indebtedness under the Agreement at Statement Date:	$______	
					
			Maximum permitted:	$0.00	
						

Schedule 1 to 
Second Amendment to Second Amended and Restated Credit Agreement

																									
	III.	Section 7.11 (c) – Secured Indebtedness on Real Property.
		
						
		A.	As-is appraised value of Real Property securing Secured Indebtedness as of the date such Secured Indebtedness was incurred (see attached schedule for individual listing of Real Property):		
					
			1. [______________]	$______	
			2. [______________]	$______	
			3. [______________]	$______	
			4. [______________]	$______	
				
		B.	Maximum Secured Indebtedness on each Real Property (each property listed in Line III.A multiplied by 70%):
		
					
			1. [______________]	$______	
			2. [______________]	$______	
			3. [______________]	$______	
			4. [______________]	$______	
				
		C.	Secured Indebtedness secured by each Real Property above at Statement Date:		
					
			1. [______________]	$______	
			2. [______________]	$______	
			3. [______________]	$______	
			4. [______________]	$______	
				
		D.	[Excess][Deficiency] for covenant compliance
(applicable item in Line III.C minus applicable item in Line III.B):
		
					
			1. [______________]	$______	
			2. [______________]	$______	
			3. [______________]	$______	
			4. [______________]	$______	
				
	IV.	Section 7.11 (d) – Variable Rate Indebtedness.
		
						
		A.	Consolidated Funded Indebtedness at Statement Date:	$______	
					
		B.	Maximum Variable Rate Indebtedness (Line IV.A multiplied by 25%):
	$______	
					
		C.	Indebtedness of the Consolidated Parties that accrues interest
at a variable rate at Statement Date:
	$______	
					
		D.	[Excess][Deficiency] for covenant compliance
(Line IV.C minus IV.B):
	$______	

Schedule 1 to 
Second Amendment to Second Amended and Restated Credit Agreement

																									
				
	V.	Section 7.11 (e) – Consolidated Debt to TAV Ratio. 
	
		A.	Consolidated Funded Indebtedness at Statement Date:
	$______	
		B.	Operating Property Value of all Real Properties:	$______	
		C.	Available Cash in excess of $10,000,000:	$______	
		D.	The undepreciated cost (after any impairments) in accordance with GAAP of all mortgage or real estate-related loan assets and undeveloped or speculative land:	$______	
		E.	Contract purchase price for all assets under contract for purchase:	$______	
		F.	Adjusted TAV ((Line V.B plus Line V.D plus Line V.E):
	$______	
		G.	Consolidated Debt to TAV Ratio ((Line V.A minus Line V.C) divided by Line V.F):
	______%	
			Maximum permitted Consolidated Debt to TAV Ratio:          
	65%	
	

VI.
	

Section 7.11(f) - Consolidated Fixed Charge Coverage Ratio.
	
						
		A.	Consolidated Adjusted EBITDA for Calculation Period:	$______	
						
		B.	Consolidated Interest Charges for Calculation Period:
	$______	
						
		C.	Scheduled principal payments, etc. for Calculation Period:	$______	
						
		D.	Dividends and distributions, etc. for Calculation Period:	$______	
						
		E.	Consolidated Fixed Charge Coverage Ratio (Line VI.A divided by (Line VI.B plus Line VI.C plus Line VI.D)):
	____ to 1
	
						
			Minimum required Consolidated Fixed Charge Coverage Ratio:
		
					
	Period	Minimum Consolidated Fixed Charge Coverage Ratio		
	January 1, 2022 through March 31, 2022	1.00 to 1.0		
	April 1, 2022 through September 30, 2022	1.10 to 1.0		
	October 1, 2022 through December 31, 2022	1.20 to 1.0		
	January 1, 2023 and thereafter	1.40 to 1.0		

Schedule 1 to 
Second Amendment to Second Amended and Restated Credit Agreement

																									
	VII.	Section 7.17(e) – Budgeted Renovation Costs.

A.      Ritz Carlton Sarasota Real Property

    1.    Budgeted Renovation Costs                    $________
    2.    Actual Costs through Statement Date                $________
    3.    Remaining FF&E balance at Statement Date            $________

B.      Ritz Carlton Northstar Real Property

    1.    Budgeted Renovation Costs                    $________
    2.    Actual Costs through Statement Date                $________
    3.    Remaining FF&E balance at Statement Date            $________

C.      Hyatt Beaver Creek Resort Real Property

    1.    Budgeted Renovation Costs                    $________
    2.    Actual Costs through Statement Date                $________
    3.    Remaining FF&E balance at Statement Date            $________

D.      Hilton LaJolla Torrey Pines Real Property

    1.    Budgeted Renovation Costs                    $________
    2.    Actual Costs through Statement Date                $________
    3.    Remaining FF&E balance at Statement Date            $________
	
			
		E.      Marriott Seattle Waterfront Real Property

    1.    Budgeted Renovation Costs                    $________
    2.    Actual Costs through Statement Date                $________
    3.    Remaining FF&E balance at Statement Date            $________
	
			
			
			
			
	VIII.	Consolidated Leverage Ratio (calculated for purposes of determining the Applicable Margin but not for financial covenant compliance).	
		A.	Consolidated Funded Indebtedness at Statement Date:	$______	
		B.	Unrestricted Cash at Statement Date:	$______	
		C.	Line VII.A plus Line VII.B:
	$______	
		D.	Consolidated Adjusted EBITDA for Calculation Period:	$______	
		G.	Consolidated Leverage Ratio (Line VII.C divided by Line VII.D):
	$______ 
to 1.00	
					

Schedule 1 to 
Second Amendment to Second Amended and Restated Credit Agreement

EXHIBIT N
BUDGETED RENOVATION COSTS

																					
	BHR 2021 Spend Summary    

							
							
							
							
	Hotel/Projects		FF&E Escrow As of 1/13/21 (A)		2021 Forecasted Spend (B)		Net Remaining Escrow (A-B)
	Ritz-Carlton Sarasota:						
	10 Key Additions						
	Beach Club - Retail/Café						
	Beach Club - Beach Restrooms						
	3 Meeting Rooms Refresh						
	Total		$    3,732,419		$    2,033,084		$    1,699,335
							
	Ritz-Carlton Lake Tahoe:						
	Spa Refresh						
	Lobby Retail/Market						
	Total		$    4,007,581		$    1,374,842		$    2,632,739
							
	Park Hyatt Beaver Creek:						
	Warehouse FF&E Installation						
	Total		$    273,946		$    40,000		$    233,946
							
	Hilton Torrey Pines:						
	Corner Pantry/Market Conversion
						
	Total		$    3,868,550		$    558,067		$    3,310,483
							
	Marriott Seattle:						
	Guestrooms Renovation						
	Total		$    6,649,436		$    5,305,325		$    1,344,111

Exhibit N to 
Second Amendment to Second Amended and Restated Credit Agreement

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