Document:

Exhibit 10.1

 

 

	
 
    	
SFX Entertainment, Inc.
    
	
 
    	
430 Park Avenue
    
	
Direct   Phone: +1 646 561 6386
    	
New York, NY 10022
    

 

March 21, 2014

 

Mr. Paul Greenberg

142 E. 16th Street, Apt. 3F

New York, NY 10003

 

Dear Paul,

 

We are delighted to confirm to you (sometimes called the “Executive”) that we are offering you a position as a President of SFX Entertainment Inc. (“SFX” or the “Company”), subject to the terms and conditions set forth herein.  The terms and conditions of your employment with SFX are set forth in this letter agreement.  This offer is subject to the satisfactory completion of the conditions set forth in Section 14(a) of this letter agreement.

 

1.                                      Start Date.  This agreement shall become effective on February 1, 2014 (the “Start Date”).

 

2.                                      Duties.  You will work in New York City, New York and report to the Chief Executive Officer of the Company.  As a member of senior management team, you shall work with the team to set policy and direction for company.  Your responsibilities shall be determined and directed by the Chief Executive Officer, but shall include supervision of partnerships and revenue operations; and working to maximize customer usage of digital offerings.

 

(a)                                     Nothing in this Section applies to your membership or contribution of your non-working time or services, in a non-remunerative capacity, to any: charitable or educational organization, foundation, or association; political organization or campaign; religious group, foundation, or organization; non-profit trade, professional, community, or recreational organization or club, or part-time teaching, so long as the purpose or aim of any such organization presents no conflict with the business of the Company or any of its subsidiaries, as determined by the Board.

 

(b)                                     No provision of this agreement shall be construed to prohibit your: (i) acquisition, ownership, or trading, including without limitation your indirect ownership, of less than two percent (2%) of the issued and outstanding stock (or comparable bonds, options, derivatives, or negotiable instruments) of a business entity having securities publicly traded anywhere in the world, provided, however, that the ownership limitations of this clause (i) shall not apply to (x) your ownership of any such securities through an open-end mutual fund or (y) your ownership of any such securities that precedes the effective date of this agreement if, but only if, the issuer of the securities is not a competitor of the Company; or (ii) passive ownership of stock, partnership interests, or comparable ownership interests or securities in any for-profit private business entity that is not directly competitive with the

 

 

business of the Company or any of its subsidiaries or (iii) compensation relating to any other position you may have on a Board of Directors of any company on which you may serve as permitted under this Section. The Company additionally agrees that nothing in this agreement shall operate to prohibit your acceptance of a testamentary gift, bequest, or its equivalent, or your retention of any such gift, bequest, or its equivalent following its delivery, so long as you retain the interest(s) solely for investment purposes.

 

3.                                      Term:  Five (5) years (the “Term”).

 

4.                                      Compensation.

 

(a)                                 Base Salary.  In consideration for the performance of your services hereunder, you will be paid a base salary (“Base Salary”), of Three Hundred Dollars ($300,000.00) annually.  This Base Salary will be payable in accordance with the Company’s normal payroll practices and subject to applicable tax and payroll withholdings and deductions.  Currently, the Company’s payroll is payable on the fifteenth and the last day of each month.  As an exempt employee, you will not be eligible for overtime pay.

 

(b)                                 Bonus.  You shall be entitled to a bonus of One Hundred Fifty Thousand Dollars ($150,000.00) (the “Target Bonus”) annually, to be paid as and when the Company makes such payments to other senior executives, but not later than March 31 of the year after it is earned.

 

(c)                                  Additional Bonus.  At the end of each year of the Term when “Attributable EBITDA” (as hereinafter defined) exceeds $15,000,000.00, you shall be paid an additional bonus equal to (i) 1% of Attributable EBITDA for such year minus (ii) $150,000.  For this purpose, “Attributable EBITDA” shall mean EBITDA attributable to revenue operations relating to sponsorships, advertising and marketing partnerships during such year, less direct expenses and Company platform overhead.

 

(d)                                 Equity Grants:

 

(i)                                     Subject to the approval of the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”), you shall receive a grant of an option to purchase Five Hundred Thousand (500,000) shares of the Company’s common stock upon signing this agreement (the “Initial Options”).  The strike price and vesting provisions of the Initial Options shall be fixed by the Compensation Committee, however, it is intended that Company management shall ask that you receive an option for 500,000 shares with a strike price of the fair market price as of the Start Date, vesting ratably over the Term, with the first vesting date on your Start Date and annually thereafter.

 

(ii)                                  You shall also be eligible to receive discretionary option grants from time to time.  The terms of such option grants will be fixed by the Compensation Committee.

 

(e)                                  Discretionary Bonus.  You will also be eligible to participate in any annual incentive compensation plan, program and/or arrangements as established by the Board of Directors of the Company (the “Board”) or its Compensation Committee.  During the term of your employment, the Board and/or its Compensation Committee may review the performance of the Company or its employees and may, at its discretion, grant additional bonuses, which may be payable, in the Company’s discretion, in either cash, stock or both.

 

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(f)                                   Expenses.  You shall be reimbursed for reasonable and customary business expenses in accordance with Company policy and upon submission of such documentation and approvals as the Company may require.

 

5.                                      Termination.

 

(a)                                 The Company and you may terminate this letter agreement for any reason on not less than thirty (30) days notice.  In addition, the Company may immediately terminate this letter agreement for Cause, and you may immediately terminate this letter agreement for Good Reason.

 

(b)                                 If you die, become permanently disabled or are terminated for Cause (or if you terminate without Good Reason), then the Company will have no further obligations to you other than to pay your Base Salary through the date of termination and reimburse you for any unreimbursed expenses you have incurred (such obligations, the “Accrued Obligations”).

 

(c)                                  If the Company terminates you without Cause or if you terminate with Good Reason, then, in addition to the Accrued Obligations, you will be entitled to receive a lump sum payment of Four Hundred Thousand Dollars ($400,000.00) within sixty (60) days of the termination date.

 

(d)                                 Your entitlement to the payments described in Section 5 (other than the Accrued Obligations) is expressly contingent upon you first providing the Company with a signed general release of claims in favor of the Company substantially in the form attached as Exhibit A hereto (the “Release”) and not revoking such Release for a period of seven (7) days after its execution or thereafter.  In order to be effective, the Release must be delivered by you to the Company no later than forty-five (45) days following the Termination Date.  In the event that the 45 day period following the Termination Date begins in one calendar year and ends in another calendar year, the cash payments to be made under Section 5 (other than the Accrued Obligations), shall be paid in the later calendar year.

 

(e)                                  If the Company terminates you without Cause, if there is a Change of Control (as hereinafter defined) and you are terminated within one year thereof, or if you terminate this letter agreement for Good Reason, all options to purchase Company stock granted under this letter agreement or any other agreement that have not previously vested shall vest.

 

(f)                                   For the purposes of this letter agreement, “Cause” shall mean that you have:

 

(i)                                     falsified or omitted information as required by Section 11 of this letter agreement;

 

(ii)                                  committed an act which, as set forth in any employment handbook promulgated by the Company, may lead to termination of employment, unless curable, in which case such cure shall not have been completed within thirty (30) days following the Company’s notice to you;

 

(iii)                               engaged in any intentional act of fraud against the Company;

 

(iv)                              engaged in willful malfeasance or gross negligence in the performance of this letter agreement or capacity as an employee of the Company;

 

(v)                                 refused to perform the duties required or requested consistent with your obligations under this letter agreement and under law, which refusal continues for more than five (5) days following the Company’s written notice of such refusal;

 

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(vi)                              been convicted of a felony or entering a plea of nolo contendre to a felony charge;

 

(vii)                           materially breached this letter agreement, subject to a fifteen (15) day cure period following the Company’s written notice of such breach to the extent such breach is curable; or

 

(viii)                        engaged in an act which leads to a finding by the Securities and Exchange Commission, which, in the opinion of independent counsel selected by the Company, could reasonably be expected to impair or impede the Company’s ability to register, list, or otherwise offer its stock to the public, or to maintain itself as a publicly-traded company in good standing with the Securities and Exchange Commission.

 

(g)                                  “Good Reason” shall mean if, before the end of the Term, one or more of the following events shall occur (unless such event(s) applies generally to all similarly situated senior executives of the Company):

 

(i)                                     the assignment of any duties to you or the reduction of your duties, without your express written consent, either of which results in a significant diminution in your position or responsibilities with the Company in effect immediately prior to such assignment, or the removal from such position and responsibilities;

 

(ii)                                  without your express written consent, a substantial reduction or change with respect to the facilities, support staff, or prerequisites (including office space and location) available to you immediately prior to such reduction or change;

 

(iii)                               without your express written consent, compelling you to work at a location outside of the New York City metropolitan area;

 

(iv)                              a material reduction by the Company in the kind or level of employee benefits to which you are entitled immediately prior to such reduction with the result that your overall benefits package is significantly reduced;

 

(v)                                 the failure of the Company to obtain the assumption of this Agreement by any successor; or

 

(vi)                              any material breach by the Company of any material provision of this Agreement.

 

(h)                                 “Change of Control” shall mean the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

 

(i)                                     any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (an “Exchange Act Person”) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than thirty-five percent (35%) of the combined voting power of the Company, then outstanding securities other than by virtue of a merger, consolidation or similar transaction, provided that, notwithstanding the foregoing, a Change in Control shall not be deemed to occur (i) if Robert F.X. Sillerman or affiliates of his (a “Sillerman Controlled Entity”) beneficially own more than such thirty-five percent (35%) at any time; or (ii) solely because the level of ownership held by any Exchange Act Person (the “Subject

 

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Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided further that if a Change in Control would occur (but for the operation of this proviso) as a result of the acquisition of voting securities by the Company, and after such share acquisition, any such Subject Person (so long as not a Sillerman Controlled Entity) becomes the owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities owned by such Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur;

 

(ii)                                  there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company if, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not own, directly or indirectly, either (A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction;

 

(iii)                               there is consummated a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries to an entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportion as their ownership of the Company immediately prior to such sale, lease, license or other disposition; or

 

(iv)                              during any period of 12 consecutive months, individuals who at the beginning of such period constitute the Board cease for any reason to constitute at least a majority thereof unless the election, or the nomination for election by stockholders, of each new director was approved by a vote of at least a majority of the directors then still in office who were directors at the beginning of the period.

 

(i)                                     (i)                                     In the event it shall be determined that any payment, right or distribution by the Company or any other person or entity to or for the benefit of Executive pursuant to the terms of this Agreement or otherwise, which is made in connection with, or arising out of, his employment with the Company or a Change of Control of the Company or a substantial portion of its assets (a “Payment”) is a “parachute payment” within the meaning of Section 280G of the Code on account of the aggregate value of the Payments due to Executive being equal to or greater than three times the “base amount,” as defined in Section 280G(b)(3) of the Code, (the “Parachute Threshold”) so that Executive would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”) and the net after-tax benefit that Executive would receive by reducing the Payments to the Parachute Threshold is greater than the net after-tax benefit Executive would receive if the full amount of the Payments were paid to Executive, then the Payments payable to Executive shall be reduced (but not below zero) so that the Payments due to Executive do not exceed the amount of the Parachute Threshold, reducing first any cash Payments under Section 5 hereof.

 

(ii)                                  All determinations required to be made under this Section 5, including whether any Payment is a “parachute payment” and the assumptions to be utilized in arriving at

 

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such determination, shall be made by a nationally recognized law or accounting firm designated by the Company (the “Firm”) and shall be based upon “substantial authority” (within the meaning of Section 6662 of the Code). The Firm shall provide detailed supporting calculations both to the Company and Executive within fifteen (15) business days of the receipt of notice from the Company or Executive that there has been a Payment, or such earlier time as is requested by the Company. All fees and expenses of the Firm shall be borne by the Company. Any determination by the Firm shall be binding upon the Company and Executive.

 

(j)                                    (i)                                     Notwithstanding anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payment of the benefits set forth herein either shall either be exempt from the requirements of Section 409A of the Code (“Section 409A”) or shall comply with the requirements of such provision. Notwithstanding any provision of this Agreement to the contrary, if Executive is a “specified employee” within the meaning of Section 409A, any payments or arrangements due upon a termination of Executive’s employment under any arrangement that constitute a “nonqualified deferral of compensation” within the meaning of Section 409A and which do not otherwise qualify under the exemptions under Treas. Regs. Section 1.409A-1 (including without limitation, the short-term deferral exemption or the permitted payments under Treas. Regs. Section 1.409A-l(b)(9)(iii)(A)), shall be delayed and paid or provided on the earlier of (i) the date which is six months after Executive’s “separation from service” (as such term is defined in Section 409A and the regulations and other published guidance thereunder) for any reason other than death, and (ii) the date of Executive’s death.

 

(ii)                                  After any Termination Date, Executive shall have no duties or responsibilities that are inconsistent with having a “separation from service” within the meaning of Section 409A as of the Termination Date and, notwithstanding anything in the Agreement to the contrary, distributions upon termination of employment of nonqualified deferred compensation may only be made upon a “separation from service” as determined under Section 409A and such date shall be the Termination Date for purposes of this Agreement. Each payment under this Agreement or otherwise shall be treated as a separate payment for purposes of Section 409A. In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement which constitutes a “nonqualified deferral of compensation” within the meaning of Section 409A and to the extent an amount is payable within a time period, the time during which such amount is paid shall be in the discretion of the Company.

 

(iii)                               To the extent that any reimbursements pursuant to this agreement or otherwise are taxable to Executive, any reimbursement payment due to Executive pursuant to such Section shall be paid to Executive on or before the last day of Executive’s taxable year following the taxable year in which the related expense was incurred. Such reimbursements are not subject to liquidation or exchange for another benefit and the amount of such reimbursements that Executive receives in one taxable year shall not affect the amount of such reimbursements that Executive receives in any other taxable year.

 

6.                                      Benefits.  Subject to the eligibility requirements and other terms and conditions of the respective plan documents, you shall be eligible to participate in benefits offered by the Company, as may be in effect or modified from time to time, for senior executives of the Company.  In addition, you shall be entitled to travel in business class as permitted under Company guidelines for senior executives.

 

7.                                      Compliance with Policies and Procedures.  You agree to be bound by and to comply fully with all Company policies and procedures for employees.

 

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8.                                      Confidentiality.

 

(a)                                 You acknowledge that, as a result of your employment with the Company, you will be in possession of trade secrets and confidential and proprietary information (the “Confidential Information”) of the Company.  You agree to keep secret all Confidential Information and not to disclose Confidential Information to anyone outside of the Company (other than to the Company’s advisors, agents, consultants, financing sources and other representatives), except in connection with the performance of your duties under this letter agreement, provided that: (i) you shall have no such obligation to the extent Confidential Information is or becomes publicly known, other than as a result of your breach of your obligations hereunder; and (ii) you may disclose such information pursuant to a court or similar order, but you agree to use reasonable efforts to provide the Company with prompt notice of such request so that the Company may seek an appropriate protective order.  You agree to deliver promptly to the Company at the termination of your employment, or at any other time the Company may so request, all memoranda, notes, records, reports, and other documents (including electronically stored information) relating to the Company’s business which you obtained while employed by, or otherwise serving or acting on behalf of, the Company and which you may then possess or have under your control. You acknowledge that the disclosure of Confidential Information would have a material adverse effect on the operations and development of the business of the Company. Therefore, you agree that in the event of your failure to comply with the provisions of this Section 8(a) the Company shall be entitled to the entry of an injunction or other equitable relief and you shall not object to such injunction or equitable relief on the basis of an adequate remedy at law or other reason. This remedy shall be in addition to any other remedies available to the Company.

 

(b)                                 You agree not to disclose the terms of this letter agreement to anyone except your immediate family and your tax advisors or legal counsel, prospective employers (but with disclosure limited to terms relating to your post-employment restrictions under this letter agreement), pursuant to a court or similar order, or in connection with any proceeding to enforce your rights under this letter agreement or any other agreement between you and the Company, except as otherwise required by law.

 

9.                                      Company Work Product. You acknowledge and agree that all of the ideas, concepts, inventions and work product rendered or provided by you during the term of your employment which directly or indirectly relate to the Company’s business, whether alone or in conjunction with others (collectively, and without limitation, the “Company Work Product”), whether created at home or at the office and whether or not created during normal business hours, shall (a) be the sole and exclusive property of the Company and you shall not have any right, title or interest therein and (b) constitute “works made for hire” under all applicable copyright, trademark, and similar or related statutes, regulations, or decisional law.  In furtherance of the foregoing, you hereby assign to the Company all of your rights, title, and interest, whether choate or inchoate or whole or partial, in any Company Work Product created, developed, or discovered by you during the term of your employment.  You further agree to cooperate fully and promptly with, and otherwise facilitate, any efforts by the Company to vest in the Company all rights, title and interest in and to the Company Work Product and to register, preserve, and protect the Company Work Product from use by others, or from dilution or diminution.  You agree to execute and deliver any and all documents, agreements and instruments to evidence the rights of the Company in the Company Work Product as provided in this Section 9. You hereby irrevocably name the Company as your attorney-in-fact, and irrevocably grant to the Company a power of attorney to execute and deliver any and all documents, agreements and instruments in your name as may be reasonably required to give effect to this Section 9; provided, that this power of attorney shall be exercised only with respect to any document, agreement or instrument that you fail to execute and deliver after five days written request by the Company.  The rights granted to the Company in this Section 9 shall continue in

 

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effect after the termination or expiration of your employment term to the extent necessary for the Company’s full enjoyment of such rights.

 

10.                               Restrictive Covenants.

 

(a)                                 During the Term and for a period of one (1) year after termination of your employment hereunder, you shall not engage, whether directly or indirectly, through a sole proprietorship, or as an employee, officer, consultant, director, manager, managing member, stockholder, limited partner, general partner, trustee or member of any corporation, general partnership, limited partnership, trust, limited liability company or any other entity, in any business which is directly competitive with the Company’s Business.  For purposes of this Section 10, the term “Business” shall mean (x) any business in which the Company is actually engaged as of the termination date of your employment, or (y) any business in which, as of the termination date of your employment, the Company, with your knowledge and/or participation, is actively planning on becoming engaged during within the ensuing twelve (12) months from the termination date of your employment.

 

(b)                                 During the Term and for a period of one (1) year after termination of your employment hereunder, you shall not:

 

(i)                                     Request, induce or attempt to influence any person or entity who is or was a client, customer, contractor or supplier of the Company to limit, curtail or cancel its business with the Company; or

 

(ii)                                  Request, induce, or attempt to influence any current or future officer, director, employee, consultant, agent or representative of the Company to: (A) terminate his, her, or its employment or business relationship with the Company; or (B) commit any act that, if committed by you, would constitute a breach of any term or provision of this Section 10.

 

11.                               Background Information.  As more fully described on the following pages, the Company may conduct a background check, which may include a “consumer report” and/or an “investigative consumer report” prepared by SFX or by a third party.  These reports may be obtained at any time after receipt of your authorization and, if you are hired, throughout your employment.  Falsification or omission of any information previously provided to the Company or provided to the Company on the attached release may disqualify you for employment or result in your immediate dismissal, if hired.  Your rights relating to this background check are more fully set forth on the attached release.

 

12.                               Representations.  You represent, warrant and covenant to the Company that you are free to execute this letter agreement and provide the services contemplated hereunder and the engagement hereunder does not conflict with or violate, and will not be restricted by any pre-existing business relationship or agreement to which you are a party or are otherwise bound.  Without limiting the foregoing, you further represent, warrant and covenant to the Company that you are under no contractual commitments, including without limitation, any confidentiality, proprietary rights, non-solicitation, non-competition agreement or similar type of restrictive covenant agreement, inconsistent with your obligations to the Company and that you will not at any time during the course of your employment by the Company violate and/or breach any obligation or contractual/common law commitment that you may have to a third party or prior employer.

 

13.                               Superseding of Prior Understandings or Agreements; No Employment or Compensation Guarantees or Other Modifications Except as Provided Herein.  You acknowledge that you have not relied on any oral or written representations or understandings not explicitly contained herein in executing

 

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this letter agreement.  This document supersedes any and all oral or written understandings or agreements regarding your employment with the Company or any of its affiliates.  No employee or representative of the Company, other than in a writing signed by an authorized officer of the Company, may enter into any agreement or understanding (a) guaranteeing you employment with the Company for any specific duration, (b) providing you with a guaranteed level of compensation with the Company, whether incentive compensation, severance pay or otherwise, or (c) otherwise modifying the terms of this letter agreement.

 

14.                               Miscellaneous.

 

(a)                                 This offer is subject to the satisfactory completion of the Company’s standard drug, background and reference screening, authorization of your right to work in the United States, and you hereby represent and warrant there is no non-competition agreement or other restrictions that would prohibit or interfere with your working for the Company.

 

(b)                                 If any provision of this letter agreement is or becomes invalid, illegal or unenforceable in any respect under the law, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.

 

(c)                                  This letter agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving reference to the principles of conflicts of laws or where the parties are located at the time a dispute arises.  Any controversy, dispute or claim arising out of or relating to this agreement or breach thereof shall first be submitted to mediation in New York City administered by JAMS.  If the parties are unsuccessful at resolving the dispute through mediation, the parties agree to binding arbitration in New York City administered by JAMS pursuant to its Streamlined Arbitration Rules and Procedures.  The arbitrator shall award to the prevailing party, if any, the costs and attorneys’ fees reasonably incurred by the prevailing party in connection with the arbitration.  The parties shall maintain the confidential nature of the mediation and arbitration proceedings, and the award, unless otherwise required by law or judicial decision.  Judgment on the award may be entered in any court having jurisdiction.

 

We look forward to you joining the Company.  If the terms of this letter agreement are acceptable to you and you are ready, willing and able to abide by all the conditions enumerated herein, please sign and date below and return it to me.

 

	
 
    	
 
    	
Sincerely,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SFX   ENTERTAINMENT INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Richard Rosenstein
    
	
 
    	
 
    	
Name:
    	
Richard   Rosenstein
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
Acknowledged and Agreed to:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/ Paul Greenberg
    	
 
    	
 
    	
 
    
	
Name:
    	
Paul   Greenberg
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    	
 
    

 

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EXHIBIT A

 

GENERAL RELEASE OF CLAIMS

 

1.                                                            (“Employee”), for himself and his family, heirs, executors, administrators, legal representatives and their respective successors and assigns, in exchange for the consideration received pursuant to Section 5 of the employment letter agreement to which this release is attached as Exhibit A (the “Agreement”), does hereby release and forever discharge SFX Entertainment Inc. (the “Company”), its subsidiaries, affiliated companies, successors and assigns, and its current or former directors, officers, employees, shareholders or agents in such capacities (collectively with the Company, the “Released Parties”) from any and all actions, causes of action, suits, controversies, claims and demands whatsoever, for or by reason of any matter, cause or thing whatsoever, whether known or unknown including, but not limited to, all claims under any applicable laws arising under or in connection with Employee’s employment or termination thereof, whether for tort, breach of express or implied employment contract, wrongful discharge, intentional infliction of emotional distress, or defamation or injuries incurred on the job or incurred as a result of loss of employment.  Employee acknowledges that the Company encouraged him to consult with an attorney of his choosing, and through this General Release of Claims encourages him to consult with his attorney with respect to possible claims under the Age Discrimination in Employment Act (“ADEA”) and that he understands that the ADEA is a Federal statute that, among other things, prohibits discrimination on the basis of age in employment and employee benefits and benefit plans.  Without limiting the generality of the release provided above, Employee expressly waives any and all claims under ADEA that he may have as of the date hereof.  Employee further understands that by signing this General Release of Claims he is in fact waiving, releasing and forever giving up any claim under the ADEA as well as all other laws within the scope of this paragraph 1 that may have existed on or prior to the date hereof.  Notwithstanding anything in this paragraph 1 to the contrary, this General Release of Claims shall not apply to (i) any rights to receive any payments or benefits pursuant to Section 5 of the Agreement, (ii) any rights or claims that may arise as a result of events occurring after the date this General Release of Claims is executed, (iii) any indemnification rights Employee may have as a former officer or director of the Company or its subsidiaries or affiliated companies, (iv) any claims for benefits under any directors’ and officers’ liability policy maintained by the Company or its subsidiaries or affiliated companies in accordance with the terms of such policy, and (v) any rights as a holder of equity securities of the Company.

 

2.                                      Employee represents that he has not filed against the Released Parties any complaints, charges, or lawsuits arising out of his employment, or any other matter arising on or prior to the date of this General Release of Claims, and covenants and agrees that he will never individually or with any person file, or commence the filing of, any charges, lawsuits, complaints or proceedings with any governmental agency, or against the Released Parties with respect to any of the matters released by Employee pursuant to paragraph 1 hereof (a “Proceeding”); provided, however, Employee shall not have relinquished his right to commence a Proceeding to challenge whether Employee knowingly and voluntarily waived his rights under ADEA.

 

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3.                                      Employee hereby acknowledges that the Company has informed him that he has up to twenty-one (21) days to sign this General Release of Claims and he may knowingly and voluntarily waive that twenty-one (21) day period by signing this General Release of Claims earlier.  Employee also understands that he shall have seven (7) days following the date on which he signs this General Release of Claims within which to revoke it by providing a written notice of his revocation to the Company.

 

4.                                      Employee acknowledges that this General Release of Claims will be governed by and construed and enforced in accordance with the internal laws of the State of New York applicable to contracts made and to be performed entirely within such State.

 

5.                                      Employee acknowledges that he has read this General Release of Claims, that he has been advised that he should consult with an attorney before he executes this general release of claims, and that he understands all of its terms and executes it voluntarily and with full knowledge of its significance and the consequences thereof.

 

6.                                      This General Release of Claims shall take effect on the eighth day following Employee’s execution of this General Release of Claims unless Employee’s written revocation is delivered to the Company within seven (7) days after such execution.

 

	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
                                      ,   20    
    

 

11Exhibit 10.1

 

Loan Numbers: 1008457

and 1008458

 

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of March 20, 2014, is made by and between RLJ LODGING TRUST, L.P., a limited partnership formed under the laws of the State of Delaware (the “Borrower”), RLJ LODGING TRUST, a Maryland real estate investment trust (“Parent Guarantor”), each of the undersigned Lenders party to the Credit Agreement (as defined below) (the “Lenders”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent.

 

WHEREAS, Borrower, Parent Guarantor, Administrative Agent and the Lenders party thereto have entered into that certain Amended and Restated Credit Agreement dated as of November 20, 2012 (the “Credit Agreement”), (capitalized terms used herein and not defined herein have the meanings provided in the Credit Agreement);

 

WHEREAS, pursuant to the Credit Agreement, the Term Loan Lenders advanced to Borrower the Term Loan in the original principal amount of $275,000,000;

 

WHEREAS, Section 2.16.(a) of the Credit Agreement provides that the Borrower may request increases in the aggregate amount of the Term Loan Commitments, provided that the Outstanding Amount of the Term Loan shall not exceed $400,000,000, and contemporaneously with the execution of this Amendment, certain of the Term Loan Lenders and the Borrower have agreed to increases of the Term Loan Commitments of such Term Loan Lenders which shall increase the Outstanding Amount of the Term Loan to $400,000,000; and

 

WHEREAS, the parties hereto desire to amend the Credit Agreement to extend the Term Loan Maturity Date, to decrease the Applicable Margin for Term Loan, to permit the Borrower hereafter to increase the maximum Outstanding Amount of the Term Loan to $600,000,000, to increase the minimum Tangible Net Worth Requirement, and to otherwise modify certain terms of the Credit Agreement, each as more particularly set forth herein.

 

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

 

1.                                      Section 1.1 of the Credit Agreement is hereby amended by adding the following definitions:

 

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C.  1 et seq.), as amended from time to time, and any successor statute.

 

“Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of its Guaranty of such Swap Obligation is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or

 

 

official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time such Guaranty becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guaranty is or becomes illegal.

 

“First Amendment Effective Date” means March 20, 2014.

 

“Participant Register” has the meaning given to that term in Section 13.6.(b).

 

“Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

 

2.                                      Section 1.1 of the Credit Agreement is hereby amended by amending and restating the following definition in its entirety:

 

“Term Loan Maturity Date” means March 20, 2019.

 

3.                                      Section 1.1 of the Credit Agreement is hereby amended by replacing the table contained within the definition of “Applicable Margin” in its entirety with the following table:

 

	
Level
    	
 
    	
Leverage Ratio
    	
 
    	
Applicable Margin
   for Revolving Credit
   Loans
    	
 
    	
Applicable Margin for
   Term Loan
    	
 
    
	
1
    	
 
    	
Less than 4.00 to 1.00
    	
 
    	
1.75
    	
%
    	
1.55
    	
%
    
	
2
    	
 
    	
Greater than or equal to 4.00 to 1.00 but less than 5.00 to 1.00
    	
 
    	
1.90
    	
%
    	
1.70
    	
%
    
	
3
    	
 
    	
Greater than or equal to 5.00 to 1.00 but less than 5.50 to 1.00
    	
 
    	
2.10
    	
%
    	
1.90
    	
%
    
	
4
    	
 
    	
Greater than or equal to 5.50 to 1.00 but less than 6.00 to 1.00
    	
 
    	
2.20
    	
%
    	
2.00
    	
%
    
	
5
    	
 
    	
Greater than or equal to 6.00 to 1.00
    	
 
    	
2.50
    	
%
    	
2.30
    	
%
    

 

4.                                      Section 1.1 of the Credit Agreement is hereby amended by adding the following sentence at end of the definition of “Applicable Margin” therein:

 

2

 

“For the avoidance of doubt, for the period from the First Amendment Effective Date through but excluding the date on which the Applicable Margin shall be next adjusted as set forth in this definition, the Applicable Margin shall be determined based on Level 1, such that the Applicable Margin for the Revolving Credit Loans shall be 1.75% and the Applicable Margin for the Term Loan shall be 1.55%.”

 

5.                                      The first sentence of Section 2.16.(a) of the Credit Agreement is hereby amended to read as follows:

 

“The Borrower shall have the right to request increases in the aggregate amount of the Revolving Credit Commitments or Term Loan Commitments (or both) by providing written notice to the Administrative Agent; provided, however, that after giving effect to any such increases the aggregate amount of the Revolving Credit Commitments shall not exceed $600,000,000 and the Outstanding Amount of the Term Loan shall not exceed $600,000,000.”

 

6.                                      The first sentence of Section 5.1.(a) of the Credit Agreement is hereby amended by inserting the words “or liquidity” after the word “capital” in each instance in which the word “capital” appears in such sentence.

 

7.                                      Section 10.1.(g) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“(g)                            Minimum Tangible Net Worth.  The Parent Guarantor and the Borrower shall not permit Tangible Net Worth at any time to be less than (i) $2,022,345,000  plus (ii) 75.0% of the Net Proceeds of all Equity Issuances effected at any time after December 31, 2013 by the Parent Guarantor or any of its Subsidiaries to any Person other than the Parent Guarantor or any of its Subsidiaries.”

 

8.                                      Section 11.5 of the Credit Agreement is hereby amended by adding the following language as a separate paragraph at the end of such Section:

 

“Excluded Swap Obligations with respect to any Guarantor shall not be paid with amounts received from such Guarantor or such Guarantor’s assets, but appropriate adjustments shall be made with respect to payments from other Loan Parties to preserve the allocations otherwise set forth above in this Section.”

 

9.                                      Section 13.6.(b) of the Credit Agreement is hereby amended by adding the following language to the end of such Section:

 

“Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in any Loan, any Note, any Commitment or any other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any Loan, any Note, any Commitment or any other obligations under the Loan Documents) to any Person except (x) to the extent that such

 

3

 

disclosure is necessary to establish that such Loan, any Note, any Commitment or any other obligations under the Loan Documents is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations or (y) as provided in the immediately preceding sentence. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.”

 

10.                               Section 13.6.(e) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“In addition to the assignments and participations permitted under the foregoing provisions of the Section, and without the need to comply with any of the formal or procedural requirements of this Section, any Lender may at any time and from time to time, pledge and assign all or any portion of its rights under all or any of the Loan Documents to a Federal Reserve Bank or other central bank having jurisdiction over such Lender; provided that no such pledge of assignment shall release such Lender from its obligations thereunder or substitute any such pledgee or assignee for such Lender as a party hereto.”

 

11.                               Exhibit J to the Credit Agreement is hereby deleted and replaced in its entirety with the “Exhibit J” attached to this Amendment.  For the avoidance of doubt, any reference in the Credit Agreement to the “Transfer Authorizer Designation Form” shall refer to the “Disbursement Instruction Agreement” attached hereto as “Exhibit J” as the replacement to the Transfer Authorizer Designation Form.

 

12.                               Schedule I to the Credit Agreement is hereby deleted and replaced in its entirety with the “Schedule I” attached to this Amendment.

 

13.                               The parties hereto agree that the Guarantied Obligations, as defined in that certain Amended and Restated Guaranty dated as of November 20, 2012 by Parent Guarantor and the Subsidiary Guarantors party thereto, given in connection with the Credit Agreement, shall not include any Excluded Swap Obligations.

 

14.                               The Borrower and the Parent Guarantor each hereby certifies that: (a)  no Default or Event of Default exists as of the date hereof or would exist immediately after giving effect to this Amendment; (b) the representations and warranties made or deemed made by the Borrower or any other Loan Party in any Loan Document to which such Loan Party is a party are true and correct in all material respects (unless any such representation and warranty is qualified by materiality, in which event such representation and warranty is true and correct in all respects) on and as of the date hereof, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties were true and correct in all material respects (unless any such representation and warranty is qualified by materiality, in which event such representation and warranty was true and correct in all respects) on and as of such earlier date) and except as a result of transactions permitted by the Credit Agreement, (c) no consent, approval, order or authorization of, or registration or filing with, any third party (other than any required filing with the SEC, which the Borrower agrees to

 

4

 

file in a timely manner) is required in connection with the execution, delivery and carrying out of this Amendment or, if required, has been obtained, and (d) this Amendment has been duly authorized, executed and delivered so that it constitutes the legal, valid and binding obligation of the Borrower and the Parent Guarantor, enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, and other similar laws affecting the rights of creditors generally and the availability of equitable remedies for the enforcement of certain obligations contained herein and as may be limited by equitable principles generally.  The Borrower and the Parent Guarantor each confirms that the Obligations remain outstanding without defense, set off, counterclaim, discount or charge of any kind as of the date of this Amendment.  Except as expressly provided herein, this Amendment shall not constitute an amendment, waiver, consent or release with respect to any provision of any Loan Document, a waiver of any default or Event of Default under any Loan Document, or a waiver or release of any of the Lenders’ or Administrative Agent’s rights and remedies (all of which are hereby reserved).

 

15.                               Ratification.  The Borrower and the Parent Guarantor each hereby reaffirms and confirms its obligations under the Credit Agreement, as amended hereby.

 

16.                               GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

17.                               Counterparts.  To facilitate execution, this Amendment and any amendments, waivers, consents or supplements may be executed in any number of counterparts as may be convenient or required.  It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all persons required to bind any party, appear on each counterpart.  All counterparts shall collectively constitute a single document.  It shall not be necessary in making proof of this document to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto.

 

18.                               Headings.  The headings of this Amendment are provided for convenience of reference only and shall not affect its construction or interpretation.

 

19.                               Loan Document.  This Amendment shall constitute a Loan Document under the Credit Agreement.

 

REST OF PAGE INTENTIONALLY LEFT BLANK

 

5

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their authorized officers all as of the day and year first above written.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
RLJ   LODGING TRUST, L.P.,
    
	
 
    	
a   Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
By:
    	
RLJ   Lodging Trust,
    
	
 
    	
 
    	
a   Maryland real estate investment trust,
    
	
 
    	
 
    	
its   sole general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Thomas J. Baltimore, Jr.
    
	
 
    	
 
    	
Name:
    	
Thomas   J. Baltimore, Jr.
    
	
 
    	
 
    	
Title:
    	
President   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
PARENT   GUARANTOR:
    
	
 
    	
 
    
	
 
    	
RLJ   LODGING TRUST,
    
	
 
    	
a   Maryland real estate investment trust
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas J. Baltimore, Jr.
    
	
 
    	
 
    	
Name:
    	
Thomas   J. Baltimore, Jr.
    
	
 
    	
 
    	
Title:
    	
President   and Chief Executive Officer
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, Swingline Lender   and Issuing Bank, and as a Revolving Credit Lender and Term Loan Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark F. Monahan
    
	
 
    	
 
    	
Name:
    	
Mark   F. Monahan
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

	
 
    	
BANK   OF AMERICA, N.A., as Syndication Agent, as a Revolving Credit Lender and as a   Term Loan Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Suzanne Eaddy
    
	
 
    	
 
    	
Name:
    	
Suzanne   Eaddy
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

	
 
    	
PNC   BANK, NATIONAL ASSOCIATION, as a Revolving Credit Lender and as a Term Loan   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Katie Chowdhry
    
	
 
    	
 
    	
Name:
    	
Katie   Chowdhry
    
	
 
    	
 
    	
Title:
    	
Assistant   Vice President
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

	
 
    	
BARCLAYS   BANK PLC, as a Revolving Credit Lender and a Term Loan Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Noam Azachi
    
	
 
    	
 
    	
Name:
    	
Noam   Azachi
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

 Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

	
 
    	
DEUTSCHE   BANK TRUST COMPANY AMERICAS, as a Revolving Credit Lender and as a Term Loan   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James Rolison
    
	
 
    	
 
    	
Name:
    	
James   Rolison
    
	
 
    	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   J. T. Johnaton Coe
    
	
 
    	
 
    	
Name:
    	
J.T.   Johnaton Coe
    
	
 
    	
 
    	
Title:
    	
Managing   Director
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

	
 
    	
COMPASS   BANK, an Alabama banking corporation, as a Revolving Credit Lender and as a   Term Loan Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Don Byerly
    
	
 
    	
 
    	
Name:
    	
Don   Byerly
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION, as a Revolving Credit Lender and as a Term Loan   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey Geifman
    
	
 
    	
 
    	
Name:
    	
Jeffrey   Geifman
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to Amendment to Amended and Restated Credit Agreement dated as of
 March 20, 2014, with RLJ Lodging Trust, L.P.

 

	
 
    	
ROYAL   BANK OF CANADA, as a Revolving Credit Lender and as a Term Loan Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John Flores
    
	
 
    	
 
    	
Name:
    	
John   Flores
    
	
 
    	
 
    	
Title:
    	
Authorized   Signatory
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

	
 
    	
SUMITOMO   MITSUI BANKING CORPORATION, as a Revolving Credit Lender and as a Term Loan   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/  Ryuichi Nishizawa
    
	
 
    	
 
    	
Name:
    	
Ryuichi   Nishizawa
    
	
 
    	
 
    	
Title:
    	
Managing   Director
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

 Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

	
 
    	
KEYBANK   NATIONAL ASSOCIATION, as a Revolving Credit Lender and as a Term Loan Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Meredith H. Houseworth
    
	
 
    	
 
    	
Name:
    	
Meredith   H. Houseworth
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

	
 
    	
THE   BANK OF NOVA SCOTIA, as a Revolving Credit Lender and as a Term Loan Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   George Sherman
    
	
 
    	
 
    	
Name:
    	
George   Sherman
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

 

	
 
    	
TD   BANK, N.A., as a Revolving Credit Lender and as a Term Loan Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John Howell
    
	
 
    	
 
    	
Name:   John Howell
    
	
 
    	
 
    	
Title:   Vice President
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

 

	
 
    	
BRANCH   BANKING AND TRUST COMPANY, as a Revolving Credit Lender and as a Term Loan   Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Glenn A. Page
    
	
 
    	
 
    	
Name:   Glenn A. Page
    
	
 
    	
 
    	
Title:   Senior Vice President
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

 

	
 
    	
RAYMOND JAMES BANK, N.A., as   a Revolving Credit Lender and as a Term Loan Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ James M. Armstrong
    
	
 
    	
 
    	
Name: James M. Armstrong
    
	
 
    	
 
    	
Title: Senior Vice President
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

 

	
 
    	
REGIONS BANK, as a   Revolving Credit Lender and as a Term Loan Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Vincent Hughes
    
	
 
    	
 
    	
Name: Vincent Hughes
    
	
 
    	
 
    	
Title: Vice President
    

 

[Signatures Continued on Next Page]

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Signature Page to First Amendment to Amended and Restated Credit Agreement dated as of March 20, 2014, with RLJ Lodging Trust, L.P.

 

	
 
    	
CAPITAL ONE, N.A., as a   Revolving Credit Lender and as a Term Loan Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ashish Tandon
    
	
 
    	
 
    	
Name:    Ashish Tandon 
    
	
 
    	
 
    	
Title:  Vice   President
    

 

[WFB/RLJ — First Amendment to Amended and Restated Credit Agreement]

 

 

Exhibit J

 

DISBURSEMENT INSTRUCTION AGREEMENT

 

Borrower:  RLJ Lodging Trust, L.P.

 

Lender:  Wells Fargo Bank, N.A., as Administrative Agent

 

Loan:  Loan numbers 1008457 and 1008458 made pursuant to that certain Amended and Restated Credit Agreement dated as of November 20, 2012, as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of March 20 2014, each between Borrower, Lender, RLJ Lodging Trust, and the Lenders party thereto, as amended from time to time

 

Effective Date:

 

Check applicable box:

 

o            New — This is the first Disbursement Instruction Agreement submitted in connection with the Loan.

o            Replace Previous Agreement — This is a replacement Disbursement Instruction Agreement.  All prior instructions submitted in connection with this Loan are cancelled as of the Effective Date set forth above.

 

This Agreement must be signed by the Borrower and is used for the following purposes:

 

(1)         to designate an individual or individuals with authority to request disbursements of Loan proceeds, whether at the time of Loan closing/origination or thereafter;

(2)         to designate an individual or individuals with authority to request disbursements of funds from Restricted Accounts (as defined in the Terms and Conditions attached to this Agreement), if applicable; and

(3)         to provide Lender with specific instructions for wiring or transferring funds on Borrower’s behalf.

 

Any of the disbursements, wires or transfers described above is referred to herein as a “Disbursement.”

 

Specific dollar amounts for Disbursements must be provided to Lender at the time of the applicable Disbursement in the form of a signed closing statement, an email instruction or other written communication (each, a “Disbursement Request”) from an applicable Authorized Representative (as defined in the Terms and Conditions attached to this Agreement).

 

A new Disbursement Instruction Agreement must be completed and signed by the Borrower if (i) all or any portion of a Disbursement is to be transferred to an account or an entity not described in this Agreement or (ii) Borrower wishes to add or remove any Authorized Representatives.

 

See the Additional Terms and Conditions attached hereto for additional information and for definitions of certain capitalized terms used in this Agreement.

 

 

WIRE INSTRUCTIONS RECEIVED FROM THIRD PARTIES MUST BE ATTACHED.

 

Disbursement of Loan Proceeds at Origination/Closing

 

Closing Disbursement Authorizers:  Lender is authorized to accept one or more Disbursement Requests from any of the individuals named below (each, a “Closing Disbursement Authorizer”) to disburse Loan proceeds on or about the date of the Loan origination/closing and to initiate Disbursements in connection therewith (each, a “Closing Disbursement”):

 

	
 
    	
 
    	
Individual’s Name
    	
 
    	
Title
    
	
1.
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
 
    	
 
    	
 
    

 

Describe Restrictions, if any, on the authority of the Closing Disbursement Authorizers (dollar amount limits, wire/deposit destinations, etc.):

DESCRIBE APPLICABLE RESTRICTIONS OR INDICATE “N/A”

If there are no restrictions described here, any Closing Disbursement Authorizer may submit a Disbursement Request for all available Loan proceeds.

 

Direct Deposit:  Disbursement Requests for the Closing Disbursement(s) to be deposited into an account at Wells Fargo Bank, N.A. must specify the amount and applicable account.  Each account included in any such Disbursement Request must be listed below.

 

Name on Deposit Account: 

Wells Fargo Bank, N.A. Deposit Account Number: 

Further Credit Information/Instructions: 

 

 

WIRE INSTRUCTIONS RECEIVED FROM THIRD PARTIES MUST BE ATTACHED.

 

Disbursements of Loan Proceeds Subsequent to Loan Closing/Origination

 

Subsequent Disbursement Authorizers:  Lender is authorized to accept one or more Disbursement Requests from any of the individuals named below (each, a “Subsequent Disbursement Authorizer”) to disburse Loan proceeds after the date of the Loan origination/closing and to initiate Disbursements in connection therewith (each, a “Subsequent Disbursement”):

 

	
 
    	
 
    	
Individual’s Name
    	
 
    	
Title
    
	
1.
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
 
    	
 
    	
 
    

 

Describe Restrictions, if any, on the authority of the Subsequent Disbursement Authorizers (dollar amount limits, wire/deposit destinations, etc.):

DESCRIBE APPLICABLE RESTRICTIONS OR INDICATE “N/A”

If there are no restrictions described here, any Subsequent Disbursement Authorizer may submit a Disbursement Request for all available Loan proceeds.

 

Permitted Wire Transfers:  Disbursement Requests for Subsequent Disbursements to be made by wire transfer must specify the amount and applicable Receiving Party.  Each Receiving Party included in any such Disbursement Request must be listed below.  Lender is authorized to use the wire instructions that have been provided directly to Lender by the Receiving Party or Borrower and attached as the Subsequent Disbursement Exhibit. All wire instructions must contain the information specified on the Subsequent Disbursement Exhibit.

 

	
 
    	
 
    	
Names of Receiving Parties for Subsequent Disbursements (may include as   many parties as needed; wire instructions for each   Receiving Party must be attached as the Subsequent Disbursement Exhibit)
    
	
1.
    	
 
    	
 
    
	
2.
    	
 
    	
 
    
	
3.
    	
 
    	
 
    

 

Direct Deposit:  Disbursement Requests for Subsequent Disbursements to be deposited into an account at Wells Fargo Bank, N.A. must specify the amount and applicable account.  Each account included in any such Disbursement Request must be listed below.

 

Name on Deposit Account: 

Wells Fargo Bank, N.A. Deposit Account Number: 

Further Credit Information/Instructions: 

 

 

WIRE INSTRUCTIONS RECEIVED FROM THIRD PARTIES MUST BE ATTACHED.

 

Restricted Account Disbursements

 

Restricted Account Disbursement Authorizers:  Lender is authorized to accept one or more Disbursement Requests from any of the individuals named below (each, a “Restricted Account Disbursement Authorizer”) to disburse funds from a Restricted Account and to initiate Disbursements in connection therewith (each, a “Restricted Account Disbursement”):

 

	
 
    	
 
    	
Individual’s Name
    	
 
    	
Title
    
	
1.
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
 
    	
 
    	
 
    

 

Describe Restrictions, if any, on the authority of the Restricted Account Disbursement Authorizers (dollar amount limits, wire/deposit destinations, etc.):

DESCRIBE APPLICABLE RESTRICTIONS OR INDICATE “N/A”

If there are no restrictions described here, any Restricted Account Disbursement Authorizer may submit a Disbursement Request for all available funds.

 

Permitted Wire Transfers: Disbursement Requests for Restricted Account Disbursements to be made by wire transfer must specify the amount and applicable Receiving Party. Each Receiving Party included in any such Disbursement Request must be listed below. Lender is authorized to use the wire instructions that have been provided directly to Lender by the Receiving Party or Borrower and attached as the Restricted Account Disbursement Exhibit. All wire instructions must contain the information specified on the Restricted Account Disbursement Exhibit.

 

	
 
    	
 
    	
Names of Receiving Parties for Restricted   Account Disbursements (may include as many parties as needed; wire instructions   for each Receiving Party must be attached as the Restricted Account   Disbursement Exhibit)
    
	
1.
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
 
    	
 
    	
 
    

 

Direct Deposit:  Disbursement Requests for Restricted Account Disbursements to be deposited into an account at Wells Fargo Bank, N.A. must specify the amount and applicable account.  Each account included in any such Disbursement Request must be listed below.

 

Name on Deposit Account: 

Wells Fargo Bank, N.A. Deposit Account Number: 

Further Credit Information/Instructions: 

 

 

Borrower acknowledges that all of the information in this Agreement is correct and agrees to the terms and conditions set forth herein and in the Additional Terms and Conditions on the following page.

 

 

	
 
    	
BORROWERS:
    
	
 
    	
 
    
	
 
    	
RLJ LODGING TRUST, L.P.,
    
	
 
    	
a Delaware limited partnership
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
RLJ Lodging Trust,
    
	
 
    	
 
    	
a Maryland real estate investment trust,
    
	
 
    	
 
    	
its sole general partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
   Name:  Thomas J. Baltimore, Jr.
    
	
 
    	
 
    	
   Title:   President and CEO
    

 

 

Additional Terms and Conditions to the Disbursement Instruction Agreement

 

Definitions.  The following capitalized terms shall have the meanings set forth below:

 

“Authorized Representative” means any or all of the Closing Disbursement Authorizers, Subsequent Disbursement Authorizers and Restricted Account Disbursement Authorizers, as applicable.

“Receiving Bank” means the financial institution where a Receiving Party maintains its account.

“Receiving Party” means the ultimate recipient of funds pursuant to a Disbursement Request.

“Restricted Account” means an account at Wells Fargo Bank, N.A. associated with the Loan to which Borrower’s access is restricted.

 

Capitalized terms used in these Additional Terms and Conditions to Disbursement Instruction Agreement and not otherwise defined herein shall have the meanings given to such terms in the body of the Agreement.

 

Disbursement Requests. Lender must receive Disbursement Requests in writing.  Verbal requests are not accepted.  Disbursement Requests will only be accepted from the applicable Authorized Representatives designated in the Disbursement Instruction Agreement. Disbursement Requests will be processed subject to satisfactory completion of Lender’s customer verification procedures. Lender is only responsible for making a good faith effort to execute each Disbursement Request and may use agents of its choice to execute Disbursement Requests.  Funds disbursed pursuant to a Disbursement Request may be transmitted directly to the Receiving Bank, or indirectly to the Receiving Bank through another bank, government agency, or other third party that Lender considers to be reasonable.  Lender will, in its sole discretion, determine the funds transfer system and the means by which each Disbursement will be made.  Lender may delay or refuse to accept a Disbursement Request if the Disbursement would: (i) violate the terms of this Agreement; (ii) require use of a bank unacceptable to Lender or prohibited by government authority; (iii) cause Lender to violate any Federal Reserve or other regulatory risk control program or guideline; or (iv) otherwise cause Lender to violate any applicable law or regulation.

 

Limitation of Liability. Lender shall not be liable to Borrower or any other parties for: (i) errors, acts or failures to act of others, including other entities, banks, communications carriers or clearinghouses, through which Borrower’s requested Disbursements may be made or information received or transmitted, and no such entity shall be deemed an agent of Lender (other than as a result of Lender’s own gross negligence or willful misconduct, as determined by a court of competent jurisdiction in a final, non-appealable judgment); (ii) any loss, liability or delay caused by fires, earthquakes, wars, civil disturbances, power surges or failures, acts of government, labor disputes, failures in communications networks, legal constraints or other events beyond Lender’s control; or (iii) any special, consequential, indirect or punitive damages, whether or not (A) any claim for these damages is based on tort or contract or (B) Lender or Borrower knew or should have known the likelihood of these damages in any situation.  Lender makes no representations or warranties other than those expressly made in this Agreement.  IN NO EVENT WILL LENDER BE LIABLE FOR DAMAGES ARISING DIRECTLY OR INDIRECTLY IF A DISBURSEMENT REQUEST IS EXECUTED BY LENDER IN GOOD FAITH AND IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT.

 

Reliance on Information Provided. Lender is authorized to rely on the information provided by Borrower or any Authorized Representative in or in accordance with this Agreement when executing a Disbursement Request until Lender has received a new Agreement signed by Borrower.  Borrower agrees to be bound by any Disbursement Request: (i) authorized or transmitted by Borrower; or (ii) made in Borrower’s name and accepted by Lender in good faith and in compliance with this Agreement, even if not properly authorized by Borrower.  Lender may rely solely (i) on the account number of the Receiving Party, rather than the Receiving Party’s name, and (ii) on the bank routing number of the Receiving Bank, rather than the Receiving Bank’s name, in executing a Disbursement Request.  Lender is not obligated or required in any way to take any actions to detect errors in information provided by Borrower or an Authorized Representative.  If Lender takes any actions in an attempt to detect errors in the transmission or content of transfers or requests or takes any actions in an attempt to detect unauthorized Disbursement Requests, Borrower agrees that, no matter how many times Lender takes these actions, Lender will not in any situation be liable for failing to take or correctly perform these actions in the future, and such actions shall not become any part of the Disbursement procedures authorized herein, in the Loan Documents, or in any agreement between Lender and Borrower.

 

International Disbursements. A Disbursement Request expressed in US Dollars will be sent in US Dollars, even if the Receiving Party or Receiving Bank is located outside the United States. Lender will not execute Disbursement Requests expressed in foreign currency unless permitted by the Loan Agreement.

 

Errors. Borrower agrees to notify Lender of any errors in the Disbursement of any funds or of any unauthorized or improperly authorized Disbursement Requests within fourteen (14) days after Lender’s confirmation to Borrower of such Disbursement. If Lender is notified that it did not disburse the full amount requested in a Disbursement Request, Lender’s sole liability will be to promptly disburse the amount of the stated deficiency. If Lender disburses an amount in excess of the amount requested in a Disbursement Request, Lender will only be liable for such excess amount to the extent that Borrower does not receive the benefit of such amount.

 

Finality of Disbursement Requests. Disbursement Requests will be final and will not be subject to stop payment or recall; provided that Lender may, at Borrower’s request, make an effort to effect a stop payment or recall but will incur no liability whatsoever for its failure or inability to do so.

 

 

CLOSING EXHIBIT

WIRE INSTRUCTIONS

 

All wire instructions must contain the following information:

 

·                  Transfer/Deposit Funds to (Receiving Party Account Name)

·                  Receiving Party Deposit Account Number

·                  Receiving Bank Name, City and State

·                  Receiving Bank Routing (ABA) Number

·                  Further identifying information, if applicable (title escrow number, borrower name, loan number, etc.)

 

 

SUBSEQUENT DISBURSEMENT EXHIBIT

WIRE INSTRUCTIONS

 

All wire instructions must contain the following information:

 

·                  Transfer/Deposit Funds to (Receiving Party Account Name)

·                  Receiving Party Deposit Account Number

·                  Receiving Bank Name, City and State

·                  Receiving Bank Routing (ABA) Number

·                  Further identifying information, if applicable (title escrow number, borrower name, loan number, etc.)

 

 

RESTRICTED ACCOUNT DISBURSEMENT EXHIBIT

WIRE INSTRUCTIONS

 

All wire instructions must contain the following information:

 

·                  Transfer/Deposit Funds to (Receiving Party Account Name)

·                  Receiving Party Deposit Account Number

·                  Receiving Bank Name, City and State

·                  Receiving Bank Routing (ABA) Number

·                  Further identifying information, if applicable (title escrow number, borrower name, loan number, etc.)

 

 

SCHEDULE I
  LENDERS AND COMMITMENTS

 

	
Revolving Credit Lenders
    	
 
    	
Revolving Credit Commitment
    	
 
    
	
Wells Fargo Bank, National Association
    	
 
    	
$
    	
12,500,000
    	
 
    
	
Bank of America, N.A
    	
 
    	
$
    	
47,500,000
    	
 
    
	
PNC Bank, National Association
    	
 
    	
$
    	
30,000,000
    	
 
    
	
U.S. Bank National Association
    	
 
    	
$
    	
22,500,000
    	
 
    
	
Compass Bank, an Alabama banking corporation
    	
 
    	
$
    	
22,500,000
    	
 
    
	
Deutsche Bank Trust Company Americas
    	
 
    	
$
    	
22,500,000
    	
 
    
	
Sumitomo Mitsui Banking Corporation
    	
 
    	
$
    	
17,500,000
    	
 
    
	
Royal Bank of Canada
    	
 
    	
$
    	
17,500,000
    	
 
    
	
Barclays Bank PLC
    	
 
    	
$
    	
25,000,000
    	
 
    
	
TD Bank, N.A.
    	
 
    	
$
    	
12,500,000
    	
 
    
	
Regions Bank
    	
 
    	
$
    	
22,500,000
    	
 
    
	
Branch Banking and Trust Company
    	
 
    	
$
    	
10,000,000
    	
 
    
	
The Bank of Nova Scotia
    	
 
    	
$
    	
12,500,000
    	
 
    
	
KeyBank National Association
    	
 
    	
$
    	
12,500,000
    	
 
    
	
Capital One, N.A.
    	
 
    	
$
    	
5,000,000
    	
 
    
	
Raymond James Bank, N.A.
    	
 
    	
$
    	
7,500,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total Revolving Credit Commitments
    	
 
    	
$
    	
300,000,000
    	
 
    

 

	
Term Loan Lenders
    	
 
    	
Term Loan Commitment
    	
 
    
	
Wells Fargo Bank, National Association
    	
 
    	
$
    	
22,500,000
    	
 
    
	
Bank of America, N.A
    	
 
    	
$
    	
67,500,000
    	
 
    
	
PNC Bank, National Association
    	
 
    	
$
    	
30,000,000
    	
 
    
	
U.S. Bank National Association
    	
 
    	
$
    	
55,000,000
    	
 
    
	
Compass Bank, an Alabama banking corporation
    	
 
    	
$
    	
37,500,000
    	
 
    
	
Deutsche Bank Trust Company Americas
    	
 
    	
$
    	
22,500,000
    	
 
    
	
Sumitomo Mitsui Banking Corporation
    	
 
    	
$
    	
25,000,000
    	
 
    
	
Royal Bank of Canada
    	
 
    	
$
    	
22,500,000
    	
 
    
	
Barclays Bank PLC
    	
 
    	
$
    	
10,000,000
    	
 
    
	
TD Bank, N.A.
    	
 
    	
$
    	
22,500,000
    	
 
    
	
Regions Bank
    	
 
    	
$
    	
10,000,000
    	
 
    
	
Branch Banking and Trust Company
    	
 
    	
$
    	
20,000,000
    	
 
    
	
The Bank of Nova Scotia
    	
 
    	
$
    	
17,500,000
    	
 
    
	
KeyBank National Association
    	
 
    	
$
    	
12,500,000
    	
 
    
	
Capital One, N.A.
    	
 
    	
$
    	
15,000,000
    	
 
    
	
Raymond James Bank, N.A.
    	
 
    	
$
    	
10,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total Term Loan Commitments
    	
 
    	
$
    	
400,000,000

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