Document:

EXHIBIT 10.1

  

  

  

  

  

  
    BERKSHIRE BANK

    SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

    FOR

    NITIN J. MHATRE

    

    

    THIS SUPPLEMENTAL
        EXECUTIVE RETIREMENT AGREEMENT FOR NITIN J. MHATRE (the “Agreement”), effective as of April 1, 2021, is hereby entered into by Berkshire Bank (the “Bank”) and Nitin J. Mhatre
      (“Executive”).

    WHEREAS, the Executive serves as
      the President and Chief Executive Officer of Berkshire Hills Bancorp, Inc. (the “Company”) and Chief Executive Officer of the Bank; and

    

    

    WHEREAS, in
      connection with the Executive’s employment, the Bank believes it is in the best interests of the Bank and the stockholders of the Company to enter into this Agreement with the Executive, who is expected to contribute significantly to the future
      success of the Bank and the Company, to incent and reward the Executive for his expected contributions and dedication to such continued success of the Bank and the Company; and

    WHEREAS, this Agreement is
      intended to be an unfunded, non-qualified deferred compensation plan that complies with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations thereunder and is also intended to be a “top hat” pension plan within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

    

    

    NOW, THEREFORE, in consideration
      of the mutual covenants herein contained, the  parties hereby agree as follows:

    

    

    ARTICLE I

    DEFINITIONS

    

    

    When used herein, the following words and phrases shall have the meanings below unless the context clearly indicates otherwise:

    

    

    
      	
              1.1

            	
              “Account” means an account to which the Bank shall credit all contributions.  The Account shall be utilized solely as a device for the
                determination and measurement of the amounts to be paid to Executive pursuant to the Agreement.  Executive’s Account shall not constitute or be treated as a trust fund of any kind.

            

    

    

    

    
      	
              1.2

            	
              “Account Balance” means the balance of Executive’s Account as of the applicable distribution date and includes all contributions made on and
                after the Effective Date.

            

    

    

    

    
      	
              1.3

            	
              “Administrator” means the Compensation Committee of the Board of Directors (“Committee”).

            

    

    
      
        

    

    
    

    

    
      	
              1.4

            	
              “Bank” means Berkshire Bank and any successor to its business and/or assets which assumes and agrees to perform the duties and obligations under
                this Agreement by operation of law or otherwise.

            

    

    

    

    
      	
              1.5

            	
              “Beneficiary” means the person or persons designated by Executive as the beneficiary to whom the deceased Executive’s benefits are payable. The
                beneficiary designation shall be made on the form attached hereto as Exhibit A and filed with the Administrator.  If no Beneficiary is so designated, then the Executive’s estate will be deemed the Beneficiary.

            

    

    

    

    
      	
              1.6

            	
              “Benefit Eligibility Date” shall be the date on which Executive is entitled to commencement of benefits under the Agreement.

            

    

    

    

    
      	
              (a)

            	
              In the event benefits become payable on account of Executive’s Separation from Service, the Benefit Eligibility Date shall be the date of the
                Executive’s Separation from Service, subject to Section 1.6(d).

            

    

    

    

    
      	
              (b)

            	
              In the event the Survivor’s Benefit becomes payable under Section 2.4 on account of Executive’s death, the Benefit Eligibility Date shall be the
                first business day of the first month following Executive’s death.

            

    

    

    

    
      	
              (c)

            	
              In the event the Account Balance becomes payable pursuant to Section 2.6 on account of Executive’s Separation from Service (other than for Cause)
                in connection with or within two (2) years following a Change in Control, the Benefit Eligibility Date shall be the date of the Executive’s Separation from Service, subject to Section 1.6(d).

            

    

    

    

    
      	
              (d)

            	
              Notwithstanding anything in this Section 1.6 to the contrary, if Executive is a “specified employee” (within the meaning of Code Section 409A and
                the regulations and other guidance issued thereunder) and the payment(s) are due to Executive’s Separation from Service (other than due to death), then the Benefit Eligibility Date shall be the first day of the seventh month following
                Executive’s Separation from Service (if later than the date otherwise specified as the Benefit Eligibility Date).

            

    

    

    

    
      	
              1.7

            	
              “Board of Directors” shall mean the Board of Directors of the Bank.

            

    

    

    

    
      	
              1.8

            	
              “Cause” shall mean termination because of: (i) Executive’s personal dishonesty, willful misconduct, breach of fiduciary duty involving personal
                profit, intentional failure to perform stated duties, willful violation of any law, rule, regulation (other than traffic violations or similar offenses), final cease and desist order or material breach of any provision of this Agreement
                which results in a material loss to the Bank, or (ii) Executive’s conviction of a crime or act involving moral turpitude or a final judgment rendered against Executive based upon actions of Executive which involve moral turpitude.  For the
                purposes of this definition, no act, or the failure to act, on Executive’s part shall be considered “willful” unless done, or omitted to be done, by Executive not in

            

    

    
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    good faith and without reasonable belief that the action or omission was in the best interests of the Bank, the Company, or their
      affiliates or shareholders, as the case may be.

    

    

    	1.9	
            “Change in Control” shall mean any of the following events: (i) a change in the ownership of Berkshire Hills Bancorp, Inc. (the “Company”) or the Bank; (ii) a change in
              the effective control of the Company or the Bank; or (iii) a change in the ownership of a substantial portion of the assets of the Company or the Bank, as described below:

          

    

    

    	

          	(a)	
            A change in ownership occurs on the date that any one person, or more than one person acting as a group (as defined in Treasury Regulations section
              1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the Bank or the Company that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Bank or
              the Company.

          

    

    

    	

          	(b)	
            A change in the effective control of the Company or Bank occurs on the date that either (A) any one person, or more than one person acting as a group (as defined in
              Treasury Regulations section 1.409A-3(i)(5)(vi)(B)) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company or the Bank possessing 30%
              or more of the total voting power of the stock of the Company or the Bank, or (B) a majority of the members of the Bank’s or the Company’s Board of Directors is replaced during any 12-month period by directors whose appointment or election is
              not endorsed by a majority of the members of the Bank’s or the Company’s Board of Directors prior to the date of the appointment or election, provided that this subsection is inapplicable where a majority shareholder of the corporation is
              another corporation.

          

    

    

    	

          	(c)	
            A change in the ownership of a substantial portion of the Bank’s or the Company’s assets occurs on the date that any one person or more than one person acting as a
              group (as defined in Treasury Regulations section 1.409A-3(i)(5)(vii)(C)) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company or the Bank
              that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the Company or the Bank.  For purposes of this Agreement, “gross fair market value” means the value of the assets
              of the Company or the Bank, or the value of the assets being disposed of, without regard to any liabilities associated with such assets.

          

    

    

    	

          	(d)	
            For all purposes hereunder, the definition of Change in Control shall be construed to be consistent with the requirements of Treasury Regulations section
              1.409A-3(i)(5), except to the extent that such regulations are superseded by subsequent guidance.

          

    

    

    
      	
              1.10

            	
              “Code” means the Internal Revenue Code of 1986, as amended.

            

    

    
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              1.11

            	
              “Disability” means, with respect to Executive, that, in the good faith determination of the Bank:

            

    

    

    

    
      	
              (a)

            	
              Executive is unable to fulfill his employment responsibilities hereunder by reason of any medically determinable physical or mental impairment
                which can be expected to result in death or last for a continuous period of not less than 12 months;

            

    

    

    

    
      	
              (b)

            	
              Executive is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or last for a
                continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Bank.

            

    

    

    

    
      	
              1.12

            	
              “Effective Date” of this Agreement shall be April 1, 2021.

            

    

    

    

    
      	
              1.13

            	
              “Executive” means Nitin J. Mhatre, who has been selected and approved by the Board of Directors to enter into the Agreement.

            

    

    

    

    
      	
              1.14

            	
              “Normal Retirement Age” means age sixty-five (65).

            

    

    

    

    
      	
              1.15

            	
              “Separation from Service” (or “Separated from Service”) means Executive’s death, retirement or other termination of employment with the Bank
                within the meaning of Code Section 409A.  No Separation from Service shall be deemed to occur due to military leave, sick leave or other bona fide leave of absence if the period of the leave does not exceed six months or, if longer, so long
                as Executive’s right to reemployment is provided by law or contract.  If the leave exceeds six months and Executive’s right to reemployment is not provided by law or by contract, then Executive shall have a Separation from Service on the
                first date immediately following such six-month period.

            

    

    

    

    Whether a Separation from Service has occurred is determined based on whether the facts and circumstances indicate that the Bank and
      Executive reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services
      Executive would perform after that date (whether as an employee or as an independent contractor) would permanently decrease to less than 50% of the average level of bona fide services performed over the immediately preceding 36 months (or the lesser period of time in which Executive performed services for the Bank).  The determination of whether Executive has had a Separation from
      Service shall be made by applying the presumptions set forth in the Treasury Regulations under Code Section 409A.

    

    

    
      	
              1.16

            	
              “Survivor’s Benefit” means the benefit payable to Executive’s Beneficiary following his death in accordance with Section 2.4.

            

    

    

    

    
      	
              1.17

            	
              “Vested Account Balance” means the portion of Executive’s Account Balance that is vested in accordance with the Vesting Schedule.

            

    

    
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              1.18

            	
              “Vesting Schedule” means the rate at which the Executive’s Account Balance becomes vested and non-forfeitable.  The Executive’s Account Balance
                shall become vested as follows:

            

    

    

    

    20% on April 1, 2022

    40% on April 1, 2023

    60% on April 1, 2024

    80% on April 1, 2025

    100% on April 1, 2026

    

    

    Notwithstanding the foregoing, the Account Balance shall immediately become 100% vested upon Executive’s death or
      Disability and upon a Separation from Service in connection with or within two years following a Change in Control.

    

    

    ARTICLE II

    BENEFITS

    

    

    	2.1	
            Account.  The Bank shall maintain an Account for Executive to which it shall
              credit all amounts allocated thereto in accordance with Section 2.2.  Executive’s Account shall be adjusted no less often than annually to reflect the credits made to the Account.  The adjustments shall be made as long any amount remains
              credited to the Account.  The amounts allocated and adjustments made shall comprise the Account at any time.

          

    	2.2	
            Annual Credits to Account.  The Bank shall credit Executive’s Account as of each April 1st, commencing on April 1, 2021 (the “Contribution
                Date”), in an amount equal to $125,000.  These annual contributions shall only be made if Executive is employed with the Bank as of the Contribution Date.  The Executive may not make any contributions under this Agreement and the
              Bank may, but is not obligated to, make discretionary contributions to Executive’s Account from time to time.  Discretionary contributions, if any, shall be credited at such times and in such amounts as determined by the Board of Directors in
              its sole discretion.  

          

    	2.3	
            Benefit on Separation from Service.  Upon Executive’s Separation from
              Service, Executive shall be entitled to the Vested Account Balance.  The benefit under this Section 2.3 shall be payable in a single lump sum on, or within five (5) business days following, the Benefit Eligibility Date specified in Section
              1.6(a).

          

    

    

    2.4 Survivor’s Benefit.

    

    

    
      	
              (a)

            	
              If Executive dies prior to a Separation from Service, Executive’s Beneficiary shall be entitled to the Account Balance, which became 100% vested
                upon the Executive's death, payable in a single lump sum on, or within five (5) business days following, the Benefit Eligibility Date specified in Section 1.6(b).

            

    

    

    

    
      	
              (b)

            	
              If Executive dies following a Separation from Service but prior to the payment of the Account Balance, Executive’s Beneficiary shall be entitled
                to the Account

            

    

    
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    Balance payable in a single lump sum on, or within five (5) business days following, the Benefit Eligibility Date specified in Section
      1.6(b).

    

    

    	2.5	
            Termination for Cause.  Notwithstanding any other provision of this Agreement
              to the contrary, if Executive is terminated for Cause, all benefits under this Agreement shall be forfeited by Executive and Executive’s participation in the Agreement shall become null and void.

          

    

    

    	2.6	
            Benefit Payable on Separation from Service in Connection With or Two Years Following a
                  Change in Control.  In the event of the Executive’s Separation from Service (other than for Cause) prior to Normal Retirement Age and in connection with or within two (2) years following a Change in Control, the Executive’s
              Account Balance shall be: (i) 100% vested, and (ii) the amount of the Executive’s Vested Account Balance shall be increased to equal the amount that the Bank would have otherwise credited Executive’s Account through the calendar year in which
              the Executive would have attained Normal Retirement Age.  For example, if a Change in Control and a Separation from Service occurs when the Executive is age sixty-three (63), the Executive’s Vested Account Balance will be increased by
              $250,000 ($125,000 times the additional two (2) years to age sixty-five (65)).  The Executive shall be paid the Account Balance on, or within five (5) business days following, the Benefit Eligibility Date specified in Section 1.6(c) in a lump
              sum.

          

    

    

    ARTICLE III

    BENEFICIARY DESIGNATION

    

    

    Executive shall make an initial designation of primary and secondary Beneficiaries upon initial participation in the Agreement by
      completion of a Beneficiary form substantially in the form attached as Exhibit A, and shall have the right to change the designation, at any subsequent time. Any Beneficiary designation shall become effective only when receipt thereof is acknowledged
      in writing by the Administrator.

    

    

    ARTICLE IV

    EXECUTIVE’S RIGHT TO ASSETS,

    ALIENABILITY AND ASSIGNMENT PROHIBITION

    

    

    At no time shall Executive be deemed to have any lien, right, title or interest in or to any specific investment or asset of the Bank.
      The rights of Executive, any Beneficiary, or any other person claiming through Executive under this Agreement, shall be solely those of an unsecured general creditor of the Bank. Executive, the Beneficiary, or any other person claiming through
      Executive, shall only have the right to receive from the Bank those payments so specified under this Agreement. Neither Executive nor any Beneficiary under this Agreement shall have any power or right to transfer, assign, anticipate, hypothecate,
      mortgage, commute, modify or otherwise encumber in advance any of the benefits payable hereunder, nor shall any of said benefits be subject to seizure for the payment of any debts, judgments, alimony or separate maintenance owed by Executive or his
      Beneficiary, nor be transferable by operation of law in the event of bankruptcy, insolvency or otherwise.

    
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    ARTICLE V

    ERISA PROVISIONS

    

    

    	5.1	
            Named Fiduciary and Administrator.  The Bank shall be the “Named Fiduciary”
              and the Committee shall be the Administrator of this Agreement. As Administrator, the Committee shall be responsible for the management, control and administration of the Agreement as established herein. The Committee may delegate to others
              certain aspects of the management and operational responsibilities of the Agreement, including the employment of advisors and the delegation of ministerial duties to qualified individuals.

          

    

    

    	5.2	
            Claims Procedure and Arbitration.  In the event that benefits under this
              Agreement are not paid to Executive (or to his Beneficiary in the case of Executive’s death) and the claimant(s) feel he or they are entitled to receive the benefits, then a written claim must be made to the Administrator within sixty (60)
              days from the date payments are refused. The Administrator shall review the written claim and, if the claim is denied, in whole or in part, it shall provide in writing, within thirty (30) days of receipt of such claim, its specific reasons
              for such denial, reference to the provisions of this Agreement upon which the denial is based, and any additional material or information necessary for such claimants to perfect the claim. The written notice by the Administrator shall further
              indicate the additional steps which must be undertaken by claimants if an additional review of the claim denial is desired.

          

    

    

    If claimants desire a second review, they shall notify the Administrator in writing within thirty (30) days of the first claim denial.
      Claimants may review this Agreement or any documents relating thereto and submit any issues and comments, in writing, they may feel appropriate. In its sole discretion, the Administrator shall then review the second claim and provide a written
      decision within thirty (30) days of receipt of such claim. This decision shall state the specific reasons for the decision and shall include reference to specific provisions of this Agreement upon which the decision is based.

    

    

    No claimant shall institute any action or proceeding in any state or federal court of law or equity or before any administrative
      tribunal or arbitrator for a claim for benefits under the Agreement until the claimant has first exhausted the provisions set forth in this Section 5.2.

    

    

    ARTICLE VI

    MISCELLANEOUS

    

    

    	6.1	
            No Effect on Employment Rights.  Nothing contained herein will confer upon
              Executive the right to be retained in the service of the Bank nor limit the right of the Bank to discharge or otherwise deal with Executive without regard to the existence of this Agreement.

          

    

    

    	6.2	
            State Law.  This Agreement is established under, and will be construed
              according to, the laws of the Commonwealth of Massachusetts, to the extent such laws are not preempted

          

    
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    by the Employee Retirement Income Security Act of 1974, as amended and valid regulations published thereunder or any other federal law.

    

    

    	6.3	
            Severability and Interpretation of Provisions.  The Bank shall have full
              power and authority to interpret, construe and administer this Agreement and the Bank’s interpretation and construction thereof and actions thereunder shall be binding and conclusive on all persons for all purposes.  No employee or
              representative of the Bank shall be liable to any person for any actions taken or omitted in connection with the interpretation and administration of this Agreement unless attributable to his own willful misconduct or lack of good faith.  In
              the event that any of the provisions of this Agreement or portion hereof are held to be inoperative or invalid by any court of competent jurisdiction, or in the event that any provision is found to violate Code Section 409A and would subject
              Executive to additional taxes and interest on the amounts deferred hereunder, or in the event that any legislation adopted by any governmental body having jurisdiction over the Bank would be retroactively applied to invalidate this Agreement
              or any provision hereof or cause the benefits under this Agreement to be taxable, then: (1) insofar as is reasonable, effect will be given to the intent manifested in the provisions held invalid or inoperative, and (2) the validity and
              enforceability of the remaining provisions will not be affected thereby.  In the event that the intent of any provision shall need to be construed in a manner to avoid taxability, this construction shall be made by the Administrator in a
              manner that would manifest to the maximum extent possible the original meaning of such provisions.

          

    

    

    	6.4	
            Incapacity of Recipient.  If a benefit is payable to a minor, to a person
              declared incompetent, or to a person incapable of handling the disposition of his property, the Bank may pay such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or
              incapable person.  The Bank may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit.  The distribution shall completely discharge the Bank for all liability with respect to
              the benefit.

          

    

    

    	6.5	
            Unclaimed Benefit.  Executive shall keep the Bank informed of his or her
              current address and the current address of his Beneficiaries. If the location of Executive is not made known to the Bank, the Bank shall delay payment of Executive’s benefit payment(s) until the location of Executive is made known to the
              Bank; however, the Bank shall only be obligated to hold the benefit payment(s) for Executive until the expiration of three (3) years. Upon expiration of the three (3) year period, the Bank may discharge its obligation by payment to
              Executive’s Beneficiary. If the location of Executive’s Beneficiary is not known to the Bank, Executive and his Beneficiary(ies) shall thereupon forfeit any rights to the balance, if any, of any benefits provided for such Executive and/or
              Beneficiary under this Agreement.

          

    

    

    	6.6	
            Limitations on Liability.   Notwithstanding any of the preceding provisions
              of the Agreement, no individual acting as an employee or agent of the Bank, or as a member of the Board of Directors shall be personally liable to Executive or any other person for any claim, loss, liability or expense incurred in connection
              with the Agreement.

          

    
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    	6.7	
            Gender.  Whenever in this Agreement words are used in the masculine or neuter
              gender, they shall be read and construed as in the masculine, feminine or neuter gender, whenever they should so apply.

          

    

    

    	6.8	
            Effect on Other Corporate Benefit Agreements.  Nothing contained in this
              Agreement shall affect the right of Executive to participate in or be covered by any qualified or nonqualified pension, profit sharing, group, bonus or other supplemental compensation or fringe benefit agreement constituting a part of the
              Bank’s existing or future compensation structure.

          

    

    

    	6.9	
            Inurement.  This Agreement shall be binding upon and shall inure to the
              benefit of the Bank, its successors and assigns, and Executive, his successors, heirs, executors, administrators, and Beneficiaries.

          

    

    

    
      	
              6.10

            	
              Headings.  Headings and
                sub-headings in this Agreement are inserted for reference andconvenience only and shall not be deemed a part of this Agreement.

            

    

    

    

    
      	
              6.11

            	
              12 U.S.C. §1828(k).  Any payments made to Executive
                pursuant to this Agreement or otherwise are subject to and conditioned upon compliance with 12 U.S.C. § 1828(k) or any regulations promulgated thereunder.

            

    

    

    

    
      	
              6.12

            	
              Payment of Employment Taxes.  Any distribution under
                this Agreement shall be reduced by the amount of any taxes required to be withheld from the distribution.

            

    

    

    

    
      	
              6.13

            	
              Successors to the Bank.  The Bank, as applicable, will
                require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Bank to assume expressly and agree to perform the duties and obligations
                under this Agreement in the same manner and to the same extent as the Bank would be required to perform it if no such succession had taken place.

            

    

    

    

    
      	
              6.14

            	
              Legal Fees.  In the event Executive retains legal
                counsel to enforce any of the terms of the Agreement, the Bank will pay his legal fees and related expenses reasonably incurred by him, but only if Executive prevails in an action seeking legal and/or equitable relief against the Bank.

            

    

    

    

    ARTICLE VII

    AMENDMENT

    

    

    	7.1	
            This Agreement may not be amended or modified, in whole or part, without the mutual written consent of Executive and the Bank.  Notwithstanding anything to the contrary
              herein, the Agreement may be amended without Executive’s consent to the extent necessary to comply with existing tax laws or changes to existing tax laws.

          

    
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    ARTICLE VIII

    EXECUTION

    

    

    	8.1	
            This Agreement sets forth the entire understanding of the Bank and Executive with respect to the transactions contemplated hereby, and any previous agreements or
              understandings between them regarding the subject matter hereof, including the Prior Agreement, are merged into and superseded by this Agreement.

          

    

    

    	8.2	
            This Agreement shall be executed in duplicate, each copy of which, when so executed and delivered, shall be an original, but both copies shall together constitute one
              and the same instrument.

          

    

    

    [signature page follows]

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

    

    

    

    

    	
            EXECUTIVE

             

             

          	 	
            BERKSHIRE BANK

          
	
              /s/ Nitin J. Mhatre

          	
            By:   

            

          	
              /s/ John B. Davies

          
	
            Nitin J. Mhatre

          	 	
            John B. Davies

          
	 	 	
            Chair, Compensation Committee

          
	 	 	 
	 	 	 
	
            March 30, 2021

          	 	
            March 30, 2021

          
	
            Date

          	 	
            Date

          

    

    

    

    

  

  11Exhibit 10.1

 

AMENDMENT NO. 5

TO THE THIRD AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

BRAEMAR HOSPITALITY LIMITED PARTNERSHIP

 

April 2, 2021

 

This Amendment No. 5
to the Third Amended and Restated Agreement of Limited Partnership of Braemar Hospitality Limited Partnership (this “Amendment”)
is made as of April 2, 2021, by Braemar OP General Partner LLC, a Delaware limited liability company, as general partner (the “General
Partner”) of Braemar Hospitality Limited Partnership, a Delaware limited partnership (the “Partnership”),
pursuant to the authority granted to the General Partner in Section 11.1(b) of the Third Amended and Restated Agreement
of Limited Partnership of Braemar Hospitality Limited Partnership, dated March 7, 2017, as amended by Amendment No. 1 thereto
dated as of April 23, 2018, Amendment No. 2 thereto dated as of November 20, 2018, Amendment No. 3 thereto dated as
of December 3, 2019 and Amendment No. 4 thereto dated as of January 24, 2020 (the “Partnership Agreement”),
for the purpose of amending the terms of the Series E Preferred Partnership Units and the Series M Preferred Partnership Units.
Capitalized terms used and not defined herein shall have the meanings set forth in the Partnership Agreement.

 

WHEREAS, the Board of Directors
(the “Board”) of Braemar Hotels & Resorts Inc. (the “Company”) adopted resolutions
on November 5, 2019 and January 22, 2020 classifying and designating (i) 28,000,000 shares of Preferred Stock (as defined
in the Articles of Amendment and Restatement of the Company (as amended and supplemented to date and as may be amended and supplemented
from time to time, the “Charter”)) as Series E Preferred Stock and (ii) 28,000,000 shares of Preferred
Stock as Series M Preferred Stock;

 

WHEREAS, the Board initially
filed Articles Supplementary to the Charter with the State Department of Assessments and Taxation of Maryland on January 23, 2020,
establishing the Series E Preferred Stock and the Series M Preferred Stock;

 

WHEREAS, the Board adopted
resolutions on February 18, 2021 and filed Articles Supplementary to the Charter with the State Department of Assessments and Taxation
of Maryland on February 18, 2021, (i) reclassifying the authorized Series E Preferred Stock and Series M Preferred
Stock as unissued shares of Preferred Stock, and (ii) establishing the Series E Preferred Stock and the Series M Preferred
Stock, each with such preferences, rights, powers, restrictions, limitations as to distributions, qualifications and terms and conditions
of redemption as described in the Series E Articles Supplementary (as defined below) and the Series M Articles Supplementary
(as defined below), respectively;

 

WHEREAS, Section 11.1(b) of
the Partnership Agreement permits the General Partner to amend the Partnership Agreement without the approval of any other Partner if
such amendment is to create, issue or reflect the creation or issuance of additional Partnership Interests;

 

WHEREAS, the General Partner
has determined that, in connection with the issuance of the Series E Preferred Stock and the Series M Preferred Stock, it is
necessary and desirable to amend the Partnership Agreement to amend the terms of the Series E Preferred Partnership Units and the
Series M Preferred Partnership Units; and

 

WHEREAS, the General Partner
desires to so amend the Partnership Agreement as of the date first set forth above.

 

    	 		 

     

    

 

NOW, THEREFORE, in consideration
of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the General
Partner hereby amends the Partnership Agreement as follows:

 

1.            Article I
is amended to revise the following defined terms:

 

“Series E Articles
Supplementary” shall mean the Articles Supplementary Establishing and Fixing the Rights and Preferences of a Series of
Preferred Stock, designating the rights and preferences of the Series E Redeemable Preferred Stock, filed as part of the Company’s
charter with the State Department of Assessments and Taxation of Maryland, on April 2, 2021, as they may be amended and supplemented
from time to time.

 

“Series M Articles
Supplementary” shall mean the Articles Supplementary Establishing and Fixing the Rights and Preferences of a Series of
Preferred Stock, designating the rights and preferences of the Series M Redeemable Preferred Stock, filed as part of the Company’s
charter with the State Department of Assessments and Taxation of Maryland, on April 2, 2021, as they may be amended and supplemented
from time to time.

 

2.            In
accordance with Section 4.3 of the Partnership Agreement, Section (c)(i) of Exhibit I to the Partnership
Agreement, which sets forth the terms and conditions of the Series E Preferred Partnership Units, is hereby deleted in its entirety
and replaced by the following:

 

(c)            Distributions.

 

(i)            Pursuant
to Section 8.1 of the Partnership Agreement but subject to the rights of holders of any Preferred Partnership Units ranking
senior to the Series E Preferred Partnership Units as to the payment of distributions, Braemar OP Limited Partner LLC, in its capacity
as the holder of the then outstanding Series E Preferred Partnership Units, shall be entitled to receive, when and as authorized
by the General Partner, from the Cash Flow, cumulative monthly preferential cash distributions in an amount per Series E Preferred
Partnership Unit at an annual rate equal to:

 

		(A)	beginning on the “Date of the Initial Closing,” 8.0% per annum of the stated value of $25.00
per Series E Preferred Partnership Unit (the “Stated Value”) (equivalent to an annual distribution rate
of $2.00 per Series E Preferred Partnership Unit);

 

		(B)	beginning on the first anniversary from the “Date of the Initial Closing,” 7.75% per annum
of the Stated Value (equivalent to an annual dividend rate of $1.9375 per share); and

 

		(C)	beginning on the second anniversary from the “Date of the Initial Closing,” 7.5% per annum
of the Stated Value (equivalent to an annual dividend rate of $1.875 per share.

 

For purposes of this section (c)(i) only,
the “Date of the Initial Closing” will mean the date of the first settlement of Series E Preferred Stock
in the Company’s offering (or the first date that any shares of Series E Preferred Stock were issued to any investor). Distributions
shall be payable monthly on the 15th day of each month (or, if such payment date is not a Business Day, the next succeeding Business Day,
with the same force and effect as if paid on such distribution payment date, and no interest or additional distributions or other sums
shall accrue on the amount so payable from such distribution payment date to such next succeeding Business Day). Distributions of Preferred
Return shall be payable in arrears to holders of record as they appear on the records of the Partnership at the close of business on the
last Business Day of each month immediately preceding the applicable distribution payment date, which dates shall be the Partnership Record
Dates for the Series E Preferred Partnership Units. Any distribution of Preferred Return payable on the Series E Preferred Partnership
Units for any distribution period (as defined below) will be computed on the basis of twelve 30-day months and a 360-day year. Except
for distributions in liquidation or redemption as provided in Sections D and E, respectively, holders of Series E Preferred
Partnership Units will not be entitled to receive any distributions in excess of full cumulative Preferred Returns accrued on the Series E
Preferred Partnership Units at the distribution rate specified in this paragraph. No interest will be paid in respect of any distribution
payment or payments on the Series E Preferred Partnership Units that may be in arrears.

 

    	 	-2-	 

     

    

 

3.            In
accordance with Section 4.3 of the Partnership Agreement, Section (c)(i) of Exhibit J to the Partnership
Agreement, which sets forth the terms and conditions of the Series M Preferred Partnership Units, is hereby deleted in its entirety
and replaced by the following:

 

(c)            Distributions.

 

(i)            Pursuant
to Section 8.1 of the Partnership Agreement but subject to the rights of holders of any Preferred Partnership Units ranking
senior to the Series M Preferred Partnership Units as to the payment of distributions, Braemar OP Limited Partner LLC, in its capacity
as the holder of the then outstanding Series M Preferred Partnership Units, shall be entitled to receive, when and as authorized
by the General Partner, from the Cash Flow, cumulative monthly preferential cash distributions in an amount per Series M Preferred
Partnership Unit equal to 8.2% per annum of the stated value of $25.00 per Series M Preferred Partnership Unit (the “Stated
Value”) (equivalent to an annual distribution rate of $2.05 per Series M Preferred Partnership Unit). Beginning one
year from the date of original issuance of each Series M Preferred Partnership Unit, and on each one year anniversary thereafter
for such Series M Preferred Partnership Unit, the dividend rate shall increase by 0.10% per annum for such Series M Preferred
Partnership Unit; provided, however, that the dividend rate for any Series M Preferred Partnership Unit shall not exceed
8.7% per annum of the Stated Value. For purposes of this section (c)(i) only, the “date of the original issuance” of
the Series M Preferred Partnership Unit shall mean the earliest date that any Series M Preferred Partnership Unit was issued
during the calendar quarter in which the Series M Preferred Partnership Unit was issued. Distributions shall be payable monthly on
the 15th day of each month (or, if such payment date is not a Business Day, the next succeeding Business Day, with the same
force and effect as if paid on such distribution payment date, and no interest or additional distributions or other sums shall accrue
on the amount so payable from such distribution payment date to such next succeeding Business Day). Distributions of Preferred Return
shall be payable in arrears to holders of record as they appear on the records of the Partnership at the close of business on the last
Business Day of each month immediately preceding the applicable distribution payment date, which dates shall be the Partnership Record
Dates for the Series M Preferred Partnership Units. Any distribution of Preferred Return payable on the Series M Preferred Partnership
Units for any distribution period (as defined below) will be computed on the basis of twelve 30-day months and a 360-day year. Except
for distributions in liquidation or redemption as provided in Sections D and E, respectively, holders of Series M Preferred
Partnership Units will not be entitled to receive any distributions in excess of full cumulative Preferred Returns accrued on the Series M
Preferred Partnership Units at the distribution rate specified in this paragraph. No interest will be paid in respect of any distribution
payment or payments on the Series M Preferred Partnership Units that may be in arrears.

 

4.            Except
as modified herein, all terms and conditions of the Partnership Agreement shall remain in full force and effect, which terms and conditions
the General Partner hereby ratifies and confirms.

 

5.            This
Amendment shall be construed and enforced in accordance with and governed by the laws of the State of Delaware, without regard to conflicts
of law.

 

6.            If
any provision of this Amendment is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability
of the remaining provisions contained herein shall not be affected thereby.

 

[The remainder of this page intentionally
left blank.]

 

    	 	-3-	 

     

    

 

IN WITNESS WHEREOF, the undersigned
has executed this Amendment as of the date first set forth above.

 

	 	Braemar OP General Partner LLC,
	 	a Delaware limited liability company, as General Partner of Braemar Hospitality Limited Partnership
	 	 
	 	By: 	/s/ Robert G. Haiman
	 	 	Name: Robert G. Haiman
	 	 	Title: Executive Vice President, General Counsel and Secretary

 

[Amendment
No. 5 to Third Amended and Restated LP Agreement of Braemar Hospitality Limited Partnership]

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