Document:

Exhibit 10.1

 

Execution Copy

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT,
dated as of May 16, 2019 (this “Agreement”), by and between MDC PARTNERS INC., a corporation existing
under the laws of Canada (the “Company”), and SETH GARDNER (the “Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the Company
wishes to employ the Executive on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE,
in consideration of the premises and other good and valuable consideration, receipt of which is acknowledged, the parties hereto
agree as follows:

 

1.             Employment

 

The Company agrees to
employ the Executive during the Term specified in Section 2, and the Executive agrees to accept such employment, upon
the terms and conditions hereinafter set forth.

 

2.             Term

 

Subject to the
provisions contained in Sections 6 and 7, the Executive’s employment by the Company shall be for a term commencing
on June 17, 2019 or such other date as the parties may mutually agree (the “Commencement Date”) and continuing
for an indefinite period thereafter unless and until either (i) the Executive gives forty-five (45) days’ prior written notice
of resignation without “Good Reason” (as defined herein) to the Company, (ii) the Executive terminates employment with
 “Good Reason” in accordance with Section 6(b) of this Agreement or (iii) the Company terminates the Executive’s
employment with or without “Cause” (as defined herein). Any notice given by the Executive under Section 2(i)
shall specify the date of termination and the fact that the notice is being delivered pursuant to Section 2(i) of this Agreement.
The Company shall have the right at any time during such forty-five (45) day notice period to relieve the Executive of all or any
portion of his offices, duties and responsibilities and to place him on a paid leave-of-absence status. The date on which the Executive
ceases to be employed by the Company, regardless of the reason therefor is referred to in this Agreement as the “Termination
Date”. The term during which the Executive’s employment shall continue is referred to as the “Term”.

 

3.             Duties
and Responsibilities

 

(a)             Title.
During the Term, the Executive shall have the position of Chief Operating Officer of the Company.

 

(b)             Duties.
The Executive shall report directly to the Company’s Chief Executive Officer (the “MDC Executive”), at
such times and in such detail as the MDC Executive shall reasonably require. The Executive shall perform such duties consistent
with his position as Chief Operating Officer, or as may be reasonably directed by the MDC Executive.

 

    	 	 	 

     

    

 

(c)             Scope
of Employment. The Executive’s employment by the Company as described herein shall be full-time and exclusive, and during
the Term, the Executive agrees that he will (i) devote the business time and attention, his reasonable best efforts, and all his
skill and ability to promote the interests of the Company; and (ii) carry out his duties in a competent manner and serve the Company
faithfully and diligently under the direction of the MDC Executive. Notwithstanding the foregoing, the Executive shall be permitted
to engage in charitable and civic activities and manage his personal passive investments, provided that such passive investments
are not in a company which transacts business with the Company or its subsidiaries or engages in business competitive with that
conducted by the Company (or, if such company does transact business with the Company, or does engage in a competitive business,
it is a publicly held corporation and the Executive’s participation is limited to owning less than 1% of its outstanding
shares) (“Passive Investments”), and further provided that such activities (individually or collectively) do
not materially interfere with the performance of his duties or responsibilities under this Agreement. In addition, the Executive
is permitted to comply with any cooperation obligations owed to a prior employer provided that such cooperation does not interfere
with the performance of his duties or responsibilities under this Agreement.

 

(d)             Office
Location. During the Term, the Executive’s services hereunder shall be performed at the offices of the Company in New
York, NY, subject to necessary travel requirements to the Company’s other offices and partner agency locations in order to
carry out his duties in connection with his position hereunder.

 

4.             Compensation

 

(a)             Base
Salary. As compensation for his services hereunder, during the Term, the Company shall pay the Executive in accordance with
its normal payroll practices, an annualized base salary of $500,000 (“Base Salary”).

 

(b)             Annual
Discretionary Bonus. During the Term, the Executive shall be eligible to receive an annual discretionary bonus in a target
amount equal to $500,000, based upon criteria determined by the MDC Executive and the Compensation Committee of the Board, which
criteria shall include the Executive’s performance, the overall financial performance of the Company and such other factors
as the MDC Executive and the Compensation Committee shall deem reasonable and appropriate (the “Annual Discretionary Bonus”).
The Annual Discretionary Bonus will be paid in accordance with the Company’s normal bonus payment procedures. The Annual
Discretionary Bonus in respect of 2019 may be pro-rated for the Term of Executive’s employment.

 

(c)             Initial
Cash Bonus Award. The Company shall pay Executive a one-time bonus in an amount equal to $100,000 (the “2020 Bonus”)
on or about January 15, 2020, subject to applicable withholding for federal, state and local taxes. Notwithstanding the foregoing,
the Company will not be obligated to pay the 2020 Bonus in the event that Executive resigns without Good Reason or is terminated
by the Company for “Cause” prior to December 31, 2019. 

 

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(d)             Grants
under LTIP Plans. Commencing in January 2020, the Executive shall be eligible to participate in the Company’s LTIP Plans
with an annual target award amount equal to $500,000, with each such award to be made on terms and conditions no more or less favorable
than those of awards made to other senior executives of the Company.

 

(e)             Restricted
Stock Inducement Grant. As soon as practicable following the Commencement Date, the Executive shall receive an award of 225,000
restricted shares of the Company’s Class A subordinate voting stock (“Class A Shares”) in accordance with
and subject to the terms and conditions of a separate restricted stock agreement to be executed and delivered by the Executive
and the Company (the “Initial Stock Grant”). The restricted shares granted as part of the Initial Stock Grant
will become vested and exercisable in three equal installments on each of the first three (3) anniversaries of the Commencement
Date (each such date, a “Vesting Date”), subject to the Executive’s continued employment with the Company
through the applicable Vesting Date.

 

(f)             SARS
Inducement Grant. As soon as practicable following the Commencement Date, the Executive shall receive an award of 225,000 stock
appreciation rights (“SARs”) in respect of the Company’s Class A Shares with an exercise price equal to
$5.00, all in accordance with and subject to the terms and conditions of a separate stock appreciation rights agreement, to be
executed and delivered by the Executive and the Company (the “SAR Agreement”). The SARs granted pursuant to
the SAR Agreement will become vested and exercisable in three equal installments on each of the first three (3) anniversaries of
the Commencement Date (each such date, a “SAR Vesting Date”), subject to the Executive’s continued employment
with the Company through the applicable SAR Vesting Date. To the extent not yet exercised, any SARs issued shall expire on the
fifth anniversary of the Commencement Date.

 

(g)             Any
unvested Class A Shares and SARs granted pursuant to this Agreement will automatically accelerate vesting upon (i) the Executive’s
death or disability, (ii) termination of the Executive’s employment without “Cause” or with “Good Reason,”
or (iii) a Change in Control (as defined below).

 

5.             Expenses;
Health Benefits

 

(a)             Expenses.
The Company agrees to pay or to reimburse the Executive for all reasonable, ordinary, necessary and documented business or entertainment
expenses incurred during the Term in the performance of his services hereunder in accordance with the policy of the Company as
from time to time in effect. The Executive, as a condition precedent to obtaining such payment or reimbursement, shall provide
to the Company any and all statements, bills or receipts evidencing the travel or out-of-pocket expenses for which the Executive
seeks payment or reimbursement, and any other information or materials, as the Company may from time to time reasonably require.

 

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(b)             Benefit
Plans. During the Term, the Executive and, to the extent eligible, his dependents, shall be eligible to participate in and
receive all benefits under any group health plans, welfare benefit plans and programs (including without limitation, disability,
group life (including accidental death and dismemberment) and business travel insurance plans and programs) provided by the Company
to its senior executives and, without duplication, its employees generally, subject, however, to the generally applicable eligibility
and other provisions of the various plans and programs in effect from time to time.

 

(c)             Vacation.
The Executive shall be entitled to four weeks of vacation in accordance with the Company’s policies, with no right of carry
over, to be taken at such times as shall not materially interfere with the Executive’s fulfillment of his duties hereunder,
and shall be entitled to as many holidays, sick days and personal days as are in accordance with the Company’s policy then
in effect generally for its employees.

 

6.             Termination
of Employment

 

(a)             Termination
for Cause. The Company, by direction of the Board of Directors or the MDC Executive, shall be entitled to terminate the Term
and to discharge the Executive for “Cause” effective upon the giving of written notice to the Executive. For
purposes of this Agreement, the term “Cause” shall mean:

 

(i)             the
Executive’s willful failure or refusal to materially perform his duties and responsibilities as set forth in Section 3
hereof (other than as a result of a Disability pursuant to Section 6(d) hereof), or abide by the reasonable directives of
the MDC Executive, in each case if such failure or refusal is not cured (if curable) within 20 days after written notice thereof
to the Executive by the Company;

 

(ii)             the
willful fraud or material dishonesty of the Executive in connection with his position or the performance of duties to the Company
(including any misappropriation of the funds or property of the Company), or the willful misconduct of the Executive in connection
with his position or the performance of his duties to the Company;

 

(iii)             the
conviction of Executive in a court of law of, or entering by the Executive of a plea of guilty or no contest to, any felony or
any crime involving material dishonesty or theft;

 

(iv) willful
failure by the Executive to cooperate as directed by the MDC Executive with a bona fide Company internal investigation or an investigation
of the Company by governmental, regulatory or law enforcement authorities, if such breach is not cured (if curable) within 20 days
after written notice thereof to the Executive by the Company; and

 

(v)             any
material breach by the Executive of Section 8(a) or (b) hereof, if such breach is not cured (if curable) within 20
days after written notice thereof to the Executive by the Company.

 

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Any notice required to be given by the
Company pursuant to this section shall specify the nature of the claimed breach and the manner in which the Company requires such
breach to be cured (if curable). In the event that the Executive is purportedly terminated for Cause and a court determines that
Cause as defined herein was not present, then such purported termination for Cause shall be deemed a termination without Cause
pursuant to Section 6(c) and the Executive’s rights and remedies will be governed by Section 7(b), in full
satisfaction and in lieu of any and all other or further remedies the Executive may have under this Agreement.

 

(b)           Termination
by the Executive for Good Reason. Provided that a Cause event has not occurred, the Executive shall be entitled to terminate
this Agreement and the Term hereunder for Good Reason (as defined below) at any time during the Term by written notice to the Company
not more than 20 days after the occurrence of the event constituting such Good Reason. For purposes of this Agreement, “Good
Reason” shall be limited to:

 

(i)             a
material diminution of the Executive’s position or authority as set forth in Section 3 hereof or a change in the reporting
structure so that the Executive reports to someone other than the MDC Executive, which breach remains uncured (if curable) for
a period of 15 days after written notice of such breach to the Company;

 

(ii)             the
Company’s material breach of the compensation and benefits provisions of Section 4 or Section 5 hereof, which
breach remains uncured (if curable) for a period of 15 days after written notice of such breach to the Company;

 

(iii)            following
a Change in Control (as defined below), the Executive not holding the position of Chief Operating Officer of the ultimate parent
entity or other controlling entity resulting from the Change in Control transaction; or

 

(iv)           relocation
of the Executive’s principal office to a location outside of New York, New York metropolitan area.

 

Any notice required to
be given by the Executive pursuant to this Section 6(b) shall specify the nature of the circumstance alleged to constitute
Good Reason and the provisions of this Agreement relied upon, and shall specify the date of termination, which shall not be less
than 30 days or more than 60 days following the date of such notice.

 

For the purposes of this
Agreement, a “Change in Control” shall be have the meaning provided in Section 2(b) of the Company’s 2016
Stock Incentive Plan.

 

(c)             Termination
without Cause. The Company, by direction of the Board or the MDC Executive, shall have the right at any time during the Term
to terminate the employment of the Executive without Cause by giving written notice to the Executive setting forth a Termination
Date.

 

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(d)             Termination
for Death or Disability. In the event of the Executive’s death, the Termination Date shall be the date of the Executive’s
death. In the event the Executive shall be unable to perform his duties hereunder by virtue of illness or physical or mental incapacity
or disability (from any cause or causes whatsoever) in substantially the manner and to the extent required hereunder prior to the
commencement of such disability and the Executive shall fail to perform such duties for periods aggregating 120 days, whether or
not continuous, in any continuous period of 360 days (such causes being herein referred to as “Disability”),
the Company shall have the right to terminate the Executive’s employment hereunder as at the end of any calendar month during
the continuance of such Disability upon at least 30 days’ prior written notice to him.

 

7.             Effect
of Termination of Employment.

 

(a)             Termination
by the Company for Cause; by Death or Disability; without Good Reason. In the event of the termination of the employment of
the Executive (1) by the Company for Cause; (2) by reason of death or Disability pursuant to Section 6(d); or (3) pursuant
to a notice of resignation without Good Reason, the Executive shall be entitled to the following payments and benefits (the “Accrued
Rights”):

 

(i)             unpaid
Base Salary through, and any unpaid reimbursable expenses outstanding as of, the Termination Date; and

 

(ii)            all
outstanding equity incentive awards (including the Initial Stock Grant and SARs) shall be treated in accordance with the governing
equity plan and underlying award agreement, except as otherwise provided in Section 4(g).

 

In the event of termination
of the employment of Executive in the circumstances described in this Section 7(a), except as expressly provided in this
section or any other accrued benefits or indemnification rights under the Company’s by-laws, the Company’s other organizational
documents, or this Agreement, the Company shall have no further liability to the Executive or the Executive’s heirs, beneficiaries
or estate for damages, compensation, benefits, severance or other amounts of whatever nature, directly or indirectly, arising out
of or otherwise related to this Agreement and the Executive’s employment or cessation of employment with the Company.

 

(b)             Termination
by the Company without Cause or by the Executive for Good Reason. In the event of termination by the Company without Cause
or resignation by the Executive for Good Reason, the Executive shall be entitled to the following payments and benefits:

 

		(i)	the Accrued Rights as provided in Section 7(a) hereof;

 

		(ii)	his Annual Discretionary Bonus with respect to the calendar year prior to the date of termination,
when otherwise payable, but only to the extent earned and approved by the MDC Executive and/or the Compensation Committee of the
Board but not already paid;

 

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		(iii)	eligibility for a pro-rata portion of his Annual Discretionary Bonus with respect to the calendar
year in which the date of termination occurs, when otherwise payable (such pro-rata amount to be equal to the product of (A) the
amount of the Annual Discretionary Bonus that would have been earned for such calendar year based on actual performance for such
year, times (B) a fraction, (x) the numerator of which shall be the number of calendar days commencing January 1 of such year and
ending on the Termination Date, and (y) the denominator of which shall equal 365; and

 

		(iv)	an amount equal to Executive’s Base Salary for a period of six (6) months (the “Severance
Amount”). The Severance Amount described in this Section 7(b)(iv), less applicable withholding of any tax amounts,
shall be paid by the Company to the Executive in a cash lump-sum not later than 60 days following the Termination Date.

 

In the event of termination of this Agreement
in the circumstances described in this Section 7(b), except as expressly provided in this section or any other accrued benefits
or indemnification rights, the Company shall have no further liability to the Executive or the Executive’s heirs, beneficiaries
or estate for damages, compensation, benefits, severance or other amounts of whatever nature, directly or indirectly, arising out
of or otherwise related to this Agreement and the Executive’s employment or cessation of employment with the Company.

 

The Executive shall
be under no duty to mitigate damages hereunder. The making of any severance payments and providing the other benefits as provided
in this Section 7(b) is conditioned upon the Executive signing and not revoking a customary separation agreement in a form
reasonably satisfactory to the Company and Executive (the “Separation Agreement”). In the event the Executive
breaches any material provisions of the Separation Agreement or the provisions of Section 8(a) or (b) of this Agreement,
in addition to any other remedies at law or in equity available to it, the Company may cease making any further payments and providing
the other benefits provided for in this Section 7(b), without affecting its rights under this Agreement or the Separation
Agreement.

 

(c)             Termination
by the Company without Cause following a Change in Control. If within one (1) year after the closing date of any “Change
in Control” transaction, the Executive’s employment is terminated by the Company without Cause or he resigns for Good
Reason, the Severance Amount shall be increased to an amount equal to Executive’s Base Salary for a period of nine (9) months.

 

8.             Non-Compete;
Employee Non-Solicitation; Protection of Confidential Information

 

(a)             Non-Compete;
Employee Non-Solicitation. The parties hereto agree that the covenants given in this Section 8 are being given incident
to the agreements and transactions described herein, and that such covenants are being given for the benefit of the Company. Accordingly,
the Executive acknowledges (i) that the business and the industry in which the Company competes is highly competitive; (ii) that
as a key executive of the Company he will participate in the servicing of current clients and/or the solicitation of prospective
clients, through which, among other things, the Executive will obtain knowledge of the “know-how” and business practices
of the Company, in which matters the Company has a substantial proprietary interest; (iii) that his employment hereunder will require
the performance of services which are special, unique, extraordinary and intellectual in character, and his position with the Company
will place him in a position of confidence and trust with the clients and employees of the Company; and (iv) that his rendering
of services to the clients of the Company necessarily will require the disclosure to the Executive of confidential information
(as defined in Section 8(b) hereof) of the Company. In the course of the Executive’s employment with the Company,
the Executive will develop a personal relationship with the clients of the Company and a knowledge of those clients’ affairs
and requirements, and the relationship of the Company with its established clientele will therefore be placed in the Executive’s
hands in confidence and trust. The Executive consequently agrees that it is a legitimate interest of the Company, and reasonable
and necessary for the protection of the confidential information, goodwill and business of the Company, which is valuable to the
Company, that the Executive make the covenants contained herein and that the Company would not have entered into this Agreement
unless the covenants set forth in this Section 8 were contained in this Agreement.

 

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Accordingly, the Executive agrees
during the Term that he is employed by the Company and for a period of six (6) months thereafter (such period being referred
to as the “Non-Compete Period”), he shall not, as an individual, employee, consultant, independent
contractor, partner, shareholder, or in association with any other person, business or enterprise, except on behalf of the
Company, solicit business on behalf of, render any services to, engage in, guaranty any obligations of, extend credit to, or
have any ownership interest in (other than Passive Investments) or other affiliation with, any business or other endeavor,
which is engaged in the same business as the Company or its subsidiaries. Notwithstanding the foregoing or anything herein to
the contrary, from and after the Termination Date, the Executive may seek and obtain employment with any person, business or
entity that is engaged in the same business as the Company or its subsidiaries so long as during the Non-Compete Period the
Executive’s employment function with any such person, business or entity is (i) as an attorney and/or (ii) of a
business operations (i.e., non-client facing or non-client servicing) role.

 

The Executive further
agrees that during the Term that he is employed by the Company and for a period of two (2) years thereafter (such period being
referred to as the “Restricted Period”), he shall not, as an individual, employee, consultant, independent contractor,
partner, shareholder, or in association with any other person, business or enterprise, except on behalf of the Company, and regardless
of the reason for his ceasing to be employed by the Company:

 

(i)             solicit
or accept from any Restricted Client business of the type performed by the Company or persuade any Restricted Client to cease to
do business or to reduce the amount of business which any such Restricted Client has customarily done or is reasonably expected
to do with the Company, whether or not the relationship between the Company and such Restricted Client was originally established
in whole or in part through the Executive’s efforts; or

 

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(ii)             employ
as an employee or retain as a consultant any person, firm or entity who is then or at any time during the preceding twelve months
was an employee of or exclusive consultant to the Company, or persuade or attempt to persuade any employee of or exclusive consultant
to the Company to leave the employ of the Company or to become employed as an employee or retained as a consultant by any person,
firm or entity other than the Company.

 

 

As used in this Section
8, the term “Company” shall include any subsidiaries of the Company and the term “Restricted Client”
shall mean, except as set forth below, (1) anyone who is a client of the Company on the Termination Date, or if the Executive’s
employment shall not have terminated, at the time of the alleged prohibited conduct (any such applicable date being called the
 “Determination Date”); (2) anyone who was a client of the Company at any time during the one-year period immediately
preceding the Determination Date; and (3) any prospective client to whom the Company had made a new business presentation (or similar
offering of services) at any time during the six-month period immediately preceding the date of termination. In addition, if the
Restricted Client is part of a group of companies which conducts business through more than one entity, division or operating unit,
whether or not separately incorporated (a “Client Group”), the term “Restricted Client” as used
herein shall only include each entity, division and operating unit of the Client Group where the same management group of the Client
Group has the decision making authority or significant influence with respect to contracting for services of the type rendered
by the Company. For purposes of this Section 8, it is further agreed that a “Restricted Client” shall be limited
solely and exclusively to those clients which the Executive played a significant and substantial role in soliciting or winning
or in rendering or providing services to on behalf of the Company or its subsidiaries. Notwithstanding anything else set forth
herein, the term “Restricted Client” shall not include any client for whom the Executive rendered any services, on
behalf of himself or any other person or entity, at any time preceding the Commencement Date, and which client of the Executive
has been disclosed in writing by the Executive to the Company prior to the date of this Agreement.

 

(b)             Confidential
Information. In the course of the Executive’s employment with the Company (and its predecessor), he will acquire and
have access to confidential or proprietary information about the Company and/or its clients, including but not limited to, trade
secrets, methods, models, passwords, access to computer files, financial information and records, computer software programs, agreements
and/or contracts between the Company and its clients, client contacts, client preferences, creative policies and ideas, advertising
campaigns, creative and media materials, graphic design materials, sales promotions and campaigns, sales presentation materials,
budgets, practices, concepts, strategies, methods of operation, financial or business projections of the Company and information
about or received from clients and other companies with which the Company does business. The foregoing shall be collectively referred
to as “confidential information”. The Executive is aware that the confidential information is not readily available
to the public and accordingly, the Executive also agrees that he will not at any time (whether during the Term or after termination
of this Agreement), disclose to anyone (other than his counsel in the course of a dispute arising from the alleged disclosure of
confidential information or as required by law) any confidential information, or utilize such confidential information for his
own benefit, or for the benefit of third parties. The Executive agrees that the foregoing restrictions shall apply whether or not
any such information is marked “confidential” and regardless of the form of the information. The term “confidential
information” does not include information which (i) is or becomes generally available to the public other than by breach
of this provision or (ii) the Executive learns from a third party who is not under an obligation of confidence to the Company or
a client of the Company. In the event that the Executive becomes legally required to disclose any confidential information, he
will provide the Company with prompt notice thereof so that the Company may seek a protective order or other appropriate remedy
and/or waive compliance with the provisions of this Section 8(b) to permit a particular disclosure. In the event that such
protective order or other remedy is not obtained, or that the Company waives compliance with the provisions of this Section
8(b) to permit a particular disclosure, the Executive will furnish only that portion of the confidential information which
he is legally required to disclose and, at the Company’s expense, will cooperate with the efforts of the Company to obtain
a protective order or other reliable assurance that confidential treatment will be accorded the confidential information. The Executive
further agrees that all memoranda, disks, files, notes, records or other documents, whether in electronic form or hard copy (collectively,
the “material”) compiled by him or made available to him during his employment with the Company (whether or
not the material constitutes or contains confidential information), and in connection with the performance of his duties hereunder,
shall be the property of the Company and shall be delivered to the Company on the termination of the Executive’s employment
with the Company or at any other time upon request. Except in connection with the Executive’s employment with the Company,
the Executive agrees that he will not make or retain copies or excerpts of the material; provided that the Executive shall be entitled
to retain his personal files.

 

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Nothing in this Agreement
shall prohibit or impede the Executive from communicating, cooperating or filing a complaint with any U.S. federal, state or local
governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”) with respect
to possible violations of any U..S. federal, state or local law or regulation, or otherwise making disclosures to any Governmental
Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation, provided that in each
case such communications and disclosures are consistent with applicable law. The Executive understands and acknowledges that an
individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade
secret that is made (x) in confidence to a federal, state, or local government official or to an attorney solely for the purpose
of reporting or investigating a suspected violation of law, or (y) in a complaint or other document filed in a lawsuit or other
proceeding, if such filing is made under seal. The Executive understands and acknowledges further that an individual who files
a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney
of the individual and use the trade secret information in the court proceeding, if the individual files any document containing
the trade secret under seal and does not disclose the trade secret, except pursuant to court order. For purposes of this Agreement,
each of the foregoing communications or disclosures is a “Protected Disclosure.” The Executive does not need
to give prior notice to (or get authorization from) the Company regarding any Protected Disclosure. Except as otherwise provided
in this section or under applicable law, notwithstanding the foregoing, under no circumstance will the Executive be authorized
to disclose any information covered by attorney-client privilege or attorney work product of the Company, or the Company’s
trade secrets, without prior written consent of the Company’s General Counsel or other officer designated by the Company.

 

(c)             Remedies.
If the Executive commits or threatens to commit a breach of any of the provisions of Sections 8(a) or (b), the Company
shall have the right to have the provisions of this Agreement specifically enforced by any court having jurisdiction without being
required to post bond or other security and without having to prove the inadequacy of the available remedies at law, it being acknowledged
and agreed that any such breach or threatened breach will cause irreparable injury to the Company and that money damages will not
provide an adequate remedy to the Company. In addition, the Company may take all such other actions and remedies available to it
under law or in equity and shall be entitled to such damages as it can show it has sustained by reason of such breach.

 

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(d)             Acknowledgements.
The parties acknowledge that (i) the type and periods of restriction imposed in the provisions of Sections 8(a) and (b) are fair
and reasonable and are reasonably required in order to protect and maintain the proprietary interests of the Company described
above, other legitimate business interests and the goodwill associated with the business of the Company; (ii) the time, scope and
other provisions of this Section 8 have been specifically negotiated by sophisticated commercial parties, represented by legal
counsel, and are given as an integral part of the transactions contemplated by this Agreement; and (iii) because of the nature
of the business engaged in by the Company and the fact that clients can be and are serviced by the Company wherever they are located,
it is impractical and unreasonable to place a geographic limitation on the agreements made by the Executive herein. The Executive
specifically acknowledges that his being restricted from soliciting and servicing Restricted Clients as contemplated by this Agreement
will not prevent him from being employed or earning a livelihood in the type of business conducted by the Company. If any of the
covenants contained in Sections 8(a) or (b), or any part thereof, is held to be unenforceable by reason of it extending
for too great a period of time or over too great a geographic area or by reason of it being too extensive in any other respect,
the parties agree (x) such covenant shall be interpreted to extend only over the maximum period of time for which it may be enforceable
and/or over the maximum geographic areas as to which it may be enforceable and/or over the maximum extent in all other respects
as to which it may be enforceable, all as determined by the court making such determination and (y) in its reduced form, such covenant
shall then be enforceable, but such reduced form of covenant shall only apply with respect to the operation of such covenant in
the particular jurisdiction in or for which such adjudication is made. Each of the covenants and agreements contained in this Section 8
(collectively, the “Protective Covenants”) is separate, distinct and severable. All rights, remedies and benefits
expressly provided for in this Agreement are cumulative and are not exclusive of any rights, remedies or benefits provided for
by law or in this Agreement, and the exercise of any remedy by a party hereto shall not be deemed an election to the exclusion
of any other remedy (any such claim by the other party being hereby waived). The existence of any claim, demand, action or cause
of action of the Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense
to the enforcement by the Company of each Protective Covenant. The unenforceability of any Protective Covenant shall not affect
the validity or enforceability of any other Protective Covenant or any other provision or provisions of this Agreement.

 

(e)             Notification
of Restrictive Covenants. Prior to accepting employment with any person, firm or entity during the Non-Compete Period and/or
the Restricted Period, as the case may be, the Executive shall notify the prospective employer in writing of his obligations pursuant
to this Section 8 and may provide a copy of the provisions of this Section 8 to any such prospective employer
(it being agreed by the Company that such notification and/or disclosure under this Section 8(e) shall not be deemed a breach
of the confidentiality provisions of this Agreement).

 

    	 	11	 

     

    

 

(f)             Tolling.
The temporal duration of the Non-Compete Period and/or the Restricted Period, as the case may be, shall not expire, and shall be
tolled, during any period in which the Executive is in violation of any of the non-compete and/or employee non-solicitation covenants
set forth herein, as the case may be, and all then applicable restrictions shall automatically be extended by the period of the
Executive’s violation of any such restrictions.

 

9.             Intellectual
Property

 

During the Term, the
Executive will disclose to the Company all ideas, inventions and business plans developed by him during such period which relate
directly or indirectly to the business of the Company, including without limitation, any design, logo, slogan, advertising campaign
or any process, operation, product or improvement which may be patentable or copyrightable. The Executive agrees that all patents,
licenses, copyrights, tradenames, trademarks, service marks, planning, marketing and/or creative policies and ideas, advertising
campaigns, promotional campaigns, media campaigns, budgets, practices, concepts, strategies, methods of operation, financial or
business projections, designs, logos, slogans and business plans developed or created by the Executive in the course of his employment
hereunder, either individually or in collaboration with others, will be deemed works for hire and the sole and absolute property
of the Company. The Executive agrees, that at the Company’s request and expense, he will take all steps necessary to secure
the rights thereto to the Company by patent, copyright or otherwise.

 

10.           Indemnification

 

Subject to Section 124
of the Canada Business Corporations Act (as amended or re-enacted from time to time and including the regulations made pursuant
thereto, the “Act”), the Company shall indemnify and hold harmless, the Executive and his heirs, executors,
administrators and other legal personal representatives (each, an “Indemnitee”), to the maximum extent permitted
by the Act, from and against (a) any liability and all costs, charges and expenses that an Indemnitee sustains or incurs in respect
of any action, suit or proceeding that is proposed, threatened or commenced against an Indemnitee for or in respect of anything
done or permitted by the Executive in respect of the execution of the duties of his office; and (b) all other costs, charges and
expenses that the Executive sustains or incurs in respect of the affairs of the Company. The Company shall also indemnify the Executive
in such other circumstances to the maximum extent as the Act permits or requires. To the extent permitted by the Act, the Company
will advance or reimburse any expenses, including reasonable attorneys’ fees, incurred by an Indemnitee in investigating
and defending any actual or threatened action, suit or proceeding for which an Indemnitee may be entitled to indemnification under
this Section 10.

 

11.           Enforceability

 

The failure of any party
at any time to require performance by the other party of any provision hereunder shall in no way affect the right of that party
thereafter to enforce the same, or to enforce any of the other provisions in this Agreement; nor shall the waiver by any party
of the breach of any provision hereof be taken or held to be a waiver of any subsequent breach of such provision or as a waiver
of the provision itself.

 

    	 	12	 

     

    

 

12.           Assignment

 

The Company and the Executive
agree that the Company shall have the right to assign this Agreement in connection with any asset assignment of all or substantially
all of the Company’s assets, stock sale, merger, consolidation or other corporate reorganization involving the Company and,
accordingly, this Agreement shall inure to the benefit of, be binding upon and may be enforced by, any and all successors and such
assigns of the Company. The Company and Executive agree that Executive’s rights and obligations under this Agreement are
personal to the Executive, and the Executive shall not have the right to assign or otherwise transfer his rights or obligations
under this Agreement, and any purported assignment or transfer shall be void and ineffective, provided that the rights of the Executive
to receive certain benefits upon death as expressly set forth under Section 7 of this Agreement shall inure to the Executive’s
estate and heirs. The rights and obligations of the Company hereunder shall be binding upon and run in favor of the successors
and assigns of the Company.

 

13.           Modification

 

This Agreement may not
be orally canceled, changed, modified or amended, and no cancellation, change, modification or amendment shall be effective or
binding, unless in writing and signed by the parties to this Agreement.

 

14.           Severability;
Survival; Notice

 

In the event any provision
or portion of this Agreement is determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions
of this Agreement shall nevertheless be binding upon the parties with the same effect as though the invalid or unenforceable part
had been severed and deleted or reformed to be enforceable. The respective rights and obligations of the parties hereunder shall
survive the termination of the Executive’s employment to the extent necessary to the intended preservation of such rights
and obligations.

 

Any notice, request,
instruction or other document to be given hereunder by any party hereto to another party shall be in writing and shall be deemed
effective (a) upon personal delivery, if delivered by hand, or (b) three days after the date of deposit in the mails, postage prepaid
if mailed by certified or registered mail, or (c) on the next business day, if sent by prepaid overnight courier service or facsimile
transmission (if electronically confirmed), and in each case, addressed as follows:

 

	 	If to the Executive:
	 	 
	 	Seth Gardner
	 	254 E. 68th St., Apt. 6A
	 	New York, NY 10065

 

    	 	13	 

     

    

 

	 	If to the Company:
	 	 
	 	c/o MDC Partners Inc.
	 	745 Fifth Avenue, 19th Floor
	 	New York, NY 10151
	 	Attention: General Counsel
	 	Fax: (212) 937-4365

 

Any party may change
the address to which notices are to be sent by giving notice of such change of address to the other party in the manner herein
provided for giving notice.

 

15.           Applicable
Law

 

This Agreement shall
be governed by, enforced under, and construed in accordance with the laws of the State of New York, without regard to the conflict
of law rules thereof.

 

16.           No
Conflict

 

Except as previously
disclosed in writing to the Company, the Executive represents and warrants that he is not subject to any agreement, instrument,
order, judgment or decree of any kind, or any other restrictive agreement of any character, which would prevent him from entering
into this Agreement or which would be breached by the Executive upon his performance of his duties pursuant to this Agreement.

 

17.           Entire
Agreement; Counterparts

 

This Agreement and the
documents referenced herein represent the entire agreement between the Company and the Executive with respect to the employment
of the Executive by the Company, and all prior term sheets, agreements, plans and arrangements relating to the employment of the
Executive by the Company are nullified and superseded hereby. This Agreement may be executed in two counterparts or by pdf.

 

18.           Withholdings

 

The Company may withhold
from any amounts payable under this Agreement such federal, state or local taxes as shall be required to be withheld pursuant to
any applicable law or regulation.

 

19.           No
Strict Construction

 

The language used in
this Agreement will be deemed to be the language chosen by the Company and the Executive to express their mutual intent, and no
rule of law or contract interpretation that provides that in the case of ambiguity or uncertainty a provision should be construed
against the draftsman will be applied against any party hereto.

 

    	 	14	 

     

    

 

20.           409A
Compliance

 

This Agreement is intended
to comply, to the extent applicable, with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)
and will be so interpreted. For purposes of this Agreement, a termination of Executive’s services on the date of termination
shall be determined in a manner consistent with the rules relating to “separation from service” within the meaning
of Section 409A of the Code and the regulations thereunder. Notwithstanding anything herein to the contrary, (i) if on the date
of termination Executive is a “specified employee” as defined in Section 409A of the Code, and the deferral of the
commencement of any payments or benefits otherwise payable hereunder as a result of such termination the Agreement is necessary
in order to prevent the imposition of any accelerated or additional tax under Section 409A of the Code, then the Company will (A)
defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits
ultimately paid or provided to Executive) until the date that is six months following the date of termination (or the earliest
date as is permitted under Section 409A of the Code), and (B) add to such payment or benefit an interest payment for the six-month
period calculated using the short-term Applicable Federal Rate (monthly compounded) as in effect on the date of termination under
Section 1274(d) of the Internal Revenue Code and (ii) if any other payments of money or other benefits due to the Executive hereunder
could cause the application of an accelerated or additional tax under Section 409A of the Code, the parties agree to restructure
the payments or benefits to comply with Section 409A of the Code in a manner which does not diminish the value of such payments
and benefits to the Executive. To the extent any reimbursements or in-kind benefits due to the Executive under this Agreement constitute
 “deferred compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid in
a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). If under this Agreement, an amount is paid in two or more installments,
each installment shall be treated as a “separate payment” within the meaning of 409A of the Code.

 

 

*                 *                 *                 *                 *

 

 

    	 	15	 

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Employment Agreement as of the day and year first above written.

 

 

	 	MDC PARTNERS INC.
	 	 
	 	 
	 	By: ______/s/___________________________
	 	Mitchell Gendel,
	 	General Counsel
	 	 
	 	 
	 	________________/s/_____________________
	 	Seth Gardner

 

 

 

 

 

 

 

 

    	 	16Exhibit 10.1

 

EXECUTION COPY

 

AMENDMENT NO. 2 TO THE

SECOND AMENDED AND RESTATED TERM LOAN AGREEMENT

 

Dated as of May 22, 2019

 

AMENDMENT NO. 2 TO
THE SECOND AMENDED AND RESTATED TERM LOAN AGREEMENT (this “Amendment”) among HIT NBL HYP SCHIL OWNER,
LLC, HIT NBL CY CBSOH OWNER, LLC, HIT NBL HH ATLGA OWNER, LLC, HIT SMT CY FLGAZ OWNER, LLC, HIT SMT BTRLA001 OWNER, LLC, HIT SMT
FIS BTRLA OWNER, LLC, HIT SMT FTWIN001 OWNER, LLC, HIT SMT MDFOR001 OWNER, LLC, HIT SMT RI FTWIN OWNER, LLC, HIT SMT SHS FLGAZ
OWNER, LLC, HIT SMT SHS BTRLA OWNER, LLC, HIT SMT TPS BTRLA OWNER, LLC, HIT SMT FIS DENCO OWNER, LLC, HIT SMT FIS BELWA OWNER,
LLC, HIT SMT FIS SPKWA OWNER, LLC, HIT SMT FTCCO001 OWNER, LLC, HIT SMT FTCCO002 OWNER, LLC, HIT SMT SHS DENCO OWNER, LLC, HIT
SMT CY GRMTN OWNER, LLC, HIT SMT CY JKSMS OWNER, LLC, HIT SMT FIS GRMTN OWNER, LLC, HIT SMT RDGMS001 OWNER, LLC, HIT SMT RI JKSMS
OWNER, LLC, HIT SMT RI GRMTN OWNER, LLC, HIT SMT RDGMS002 OWNER, LLC and HIT GA TECH HOLDING LLC, each a Delaware limited liability
company, and HIT NBL MNTCA001 OWNER, LP and HIT SMT ELPTX001 OWNER, LP, each a Delaware limited partnership (collectively, the
 “Borrowers”), HOSPITALITY INVESTORS TRUST, INC., a Maryland corporation (the “Parent Guarantor”),
HOSPITALITY INVESTORS TRUST OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (together with the Parent Guarantor, the
 “Guarantors”; and together with the Borrowers, the “Loan Parties”), CITIBANK,
N.A., as administrative agent and collateral agent (in such capacity, the “Agent”) for one or more lenders
(collectively, the “Lenders”) and the Lenders party hereto.

 

PRELIMINARY STATEMENTS:

 

(1)               
The Borrowers, the Guarantors, the Agent, and the Lenders, have entered into a Second Amended and Restated Term Loan Agreement
dated as of April 27, 2017 (as amended to date, the “Loan Agreement”). Capitalized terms not otherwise
defined in this Amendment have the same meanings as specified in the Loan Agreement.

 

(2)               
The parties to the Loan Agreement have agreed to amend the Loan Agreement on the terms and subject to the conditions hereinafter
set forth.

 

SECTION 1.           
Amendments to Loan Agreement. Upon the occurrence of the Amendment Effective Date (as defined in Section 3 below),
the Loan Agreement will be deemed amended as follows:

 

(a)               
The Loan Agreement is hereby amended by deleting Schedule I in its entirety and replacing it with the new Schedule I attached
hereto as Exhibit A.

 

(b)               
The Loan Agreement is hereby amended by deleting Schedule VII in its entirety and replacing it with the new Schedule VII
attached hereto as Exhibit B.

 

(c)               
The following definitions in Section 1.01 of the Loan Agreement are amended and restated to read in their entirety as follows:

 

(i)                 
“Base Release Price” means, with respect to each Collateral Asset, an amount equal to the Allocated
Loan Amount for such Collateral Asset multiplied by (a) until such time as the Outstanding Principal Balance has been reduced to
not more than $213,750,000 in accordance with Section 2.06, 105%, and (b) thereafter, 110%.

 

     

     

    

 

(ii)               
“Initial Maturity Date” means May 1, 2020.

 

(iii)             
“First Extended Maturity Date” means May 1, 2021.

 

(iv)             
“Loan” means the term loan made to the Borrowers by Lenders pursuant to the terms of this Agreement
in an aggregate maximum original principal amount not to exceed $285,000,000.

 

(v)               
“PIP” means the Initial PIP.

 

(vi)             
“Second Extended Maturity Date” means May 1, 2022.

 

(vii)           
“Third Extended Maturity Date” means May 1, 2023.

 

(d)               
The definition of “Additional PIP” in Section 1.01 of the Loan Agreement is deleted in its entirety.

 

(e)               
Section 2.01(a) of the Loan Agreement is hereby amended by deleting “$310,000,000” and replacing it with “$285,000,000”.

 

(f)                
Section 2.16(b)(iv) of the Loan Agreement is amended and restated in its entirety to read as follows: “[Intentionally
Omitted.]”

 

(g)               
Section 2.16(b)(v) of the Loan Agreement is amended and restated in its entirety to read as follows: “[Intentionally
Omitted.]”

 

SECTION 2.           
Representations and Warranties. Each Loan Party hereby represents and warrants as follows:

 

(a)               
Such Loan Party has taken all necessary corporate and other organizational action to authorize the execution, delivery and
performance of this Amendment.

 

(b)               
This Amendment has been duly executed and delivered by such Loan Party and constitutes such Loan Party’s legal, valid
and binding obligation, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy,
insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally
and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

 

(c)               
The execution and delivery of this Amendment does not (i) contravene any provision of the organizational documents of such
Loan Party or its general partner or managing member or (ii) violate any law, rule, regulation, order, writ, judgment, injunction,
decree, determination or award applicable to such Loan Party.

 

(d)               
The Guarantors are in compliance with the covenants contained in Section 5.04 of the Loan Agreement.

 

(e)               
The representations and warranties of the Loan Parties contained in Section 4.01 of the Loan Agreement are true and correct
in all material respects on and as of such date (except to the extent that such representations and warranties relate solely to
an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on
and as of such earlier date), except to the extent modified by the actions of any Borrower or changes in facts and circumstances
that in each case would not constitute a Default or Event of Default (each as defined in the Loan Agreement) (and the parties agree
that, in connection with the remaking of any such representations and warranties, any such representations and warranties that
are qualified to knowledge shall continue to be qualified to knowledge in the same manner when so remade).

 

     

     

    

 

(f)                
The Borrowers are in compliance in all material respects with any requirements of 31 C.F.R. § 1010.230 (the “Beneficial
Ownership Regulation”) applicable to the Borrowers. As of the Amendment Effective Date, the information included
in any Beneficial Ownership Certification delivered by the Borrower is true and correct in all material respects.

 

SECTION 3.           
Reallocation of Lender Pro Rata Shares; No Novation. On the Amendment Effective Date, the Advances currently outstanding
shall be deemed to have been simultaneously reallocated among the Lenders as follows:

 

(a)               
On the Amendment Effective Date, each Lender that will have a greater Pro Rata Share (as defined in the Loan Agreement)
of the Loan upon the Amendment Effective Date than its Pro Rata Share of the Loan immediately prior to the Amendment Effective
Date (each, a “Facility Purchasing Lender”), without executing an Assignment and Acceptance, shall be
deemed to have purchased assignments pro rata from each Lender that will have a smaller Pro Rata Share of the Loan upon the Amendment
Effective Date than its Pro Rata Share of the Loan immediately prior to the Amendment Effective Date (each, a “Facility
Selling Lender”) in all such Facility Selling Lender’s rights and obligations under this Amendment, the Loan
Agreement and the other Loan Documents as a Lender (collectively, the “Facility Assigned Rights and Obligations”)
so that, after giving effect to such assignments, each Lender shall have its respective Commitment as set forth in Exhibit A
hereto and a corresponding Pro Rata Share of all Advances then outstanding in respect of the Loan. Each such purchase hereunder
shall be at par for a purchase price equal to the principal amount of the applicable Advances and without recourse, representation
or warranty, except that each Facility Selling Lender shall be deemed to represent and warrant to each Facility Purchasing Lender
that the Facility Assigned Rights and Obligations of such Facility Selling Lender are not subject to any Liens created by that
Facility Selling Lender. For the avoidance of doubt, in no event shall the aggregate amount of each Lender’s Advances outstanding
at any time exceed its Commitment as set forth in Exhibit A hereto.

 

(b)               
The Agent shall calculate the net amount to be paid or received by each Lender in connection with the assignments effected
hereunder on the Amendment Effective Date. Each Lender required to make a payment pursuant to this Section shall make the net amount
of its required payment available to the Agent, in same day funds, at the office of the Agent not later than 12:00 P.M. (New York
time) on the Amendment Effective Date. The Agent shall distribute on the Amendment Effective Date the proceeds of such amounts
to the Lenders entitled to receive payments pursuant to this Section, pro rata in proportion to the amount each such Lender is
entitled to receive at the primary address set forth in Exhibit A hereto or at such other address as such Lender may request
in writing to the Agent.

 

(c)               
Nothing in this Amendment shall be construed as a discharge, extinguishment or novation of the Obligations of the Loan Parties
outstanding under the Loan Agreement or any instruments securing the same, which Obligations shall remain outstanding under the
Loan Agreement as amended hereby after the date hereof as “Advances” except as expressly modified hereby or by instruments
executed concurrently with this Amendment.

 

SECTION 4.           
Conditions of Effectiveness. This Amendment shall become effective as of the dated first reference above (the “Amendment
Effective Date”), only if each of the following conditions precedent shall have been satisfied:

 

(a)               
The Agent shall have received on or before the Amendment Effective Date the following, each dated such day (unless otherwise
specified), in form and substance satisfactory to the Agent (unless otherwise specified) and in sufficient copies for each Lender:

 

     

     

    

 

(i)        
The Agent shall have received counterparts of this Amendment, amendments to Mortgages (and, for avoidance of doubt, each
Lender hereby consents to such Mortgage modifications), guarantees and other agreements executed by each Loan Party and in form
reasonably satisfactory to the Agent, each Lender (other than any departing Lender) and the Loan Parties;

 

(ii)      
The Agent shall have received replacement Notes executed by the Borrowers, payable to each Lender, in a principal amount
equal to such Lender’s Commitment as of the Amendment Effective Date;

 

(iii)    
The Agent shall have received a counterpart of the Consent attached hereto signed by each Guarantor;

 

(iv)    
The Agent shall have received the Flood Insurance Documents (as defined in the Loan Agreement); and

 

(v)      
The Agent shall have received: (A) certified copies of the resolutions of the Board of Directors of the Parent Guarantor
on its behalf and on behalf of each Loan Party for which it is the ultimate signatory approving the transactions contemplated by
this Amendment to which it or such Loan Party is or is to be a party and (B) an officer’s certificate of each Loan Party
(or Responsible Officer of the general partner or managing member of any Loan Party) and of each general partner or managing member
(if any) of each Loan Party certifying the names and true signatures of the officers of such Loan Party, or of the general partner
or managing member of such Loan Party, authorized to sign this Amendment, amendments to Mortgages, guarantees and other agreements
executed in connection with the transactions contemplated by this Amendment.

 

(b)               
The Outstanding Principal Balance provided under the Loan Agreement shall have been paid down to an amount not greater than
$285,000,000;

 

(c)               
The Loan Parties shall have (i) satisfied each Lender’s “know your customer” and anti-money-laundering
rules and regulations, including the Patriot Act, and (ii) provided to each Lender the documentation and other information so requested
in connection with the same;

 

(d)               
The Agent shall have received a certification of beneficial ownership for each Borrower as required by the Beneficial Ownership
Regulation;

 

(e)               
The Borrowers shall have paid all accrued fees of the Agent and the Lenders and all reasonable and documented out-of-pocket
expenses of the Agent (including the reasonable and documented fees and expenses of counsel to the Agent) in connection with the
Loan, this Amendment and the transactions contemplated by the Loan Documents in accordance with the terms of Section 9.04 of the
Loan Agreement; and

 

(f)                
The Initial Maturity Date (as defined in the Loan Agreement immediately prior to the Amendment Effective Date) shall have
been extended pursuant to Section 2.16(a) of the Loan Agreement and the Borrowers shall have satisfied all of the conditions precedent
thereto.

 

SECTION 5.           
Reference to and Effect on the Loan Documents. (a) On and after the effectiveness of this Amendment, each reference
in the Loan Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring
to the Loan Agreement, and each reference in each of the other Loan Documents to “the Loan Agreement”, “thereunder”,
 “thereof” or words of like import referring to the Loan Agreement, shall mean and be a reference to the Loan Agreement,
as amended and modified by this Amendment.

 

(b)               
This Amendment shall constitute a Loan Document.

 

     

     

    

 

(c)               
The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy
of any Lender or the Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

 

(d)               
This Amendment shall not extinguish the obligations for the payment of money outstanding under the Loan Agreement. Nothing
herein contained shall be construed as a substitution or novation of the obligations outstanding under the Loan Agreement, which
shall remain in full force and effect, except to any extent modified hereby or as provided in the exhibits hereto. Nothing implied
in this Amendment or in any other document contemplated hereby shall be construed as a release or other discharge of any of the
Loan Parties from the Loan Documents.

 

SECTION 6.           
Ratification. The Loan Agreement (as amended by this Amendment) and each of the other Loan Documents are and shall
continue to be in full force and effect and are hereby in all respects ratified and confirmed. Except as expressly provided in
this Amendment, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or
remedy of any Secured Party under the Loan Agreement or any of the other Loan Documents, nor constitute a waiver of any provision
of the Loan Agreement or any of the other Loan Documents.

 

SECTION 7.           
Costs and Expenses. The Borrowers agree to pay on demand all reasonable and documented out-of-pocket costs and expenses
of the Agent in connection with the preparation, execution, delivery, administration, modification and amendment of this Amendment
and the other instruments and documents to be delivered hereunder (including, without limitation, the reasonable and documented
fees and expenses of counsel for the Agent) in accordance with the terms of Section 9.04 of the Loan Agreement.

 

SECTION 8.           
Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together
shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Amendment by facsimile
or other electronic means, including PDF, shall be as effective as delivery of a manually executed counterpart of this Amendment.

 

SECTION 9.           
Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.

 

[Balance of page intentionally left blank.]

 

 

     

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.

 

BORROWERS:

 

HIT NBL HYP SCHIL OWNER, LLC 

HIT NBL CY CBSOH OWNER, LLC

HIT NBL HH ATLGA OWNER, LLC

HIT SMT CY FLGAZ OWNER, LLC

HIT SMT BTRLA001 OWNER, LLC

HIT SMT FIS BTRLA OWNER, LLC

HIT SMT FTWIN001 OWNER, LLC

HIT SMT MDFOR001 OWNER, LLC

HIT SMT RI FTWIN OWNER, LLC

HIT SMT SHS FLGAZ OWNER, LLC

HIT SMT SHS BTRLA OWNER, LLC

HIT SMT TPS BTRLA OWNER, LLC

HIT SMT FIS DENCO OWNER, LLC

HIT SMT FIS BELWA OWNER, LLC

HIT SMT FIS SPKWA OWNER, LLC

HIT SMT FTCCO001 OWNER, LLC

HIT SMT FTCCO002 OWNER, LLC

HIT SMT SHS DENCO OWNER, LLC

HIT SMT CY GRMTN OWNER, LLC

HIT SMT CY JKSMS OWNER, LLC

HIT SMT FIS GRMTN OWNER, LLC

HIT SMT RDGMS001 OWNER, LLC

HIT SMT RI JKSMS OWNER, LLC

HIT SMT RI GRMTN OWNER, LLC

HIT SMT RDGMS002 OWNER, LLC

HIT GA TECH HOLDING LLC, 

each a Delaware limited liability company

 

 

By: /s/ Jonathan P. Mehlman               

Name: Jonathan P.
Mehlman

Title: President and Chief
Executive Officer

  

    	 	Signature Page to Amendment No. 2 to the
 Second Amended and Restated Term Loan Agreement

     

    

 

HIT NBL MNTCA001 OWNER, LP, a Delaware limited
partnership

 

By: HIT NBL NTC Owner GP, LLC, a Delaware limited liability
company, its general partner

 

 

By: /s/ Jonathan P. Mehlman               

Name: Jonathan P.
Mehlman

Title: President and Chief
Executive Officer

 

 

HIT SMT ELPTX001 OWNER, LP, a Delaware limited
partnership

 

By: HIT SMT NTC Owner GP, LLC, a Delaware limited liability
company, its general partner

 

 

By: /s/ Jonathan P.
Mehlman               

Name: Jonathan P.
Mehlman

Title: President and Chief
Executive Officer

 

    	 	Signature Page to Amendment No. 2 to the
 Second Amended and Restated Term Loan Agreement

     

    

 

ADMINISTRATIVE AGENT AND COLLATERAL AGENT:

 

CITIBANK, N.A., as administrative agent and collateral
agent

 

 

By: /s/ Christopher J. Albano       

Name: Christopher J. Albano

Title: Authorized Signatory

  

    	 	Signature Page to Amendment No. 2 to the
 Second Amended and Restated Term Loan Agreement

     

    

 

APPROVED BY: 

 

CITIBANK, N.A., as a Lender

 

 

By: /s/ Christopher J. Albano       

Name: Christopher J. Albano

Title: Authorized Signatory

 

    	 	Signature Page to Amendment No. 2 to the
 Second Amended and Restated Term Loan Agreement

     

    

 

DEUTSCHE BANK AG NEW YORK BRANCH, as a Lender

 

 

By: /s/ James Rolison                     

Name: James Rolison
 Title: Managing Director

 

 

By: /s/ Murray Mackinnon            

Name: Murray Mackinnon
 Title: Director

 

    	 	Signature Page to Amendment No. 2 to the
 Second Amended and Restated Term Loan Agreement

     

    

 

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as
a Lender

 

 

By: /s/ Simon B. Burce                  

Name: Simon B. Burce

Title: Vice President

 

    	 	Signature Page to Amendment No. 2 to the
 Second Amended and Restated Term Loan Agreement

     

    

 

MORGAN STANLEY BANK, N.A.,
a national banking association, as a Lender

 

 

By: /s/ Kristin Sansone                 

Name: Kristin Sansone

Title: Authorized Signatory

 

    	 	Signature Page to Amendment No. 2 to the
 Second Amended and Restated Term Loan Agreement

     

    

 

GOLDMAN SACHS BANK USA,
as a Lender

 

 

By: /s/ David Brown                     

Name: David Brown

Title: Authorized Person

 

    	 	Signature Page to Amendment No. 2 to the
 Second Amended and Restated Term Loan Agreement

     

    

 

CTBC BANK CO., LTD., NEW YORK
BRANCH, as a Lender

 

 

By: /s/ Ralph Wu                            

	 	Name:  	Ralph Wu
	 	Title: 	Senior Vice President &
General Manager
	 	 	CTBC Bank Co., Ltd., New York Branch

 

 

    	 	Signature Page to Amendment No. 2 to the
 Second Amended and Restated Term Loan Agreement

     

    

 

COMPASS BANK, as a Lender

 

 

By: /s/ Don Byerly                          

Name: Don Byerly

Title: Executive Vice President

 

    	 	Signature Page to Amendment No. 2 to the
 Second Amended and Restated Term Loan Agreement

     

    

 

CONSENT

 

Dated as of May 22, 2019

 

Each of the undersigned,
as a Guarantor under the Second Amended and Restated Term Loan Agreement dated as of April 27, 2017, among (i) HIT NBL HYP SCHIL
OWNER, LLC, HIT NBL CY CBSOH OWNER, LLC, HIT NBL HH ATLGA OWNER, LLC, HIT SMT CY FLGAZ OWNER, LLC, HIT SMT BTRLA001 OWNER, LLC,
HIT SMT FIS BTRLA OWNER, LLC, HIT SMT FTWIN001 OWNER, LLC, HIT SMT MDFOR001 OWNER, LLC, HIT SMT RI FTWIN OWNER, LLC, HIT SMT SHS
FLGAZ OWNER, LLC, HIT SMT SHS BTRLA OWNER, LLC, HIT SMT TPS BTRLA OWNER, LLC, HIT SMT FIS DENCO OWNER, LLC, HIT SMT FIS BELWA OWNER,
LLC, HIT SMT FIS SPKWA OWNER, LLC, HIT SMT FTCCO001 OWNER, LLC, HIT SMT FTCCO002 OWNER, LLC, HIT SMT SHS DENCO OWNER, LLC, HIT
SMT CY GRMTN OWNER, LLC, HIT SMT CY JKSMS OWNER, LLC, HIT SMT FIS GRMTN OWNER, LLC, HIT SMT RDGMS001 OWNER, LLC, HIT SMT RI JKSMS
OWNER, LLC, HIT SMT RI GRMTN OWNER, LLC, HIT SMT RDGMS002 OWNER, LLC and HIT GA TECH HOLDING LLC, each a Delaware limited liability
company, and HIT NBL MNTCA001 OWNER, LP and HIT SMT ELPTX001 OWNER, LP, each a Delaware limited partnership, (ii) HOSPITALITY INVESTORS
TRUST, INC., a Maryland corporation (the “Parent Guarantor”), HOSPITALITY INVESTORS TRUST OPERATING PARTNERSHIP,
L.P., a Delaware limited partnership (together with the Parent Guarantor, the “Guarantors”), and (iii)
CITIBANK, N.A., as administrative agent and collateral agent for one or more lenders, and the other parties thereto (as amended
to date, the “Loan Agreement”), hereby consents to the Amendment No. 2 to the Second Amended and Restated
Term Loan Agreement dated as of the date hereof (the “Amendment”), and hereby confirms and agrees that
notwithstanding the effectiveness of the Amendment, the Guaranty contained in the Loan Agreement is and shall continue to be, in
full force and effect and is hereby ratified and confirmed in all respects, except that, on and after the effectiveness of the
Amendment, each reference in the Loan Documents to “Loan Agreement”, “thereunder”, “thereof”
or words of like import shall mean and be a reference to the Loan Agreement, as amended and modified by the Amendment.

 

[Balance of page intentionally left blank.]

 

 

     

     

    

 

GUARANTORS:

 

HOSPITALITY INVESTORS TRUST, INC., a Maryland
corporation

 

By: /s/ Jonathan P. Mehlman               

Name: Jonathan P. Mehlman

Title: President and Chief
Executive Officer

 

HOSPITALITY INVESTORS TRUST OPERATING PARTNERSHIP,
L.P., a Delaware limited partnership

 

		By:	HOSPITALITY INVESTORS TRUST, INC., a Maryland corporation, its general partner

 

By: /s/ Jonathan P. Mehlman               

Name: Jonathan P. Mehlman

Title: President and Chief
Executive Officer

 

    	 	Signature Page to Amendment No. 2 to the
 Second Amended and Restated Term Loan Agreement

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