Document:

Exhibit 10.2

 

Loan Number: 1008459

 

NINTH AMENDMENT TO TERM LOAN AGREEMENT

 

THIS NINTH AMENDMENT
TO TERM LOAN AGREEMENT (this “Amendment”), dated as of December 10, 2020, is made by and between RLJ LODGING
TRUST, L.P., a limited partnership formed under the laws of the State of Delaware (the “Borrower”), RLJ LODGING
TRUST, a Maryland real estate investment trust (the “Parent Guarantor”), each of the undersigned Subsidiary
Guarantors (as defined in the Amended Term Loan Agreement (as defined below)), the Lenders party hereto (the “Lenders”),
and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (the “Administrative Agent”).

 

WHEREAS, the Borrower,
the Parent Guarantor, the Administrative Agent and the financial institutions initially a signatory to the Existing Term Loan Agreement
(as defined below) together with their successors and assigns under Section 13.6 of the Existing Term Loan Agreement
have entered into that certain Term Loan Agreement dated as of November 20, 2012, as amended by the First Amendment to Term
Loan Agreement, dated as of August 27, 2013, the Second Amendment to Term Loan Agreement, dated as of June 1, 2015, the
Third Amendment to Term Loan Agreement, dated as of November 12, 2015, the Fourth Amendment to Term Loan Agreement and First
Amendment to Guaranty, dated as of April 22, 2016, the Fifth Amendment to Term Loan Agreement, dated as of August 31,
2017, the Sixth Amendment to Term Loan Agreement, dated as of January 25, 2018, the Seventh Amendment to Term Loan Agreement,
dated as of December 18, 2019, and the Eighth Amendment to Term Loan Agreement, dated as of June 24, 2020 (as the same
may be amended, restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing
Term Loan Agreement”). Capitalized terms used herein and not defined herein have the meanings provided in the Amended
Term Loan Agreement) (as defined below);

 

WHEREAS, the Borrower
and the Parent Guarantor have requested that the Administrative Agent and the Lenders amend certain terms and conditions of the
Existing Term Loan Agreement as described herein; and

 

WHEREAS, the Administrative
Agent and the Lenders party to this Amendment (which Lenders comprise the Requisite Lenders under the Existing Term Loan Agreement)
have agreed to so amend certain terms and conditions of the Existing Term Loan Agreement and to make certain agreed upon modifications
on the terms and conditions set forth below in this Amendment.

 

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

 

1.            Amendments
to Existing Term Loan Agreement. Effective as set forth in Section 2 below, the Existing Term Loan Agreement is
hereby amended as follows (the “Amended Term Loan Agreement”):

 

(a)          Section 1.1
of the Existing Term Loan Agreement is hereby amended to add or amend and restate, as applicable, each of the following defined
terms in the appropriate alphabetical order:

 

    

     

    

 

“2022
CMBS Secured Indebtedness” shall mean the securitized asset-level Secured Indebtedness of certain Subsidiaries of the
Parent, in the aggregate outstanding principal balance as of September 30, 2020, of approximately $144,500,000, maturing in
2022, and encumbering the following Properties: (i) Residence Inn Palo Alto Los Altos, located in Los Altos, CA, (ii) the
Embassy Suites Birmingham, located in Birmingham, AL, (iii) the Embassy Suites Fort Lauderdale 17th Street, located
in Fort Lauderdale, FL, (iv) the Embassy Suites Minneapolis – Airport, located in Bloomington MN, and (v) the Embassy
Suites Deerfield Beach – Resort & Spa, located in Deerfield Beach, FL.

 

“Amendment
No. 9 Effective Date” means December 10, 2020.

 

“Covenant
Relief Period” shall mean the period commencing on April 1, 2020 and ending on the earlier of (i) January 1,
2022 and (ii) the date the Parent Guarantor delivers (a) a Compliance Certificate pursuant to Section 9.3
with respect to any fiscal quarter of the Parent Guarantor ending after the Amendment No. 8 Effective Date but prior to March 31,
2022 that shows compliance with the levels of the Financial Covenants in effect for the period ending on March 31, 2022 (after
giving effect to Section 1.5 below with respect to the testing period applicable to such test date) and (b) written
notice to the Administrative Agent electing to terminate the Covenant Relief Period concurrently with the delivery of such Compliance
Certificate referenced in clause (a) above.

 

“Leverage
Relief Period” shall mean the period commencing on April 1, 2020 and ending on the earlier of (i) the earlier
of (x) April 1, 2023 and (y) the day after the last day of the fifth (5th) fiscal quarter of the Parent Guarantor
immediately following the Covenant Relief Period Termination Date, and (ii) the date the Parent Guarantor delivers (a) a
Compliance Certificate pursuant to Section 9.3 with respect to any fiscal quarter of the Parent Guarantor ending after
the Amendment No. 8 Effective Date but prior to March 31, 2023 that shows a Leverage Ratio of less than or equal to 7.00
to 1.00 (after giving effect to Section 1.5 below with respect to the testing period applicable to such test date)
and (b) written notice to the Administrative Agent electing to terminate the Leverage Relief Period concurrently with the
delivery of such Compliance Certificate referenced in clause (a) above.

 

“Leverage
Relief Period Applicable Margin” shall mean, at all times during the period commencing on the Amendment No. 9 Effective
Date and ending on the Leverage Relief Period Termination Date, (i) 1.40% for Base Rate Loans, and (ii) 2.40% for LIBOR
Loans.

 

“Qualified
Earlier Maturing Indebtedness” has the meaning given that term in Section 2.8(b)(iv)(D).

 

“Restriction
Period” shall mean the period commencing on the Amendment No. 8 Effective Date and, so long as no Default or Event
of Default is then continuing, terminating on the earlier of (i) the date that the Covenant Relief Period is terminated in
accordance with clause (ii) of the definition thereof, and (ii) the date the Parent Guarantor delivers the Compliance
Certificate with respect to the fiscal quarter of the Parent Guarantor ending March 31, 2022 in accordance with Section 9.3
of this Agreement demonstrating compliance with the levels of the Financial Covenants for the testing period ending on March 31,
2022.

 

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(b)          Section 1.5
is hereby amended by replacing the table set forth therein with the following table:

 

	Test Date	Calculation
	In respect of the earlier of (i) March 31, 2022 or (ii) the first test date following the Covenant Relief Period Termination Date	Applicable calculations/results for the one (1) fiscal quarter ending on such test date (or if such test date does not occur as of the end of a fiscal quarter, the fiscal quarter most recently ended prior to such test date) multiplied by 4.
	In respect of the earlier of (i) June 30, 2022 or (ii) the second test date following the Covenant Relief Period Termination Date	Applicable calculations/results for the two (2) fiscal quarters ending on such test date (or if such test date does not occur as of the end of a fiscal quarter, the two (2) fiscal quarters most recently ended prior to such test date) multiplied by 2.
	In respect of the earlier of (i) September 30, 2022 or (ii) the third test date following the Covenant Relief Period Termination Date	Applicable calculations/results for the three (3) fiscal quarters ending on such test date (or if such test date does not occur as of the end of a fiscal quarter, the three (3) fiscal quarters most recently ended prior to such test date) multiplied by 4/3.
	For each test date thereafter 	Applicable calculations/results for the four (4) fiscal quarters ending on such test date (or if such test date does not occur as of the end of a fiscal quarter, the four (4) fiscal quarters most recently ended prior to such test date)

 

(c)           Section 2.8(b)(iv) is
hereby amended by:

 

		(i)	Amending and restating the introductory paragraph thereof to read as follows:

 

“(iv)     Mandatory
Prepayments During Restriction Period and Covenant Relief Pledged Collateral Period. Unless otherwise consented to by the Requisite
Lenders in writing, during the Restriction Period (or during such other period as specified in clause (C) below) the
Borrower will be required to prepay the Pari Passu Debt and the Loans as set forth in this Section 2.8(b)(iv) unless
permitted to be retained by the Borrower or applied as a repayment of Qualified Earlier Maturing Indebtedness, in each case in
accordance with clause (D) below; provided that any and all such Net Proceeds shall only be payable after the
aggregate amount of Net Proceeds with respect to any category of transactions described in clauses (A) through (C) below
exceeds $5,000,000.”

 

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		(ii)	in each of clauses (A) and (B) thereof, replacing each reference to “the
Prepayment Waterfall” with reference to “clause (D) below”,

 

		(iii)	amending and restating clause (C) thereof to read as follows:

 

“(C)     Asset
Dispositions and Insurance and Condemnation Events. The Borrower shall make mandatory principal prepayments of the Pari Passu
Debt and the Loans in the manner set forth clause (D) below in amounts equal to one hundred percent (100%) of the aggregate
Net Proceeds received by the Parent Guarantor, the Borrower and their Subsidiaries during the Restriction Period (or, with respect
to clause (i)(Y) below, during the Covenant Relief Pledged Collateral Period) from (i)(X) any non-ordinary course
Asset Disposition occurring during the Restriction Period (for the avoidance of doubt, the sale of any Property (whether or not
permitted by the Loan Documents) shall be deemed to be non-ordinary course) or (Y) any Asset Disposition of a Borrowing Base
Property occurring during the Covenant Relief Pledged Collateral Period; provided that there shall be excluded from this
clause (i) any Net Proceeds (1) received from sales of personal property which do not in the aggregate with all
such sales during the Restriction Period, exceed $10,000,000, (2) received from intercompany transfers that do not result
in a reduction of the value of the assets owned by the Loan Parties and their Wholly-Owned Subsidiaries on a consolidated basis
or that constitute Permitted Investments, (3) received by any Excluded FelCor Subsidiary from an Asset Disposition, so long
as the Net Proceeds therefrom are not distributed to a Loan Party or Subsidiary (other than an Excluded FelCor Subsidiary) and
the aggregate Net Proceeds received from such Asset Dispositions, together with the aggregate Net Proceeds received pursuant to
clause (A)(iv) above, do not exceed $250,000,000 (such Net Proceeds, the “Excluded FelCor Net Proceeds”)
or (4) that are held for application in connection with an exchange or swap of Property in a transaction covered by Section 1031
of the Internal Revenue Code; provided that the Property acquired in such exchange shall become an Eligible Property and the Subsidiary
that acquires such Property shall become a Subsidiary Guarantor, or (ii) any Insurance and Condemnation Event occurring during
the Restriction Period (except to the extent the Borrower shall confirm to the Administrative Agent that the Borrower has a reasonable
expectation to reinvest such Net Proceeds from such Insurance and Condemnation Event in the restoration or rebuilding of the applicable
affected asset; provided, that any Net Proceeds of such Insurance and Condemnation Event received in excess of the costs of such
restoration or replacement shall be applied to the Pari Passu Debt and the Loans in accordance with clause D below), other than
Net Proceeds received by any Excluded FelCor Subsidiary from an Insurance and Condemnation Event, so long as the Net Proceeds therefrom
are not distributed to a Loan Party or Subsidiary (other than an Excluded FelCor Subsidiary). Such prepayments shall be made within
five (5) Business Days after the Net Proceeds Receipt Date of such Asset Disposition or Insurance and Condemnation Event,
as applicable.”

 

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		(iv)	amending and restating clause (D) thereof to read as follows:

 

“(D)     Prepayment
Waterfall.     Each prepayment under this Section 2.8(b)(iv) shall
be applied in the manner set forth in the Prepayment Waterfall; provided, however, that (I) the Borrower shall
be permitted to apply the Net Proceeds of any prepayment event under this Section 2.8(b)(iv) as a repayment of
Qualified Earlier Maturing Indebtedness in lieu of making such application pursuant to the Prepayment Waterfall and (II) to
the extent that any prepayment made in reliance on clause (I) is not applied (or permitted to be applied) to the 2022 CMBS
Secured Indebtedness, such prepayment shall be applied to the Qualified Earlier Maturing Indebtedness in direct order of maturity
(it being understood for this purpose that the amount of any scheduled debt amortization payments shall be treated as debt maturing
on the date such amortization payment is due). To extent that the Borrower does not apply such Net Proceeds to the payment of Qualified
Earlier Maturing Indebtedness in accordance with this clause (D), such unapplied Net Proceeds shall be applied to the principal
prepayment of the Pari Passu Debt and the Loans in the manner set forth in the Prepayment Waterfall. As used herein, “Qualified
Earlier Maturing Indebtedness” shall mean (i) solely in the case of Net Proceeds of an Equity Issuance or a Debt
Issuance, the 2022 CMBS Secured Indebtedness and (ii) in the case of all Net Proceeds required to be prepaid pursuant to this
Section 2.8(b)(iv), any Unsecured Indebtedness of Parent Guarantor or any of its Subsidiaries that (X) has a final
maturity date prior to May 18, 2025 or (Y) includes scheduled amortization payments that are required prior to May 18,
2025; provided that in the case of this clause (Y), such Indebtedness shall only constitute Qualified Earlier Maturing Indebtedness
to the extent of the amount of such scheduled amortization payments that are required prior to May 18, 2025.”

 

(d)          Section 10.1(a) is
hereby amended by replacing the table set forth therein with the following table:

 

	Leverage Relief Period Test Date	Ratio
	In respect of the test date occurring as of the end of the earlier of (i) the fiscal quarter of the Parent Guarantor ending on March 31, 2022 and (ii) the first fiscal quarter of the Parent Guarantor following the Covenant Relief Period Termination Date	8.50 to 1.00
	In respect of the test date occurring as of the end of the earlier of (i) the fiscal quarter of the Parent Guarantor ending on June 30, 2022 and (ii) the second fiscal quarter of the Parent Guarantor following the Covenant Relief Period Termination Date	8.50 to 1.00

 

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	Leverage Relief Period Test Date	Ratio
	In respect of the test date occurring as of the end of the earlier of (i) the fiscal quarter of the Parent Guarantor ending on September 30, 2022 and (ii) the third fiscal quarter of the Parent Guarantor following the Covenant Relief Period Termination Date	8.00 to 1.00
	In respect of the test date occurring as of the end of the earlier of (i) the fiscal quarter of the Parent Guarantor ending on December 31, 2022 and (ii) the fourth fiscal quarter of the Parent Guarantor following the Covenant Relief Period Termination Date	8.00 to 1.00
	In respect of the test date occurring as of the end of the earlier of (i) the fiscal quarter of the Parent Guarantor ending on March 31, 2023 and (ii) the fifth fiscal quarter of the Parent Guarantor following the Covenant Relief Period Termination Date	7.50 to 1.00

 

(e)           Section 10.1(d) is
hereby amended by replacing the reference to “Restriction Period” with a reference to “Leverage Relief Period”.

 

(f)           Section 10.1(f) is
hereby amended by replacing the table set forth therein with the following table:

 

	Test Date	Ratio
	In respect of any other test date prior to the fiscal quarter of the Parent Guarantor ending on March 31, 2020	2.00 to 1.00
	In respect of the fiscal quarter of the Parent Guarantor ending on March 31, 2020	1.50 to 1.00
	In respect of the test date occurring as of the end of the earlier of (i) the fiscal quarter of the Parent Guarantor ending on March 31, 2022 and (ii) the first fiscal quarter of the Parent Guarantor following the Covenant Relief Period Termination Date	1.65 to 1.00
	In respect of the test date occurring as of the end of the earlier of (i) the fiscal quarter of the Parent Guarantor ending on June 30, 2022 and (ii) the second fiscal quarter of the Parent Guarantor date following the Covenant Relief Period Termination Date	1.65 to 1.00
	In respect of the test date occurring as of the end of the earlier of (i) the fiscal quarter of the Parent Guarantor ending on September 30, 2022 and (ii) the third fiscal quarter of the Parent Guarantor following the Covenant Relief Period Termination Date	1.65 to 1.00
	In respect of the test date occurring as of the end of the earlier of (i) the fiscal quarter of the Parent Guarantor ending on December 31, 2022 and (ii) the fourth fiscal quarter of the Parent Guarantor following the Covenant Relief Period Termination Date	2.00 to 1.00
	For each of the test dates occurring as of the end of the fiscal quarter of the Parent Guarantor thereafter 	2.00 to 1.00

 

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(g)         Section 10.12(a)(viii) and
(ix) are hereby amended and restated in their entirety to read as follows:

 

“(viii) other
Borrowed Money Recourse Debt in respect of money borrowed which (A) is Unsecured Indebtedness, (B) has no scheduled
amortization or maturity prior to the 6-month anniversary of any Tranche A-2 Term Loan Maturity Date (as defined in the
Revolving Credit Agreement), and (C) does not result in a default, event of default, or the breach of any incurrence
test, under any other Indebtedness of the Parent Guarantor, the Borrower or its Subsidiaries, and provided that the Net
Proceeds of such Borrowed Money Recourse Debt incurred pursuant to this clause (viii) are, to the extent required
under Section 2.8(b)(iv), used to prepay outstanding amounts under the Loans and the Pari Passu Debt, or applied
to Qualifying Earlier Maturity Indebtedness, in each case in accordance with Section 2.8(b)(iv)(D),

 

(ix) Permitted
Refinancing Indebtedness; provided that the Net Proceeds of such Permitted Refinancing Indebtedness incurred pursuant
to this clause (ix) are, to the extent required under Section 2.8(b)(iv), used to prepay outstanding amounts
under the Loans and the Pari Passu Debt, or applied to Qualified Earlier Maturity Indebtedness, in each case in accordance
with Section 2.8(b)(iv)(D); and”

 

(h)          Section 10.12(e) is
hereby amended by adding “or as otherwise permitted under Section 2.8(b)(iv)(D) at the end of clause (ii) thereof.

 

2.            Conditions
to Effectiveness. The effectiveness of this Amendment is subject to the satisfaction or waiver of the following conditions
precedent:

 

(a)          The
Administrative Agent shall have received:

 

 (i)           counterparts of this Amendment duly executed and delivered by the Borrower and the other Loan Parties, the Administrative Agent and the Requisite Lenders;

 

 (ii)          [intentionally omitted];

 

 (iii)         the certificate or articles of incorporation or formation, articles of organization, certificate of limited partnership or other comparable organizational document (if any) of each Loan Party certified as of a date not earlier than fifteen (15) days prior to the date hereof by the Secretary of State of the state of formation of such Loan Party (except that, if any such document relating to any Loan Party delivered to the Administrative Agent pursuant to the Existing Term Loan Agreement has not been modified or amended since the Amendment No. 8 Effective Date and remains in full force and effect, a certificate of the Secretary or Assistant Secretary (or other individual performing similar functions) of such Subsidiary Guarantor so stating may be delivered in lieu of delivery of a current certified copy of such document);

 

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 (iv)         a certificate of good standing (or certificate of similar meaning) with respect to each of the Parent Guarantor and the Borrower issued as of a date not earlier than fifteen (15) days prior to the date hereof by the Secretary of State of the state of formation of each such Loan Party and certificates of qualification to transact business or other comparable certificates issued as of a recent date by each Secretary of State (and any state department of taxation, as applicable) of each state in which such Loan Party is required to be so qualified and where failure to be so qualified could reasonably be expected to have a Material Adverse Effect;

 

 (v)          a certificate of incumbency signed by the Secretary or Assistant Secretary (or other individual performing similar functions) of each Loan Party with respect to each of the officers of such Loan Party authorized to execute and deliver this Amendment;

 

 (vi)         copies certified by the Secretary or Assistant Secretary (or other individual performing similar functions) of each Loan Party of (A) the by-laws of such Loan Party, if a corporation, the operating agreement, if a limited liability company, the partnership agreement, if a limited or general partnership, or other comparable document in the case of any other form of legal entity (except that, if any such document delivered to the Administrative Agent pursuant to the Existing Term Loan Agreement has not been modified or amended since the Amendment No. 8 Effective Date and remains in full force and effect, a certificate so stating may be delivered in lieu of delivery of another copy of such document) and (B) all corporate, partnership, member or other necessary action taken by such Loan Party to authorize the execution, delivery and performance of the Loan Documents to which it is a party;

 

 (vii)        a certificate of a Responsible Officer of the Parent Guarantor or the Borrower certifying as to the conditions set forth in Section 6.2.(a), (b) and (d) of the Amended Term Loan Agreement on the date hereof and after giving effect to this Amendment and the transactions contemplated hereby;

 

 (viii)      intentionally omitted;

 

 (ix)        all other fees and other amounts due and payable on or prior to the date hereof, including reimbursement or payment of all reasonable and documented out-of-pocket expenses (including fees and reasonable and documented out-of-pocket expenses of counsel for the Administrative Agent) required to be reimbursed or paid by the Borrower in connection with this Amendment; and

 

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 (x)          a copy of a duly executed amendment to each of the Revolving Credit Agreement and the Capital One Term Loan Agreement, consistent with the modifications contemplated hereby.

 

(b)           In
the good faith and reasonable judgment of the Administrative Agent:

 

		(i)	there shall not have occurred or become known to the Administrative Agent or any of the Lenders
any event, condition, situation or status since the date of the information contained in the financial and business projections,
budgets, pro forma data and forecasts concerning the Borrower and its Subsidiaries most recently delivered to the Administrative
Agent and the Lenders prior to the date hereof that has had or could reasonably be expected to result in a Material Adverse Effect
(which determination shall exclude any event or circumstance resulting from the COVID-19 pandemic to the extent that such event
or circumstance has been disclosed in writing by the Borrower to Administrative Agent or publicly, or in the public domain);

 

		(ii)	no litigation, action, suit, investigation or other arbitral, administrative or judicial proceeding
shall be pending or threatened in writing which could reasonably be expected to (A) result in a Material Adverse Effect or
(B) restrain or enjoin, impose materially burdensome conditions on, or otherwise materially and adversely affect, the ability
of the Borrower or any other Loan Party to fulfill its obligations under this Amendment and the Loan Documents to which it is a
party;

 

		(iii)	the Borrower and the other Loan Parties shall have received all approvals, consents and waivers,
and shall have made or given all necessary filings and notices as shall be required to consummate the transactions contemplated
hereby without the occurrence of any default under, conflict with or violation of (A) any Applicable Law or (B) any material
agreement, document or instrument to which any Loan Party is a party or by which any of them or their respective properties is
bound; and

 

		(iv)	the Borrower and each other Loan Party shall have provided (i) all information requested by
the Administrative Agent and each Lender in order to comply with applicable “know your customer” and anti-money laundering
rules and regulations, including without limitation, the Patriot Act and (ii) to the extent the Borrower qualifies as
a “legal entity customer” under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation
to the Borrower.

 

The Administrative
Agent shall notify in writing the Borrower and the Lenders of the effectiveness of this Amendment, and such notice shall be conclusive
and binding.

 

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3.            Representations
and Warranties. The Borrower and the Parent Guarantor each hereby certifies that: (a)  no Default or Event of Default
exists as of the date hereof or would exist immediately, in each case, after giving effect to this Amendment; (b) the representations
and warranties made or deemed made by the Borrower or any other Loan Party in any Loan Document to which such Loan Party is a party
are true and correct in all material respects (unless any such representation and warranty is qualified by materiality, in which
event such representation and warranty is true and correct in all respects) on and as of the date hereof, except to the extent
that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties
were true and correct in all material respects (unless any such representation and warranty is qualified by materiality, in which
event such representation and warranty was true and correct in all respects) on and as of such earlier date) and except for changes
in factual circumstances permitted under the Loan Documents; (c) no consent, approval, order or authorization of, or registration
or filing with, any third party (other than any required filing with the SEC, which the Borrower agrees to file in a timely manner
or filings or recordations required in connection with the perfection of any Lien on the Collateral in favor of the Administrative
Agent) is required in connection with the execution, delivery and carrying out of this Amendment or, if required, has been obtained;
and (d) this Amendment has been duly authorized, executed and delivered so that it constitutes the legal, valid and binding
obligation of the Borrower and the Parent Guarantor, enforceable in accordance with its terms, except as the same may be limited
by bankruptcy, insolvency, and other similar laws affecting the rights of creditors generally and the availability of equitable
remedies for the enforcement of certain obligations contained herein and as may be limited by equitable principles generally. The
Borrower and the Parent Guarantor each confirms that the Obligations remain outstanding without defense, set off, counterclaim,
discount or charge of any kind as of the date of this Amendment. Except as expressly provided herein, this Amendment shall not
constitute an amendment, waiver, consent or release with respect to any provision of any Loan Document, a waiver of any default
or Event of Default under any Loan Document, or a waiver or release of any of the Lenders’ or the Administrative Agent's
rights and remedies (all of which are hereby reserved).

 

4.            Intentionally
Omitted.

 

5.            Ratification.
Without in any way establishing a course of dealing by the Administrative Agent or any Lender, the Borrower, the Parent Guarantor
and each Subsidiary Guarantor each hereby reaffirms and confirms its obligations under the Amended Term Loan Agreement, the Guaranty
(solely with respect to the Parent Guarantor and the Subsidiary Guarantors) and the other Loan Documents to which it is a party
and each and every such Loan Document executed by the undersigned in connection with the Existing Term Loan Agreement remains in
full force and effect and is hereby reaffirmed, ratified and confirmed. This Amendment is not intended to and shall not constitute
a novation. All references to the Existing Term Loan Agreement contained in the above-referenced documents shall be a reference
to the Amended Term Loan Agreement and as the same may from time to time hereafter be amended, restated, supplemented or otherwise
modified.

 

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

 

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

 

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

 

9.            Miscellaneous.
This Amendment shall constitute a Loan Document under the Amended Term Loan Agreement. This Amendment expresses the entire understanding
of the parties with respect to the transactions contemplated hereby. No prior negotiations or discussions shall limit, modify,
or otherwise affect the provisions hereof. Any determination that any provision of this Amendment or any application hereof is
invalid, illegal, or unenforceable in any respect and in any instance shall not affect the validity, legality, or enforceability
of such provision in any other instance, or the validity, legality, or enforceability of any other provisions of this Amendment.
Each of the Borrower and the Parent Guarantor represents and warrants that it has consulted with independent legal counsel of its
selection in connection herewith and is not relying on any representations or warranties of the Administrative Agent or its counsel
in entering into this Amendment.

 

10.           Litigation;
Jurisdiction; Other Matters; Waivers. The terms and provisions of Section 13.5 of the Existing Term Loan Agreement
are incorporated herein by reference, mutatis mutandis, as though fully set forth herein, and the parties hereto agree to
such terms.

 

REST OF PAGE INTENTIONALLY LEFT BLANK

 

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

 

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

 

RLJ – Ninth
Amendment to Term Loan Agreement

 

    

     

    

 

	 	SUBSIDIARY GUARANTORS:
	 	 
	 	 
	 	RLJ III – C BUCKHEAD, INC.,
	 	a Texas corporation
	 	 
	 	By:	 /s/ Leslie D. Hale
	 	 	Name: Leslie D. Hale
	 	 	Title: President and Treasurer
	 	 
	 	RLJ III – EM WEST PALM BEACH, INC.,
	 	a Texas corporation
	 	 
	 	By:	 /s/ Leslie D. Hale
	 	 	Name: Leslie D. Hale
	 	 	Title: President and Treasurer
	 	 
	 	RLJ III – MH DENVER AIRPORT, INC.,
	 	a Delaware corporation
	 	 
	 	By:	 /s/ Leslie D. Hale
	 	 	Name: Leslie D. Hale
	 	 	Title: President and Treasurer
	 	 
	 	EACH OF THE SUBSIDIARY GUARANTORS LISTED ON ANNEX I HERETO
	 	 
	 	By:	 RLJ LODGING TRUST, L.P.,
	 	a Delaware limited partnership, the direct or indirect holder of all controlling interests in such Subsidiary Guarantor
	 	 
	 	By:	 RLJ LODGING TRUST, a Maryland real estate investment
trust, its sole general partner
	 	 
	 	By:	/s/ Leslie D. Hale
	 	 	Name: Leslie D. Hale
	 	 	Title: President and Chief Executive Officer

 

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 – Ninth Amendment to Term Loan Agreement

 

    

     

    

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent and as a Lender
	 	 
	 	By:	/s/
    Mark F. Monahan
	 	 	Name: Mark F. Monahan
	 	 	Title: Senior Vice President

 

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[RLJ
 – Eighth Amendment to Term Loan Agreement]

 

    

     

    

 

	 	PNC BANK, NATIONAL ASSOCIATION,

as Syndication Agent and as a Lender
	 	 
	 	By: 	/s/ William
    R. Lynch III
	 	 	Name: William R. Lynch III
	 	 	Title: Senior Vice President

 

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[RLJ
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	 	CAPITAL ONE, N.A., as Lender
	 	 
	 	By: 	/s/ Jessica
    W. Phillips
	 	 	Name: Jessica W. Phillips
	 	 	Title: Authorized Signatory

 

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	 	REGIONS BANK, as Lender
	 	 
	 	By: 	/s/
    Ghi S. Gavin
	 	 	Name: Ghi S. Gavin
	 	 	Title: Senior Vice President

 

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	 	BBVA USA, as a Lender
	 	 
	 	By:	 /s/ Don Byerly
	 	 	Name: Don Byerly
	 	 	Title: Executive Vice President

 

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	 	RAYMOND JAMES BANK, N.A., as a Lender
	 	 
	 	By: 	/s/ Matt
    Stein
	 	 	Name: Matt Stein
	 	 	Title: Senior Vice President

 

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	 	ROYAL BANK OF CANADA, as Lender
	 	 
	 	By: 	/s/ Brian
    Gross
	 	 	Name: Brian Gross
	 	 	Title: Authorized Signatory

 

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	 	TRUIST BANK, f/k/a BRANCH BANKING AND TRUST COMPANY, as Lender
	 	 
	 	By: 	/s/ Ryan
    Almond
	 	 	Name: Ryan Almond
	 	 	Title: Director

 

RLJ
 – Ninth Amendment to Term Loan Agreement

 

    

     

    

 

 

ANNEX I

 

SUBSIDIARY GUARANTORS

 

	   	 Subsidiary GuarantorS  
	1.	RLJ C Charleston HD, LLC
	2.	RLJ C HOUSTON HUMBLE, LP
	3.	RLJ C NY Upper Eastside, LLC
	4.	RLJ C PORTLAND DT, LLC
	5.	RLJ C WAIKIKI, LLC
	6.	RLJ CABANA MIAMI BEACH, LLC
	7.	RLJ DBT KEY WEST, LLC
	8.	RLJ EM IRVINE, LP
	9.	RLJ EM Waltham, LLC
	10.	RLJ HGN Emeryville, LP
	11.	RLJ HP Fremont, LP
	12.	RLJ HY ATLANTA MIDTOWN, LLC
	13.	RLJ HyH San Diego, LP
	14.	RLJ HyH San Jose, LP
	15.	RLJ HyH San Ramon, LP
	16.	RLJ HyH Woodlands, LP
	17.	RLJ II – C HAMMOND, LLC
	18.	RLJ II – C MIDWAY, LLC
	19.	RLJ II – C SUGARLAND, LP
	20.	RLJ II – F CHERRY CREEK, LLC 
	21.	RLJ II – F HAMMOND, LLC
	22.	RLJ II – F KEY WEST, LLC
	23.	RLJ II – F MIDWAY, LLC
	24.	RLJ II – HA GARDEN CITY, LLC 
	25.	RLJ II – HA MIDWAY, LLC
	26.	RLJ II – HG MIDWAY, LLC 
	27.	RLJ II - HOLX Midway, LLC
	28.	RLJ II – INDY CAPITOL HOTELS, LLC
	29.	RLJ II – MH DENVER S, LLC
	30.	RLJ II – MH MIDWAY, LLC
	31.	RLJ II – R FISHERS, LLC 
	32.	RLJ II – R HAMMOND, LLC
	33.	RLJ II – R HOUSTON GALLERIA, LP

 

     

     

    

 

	34.	RLJ II – R LOUISVILLE DT KY, LLC 
	35.	RLJ II – R MERRILLVILLE, LLC 
	36.	RLJ II – R WARRENVILLE, LLC
	37.	RLJ II – RH BOULDER, LLC
	38.	RLJ II – RH PLANTATION, LLC 
	39.	RLJ II – S WESTMINSTER, LLC
	40.	RLJ II – SLE MIDWAY, LLC
	41.	RLJ III – DBT Metropolitan Manhattan, LP
	42.	RLJ III – EM Fort Myers, LLC
	43.	RLJ III – EM Tampa DT, LLC
	44.	RLJ III – HG New Orleans Convention Center, LLC
	45.	RLJ III – HGN Hollywood, LP
	46.	RLJ III – HGN Pittsburgh, LP
	47.	RLJ III – R National Harbor, LLC
	48.	RLJ III – St. Charles Ave Hotel, LLC
	49.	RLJ R Atlanta Midtown, LLC
	50.	RLJ R HOUSTON HUMBLE, LP
	51.	RLJ S Hillsboro, LLC
	52.	RLJ C San francisco, lp
	53.	rlj hp washington dc, llc
	54.	rlj s houston humble, lp
	55.	RLJ C HOUSTON HUMBLE GENERAL PARTNER, LLC
	56.	RLJ EM IRVINE GENERAL PARTNER, LLC
	57.	RLJ HP FREMONT GENERAL PARTNER, LLC
	58.	RLJ HYH SAN DIEGO GENERAL PARTNER, LLC
	59.	RLJ HYH SAN JOSE GENERAL PARTNER, LLC
	60.	RLJ HYH SAN RAMON GENERAL PARTNER, LLC
	61.	RLJ HYH WOODLANDS GENERAL PARTNER, LLC
	62.	RLJ II – C SUGARLAND GENERAL PARTNER, LLC
	63.	RLJ II SENIOR MEZZANINE BORROWER, LLC
	64.	RLJ II JUNIOR MEZZANINE BORROWER, LLC
	65.	RLJ II – R HOUSTON GALLERIA GENERAL PARTNER, LLC
	66.	RLJ III – C BUCKHEAD PARENT, LLC
	67.	RLJ III – EM WEST PALM BEACH PARENT, LLC
	68.	RLJ III – HGN HOLLYWOOD GENERAL PARTNER, LLC
	69.	RLJ R HOUSTON HUMBLE GENERAL PARTNER, LLC
	70.	RLJ C SAN FRANCISCO GENERAL PARTNER, LLC
	71.	RLJ S HOUSTON HUMBLE GENERAL PARTNER, LLC
	72.	RLJ III – DBT MET MEZZ BORROWER, LP
	73.	RLJ III – DBT METROPOLITAN MANHATTAN GP, LLC

 

     

     

    

 

	74.	RLJ III – DBT MET MEZZ BORROWER GP, LLC
	75.	DBT MET HOTEL VENTURE, LP
	76.	DBT MET HOTEL VENTURE GP, LLC
	77.	RLJ III – DBT MET HOTEL PARTNER, LLC
	78.	RLJ HGN EMERYVILLE GENERAL PARTNER, LLC
	79.	RLJ III – HGN PITTSBURGH GENERAL PARTNER, LLC
	80.	RLJ II – CR AUSTIN DT, LP
	81.	RLJ II – CR AUSTIN DT GENERAL PARTNER, LLC
	82.	RLJ III – HS WASHINGTON DC, LLC
	83.	RLJ R BETHESDA, LLC
	84.	RLJ II – MH LOUISVILLE DT, LLC
	85.	RLJ III – MH DENVER AIRPORT PARENT, LLC

NAI-1515162745v4Exhibit 10.1

 

Execution Version

 

NOVATION AGREEMENT

 

This NOVATION AGREEMENT (this “Agreement”),
dated as of December 8, 2020, is entered into by and among American Life & Security Corp., a Nebraska-domiciled insurance
company (“Cedent”), Seneca Incorporated Cell, LLC 2020-02 (“Seneca Cell”), an incorporated
cell of Seneca Reinsurance Company, LLC, a sponsored captive insurance company formed as a limited liability company under the
laws of the State of Vermont (“Seneca Re”), and Crestline Re SPC, an exempted segregated portfolio company incorporated
under the laws of the Cayman Islands, for and on behalf of Crestline Re SP 1, one of its segregated portfolios (“Newco”
and, together with Cedent and Seneca Cell, each a “Party” and collectively the “Parties”),
and accepted and consented to, (a) with respect to Section 2.05 only, by Seneca Re; (b) with respect to Section 2.06
only, by U.S. Bank, National Association, a national banking association, solely in its capacity as trustee under the Trust Agreement
(as defined below) (the “Trustee”); and (c) with respect to Section 2.07 only, by Crestline
Management, L.P. (the “Manager”).

 

WHEREAS, Cedent has ceded to Seneca
Cell certain annuity risks pursuant to that certain Funds Withheld Coinsurance and Modified Coinsurance Agreement dated as of July 27,
2020, and effective as of April 24, 2020 (the “Reinsurance Agreement”), pursuant to which Cedent established
the Modco Deposit and the Funds Withheld Account (each as defined in the Reinsurance Agreement) to serve as collateral to support
Seneca Cell’s obligations under the Reinsurance Agreement;

 

WHEREAS, Cedent entered into that
certain Investment Management Agreement dated as of July 27, 2020 (the “Cedent IMA”), pursuant to which
Cedent appointed the Manager to serve as investment manager with respect to the Modco Deposit and Funds Withheld Account, and Seneca
Cell acknowledged and agreed to the terms of the Cedent IMA as evidenced by its signature thereon;

 

WHEREAS, to provide additional collateral
to further support its obligations under the Reinsurance Agreement, Seneca Cell, as grantor, has entered into the Trust Agreement;

 

WHEREAS, Seneca Cell entered into
that certain Investment Management Agreement dated as of July 27, 2020 (the “Trust IMA”), pursuant to which
Seneca Cell appointed the Manager to serve as investment manager with respect to the Trust Account (as defined below); and

 

WHEREAS, subject to the completion
of the Closing (as defined below), but effective as of the Effective Time (as defined below), Seneca Cell desires to assign and
novate to Newco, and Newco desires to assume, with the consent of Cedent and Seneca Re, all of Seneca Cell’s rights and obligations
arising under the Reinsurance Agreement, the Trust Agreement and the Trust IMA and all of Seneca Cell’s rights under the
Cedent IMA, such that Newco shall replace Seneca Cell as (a) the reinsurer under the Reinsurance Agreement, (b) the grantor
under the Trust Agreement and the grantor of the Trust Account, (c) the client under the Trust IMA and (d) the consenting
party under the Cedent IMA (collectively, the “Novation”);

 

    

     

    

 

NOW, THEREFORE, in consideration
of the promises and mutual agreements contained herein, the Parties hereby agree as follows:

 

ARTICLE I.

DEFINED TERMS

 

Section 1.01         Definitions.
The following terms, as used herein, shall be assigned the following meanings:

 

		(a)	“Agreement” has the meaning set forth in the introductory paragraph.

 

		(b)	“Business Day” means any day other than a Saturday, Sunday or any other day on which banking institutions
are authorized or required by Law to close in New York, New York or Vermont.

 

		(c)	“Cedent” has the meaning set forth in the introductory paragraph.

 

		(d)	“Cedent IMA” has the meaning set forth in the Recitals.

 

		(e)	“Closing” has the meaning set forth in Section 4.02.

 

		(f)	“Deposit Amount” has the meaning set forth in Section 4.04.

 

		(g)	“Effective Time” means 12:01 a.m. Eastern Time on December 1, 2020.

 

		(h)	“Final Seneca Cell Expenses” has the meaning set forth in Section 4.04.

 

		(i)	“Funds Withheld Account” has the meaning set forth in the Recitals.

 

		(j)	“Governmental Entity” means any court, administrative body, agency or commission or other governmental authority
or instrumentality.

 

		(k)	“Investment Management Agreements” means the Cedent IMA and the Trust IMA.

 

		(l)	“Joint Instruction” means the instruction to be delivered by Cedent and Seneca Cell to the Trustee in the
form attached at Annex B hereto.

 

		(m)	“Law” means any federal, state, local or foreign law, statute, rule, ruling, decision, determination, ordinance,
regulation, opinion, judgment, order, writ, injunction or decree of any Governmental Entity.

 

		(n)	“Manager” has the meaning set forth in the introductory paragraph.

 

		(o)	“Modco Deposit” has the meaning set forth in the Recitals.

 

		(p)	“Novation” has the meaning set forth in the Recitals.

 

		(q)	“Newco” has the meaning set forth in the introductory paragraph.

 

		(r)	“Novating Agreements” means, collectively, the Reinsurance Agreement, the Trust Agreement, the Trust IMA
and the Cedent IMA.

 

    2

     

    

 

		(s)	“Party” has the meaning set forth in the introductory paragraph.

 

		(t)	“Permit” means any license, certificate of authority or other similar certificate, registration, franchise,
permit, approval or other similar authorization issued by a Governmental Entity.

 

		(u)	“Person” means an individual, corporation, partnership, joint venture, limited liability company, association,
trust, unincorporated organization, Governmental Entity or other entity.

 

		(v)	“Reinsurance Agreement” has the meaning set forth in the Recitals.

 

		(w)	“Seneca Cell” has the meaning set forth in the introductory paragraph.

 

		(x)	“Seneca Re” has the meaning set forth in the introductory paragraph.

 

		(y)	“Trust Account” means the trust account established pursuant to the Trust Agreement.

 

		(z)	“Trust Agreement” means the Trust Agreement dated as of July 23, 2020, by and among Seneca Cell, Cedent
and the Trustee.

 

		(aa)	“Trust IMA” has the meaning set forth in the Recitals.

 

		(bb)	“Trustee” has the meaning set forth in the introductory paragraph.

 

		(cc)	“Trustee Bookkeeping Update” has the meaning set forth in Section 2.06(b).

 

Section 1.02          Interpretation.
When a reference is made in this Agreement to a Section, Exhibit or Schedule, such reference shall be to a Section of,
or an Exhibit or Schedule to, this Agreement unless otherwise indicated. All references herein to any agreement, instrument,
statute, rule or regulation are to the agreement, instrument, statute, rule or regulation as amended, modified, supplemented
or replaced from time to time (and, in the case of statutes, includes any rules and regulations promulgated under said statutes)
and to any section of any statute, rule or regulation including any successor to said section. The headings contained in this
Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever
the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed
to be followed by the words “without limitation”. Whenever the singular is used herein, the same shall include the
plural, and whenever the plural is used herein, the same shall include the singular, where appropriate. Whenever the word “Dollars”
or the “$” sign appear in this Agreement, they shall be construed to mean United States Dollars, and all transactions
under this Agreement shall be in United States Dollars.

 

    3

     

    

 

ARTICLE II.

ASSIGNMENT, ASSUMPTION AND RELEASE

 

Section 2.01         Seneca
Cell Assignment to Newco. Effective as of the Effective Time, but subject to the completion of the Closing, Seneca Cell hereby
sells, transfers, conveys, assigns, and sets over to Newco and its successors and assigns all of Seneca Cell’s rights, obligations,
liabilities, title and interest in and to the Novating Agreements.

 

 

Section 2.02         Seneca
Cell Assignment of Accounts to Newco. Effective as of the Effective Time, but subject to the completion of the Closing, Seneca
Cell hereby sells, transfers, conveys, assigns, and sets over to Newco and its successors and assigns all of Seneca Cell’s
rights, obligations, liabilities, title and interest in and to:

 

		(a)	the Trust Account, it being the intention of the Parties that Newco account for the assets held in or credited to the Trust
Account consistent with the rights of a grantor of a trust account; and

 

		(b)	the Funds Withheld Account, it being the intention of the Parties that Newco be entitled to record as a receivable in accordance
with applicable accounting requirements the value of the assets held in or credited to the Funds Withheld Account.

 

Section 2.03          Newco
Assumption of Novating Agreements from Seneca Cell. Effective as of the Effective Time, but subject to the completion of the
Closing, Newco hereby assumes and undertakes to pay, perform and discharge, or cause to be paid, performed, or discharged, all
of the liabilities and obligations of Seneca Cell under the Novating Agreements, it being the intention of the Parties that:

 

		(a)	Newco shall be substituted for Seneca Cell under the Novating Agreements with respect to all rights and obligations of Seneca
Cell arising thereunder prior to, on or after the Effective Time, in Seneca Cell’s name, place and stead;

 

		(b)	Seneca Cell shall be deemed to have ceased to be a party to or reinsurer under the Reinsurance Agreement and shall forever
be discharged from all obligations and liabilities thereunder to Cedent, and Seneca Cell shall be deemed to have ceased to be a
party to each other Novating Agreement, and shall forever be discharged from all obligations and liabilities thereunder to each
other party thereto, in each case to the extent arising prior to, on or after the Effective Time; and

 

		(c)	Cedent will look solely to Newco for performance of any and all obligations and liabilities owed to it under the Reinsurance
Agreement, Cedent and the Trustee will look solely to Newco for performance of any and all obligations and liabilities owed to
it under the Trust Agreement, and the Manager will look solely to Newco for performance of any and all obligations and liabilities
owed to it under the Trust IMA, in each case to the extent arising prior to, on or after the Effective Time.

 

Section 2.04          Cedent
Consent. Subject to the completion of the Closing, and notwithstanding anything to the contrary set forth in any Novating Agreement,
Cedent consents to the assignments and assumptions set forth in Sections 2.01, 2.02 and 2.03.

 

Section 2.05          Seneca
Re Consent. Subject to the completion of the Closing, and notwithstanding anything to the contrary set forth in any Novating
Agreement, Seneca Re consents to the assignments and assumptions set forth in Sections 2.01, 2.02 and 2.03.

 

    4

     

    

 

Section 2.06          Trustee
Consent.

 

		(a)	Pursuant to Cedent’s and Seneca Cell’s direction, the Trustee hereby consents to the assignment and assumption
of the Trust Agreement and the Trust Account as described in Sections 2.01, 2.02 and 2.03.

 

		(b)	Upon receipt of the Joint Instruction, the Trustee shall update its books and records and take all such other actions as may
be necessary to reflect that, effective as of the Effective Time: (a) Newco is a party to the Trust Agreement, in place of
Seneca Cell, and (b) Newco is the grantor and beneficial owner of the Trust Account and holds all rights of a grantor and
beneficial owner with regard to the assets held in the Trust Account, and that Seneca Cell is no longer the grantor thereunder
(the “Trustee Bookkeeping Update”).

 

Section 2.07          Manager
Consent. The Manager hereby consents to the assignment and assumption of the Trust IMA, the Trust Agreement, the Trust Account
and the Cedent IMA as described in Sections 2.01, 2.02 and 2.03. The Manager shall update its books and records
and take all such other actions as may be necessary to reflect such assignments and assumptions.

 

Section 2.08          Cedent
Release of Seneca Cell. In consideration of the assignments and assumptions set forth in Sections 2.01, 2.02
and 2.03 and the release granted in Section 2.09 and other valuable consideration set forth herein, the receipt
and adequacy whereof are hereby acknowledged, as of the Effective Time, but subject to the completion of the Closing, Cedent hereby
forever releases and discharges Seneca Cell, and its predecessors, successors, affiliates, agents, officers, directors, employees
and shareholders, from any and all obligations, adjustments, liability for payment of interest, offsets, actions, causes of action,
suits, debts, sums of money, accounts, premium payments, reckonings, bonds, bills, covenants, contracts, controversies, agreements,
promises, damages, judgments, liens, rights, costs and expenses (including attorneys’ fees and costs actually incurred),
claims and demands, liabilities and losses of any nature whatsoever, whether grounded in law or in equity, in contract or in tort,
all whether known or unknown, vested or contingent, that arise in respect of periods following the Effective Time against Seneca
Cell from, based upon, or in any way related to the Novating Agreements, it being the intention of the Parties that this release
shall operate as a full and final settlement of Seneca Cell’s liabilities to Cedent under and in connection with the Novating
Agreements, provided, however, that this release does not discharge obligations of Seneca Cell that have been undertaken
or imposed by the terms of this Agreement.

 

Section 2.09          Seneca
Cell Release of Cedent. In consideration of the assignments and assumptions set forth in Sections 2.01, 2.02
and 2.03 and the release granted in Section 2.08 and other valuable consideration set forth herein, the receipt
and adequacy whereof are hereby acknowledged, as of the Effective Time, but subject to the completion of the Closing, Seneca Cell
hereby forever releases and discharges Cedent, and its predecessors, successors, affiliates, agents, officers, directors, employees
and shareholders, from any and all obligations, adjustments, liability for payment of interest, offsets, actions, causes of action,
suits, debts, sums of money, accounts, premium payments, reckonings, bonds, bills, covenants, contracts, controversies, agreements,
promises, damages, judgments, liens, rights, costs and expenses (including attorneys’ fees and costs actually incurred),
claims and demands, liabilities and losses of any nature whatsoever, whether grounded in law or in equity, in contract or in tort,
all whether known or unknown, vested or contingent, that arise in respect of periods following the Effective Time against Cedent
from, based upon, or in any way related to the Novating Agreements, it being the intention of the Parties that this release shall
operate as a full and final settlement of Cedent’s current and future liabilities to Seneca Cell under and in connection
with the Novating Agreements, provided, however, that this release does not discharge obligations of Cedent that
have been undertaken or imposed by the terms of this Agreement.

 

    5

     

    

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

Unless otherwise specified below, each of
the Parties represents and warrants to each other Party:

 

Section 3.01          Organization
and Qualification. Such Party is an entity duly organized, validly existing and in good standing under the Laws of its jurisdiction
of domicile and has all requisite company power and authority to operate its business as now conducted, and is duly qualified
as a foreign entity to do business, and, to the extent legally applicable, is in good standing, in each jurisdiction where the
character of its owned, operated or leased properties or the nature of its activities makes such qualification necessary, except
for failures to be so qualified or be in good standing that, individually or in the aggregate, do not have, and would not reasonably
be expected to have, a material adverse effect on such Party’s ability to perform its obligations under this Agreement.

 

Section 3.02          Authorization.
Such Party has all requisite company power to enter into, consummate the transactions contemplated by and carry out its obligations
under, this Agreement. The execution and delivery by such Party of this Agreement, and the consummation by such Party of the transactions
contemplated by, and the performance by such Party of its obligations under, this Agreement have been duly authorized by all requisite
company action on the part of such Party. This Agreement has been duly executed and delivered by such Party, and (assuming due
authorization, execution and delivery by the other Parties and the other signatories to this Agreement) this Agreement constitutes
the legal, valid and binding obligation of such Party, enforceable against it in accordance with its terms, subject to the effect
of any applicable bankruptcy, reorganization, insolvency, moratorium, or similar Laws relating to or affecting creditors’
rights generally and to general principles of equity.

 

Section 3.03          No
Conflict. The execution, delivery and performance by such Party of, and the consummation by such Party of the transactions
contemplated by, this Agreement do not and will not (a) violate or conflict with the organizational documents of such Party,
(b) conflict with or violate any Law or Permit of any Governmental Entity applicable to such Party or by which it or its
properties or assets is bound or subject, or (c) result in any breach of, or constitute a default (or event which, with the
giving of notice or lapse of time, or both, would become a default) under, or give to any Person any rights of termination, acceleration
or cancellation of, any agreement, lease, note, bond, loan or credit agreement, mortgage, indenture or other instrument, obligation
or contract of any kind to which such Party or any of its subsidiaries is a party or by which such Party or any of its subsidiaries
or any of their respective properties or assets is bound or affected, except, in the case of clause (c), any such conflicts,
violations, breaches, loss of contractual benefits, defaults or rights that, individually or in the aggregate, do not have, and
would not reasonably be expected to have, a material adverse effect on such Party’s ability to perform its obligations under
this Agreement.

 

    6

     

    

 

ARTICLE IV.

CONDITIONS TO CLOSING; COVENANTS

 

Section 4.01          Effective
Time. Subject to completion of the Closing, the Novation shall be effective at the Effective Time.

 

Section 4.02          Closing
of Novation. The Novation shall not be effective, and none of the assignments, assumptions, releases or consents set forth
in Article II of this Agreement shall be effective, unless and until the last of the conditions set forth below in
this Section 4.02 shall have occurred; provided, however, that none of the following transactions shall
be deemed to have occurred unless and until each of the other transactions shall also have occurred. Upon the satisfaction and
completion of such last condition, the Novation shall become effective and the assignments, assumptions, releases and consents
set forth in Article II of this Agreement shall be effective and shall be deemed to have closed (the “Closing”),
without further action of the Parties.

 

		(a)	Seneca Cell and Cedent shall deliver the Joint Instruction to the Trustee;

 

		(b)	The Trustee shall provide evidence, in a form reasonably satisfactory to the Parties, of the Trustee Bookkeeping Update; and

 

		(c)	Any regulatory approvals of the Novation required by applicable law are received by Seneca Cell, Cedent or Newco, as applicable,
including approval from the Vermont Department of Financial Regulation and the Cayman Islands Monetary Authority.

 

Section 4.03          Amendments
to Novating Agreements. Immediately after the Closing, the Novating Agreements shall be amended and restated in the forms
attached hereto at Annex A

 

Section 4.04          Reimbursement
of Seneca Cell Costs and Expenses. Newco and Cedent acknowledge and agree that Seneca Cell will incur or be required to pay,
after the date hereof, certain costs and expenses in connection with its operations, the Novation and the winding up of its affairs
(the “Final Seneca Cell Expenses”). Such costs and expenses will include legal fees, captive management fees,
consulting fees, auditor fees, reimbursement of expenses paid by Cedent on behalf of Seneca Cell and premium taxes, and are not
expected to exceed $200,000 in aggregate (the “Deposit Amount”). Cedent hereby agrees that Seneca Cell shall
be permitted to transfer funds equal to the Deposit Amount from the Trust Account to Seneca Re to be used to settle Final Seneca
Cell Expenses, and hereby agrees to instruct the Trustee to effect such a transfer in connection with the execution of this Agreement.
Seneca Re hereby agrees to (a) use funds up to and including the Deposit Amount exclusively for the purpose of settling Final
Seneca Cell Expenses, (b) provide an accounting therefor, and (c) remit the amount, if any, by which the Deposit Amount
exceeds the actual Final Seneca Cell Expenses to Newco and/or the Trust Account, as applicable. Newco hereby agrees to reimburse
Seneca Cell for all such reasonably incurred costs and expenses in excess of the Deposit Amount, if any, promptly following Seneca
Cell’s written request therefor (provided that Seneca Cell delivers to Newco a copy of all related invoices or other documentation
reasonably requested by Newco). Cedent hereby agrees that Newco shall be permitted to withdraw funds from the Trust Account for
such purpose, and hereby agrees to instruct the Trustee to effect such withdrawals from time to time.

 

    7

     

    

 

Section 4.05          Further
Assurances. At any time and from time to time after the Closing, at the request of any Party, and without further consideration,
Seneca Cell, Newco and Cedent, as applicable, shall execute and deliver such other instruments of sale, transfer, conveyance,
assignment and confirmation and take such other action as any Party may reasonably request as necessary or desirable in order
to more effectively transfer, convey and assign to Newco the Novating Agreements to the extent provided herein.

 

ARTICLE V.

MISCELLANEOUS

 

Section 5.01          Remedies
and Waiver. All remedies of any Party are cumulative. Failure of either any Party to exercise any right, privilege, power or
remedy at law or in equity, or in existence by virtue of this Agreement or to otherwise insist upon strict compliance with any
of the terms, provisions and conditions of this Agreement, or the obligations of any other Party, will not constitute a waiver
of such right, privilege, power, remedy, term, provision, condition, or obligation. Moreover, the failure of any Party to enforce
any part of this Agreement shall not be deemed to be an act of ratification or consent. No prior transactions or dealings between
or among the Parties shall be deemed to establish any custom or usage waiving or modifying any provision of this Agreement.

 

Section 5.02          Amendments.
This Agreement may not be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by
the Parties, and any such waiver, amendment or modification that is not agreed to in writing by the Parties shall be null and
void ab initio.

 

Section 5.03          Notices.

 

		(a)	All notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopy or email with PDF attachment, as follows:

 

If to Cedent, to:

 

American Life & Security
Corp.

2900 S. 70th Street

Suite 400

Lincoln, NE 68506

Attn: Michael Salem and Mike
Minnich

Tel: (917) 678-8553 and (917)
257-6314

Email: ams@american-life.com and mminnich@american-life.com

 

    8

     

    

 

If to Newco, to:

 

Crestline Re SPC

Crestline Re SP 1

c/o Aon Insurance Managers

18 Forum Lane, 2nd Floor

Camana Bay

P.O. Box 69

Grand Cayman, KY1-1102

Cayman Islands

Attn: Fearghal O’Riordan and Sjoerd van der
Westhuizen

Email: fearghal.oriordan@aon.com

Email: sjoerd.vdw@aon.com

 

with a copy to:

 

Crestline Management, L.P.

201 Main Street, Suite 1900

Fort Worth, TX  76102

Attn:  John Cochran

Email: jcochran@crestlineinc.com

 

If to Seneca Cell, to:

 

Seneca Incorporated Cell, LLC
2020-02

Seneca Reinsurance Company,
LLC 

c/o Amethyst Captive Insurance
Solutions 

126 College Street, Suite 300 

Burlington VT 05401 

Email: jgirardin@amethystcaptive.com 

Email: mminnich@american-life.com

 

If to Seneca Re, to:

 

Seneca Reinsurance Company,
LLC 

c/o Amethyst Captive Insurance
Solutions 

126 College Street, Suite 300 

Burlington VT 05401 

Email: jgirardin@amethystcaptive.com 

Email: mminnich@american-life.com

 

If to the Trustee, to:

 

U.S. Bank, National
Association 

100 Wall Street. 6th
Fl. 

New York, NY 10005 

Attn: Christopher
Grell 

Email: christopher.grell@usbank.com

 

    9

     

    

 

If to the Manager, to:

 

Crestline Management, L.P.

201 Main Street, Suite 1900

Fort Worth, TX  76102

Attn:  John Cochran

Email: jcochran@crestlineinc.com

 

		(b)	Any Party and any other signatory to this Agreement may change its address (street or email) for notices and other communications
hereunder by written notice to the other Parties and signatories to this Agreement. All notices and other communications given
in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt.

 

Section 5.04          Third-Party
Beneficiaries. It is expressly agreed that nothing in this Agreement, expressed or implied, shall be construed to confer upon
any Person other than the Parties, their respective successors and assigns permitted hereby, any legal or equitable right, remedy
or claim under or by reason of this Agreement.

 

Section 5.05          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and the other signatories to this
Agreement and their respective successors and permitted assigns. This Agreement shall not be assigned by any Party or any other
signatory to this Agreement without the prior written consent of each of the non-assigning Parties and other such signatories,
and any such assignment that is not so agreed to in writing shall be null and void ab initio.

 

Section 5.06          Integration;
Effectiveness. This Agreement, together with the Novating Agreements, constitutes the entire contract among the Parties and
the other signatories to this Agreement relating to the subject matter hereof and supersedes any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof.

 

Section 5.07          Severability.
If any provision of this Agreement is held to be invalid, illegal or unenforceable, (a) the legality, validity and enforceability
of the remaining provisions of this Agreement shall not be affected or impaired thereby and (b) the Parties shall endeavor
in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision
in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

Section 5.08          Governing
Law; Jurisdiction; Consent to Service of Process.

 

		(a)	This Agreement will be governed by, and construed in accordance with, the Laws of the State of New York, without regard to
any principles of conflicts of law thereof that are not mandatorily applicable by Law and would permit or require the application
of the Laws of another jurisdiction.

 

		(b)	Each of the Parties and other signatories to this Agreement hereby irrevocably and unconditionally submits, for itself and
its property, to the exclusive jurisdiction of the United States District Court of the Southern District of New York, in any action
or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the
Parties and other signatories to this Agreement hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such federal court. Each of the Parties and the other signatories to this
Agreement agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions
by suit on the judgment or in any other manner provided by Law.

 

    10

     

    

 

		(c)	Each of the Parties and the other signatories to this Agreement irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action
or proceeding arising out of or relating to this Agreement in any court referred to in clause (b) of this Section 5.08.
Each of the Parties and the other signatories to this Agreement hereby irrevocably waives, to the fullest extent permitted by Law,
the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

		(d)	Each of the Parties and the other signatories to this Agreement irrevocably consents to service of process in the manner provided
for notices in Section 5.03. Nothing in this Agreement will affect the right of any Party or other signatory to this
Agreement to serve process in any other manner permitted by Law.

 

Section 5.09          WAIVER
OF JURY TRIAL. EACH PARTY AND OTHER SIGNATORY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY AND OTHER SIGNATORY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY OR OTHER SIGNATORY HERETO HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY OR SIGNATORY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER
AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES AND SIGNATORIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.09.

 

Section 5.10          Headings.
Section headings used herein are for convenience of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this Agreement.

 

Section 5.11          Mutual
Drafting. This Agreement has been drafted with input from and the participation by all Parties and the other signatories to
this Agreement, and as such no drafting presumption or construction shall be applied to any Party or other signatory to this Agreement.

 

Section 5.12          Counterparts;
Signatures. This Agreement may be executed in counterparts, with each counterpart constituting an original and all of such
counterparts constituting but one and the same instrument, and facsimile and/or electronic signatures shall be deemed originals.
Signatures may be exchanged by facsimile or by an email scanned PDF signature page. Each Party and other signatory to this Agreement
agrees that it will be bound by its own facsimiled or PDF-scanned or electronic signature and that it accepts such signatures
of the other Parties and signatories to this Agreement.

 

[Remainder of page intentionally
left blank. Signature pages to follow.]

 

    11

     

    

 

IN WITNESS WHEREOF,
the Parties have caused this Agreement to be executed by their duly authorized representatives as of the day and year first above
written.

 

	 	Seneca Incorporated Cell, LLC 2020-02
	 	 	 
	 	 	 
	 	By:	/s/ John Cochran
	 	 	Name: John Cochran
	 	 	Title:Manager
	 	 	 
	 	 	 
	 	Crestline Re SPC, for and on behalf of Crestline Re SP 1
	 	 	 
	 	 	 
	 	By:	/s/ Dara Keogh
	 	 	Name: Dara Keogh
	 	 	Title:Director
	 	 	 
	 	 	 
	 	AMERICAN LIFE& SECURITY CORP.
	 	 	 
	 	 	 
	 	By:	/s/ Stephen Mace
	 	 	Name: Stephen Mace
	 	 	Title:General Counsel
	 	 	 

 

 

	ACCEPTED AND AGREED:  	 
	 	 
	Seneca Reinsurance Company, LLC  	 
	with
    respect to Section 2.05 only  	 
	 	 
	 	 
	By:	/s/ A. Michael Salem	 
	 	Name: A. Michael Salem   	 
	 	Title:President  	 

 

    

     

    

 

	ACCEPTED AND AGREED:  	 
	 	 
	U.S. Bank National Association, as Trustee  	 
	with
    respect to Section 2.06 only  	 
	 	 	 
	 	 	 
	By:	/s/ Thomas E. Tabor	 
	 	Name: Thomas E. Tabor  	 
	 	Title:Vice President  	 

 

 

	ACCEPTED AND AGREED:	 
	 	 
	CRESTLINE MANAGEMENT, l.P.	 
	with respect to Section 2.07 only	 
	 	 
	 	 
	By: Crestline Investors,Inc., its general partner	 
	 	 	 
	By:	/s/ John Cochran	 
	 	Name: John Cochran	 
	 	Title:Vice President

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