Document:

EX-10.1

 Exhibit 10.1 
 SECOND AMENDMENT TO 
 AMENDED AND RESTATED CREDIT AGREEMENT

 THIS SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is entered into as of
June 15, 2012 by and among PMC COMMERCIAL TRUST, a real estate investment trust organized under the laws of the State of Texas (“PMC), FIRST WESTERN SBLC, INC., a Florida corporation (“First Western”) (PMC and First
Western individually each referred to as a “Borrower” and collectively as “Borrowers”), EACH OF THE FINANCIAL INSTITUTIONS WHICH IS A SIGNATORY HERETO OR WHICH MAY FROM TIME TO TIME BECOME A PARTY HERETO
(individually, a “Lender” and collectively, the “Lenders”) and JPMORGAN CHASE BANK, National Association (“JPMorgan”), a national banking association, as agent for the Lenders (in such capacity,
together with its successors and assigns in such capacity, the “Administrative Agent”). 
 RECITALS:

 WHEREAS, Borrowers, Lenders and Administrative Agent are party to that Amended and Restated Credit Agreement, dated as of
December 10, 2010, as amended by that certain First Amendment to Amended and Restated Credit Agreement, dated as of June 8, 2011 (as the same has been or may be renewed, extended, amended and restated from time to time, the “Credit
Agreement”); and 
 WHEREAS, Borrowers have requested that Administrative Agent and Lenders agree to an amendment
extending the maturity date and making other changes. Subject to the conditions set forth in this Amendment, Administrative Agent and Lenders have agreed to amend the Credit Agreement as set forth herein. 

NOW, THEREFORE, the parties to this Amendment, for good, fair and valuable consideration, the receipt and reasonable equivalency of which
are hereby acknowledged, do hereby agree as follows: 
 ARTICLE I 

DEFINITIONS 

Section 1.1 Defined Terms; References. Unless otherwise stated in this Amendment (a) terms defined in the Credit Agreement
have the same meanings when used in this Amendment, and (b) references to “Sections,” “Schedules” and “Exhibits” are to sections, schedules and exhibits to the Credit Agreement. 

ARTICLE II 

AMENDMENTS 

Section 2.1 Amendment to Section 1.1 of the Credit Agreement. Section 1.1 of the Credit Agreement is hereby amended to
add the following definition in proper alphabetical order to read in its entirety as follows: 
 “Second Amendment
Effective Date” means June 15, 2012. 
 SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT 

 Section 2.2 Amendment to Section 9.1 of the Credit Agreement. Section 9.1
of the Credit Agreement is hereby amended to read in its entirety as follows: 
 9.1 Minimum Net Worth.
The Companies’ consolidated Net Worth shall not at any time during any period set forth below be less than the amount set forth opposite such time period: 
  

					
	 Time Period
	  	Minimum Net Worth	 
	Second Amendment Effective Date through June 30, 2012	  	$	139,500,000	  
	July 1, 2012 through September 30, 2012	  	$	137,000,000	  
	October 1, 2012 through December 31, 2012	  	$	134,500,000	  
	January 1, 2013 and thereafter	  	$	132,000,000	  

 Section 2.3 Amendments to Exhibit D. Exhibit D to the Credit Agreement is hereby deleted
and the attached Exhibit D is hereby substituted in its stead. 
 ARTICLE III 

CONDITIONS PRECEDENT 
 Section 3.1 Conditions Precedent. Notwithstanding any contrary provisions herein, this Amendment is not effective unless and until: 

(a) the representations and warranties in this Amendment and in the Credit Agreement are true and correct; 

(b) the Administrative Agent shall have received counterparts of this Amendment executed by each party named below; 

(c) the Administrative Agent shall have received reimbursement for all costs and expenses incurred by it in connection with this
Amendment and the other transactions to the extent invoiced; and 
 (d) the Administrative Agent shall have received such other
documents, instruments and certificates as reasonably requested by it in connection with this Amendment. 
 ARTICLE IV

 NO WAIVER 
 Section 4.1 No Waiver. Nothing herein shall be construed as a consent to or waiver of any Potential Default or Event of Default which may now exist or hereafter occur or any violation of any term,
covenant or provision of the Credit Agreement or any other Credit Document. All rights and remedies of the Administrative Agent and the Lenders are hereby expressly reserved with respect to any such Potential Default or Event of Default. Nothing
herein shall diminish the right of the Administrative Agent or any Lender to require strict performance by Borrowers of each provision of any Credit Document to which such Person is a party, except as expressly provided herein. All terms and
provisions and all rights and remedies of the Administrative Agent and the Lenders under the Credit Documents shall continue in full force and effect and are hereby confirmed and ratified in all respects. 

  
 SECOND
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT – PAGE 2 

 ARTICLE V 
 MISCELLANEOUS 
 Section 5.1 Ratifications. This Amendment modifies and
supersedes all inconsistent terms and provisions of the Credit Documents, and except as expressly modified and superseded by this Amendment, the Credit Documents are ratified and confirmed and continue in full force and effect. Borrowers,
Administrative Agent and Lenders agree that the Credit Documents, as amended by this Amendment, continue to be legal, valid, binding and enforceable in accordance with their respective terms. 

Section 5.2 Representations and Warranties. Each of the Borrowers hereby represents and warrants to Administrative Agent and
Lenders that (a) this Amendment and any Credit Documents to be delivered under or in connection with this Amendment have been duly executed and delivered by PMC and First Western, (b) no action of, or filing with, any Governmental
Authority is required to authorize, or is otherwise required in connection with, the execution, delivery, and performance by PMC or First Western of this Amendment and any Credit Document to be delivered under or in connection with this Amendment,
(c) this Amendment and any Credit Documents to be delivered under or in connection with this Amendment are valid and binding upon PMC and First Western and are enforceable against PMC and First Western in accordance with their respective terms,
(d) the execution, delivery, and performance by PMC and First Western of this Amendment and any Credit Documents to be delivered under or in connection with this Amendment do not require the consent of any other Person and do not and will not
constitute a violation of any applicable laws, agreements or understandings to which such Person is a party or by which such Person is bound, (e) the representations and warranties contained in the Credit Agreement, as amended by this
Amendment, and any other Credit Document are true and correct in all material respects as of the date of this Amendment (except for any representations and warranties that speak to a specific date prior to the date of this Amendment), (f) as of
the date of this Amendment, no Potential Defaults or Events of Default exist, and (g) that certain Guaranty executed by PMC, dated as of December 28, 2010 (i) is hereby ratified and confirmed, (ii) continues in full force and
effect, and (iii) continues to be legal, valid, binding and enforceable in accordance with its terms. 
 Section 5.3
References. All references in the Credit Documents to the “Credit Agreement” refer to the Credit Agreement as amended by this Amendment. This Amendment is a “Credit Document” as referred to in the Credit Agreement and the
provisions relating to Credit Documents in the Credit Agreement are incorporated herein by reference, the same as if set forth verbatim in this Amendment. 
 Section 5.4 Counterparts. This Amendment may be executed in any number of counterparts with the same effect as if all signatories had signed the same document. 

Section 5.5 Parties Bound. This Amendment binds and inures to the benefit of each Borrower, Agent and each Lender and their
respective successors and assigns. 

  
 SECOND
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT – PAGE 3 

 Section 5.6 Entirety. THIS AMENDMENT, THE CREDIT AGREEMENT AS AMENDED BY THIS
AMENDMENT, AND THE OTHER CREDIT DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES FOR THE TRANSACTIONS THEREIN, AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SU BSEQUENT ORAL AGREEMENT BETWEEN THE PARTIES. THERE ARE
NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
 [Remainder of Page Intentionally Left Blank.] 

  
 SECOND
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT – PAGE 4 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date set forth
above. 
  

			
	BORROWERS:
		 	
	PMC COMMERCIAL TRUST
		
	By:	 	/s/ Barry N. Berlin
		 	 Barry N. Berlin
 Executive
Vice President and
 Chief Financial Officer

		 	
	FIRST WESTERN SBLC, INC.
		 	
	By:	 	/s/ Barry N. Berlin
		 	 Barry N. Berlin
 Executive
Vice President and
 Chief Financial Officer

 ADMINISTRATIVE AGENT AND LENDERS:  
 JPMORGAN CHASE BANK, N.A., 
 individually, as a Lender and as Administrative Agent 

 

	
	/s/ Michael B. Becker
	 By:     Michael B. Becker
 Title: Senior Underwriter

  
 SECOND
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT – SIGNATURE PAGEAmendment No. 2, dated June 15, 2012, to Note Agreement

 Exhibit 10.40 
 AMENDMENT NO. 2 
 TO NOTE AGREEMENT 

THIS AMENDMENT NO. 2 (the “Amendment”) to the Note Agreement dated as of April 18, 2011 (as previously amended by
Amendment No. 1 thereto dated December 21, 2011, the “Agreement”), by and among MHI Hospitality Corporation, a Maryland corporation (the “Borrower”), and each lender a party thereto from time to time
(together with their successors and assigns, each, a “Lender”, and collectively, the “Lenders”) and Essex Equity High Income Joint Investment Vehicle, LLC, a Delaware limited liability company, as agent for the
Lenders (the “Agent”, and collectively with the Borrower and the Lenders, the “Parties”), is made and entered into by and among the Parties as of June 15, 2012 (subject to the conditions precedent to
effectiveness set forth in Section 2 hereof, the “Amendment Date”). Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Agreement. 

WHEREAS, the Parties desire, for their mutual convenience and benefit, to amend the Agreement as set forth in this Amendment. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 
 1. Upon the making of the
Prepayment (as defined below), the Parties agree that the aggregate outstanding balance of the Loans (including, without limitation, accrued and unpaid interest) shall be zero and that the amount of undrawn Term Loan Commitments under the Agreement
shall be $7,000,000, and references in the Agreement to the maximum aggregate principal amount of all Loans and to the Term Loan Commitments shall be interpreted accordingly. Of such undrawn Term Loan Commitments, $2,000,000 shall be solely reserved
for Loans the proceeds of which the Borrower shall use to cause its Subsidiary to repay principal amounts outstanding under the existing mortgage on the Crowne Plaza Jacksonville Riverfront Hotel Property. For the avoidance of doubt, the
Borrower’s ability to borrow, and the Lenders’ obligation to make, Loans up to the Term Loan Commitments shall be governed by the terms and conditions of the Agreement as amended hereby. 

2. Section 7 of the Agreement is hereby amended by adding the following sentence at the end thereof: 

“No part of the proceeds of the Loans borrowed hereunder will be used for the purpose of redeeming shares of Preferred Stock.”

 3. The effectiveness of this Amendment is subject to and contingent upon the fulfillment of
each and every one of the following conditions: 
 (a) the Borrower or one of its Subsidiaries shall have closed on a financing
transaction with C1 Bank, as lender, in respect of the hotel property known as the Crowne Plaza Tampa Westshore (the “Tampa Financing”); 
 (b) the Borrower shall have made or caused to be made, from the proceeds of the Tampa Financing, (i) a prepayment of outstanding Loans in an amount of not less than $1,500,000 (the
“Prepayment”) and (ii) payment of all accrued and unpaid interest with respect to the Prepayment; and 

(c) the redemption of certain issued and outstanding shares of the Preferred Stock held by Essex Illiquid, LLC and Richmond Hill Capital
Partners, LP (together the “Preferred Stockholders”) in the manner contemplated in that certain Agreement, Waiver and Consent by Preferred Stockholders dated as of June 15, 2012 shall have occurred. 

4. This Amendment shall be deemed to be incorporated into the Agreement and made a part thereof. All references to the Agreement in any
other document (including, without limitation, that certain promissory note made and delivered by the Borrower to the Agent dated as of April 18, 2011) shall be deemed to be references to the Agreement as modified by this Amendment. Except as
specifically amended or modified herein, the Agreement shall continue in full force and effect and shall be enforceable in accordance with each of the terms thereof. To the extent that the terms of this Amendment conflict with the terms of the
Agreement, the terms of this Amendment shall be deemed to govern. 
 5. This Amendment may be executed simultaneously in one or
more counterparts, and by different Parties in separate counterparts, each of which when executed will be deemed an original, but all of which taken together will constitute one and the same instrument. 

6. This Amendment will be governed by, and construed in accordance with, the laws of the state of New York applicable to contracts
executed in and to be performed entirely within such jurisdiction, without reference to conflicts of laws provisions. 
 7. This
Amendment may not be amended, modified or waived except by an instrument in writing signed on behalf of each of the Parties. 

[Signature page follows.] 

  
 2 

 IN WITNESS WHEREOF, the Parties, intending to be legally bound, have executed this Amendment
as of the Amendment Date. 
  

							
	BORROWER:	 		 	MHI HOSPITALITY CORPORATION
				
		 		 	By:	 	 /s/ David R. Folsom

		 		 	Name:	 	David R. Folsom
		 		 	Title:	 	President and Chief Operating Officer

 [SIGNATURE PAGE TO AMENDMENT
NO. 2 TO NOTE AGREEMENT] 

							
	LENDER:	 		 	 ESSEX EQUITY HIGH INCOME JOINT INVESTMENT VEHICLE, LLC

				
		 		 	By:	 	Richmond Hill Investments, LLC, the Investment Manager
				
		 		 	By:	 	 /s/ Ryan P. Taylor

		 		 	Name:	 	Ryan P. Taylor
		 		 	Title:	 	Managing Director and Authorized Signatory
			
	AGENT:	 		 	ESSEX EQUITY HIGH INCOME JOINT INVESTMENT VEHICLE, LLC
				
		 		 	By:	 	Richmond Hill Investments, LLC, the Investment Manager
				
		 		 	By:	 	 /s/ Ryan P. Taylor

		 		 	Name:	 	Ryan P. Taylor
		 		 	Title:	 	Managing Director and Authorized Signatory

 [SIGNATURE PAGE TO AMENDMENT
NO. 2 TO NOTE AGREEMENT]

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