Document:

Unassociated Document

    Exhibit
10.1

    

    

     

    

     

    

     

    

     

    NOTES
PURCHASE AGREEMENT

    

    

    by and
among

    

    

    FUSHI
COPPERWELD, INC.

    

    and

    

    THE
HOLDERS PARTY HERETO

    

    

     

    

     

    

     

    

     

    

     

    

     

    Dated:  February
26, 2010

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    This
Notes Purchase Agreement (this “Agreement”)
is dated as of February 26, 2010, by and between Fushi Copperweld, Inc.
(formerly known as Fushi International, Inc.), a Nevada corporation (the “Company”),
and the Holders signatory hereto (collectively, “Holders”).

     

    WHEREAS,
the Company originally issued and sold Guaranteed Senior Secured Floating Rate
Notes Due 2012 (the “Notes”)
in the aggregate principal amount of $40,000,000 pursuant to the provisions of
an indenture (the “Indenture”),
dated as of January 25, 2007, among the Company and The Bank of New York Mellon
(formerly known as The Bank of New York), as trustee (the “Trustee”).  Terms
used but not defined herein shall have the meaning ascribed to such terms in the
Indenture;

     

    WHEREAS,
the Holders signatory hereto are all of the Holders under the Indenture and hold
all of the outstanding Notes as of the date hereof;

     

    WHEREAS,
all capitalized terms used but not defined herein shall have the meanings
ascribed to such terms in the Indenture;

     

    NOW,
THEREFORE, in consideration of the mutual covenants and promises contained
herein and for other good and valuable consideration the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as follows:

     

    1.    Purchase
of Notes.

     

    Subject
to the terms and conditions of this Agreement, the Company agrees to buy from
each Holder and each Holder agrees to sell to the Company on February 26, 2010
(the “Purchase
Date”) the Notes in the original principal amount and for the purchase
price set forth opposite such Holder’s name on Schedule 1 attached hereto
(“Schedule 1”)
(the purchase price shall be equal to 102.0% of the outstanding principal amount
of such Notes plus any accrued and unpaid interest on the Notes to the Purchase
Date, exclusive (the “Purchase
Amount”)).

     

    2.    Payment of the Purchase
Amount

     

    The Company shall cause the applicable
Purchase Amount to be paid to the Holders on the Purchase Date by remitting such
Purchase Amount, in immediately available funds, to the Nominated Account of
such Holder set forth opposite such Holder’s name on Schedule 1.

     

    3.    Repurchase,
Delivery and Cancellation.

     

    Subject to receipt by the respective
Holder of the Purchase Amount in the Nominated Account, such Holder shall
transfer or cause to be transferred the Notes set forth opposite its name on
Schedule 1 (i) if through Euroclear, to account number 23520 and (ii) if through
Clearstream, pursuant to the instructions set forth on Schedule 2 attached
hereto, in each case, no later than 10:00 a.m. (New York City time) on the
second Business Day following the Purchase Date.

     

    4.    Discharge of
Indenture

     

    Each
Holder acknowledges that, upon purchase of the Notes hereunder and transfer of
the Notes as required under Section 3 of this Agreement, the Company shall
request the satisfaction and discharge of the Indenture by the Trustee pursuant
to Section 11.01 of the Indenture.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5. Representations
and Warranties.

     

    
      	
              (a)  

            	
              Holders.  Each
      Holder, individually, represents and warrants, as of the date hereof and
      as of the Purchase Date, to the Company as
  follows:

            

    

     

    
      	
            	
              (i)  

            	
              Such
      Holder is duly organized, validly existing and in good standing under the
      laws of the jurisdiction of its organization and has all power and
      authority required to use its properties and conduct its
      business.

            

    

     

    
      	
            	
              (ii)  

            	
              Such
      Holder has all requisite power and authority to execute, deliver and
      perform its obligations under this Agreement.  The execution,
      delivery and performance of this Agreement by such Holder have been duly
      authorized by all necessary action on the part of such
    Holder.

            

    

     

    
      	
            	
              (iii)  

            	
              This
      Agreement has been duly executed and delivered by such Holder and
      constitutes a valid and binding obligation of such Holder, enforceable
      against such Holder in accordance with its terms, except as such
      enforceability may be limited by bankruptcy, insolvency, fraudulent
      conveyance, reorganization, moratorium or other similar laws relating to
      or affecting creditors’ rights generally and by general principles of
      equity.

            

    

     

    
      	
            	
              (iv)  

            	
              No
      regulatory approval is required to be obtained by such Holder in
      connection with the execution, delivery and performance of this Agreement.
      The execution, delivery and performance of this Agreement will not (i)
      violate any provision of the constitutional documents of such Holder, (ii)
      result in the violation of any law applicable to such Holder, (iii)
      violate or constitute a default under or give rise to any third parry
      rights under any agreement or instrument applicable to such Holder or any
      of its assets, or (iv) result in the imposition of any security interest
      upon any assets of such Holder, except for such violations, defaults,
      third party rights and security interest under clauses (ii), (iii) and
      (iv) that, individually and in the aggregate, neither have had nor are
      reasonably likely to have a material adverse effect on the ability of such
      Holder to perform its obligations under this
  Agreement.

            

    

     

    
      	
            	
              (v)  

            	
              Such
      Holder has the sole beneficial interest in all the Notes to be sold by it
      on the Purchase Date in accordance with this Agreement, in each case, free
      and clear of any lien, security interest, claim or encumbrance and will be
      selling such Notes free and clear of any lien, security interest, claim or
      encumbrance to the Company hereunder.  Such Holder does not own,
      beneficially or of record, any Notes other than those set forth opposite
      its name on Schedule 1.

            

    

     

    
      	
            	
              (vi)  

            	
              Such
      Holder has sufficient knowledge and experience in finance, securities,
      investments and other business matters to be able to protect its interests
      in connection with the transfer contemplated
  hereunder.

            

    

     

     

    

    
      	
              (b)  

            	
              The
      Company.  The Company represents and warrants, as of the
      date hereof and as of the Purchase Date, to each Holder as
      follows:

            

    

     

    
      	
            	
              (i)  

            	
              The
      Company has all requisite corporate power and legal authority to execute,
      deliver and perform his obligations under this Agreement.  The
      execution, delivery and performance of this Agreement have been duly
      authorized by all necessary action on the part of the Company, including
      approval of the Company’s Board of Directors, to the extent
      required.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
            	
              (ii)  

            	
              This
      Agreement has been duly executed and delivered by the Company and
      constitutes a valid and binding obligation of the Company, enforceable
      against the Company in accordance with its terms, except as such
      enforceability may be limited by bankruptcy, insolvency, fraudulent
      conveyance, reorganization, moratorium or other similar laws relating to
      or affecting creditors’ rights generally and by general principles of
      equity.

            

    

     

    
      	
            	
              (iii)  

            	
              No
      regulatory approval is required to be obtained by the Company in
      connection with the execution, delivery and performance of this Agreement.
      The execution, delivery and performance of this Agreement will not (i)
      violate any provision of the constitutional documents of the Company, (ii)
      result in the violation of any law applicable to the Company, (iii)
      violate or constitute a default under or give rise to any third party
      rights under any agreement or instrument applicable to the Company or any
      of its assets, or (iv) result in the imposition of any security interest
      upon any assets of the Company, except for such violations, defaults,
      third party rights and security interest under clauses (ii), (iii) and
      (iv) that, individually and in the aggregate, neither have had nor are
      reasonably likely to have a material adverse effect on the ability of
      Company to perform his obligations under this
  Agreement.

            

    

     

    6. Miscellaneous.

     

    
      	
              (a)  

            	
              Notices
      given pursuant to any provision of this Agreement shall be addressed as
      follows: (i) if to the Company, to the attention of: Wenbing Chris Wang,
      President, TYG Center Tower B Suite 2601, Dongsanhuan Bei Lu Bing
      2,  Beijing  People’s Republic of China, 100027, Fax:
      (86) 10 8447
      8847, with a copy to Loeb
      & Loeb LLP, 345 Park Avenue, New York, NY 10154, Fax: (212) 407-4990,
      Attention:  Mitchell S. Nussbaum, Esq. and (ii) if to a
      Holder, to the address set forth on such Holder’s signature page
      hereto.

            

    

     

    
      	
              (b)  

            	
              This
      Agreement has been and is made solely for the benefit of and shall be
      binding upon each of the parties to this Agreement, and their respective
      heirs, executors, administrators, successors and assigns, all as and to
      the extent provided in this Agreement, and no other person shall acquire
      or have any right under or by virtue of this
  Agreement.

            

    

     

    
      	
              (c)  

            	
              THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
      OF THE STATE OF NEW YORK.

            

    

     

    
      	
              (d)  

            	
              Each
      of the parties hereto agrees that any suit, action or proceeding against
      such party arising out of or based upon this Agreement or the transactions
      contemplated hereby may be instituted in any State or U.S. federal court
      in The City of New York and County of New York, and waives any objection
      which it may now or hereafter have to the laying of venue of any such
      proceeding, and irrevocably submits to the non-exclusive jurisdiction of
      such courts in any suit, action or
proceeding.

            

    

     

    
      	
              (e)  

            	
              The
      parties hereto each hereby waive any right to trial by jury in any action,
      proceeding or counterclaim arising out of or relating to this
      Agreement.

            

    

     

    
      	
              (f)  

            	
              No
      failure to exercise, and no course of dealing with respect to, and no
      delay in exercising, any right, power or remedy hereunder shall operate as
      a waiver thereof; nor shall any single or partial exercise of any right,
      power or remedy hereunder preclude any other or further exercise thereof
      or the exercise of any other right, power or
  remedy.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
              (g)  

            	
              This
      Agreement may be signed in various counterparts which together shall
      constitute one and the same
instrument.

            

    

     

    
      	
              (h)  

            	
              The
      headings in this Agreement are for convenience of reference only and shall
      not limit or otherwise affect the meaning of any provision of this
      Agreement.

            

    

     

    
      	
              (i)  

            	
              If
      any term, provision, covenant or restriction of this Agreement is held by
      a court of competent jurisdiction to be invalid, illegal, void or
      unenforceable, the remainder of the terms, provisions, covenants and
      restrictions set forth herein shall remain in full force and effect and
      shall in no way be affected, impaired or invalidated, in each case, to the
      extent permitted by applicable law, and the parties hereto shall use their
      best efforts to find and employ an alternative means to achieve the same
      or substantially the same result as that contemplated by such term,
      provision, covenant or restriction.  It is hereby stipulated and
      declared to be the intention of the parties that they would have executed
      the remaining terms, provisions, covenants and restrictions without
      including any of such that may be hereafter declared invalid, illegal,
      void or unenforceable, to the extent permitted by applicable
      law.

            

    

     

    
      	
              (j)  

            	
              This
      Agreement may be amended, modified or supplemented, and waivers or
      consents to departures from the provisions hereof may be given; provided that
      the same are in writing and signed by all of the signatories
      hereto.

            

    

     

    
      	
              (k)  

            	
              Each
      Holder hereby agrees as follows:

            

    

     

    
      	
            	
              (i)  

            	
              Each
      Holder shall, at the cost of the Company, execute and shall, in its
      capacity as a Holder of the Notes, direct the Trustee to execute such
      further documents and agreements as the Company reasonably requests to
      effectuate the terms of this Agreement or consummate the transactions
      contemplated hereby;

            

    

     

    
      	
            	
              (ii)  

            	
              Upon
      the Company’s payment in full of the Purchase Amount in accordance with
      this Agreement, each Holder agrees and acknowledges that it shall have no
      further interest in the Notes or the Indenture and that the obligations of
      the Company to such Holder arising from the Indenture shall have been paid
      in full;

            

    

     

    
      	
            	
              (iii)  

            	
              With
      respect to the Notes to be sold in accordance with this Agreement, each
      Holder shall not, for three Business Days after the date of this
      Agreement, (x) sell, transfer, pledge, convey, or otherwise dispose of its
      interest in such Notes (in whole or in part) other than to the Company as
      provided in this Agreement or (y) exercise, or encourage, cause, direct,
      or instruct the Trustee to exercise, any rights or remedies that the
      Holders have against the Company under the
  Indenture;

            

    

     

    
      	
            	
              (iv)  

            	
              Subject
      to payment in full of the Purchase Amount, each Holder, as the Holder of
      the Notes, from the date hereof, by executing this
      Agreement,  agrees and acknowledges that the execution and
      performance by the Company under this Agreement shall not be deemed a
      breach, Default or Event of Default under the Indenture or any related
      agreement, instrument or document;
and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
            	
              (v)  

            	
              In
      the event the Company does not comply with any of its obligations under
      this Agreement, each Holder’s agreements set forth in clauses (i) through
      (iv) above in this Section 6(k) shall be null and void ab initio and of no
      force and effect, and any waiver provided by such Holder shall be
      rescinded.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the Company and the Holders have executed this Agreement as of
the date set forth above.

     

     

     

    
      
        
          	 	
                  COMPANY:

                   

                  FUSHI COPPERWELD, INC.

                	 
	 	 	 	 
	
                   
      

                	
                  By:
      

                	/s/ Wenbing
      Chris Wang	 
      
	 	 	Name:
      Wenbing Chris Wang 	 
	 	 	Title:  President	 
	 	 	 	 

        

      

    

           

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [HOLDERS:]

     

    ______________________________,
as a Holder

    

    By:
______________________________________

    Name:

    Title:

     

    

     

    Address for Notices:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
1

     

    [Intentionally
Omitted]

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      
         SCHEDULE
2FORBEARANCE
AGREEMENT

     

    This
FORBEARANCE AGREEMENT is
dated as of March 4, 2010 (the “Effective Date”), by
and among DRAWBRIDGE SPECIAL OPPORTUNITIES FUND LP and FORTRESS CREDIT
OPPORTUNITIES I LP, collectively (“Lender”), and SUMMIT
HOTEL PROPERTIES, LLC a South Dakota limited liability company, as borrower
(“Borrower”),
each SHP Subsidiary signatory hereto, and The Summit Group, Inc. (“Guarantor” together
with Borrower and each SHP Subsidiary, collectively, the “Borrower Parties” and
each a “Borrower
Party”).

     

    RECITALS

     

    A.           Borrower
and Fortress Credit Corp. (“Initial Lender”)
entered into that certain Loan Agreement, dated as of March 5, 2007 (the “Loan Agreement”),
pursuant to which Initial Lender made a loan (the “Loan”) to Borrower in
the principal amount of up to Ninety-Nine Million, Seven Hundred Thousand and
00/100 Dollars ($99,700,000), following which, Initial Lender assigned its
interest as lender to Lender

     

    B.           The
Debt is due and payable in full as of the Scheduled Maturity Date of March 5,
2010 (the “Maturity
Event”).

     

    C.           Borrower,
the SHP Subsidiaries, The Summit Group, Inc. and Lender have executed a
non-binding letter dated February 24, 2010 outlining the proposed terms and
conditions for the potential modification and extension of the Loan and are
negotiating definitive documents evidencing such potential modification and
extension.

     

    D.           Lender
is willing to temporarily forbear from the exercise of Lender rights and
remedies under its Loan arising as a result of the Maturity Event for a period
of time, and on such terms and conditions, as set forth in this
Agreement.

     

    NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Lender and Borrower (collectively, the “Parties”)
hereby agree as follows:

     

    ARTICLE
1

     

    RECITALS
AND DEFINITIONS

     

    SECTION
1.1  Definitions; Controlling
Document.  The following terms shall have the following
meanings in this Agreement (such meanings to be equally applicable to both the
singular and plural forms of the terms defined).  Capitalized terms
not otherwise defined in this Agreement shall have the meaning ascribed to such
terms in the Loan Agreement applicable to the Loan with respect to which such
term is used.  In the event of an inconsistency or conflict between
the provisions of any Loan Agreement and this Agreement, this Agreement shall
control.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Agreement”
means this Forbearance Agreement, as the same may be amended, restated,
supplemented or otherwise modified from time to time.

     

    “Enforcement
Action” means any action or the exercise by a Lender of any right or
remedy, at law or in equity, as provided by contract or otherwise, to declare an
Event of Default related to the Maturity Event or realize upon the Collateral
(including, without limitation, an assignment in lieu of foreclosure or other
final negotiated settlement in lieu of any such enforcement action) or to
collect the Debt secured by the Collateral (including without limitation any
acceleration thereof).  

     

    “Forbearance
Termination Time” shall mean the time when the earliest of the following
occurs:

     

    a.           12:01
am on April 5, 2010;

     

    b.           the
occurrence of any Event of Default other than the Maturity Event;

     

    c.           the
commencement of any Bankruptcy Proceeding with respect to any Borrower
Party;

     

    d.           any
representation or warranty made by any Borrower Party in this Agreement shall
prove to have been untrue, inaccurate or incomplete in any material respect on
or as of the date made or deemed made;

     

    e.           any
Borrower Party shall fail in any material respect to perform, as and when
required, any of its covenants or other obligations set forth in this
Agreement;

     

    f.           any
Borrower Party shall take any action to challenge (including, without
limitation, asserting in writing any challenge to) the validity or
enforceability of this Agreement or any provision hereof; or

     

    g.           the
commencement of a suit or the assertion of a counterclaim, defense or right of
set off by any Borrower or any Affiliate of any Borrower against
Lender.

     

    ARTICLE
2

     

    ACKNOWLEDGMENT
OF DEBT, STATUS OF LOAN, RELEASE OF CLAIMS,

     

    SECTION
2.1  Reaffirmation of Loan
Documents.  Each Borrower Party hereby acknowledges and agrees
that all terms, conditions and provisions of each Loan Document continues in
full force and effect and remain unaffected and unchanged, and Borrower hereby
reaffirms the Debt and all other obligations of Borrower under each Loan
Document.  This Agreement is not intended to, and shall not be
construed to, create or constitute a modification or waiver of any Loan or any
Default, Event of Default, or breach under the Loan Agreement or any other Loan
Document or a release or relinquishment of, and shall not affect, the liens,
security interests and, except as expressly provided in this Agreement, any of
the rights under any Loan Document, all of which are hereby ratified, confirmed,
renewed and extended in all respects.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    SECTION
2.2  Acknowledgments of
Borrower.

     

    (a)           Aggregate Amount of
Loan.  Each Borrower hereby acknowledges that, as of March 5,
2010, the aggregate outstanding amount of the Loan, including all principal,
accrued and unpaid interest is $84,753,176.69 and as of March 5, 2010, such
amount is due and payable in full.

     

    (b)           Collateral.  Borrower
acknowledges and agrees that all of the Collateral under the Loan, all reserve
funds and escrowed funds pursuant to the Loan Documents (whether currently
existing or deposited in the future), secures and shall continue to secure the
Loan with valid first priority liens and security interests, to the extent
granted in the Loan Documents, and that Borrower has not taken any action that
would cause the interruption, cessation or other lapse of the aforesaid lien and
security interests in such Collateral or loss of priority of the Lender's lien
or security interest in such Collateral.

     

    (c)           This Agreement Not to
Supersede Loan Documents.  This Agreement does not amend or
modify in any way any of the Loan Documents.  The Loan Documents shall
continue to govern the Loan until such time as Lender and Borrower agree (if at
all) to enter into other agreements governing the Loan.  This
Agreement does not waive, alter or modify Lender’s rights under any Loan
Document or otherwise waive or excuse any Default or Events of Default under any
Loan Document.  Borrower acknowledges and agrees that, notwithstanding
the agreement of Lender to forbear from taking any Enforcement Action during the
Forbearance Period in respect of the Maturity Event, such forbearance shall not
constitute a waiver of the occurrence or the continuance of any Default or Event
of Default, and any such Default or Event of Default which has occurred shall
continue to exist after the Effective Date unless and until cured by Borrower or
waived by Lender.  This Agreement does not modify, alter or amend any
Loan or any relationship between or among Borrower and Lender.

     

    ARTICLE
3

     

    REPRESENTATIONS
AND WARRANTIES

     

    To induce
Lender to enter into this Agreement, Borrower makes the following
representations and warranties:

     

    SECTION
3.1  Formation.

     

    (a)           Borrower
is a limited liability company, duly organized, validly existing, and in good
standing under the State of South Dakota, is qualified to do business in each
State in which it is required to be authorized to do business, and has all
requisite organizational power and authority to execute, deliver and perform its
obligations under this Agreement.  Borrower has delivered to Lender
all formation and organizational documents of such Borrower, and all such
formation and organizational documents remain in full force and effect and have
not been amended or modified since they were delivered to Lender.  No
consent of any Person is required under any contract, license, permit, approval
or law binding on Borrower in connection with the execution, delivery or
performance of this Agreement.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (b)           Each
SHP Subsidiary is a limited liability company, duly organized, validly existing,
and in good standing under the State of Delaware or the State of South Dakota,
as applicable, is qualified to do business in each State in which it is required
to be authorized to do business, and has all requisite organizational power and
authority to execute, deliver and perform its obligations under this
Agreement.  Each SHP Subsidiary has delivered to Lender all formation
and organizational documents of such SHP Subsidiary, and all such formation and
organizational documents remain in full force and effect and have not been
amended or modified since they were delivered to Lender.  No consent
of any Person is required under any contract, license, permit, approval or law
binding on any SHP Subsidiary in connection with the execution, delivery or
performance of this Agreement.

     

    (c)           Guarantor
is a corporation, duly organized, validly existing, and in good standing under
the State of South Dakota, is qualified to do business in each State in which it
is required to be authorized to do business, and has all requisite
organizational power and authority to execute, deliver and perform its
obligations under this Agreement.  Guarantor has delivered to Lender
all formation and organizational documents of Guarantor, and all such formation
and organizational documents remain in full force and effect and have not been
amended or modified since they were delivered to Lender.  No consent
of any Person is required under any contract, license, permit, approval or law
binding on Guarantor in connection with the execution, delivery or performance
of this Agreement.

     

    SECTION
3.2  Power
and Authority.  The execution, delivery and performance of this
Agreement by each Borrower Party is not in contravention of law, or any
indenture, agreement or undertaking to which any Borrower Party is a party or by
which any Borrower Party is bound.

     

    SECTION
3.3  Valid
and Binding Obligations.  The execution and delivery by each
Borrower Party of this Agreement and any other documents required hereunder have
been duly and properly made and authorized, and when executed and delivered by
each Borrower Party will constitute the legal, valid, and binding obligations of
each Borrower Party enforceable in accordance with their respective terms,
subject to applicable bankruptcy, insolvency and similar laws affecting rights
of creditors generally, and subject to general principles of equity (regardless
of whether enforcement is sought in a proceeding at law or in
equity.)

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    SECTION
3.4  No
Defenses.  Each Borrower Party’s obligations to Lender under
the Loan Documents to which it is a party are valid and
enforceable.

     

    SECTION
3.5  No
Default Caused by Entry Into Agreement.  The execution and
delivery of this Agreement and the consummation of the transactions herein
contemplated will not violate any law, rule, regulation, order, writ, judgment,
injunction, decree or award binding on any Borrower Party, or conflict with or
constitute a default under or result in the creation or imposition of any lien
pursuant to the terms of any indenture, instrument or agreement to which any
Borrower is a signatory or by which any Borrower Party is otherwise
bound.

     

    SECTION
3.6    No
Litigation.  There are no material actions, suits or
proceedings at law or in equity by or before any Governmental Authority or
Person now pending, affecting or, to the knowledge of any Borrower Party,
threatened against any Collateral, any Borrower Party, except as previously
disclosed in writing to Lender.

     

    SECTION
3.7  No
Bankruptcy Filing.  No Borrower Party (a) is a debtor in any
outstanding action or proceeding pursuant to any bankruptcy law or has, upon the
Effective Date, any current intent either to file a petition under any
bankruptcy law or to liquidate any or all or any portion of its assets or
property or (b) is aware that any other person has any current intent to file
against any Borrower Party a petition under any bankruptcy law.

     

    SECTION
3.8  No
Further Commitment for Additional Accommodations.  Each
Borrower Party expressly agrees and stipulates that, except as expressly
provided in this Agreement, no Lender has any obligation under any Loan Document
or any other agreement or by law, by equity or by any oral representation or
communication of any sort from Lender to refrain from exercising its rights
under any Loan Document, and each Borrower Party expressly agrees and stipulates
that Lender has no obligation under any Loan Document, this Agreement or any
other agreement or by law, by equity or by any oral representation or
communication of any sort to refrain from exercising its rights under this
Agreement, or to agree to any further forbearances or extensions of time to pay
the Debt, or provide any further accommodation to any Borrower Party under any
circumstances whatsoever.

     

    SECTION
3.9  Environmental
Matters.  No Borrower Party knows of any Hazardous Materials
affecting any of the Properties in any material way, and, to each Borrower
Party’s knowledge, each of the Properties is in material compliance with all
Environmental Laws.

     

    SECTION
3.10  Actions by Governmental
Authorities.  To the knowledge of each Borrower Party, there
have been no actions taken by any Governmental Authority which may materially
impair any Borrower Party’s ability to hold, operate or develop
any  individual Property.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    SECTION
3.11  Representations and
Warranties.  The representations and warranties of each
Borrower Party in each Loan Document to which it is a party are true and correct
in all material respects as if made on the Effective Date.

     

    ARTICLE
4

     

    CONDITIONS
TO TEMPORARY FORBEARANCE

     

    This
Agreement and the obligations of Lender to forbear as set forth in Article 5 shall be
subject to the satisfaction of the following conditions precedent:

     

    SECTION
4.1  Execution, Acknowledgment
and Reaffirmation.  Each Borrower Party shall execute and
deliver this Agreement to Lender and Lender shall execute and deliver this
Agreement to Borrower.

     

    SECTION
4.2  Correctness of
Warranties.  All representations and warranties contained
herein or otherwise made by a Borrower Party in connection herewith shall be
true, correct and complete in all material respects.

     

    ARTICLE
5

     

    FORBEARANCE

     

    SECTION
5.1  Forbearance
Period.  Lender will forbear from taking any Enforcement Action
in connection with the Maturity Event from the date hereof until the Forbearance
Termination Time (the “Forbearance
Period”).

     

    SECTION
5.2  Fees
and Expenses.  All fees, costs, expenses, distributions and
advances incurred by Lender in connection with or furtherance of the
transactions contemplated under this Agreement, including, without limitation,
attorneys’ fees, expenses and distributions shall be paid promptly Borrower to
Lender.

     

    SECTION
5.3  Enforcement Actions After
Forbearance Period.  Each Borrower Party acknowledges and
agrees that the provisions of this Agreement shall be effective solely for the
purposes set forth herein, shall be limited precisely as written and shall not
be deemed to waive any Default or Event of Default (including the Maturity
Event) or otherwise prejudice any right or remedy which Lender may now have or
has in the future under or in connection with any Loan Document.  Each
Borrower Party further acknowledges and agrees that, upon the occurrence of the
Forbearance Termination Time, the agreement of Lender to forbear from taking any
Enforcement Action in respect of the Maturity Event shall cease and be of no
further force or effect, and Lender shall be entitled to immediately take such
Enforcement Actions under the Loan Agreement, the other Loan Documents or
applicable law in respect of the Maturity Event or any other Event of Default
then existing as such Lender may determine in its sole and absolute discretion,
all without further notice or demand.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    ARTICLE
6

     

    COVENANTS

     

    SECTION
6.1  Covenants.

     

    (a)           Delivery of Information;
Reporting.  Borrower Parties shall use best efforts to deliver
to the Lender any materials and information reasonably requested by the Lender
within a reasonable time after receipt by Borrower Parties of such request to
the extent such materials or information are in the actual possession of, or
readily available to, Borrower Parties.

     

    (b)           Interest
Rate.  Notwithstanding the agreement of Lender under this
Agreement to forebear from the exercise of the other rights and remedies such
Lender may have, interest on the outstanding principal amount of the Loan and
any unpaid interest thereon shall accrue at the rate of LIBOR plus 8.75% but
during the Forbearance Period, Lender shall accept payment of interest at the
rate of LIBOR plus 5.75%, and the difference between such amounts shall accrue
and be added to the outstanding principal balance of the Loan.  LIBOR
as used herein shall be the greater of (a) 2% or (b) the meaning given to LIBOR
in the Loan Agreement.  Notwithstanding the Interest Period and
Payment Date, each as defined in the Note, (i) interest shall accrue at the
above described rate for the interest period commencing on March 6th, 2010 and
ending on (and including) April 5, 2010, (ii) the next Payment Date shall be
April 5, 2010.  Interest shall be calculated on the basis of a 360 day
year.  Interest due and payable under the Note up to and including
March 5, 2010, will be advanced from the Interest Reserve Account on the March
5, 2010 and added to the outstanding principal balance of the Loan.

     

    (c)           Operate in Ordinary
Course.  Each Borrower Party shall operate its business in the
ordinary course consistent with prudent business practices for a company
similarly situated in the industry in which such Borrower Party conducts its
business.

     

    ARTICLE
7

     

    MISCELLANEOUS

     

    SECTION
7.1  Addresses for Notices,
Etc.  All demands, notices and communications hereunder shall
be in writing and shall be deemed to have been duly given if delivered in the
manner required by each Loan Agreement.

     

    SECTION
7.2  Survival of Representations
and Warranties.  All representations, warranties, covenants and
agreements contained herein or made in writing by any Borrower Party in
connection herewith shall survive the execution and delivery of this Agreement
and be true and correct until all of the obligations hereunder and under all
Loan Documents have been satisfied in full pursuant to this
Agreement.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    SECTION
7.3  Headings.  The
headings in this Agreement are intended to be for convenience of reference only,
and shall not define or limit the scope, extent or intent or otherwise affect
the meaning of any portion hereof.

     

    SECTION
7.4  Further
Assurances.  Each Borrower Party and Lender shall, from time to
time, execute such additional documents as may reasonably be requested by Lender
or any Borrower Party or its respective counsel and take such other actions, to
carry out and fulfill the intent and purpose of this Agreement.  Each
Borrower Party and Lender hereby agrees to execute, acknowledge and deliver such
documents as reasonably requested by Lender or any Borrower Party for such
purposes and otherwise to cooperate in Borrower’s or Lender’s efforts in this
regard.

     

    SECTION
7.5  Construction.  Regardless
of which Party drafted this Agreement or any particular clause of this
Agreement, any construction of this Agreement or of any Loan Document shall be
made without any reference whatsoever as to which Party drafted, or insisted
upon a clause in, this Agreement.

     

    SECTION
7.6  Choice
of Law.  This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of New York without giving
effect to its conflict of laws principles.

     

    SECTION
7.7  Entire
Agreement.  The Loan Documents, this Agreement and the
documents executed pursuant hereto, embody the entire agreement and
understanding between Lender and each Borrower Party and supersede all prior
agreements and understandings between said parties relating to the subject
matter thereof.

     

    SECTION
7.8  Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed an
original document enforceable against the Party signatory thereto, but all of
which shall constitute a single document.

     

    SECTION
7.9  No
Waiver of Remedies.  No delay or failure of Lender to exercise
any right under any Loan Document or this Agreement shall impair such right or
be construed to be a waiver of such right or of any default or an acquiescence
therein, and any single or partial exercise of any such right shall not preclude
other or further exercise thereof or the exercise of any other
right.  No waiver, amendment or other variation of the terms,
conditions or provisions of any Loan Document or this Agreement shall be valid
unless made in writing and signed the parties hereto, and then only to the
extent specifically set forth in such writing.  All remedies contained
in any Loan Document or in this Agreement or afforded by law or by equity shall
be cumulative and all shall be available to each applicable Lender until each
Loan has been paid in full.

     

    SECTION
7.10  Counsel; Voluntary
Agreement.  Counsel for each Party hereto have reviewed and
advised their clients with respect to the terms and conditions of this Agreement
and such Party’s respective rights and remedies.  Counsel for each
Borrower Party have thoroughly and carefully read this Agreement and each Party
has entered into this Agreement freely and voluntarily, without duress or
coercion of any kind, and as a well reasoned exercise of their respective
business judgments.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    SECTION
7.11  Effectiveness.  This
Agreement, together with all of its provisions, stipulations and representations
(a) shall be effective, with respect to each Party, as of the date it is
executed and delivered by each Party, (b) shall only apply to the Maturity Event
and (c) shall not apply to any other Default or Event of Default that currently
exists or that may hereinafter exist.

     

    SECTION
7.12  No
Third Party Beneficiaries.  This Agreement is solely between
the Parties hereto and no person not a party to this Agreement shall have any
rights or privileges hereunder.

     

    SECTION
7.13  WAIVER
OF JURY TRIAL.  LENDER AND EACH BORROWER PARTY HEREBY AGREE NOT
TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY
RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR
HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT, THE LOAN DOCUMENTS, OR ANY CLAIM,
COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH.  THIS
WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY LENDER
AND EACH BORROWER PARTY, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE
AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE
ACCRUE.  LENDER AND EACH BORROWER PARTY ARE EACH HEREBY AUTHORIZED TO
FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS
WAIVER BY THE OTHER.  THIS PROVISION SHALL SURVIVE THE TERMINATION OF
THIS AGREEMENT.

     

    

    [SIGNATURES
FOLLOW ON NEXT PAGE]

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, each of the Parties signing below has caused this Agreement to
be executed, sealed and delivered, as applicable, on the day and year first
above written.

     

    
      
        
          
            	 	
                    LENDER:

                  
	 	 
      
	 	
                    FORTRESS
      CREDIT OPPORTUNITIES I 

                    LP
      (as assignee of Fortress Credit Corp.)

                  
	 	 
      
	 	
                    By:
      Fortress Credit Opportunities GP LLC,

                  
	 	
                    its
      general partner

                  
	 	 
      
	 	 
      
	 	
                    By:
      /s/ Constantine M. Dakolias

                  
	 	
                    Name:
      Constantine M. Dakolias

                  
	 	
                    Title:
      President

                  
	 	 
      
	 	
                    DRAWBRIDGE
      SPECIAL 

                    OPPORTUNITIES
      FUND LP, as Assignor

                  
	 	 
	 	
                    By:
      Drawbridge Special Opportunities GP 

                    LLC,
      its general partner

                  
	 	 
      
	 	
                    By:
      /s/ Constantine M. Dakolias

                  
	 	
                    Name:
      Constantine M. Dakolias

                  
	 	
                    Title:
      President

                  

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        	 	
                                BORROWER
      PARTIES:

                              
	 	 
	 	
                                SUMMIT
      HOTEL PROPERTIES, LLC,

                              
	 	
                                a
      South Dakota limited liability company

                              
	 	 
	 	
                                By: /s/
      Kerry W. Boekelheide

                              
	 	
                                Name:
      Kerry W. Boekelheide

                              
	 	
                                Title:
      Chief Executive Officer

                              
	 	 
      
	 	
                                SUMMIT
      HOSPITALITY I, LLC

                              
	 	 
      
	 	
                                By: /s/
      Kerry W. Boekelheide

                              
	 	
                                Name:
      Kerry W. Boekelheide

                              
	 	
                                Title: Chief
      Manager

                              
	 	 
	 	
                                SUMMIT
      HOSPITALITY II, LLC

                              
	 	 
      
	 	
                                By: /s/
      Kerry W. Boekelheide

                              
	 	
                                Name:
      Kerry W. Boekelheide

                              
	 	
                                Title: Chief
      Manager

                              
	 	 
	 	
                                SUMMIT
      HOSPITALITY III, LLC

                              
	 	 
      
	 	
                                By: /s/
      Kerry W. Boekelheide

                              
	 	
                                Name: Kerry
      W. Boekelheide

                              
	 	
                                Title: Chief
      Manager

                              
	 	 
	 	
                                SUMMIT
      HOSPITALITY IV, LLC

                              
	 	 
      
	 	
                                By:  /s/
      Kerry W. Boekelheide

                              
	 	
                                Name:
      Kerry W. Boekelheide

                              
	 	
                                Title: Chief
      Manager

                              
	 	 
	 	
                                SUMMIT
      HOSPITALITY V, LLC

                              
	 	 
      
	 	
                                By: /s/
      Kerry W. Boekelheide

                              
	 	
                                Name:
      Kerry W. Boekelheide

                              
	 	
                                Title: Chief
      Manager

                              

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            	 	
                    GUARANTOR:

                  
	 	 
	 	
                    The
      Summit Group, Inc., a South Dakota 

                    corporation

                  
	 	 
      
	 	
                    By:
      /s/ Kerry W. Boekelheide

                  
	 	
                    Name:
      Kerry W. Boekelheide

                  
	 	
                    Title:
      Chairman

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}]]