Document:

Exhibit 10.2

TICC CLO 2012-1 LLC

 

SUBORDINATED NOTES DUE 2023

 

SUBORDINATED NOTE PURCHASE AGREEMENT

 

By and Between

 

TICC CLO 2012-1 LLC

 

Issuer

 

and

 

TICC Capital Corp.

 

Purchaser

 

Dated as of February 25, 2013

 

    	-1-

    	 

    

 

TICC Capital Corp.

8 Sound Shore Drive, Suite 255

Greenwich, CT 06830

Attention: Saul Rosenthal

Facsimile No. (203) 983-5290

Email: srosenthal@ticc.com

 

Ladies and Gentlemen:

 

Section 1.               
Introduction. TICC CLO 2012-1 LLC, a Delaware limited liability company (the “Issuer”), has duly
authorized the issuance and sale of U.S.$20,000,000.00 principal amount of Subordinated Notes Due 2023 (the “Subordinated
Notes”) to TICC Capital Corp., a Maryland corporation (the “Purchaser”), pursuant to this Subordinated
Note Purchase Agreement (this “Agreement”).

 

The Subordinated Notes
will be issued pursuant to an Indenture, dated as of August 23, 2012 (the “Indenture”), by and among the Issuer
and The Bank of New York Mellon Trust Company, National Association, as trustee (in such capacity, the “Trustee”),
and payments and transfers with respect thereto will be subject to the terms of the Indenture. Capitalized terms used but not otherwise
defined herein shall have the respective meanings set forth in the Indenture, a copy of which has been previously distributed to
you. The Subordinated Notes purchased by you hereunder will be represented by Certificated Subordinated Notes in definitive, fully
registered form.

 

The Issuer hereby agrees
with the Purchaser as follows:

 

Section 2.               
Purchase, Sale, Payment and Delivery of the Subordinated Notes. On the basis of the representations, warranties
and agreements contained herein, but subject to the terms and conditions set forth herein, the Purchaser agrees to purchase from
the Issuer on the date hereof (the “Closing Date”), U.S.$20,000,000.00 principal amount of the Subordinated
Notes for an aggregate purchase price of U.S.$20,000,000.00 by wire transfer of immediately available funds by such time and to
such account as may be agreed to by the Issuer and the Purchaser.

 

Section 3.               
Representations, Warranties and Covenants of the Issuer. The Issuer represents, warrants, covenants and agrees with
the Purchaser that, as of the Closing Date:

 

(a)               
The Issuer is a company duly formed, validly existing and in good standing under the laws of the State of Delaware and in
each jurisdiction where the conduct of its business requires such license, qualification or good standing, except where the failure
to be so licensed or qualified or in good standing would not have a material adverse effect on the ownership or use of its assets,
the validity or enforceability of the Operative Documents (as defined herein) to which it is a party, or the ability of the Issuer
to perform its obligations hereunder or thereunder.

 

(b)              
The Issuer has the power and authority to execute and deliver the Operative Documents, as well as to carry out the terms
thereof in all material respects.

 

    	-2-

    	 

    
 

(c)               
The Subordinated Notes have been duly authorized by the Issuer and, when the Subordinated Notes are authenticated, delivered
and paid for pursuant to this Agreement, such Subordinated Notes will have been duly executed, authenticated, issued and delivered
and will constitute valid and legally binding obligations of the Issuer entitled to the benefits provided by the Indenture, and
enforceable in accordance with terms therein, subject, as to enforcement, to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors rights in general, and except
as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity). When
executed and delivered by the Issuer, each of the Operative Documents will constitute the legal, valid and binding obligation of
the Issuer enforceable in accordance with its terms, subject, as to enforcement, to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors rights in general, and except
as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity).

 

(d)              
The execution and delivery by the Issuer of, and the performance by the Issuer of its obligations under, the Operative Documents
will not contravene any provision of applicable law or any agreement or other instrument binding upon the Issuer that is material
to the Issuer, or any judgment, order or decree of any governmental body, agency or court having jurisdiction over the Issuer,
and no consent, approval, authorization or order of, or qualification with, any governmental body or agency is required for the
performance by the Issuer of its obligations under the Operative Documents, except such as may be required under state securities
or blue sky laws in any jurisdiction in connection with the purchase and resale of the Subordinated Notes by the Purchaser and
such other approvals as have been obtained and are in full force and effect.

 

(e)               
Assuming that the representations, warranties and covenants of the Purchaser contained in this Agreement are true and correct
in all material respects and have been and will be complied with in all material respects and that the Subordinated Notes are offered
and sold in accordance with the supplemental offering circular, dated January 2, 2013, relating to the offering of the Subordinated
Notes (the “Offering Circular”), no registration of the Subordinated Notes under the Securities Act is required
for the offer, sale and delivery of the Subordinated Notes in the manner contemplated by this Agreement and the Indenture.

 

(f)               
All of the representations and warranties made by the Issuer pursuant to the Indenture are true and correct in all material
respects as of the Closing Date.

 

Section 4.               
Representations, Warranties and Covenants of the Purchaser. The Purchaser represents and warrants to, and agrees
with the Issuer, as of the Closing Date, that:

 

(a)               
The Purchaser has the requisite power and authority to execute and deliver this Agreement, and to purchase the Subordinated
Notes in accordance herewith, has duly authorized such execution, delivery and purchase, and has duly executed and delivered this
Agreement. The execution and delivery of this Agreement, and the purchase of the Subordinated Notes in accordance herewith by the
Purchaser do not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default
under, any agreement or instrument to which the Purchaser is a party or by which the Purchaser is bound or to which any of the
property or assets of the Purchaser is or are subject or (ii) result in any violation of the provisions of any of the organizational
documents of the Purchaser or (iii) result in any violation of any statute, order, rule or regulation of any court or governmental
agency or body having jurisdiction over the Purchaser or its property or assets. No consent, approval, authorization, order, registration
or qualification of or with any such court or governmental agency or body is required for the execution or delivery of this Agreement
by the Purchaser. This Agreement constitutes the legal, valid and binding obligation of the Purchaser, enforceable against the
Purchaser in accordance with its terms, subject, as to enforcement, to applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws now or hereafter in effect affecting the enforcement of creditors rights in general, and except as such enforceability
may be limited by general principles of equity (whether considered in a suit at law or in equity).

 

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(b)              
The Purchaser has completed and furnished herewith (i) a purchaser representation letter for Subordinated Notes in the form
of Exhibit A attached hereto (the “Purchaser Certificate”) and (ii) a Subordinated Note ERISA certificate
in the form of Exhibit B attached hereto (the “ERISA Certificate”).

 

Section 5.               
Conditions Precedent. The performance by the parties hereto of their respective obligations hereunder are (unless
waived in writing by the Purchaser in respect of clause (a) or (d) or waived in writing by the Issuer in respect of clause (b))
subject to the satisfaction of the following conditions:

 

(a)               
all representations and warranties made by the Issuer herein are, as of the Closing Date, true and correct in all material
respects;

 

(b)              
all representations and warranties made by the Purchaser herein are, as of the Closing Date, true and correct in all material
respects;

 

(c)               
the Purchaser shall have tendered payment of the purchase price for the Subordinated Notes in accordance with Section 2;

 

(d)              
on the Closing Date, each of the following documents (the “Operative Documents”) shall have been duly
authorized, executed and delivered by the parties thereto, shall be in full force and effect and no default shall exist thereunder:

 

(i)                
this Agreement; and

 

(ii)              
the Subordinated Notes.

 

Section 6.               
Bankruptcy Non-Petition; Limited Recourse. Notwithstanding any other provision of this Agreement, the Purchaser
may not, prior to the date that is one year and one day or, if longer, the preference period then in effect after the payment
in full of all Notes (and any other debt obligations of the Issuer that have been rated upon issuance by any rating agency at
the request of the Issuer), institute against, or join any other Person in instituting against, the Issuer any bankruptcy, reorganization,
arrangement, insolvency, moratorium or liquidation proceedings, or other proceedings under U.S. federal or state bankruptcy laws,
or similar laws of any jurisdiction. This Section 6 shall survive any termination of this Agreement. In addition, the obligations
of the Issuer under this Agreement (including any claims arising under this Agreement) shall be limited in recourse to the proceeds
of the Assets (as defined in and applied in accordance with the Indenture) and to the extent such proceeds are insufficient to
meet the obligations of the Issuer under this Agreement in full, the Issuer shall have no further liability and any outstanding
obligations of the Issuer and all claims against the Issuer shall be extinguished. Following the Closing Date, all payments under
this Agreement are subject to the Priority of Payments as specified in the Indenture. The obligations of the Issuer under this
Agreement shall be solely the corporate obligations of the Issuer and the Purchaser shall not have any recourse to any of the
Officer, director, manager, partner, member, employee, shareholder, authorized Person or incorporator of the Issuer or their respective
Affiliates with respect to any claims, losses, damages, liabilities, indemnities or other obligations in connection with the transactions
contemplated hereby.

 

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Section 7.               
Notice. All communications provided for or permitted hereunder shall be in writing and shall be deemed to have been
duly given if personally delivered, sent by overnight courier or mailed by registered mail, postage prepaid and return receipt
requested, or transmitted by telex, telegraph or telecopier and confirmed by a similar mailed writing, if to the Purchaser, addressed
to such Purchaser at the address set forth on Schedule 1 hereto, or to such other address as such Purchaser may designate
in writing to the Issuer, and if to the Issuer, addressed to the Issuer at the address set forth on Schedule 1 hereto,
or to such other address as the Issuer may designate in writing to the Purchaser.

 

Section 8.               
Successors. This Agreement (a) shall inure to the benefit of and shall be binding upon the Issuer, the Purchaser
and their respective successors and assigns; and (b) shall inure to the benefit of the Issuer, the Purchaser, the Trustee and
the Collateral Manager. All persons referred to (other than the Issuer and the Purchaser) (A) in clause (b) of the preceding sentence
are intended as, and shall be, third-party beneficiaries of the Issuer under this Agreement, (B) in clause (a) are intended to
be third party beneficiaries of the Purchaser and (C) in either case as such, shall be entitled to enforce their rights, remedies
and claims hereunder directly against the other party as though such persons were signatories of this Agreement, but shall not
be deemed to have, or to have assumed, any obligation or liability hereunder. Nothing expressed herein is intended or shall be
construed to give any person (other than the persons referred to in the preceding two sentences, in each case, to the extent provided
therein or elsewhere in this Agreement) any legal or equitable right, remedy or claim under or in respect of this Agreement or
any other agreement or instrument or against any party hereto or thereto or beneficiary hereof or thereof.

 

Section 9.               
Applicable Law; Submission to Jurisdiction, Etc.

 

(a)               
This Agreement shall be governed by, and construed in accordance with, and all matters arising out of or in any way related
to this Agreement (whether in contract, tort or otherwise), shall be governed by the law of the State of New York.

 

(b)              
The Purchaser hereby irrevocably submits to the nonexclusive jurisdiction of any New York State or federal court sitting
in the Borough of Manhattan in The City of New York in any action or proceeding arising out of or relating to this Agreement, and
the Purchaser hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in
such New York State or federal court. The Purchaser hereby irrevocably waives, to the fullest extent that it may legally do so,
the defense of an inconvenient forum to the maintenance of such action or proceeding. The Purchaser irrevocably consents to the
service of any and all process in any action or proceeding by the mailing or delivery of copies of such process to it at the Purchaser’s
address set forth on Schedule 1 hereto. The Purchaser 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.

 

    	-5-

    	 

    
 

(c)               
EACH OF THE ISSUER AND THE PURCHASER IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 10.           
Amendments. No amendment, modification, supplement, or waiver of any provision of this Agreement shall in any event
be effective unless the same shall be in writing and signed by the Issuer and the Purchaser.

 

Section 11.           
Severability of Provisions. Any covenant, provision, agreement or term of this Agreement that is prohibited or is
held to be void or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability, without in any way invalidating, affecting or impairing the remaining provisions hereof.

 

Section 12.           
Counterparts. This Agreement may be executed in any number of counterparts, and by each party hereto in several
counterparts, each of which counterpart when so executed shall be deemed to be an original, and all such counterparts together
shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page of this Agreement by
telecopier shall be as effective as delivery of a manually executed counterpart of this Agreement.

 

    	-6-

    	 

    

 

If the foregoing is
in accordance with your understanding of our agreement, kindly sign and return to us the enclosed duplicate hereof, whereupon this
Agreement will became a binding agreement between the undersigned in accordance with its terms.

 

Very truly yours,

  

 

TICC CLO 2012-1 LLC,
as Issuer

 

 

By: TICC Capital Corp., its
designated manager

 

 

		By	___________________________________

Name:

Title:

 

 

    	S-1

    	 

    

 

The foregoing Subordinated Note Purchase Agreement is hereby
confirmed and accepted:

 

 

ticc
capital corp.

 

  

By: _____________________________

Name:

Title:

			
			

 

    	S-2

    	 

    

SCHEDULE 1

 

Purchaser

 

TICC Capital Corp.

8 Sound Shore Drive, Suite 255

Greenwich, CT 06830

Telephone No.: (203) 983-5275

Facsimile No.: (203) 983-5290

Attention: Saul Rosenthal

 

Issuer

 

TICC CLO 2012-1 LLC

8 Sound Shore Drive, Suite 255

Greenwich, CT 06830

Telephone No.: (203) 983-5275

Facsimile No.: (203) 983-5290

Attention: Saul Rosenthal

 

    	Sch. I-1a50563878ex10_7.htm

Exhibit 10.7

 

 

ACCESSION AGREEMENT

 

Dated as of November 6, 2012

 

Reference is made to that certain Credit Agreement dated as of April 29, 2011 (as amended to date and as otherwise amended, amended and restated, supplemented or modified from time to time, the “Credit Agreement”; capitalized terms not otherwise defined herein shall have their respective meanings set forth in the Credit Agreement), by and between Summit Hotel OP, LP (“Borrower”), Summit Hotel Properties, Inc., the Subsidiary Guarantors party thereto, Deutsche Bank AG New York Branch, as administrative agent for the Lender Parties (in such capacity, “Administrative Agent”), the Lender Parties identified therein and the Arranger party thereto.  Each of the Administrative Agent, Borrower and Citibank, N.A., (“Citi”) desires that Citi become a Lender pursuant to the terms and conditions set forth below.

 

Citi (in its capacity as a Lender Party, the “Acceding Lender”) agrees as follows:

 

1.  Citi proposes to become an Acceding Lender pursuant to Section 2.17 of the Credit Agreement having a Revolving Credit Commitment of $25,000,000, and hereby agrees with the Administrative Agent and the Borrowers that it shall become a Lender for all purposes of the Credit Agreement on the Effective Date (as defined below).

 

2.  Acceding Lender (a) represents and warrants that it is legally authorized to enter into this Accession Agreement; (b) confirms that it has received a copy of the Credit Agreement, together with copies of the financial statements referred to in Section 4.01 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Accession Agreement; (c) agrees that it will, independently and without reliance upon the Administrative Agent or any other Lender Party and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (d) confirms that it qualifies as an Eligible Assignee; (e) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Loan Documents as are delegated to the Administrative Agent by the terms thereof, together with such powers and discretion as are reasonably incidental thereto; (f) agrees that it will perform in accordance with their terms all of the obligations that by the terms of the Credit Agreement are required to be performed by it as a Lender Party; (g) specifies as its Applicable Lending Offices the offices set forth on Exhibit A; and (h) attaches on Exhibit B any U.S. Internal Revenue Service forms required under Section 2.12 of the Credit Agreement.

 

3.  Following the execution of this Accession Agreement, it will be delivered to the Administrative Agent for acceptance and recording by the Administrative Agent in the Register.  The effective date for this Accession Agreement (the “Effective Date”) shall be the later of (a) the date first set forth above, and (b) the date on which the Administrative Agent shall have received the executed certificate of the Borrower pursuant to Sections 2.17(d)(iii) and 3.02 of the Credit Agreement, which date shall constitute the Increase Date for purposes of Section 2.17 of the Credit Agreement.

 

4.  Upon satisfaction of the applicable conditions set forth in Section 2.17 of the Credit Agreement and upon such acceptance and recording by the Administrative Agent, as of the Effective Date, the Acceding Lender (i) shall be a party to the Credit Agreement, (ii) shall have all of the rights and obligations of a Lender under the Credit Agreement and (iii) shall have a Revolving Credit Commitment of $25,000,000.

 

  

  

  

 

5.  This Accession Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

6.  This Accession Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Accession Agreement by telecopier or e-mail (which e-mail shall include an attachment in .PDF or similar electronic format containing the legible signature of the person executing this Accession Agreement) shall be effective as delivery of an original executed counterpart of this Accession Agreement.

 

[Balance of page intentionally left blank]

 

 

 

 

 

  

2

  

 

IN WITNESS WHEREOF, each of the undersigned has caused this Accession Agreement to be executed by its officers thereunto duly authorized as of the Effective Date.

 

 

	 	 
ACCEDING LENDER:

	 	 	 
	 	 
CITIBANK, N.A.

	 	 	 
	 	 	 
	 	 	 
	 	By:	/s/ John C. Rowland
	 	 	Name: John C. Rowland
	 	 	Title: Vice President

 

[Signatures continued on next page]

 

 

  

S-1

  

 

Accepted and Approved as of November 6, 2012:

ADMINISTRATIVE AGENT:

DEUTSCHE BANK AG NEW YORK BRANCH,

as Administrative Agent

 

	By	/s/ Mary Brundage
	 	Name:  Mary Brundage
	 	Title:  Director
	 	 
	 	 
	By	/s/ James Rolison
	 	Name:  James Rolison
	 	Title:  Managing Director

 

 

 

BORROWER:

SUMMIT HOTEL OP, LP,

a Delaware limited partnership

 

	By:	SUMMIT HOTEL GP, LLC,
	 	a Delaware limited liability company,
	 	its general partner
	 	 	 	 
	 	By: 	SUMMIT HOTEL PROPERTIES, INC.,
	 	 	a Maryland corporation,
	 	 	its sole member
	 	 	 	 
	 	 	By:	/s/ Christopher Eng
	 	 	 	Name:  Christopher Eng
	 	 	 	Title:    Secretary

 

  

S-2

  

 

EXHIBIT A

Acceding Lender Applicable Lending Offices:

1615 Brett Road OPS III

New Castle, DE 19720

Phone:  302-894-6052

Fax:  212-994-0847

Email:  GLOriginationOps@citi.com

Attn:   Citi Loan Operations

  

A-1

  

 

EXHIBIT B

None.

 

 

 

 

 

 

 

B-1

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