Document:

mm01-1014_8ke101.htm

 

 

EXHIBIT 10.1

AMENDMENT NO. 2 TO

 

WMI LIQUIDATING TRUST AGREEMENT

 

AMENDMENT NO. 2 TO WMI LIQUIDATING TRUST AGREEMENT, dated as of January 7, 2014 and effective as of such date (the “Amendment”), is made by William C. Kosturos, as liquidating trustee (together with any successor or additional trustee appointed under the terms hereof, the “Liquidating Trustee”) of WMI Liquidating Trust (the “Liquidating Trust”) and consented to by each voting member of the Trust Advisory Board of the Liquidating Trust.

 

BACKGROUND

 

A.           The Liquidating Trust was formed by Washington Mutual, Inc. (“WMI”) and WMI Investment Corp. (“WMI Investment” and, together with WMI, the “Debtors”), as debtors and debtors in possession, the Liquidating Trustee and CSC Trust Company of Delaware as the Delaware resident trustee (together with any successor Delaware resident trustee appointed under the terms hereof, the “Resident Trustee” and collectively with the Liquidating Trustee, the “Trustees”) pursuant to the terms and conditions of that certain Seventh Amended Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the United States Bankruptcy Code, dated December 12, 2011, as confirmed (including all exhibits thereto, as the same may be further amended, modified, or supplemented from time to time, the “Plan”), filed in the Debtors’ chapter 11 cases.

 

B.           The Liquidating Trust is governed by that certain Liquidating Trust Agreement, dated as of March 6, 2012, among the Debtors and the Trustees (as amended by Amendment No.1 to the WMI Liquidating Trust Agreement dated as of August 1, 2012, the “Liquidating Trust Agreement”).  Pursuant to the Liquidating Trust Agreement, there has been established a Trust Advisory Board with the duties and obligations set forth in the Liquidating Trust Agreement.  Section 9.9 of the Liquidating Trust Agreement provides that, subject to certain exceptions not applicable here, any provision of the Liquidating Trust Agreement may be amended or waived by the Liquidating Trustee with the consent of all voting members of the Trust Advisory Board.

 

C.           The Liquidating Trustee has determined that it is advisable that the Liquidating Trust Agreement be amended as provided for herein and each member of the Trust Advisory Board has consented to such amendments and has executed this amendment with the intention of evidencing such consent.

 

NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein, the Liquidating Trust Agreement is hereby amended as follows:

 

 

 

  

  

  

 

 

 

AMENDMENT

 

1. Transfer of Liquidating Trust Assets.  Section 1.3 of the Liquidating Trust Agreement shall be amended and restated to read in full as follows:

 

“On the Effective Date, the Debtors shall transfer, for the sole benefit of the Liquidating Trust Beneficiaries, pursuant to Bankruptcy Code sections 1123(a)(5)(B) and 1123(b)(3)(B) and in accordance with the Plan and the Confirmation Order, the Liquidating Trust Assets to the Liquidating Trust, free and clear of any and all liens, claims, encumbrances and interests (legal, beneficial or otherwise) of all other entities to the maximum extent contemplated by and permissible under Bankruptcy Code section 1141(c); provided, however, that the Liquidating Trust Assets may be transferred subject to certain liabilities, as provided in the Plan, Confirmation Order or as otherwise provided herein.  On the Effective Date, there shall be set aside out of the Liquidating Trust Assets the amount of Cash that was reasonably determined by the Debtors and the Creditors’ Committee following consultation with the Equity Committee prior to the Effective Date to be necessary to fund the activities of the Liquidating Trust, which amount shall be Sixty Million Dollars ($60,000,000.00) (the “Funding”); provided, however, that the Funding may be increased from time to time during the term of the Liquidating Trust upon the request of the Liquidating Trustee and the approval of a Supermajority of the Trust Advisory Board.  A “Supermajority” shall mean the affirmative vote of seven (7) of the nine (9) members of the Trust Advisory Board (excluding the Holdco Member); provided, however, that if at any time the number of members of the Trust Advisory Board is (a) less than nine (9) but greater than (4), a “Supermajority” shall mean the affirmative vote of all but two (2) of the then current members of the Trust Advisory Board or (b) equal to or less than four (4), a “Supermajority” shall mean the affirmative vote of at least 75% of the then current members of the Trust Advisory Board.  Twenty Million Dollars ($20,000,000.00) of the Funding (the “Litigation Funding”) shall be allocated to the Litigation Subcommittee, with both the first Ten Million Dollars ($10,000,000.00) of the Litigation Funding (the “First Tranche”) and the second Ten Million Dollars ($10,000,000.00) of the Litigation Funding (the “Second Tranche”) to be used for the prosecution of the Recovery Claims (as defined herein); provided, however, that, prior to the allocation and use of any portion of the Second Tranche, the Litigation Subcommittee shall obtain the approval of the Trust Advisory Board as to the reasonable expenditure of such funds; provided, further, that the Litigation Funding may be increased during the term of the Liquidating Trust upon the request of the Litigation Subcommittee and the approval of a Supermajority of the Trust Advisory Board, which approval may be granted or withheld by the Trust Advisory Board in its sole and absolute discretion, and provided that any additional 

 

 

  

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Litigation Funding that is approved shall be deducted from any remaining portion of the Administrative Funding (as defined herein); provided, further, that nothing herein shall preclude the Trust Advisory Board or the Litigation Subcommittee from seeking additional financing from sources other than the Liquidating Trust Assets in the discharge of their fiduciary duties; provided, further, that any portion of the Funding, including the Litigation Funding, that is not used to fund the activities of the Liquidating Trust shall be distributed in accordance with Section 4.3 hereof.  At any time after the date hereof, the Litigation Subcommittee may, by notice in writing to the Trust Advisory Board, authorize the release and distribution in accordance with Section 4.3 hereof of any remaining unspent portion of the First Tranche and/or the Second Tranche (collectively, the “Released Litigation Funding Amount”).  Following such release and distribution, the Litigation Subcommittee may, by notice in writing to the Trust Advisory Board, direct the transfer of an amount equal to some or all of the Released Litigation Funding Amount (the “Reallocated Amount”) from the Administrative Funding to the Litigation Funding; provided, however, an amount equal to or greater the Reallocated Amount remains in the Administrative Funding at the time of such notice; provided, further, that, prior to the allocation and use of any portion of the Second Tranche, the Litigation Subcommittee shall obtain the approval of the Trust Advisory Board as to the reasonable expenditure of such funds.  The transfer of the Liquidating Trust Assets shall be exempt from any stamp, real estate transfer, mortgage reporting, sales, use or other similar Tax, pursuant to section 1146(a) of the Bankruptcy Code.  Upon delivery of all Liquidating Trust Assets to the Liquidating Trust, the Debtors shall be discharged and released from all liability with respect to the delivery of such distributions, and exculpated as provided in Section 41.8 of the Plan.  In connection with the receipt of the Liquidating Trust Assets, the Liquidating Trust shall acquire and assume all of WMI’s rights and obligations pursuant to Section 2.4 of the Global Settlement Agreement, and WMI shall have no further liability or obligations thereunder.  The Liquidating Trust Assets and all other property held from time to time by the Liquidating Trust under this Trust Agreement and any earnings, including without limitation, interest, on any of the foregoing are to be applied by the Liquidating Trustee in accordance with the terms hereof, the Plan and the Confirmation Order for the benefit of the Liquidating Trust Beneficiaries, and for no other party, subject to the further covenants, conditions and terms hereinafter set forth.”

 

2. Establishment of Trust Advisory Board.  Section 6.4(f)(iv) of the Liquidating Trust Agreement shall be amended and restated to read in full as follows:

 

“(f)(iv)  subject to Section 6.4(d) and Section 6.4(e), in the event of a vacancy in a member’s position (whether by removal, death or 

 

 

  

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resignation), a new member may be appointed, (A) in the case of a CC Member (other than the WF Member so long as Wells Fargo Bank N.A. has not relinquished its right to name a member), by (i) the Creditors’ Committee, as notified in writing to the Trust Advisory Board and the Liquidating Trustee within ten (10) Business Days, or (ii) if the Creditors’ Committee has been dissolved, the CC Members, as notified in writing to the Trust Advisory Board and the Liquidating Trustee within ten (10) Business Days; or (iii) if there are no remaining CC Members, the Liquidating Trustee, as notified in writing to the Trust Advisory Board within ten (10) Business Days; (B) in the case of a WF Member, by Wells Fargo Bank N.A. (unless Wells Fargo Bank N.A. has relinquished its right to name a member, in which case a new member may be appointed as provided in clause (A) above) as notified in writing to the Trust Advisory Board and the Liquidating Trustee within ten (10) Business Days; (C) in the case of an EC Member (other than the TPS Member so long as the TPS Funds have not relinquished their right to name a member, or the PPMA Member so long as PPMA has not relinquished its right to name a member), by the other EC Members; (D) in the case of a TPS Member, by the TPS Funds (unless the TPS Funds have relinquished their right to name a member, in which case a new member may be appointed as provided in clause (C) above) as notified in writing to the Trust Advisory Board and the Liquidating Trustee within ten (10) Business Days; (E) in the case of a PPMA Member, by PPM America Inc. (unless PPM America has relinquished its right to name a member, in which case a new member may be appointed as provided in clause (C) above) as notified in writing to the Trust Advisory Board and the Liquidating Trustee within ten (10) Business Days; or (F) in the case of the CC-EC Member, by (i) the Creditors’ Committee subject to the approval of the EC members (such approval not to be unreasonably withheld), as notified in writing to the Trust Advisory Board and the Liquidating Trustee within ten (10) Business Days, or (ii) if the Creditors’ Committee has been dissolved, the CC Members subject to the approval of the EC Members (such approval not to be unreasonably withheld), as notified in writing to the Trust Advisory Board and the Liquidating Trustee within ten (10) Business Days, or (iii) if there are no remaining CC Members, the Liquidating Trustee subject to the approval of the EC Members (such approval not to be unreasonably withheld), as notified in writing to the Trust Advisory Board within ten (10) Business Days.  In each case, the appointment of a successor member of the Trust Advisory Board (including any appointment pursuant to Section 6.4(d) and Section 6.4(e)) shall be evidenced by the filing with the Bankruptcy Court by the Liquidating Trustee of a notice of appointment, which notice shall include the name, address, and telephone number of the successor member of the Trust Advisory Board; and”.

 

 

 

  

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3. The Litigation Subcommittee.

 

	
a.  

	
Section 6.5(b) of the Liquidating Trust Agreement shall be amended by adding the following to the end of the provision:

 

“In the event of a vacancy on the Litigation Subcommittee other than by operation of Section 6.4(c), 6.4(d), or 6.4(e) (whether by removal, death or resignation), a new member may be appointed, (A) in the case of a CC Subcommittee Member, by the other CC Members of the Trust Advisory Board, or if there are no remaining CC Members, the Liquidating Trustee, as notified in writing to the Trust Advisory Board within ten (10) Business Days; (B) in the case of an EC Subcommittee Member, by the other EC Members of the Trust Advisory Board; or (C) in the case of the TPS Member, by the successor TPS Member, if any, appointed by the TPS Funds (unless the TPS Funds have relinquished their right to name a member, in which case a replacement may be appointed by the other EC Members of the Trust Advisory Board).”

 

	
b.  

	
Section 6.5(c) of the Liquidating Trust Agreement shall be amended by adding the following to the end of the second last sentence of this provision:

 

“(excluding the allocation and use of the Reallocated Amount, which shall be governed by Section 1.3)”.

 

4. Agents, Employees and Professionals.  The second sentence of Section 6.8(b) of the Liquidating Trust Agreement shall be amended by adding the word “Section” before “6.11(c)”.

 

5. Notices.  Section 9.4(ii) shall be amended by replacing “if to members of the Trust Advisory Board, then to each of” with “if to members of the Trust Advisory Board, then to each of the following for so long as each is a member of the Trust Advisory Board”.

 

6. Annex B.  Annex B to the Liquidating Trust Agreement shall be amended by adding the following to the end of Annex B:

 

“Incentive compensation that has accrued but has not yet been paid at the time a Trust Advisory Board member resigns shall be paid to such member rather than to such member’s successor, notwithstanding any other provision of the Trust Agreement.  In the event that a Trust Advisory Board member resigns pursuant to the terms of subsections 6.4(c), 6.4(d), 

 

 

  

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or 6.4(e) upon the payment of a distribution, such distribution shall be included in the calculation of any incentive compensation that is payable to such resigning Trust Advisory Board member.”

 

7. Except as expressly provided for herein, the Liquidating Trust Agreement shall continue in full force and effect and shall not be amended or modified by the execution of this Amendment.

 

[Remainder of Page Blank — Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, the Liquidating Trustee has executed this Amendment No. 2 to the Liquidating Trust Agreement.

 

	  	
LIQUIDATING TRUSTEE

	  	
By:

	   /s/  William C. Kosturos
	  	  	
Name:

	
William C. Kosturos

 

The undersigned Voting Members of the Trust Advisory Board hereby consent to the Amendments to the Liquidating Trust Agreement contained herein.

 

	  	  
	  	  /s/  Arnold Kastenbaum
	  	
Arnold Kastenbaum

	  	  
	 	  /s/  Marc S. Kirschner
	  	
Marc S. Kirschner

	 	 
	  	   /s/  Michael Willingham
	  	
Michael Willingham

	  	  
	 	  /s/  Hon. Douglas Southard
	  	
Hon. Douglas Southard

	  	  
	 	  /s/  Joe McInnis
	  	
Joe McInnis

	  	  
	 	  /s/  Matthew Cantor
	  	
Matthew Cantor

	  	  
	 	  /s/  Thomas Korsman
	  	
Thomas Korsman

 

 

7Exhibit 10.1

 

PROMISSORY NOTE

 

	
Not   to Exceed $200,000
    	
November 19, 2013
    

 

FOR VALUE RECEIVED, the undersigned Boulevard Acquisition Corp., a Delaware corporation (“Maker” or the “Company”), whose address is 399 Park Avenue, 6th Floor, New York, NY 10022, hereby unconditionally promises to pay to the order of Boulevard Acquisition Sponsor, LLC, a Delaware limited liability company (“Payee”), at Payee’s office at 399 Park Avenue, 6th Floor, New York, NY 10022 (or such other address specified by Payee to Maker), the sum of TWO HUNDRED THOUSAND DOLLARS ($200,000) or such lesser amount as shall have been advanced by Payee to Maker and shall remain unpaid under this note (this “Note”), in legal and lawful money of the United States of America.

 

Payee may make advances to Maker from time to time under this Note; provided, however, that notwithstanding anything to the contrary herein, at no time shall the aggregate of all advances and re-advances outstanding under this Note exceed $200,000.

 

This is a non-interest bearing Note.

 

The entire unpaid principal balance of this Note shall be due and payable upon the earlier of June 1, 2014 or the consummation of a public offering of the Company’s securities.

 

If payment of this Note or any installment of this Note is not made when due, the entire indebtedness hereunder, at the option of Payee, shall immediately become due and payable, and Payee shall be entitled to pursue any or all remedies to which Payee is entitled hereunder, or at law or in equity.

 

This Note may be prepaid, in whole or in part, without penalty.  This Note may not be changed, amended or modified except in a writing expressly intended for such purpose and executed by the party against whom enforcement of the change, amendment or modification is sought.  The loan evidenced by this Note is made solely for business purposes.

 

THIS NOTE IS BEING EXECUTED AND DELIVERED, AND IS INTENDED TO BE PERFORMED, IN THE STATE OF NEW YORK.  EXCEPT TO THE EXTENT THAT THE LAWS OF THE UNITED STATES MAY APPLY TO THE TERMS HEREOF, THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE VALIDITY, CONSTRUCTION, ENFORCEMENT AND INTERPRETATION OF THIS NOTE.  IN THE EVENT OF A DISPUTE INVOLVING THIS NOTE OR ANY OTHER INSTRUMENTS EXECUTED IN CONNECTION HEREWITH, THE UNDERSIGNED PARTIES IRREVOCABLY AGREE THAT VENUE FOR SUCH DISPUTE SHALL LIE IN ANY COURT OF COMPETENT JURISDICTION IN THE STATE OF NEW YORK.

 

Service of any notice by Maker to Payee or by Payee to Maker, shall be mailed, postage prepaid by certified United States mail, return receipt requested, at the address for such party set forth in this Note, or at such subsequent address provided to the other party hereto in the manner set forth in this paragraph for all notices.  Any such notice shall be deemed given three (3) days after deposit thereof in an official depository under the care and custody of the United States Postal Service.

 

 

Should the indebtedness represented by this Note or any part thereof be collected at law or in equity or through any bankruptcy, receivership, probate or other court proceedings or if this Note is placed in the hands of attorneys for collection after default, the undersigned and all endorsers, guarantors and sureties of this Note jointly and severally agree to pay to the holder of this Note, in addition to the principal and interest due and payable hereon, reasonable attorneys’ and collection fees.

 

The undersigned and all endorsers, guarantors and sureties of this Note and all other persons liable or to become liable on this Note severally waive presentment for payment, demand, notice of demand and of dishonor and nonpayment of this Note, notice of intention to accelerate the maturity of this Note, notice of acceleration, protest and notice of protest, diligence in collecting, and the bringing of suit against any other party, and agree to all renewals, extensions, modifications, partial payments, releases or substitutions of security, in whole or in part, with or without notice, before or after maturity.

 

The undersigned hereby expressly and unconditionally waives, in connection with any suit, action or proceeding brought by the payee on this Note, any and every right it may have to (i) injunctive relief, (ii) a trial by jury, (iii) interpose any counterclaim therein and (iv) have the same consolidated with any other or separate suit, action or proceeding.  Nothing herein contained shall prevent or prohibit the undersigned from instituting or maintaining a separate action against payee with respect to any asserted claim.

 

Any provision contained in this Notes which is prohibited or unenforceable in any jurisdictions shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibitions or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

This Note represents the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.

 

[Signature page follows]

 

2

 

EXECUTED AND AGREED as of the date first above written.

 

	
 
    	
BOULEVARD   ACQUISITION CORP.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen S. Trevor
    
	
 
    	
 
    	
Name:
    	
Steven   S. Trevor
    
	
 
    	
 
    	
Title:
    	
President   and
    
	
 
    	
 
    	
 
    	
Chief   Executive Officer
    

 

[SIGNATURE PAGE TO PROMISSORY NOTE]

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