Document:

Exhibit 10.2

 

UNITED STATES DEPARTMENT OF THE TREASURY
 1500 PENNSYLVANIA AVENUE, NW
 WASHINGTON, D.C. 20220

 

July 14, 2011

Ladies and Gentlemen:

 

Reference is made to that certain Letter Agreement incorporating the Securities Purchase Agreement — Standard Terms (the “Securities Purchase Agreement”), dated as of the date set forth on Schedule A hereto, between the United States Department of the Treasury (the “Investor”) and the company set forth on Schedule A hereto (the “Company”).  Capitalized terms used but not defined herein shall have the meanings assigned to them in the Securities Purchase Agreement.  Pursuant to the Securities Purchase Agreement, at the Closing, the Company issued to the Investor the number of shares of the series of its preferred stock set forth on Schedule A hereto (the “Preferred Shares”) and a warrant to purchase the number of shares of its common stock set forth on Schedule A hereto (the “Warrant”).

 

In connection with the consummation of the repurchase (the “Repurchase”) by the Company from the Investor, on the date hereof, of the number of Preferred Shares listed on Schedule A hereto (the “Repurchased Preferred Shares”) as permitted by the Emergency Economic Stabilization Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009:

 

(a)                                  The Company hereby acknowledges receipt from the Investor of the share certificate(s) set forth on Schedule A hereto representing the Preferred Shares; and

 

(b)                                 The Investor hereby acknowledges receipt from the Company of a wire transfer to the account of the Investor set forth on Schedule A hereto in immediately available funds of the aggregate purchase price set forth on Schedule A hereto, representing payment in full for the Repurchased Preferred Shares at a price per share equal to the Liquidation Amount per share, together with any accrued and unpaid dividends to, but excluding, the date hereof.

 

The Investor and the Company hereby agree that, notwithstanding Section 4.4 of the Securities Purchase Agreement, immediately following consummation of the Repurchase, but subject to compliance with applicable securities laws, the Investor shall be permitted to Transfer all or a portion of the Warrant with respect to, and/or exercise the Warrant for, all or a portion of the number of shares of Common Stock issuable thereunder, at any time and without limitation, and Section 4.4 of the Securities Purchase Agreement shall be deemed to be amended in order to permit the foregoing.  The Company shall take all steps as may be reasonably requested by the Investor to facilitate any such Transfer.

 

In addition, the Company agrees that in the event it elects to repurchase the Warrant, it shall deliver to the Investor within 15 calendar days of the date hereof a notice of intent to repurchase the Warrant, which notice shall be in accordance with Section 4.9(b) of the Securities

 

Repurchase Letter Agreement

 

1

 

Purchase Agreement (the “Warrant Repurchase Notice”).  In the event the Company does not deliver the Warrant Repurchase Notice to the Investor within 15 calendar days of the date hereof, the Investor hereby provides notice, pursuant to Section 4.5(p) of the Securities Purchase Agreement, of its intention to sell the Warrant, such notice to be effective as of the first day following the end of such 15-day period.

 

In the event that the Company delivers a Warrant Repurchase Notice and the Company and the Investor fail to agree on the Fair Market Value of the Warrant pursuant to the procedures (including the Appraisal Procedure), and in accordance with the time periods, set forth in Section 4.9(c) of the Securities Purchase Agreement or the Company revokes the delivery of such Warrant Repurchase Notice, then the Investor hereby provides notice of its intention to sell the Warrant.

 

This letter agreement will be governed by and construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State.

 

This letter agreement may be executed in any number of separate counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts will together constitute the same agreement.  Executed signature pages to this letter agreement may be delivered by facsimile and such facsimiles will be deemed sufficient as if actual signature pages had been delivered

 

[Remainder of this page intentionally left blank]

 

2

 

IN WITNESS WHEREOF, the parties have duly executed this letter agreement as of the date first written above.

 

 

	
 
    	
UNITED   STATES DEPARTMENT OF THE TREASURY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
COMPANY:   EAGLE BANCORP, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

3

 

SCHEDULE A

 

General Information:

 

	
Date   of Letter Agreement incorporating the Securities Purchase Agreement:
    	
 
    	
December 5,   2008
    
	
 
    	
 
    	
 
    
	
Name   of the Company:
    	
 
    	
Eagle   Bancorp, Inc.
    
	
 
    	
 
    	
 
    
	
Corporate   or other organizational form of the Company:
    	
 
    	
Corporation
    
	
 
    	
 
    	
 
    
	
Jurisdiction   of organization of the Company:
    	
 
    	
Maryland
    
	
 
    	
 
    	
 
    
	
Number   and series of preferred stock issued to the Investor at the Closing:
    	
 
    	
38,235   shares of Fixed Rate Cumulative
    
	
 
    	
 
    	
Perpetual   Preferred Stock, Series A
    
	
 
    	
 
    	
 
    
	
Number   of Initial Warrant Shares:
    	
 
    	
770,867   shares of Common Stock
    

 

Terms of the Repurchase:

 

	
Number   of Preferred Shares repurchased by the Company:
    	
 
    	
23,235
    
	
 
    	
 
    	
 
    
	
Share   certificate number (representing the Preferred Shares previously issued to   the Investor following partial repurchase of shares on December 23,   2009:
    	
 
    	
PFD   A 2
    
	
 
    	
 
    	
 
    
	
Per   share Liquidation Amount of Preferred Shares:
    	
 
    	
$1,000.00
    
	
 
    	
 
    	
 
    
	
Accrued   and unpaid dividends on Preferred Shares:
    	
 
    	
$190,397.92
    
	
 
    	
 
    	
 
    
	
Aggregate   purchase price for Repurchased Preferred Shares:
    	
 
    	
$23,425,397.92
    

 

	
Investor wire information for payment of purchase price:
    	
 
    	
ABA Number:
    
	
 
    	
 
    	
Bank:
    
	
 
    	
 
    	
Account Name:
    
	
 
    	
 
    	
Account Number:
    

 

4Exhibit 10.1

 

 

AMENDMENT NO. 2 TO

TRANSACTIONS TERMS LETTER

 

This AMENDMENT NO. 2 TO TRANSACTIONS TERMS LETTER (the “Amendment”) is made and entered into as of July 12, 2011 by and between Bank of America, N.A. (“Buyer”) and Home Loan Center, Inc. (“Seller”). This Amendment amends that certain Transactions Terms Letter by and between Buyer and Seller dated as of June 30, 2010 (the “Transactions Terms Letter”), which supplements that certain Master Repurchase Agreement by and between Buyer and Seller dated as of May 1, 2009 (as may be amended from time to time, the “Agreement”).

 

R E C I T A L S

 

Buyer and Seller have previously entered into the Transactions Terms Letter and Agreement pursuant to which Buyer may, from time to time, purchase certain mortgage loans from Seller and Seller agrees to sell certain mortgage loans to Buyer under a master repurchase facility.  Buyer and Seller hereby agree that the Transactions Terms Letter shall be amended as provided herein.

 

In consideration of the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer and Seller hereby agree as follows:

 

1.                                       Expiration Date.  Buyer and Seller agree that the Expiration Date set forth within the Transactions Terms Letter shall be deleted in its entirety and replaced with the following:

 

	
“Expiration   Date:
    	
 
    	
Expiring   on September 1, 2011”
    

 

2.                                       Minimum Over/Under Account Balance.  Buyer and Seller agree that the Minimum Over/Under Account Balance set forth within the Transactions Terms Letter shall be deleted in its entirety and replaced with the following:

 

	
“Minimum   Over/Under
    	
 
    	
 
    
	
Account   Balance:
    	
 
    	
$2,250,000   (minimum of 300 basis points of the combined Aggregate Transaction Limit and   the Outstanding Loan Limit set forth within Seller’s EPP Addendum).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Seller to be entitled to interest on a monthly   basis thereon at an annual rate of LIBOR plus the Type A Margin over 30 day   LIBOR spread on the positive monthly average Over/Under Balance for the   portion that is equal to or less than 20% of the average monthly outstanding   Transactions for such month and; Seller to be entitled to interest on a   monthly basis at an annual rate of LIBOR minus twenty five (25) basis points   (0.25%) on the remaining portion of the positive monthly average Over/Under   Balance that is greater than 20% but less than or equal to 75% of the average   monthly outstanding Transactions for such month.  For the purpose of   this calculation, average outstanding Transactions shall include EPP Loans   under Seller’s EPP Addendum with Buyer.  “LIBOR” shall mean the greater   of (i) the daily rate per annum for one-month U.S. dollar denominated   deposits as offered to prime banks in the London interbank market or   (ii) 2%, as applicable.”
    

 

 

3.                                       Financial Covenants.  Buyer and Seller agree that the Financial Covenants set forth within the Transactions Terms Letter shall be amended for Financial Covenant (b) as follows, and all other existing Financial Covenants shall remain unchanged:

 

“

(b)               Minimum Liquidity: Seller to maintain unrestricted cash or unrestricted Cash Equivalents in a minimum amount equal to 40% of Seller’s Tangible Net Worth, inclusive of the Over/Under Account Balance and available draws from Warehouse and Repurchase facilities.  By way of example but not limitation, cash in escrow and/or impound accounts shall not be included in this calculation.

”

 

4.                                       No Other Amendments; Conflicts with Previous Amendments.  Other than as expressly modified and amended herein, the Transactions Terms Letter shall remain in full force and effect and nothing herein shall affect the rights and remedies of Buyer as provided under the Transactions Terms Letter and Agreement. To the extent any amendments to the Transactions Terms Letter contained herein conflict with any previous amendments to the Transactions Terms Letter, the amendments contained herein shall control.

 

5.                                       Capitalized Terms.  Any capitalized term used herein and not otherwise defined herein shall have the meaning ascribed to such term in the Agreement.

 

6.                                       Facsimiles.  Facsimile signatures shall be deemed valid and binding to the same extent as the original.

 

IN WITNESS WHEREOF, Buyer and Seller have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the date first written above.  Buyer shall have no obligation to honor the terms and conditions of this Amendment if Seller fails to fully execute and return this document to Buyer within thirty (30) days after the date hereof.

 

	
BANK OF AMERICA, N.A.
    	
HOME   LOAN CENTER, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Rayanthi De Mel
    	
 
    	
By:
    	
/s/   Rian Furey
    
	
Name:
    	
Rayanthi   De Mel
    	
 
    	
Name:
    	
Rian   Furey
    
	
Title:
    	
Assistant   Vice President
    	
 
    	
Title:
    	
SVP &   COO
    
	
 
    	
Bank   of America, N.A.

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