Document:

Presidential House - Fifth Amendment

 
Exhibit 10.20

 

FIFTH AMENDMENT TO PURCHASE AND SALE CONTRACT
             This Fifth Amendment to Purchase and Sale Contract (this “
Amendment”) is made as of July 2, 2009, between DREXEL BURNHAM LAMBERT REAL ESTATE ASSOCIATES II LIMITED PARTNERSHIP (“
Seller”) and ADVENIR, INC. (“Purchaser”).
 
W I T N E S S E T H:
            
WHEREAS, Seller and Purchaser entered into a Purchase and Sale Contract dated as of March 25, 2009, as amended by the terms of (i) that certain First Amendment to Purchase and Sale Contract, dated April 24, 2009, (ii) that certain Second Amendment to Purchase and Sale Agreement, dated May 8, 2009, (iii) that certain Third Amendment to Purchase and Sale Agreement, dated May 15, 2000 and (iv) that certain Fourth Amendment to Purchase and Sale Agreement, dated June 25, 2009 (said Purchase and Sale Contract, as amended, being herein collectively called the “
Agreement”) with respect to the sale of certain property known as Presidential House located in Miami-Dade County, Florida, as described in the Agreement; and

           
WHEREAS, Seller and Purchaser desire to amend the Agreement on the terms set forth herein. 

           
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the sum of $10.00 and other good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

1.      
Capitalized Terms.     Capitalized terms used in this Amendment shall have the meanings given to them in the Agreement, except as expressly otherwise defined herein.

2.      
Right to Terminate.  Purchaser's right to terminate the Agreement pursuant to
Section 4.5.9 thereof is hereby permanently waived, and Purchaser shall have no further right to terminate the Agreement pursuant to the terms of said
Section 4.5.9.  Purchaser acknowledges and agrees that the Deposit currently being held by Escrow Agent is non-refundable (except as otherwise provided for in the Agreement) and Purchaser’s obligation to purchase the Property shall be conditional only as provided in
Section 8.1 of the Agreement.
 
3.      
Recourse Guaranty Closing Credit.  As a condition to the Lender approving the Loan Assumption and Release, the Lender is requiring that Purchaser cause a person or entity to execute and deliver a full-recourse guaranty in the amount of ten percent (10%) of the outstanding principal balance of the Loan (the “
Recourse Guaranty Condition”)  If, at or prior to the Closing, the Lender does not agree to waive the Recourse Guaranty Condition, then, at the Closing, Seller shall provide to Purchaser a credit against the Purchase Price in the amount of One Hundred Fifty Thousand Dollars ($150,000.00).  Notwithstanding the foregoing, Purchaser hereby acknowledges that if Lender waives the Recourse Guaranty Condition, then Purchaser shall not be entitled to receive the foregoing credit and, except as otherwise provided in the Agreement, Purchaser shall be obligated to Close for the full Purchase Price.  

4.      
Miscellaneous.           This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute a single instrument and may be delivered by facsimile transmission, and any such facsimile transmitted Amendment shall have the same force and effect, and be as binding, as if original signatures had been delivered.  As modified hereby, all the terms of the Agreement are hereby ratified and confirmed and shall continue in full force and effect.

[Signature Page to Follow]

            IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date and year hereinabove written.

 
 
Seller:
  

DREXEL BURNHAM LAMBERT REAL ESTATE ASSOCIATES II LIMITED PARTNERSHIP, a New York limited partnership

 
 By:  DBL PROPERTIES CORPORATION, a New York corporation, its general partner

 
 By: 
/s/Brian J. Bornhorst
 Name:  Brian J. Bornhorst

Title:  Vice President

Purchaser:

ADVENIR, INC.,
a Florida corporation 
 By: 
/s/Stephen Vecchitto
 Name:  Stephen Vecchitto

Title:  Vice Presidentex10-1.htm

    
      

      

    

    UNITED
STATES OF AMERICA

     

    BEFORE THE

     

    BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

     

    WASHINGTON, D.C.

     

    
      
        	 
      	 
      	 
      
	
                 

                 

                Written
      Agreement by and between

                 

                FRONTIER FINANCIAL CORPORATION

                Everett, Washington

                 

                and

                 

                FEDERAL RESERVE BANK OF 

                 SAN FRANCISCO

                San Franciso, California

                 

                 

              	
                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

              	
                
                  Docket
      No. 09-073-WA/RB-HC

              
	 
      	 
      	 
      

      

       

          WHEREAS,
Frontier Financial Corporation, Everett, Washington (“FFC”), a registered bank
holding company, owns and controls Frontier Bank, Everett, Washington (the
“Bank”), a state chartered nonmember bank, and various nonbank
subsidiaries;

      
         

            WHEREAS, it
is the common goal of FFC and the Federal Reserve Bank of San Francisco (the
“Reserve Bank”) to maintain the financial soundness of FFC so that FFC may serve
as a source of strength to the Bank;

         

            WHEREAS, FFC
and the Reserve Bank have mutually agreed to enter into this Written Agreement
(the “Agreement”); and

         

            WHEREAS, on
June 24, 2009, the board of directors of FFC, at a duly constituted meeting,
adopted a resolution authorizing and directing Patrick M. Fahey to enter into
this Agreement on behalf of FFC and consenting to compliance with each and every
provision of this Agreement by FFC and its institution-affiliated parties, as
defined in sections 3(u) and 8(b)(3) of the Federal Deposit Insurance Act, as
amended (the “FDI Act”) (12 U.S.C. §§ 1813(U) AND 1818(B)(3).

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        NOW, THEREFORE, FFC and the Reserve
Bank agree as follows:

        

        Dividends
and Distributions

        

        1.           
(a)           FFC shall
not declare or pay any dividends without the prior written approval of the
Reserve Bank and the Director of the Division of Banking Supervision and
Regulation (the “Director”) of the Board of Governors of the Federal Reserve
system (the “Board of Governors”).

         

        (b)           FFC
shall not directly or indirectly take dividends or any other form of payment
representing a reduction in capital from the Bank without the prior written
approval of the Reserve Bank.

         

        (c)           FFC
and its nonbank subsidiaries shall not make any distributions of interest,
principal, or other sums on subordinated debentures or trust preferred
securities without the prior written approval of the Reserve Bank and the
Director.

        

        (d)           All
requests for prior approval shall be received by the Reserve Bank at least 30
days prior to the proposed dividend declaration date, proposed distribution on
subordinated debentures, and required notice of deferral on trust preferred
securities.  All requests shall contain, at minimum, current and
projected information on FFC’s capital, earnings, and cash flow; the Bank’s
capital, asset quality, earnings, and allowance for loan and lease losses; and
identification of the sources of funds for the proposed payment or
distribution.  For requests to declare or pay dividends, FFC must also
demonstrate that the requested declaration or payment of dividends is consistent
with the Board of Governors’ Policy Statement on the Payment of Cash Dividends
by State Member Banks and Bank Holding Companies, dated November 14, 1985
(Federal Reserve Regulatory Service, 4-877 at page 4-323).

        

        Debt
and Stock Redemption

         

        2.           
(a)           FFC, and
any nonbank subsidiary, shall not, directly or indirectly, incur, increase, or
guarantee any debt without the prior written approval of the Reserve
Bank.  All requests for prior written approval shall contain, but not
be limited to, a statement regarding the purpose of the debt, the terms of the
debt, and the planned source(s) for debt repayment, and an analysis of the cash
flow resources available to meet such debt repayment.

         

        (b)           FFC
shall not, directly or indirectly, purchase or redeem any shares of its stock
without the prior written approval of the Reserve Bank.

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        Capital
Plan

        

        3.           Within
60 days of this Agreement, FFC shall submit to the Reserve Bank an acceptable
written plan to maintain sufficient capital at FFC, on a consolidated basis, and
at the Bank, as a separate legal entity on a stand-alone basis.  The
plan shall, at a minimum, address, consider, and include:

         

        (a)           The
consolidate organization’s and the Bank’s current and future capital
requirements, including compliance with the Capital Adequacy Guidelines for Bank
Holding Companies: Risk-Based Measure and Tier 1 Leverage Measure, Appendices A
and D of Regulation Y of the Board of Governors (12 C.F.R. Part 225, app. A and
D) and the applicable capital adequacy guidelines for the Bank issued by the
Bank’s federal regulator;

         

        (b)           the
adequacy of the Bank’s capital, taking into account the volume of classified
credits, concentrations of credit, allowance for loan and lease losses, current
and projected asset growth, and projected retained earnings;

         

        (c)           the
source and timing of additional funds necessary to fulfill the consolidated
organization’s and the Bank’s future capital requirements;

         

        (d)           supervisory
requests for additional capital at the Bank or the requirements of any
supervisory action imposed on the Bank by its federal regulator;
and

         

        (e)           the
requirements of section 225.4(a) of Regulation Y of the Board of Governors (12
C.F.R. § 225.4(a) that FFC serve as a source of strength to the
Bank

        

        4.           FFC
shall notify the Reserve Bank, in writing, no more than 30 days after the end of
any quarter in which any of FFC’s or the Bank’s capital ratios (total
risk-based, Tier 1 risk-based, or leverage) fall below the plan’s minimum
ratios. Together with the notification, FFC shall submit an acceptable written
plan that details the steps that FFC and the Bank will take to increase FFC’s or
the Bank’s capital ratios to or above the plan’s minimums.

        

        Compliance
with Laws and Regulations

         

        5.           
(a)           In
appointing any new director or senior executive officer, or changing the
responsibilities of any senior executive officer so that the officer would
assume a different senior executive officer position, FFC shall comply with the
notice provisions of section 32 of the FDI Act (12 U.S.C. § 183li) and Subpart H
of Regulation Y of the Board of Governors

        (12
C.F.R. §§ 225.71 et
seq.).

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        (b)           FFC
shall comply with the restrictions on indemnification and severance payments of
section 18(k) of the FDI Act (12 U.S.C. § 1828(k) and Part 359 of the Federal
Deposit Insurance Corporation’s regulations (12 C.F.R. Part 359).

         

        Progress
Reports

         

        6.           Within
30 days after the end of each calendar quarter following the date of this
Agreement, the board of directors shall submit to the Reserve Bank written
progress reports detailing the form and manner of all actions taken to secure
compliance with the provisions of this Agreement and the results thereof, and a
parent company only balance sheet, income statement, and as applicable, report
of changes in stockholders’ equity.

         

        Approval
and Implementation of Plan

         

        7.           
(a)           FFC shall
submit a written capital plan that is acceptable to the Reserve Bank within the
applicable time period set forth in paragraph 3 of this Agreement.

        

        (b)           With
10 days of approval by the Reserve Bank, FFC shall adopt the approved capital
plan.  Upon adoption, FFC shall promptly implement the approved plan,
and thereafter fully comply with it.

        

        (c)           During
the term of this Agreement, the approved capital plan shall not be amended or
rescinded without the prior written approval of the Reserve Bank.

        

        Communications

        

        8.           All
communications regarding this Agreement shall be sent to:

        

        (a)           Mr.
Kevin Zerbe

        Vice President

        Banking Supervision &
Regulation

        Federal Reserve Bank of San
Francisco

        101 Market Street, Mail Stop
920

        San Francisco, California
94105

        

        (b)           Mr.
Patrick M. Fahey

        Chairman of the Board and Chief
Executive Officer

        Frontier Financial
Corporation

        332 Southwest Everett Mall
Way

        Everett, Washington 98204

        

        

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        

        Miscellaneous

        

        9.           Notwithstanding
any provision of this Agreement, the Reserve Bank may, in its sole discretion,
grant written extensions of time to FFC to comply with any provision of this
Agreement.

        

        10.           The
provisions of this Agreement shall be binding upon FFC and its
institution-affiliated parties, in their capacities as such, and their
successors and assigns.

        

        11.           Each
provision of this Agreement shall remain effective and enforceable until stayed.
Modified, terminated, or suspended in writing by the Reserve Bank.

        

        12.           The
provisions of this Agreement shall not bar, estop, or otherwise prevent the
Board of Governors, the Reserve Bank, or any other federal or state agency from
taking any other action affecting FFC, the Bank, any nonbank subsidiary of FFC,
or any of their current or former institution-affiliated parties and their
successors and assigns.

        

        13.           Pursuant
to section 50 of the FDI Act (12 U.S.C. § 1831aa), this Agreement is enforceable
by the Board of Governors under section 8 of the FDI Act (12 U.S.C. §
1818).

        

        IN WITNESS WHEREOF, the parties have
caused this Agreement to be executed as of the 2nd day of
July, 2009.

         

         

        
          	 FRONTIER
      FINANCIAL CORPORATION	 	 FEDERAL
      RESERVE BANK
	 	 	  OF SAN
      FRANCISCO
	 	 	 
	 By: /s/
      Patrick M. Fahey	 	 By: /s/ Kevin
      M. Zerbe
	             
      Patrick M. Fahey     	 	             
      Kevin M. Zerbe
	             
      Chairman & CEO	 	             
      Vice President

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