Document:

Exhibit
10.7

REINSTATEMENT
OF AND FIRST AMENDMENT TO

SALE, PURCHASE AND ESCROW AGREEMENT

This REINSTATEMENT OF AND FIRST AMENDMENT TO SALE,
PURCHASE AND ESCROW AGREEMENT (this “Amendment”) is dated as of
the 16th day of October, 2006, by and between NORTH ATLANTA
REALTY ACQUISITION COMPANY, INC., a Delaware corporation (“Seller”), and
HARVARD PROPERTY TRUST, LLC, a Delaware
limited liability company (“Buyer”).

R E C I T A L S:

A.            Seller and Buyer have entered into a certain Sale,
Purchase and Escrow Agreement, dated as of September 29, 2006 (the “Agreement”).

B.            Pursuant to that certain letter dated October 5, 2006,
Buyer terminated the Agreement.

C.            Seller and Buyer now desire to reinstate and amend the
Agreement, subject to the following modifications.

NOW, THEREFORE, in consideration of the foregoing recitals and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

1.             The Agreement is
hereby reinstated and shall again be in full force and effect as if the
Agreement had never been terminated, subject only to the modifications set
forth below.

2.             Section 5.3.2
of the Agreement is amended by deleting in the first sentence the date “October
16, 2006” contained therein and substituting the date “October 18, 2006” in
lieu thereof.

3.             Except to the
extent expressly provided herein, the Agreement shall remain in full force and
effect in accordance with its terms.

4.             This Amendment may
be executed in counterparts and all such counterparts when taken together shall
constitute one and the same instrument. 
Any counterpart copy of this Amendment that is delivered by facsimile to
any other party shall be deemed delivered by such sending party upon receipt
thereby of a transmission report indicating that such counterpart has been
received by the other party.

[The Remainder Of This Page Intentionally Left Blank]

 

IN WITNESS WHEREOF, this Amendment has been executed as of the
date first set forth above.

	
  

  	
  SELLER

  
	
   

  	
   

  
	
   

  	
  NORTH ATLANTA REALTY ACQUISITION

  
	
   

  	
  COMPANY, INC., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BUYER

  
	
   

  	
   

  	
   

  
	
   

  	
  HARVARD PROPERTY TRUST, LLC, a

  
	
   

  	
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
								

 

 2Exhibit
10.8

REINSTATEMENT
OF AND SECOND AMENDMENT TO

SALE, PURCHASE AND ESCROW AGREEMENT

This REINSTATEMENT OF AND SECOND TO AMENDMENT TO
SALE, PURCHASE AND ESCROW AGREEMENT (this “Amendment”) is dated
as of the 20th day of October, 2006, by and between NORTH
ATLANTA REALTY ACQUISITION COMPANY, INC., a Delaware corporation (“Seller”),
and HARVARD PROPERTY TRUST, LLC, a
Delaware limited liability company (“Buyer”).

R E C I T A L S:

A.            Seller and Buyer have entered into a certain Sale,
Purchase and Escrow Agreement, dated as of September 29, 2006, as amended by that
certain Reinstatement Of And First Amendment To Sale, Purchase and Escrow
Agreement, dated as of October 16, 2006 (collectively, the “Agreement”).

B.            Pursuant to that certain letter dated October 18, 2006,
Buyer terminated the Agreement.

C.            Seller and Buyer now desire to reinstate and amend the
Agreement, subject to the following modifications.

NOW, THEREFORE, in consideration of the foregoing recitals and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

1.             The Agreement is
hereby reinstated and shall again be in full force and effect as if the
Agreement had never been terminated, subject only to the modifications set
forth below.

2.             Section 2.1 of
the Agreement is amended by deleting in the first sentence the number “$110,500,000”
contained therein and substituting the number “$107,600,000” in lieu thereof.

3.             Seller and Buyer
hereby acknowledge that (i) the Investigation Period expired on the date
hereof, (ii) Buyer has waived its right to terminate the Agreement pursuant to
Sections 5.3.1 and 5.3.2 and (iii) Buyer shall deliver the Additional Funds
pursuant to Section 2.1.2 of the Agreement.

4.             Except to the
extent expressly provided herein, the Agreement shall remain in full force and
effect in accordance with its terms.

5.             This Amendment may be
executed in counterparts and all such counterparts when taken together shall
constitute one and the same instrument. 
Any counterpart copy of this Amendment that is delivered by facsimile to
any other party shall be deemed delivered by such sending party upon receipt
thereby of a transmission report indicating that such counterpart has been
received by the other party.

 

IN WITNESS WHEREOF, this Amendment has been executed as of the
date first set forth above.

	
  

  	
  SELLER

  
	
   

  	
   

  
	
   

  	
  NORTH ATLANTA REALTY ACQUISITION

  
	
   

  	
  COMPANY, INC., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BUYER

  
	
   

  	
   

  
	
   

  	
  HARVARD PROPERTY TRUST, LLC, a

  
	
   

  	
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

 2Exhibit
10.1

[Letterhead of
Castle Creek Financial LLC]

December 5, 2006

First Community Bancorp

401 West “A” Street

San Diego, CA  92101

Attention: Victor R.
Santoro

Dear Vic:

This letter agreement (the “Agreement”) will confirm
that First Community Bancorp (the “Company”) has engaged Castle Creek Financial
LLC (“Castle Creek”) as the exclusive financial advisor to the Company in
connection with the Company’s efforts to (a) acquire or invest in other
financial institutions, excepting therefrom the opening of individual bank
branches in the ordinary course of business; (b) effect a sale of the Company
or a material amount of its assets; or (c) pursue a financing or
recapitalization transaction (collectively, the “Transaction”).  As the exclusive financial advisor to the
Company, Castle Creek will, in addition to providing services in connection
with a proposed Transaction provide other services pursuant to paragraph 9.  This Agreement amends and restates the letter
agreement between the Company and Castle Creek dated as of November 17, 2005.

1.                                       In
connection with a proposed Transaction, at the request of the Company, Castle
Creek will provide such services as the Company shall reasonably request
including: (i) assisting the Company in the structuring of the financial
aspects of a Transaction; (ii) identifying alternative potential parties and
contacting such parties as the Company may designate; (iii) assist the Company
in negotiating the terms of a Transaction with such parties; (iv) assisting the
Company in communicating the strategic implications of the Transaction to the
investment community; and (v) advising the Company in connection with its
efforts to raise any additional capital that may be required to facilitate the
Transaction.  Further, Castle Creek and
the Company expressly acknowledge that the fees provided for under paragraph 3
for a completed Transaction were determined in light of the fact that
significant financial advisory services are rendered to the Company in
connection with potential Transactions that are not successfully
completed.  Thus, such fees earned
pursuant to paragraph 3 will serve as compensation for services rendered in
connection with a completed Transaction and in connection with potential Transactions
that are not successfully completed. 
Further, such fees are in recognition of the exclusive arrangement
between Castle Creek and the Company, and Castle Creek’s commitment to source
and present opportunities in the Company’s geographic market and niche for the
Company’s sole consideration and decision before presenting such opportunities
to any third party.

2.                                       In
connection with a proposed Transaction, you will furnish Castle Creek with such
material regarding the business and financial condition of the Company as we reasonably
request, all of which will be accurate and complete in all material respects at
the time furnished in writing.  The
Company will also use its reasonable best efforts to assure that its personnel,
consultants, experts, attorneys and accountants are made available to Castle
Creek upon Castle Creek’s reasonable request in connection with services
provided or to be provided by Castle Creek. 
During the term of this Agreement, the Company shall 

 

promptly notify Castle
Creek of (i) any material changes in the business or financial condition of the
Company from the written information provided to Castle Creek, and (ii) any
material events or developments relating to the financial condition or business
operations or prospects of the Company and promptly make available for Castle
Creek’s review copies of all filings related to the Transaction made by the
Company with any regulatory agency and copies of all press releases related to
the Transaction issued by the Company. 
We are relying, without independent verification, on the accuracy and
completeness of all information furnished to us in writing by the Company or
any other party or potential party to any Transaction.  Castle Creek agrees that all requests for
information from the Company will be directed only to the President, Chief
Financial Officer or General Counsel of the Company or such other persons as
the President shall specifically designate and that it will not treat
information obtained from any other person or source as having been provided by
the Company.

3.                                       In
consideration of the services to be provided hereunder, the Company agrees to
pay to Castle Creek the following cash fees:

(A)                              In
the event that a sale of the Company is completed, an amount equal to one and
one-half percent (1.5%) of the Transaction Value (as defined below) for the
Transaction, net of the cost of a “fairness opinion” if such opinion is deemed
necessary,

(B)                                In
the event that an acquisition of or investment in another financial institution
is completed by the Company, an amount based upon the following schedule will
be owed to Castle Creek upon the consummation of the acquisition or investment
based upon the Transaction Value for the Transaction, net of the cost of a “fairness
opinion” if such opinion is deemed necessary:

	
  

  	
   

  	
   

  	
   

  	
  Deal Value

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ($ in millions)

  	
   

  	
   

  	
   

  	
  Fees

  	
   

  
	
  (1)

  	
   

  	
  If

  	
   

  	
  $ 0 < $20

  	
   

  	
  then

  	
   

  	
  1.0% of the
  Transaction Value

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  If

  	
   

  	
  Over $20

  	
   

  	
  then

  	
   

  	
  $200,000, plus 0.65% of the 

  amount of the Transaction Value 

  in excess of $20 million

  	
   

  

 

(C)                                In the event of a
financing or recapitalization, the fees will be determined in accordance with
paragraph 8 below.

(D)                               Fees
payable pursuant to paragraphs 3 (A), (B) and (C) shall be paid upon and only
upon the closing of the Transaction.

For purposes of this Agreement,
“Transaction Value” means the sum of (as applicable for the particular
Transaction): (i) with respect to each class of capital stock of the Company in
the event of a sale of the Company or of the financial institution which is
acquired by the 

 2
 

 

Company or in which the
Company invests, the aggregate consideration paid or payable for all shares of
such capital stock and for all shares of such classes issuable upon exercise of
options, warrants or other rights, or conversion or exchange of securities to
the extent that such options are then exercisable; (ii) in the case of an
acquisition or sale, the aggregate liquidation value of any preferred stock or
other preferential interests redeemed or remaining outstanding; (iii) the fair
market value of any assets distributed to the shareholders of the Company or
such financial institution that is purchased, in connection with the
Transaction; and (iv) in the case of an asset purchase or sale, the aggregate
consideration paid or payable for the assets of the Company or the assets of
the financial institution.

The determination of the “aggregate
consideration paid or payable” for shares of any classes of capital stock in
connection with the Transaction shall include cash, securities (valued in
accordance with the following paragraph), or other assets or consideration paid
or payable by the purchaser or any of its affiliates, as the case may be,
determined without regard to any allocations between the Company or its
affiliates in the event of a sale of the Company or between the financial
institution or its affiliates in the event such financial institution is
acquired by the Company or the Company invests in such financial institution,
including but not limited to (i) assets (net of debt or payables) of the Company
or such financial institution retained by the Company or such financial
institution or their respective stockholders and affiliates, as the case may be
(ii) any deferred installments of the purchase price, (iii) any portion of the
purchase price held in escrow subsequent to closing which is payable pursuant
to the terms of the escrow arrangement, irrespective of whether such amounts
are in fact paid, (iv)
any payments pursuant to earn-outs, royalties or other similar arrangements,
(v) any payments payable after closing upon the occurrence of certain events or
conditions or the satisfaction of certain earnings, sales levels or other
performance objectives which are agreed to on or before the closing,
irrespective of whether such amounts are in fact paid, (vii) the amount of any
extraordinary dividends or other extraordinary payments or distributions to
stockholders of the Company or the financial institution in connection with or
in anticipation of the Transaction, and (viii) consideration paid by the
purchaser or its affiliates as a deposit, reimbursement of expenses, liquidated
damages, walk-away fee or other arrangement.

In
the event that all or any portion of the Transaction Value for a Transaction is
paid in stock or other securities, deferred installments or other non-cash
consideration, the amount of the fee payable with respect to such items shall
be determined on the basis of the fair market cash equivalent value of such
non-cash consideration as of the day preceding the closing date of the
Transaction as reasonably determined by Castle Creek and the Company, provided
that the value of securities (received as consideration) which have an existing
public trading market shall be determined by the closing sale (trade) price on
the closing date.

Any
portion of the fee which is payable with respect to any earn-out, royalty or
similar arrangement where the amount payable is not a certain amount, shall be
calculated and paid at the closing based upon the estimated net present value
thereof as reasonably determined by Castle Creek and the Company.

If
a Transaction involves the acquisition of less than all of outstanding
securities of the Company, but securities representing more than 50% of the
combined voting power of the then outstanding securities of the Company, then
the fee payable pursuant to Section 3(A)

 3
 

 

shall
nonetheless be calculated as though all such equity securities had been so
acquired by the purchaser.

4.                                       Regardless of whether a Transaction is
completed, the Company will reimburse Castle Creek, upon its demand, for all
reasonable out-of-pocket expenses (including travel expenses and fees and
disbursements of counsel retained by Castle Creek in connection with this
engagement).  In seeking such
reimbursement, Castle Creek shall provide an explanation of such charges.

5.                                       The Company agrees to indemnify and hold
Castle Creek harmless in accordance with the terms and conditions of Appendix A
attached hereto and made a part hereof as though fully set forth in this
Agreement.  No termination or
modification hereof, or completion of Castle Creek’s engagement hereunder,
shall limit or affect such indemnification.

6.                                       Castle Creek’s services hereunder may be
terminated by the Company or Castle Creek at any time upon 30 days written
notice, provided that Castle Creek shall be entitled to any fees payable
pursuant to Section 3 and Section 8 hereof in the event that the Company
completes a Transaction (i) on which Castle Creek provided advice or
participated in discussions with any of the investors in such Transaction or
(ii) with any of the parties as to which Castle Creek advised the Company or
with whom the Company engaged in discussions regarding a possible Transaction
prior to the termination of this Agreement, providing that such Transaction is
completed within eighteen months following the termination of this
Agreement.  In addition, Castle Creek
shall remain entitled to the reimbursement of fees and expenses under the terms
and conditions described in Section 4 hereof, to the extent the same have been
incurred on or prior to the date of such termination.  Furthermore, the provisions of this Section
6, and Sections 5 (including Appendix A), 10, 11, 12, 13, 14, 15 and 16, as
well as the Confidentiality Agreement, shall survive any termination of this
Agreement.

7.                                       In order to coordinate our efforts with
respect to any Transaction for which the Company intends to engage a financial
advisor, during the period of our engagement hereunder if the Company or its
management receives an inquiry regarding a Transaction, they will promptly
advise Castle Creek of such inquiry in order that we can evaluate such
prospective party and its interest and assist the Company in any resulting
negotiations.

8.                                       Pursuant to section 3(C) hereinabove, it is
understood and agreed that if the Company decides to pursue a financing or
recapitalization Transaction for which Castle Creek is to provide any of the
financial advisory services described above in Section 1 hereof, the Company
and Castle Creek shall negotiate in good faith acceptable compensation for
Castle Creek in consideration of such services, which compensation will take
into account, among other things, the results obtained and the custom and
practice among investment bankers acting in similar situations.  The compensation owed to Castle Creek in
accordance with the fee structure agreed upon by the Company and Castle Creek
in respect of a financing or recapitalization Transaction shall be paid to
Castle Creek in cash upon the completion of any such Transaction.  It is understood that no separate fee will be
owed to Castle Creek in consideration of services in connection with a
financing or recapitalization Transaction if such Transaction is undertaken in
connection with a Transaction described in Section 3(B) above.

 4
 

 

9.                                       It is understood and agreed that Castle Creek
will provide such other services that may from time to time be mutually agreed
upon by Castle Creek and the Company. 
Castle Creek expressly acknowledges that it will not be compensated
specifically for these services other than the reimbursement for all reasonable
out-of-pocket expenses, but that such fees earned from acting as a financial
advisor to the Company for a Transaction will serve as compensation to Castle
Creek for such non-Transaction services rendered.  Such services rendered to the Company not
directly related to a specific Transaction may include, but are not exclusive
to (i) the development and preparation of long term financial and strategic
plans, (ii) assistance with investor and public relations, and (iii) capital
management advisory services.

10.                                 Except as expressly provided herein, no fee
paid or payable to Castle Creek or any of its affiliates shall be used as an
offset or credit against any other fee paid or payable to Castle Creek or any
of its affiliates.

11.                                 This Agreement, along with the indemnity in
Appendix A and the Confidentiality Agreement attached hereto as Annex B, embody
the sole terms of the agreement between the Company and Castle Creek with
respect to the subject matter hereof and supersede all previous agreements,
whether oral or written, between the Company and Castle Creek with respect to
the subject matter hereof.  This
Agreement may not be altered, varied, revised or amended, except by an instrument
in writing signed by both the Company and Castle Creek after the date first
written above.  The Company and Castle
Creek have not made any other agreements or representations of any kind with
respect to such subject matter.

12.                                 This Agreement shall be governed by and
construed in accordance with the laws of the State of California without regard
to principles of conflict of laws.  Any
right to trial by jury with respect to any claim or proceeding related to or
arising out of this engagement or any transaction or conduct in connection
herewith, is waived.  Any claim or
dispute arising out of this Agreement or the alleged breach thereof shall be
submitted by the parties to binding and nonappealable arbitration by the
American Arbitration Association (“AAA”) in San Diego, California, under the commercial
rules then in effect for the AAA, except as provided herein.  The AAA shall recommend three arbitrators who
are knowledgeable in the field of investment banking.  The parties shall agree upon one of the three
arbitrators or, if no arbitrator is mutually agreed upon, the AAA shall appoint
one of the three arbitrators within 30 days of such failure.  The award rendered by the arbitrator shall
include costs of arbitration, reasonable attorneys’ fees and fees of experts
and other witnesses, but shall not include punitive damages against either
party.  Each party shall have the right
to request the arbitrator to order reasonable and limited discovery.
Notwithstanding this provision, either party may seek appropriate injunctive
relief.

13.                                 This Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which shall
continue one and the same instrument.

14.                                 The obligations of the Company hereunder
shall be the joint and several obligations of the entities comprising the term
Company.

 5
 

 

15.                                 The Company expressly acknowledges that
Castle Creek has been retained solely as an advisor to the Company, and not as
an advisor to or agent of any other person, and that the Company’s engagement
of Castle Creek is not intended to confer rights upon any persons not a party
hereto (including shareholders, employees or creditors of the Company) as
against Castle Creek, Castle Creek’s affiliates or their respective directors,
officers, agents and employees. Any advice provided to the Company by Castle
Creek pursuant to this Agreement is solely for the information and assistance
of the executive management and Board of Directors of the Company.  Such advice shall be treated as confidential
information and shall not be disclosed to any third party except in accordance
with the terms of the Confidentiality Agreement.  Any reference to Castle Creek or to any
affiliate of Castle Creek in any release or communication to any party outside
the Company is subject to Castle Creek’s prior written approval, which approval
shall not be unreasonably withheld or delayed. 
If this Agreement is terminated prior to any release or communication,
no reference shall be made to Castle Creek without Castle Creek’s prior written
approval.

16.                                 Neither the Company nor Castle Creek may
assign, transfer, license, or sublicense its rights under this Agreement
without the other party’s prior written consent, which may be granted or
withheld in the other party’s sole and absolute discretion.  Subject to the limitation in this paragraph,
this Agreement will inure to the benefit of and be binding upon both the
Company and Castle Creek and their respective successors and assigns.

17.                                 Castle Creek represents that it has the
necessary expertise to provide the services contemplated by this Agreement and
that the compensation provided for herein is fair and reasonable and comparable
to the compensation that would be charged by an independent provider of such
services with the same type, level and quality of expertise.  The Company acknowledges that the services
contemplated herein will meet legitimate needs of the Company and that it is in
the best interests of the Company to obtain such services.

18.                                 After closing a Transaction, Castle Creek
shall have the right to place advertisements in financial and other newspapers
and other newspapers and journals at its own expense describing its services to
the Company under this Agreement, provided that Castle Creek shall have
submitted a copy of any such proposed advertisements to the Company for its
prior approval, which approval shall not be unreasonably withheld or delayed.

[Signature Page Follows]

 6
 

 

Please confirm that the
foregoing is in accordance with your understanding by signing and returning to
us the duplicates of this Agreement and the related indemnification agreement
which shall thereupon constitute binding agreements.

Very truly yours,

Castle Creek Financial LLC

	
     /s/
  William J. Ruh

  	
   

  

William J. Ruh

Executive Vice
President

Accepted and
agreed:

First Community Bancorp

on its behalf and on
behalf of the Company,

as defined above.

	
  By:

  	
     /s/ Victor R. Santoro

  	
   

  
	
  Name:

  	
  Victor R. Santoro

  
	
  Title:

  	
  Executive Vice President and CFO

  

 

 7

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