Document:

Exhibit 10.1

 

FIRST AMENDMENT

TO

CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of November 21, 2011 (the “Effective Date”), is entered into by and among Manhattan Bancorp, a California corporation (the “Borrower”), the lenders party to the Agreement (as defined below) (the “Lenders”) and Carpenter Fund Management Company, LLC, a Delaware limited liability company, as administrative agent for the Lenders (the “Administrative Agent”).

 

RECITALS

 

WHEREAS, the Borrower, the Administrative Agent and the Lenders are parties to that certain Credit Agreement, dated as of July 25, 2011 (the “Agreement”), pursuant to which the Lenders have extended and made available to the Borrower certain advances of money under a credit facility in the principal amount of up to Seven Million Dollars ($7,000,000);

 

WHEREAS, concurrently with the execution of this Amendment, the Borrower is entering into that certain Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with Carpenter Fund Manager GP, LLC, a Delaware limited liability company, Bank of Manhattan, N.A., a national banking association (“Manhattan”), CGB Holdings, Inc., a Delaware corporation, and Professional Business Bank, a California chartered commercial bank (“PBB”), that provides for, among other things, the merger of PBB with and into Manhattan; and

 

WHEREAS, the parties hereto find it necessary and desirable to make certain changes to the Agreement as more particularly described herein.

 

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

 

AGREEMENT

 

1.                                       Definitions.  All capitalized terms used in this Amendment and not otherwise defined herein shall have the meanings ascribed to such capitalized terms in the Agreement.

 

2.                                       Amendments Effective as of the Effective Date.  The following amendments to the Agreement shall be effective as of the Effective Date:

 

(i)                                     The following is hereby added as Section 1.04 of the Agreement:

 

“SECTION 1.04.           Superseding Provisions.  Notwithstanding anything to the contrary in this Agreement, the negotiation, execution and delivery of the Merger Agreement (including any and all agreements and instruments related thereto), and the consummation of the transactions contemplated thereby, are expressly permitted under this Agreement and the other Loan Documents and shall not be

 

 

deemed to implicate, conflict with, violate or constitute a breach under any provisions of this Agreement or the other Loan Documents.”

 

(ii)                                  The reference in Section 6.01(i) of the Agreement to “$18,000,000” is hereby deleted and replaced with “$16,000,000.”

 

3.                                       Amendments Effective as of the Closing of the Merger.  The following amendments to the Agreement shall be effective as of the Closing Date (as defined in the Merger Agreement):

 

(i)                                     All references in the Agreement to “Stock Pledge Agreement” and “Stock Pledge and Security Agreement” are hereby deleted in their entirety.

 

(ii)                                  Section 2.13 of the Agreement is hereby deleted in its entirety and the following is substituted in lieu thereof:

 

“SECTION 2.13.           Collateral.  All Borrowings and Loans shall be unsecured.”

 

(iii)                               Section 5.05 of the Agreement is hereby deleted in its entirety and the following is substituted in lieu thereof:

 

“SECTION 5.05.           Intentionally Omitted.”

 

(iv)                              Section 5.06 of the Agreement is hereby deleted in its entirety and the following is substituted in lieu thereof:

 

“SECTION 5.06.           Intentionally Omitted.”

 

(v)                                 Section 5.07 of the Agreement is hereby deleted in its entirety and the following is substituted in lieu thereof:

 

“SECTION 5.07.           Intentionally Omitted.”

 

(vi)                              Section 6.08 of the Agreement is hereby deleted in its entirety and the following is substituted in lieu thereof:

 

“SECTION 6.08.           Limitation on Leases.  The Borrower will not, and will not permit any Subsidiary to acquire ownership of any real property, or permit the amount paid by it for lease obligations under operating leases to which the Borrower or any Subsidiary is a party (including any such leases entered into in connection with the sale leaseback transactions) for any fiscal year of the Borrower to exceed $200,000; provided, however, that the foregoing limitation shall not apply to any real property acquired by, or lease obligations assumed by, the Borrower in connection with the Merger.”

 

(vii)                           Section 6.11 of the Agreement is hereby deleted in its entirety and the following is substituted in lieu thereof:

 

“SECTION 6.11.           Intentionally Omitted.”

 

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4.                                       Termination of Stock Pledge Agreement.  Effective as of the Closing Date (as defined in the Merger Agreement), the Stock Pledge Agreement shall be terminated, and the Pledged Collateral (as defined in the Stock Pledge Agreement) shall be released at such time, including, within three (3) days following the Closing Date, (i) the delivery to the Borrower by the Administrative Agent of the original Pledged Shares (as defined in the Stock Pledge Agreement) and original stock power(s) related thereto and (ii) the delivery to the Borrower by the Administrative Agent of evidence of termination of any and all UCC-1 Financing Statements of record as against Borrower in respect of the Pledged Collateral.

 

5.                                       Terms of Agreement.  Except as expressly modified hereby, all terms, conditions and provisions of the Agreement shall continue in full force and effect.

 

6.                                       Conflicting Terms.  In the event of any inconsistency or conflict between the Agreement and this Amendment, the terms, conditions and provisions of this Amendment shall govern and control.

 

7.                                       Severability.  Any provision of this Amendment that is held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provisions so held to be invalid or unenforceable.

 

8.                                       Successors and Assigns.  This Amendment is binding upon and shall inure to the benefit of Borrower, Agent, Lenders and their respective successors and permitted assigns, except as limited by applicable law and/or by the terms of the Agreement.

 

9.                                       Headings.  The headings in this Amendment are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision hereof.

 

10.                                 Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS.

 

11.                                 Integration.  This Amendment (and all Exhibits attached hereto, which are hereby incorporated by reference in this Amendment) and the Agreement, as modified hereby, constitute the entire agreement among the parties hereto and supersedes all prior and contemporaneous agreements, oral or written, among the parties concerning the subject matter hereof.  No term of this Amendment shall be amended, supplemented, modified or waived except by a writing signed by the parties hereto.

 

12.                                 Construction.  Each party to this Amendment has reviewed and participated in the formulation of the components of this Amendment.  Accordingly, this Amendment shall be construed simply according to its fair meaning and not strictly for or against any party.

 

13.                                 Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which, taken together, shall constitute one and the same agreement.

 

[Remainder of page intentionally left blank; signature page follows.]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first written above.

 

 

	
MANHATTAN BANCORP, as Borrower
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Jerry L. Robinson
    	
 
    
	
Name:
    	
Jerry   L. Robinson
    	
 
    
	
Title:
    	
President   and Chief Executive officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CARPENTER FUND MANAGEMENT
    	
 
    
	
COMPANY, LLC, as   Administrative Agent
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   James B. Jones
    	
 
    
	
Name:
    	
James   B. Jones
    	
 
    
	
Title:
    	
Managing   Member
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CARPENTER COMMUNITY BANCFUND,   L.P., as Lender
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   James B. Jones
    	
 
    
	
Name:
    	
James   B. Jones
    	
 
    
	
Title:
    	
Managing   Member
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CARPENTER COMMUNITY BANCFUND-A,   L.P., as Lender
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   James B. Jones
    	
 
    
	
Name:
    	
James   B. Jones
    	
 
    
	
Title:
    	
Managing   Member
    	
 
    

 

4ex10_1.htm

Exhibit 10.1

 

AMENDMENT NO. 1 TO

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT

THIS AMENDMENT NO. 1 TO SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT (“Amendment”) is made as of the 21st day of November, 2011, by and between DAVID M. LOBACH, JR. (“Executive”) and EMBASSY BANK FOR THE LEHIGH VALLEY, a Pennsylvania banking institution having its principal office in Bethlehem, Pennsylvania (the “Bank”).

WITNESSETH

WHEREAS, the Bank and the Executive entered into a Supplemental Executive Retirement Plan Agreement dated November 19, 2010 (the “SERP”), and

WHEREAS, the Bank and the Executive desire to amend the SERP to provide for gross-up payments for any excise tax on payments to be made by the Bank thereunder consistent with the gross-up language contained in the Executive’s Employment Agreement with the Bank.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

1.           The SERP is hereby amended to provide that, should the total of all amounts or benefits payable under the SERP, together with any other payments which Executive has a right to receive from the Bank, any affiliates or subsidiaries of the Bank, or any successors of any of the foregoing, result in the imposition of an excise tax under Section 4999 of the Internal Revenue Code (or any successor thereto), Executive shall be entitled to an additional “excise tax” adjustment payment in an amount such that, after the payment of all federal and state income and excise taxes, Executive will be in the same after-tax position as if no excise tax had been imposed.  Any payment or benefit which is required to be included under Sections 280G or 4999 of the Internal Revenue Code (or any successor provisions thereto) for purposes of determining whether an excise tax is payable shall be deemed a payment “made to Executive” or a payment “which Executive has a right to receive” for purposes of this provision.  The Bank (or its successor) shall be responsible for the costs of calculation of the deductibility of payments and benefits and the excise tax by the Bank’s independent certified accountant and tax counsel and shall notify Executive of the amount of excise tax prior to the time such excise tax is due.  If at any time it is determined that the additional “excise tax” adjustment payment previously made to Executive was insufficient to cover the effect of the excise tax, the gross-up payment pursuant to this provision shall be increased to make Executive whole, including an amount to cover the payment of any penalties resulting from any incorrect or late payment of the excise tax resulting from the prior calculation. All amounts required to be paid pursuant to this paragraph shall be paid at the time any withholding may be required (or, if earlier, the time Executive shall be required to pay such amounts) under applicable law, and any additional amounts to which Executive may be entitled shall be paid or reimbursed no later than fifteen (15) days following confirmation of such amount by the Bank’s independent certified accountant provided, however, that any payments to be made under this paragraph shall in all events be made no later than the end of Executive’s taxable year next following the taxable year in which the Executive remits such excise tax payments.  The parties recognize that the actual implementation of the provisions of this paragraph are complex and agree to deal with each other in good faith to resolve any questions or disagreements arising hereunder.

  

  

  

2.           Capitalized terms used herein, but not defined herein, shall have the meanings assigned to such terms in the SERP.

3.           In all other respects, the SERP, as amended above, is hereby ratified and confirmed by the Bank and the Executive.  All other provision of the SERP shall remain in full force and effect as amended hereby.

IN WITNESS WHEREOF, the parties, each intending to be legally bound, have executed this Amendment as of the date, month and year first above written.

	
ATTEST:

	 	
EMBASSY BANK FOR THE LEHIGH VALLEY

	  
	  	 	  	  	  
	
/s/      Lynne M. Neel

	 	
By:

	
/s/   Judith A. Hunsicker, SEVP CFO

	  
	  	 	  	  	  
	
WITNESS:

	 	
EXECUTIVE

	  
	  	 	  	  	  
	
/s/    Lynne M. Neel

	 	  	
/s/    David M. Lobach, Jr

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