Branch Purchase and Assumption Agreement by and between KeyBank National Association and Lorain National Bank Dated as of April 10, 1997
Exhibit 10(s)
by and between
KeyBank National Association
and
Lorain National Bank
Dated as of
April 10, 1997
Index of Definitions
Agreed Value shall mean, with regard to the Owned Real Estate and the
Leasehold Estate, its value as reflected by the Appraisal. Agreed Value shall mean, with regard to
the furniture, fixture and equipment which constitute part of the Assets, the net book value
determined as of the most recent month end preceding the Closing Date under generally accepted
accounting principles (the “Net Book Value”) of such furniture, fixture and equipment. In no event
shall the Agreed Value of the furniture, fixtures and equipment at any Branch be less than
$5,000.00.
Appraisal shall mean, with regard to the Owned Real Estate and the
Leasehold Estate, a limited summary format appraisal of its Fair Market
Value furnished by an Appraiser reasonably acceptable to Seller and
Purchaser. For purposes of this Agreement, “Appraiser” shall mean a
reputable appraiser certified as an MIA appraiser with at least five (5) years’ experience within
the previous ten (10) years as a real estate appraiser working in the geographic region in which
the Owned Real Estate or Leasehold Estate to be appraised is located, with knowledge of market
values and practices. The cost of the Appraisal shall be paid equally by each party hereto.
Branch(es)shall mean each of Seller’s branches identified on Schedule A hereto.
Code shall mean the Internal Revenue Code of 1986, as amended, and the
regulations promulgated thereunder.
Encumbrance shall mean all mortgages, claims, liens, encumbrances,
easements, limitations, restrictions, commitments and security interests, except for statutory
liens securing payments not yet due, liens incurred in the ordinary course of business and such
other liens or encumbrances which do not materially adversely affect the use of the properties or
assets subject thereto or affected thereby or which otherwise do not materially impair business
operations at such properties.
ERISA shall mean the Employee Retirement Income Security Act of 1974, as amended.
Excluded Deposits shall mean: (a) any individual retirement account or
similar account created by a trust for the exclusive benefit of an
individual or his beneficiaries in accordance with the provisions of
Section 408 of the Code and any simplified employee pension account
established in accordance with Section 408(k) of the Code which hold
investments in non-deposit instruments; (b) deposits which have been
pledged to secure, or as to which the owner is an obligor with regard to, any extension of credit
by Seller or an affiliate of Seller other than a Loan, (c) in the event that the Loans are
rejected by Purchaser pursuant to Section 1.08(b) hereof, deposits which have been pledged to
secure any Loan, and (d) any deposits obtained directly or indirectly through a “deposit broker”
(as that term is defined in Section 337.6(a)(5) of the Rules and Regulations of the FDIC, 12 CFR
337.6(a)(5)).
Fair Market Value shall mean, with regard to the Owned Real Estate and the Leasehold Estate, the
price in terms of money which it will bring, free and clear of all indebtedness and, in the case of
the Leasehold Estate, subject to all of the terms of the Lease creating such Leasehold Estate, if
exposed to the open market, allowing a reasonable time to find a purchaser, who buys with the
intention of using the Owned Real Estate or the Leasehold Estate for conducting the business of
banking.
Federal Funds Rate shall mean the “near closing bid” federal funds rate
published in the Wall Street Journal on the first business day following the Closing.
Knowledge shall mean, with regard to Article X hereof, the actual present knowledge as of the date
hereof, without further investigation, of any Vice President in KeyCorp’s Corporate Real Estate
Group and, with regard to Sections 3.01(j) and 5.01 hereof, the actual present knowledge as of the
date hereof, without further investigation, of any officer that holds the title of Senior Vice
President or above of Seller and has responsibility with respect to the operations conducted at the
Branches.
Mediator shall mean the firm of Deloitte & Touche LLP.
Permitted Exceptions shall mean, with respect to the Owned Real Estate or the Leasehold Estate, (a)
those standard printed exceptions appearing as Schedule B items in a standard American Land Title
Association (“ALTA”) owner’s or leasehold title insurance policy, as the case may be, (provided,
however, that if Purchaser elects to obtain a survey as to any of the Owned Real Estate or
Leasehold Estate, the Permitted Exceptions for such Owned Real Estate or Leasehold Estate shall not
include the standard exception for matters that would be disclosed by a survey, but shall include
specific exceptions, if any, disclosed by such survey provided that such specific exceptions are
otherwise included in the definition of Permitted Exceptions), (b) statutory liens for current real
estate taxes or assessments, both general and special, not yet due, or if due not yet delinquent,
or the validity of which is being contested in good faith by appropriate proceedings; (c) all
zoning laws and rulings, easements, rights of way, and restrictions of record; (d) such other
liens, imperfections in title, charges, easements, restrictions, and encumbrances (but in all cases
excluding those which secure borrowed money) which individually and in the aggregate are not
material in character, amount, or extent, or do not materially detract from the value of, or
materially interfere with, the present use of, any Owned Real Estate or any Leasehold Estate
subject thereto or affected thereby; (e) any exceptions to title arising from the action, inaction,
or status of Purchaser; and (f) such
other exceptions as are approved in writing by Purchaser.
Regulatory Approvals shall mean all approvals, permits, authorizations,
waivers, or consents of governmental agencies or authorities necessary or appropriate to permit
consummation of the transaction contemplated hereby.
This Branch Purchase and Assumption Agreement (“Agreement”), dated as of April 10, 1997, is made by
and between KeyBank National Association, a national banking association (“Seller”), and Lorain
National Bank, a
national banking association (“Purchaser”). Certain definitions used
herein are set forth in the Index of Definitions of this Agreement.
In consideration of the mutual promises hereinafter contained and other
good and valuable consideration, Seller and Purchaser hereby agree as
follows:
ARTICLE I
The Transaction
The Transaction
1.01 The Transaction. Subject to the terms and conditions set forth in this Agreement, at the
Closing, (a) Purchaser shall purchase the Assets and shall assume the Liabilities, and Seller shall
assign, transfer, convey, and deliver to Purchaser, free and clear of all Encumbrances, all of
Seller’s right, title and interest in and to such Assets and such Liabilities and (b) Purchaser
shall assume and thereafter honor and fully and timely pay, perform and discharge all of Seller’s
obligations and liabilities of every type and character relating to the Assets and Liabilities.
Purchaser understands and agrees that it is purchasing only the Assets (and assuming only the
Liabilities) specified in this Agreement and, except as may be expressly provided for in this
Agreement, Purchaser has no interest in, right to, or obligations relating to any other business
relationship which Seller may have with any customer of any of the Branches.
1.02 Assets and Liabilities Purchased and Assumed.
(a) Assets. For purposes of this Agreement, “Assets” shall mean:
(i) all real property owned by Seller on which Branches are
located, including all of Seller’s rights in and to all
improvements thereon (“Owned Real Estate”) and all leasehold
estates held by Seller (“Leasehold Estate”) in and to any real
estate on which any of the Branches is situated, including all
of Seller’s rights in and to all improvements thereon (“Leased
Real Estate”);
(ii) all furniture, fixtures and equipment that are located n
or necessary for the conduct of business in the ordinary
course at any Branch (including Automated Teller Machines
(“ATMs”), if any, and branch teller and platform automation
equipment, if any);
(iii) safe deposit agreements relating to safe deposit boxes
located at the Branches;
(iv) all loans (exclusive of any reserve for possible loan
losses) that are attributable to the Branches, including all
loans made in the ordinary course of business consistent with
Seller’s credit standards between the date of this Agreement
and the Closing, including all documents executed or delivered
in connection with any loan and any and all collateral
relating to any such loan and all rights in relation thereto
attributable to the Branches at the Closing (the “Loans”)
(unless the Loans are rejected by Purchaser pursuant to
Section 1.08(b) hereof);
(v) all rights of Seller under any service or similar contracts
in effect as of the Closing Date with non-affiliated third-party
service providers which relate solely to the operations of the
Branches to the extent such contracts are assignable;
(vi) all cash on hand (i.e., all xxxxx cash, vault cash, teller
cash, ATM cash, and prepaid postage) at the Branches as of the
Closing; and
(vii) all prepaid expenses identified as an asset on the final
closing statement.
(b) | Liabilities. For purposes of this Agreement, “Liabilities” shall mean all of Seller’s obligations and liabilities of every type and character relating to all deposit accounts, including accrued interest, which are reflected on the books of Seller as of the Closing and are attributable to the Branches, including, without limitation, all passbook accounts, statement savings accounts, checking, Money Market and NOW accounts, certificates of deposit, individual retirement accounts, simplified employee pension accounts, saving incentive match plan for employees accounts, Xxxxx accounts, and repurchase agreements except for the Excluded Deposits (the “Assumed Deposits”). Liabilities shall also include: |
(i) all obligations due under any service or similar contracts,
in effect at the Closing, relating to the operations of the
Branches, to the extent such contracts are included in
1.02(a)(v);
(ii) all of Seller’s obligations and liabilities, arising from
and after the Closing Date, to the extent attributable to the
Assets and the Assumed Deposits; and
(iii) all
accrued and unpaid expenses identified as a liability on the final closing statement.
1.03 Preliminary Closing Statement and Payment.
(a) | Preliminary Closing Statement. Not less than five (5) days prior to the Closing Date, Seller shall deliver to Purchaser a proposed preliminary closing statement, in the form of Schedule B to this Agreement, completed as at a date mutually agreed to by the parties. The parties shall agree upon the preliminary closing statement before the Closing Date, and it shall be the basis of a preliminary payment to be made to Purchaser’s account, or to Seller’s account, as the case may be, on the Closing Date (the “Preliminary Payment”). | ||
(b) | Preliminary Payment. Subject to the terms and conditions hereof, at the Closing, Seller shall wire transfer to Purchaser immediately available funds equal to: (i) the sum of (A) the amount of the Assumed Deposits (including accrued and unpaid interest thereon) reflected on the preliminary closing statement and (B) the amount of all accrued and unpaid expenses reflected as a liability on the preliminary closing statement; less (ii) an amount equal to the sum of: (A) X.X% of the Assumed Deposits based on a 30-day average prior to Closing; (provided, however, that for purposes of this Section 1.03(b)(ii)(A), “Assumed Deposits” shall not be deemed to include (1) any public funds or (2) any amounts relating to repurchase agreements); (B) the amount of cash on hand at the Branches as of the Closing; the Agreed Value of all furniture, fixtures, and equipment constituting part of the Assets; (D) the Agreed Value of the Owned Real Estate and the Leased Real Estate; (E) the amount of all prepaid expenses of Seller as reflected as an asset on the preliminary closing statement; (F) the Net Book Value of all Loans, plus accrued and unpaid interest thereon as reflected on the preliminary closing statement; and (G) the amount of estimated sales taxes, if any, to be paid by Purchaser in connection with the transaction contemplated hereby. | ||
(c) | Purchaser Payment. In the event that the amount equal to subclause (b)(ii) above exceeds the amount equal to subclause (b)(i) above, the amount of such excess shall constitute an amount due from Purchaser to Seller and shall be paid to Seller at the Closing. |
1.04
Final Closing Statement and Adjustment Payment. Not more
than
fifteen (15) days after the Closing Date, Seller shall provide Purchaser
with a proposed final closing statement, which shall be calculated as of
the Closing Date and the parties shall promptly agree upon the final closing
statement. The final closing statement shall be in a form consistent with
the preliminary closing statement. On the first business
day after Purchaser agrees to the final closing statement or Seller is
notified of any determination as to the final closing statement under
Section 1.05 below, Seller shall wire transfer to Purchaser (or Purchaser
shall wire transfer to Seller, as the case may be) in immediately
available funds an amount equal to the amount by which the final payment
reflected on the final closing statement indicates an amount in excess of
(or any amount less than) the Preliminary Payment paid at Closing (the
“Adjustment Payment”), plus interest, at a rate per annum equal to the
Federal Funds Rate.
1.05 Disputes and Mediation; Payment of Fees. If Purchaser disagrees
with the final closing statement, then Purchaser shall contact Seller and
Purchaser and Seller shall cooperate to resolve the matters in dispute. If
the parties are unable to agree on a final closing statement, then Purchaser
or Seller may submit the matter to the Mediator which shall
determine all disputed portions of the final closing statement; provided,
however, that if the fees of the Mediator as estimated by the Mediator
would exceed 50% of the net amount in dispute, the parties agree that
such firm will not be engaged by either party and that such net amount in
dispute will be equally apportioned between Seller and Purchaser. The
parties shall each pay one-half of the fees and expenses of the Mediator.
The final closing statement, as agreed upon by the parties and/or determined
under this subsection, shall be final and binding upon the parties.
1.06 Proration of Certain Expenses. All prepaid expenses and all
accrued and unpaid expenses shall be prorated between Purchaser and Seller
as of the Closing Date; provided, however, that (I) all property Taxes as
to the Owned Real Estate shall be prorated on the basis of the most recently
certified tax duplicate and rates; (ii) all real property taxes
and other expenses or charges required to be paid by Seller as tenant
under any lease pursuant to which Seller leases any of the Leased Real
Property (“Lease”) shall be prorated based upon amounts paid by Seller
during the current lease year as to any period that includes but extends
after the Closing Date; (iii) all utility payments paid (excluding any
such payment paid by Seller to a landlord, which shall be covered by
clause (ii) hereof) shall be prorated on the basis of the best information
available at the Closing Date. All security deposits under any Lease,
together with any accrued but unpaid interest payable thereon, shall be
credited to Seller. All prepaid expenses that are allocable to Purchaser
hereunder shall appear as an asset on the preliminary or final closing
statement. To the extent that expenses allocable to Seller hereunder have
been accrued and not paid by Seller prior to the Closing Date, they shall
appear as a liability on the preliminary or final closing statement.
There shall be no post-closing adjustment for any of the foregoing.
1.07 Allocation and Reimbursement of Real Estate Expenses. All
expenses attributable to the Owned Real Estate and the Leasehold Estate
incurred in connection with the acquisition of the Branches by Purchaser
shall be allocated to and solely borne by Purchaser except for standard
title insurance commitment fees and title examination fees for the Owned
Real Estate which shall be paid by Seller.
1.08 Loans.
(a) | Loan Information. Prior to the date hereof, Seller provided to Purchaser certain information relating to the Loans to be transferred to Purchaser, which included, among other data, summary information relating to loan delinquencies. | ||
(b) | Opportunity to Review and Reject Loans. Following the date hereof, Purchaser shall be provided with the opportunity to conduct a limited due diligence review of the Loans for the purpose of determining whether Purchaser desires to purchase the Loans in their entirety. Purchaser shall complete such due diligence review within a period of fourteen (14) days after the date upon which Purchaser is first provided access to documentation relating to the Loans. Within seven (7) days following the end of the fourteen (14) day period referred to in the immediately preceding sentence, Purchaser shall notify Seller as to whether Purchaser shall accept or reject the Loans, provided however, that Purchaser shall only be permitted to accept or reject all of the Loans other than overdraft lines directly attributable to the Assumed Deposits. In the event that Purchaser notifies Seller that it intends to reject the Loans, the payment under Section 1.03(b) shall be calculated without giving effect to any amounts described in (F) thereunder. |
(c) | Loan Documentation. Seller shall indemnify Purchaser for any and all losses which arise as a direct result of the failure of Seller to have delivered to Purchaser all necessary documentation with respect to any Loan, provided, however, that Seller shall not be obligated to indemnify Purchaser pursuant to this Section 1.08(c) in the event that Purchaser shall not have notified Seller of the missing documentation within sixty (60) days following the Closing. For purposes of this provision, a “loss” shall mean a loss of the principal balance of the affected Loan outstanding as of the Closing Date and any interest accrued thereon. |
1.09 Successor Custodian. Effective at the Closing, Seller hereby
appoints Purchaser as the successor custodian to Seller under the
Liabilities consisting of individual retirement accounts, simplified
employee pension accounts, saving incentive match plan for employee
accounts, and Xxxxx accounts and Purchaser hereby accepts from Seller the
appointment to serve in such capacity from and after the Closing Date.
ARTICLE II
Obligations of the Parties Prior to the Closing Date
2.01 Covenants of Seller. Seller hereby covenants to Purchaser that,
from the date hereof until the Closing Date or by such earlier time as may
be specified in this Agreement, it will do or cause the following to
occur:
(a) | Operation of Branches. Seller shall continue to operate and maintain the Branches in a manner consistent with its customary practices and in a condition substantially the same as exists on the date hereof (ordinary wear and tear and casualty excepted). | ||
(b) | Information Concerning Branches. Seller shall use its reasonable efforts to furnish Purchaser, its agents, or representatives reasonable access to, and permit Purchaser to make or cause to be made such reasonable investigation of, information and materials relating to the financial and physical condition of the Branches as Purchaser reasonably deems necessary or advisable; provided, further, that nothing in this Section 2.01(b) shall be deemed to require Seller to breach any obligation of confidentiality or to reveal any proprietary information, trade secrets, or marketing or strategic plans. |
(c) | Creation of Encumbrances. Seller shall not voluntarily create any Encumbrances affecting the Owned Real Estate. | ||
(d) | Insurance. Seller will maintain in effect until and including the Closing Date all casualty and public liability policies relating to the Branches and maintained by Seller on the date hereof or procure comparable replacement policies and maintain such replacement policies in effect until and including the Closing Date. | ||
(e) | Right to Intervene. In the event that any claim, protest, suit
or other proceeding is instituted against Purchaser under this
Agreement, Seller shall have the right, at its discretion and
expense, to intervene in such litigation, and Purchaser hereby consents to such intervention. |
||
(f) | Retention of Certain Assets. Seller shall retain all Assets as to which it has received notification pursuant to Section 2.02(c) hereof and the Book Value of such Assets shall not be included in the calculation of the Preliminary Payment or the Adjustment Payment. |
2.02 Covenants of Purchaser. Purchaser hereby covenants to Seller
that, from the date hereof until the Closing Date or by such earlier time
as may be specified in this Agreement, it will do or cause the following
to occur:
(a) | Certain Applications. Not later than twenty-one (21) days after the date hereof, Purchaser shall prepare and submit for filing, at no expense to Seller, applications to all regulatory agencies required by Purchaser to obtain the Regulatory Approvals. Purchaser shall promptly deliver to Seller a copy of such applications and any supplement, amendment, or item of additional information in connection therewith. Purchaser shall also promptly deliver to Seller a copy of each material notice, order, opinion, approval or denial and other item of correspondence received by Purchaser from the regulatory agencies and shall keep Seller promptly informed of developments and progress with respect to such matters. Purchaser hereby |
represents that it knows of no reason why it should not obtain all Regulatory Approvals in a timely manner. | |||
(b) | Real Estate Lease Consents. In connection with the consent and release noted in Section 2.03 hereof, Purchaser shall provide to Seller within five (5) days after the date hereof current financial information concerning Purchaser for Seller’s transmittal to the landlord under each Lease and shall provide promptly to Seller any other information requested by such landlord. | ||
(c) | Notice Regarding Certain Assets. In connection with the branch teller and platform automation equipment described in Section 1.02(a)(ii) hereof, Purchaser shall notify Seller, in writing, within forty-five (45) days of the date hereof, of any such Assets that Purchaser shall not purchase. |
2.03 Covenants of Both Parties. Seller hereby covenants to
Purchaser, and Purchaser hereby covenants to Seller, that, from the date
hereof until the Closing, such party shall cooperate fully in obtaining,
and make all reasonable efforts to obtain, any third party consents which
are required to consummate the transaction contemplated by this Agreement,
including, without limitation, (a) an estoppel certificate of each
landlord in the form attached hereto as Schedule G, if the landlord agrees
to execute such estoppel certificate, (b) the written consent of each
landlord under a Lease to the assignment and assumption by Purchaser of
such Lease or, if the landlord does not so consent, and if such consent is
necessary to validly effect such assignment or assumption or sublease, to
a sublease of the premises demised by such Lease, and (c) in either case,
the release of Seller from all obligations and liabilities under any such
Lease from and after the Closing Date (provided, however, that this
Section 2.03 shall not obligate Seller to make any payment or to execute
any indemnification or guaranty or other similar instrument which would
render Seller liable for any obligations, liabilities or duties of
Purchaser arising out of such Lease from and after the Closing Date). Each
of Seller and Purchaser also hereby covenant to the other that it shall
cooperate fully in promptly selecting an Appraiser and shall make all
reasonable efforts to obtain an Appraisal of the Owned Real Property and
the Leasehold Estate within thirty (30) days of the date hereof.
2.04 Seller’s and Purchaser’s Rights and Obligations Regarding Title
Matters.
(a) | Title Commitments. Seller, at its sole expense, shall deliver to Purchaser not later than thirty (30) days after the date hereof, with respect to the Owned Real Estate, title commitments for issuance of ALTA Owner’s Policies of Title Insurance (collectively, the “Title Commitments” and individually, a | ||
Title Commitment”) issued not earlier than thirty (30) days prior to the execution of this Agreement and issued by a title insurance company authorized to do business in the state in which the Owned Real Estate is located designated by Seller (the “Title Company”). | |||
(b) | Surveys. For thirty (30) days from the date hereof, Purchaser shall have the right, but not the obligation, to obtain, at Purchaser’s sole cost and expense, (i) surveys as to any or all of the Owned Real Estate or the Leasehold Estate and (ii) title commitments for issuance of ALTA Leasehold Policies of Title Insurance as to the Leasehold Estate from the Title Company (“Leasehold Title Commitment”). Purchaser shall cause a true and complete copy of each survey to be promptly delivered to Seller and to the Title Company. Purchaser shall cause a true and complete copy of each Leasehold Title Commitment to be promptly delivered to Seller. | ||
(c) | Title Defects. (i) Ten (10) days after receipt by Purchaser of an original Title Commitment or any survey or Leasehold Title Commitment obtained pursuant to Section 2.04(b) hereof, Purchaser shall give Seller and the Title Company written notice of any defect(s) disclosed in such Title Commitment, survey or Leasehold Title Commitment that: (w) is (are) not included in the exceptions specifically identified on the Title Commitment or Leasehold Title Commitment; (x) is(are) not included in clauses (a)-(d) of the definition of Permitted Exceptions related to the applicable Owned Real Estate or Leased Real Estate; (y) that materially adversely affect(s) the business of the Branch situated upon such Owned Real Estate or Leased Real |
Estate; and (z) which Purchaser does not approve. Failure of Purchaser to provide such notice on a timely basis shall constitute a waiver by Purchaser of any matter(s) disclosed in such Title Commitment, survey or Leasehold Title Commitment and thereupon such matter(s) shall be deemed included in clause (b) of the definition of Permitted Exceptions set forth in this Agreement. | |||
(ii) | If the notice referred to in (i) above is timely given by Purchaser, Seller shall, within ten (10) days of such notice, notify Purchaser and the Title Company as to whether Seller shall cure or remove any defect(s). Following Seller’s notice to Purchaser and the Title Company that Seller elects not to cure any defect(s), Purchaser must elect, within five (5) days, as its sole remedy hereunder with respect to such defect(s), to terminate this Agreement as to the Assets and Liabilities attributable to the Branch situated upon the affected Owned Real Estate and/or Leased Real Estate. Purchaser’s failure to make such an election shall be deemed to be a waiver of such defect(s) and such defect(s) shall be included in the Permitted Exceptions and shown as Permitted Exceptions in the deed and the title policy relating to such Owned Real Estate or Leasehold Estate. | ||
(iii) | Seller shall cause the Title Company to update the Title Commitments and Purchaser may, at its sole cost and expense, cause the Title Company to update Leasehold Title Commitments, as of the business day prior to the Closing Date. In the event that the updated Title Commitment or Leasehold Title Commitment as to any Owned Real Estate or Leasehold Estate discloses any defect(s) not included in the original Title Commitment, survey or Leasehold Title Commitment, the procedure set forth in (ii) above shall apply. |
ARTICLE III
(a) | Corporate Organization and Authority. Seller is a national banking association duly organized, validly existing, and in good standing under the laws of the United States of America with corporate power to carry on its business as presently conducted at the Branches. Seller is an insured bank, as defined in the Federal Deposit Insurance Act and applicable regulations thereunder (“FDIA”). Seller is a member of the Bank Insurance Fund of the FDIC (“BIF”) and pays deposit insurance assessments to BIF and the Savings Association Insurance Fund. Seller is in compliance in all material respects with all applicable fair lending laws, rules and regulations, including without limitation the Community Reinvestment Act of 1977, as amended. Seller has all requisite corporate power and authority and has taken all corporate action necessary to execute and deliver this Agreement and to consummate the transaction contemplated hereby, and this Agreement is a valid and binding obligation of Seller in accordance with its terms subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditor’s rights generally, whether applied at law or equity, and to general equity principals. | ||
(b) | Effective Agreement. Subject to the receipt of any and all Regulatory Approvals and required third party consents, the execution, delivery, and performance of this Agreement by Seller and the consummation of the transaction contemplated hereby, will not conflict with, result in the breach of, constitute a violation or default, result in the acceleration of payment or other obligations, or create an Encumbrance, under any of the provisions of the Charter or By-Laws of Seller, under any judgment, decree, or order, under any law, rule, or regulation of any government or agency thereof, or under any material contract or instrument to which Seller is subject, where such conflict, breach, violation, default, acceleration, or Encumbrance would have a material adverse effect on the business of any Branch or Seller’s ability to perform its obligations hereunder. | ||
(c) | Individual Retirement Accounts. The Individual Retirement Custodial Account Agreement (i.e. Internal Revenue Service Model Form 5305-A with certain supplementary provisions) used at the Branches materially meets the criteria for the establishment of an “individual retirement account” as specified in Section |
(a) | Corporate Organization, Authority and Compliance. Purchaser is a national bank duly organized, validly existing, and in good standing under the laws of the United States of America with corporate power to own its properties and to carry on its business as presently conducted, except where the failure of Purchaser to have such corporate power would not have a material adverse effect on the ability of Purchaser to perform its obligations hereunder. Purchaser is an insured bank, as defined in the FDIA. Purchaser has all requisite corporate power and authority and has taken all corporate action necessary to execute and deliver this Agreement and to consummate the transaction contemplated hereby, and this Agreement is a valid and binding obligation of Purchaser in accordance with its terms subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditor’s rights generally, whether applied at law or equity, and to general equity principals. Purchaser is in compliance with all applicable fair lending laws, rules and regulations including but not limited to the Community Reinvestment Act of 1977, as |
(ii) Purchaser is, and on a pro forma basis giving effect
to the transaction contemplated hereby will be, (A) at least
“well capitalized”, as defined for purposes of the FDIA, and
(B) in compliance with all capital requirements, standards and
ratios required by each state or federal bank regulator with
jurisdiction over Purchaser, including, without limitation, any
such higher requirements, standard or ratio as shall apply to
institutions engaging in the acquisition of insured institution
deposits, assets or branches, and no such regulator is likely
to, or has indicated that it will, condition any of the
Regulatory Approvals upon an increase in Purchaser’s capital or
compliance with any capital requirements, standard or ratio.
(iii) Purchaser has no knowledge that it will be required to
divest deposit liabilities, branches, loans or any business or
line of business as a condition to the receipt of any of the
Regulatory Approvals.
(iv) Each of the subsidiaries or affiliates of Purchaser that
is an insured depository institution was rated “Outstanding”
following its most recent Community Reinvestment Act examination
by the regulatory agency responsible for its supervision.
Purchaser has received no notice of and has no knowledge of any
planned or threatened objection by any community group to the
transactions contemplated hereby.
ARTICLE IV
as of the date hereof (the “Branch Employees”), and, as to each Branch
Employee, such employee’s date of hire and current compensation are listed
on attached Schedule C. At least ten days prior to the Closing Date,
Seller shall update Schedule C to a date within 15 days prior to the
Closing Date.
4.02 Actions to be Taken by Purchaser with Respect to Branch
Employees. Purchaser covenants to Seller that it will do or cause the
following to occur:
following to occur:
(a) | Offer of Employment. Seller shall make available and Purchaser shall hire, as of the Closing Date, all Branch Employees, at salaries, or at base wages, not less than the current salaries or base wages paid to such Branch Employees as of the Closing Date. Purchaser shall be responsible for all obligations (including any obligation to provide notices) or liabilities, if any, which may arise in connection with any Branch Employee under the Workers Adjustment and Retraining Notification Act (the “WARN Act”) and Purchaser shall indemnify Seller for any and all losses which Seller may incur under the WARN Act in connection with any Branch Employee due to actions taken by Purchaser. | ||
(b) | Employee Benefits. All Branch Employees shall be eligible to participate in Purchaser’s employee benefit plans and fringe benefit plans (including, without limitation, pension and profit sharing plans, retirement income and post retirement welfare benefits, health insurance benefits (medical and dental), disability, life and accident insurance, sickness benefit, vacation, employees’ loans, and banking privileges) on the same basis as such plans and benefits exist and are offered to employees of Purchaser with comparable positions with Purchaser. Purchaser shall credit such Branch Employees for their length of service with Seller, its predecessors, or its affiliates, for all purposes under each employee benefit and fringe benefit plan to be provided by Purchaser to such Branch Employees and for purposes of vesting and eligibility (but not for purposes of benefit accrual) under any pension benefit plan as defined in Section 3(2) of ERISA. | ||
(c) | Credited Sickness Days. If Purchaser offers a salary continuation or similar program for employees unable to work for medical reasons, the Branch Employees shall be credited under any program of Purchaser with at least the number of sickness |
and/or personal benefit days accrued under Seller’s program at the Closing Date. After the Closing Date, the Branch Employees shall accrue additional sickness and/or personal benefit days in accordance with the terms of Purchaser’s program. | |||
(d) | Pre-existing Condition. Purchaser agrees that any pre-existing condition clause in any of Purchaser’s health or disability insurance coverage shall not be applicable to the Branch Employees or their dependents. | ||
(e) | Severance Pay. Seller’s severance policy is attached hereto as Schedule D. Effective as of the Closing Date, Purchaser shall assume liability for all severance benefits payable to any Branch Employee who is terminated by Purchaser after the Closing Date. For a period of one (1) year following the Closing Date, Purchaser shall provide such benefit pursuant to individual separation pay agreements entered into with each Branch Employee on terms and conditions consistent in all respects with Seller’s severance policy (provided, however, that for purposes of determining whether the terms of Purchaser’s separation pay agreements are consistent with Seller’s severance policy (i) the second sentence of Section 2.11 of Seller’s severance policy shall be read exactly as such sentence is currently contained therein, except that for purposes of determining whether a position is comparable, the reference to a reduction in a Branch Employee’s Base Weekly Salary (as defined under Seller’s severance policy) shall be revised to require a 12% or greater reduction, as compared to 10% or greater reduction and (ii) references to certain types of benefits to be paid in addition to the separation pay benefit to be provided in accordance with the Separation Pay Schedule included in Section 3.3(c) shall refer to those benefits offered to current employees of the Purchaser), and Purchaser shall compute severance benefits by giving all Branch Employees full credit for all years of service with Seller, its affiliates, and predecessors, in accordance with Section 4.02(b). After the initial one-year period, Purchaser shall provide Branch Employees with severance benefits in accordance with Purchaser’s severance policy, if any, in accordance with their years of service as credited under this Agreement. |
(f) | Successor Employer. Purchaser agrees it will qualify as a
successor employer of Branch Employees for withholding tax purposes. |
||
(g) | Payment of Claims. Purchaser assumes responsibility for (I) payment of any medical, dental, health and disability claims incurred by Branch Employees on or after the Closing Date and (ii) Continuation Coverage (as defined in Section 4.03(d) below) to any Branch Employee (and each Branch Employee’s qualified beneficiaries) whose qualifying event occurs on or after the Closing Date. |
4.03 Actions to be Taken by Seller with Respect to Branch Employees.
Seller covenants to Purchaser that it will do or cause the following
to occur:
(a) | Accrued Benefits. Seller agrees to remain responsible for the payment of all accrued benefits to such Branch Employees who are participants or retirees in accordance with the terms of Seller’s retirement income plans. Purchaser shall not at any time assume any liability for the benefits of any active or any terminated, vested, or retired participants whose benefit accrued prior to the Closing Date under Seller’s retirement income plans. | ||
(b) | Payment of Claims. Seller shall retain the responsibility for payment of all medical, dental, health and disability claims incurred by a Branch Employee prior to the Closing Date, and Purchaser shall not assume any liability with respect to such claims. | ||
(c) | Continuation Coverage. Seller shall be responsible for providing any Branch Employee whose “qualifying event,” within the meaning of Section 4980B(f) of the Code, occurs prior to the Closing Date (and such Branch Employee’s “qualified beneficiaries” within the meaning of Section 4980B(g) of the Code) with the continuation of group health coverage required by Section 4980B(f) of the Code (“Continuation Coverage”) under the terms of the health plan maintained by Seller. | ||
(d) | Retired or Terminated Branch Employees. Seller agrees that it shall retain, consistent with its normal employment practices, all liability and obligation, if any (including, without |
limitation, the liability and obligation for all wages, salary, vacation pay and unemployment, medical, dental, health and disability benefits), for those former employees of the Branches who retired or terminated employment prior to the Closing Date, but shall in all other instances cease to have any liability for Branch Employees with regard to the foregoing provisions on or after the Closing Date, except as otherwise required by law. |
ARTICLE V
The party requesting assistance or cooperation shall bear the
other party’s reasonable out-of-pocket expenses in complying with such
request to the extent that those expenses are attributable to fees and
other costs of unaffiliated third-party service providers.
ARTICLE VI
the assignment to and assumption by Purchaser of that Lease or to a
sublease by Seller to Purchaser of the Leased Real Estate demised by the
Lease and such consent is required under the terms of the Lease, the
Seller shall have the right, exercisable by written notice no later than
the Closing Date, to terminate the Agreement: (a) as to the Leasehold
Estate demised by such Lease and all furniture, fixtures and equipment
located thereon; or (b) as to the Assets and Liabilities relating to the
Branch situated upon such Leased Real Estate. Furthermore, and also
notwithstanding anything to the contrary herein, if, by not later than
five (5) days prior to the Closing Date, a landlord under a Lease shall
not have agreed to the release of Seller from all obligations and
liabilities under the Lease from and after the Closing Date, but either
the landlord shall have consented to a sublease by Seller to Purchaser of
the Leased Real Estate demised by the Lease (if the Lease requires such
consent) or such a sublease does not require the landlord’s consent, then
Seller and Purchaser agree to proceed with the transactions contemplated
by this Agreement as to the Branch located at the Leased Real Estate
demised by such Lease, except that Seller and Purchaser shall enter into a
sublease agreement by which Seller shall sublease the Leased Real Estate
and Purchaser shall agree to indemnify Seller for any loss, cost, charge
or liability incurred by Seller as a result of the failure to obtain the
landlord’s release. If the parties are to enter into a sublease, then
Seller shall provide to Purchaser promptly after the lapse of such
deadline a form of sublease which shall contain substantially the same
terms and conditions as the corresponding Lease, with appropriate
modifications to reflect the sublease nature.
ARTICLE VII
7.02 Parties’ Actions at the Closing. At the Closing, Seller and
Purchaser shall, except as otherwise provided in this Agreement, take such
actions, including the execution and delivery of certain documentation,
all as set forth on Schedule E, and including the filing or recording of
any and all documents (including, without limitation, deeds) necessary in
order to transfer legal and equitable title to the Owned Real Estate to
Purchaser as of the Closing Date.
ARTICLE VIII
Transitional Action by Purchaser and Seller. Purchaser and Seller
shall cooperate in good faith and will use all reasonable efforts to
comply with the various transitional matters set forth in Schedule F
hereto.
ARTICLE IX
among the Assets on the basis of an allocation to be mutually agreed upon
by Purchaser and Seller within thirty (30) days after the Closing, and
that is consistent with Section 1060 of the Code.
whether insured or uninsured, and shall not be substantially repaired or
restored by the Closing Date, or if the land where any of the Branches is
located or any building thereon or any part thereof shall be taken by
condemnation or exercise of the power of eminent domain, or if proceedings
therefor have commenced or been threatened, on or prior to the Closing
Date and such taking materially affects or would materially affect the
operations of the Branch related thereto, Purchaser shall have the right
and option exercisable within 10 days of notification of such damage or
taking to elect (i) to terminate this Agreement with respect to the
affected Branch, and the purchase price shall be adjusted to reflect the
decrease in the value of the assets and liabilities of the affected Branch
assigned thereto pursuant to the terms hereof, or (ii) to cause Seller to
assign to Purchaser as of the Closing Date all of Seller’s rights and
claims against any third party by reason of such fire or other casualty,
including without limitation, any insurance claims.
ARTICLE X
(a) | Prior to the date hereof, Seller shall have provided to Purchaser Phase I audit reports, as of a date no earlier than January 1, 1994, undertaken by Seller with respect to the Owned Real Estate (the “Phase I Reports”). Except as set forth in the Phase I Reports, to the Knowledge of Seller, the Branches are in compliance with all environmental laws, rules and regulations of the United States of America and of states and localities in which the Branches are located, except for any such noncompliance which, individually or in the aggregate, has not had, and is not expected to have, to the Knowledge of Seller, a material adverse effect on the business of any Branch. | ||
(b) | Except as may be set forth in the Phase I Reports, to the Knowledge of Seller, Seller has no liability with respect to the Branches which, taken singularly or as a whole, if adversely determined, would have a material adverse effect on the business of any Branch (i) relating to the handling, storage, treatment, |
use, disposal, discharge or release into the environment of any
hazardous material or waste at, on or from the Owned Real Estate
or the Leased Real Estate, (ii) for the release or emission of
any hazardous material from, on, under, or within the Owned Real
Estate or Leased Real Estate into the air, water, surface water,
ground water, land surface, or subsurface strata, (iii) for the
disposal of any hazardous material on the Owned Real Estate or
Leased Real Estate or (iv) for the contamination of the Owned Real Estate or Leased Real Estate with any hazardous material. |
(a) | If any Phase I Report indicates the presence of any hazardous substance with respect to any Owned Real Estate, and such presence is a condition that requires remediation pursuant to appropriate governmental standards, then, at Purchaser’s request made in writing to Seller within ten (10) days after the date of this Agreement, and at Purchaser’s sole cost and expense, Seller shall arrange to cause a consultant approved by both Seller and Purchaser to conduct a Phase II environmental audit as to such hazardous substance and deliver to Seller and Purchaser the results of such audit within forty-five days after the request by Purchaser. If the Phase II audit report confirms that such presence requires remediation pursuant to appropriate governmental standards and if such presence, if not remediated, would materially adversely affect the business of the Branch situated upon the Owned Real Estate and Purchaser requests that Seller take remedial action with respect thereto, then Purchaser shall so notify Seller in writing promptly after receipt of the Phase II environmental audit report, whereupon Seller shall have the right to (i) terminate this Agreement as it relates to the Assets and Liabilities of the affected Branch, (ii) undertake remedial action as to such presence at its sole cost and expense so that no material continuing violation of any |
environmental law exists (provided, however, that the timing of any such remediation shall be coordinated with Purchaser to minimize any resulting business interruption), or (iii) agree to indemnify Purchaser for all actual costs and expenses incurred by Purchaser to remediate the Owned Real Estate as to such presence so that no material continuing violation of any environmental law exists. | |||
(b) | If Purchaser fails to request a Phase II environmental audit or to exercise its right to make a request that Seller remediate any Owned Real Estate in each case as and when required above, then Purchaser shall be bound to the terms of this Agreement without a right of termination except as provided in Article XI and without a further right to request or to require any Seller remediation or indemnification. Any termination by Seller under this Article X shall neither create nor result in any liability of the Seller to the Purchaser. |
ARTICLE XI
(a) | By either Purchaser or Seller, in writing, if the Closing has
not occurred on or before the earlier of the nine (9) month anniversary of this Agreement; |
||
(b) | At any time prior to the Closing Date by the mutual consent in writing of Purchaser and Seller; | ||
(c) | By Purchaser or Seller as to the Owned Real Estate and/or Leasehold Estate and all furniture, fixture and equipment located thereon, all of the Assets and Liabilities relating to the affected Branch, or as to the Agreement in its entirety, as provided, in each case, in Section 2.04(c), 6.03 or 10.02; | ||
(d) | By Purchaser in writing if and when, at any time prior to the Closing, any condition of its obligations hereunder set forth in Section 6.01 of this Agreement becomes incapable of being |
fulfilled and such condition has not been waived by Purchaser; | |||
(e) | By Seller in writing if and when, at any time prior to the Closing, any condition of its obligations hereunder set forth in Section 6.01 of this Agreement becomes incapable of being fulfilled and such condition has not been waived by Seller; | ||
(f) | At any time prior to the Closing Date by Purchaser or Seller in writing if the other continues to be in breach of any representation and warranty (as if such representation and warranty had been made on and as of the date of the notice of breach referred to below unless a different time is specified in any such representation and warranty), covenant, or agreement in any material respect and such breach has not been cured within twenty-five (25) days after the giving of notice to the breaching party of such breach; or | ||
(g) | By Purchaser or Seller in writing at any time after any applicable regulatory authority has denied approval of any application of Purchaser for approval of the transaction contemplated hereby. |
ARTICLE XII
of any obligors or guarantors thereunder, or the value or adequacy of such
collateral). EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED FOR IN THIS
AGREEMENT, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER WITH
RESPECT TO THE ASSETS OR THE LIABILITIES, EXPRESS OR IMPLIED, INCLUDING,
WITHOUT LIMITATION, ANY WARRANTIES WITH RESPECT TO MERCHANTABILITY,
FITNESS, TITLE, ENFORCEABILITY, COLLECTIBILITY, DOCUMENTATION OR FREEDOM
FROM LIENS OR ENCUMBRANCES (IN WHOLE OR IN PART).
If to Purchaser:
Lorain National Bank
000 Xxxxxxxx
Xxxxxx, XX 00000
Facsimile: 000-000-0000
Attention: Xxxxx X. Xxxx, President & CEO
000 Xxxxxxxx
Xxxxxx, XX 00000
Facsimile: 000-000-0000
Attention: Xxxxx X. Xxxx, President & CEO
with a copy to:
Xxxxxx Xxxxx, Esq.
Xxxxxx & Blank Co.
0000 X. Xxxxxxx Xxxxxx
Xxxxxx, XX 00000
Facsimile: 000-000-0000
Xxxxxx & Blank Co.
0000 X. Xxxxxxx Xxxxxx
Xxxxxx, XX 00000
Facsimile: 000-000-0000
If to Seller:
KeyCorp
000 Xxxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Facsimile: 000-000-0000
Attention: Xxxxxxx X. Xxxxxxx
000 Xxxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Facsimile: 000-000-0000
Attention: Xxxxxxx X. Xxxxxxx
with a copy to the following:
KeyCorp
000 Xxxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Facsimile: 000-000-0000
Attention: Xxxxxx X. Xxxxxxx, Esq.
000 Xxxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Facsimile: 000-000-0000
Attention: Xxxxxx X. Xxxxxxx, Esq.
or such other person or address as any such party may designate by notice
to the other parties, and shall be deemed to have been given as of the
date received.
12.08 Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Ohio. If any part
of this Agreement is declared illegal by a court of competent jurisdiction,
the remaining parts shall remain in full force and effect.
PURCHASER:
|
SELLER: | |
Lorain National Bank
|
KeyBank National Association | |
By: /s/ Xxxxx X. Xxxx
|
By: /s/ Xxxxxxx X. Xxxxxxx | |
ATTEST: /s/ Xxxxxxx X. Xxxxxxxx TITLE: President & CEO |
ATTEST: /s/ Xxxxxxx X. Xxxx TITLE: Vice President |
SCHEDULES
TO
Schedule A Branches to be Purchased |
S-2 | |||
Schedule B Form of Preliminary Closing Statement |
S-3 | |||
Schedule C Employee List |
S-4 | |||
Schedule D Severance Plan |
S-5 | |||
Schedule E Actions to be Taken At Closing |
S-6 | |||
Attachment 1 - Instrument of Assumption |
S-7 | |||
Attachment 2 - Xxxx of Sale and Receipt |
X-0 | |||
Xxxxxxxxxx 0 - Xxxxxxx Xxxxxxxx Deed for Ohio |
S-9 | |||
Attachment 4 - Assignment and Assumption of Lease |
S-12 | |||
Schedule F Transitional Matters |
S-14 | |||
Schedule G Landlord Estoppel Certificate |
S-18 | |||
Schedule H (“Confidential Information”) |
S-21 |
NOTE: Schedules to Branch Purchase and Assumption Agreement are not
included as part of this filing.
AMENDMENT NO. 1
This Amendment No. 1 (this “Amendment”) dated as of September 9,
1997, is entered into by and between KeyBank National Association, a
national banking association (the “Seller”) and Lorain National Bank, a
national banking association (the “Purchaser”).
Reference is made to the Branch Purchase and Assumption Agreement
dated as of April 10, 1997 (the “Agreement”) regarding Purchaser’s
purchase of certain assets and assumption of certain liabilities of three
(3) branches from Seller. Unless otherwise changed in this Amendment,
terms used herein, which are defined in the Agreement, are used herein
with the meanings therein described to them. The Agreement as amended by
this Amendment is and shall continue to be in full force and effect and
shall not be affected by this Amendment except and only to the extent
specified herein.
The Agreement provided that the Closing of the transaction would be
effective at 11:59 p.m. on Friday, September 12, 1997. The primary
purpose of this Amendment is to modify the Agreement to reflect that the
transaction will close on Friday, September 12, 1997, but will have an
Effective Time (as that term is defined herein) as of 12:01 a.m. Monday,
September 15, 1997. This Amendment also removes the requirement that
Purchaser obtain new telephone numbers for the Branches in Purchaser’s
name.
2.1.1. Section 1.01 is amended, such that the reference to the
term “Closing” is deleted and in place thereof is inserted the term
“Effective Time”.
2.1.2. Section 1.02(a)(iv) is amended, such that each
reference to the term “Closing” is deleted and in place thereof, in
each instance, is inserted the term “Effective Time”.
2.1.3. Section 1.02(a)(v) is amended, such that the reference
to the term “Closing Date” is deleted and in place thereof is
inserted the term “Effective Time”.
2.1.4. Section 1.02(a)(vi) is amended, such that the reference
to the term “Closing” is deleted and in place thereof is inserted the
term “Effective Time”.
2.1.5. Section 1.02(b) is amended, such that the reference to
the term “Closing” is deleted and in place thereof is inserted the
term “Effective Time”.
2.1.6.
Section 1.02(b)(i) is amended, such that the reference to the term “Closing” is deleted and in place thereof is inserted the
term “Effective Time”.
2.1.7. Section 1.02(b)(ii) is amended, such that the reference
to the term “Closing Date” is deleted and in place thereof is
inserted the term “Effective Time”.
2.1.8. Section 1.03(b) is amended and restated as follows:
Preliminary Payment. Subject to the terms and conditions
hereof, by no later than 12:00 p.m. on the Closing Date, Seller
shall wire transfer to Purchaser immediately available funds
equal to: (i) the sum of (A) the amount of the Assumed Deposits
(including accrued and unpaid interest thereon) reflected on
the preliminary closing statement; (B) the amount of all
accrued and unpaid expenses reflected as a liability on the
preliminary closing statement; and (C) the aggregate of all
prepaid safe deposit rental payments prorated to the Effective
Time; less (ii) an amount equal to the sum of: (A) X.X% of the
Assumed Deposits based upon an estimated 30-day average prior
to the Effective Time; (provided, however, that for purposes of
this Section 1.03(b)(ii)(A), “Assumed Deposits” shall not be
deemed to include (1) any public funds or (2) any amounts
relating to repurchase agreements); (B) the amount of cash on
hand at the Branches as reflected on the preliminary closing
statement; (C) the Agreed Value of all furniture, fixtures, and
equipment constituting part of the Assets; (D) the Agreed Value
of the Owned Real Estate and the Leased Real Estate; (E) the
amount of all prepaid expenses of Seller as reflected as an
asset on the preliminary closing statement; (F) the Net Book
Value of all Loans, plus accrued and unpaid interest thereon as
reflected on the preliminary closing statement; and (G) the
amount of estimated sales taxes, if any, to be paid by
Purchaser in connection with the transaction contemplated
hereby.
2.1.9. Section 1.04 is amended, such that the reference to the
phrase “at Closing” in the last sentence of this Section 1.04 is deleted
and in place thereof is inserted the phrase “on the Closing Date or at the
Closing, as the case may be”.
2.1.10. Section 1.08(c) is amended, such that the reference to
the term “Closing” is deleted and in place thereof is inserted the term
“Closing Date”; and Section 1.08(c) is further amended, such that the
reference to the term “Closing Date” is deleted and in place thereof is
inserted the term “Effective Time”.
2.1.11. Section 1.09 is amended, such that the reference to
the term “Closing” is deleted and in place thereof is inserted the term
“Effective Time”.
2.2. Amendments to Article II; Obligations of the Parties Prior to
the Closing Date. Article II of the Agreement shall be and hereby is
amended as follows:
2.2.1. Section 2.01(d) is amended and restated in its entirety
as follows:
2.2.2. Section 2.02 is amended, such that the reference to the
term “Closing Date” is deleted and in place thereof is inserted the
term “Closing”.
2.3.1. Section 3.03 is amended, such that each reference to
the term “Closing” is deleted and in place thereof, in each instance,
is inserted the term “Closing Date”.
Agreement shall be and hereby is amended as follows:
2.4.1.
Section 4.02(c) is amended, such that each reference to the term “Closing Date” is deleted and in place thereof, in each
instance, is inserted the term “Effective Time”.
2.4.2. The second sentence of Section 4.02(e) is amended and
restated in its entirety as follows:
Effective as of the Closing Date, Purchaser shall assume
liability for all severance benefits payable to any Branch
Employee who is terminated by Purchaser on or after the Closing
Date.
2.4.3. Section 4.04 is amended, such that the initial phrase
“On and after the Closing Date” is deleted and in place thereof is
inserted the phrase “Effective upon the Closing Date”.
2.5.1. Section 6.01(b) is amended, such that the first and
third references to the term “Closing Date” are deleted and in place
thereof, in each instance, is inserted the term “Closing”.
2.5.2. Section 6.01(c) is amended, such that the first, third,
and fourth references to the term “Closing Date” are deleted and in
place thereof, in each instance, is inserted the term “Closing”.
2.5.3. Section 6.03 is amended, such that each reference to
the term “Closing Date” in the first sentence of this Section 6.03 is
deleted and in place thereof, in each instance, is inserted the term
“Closing”; and Section 6.03 is further amended, such that the first
reference to the term “Closing Date” in the second sentence of this
Section 6.03 is deleted and in place thereof is inserted the term
“Closing”.
2.6.1. Section 7.01 is amended and restated in its entirety to
read as follows:
7.01 Closing, Closing Date and Effective Time. The Transaction
contemplated hereby shall occur at a closing (the “Closing”) to
be held in the offices of Seller, located at 000 Xxxxxx Xxxxxx,
Xxxxxxxxx, Xxxx 00000, or via courier or facsimile transmission as Seller may designate, on Friday, September 12, 1997, or such
other date as Seller in its discretion may designate, which
date shall be reasonably acceptable to Purchaser. The “Closing
Date” shall be Monday, September 15, 1997. The “Effective
Time” of this Agreement for purposes of making calculations and
for other purposes specifically referred to in this Agreement
shall be as of 12:01 a.m. on Monday, September 15, 1997. In
addition, the Closing shall be deemed to have been consummated
and final as of the Effective Time. All actions taken and
documents delivered at the Closing will be deemed to have been
taken and executed simultaneously, and no action will be deemed
taken nor any document deemed delivered until all have been
taken and delivered. Both parties acknowledge that time is
of the essence with respect to consummating the transactions
contemplated hereby.
2.6.2. Section 7.03 is added to Article VII as follows:
2.7.1. Section 9.03 is amended, such that the first reference
to the phrase “at the Closing” is deleted and in place thereof is
inserted the phrase “on the Closing Date or at the Closing, as the
case may be”; and Section 9.03 is further amended, such that the
second reference to the term “Closing” is deleted and in place
thereof is inserted the phrase “Closing Date or the Closing,
respectively,”.
2.7.2. Section 9.06 is amended, such that the reference to the
term “Closing Date” is deleted and in place thereof is inserted the
term “Effective Time”.
2.8.1. Section 11.01(a) is amended, such that the phrase “the
earlier of” is deleted.
2.8.2. Section 11.01(d) is amended, such that the reference to
the term “Closing” is deleted and in place thereof is inserted the
term “Closing Date”.
2.8.3. Section 11.01(e) is amended, such that the reference to
the term “Closing” is deleted and in place thereof is inserted the
term “Closing Date”.
2.9.1. The paragraph entitled “Delivery of Documentation” set
forth under the Section “Seller’s Actions at the Closing” is amended
and restated as follows:
Delivery of Documentation. Execute, acknowledge, and/or
deliver to Purchaser, dated as of the Closing Date, the
certificates of Seller contemplated by Section 6.01, the Xxxx
of Sale and Receipt in the form of Attachment 2, Limited
Warranty Deed in the form of Attachment 3 for the Owned Real
Estate upon which each Branch is situated dated as of the
Closing, the Assignment and Assumption of Lease in the form of
Attachment 4 for the Leased Real Estate upon which each Branch
is situated, all other documents required to be delivered to
Purchaser by Seller at the Closing pursuant to the terms of
this Agreement, and any other documents which Purchaser has
identified to Seller at a reasonable time prior to the Closing
that are necessary or reasonably advisable to consummate the
transaction contemplated by the Agreement.
2.9.2. The paragraph entitled “Delivery of Funds” set forth
under the Section “Seller’s Actions at the Closing” is amended and
restated as follows:
Delivery of Funds. Deliver to Purchaser any funds required to
be paid by Seller to Purchaser no later than 12:00 p.m. on the
Closing Date pursuant to the terms of this Agreement.
2.9.3. Attachment 1: Instrument of Assumption, paragraph (b)
is amended, such that the reference to the term “Closing Date” is
deleted and in place thereof is inserted the term “Effective Time”.
2.10.1. Schedule F, paragraph (a) under the heading
“Transitional Actions by Purchaser” is amended, such that the first
sentence is restated as follows: “From and after the Effective Time,
Purchaser shall:(i). . .”
2.10.2. Schedule F, paragraph (b) under the heading
“Transitional Actions by Purchaser” is amended such that the
reference to the term “Closing Date” in the first sentence is
deleted and in place thereof is inserted the term “Effective Time”.
2.10.3. Schedule F, paragraph (c) under the heading
“Transitional Actions by Purchaser” is amended, such that the second
reference to the term “Closing Date” is deleted and in place thereof
is inserted the term “Effective Time”.
2.10.4. Schedule F, paragraph (d) under the heading
“Transitional Actions by Purchaser” is amended, such that each
reference to the term “Closing Date” is deleted and in place thereof,
in each instance, is inserted the term “Effective Time”.
2.10.5. Schedule F, paragraph (e) under the heading
“Transitional Actions by Purchaser” is amended, such that each
reference to the term “Closing Date” is deleted and in place thereof,
in each instance, is inserted the term “Effective Time”.
2.10.6. Schedule F, paragraph (g) under the heading
“Transitional Actions by Purchaser” is amended, such that the
reference to the term “Closing Date” is deleted and in place thereof
is inserted the term “Effective Time”.
2.10.7. Schedule F, paragraph (h) under the heading
“Transitional Actions by Purchaser” is deleted.
2.10.8. Schedule F, paragraph (i) under the heading
“Transitional Actions by Purchaser” is amended, such that the second
sentence is restated as follows: “Purchaser shall notify affected
customers to destroy the old ATM/Debit cards and shall notify
customers of standard withdrawal limits beginning on the date of the
Closing.
2.10.9. Schedule F, the second paragraph of paragraph (a)
under the heading “Transitional Actions by Seller” is amended, such
that the phrase “As early as practicable after the Closing Date” is
deleted and in place thereof is inserted the phrase “No later than
the Closing Date”.
2.10.10. Schedule F, paragraph (f) under the heading
“Transitional Actions by Seller” is amended, such that the reference
to the term “Closing Date” is deleted and in place thereof is
inserted the term “Effective Time”.
2.10.11. Schedule F, paragraph (g) under the heading
“Transitional Actions by Seller” is amended such that the phrase “on
the Closing Date” is deleted and in place thereof is inserted the
phrase “on the date of the Closing”.
2.10.12. Schedule F, under the heading “Transitional Actions
by Seller” is amended, such that a new paragraph (h) is inserted to
read as follows:
2.10.13. Schedule F, paragraph (b) under the heading
“Transitional Action by Both Parties” is amended, such that the
reference to the term “Closing Date” in the first sentence is
deleted and in place thereof is inserted the term “Effective Time”.
2.10.14. Schedule F, paragraph (e) under the heading
“Transitional Action by Both Parties” is amended, such that each
reference to the term “Closing Date” in the last sentence is deleted
and in place thereof, in each instance, is inserted the term
“Effective Time”.
2.10.15. Schedule F, paragraph (f) under the heading
“Transitional Action by Both Parties” is amended, such that each
reference to the term “Closing Date” is deleted and in place thereof,
in each instance, is inserted the term “Effective Time”.
LORAIN NATIONAL BANK | ||
By: /s/ Xxxxx X. Xxxx | ||
Title: President & CEO | ||
KEYBANK NATIONAL ASSOCIATION | ||
By: /s/ Xxxxxxx X. Xxxxxxx | ||
Title: Senior Vice President |