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HomeMy WebLinkAbout952077.tiffRESOLUTION RE: APPROVE SETTLEMENT AND RELEASE FOR STEVEN D. WYMER QUALIFIED SETTLEMENT FUND AND AUTHORIZE CHAIRMAN TO SIGN WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with a Settlement and Release for the Steven D. Wymer Qualified Settlement Fund, with terms and conditions being as stated in said settlement and release, and WHEREAS, after review, the Board deems it advisable to approve said settlement and release, a copy of which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Settlement and Release for the Steven D. Wymer Qualified Settlement Fund be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is, authorized to sign said settlement and release. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 4th day of October, A.D., 1995. cuet i'jty Clerk to the Board ecA Deputy Cle APP S TO FORM: BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO FXCI ISFII nATF r)F SIfNINf (AYF Dale K. Hall, Chairman arbara J. Kirkmeyer! Pro-Tem Georg e. Baxter Constance L. Harbert ebsfer b1 .-'1 /=/1 iyoivo 952077 CA0007 rpm yn„ g ?:rirlT{ lkfi SETTLEMENT AND RELEASE The undersigned acknowledges and agrees that upon receipt by Wells Fargo Bank, N.A., as Liquidating Agent for the Steven D. Wymer Qualified Settlement Fund, of good funds, by cashier's check or wire transfer, in the amount of 215,000.00 from Donald C. Andrews ("Andrews"), the Liquidating Agent is authorized: (1) to mark "Paid -in - Full across the face of the original promissory note dated December 3, 1991, in the face amount of $200,000.00, made by Donald C. Andrews payable to the order of Steven D. Wymer("Andrews Note") and to mark "Paid -in -Full across the face of the original promissory note dated December 3, 1991, in the face amount of $200,000.00, made by Wazee Street Partners, Ltd., a Colorado limited partnership and The Wazz Corporation, a Colorado corporation, payable to the order of Steven D. Wymer ("Wazee Note") (the Andrews Note and the Wazee Note are collectively referred to as the "Andrews/Wazee Obligations"); (2) to mark "Cancelled" on the face of the Conditional Stock Pledge, Assignment of Limited Partnership Interest and Security Agreement dated December 3, 1991, by and between Donald C. Andrews as Debtor, Wazee Street Partners, Ltd., as Partnership, and Steven D. Wymer, as Secured Party, securing the Andrews Note, and to mark "Cancelled" on the face of the Conditional Stock Pledge, Assignment of Limited Partnership Interest and Security Agreement dated December 3, 1991, by and between Wazee Street Partners, Ltd., and The Wazz Corporation, as Debtors and Donald C. Andrews, an individual, and Steven D. Wymer, as Secured Party, securing the Wazee Note (both security agreements collectively are referred to as the "Security Agreements"); and (3) to deliver the original Andrews/Wazee Obligations and Security Agreements to Andrews or his designated representative. The undersigned further agrees that this authorization shall act as an irrevocable waiver, covenant not to sue, release and promise to forever discharge any right the undersigned, and any owner, shareholder, partner, agent, assign, director, officer, beneficiary, attorney, subsidiary and affiliate may have to take any action as a creditor or otherwise against that certain property located at 1617-21 Wazee Street, Denver, Colorado (Lots 21 and 22, Block 15, East Denver, City and County and Denver, State of Colorado), or against Donald C. Andrews, Linda Andrews, Wazee Street Partners, Ltd., a Colorado limited partnership, The Wazz Corporation, a Colorado corporation, Erik K. Foster, the Erik K. Foster P.C., or Moye, Giles, O'Keefe, Vermeire & Gorrell, or any of their officers, directors, partners, shareholders, employees or attorneys, (collectively, the "Released Parties") for any reason whatsoever relating to the Andrews/Wazee Obligations and Security Agreements, including but not limited to any claim for any alleged fraudulent conveyance (collectively the "Released Claims"). The undersigned further acknowledges that there is a risk that subsequent to the execution of this Settlement and Release, the undersigned will discover claims before unknown or unanticipated at the time this Settlement and Release was executed which are Released Claims and which, if they were known by the undersigned on the date this Settlement and Release was executed, may have materially affected the undersigned's decision to execute this Settlement and Release. The 952977 undersigned expressly acknowledges and agrees by reason of this Settlement and Release the undersigned is assuming the risk of such unknown claims and agrees that the release of the Released Parties and Released Claims identified herein applies to such unknown claims. In connection therewith, the undersigned expressly waives the benefit of Section 1542 of the California Civil Code, which section reads as follows: "A general release does not extend to claims which the creditor does not know or suspect to exi-st in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." This Settlement and Release shall be construed in accordance with and all disputes hereunder shall be governed by the laws of the State of California. Dated: OCTOBER 4. 1995 / 71803.1 Weld County, CO By: 10/04/95 Typed Name: DALE K HALL CHAIRMAN, WELD COUNTY BOARD Title: OF COMMISSIONERS 952977 HARKINS & MICIIELMAN ATTORNEYS AT LAW 2301 DUPONT DRIVE, SUITE 41O IRVINR, CALIFORNIA 92716 (7141553-1800 FACSIMILE (714) 553-1680 September 28, 1995 Lee D. Morrison Assistant County Attorney Weld County Colorado 915 10th Street Greeley CO 80631 Re: Wazee Dear Lee: Enclosed is correspondence relative to the settlement on Wazee. The cover letter is fairly self explanatory. Please have the Settlement and Release signed and forward it to Riordan & McKinzie. If you have any questions give me a call. Please send a copy for our files. Best regards, Daniel M. Harkins September 28, 1995 952077 ORANGE COUNTY OFFICE 695 TOWN CENTER DRIVE SUITE 1500 COSTA MESA. CALIFORNIA 92626 (714) 433 -tan) FAX (714) 549-3244 L. ANDREW GIFFORD DIRECT DIAL (2131 229-8417 RIORDAN 8c McKINZIE A PROFESSIONAL LAW CORPORATION CALIFORNIA PLAZA 300 SOUTH GRAND AVENUE TWENTY-NINTH FLOOR LOS ANGELES. CALIFORNIA 90071 TELEPHONE (213) 629-4824 FAX (213) 229-8550 September 22, 1995 Weld County, CO Daniel Harkins, Esq. Harkins & Michelman 2301 Dupont Drive, Suite 410 Irvine, CA 92715 1 ZFCFTL ED SEP 2 5 1995 BY: VTLUE OCI EC_E 5743 CORSA AVENUE. SUITE 116 WESTLAKE VILLAGE. CA 91362 (818) 706-1800 (805) 496-4688 FAX (818) 706-2956 RICHARD J. RIORDAN (RETIRED) FILE NO. 24-125-007 Re: Donald C. Andrews/Wazee Street Partners Dear Wymer Qualified Settlement Fund Participant: In my letter to you dated September 7, 1995, I forwarded to you on behalf of our client Wells Fargo Bank, N.A.., the Liquidating Agent of the Steven D. Wymer Qualified Settlement Fund ("Fund"), the offer from Donald C. Andrews ("Andrews") to pay the Fund $200,000.00 in full satisfaction of any liability that Andrews, the Wazz Corporation ("Wazz"), or Wazee Street Partners, Ltd. ("Wazee") may have regarding two promissory notes each in the face amount of $200,000.00, that are made payable to Stephen D. Wymer ("Wymer"). That letter requested that you respond in writing to the undersigned and indicate what action you requested the Liquidating Agent to take with respect to Andrews's offer. The initial response of the Federal Deposit Insurance Corporation ("FDIC"), which holds a 46.2238% interest in the Fund, was to reject the Andrews offer. However, subsequent negotiations between Andrews and the FDIC resulted in Andrews increasing his settlement offer to $215,000.00, which the FDIC has accepted. In addition to the FDIC, I have received written or oral replies from the remaining beneficiaries of the Fund stating their wish that the Liquidating Agent accept the initial Andrews offer of $200,000.00 or the revised Andrews offer of $215,000.00. Erik Foster, Andrews's attorney, has requested that each of the beneficiaries of the Fund, and the Liquidating Agent, sign the enclosed Settlement and Release, which shall be delivered to Andrews or his designated representative, along with the original promissory notes and security agreements when the Liquidating Agent receives payment of good funds in the amount of $215,000.00 from 952077 RIORDAN & McKINZIE A PROFESSIONAL LAW CORPORATION Wymer Qualified Settlement Fund Participant September 22, 1995 Page 2 Andrews by cashier's check or wire transfer. So as to minimize delay and legal expenses to the Fund and to the beneficiaries of the Fund, at my suggestion Mr. Foster drafted the enclosed Settlement and Release in as simple a form that he believed would provide the appropriate protection for his client. For example, you will note that the Settlement and Release contains no indemnifications, and only releases against the released parties relating to the Andrews/Wazee Obligations and Security Agreements. I made some modifications to the Settlement and Release to make it comply with California law since the administration of the Fund is in California. I ask each of you to sign and date the original of the enclosed Settlement and Release and return the original to me for delivery to Andrews or his representative, along with the original promissory notes and the security agreements, upon the Liquidating Agent's receipt of $215,000.00 from Andrews. The payment from Andrews will be deposited to the Fund's general account and shall be distributed, forthwith, to the beneficiaries in their proportionate interest. The hearing scheduled for September 18, 1995, at 10:00 a.m. on the Liquidating Agent's Memorandum of Points and Authorities in Support of Motion for Disbursement and Report for the Period from January 1, 1995 through June 30, 1995 and Request for Orders was continued by the court, at my request, to October 2, 1995, at 10:00 a.m. At the continued hearing on October 2, 1995, I will advise the judge of the beneficiaries' acceptances of the Andrews settlement and request that the judge authorize the Liquidating Agent to mark the promissory notes "paid in full," mark the security agreements "cancelled," and deliver the original promissory notes and security agreements, along with such other documents as are mutually acceptable to Andrews, the Liquidating Agent, and the beneficiaries of the Fund upon payment of $215,000.00 from Andrews. If the judge is agreeable, I will submit a new proposed order requesting all of the relief of the prior proposed order, except that the authorization for the settlement of the promissory notes will be substituted in place of the requested authorization by the Liquidating Agent to assign the promissory notes in proportionate interests to the beneficiaries of the Fund. This procedure, if acceptable to the judge, will avoid the need for a further continuance of the hearing, immediately give the Liquidating Agent the order it desires authorizing the Liquidating Agent to accept the Andrews settlement and to deliver the promissory notes and security agreements, all without requiring the 952077 RIORDAN 8c McKINZIE A PROFESSIONAL LAW CORPORATION Wymer Qualified Settlement Fund Participant September 22, 1995 Page 3 Liquidating Agent to formally supplement and amend petition. If you have any objections to this procedure me know immediately. I am informed by Erik Foster that funds for payment will soon be available. I, therefore, urge you sign and return the enclosed Settlement and Release. questions, please contact me. Very t ours, L. Andr-w Gifford of RIORDAN & MCKINZIE its pending , please let the Andrews to promptly If you have LAG:mr Enclosure cc: Connie M. Lopez 952077 Hello