Document:

exv4w2

 

EXIHIBIT 4.2

April 19, 2008

Dear Fellow Stockholder:

     Your Board of Directors has announced the adoption of a Stockholder Rights Plan. The Plan
replaces a substantially similar plan that was adopted in 1998 and that will expire by its terms on
April 19, 2008. The Plan provides for a dividend distribution of rights to purchase shares of
Furmanite’s Series B Junior Participating Preferred Stock (or, in certain circumstances, Common
Stock), exercisable upon the occurrence of certain events. You will receive one right for each
share of Furmanite’s Common Stock you own. We are enclosing a document captioned “Summary of
Rights to Purchase Stock” outlining the principal features of the Plan, which we urge you to read
carefully. This letter summarizes our reasons for adopting it.

     We believe that this Plan protects your interests in the event you and Furmanite are
confronted with coercive or unfair takeover tactics. The Plan contains provisions to protect you in
the event of an unsolicited offer to acquire the Company, including offers that do not treat all
stockholders equally, the acquisition in the open market of shares constituting control without
offering fair value to all stockholders, and other coercive or unfair takeover tactics which could
impair the Board’s ability to represent your interests fully.

     The Plan is not intended to prevent an acquisition of the Company on terms that are favorable
and fair to all stockholders, and will not do so. The Plan is designed to deal with the very
serious problem of unilateral actions by hostile persons that are calculated to deprive a company’s
board and its stockholders of their ability to determine the destiny of the Company. However, the
mere declaration of the rights dividend should not affect any prospective offeror willing to make
an all cash offer at a full and fair price, or to negotiate with your Board of Directors, and
certainly will not interfere with a merger or other business combination transaction that your
Board of Directors approves as fair and as constituting a recognition of full value to the
stockholders.

     The Plan will help avoid the threat that a third party could unilaterally put the Company up
for sale to serve his own financial interests at your expense. Let me assure you that we are
working very hard to achieve the positive results that will prevent that from happening.

Sincerely,

John
R. Barnes

Chairman of the Board and

Chief Executive Officer

 

SUMMARY OF RIGHTS TO PURCHASE STOCK

OF FURMANITE CORPORATION

     On April 15, 2008, the Board of Directors of Furmanite Corporation (the “Company”) declared a
dividend distribution of one Right for each outstanding share of Furmanite Corporation Common Stock
to stockholders of record at the close of business on April 19, 2008. Each Right entitles the
registered holder to purchase from the Company a unit consisting of one one-hundredth of a share (a
“Unit”) of Series B Junior Participating Preferred Stock, no par value per share (the “Preferred
Stock”) at a Purchase Price of $48.00 per Unit, subject to adjustment. The description and terms of
the Rights are set forth in a Rights Agreement (the “Rights Agreement”) between the Company and The
Bank of New York Trust Company, N.A., a national banking association, as Rights Agent.

     Initially, the Rights will be attached to all Common Stock certificates representing shares
then outstanding, and no separate Rights Certificates will be distributed. The Rights will separate
from the Common Stock and a Distribution Date will occur upon the earlier of (i) 15 days following
a public announcement that a person or group of affiliated or associated persons (an “Acquiring
Person”) has acquired, or obtained the right to acquire, beneficial ownership of 15% or more of the
outstanding shares of Common Stock (the “Stock Acquisition Date”), or (ii) 15 business days
following the commencement of a tender offer or exchange offer that would result in a person or
group beneficially owning 20% or more of such outstanding shares of Common Stock. Until the
Distribution Date, (i) the Rights will be evidenced by the Common Stock certificates and will be
transferred with and only with such Common Stock certificates, (ii) new Common Stock certificates
issued after April 19, 2008, will contain a notation incorporating the Rights Agreement by
reference and (iii) the surrender for · transfer of any certificates for Common Stock outstanding
will also constitute the transfer of the Rights associated with the Common Stock represented by
such certificate.

     The Rights are not exercisable until the Distribution Date and will expire at the close of
business on April 19, 2018, unless earlier redeemed by the Company as described below. As long as
the rights are attached to the Common Stock, one additional Right shall be deemed to be delivered
with each share of Common Stock issued or transferred by the Company in the future, including but
not limited to shares of Common Stock issuable upon conversion of any series of convertible
preferred stock or debt instruments of the Company and shares of Common Stock issuable upon
exercise of options to purchase Common Stock granted by the Company.

     As soon as practicable after the Distribution Date, Rights Certificates will be mailed to
holders of record of the Common Stock as of the close of business on the Distribution Date and,
thereafter, the separate Rights Certificates alone will represent the Rights. Except as otherwise
determined by the Board of Directors, only shares of Common Stock issued prior to the Distribution
Date will be issued with Rights.

     In the event that, at any time following the Distribution Date, (i) the Company is the
surviving corporation in a merger with an Acquiring Person and its Common Stock is not changed or
exchanged, (ii) a Person becomes the beneficial owner of more than 20% of the then outstanding
shares of Common Stock (except pursuant to an offer for all outstanding shares of Common Stock
which the independent directors determine to be fair to and otherwise in the best

 

 

interests of the Company and its shareholders), (iii) an Acquiring Person engages in one or more
“self-dealing” transactions as set forth in the Rights Agreement, or (iv) during such time as there
is an Acquiring Person, an event occurs which results in such Acquiring Person’s ownership interest
being increased by more than 1% (e.g., a reverse stock split), each holder of a Right will
thereafter have the right to receive, upon exercise, Common Stock (or, in certain circumstances,
cash, property or other securities of the Company) having a value equal to two times the exercise
price of the Right. Notwithstanding any of the foregoing, following the occurrence of any of the
events set forth in this paragraph, all Rights that are, or (under certain circumstances specified
in the Rights Agreement) were, beneficially owned by any Acquiring Person will be null and void.
However, Rights are not exercisable following the occurrence of either of the events set forth
above until such time as the Rights are no longer redeemable by the Company as set forth below.

     For example, at an exercise price of $48.00 per Right, each Right not owned by an Acquiring
Person (or by certain related parties) following an event set forth in the preceding paragraph
would entitle its holder to purchase $96.00 worth of Common Stock (or other consideration, as noted
above) for $48.00. Assuming that the Common Stock had a per share value of $10.00 at such time, the
holder of each valid Right would be entitled to purchase 9.6 shares of Common Stock for $48.00.

     In the event that, at any time following the Stock Acquisition Date, (i) the Company is
acquired in a merger or other business combination transaction in which the Company is not the
surviving corporation (other than a merger described in the second preceding paragraph or a merger
which follows an offer described in the second preceding paragraph), or (ii) 50% or more of the
Company’s assets or earning power is sold or transferred, each holder of a Right (except Rights
which previously have been voided as set forth above) shall thereafter have the right to receive,
upon exercise, common stock of the acquiring company having a value equal to two times the exercise
price of the Right. The events set forth in this paragraph and in the second preceding paragraph
are referred to as the “Triggering Events.”

     The Purchase Price payable, and the number of Units of Preferred Stock or other securities or
property issuable, upon exercise of the Rights are subject to adjustment from time to time to
prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or
reclassification of, the Preferred Stock, (ii) if holders of the Preferred Stock are granted
certain rights or warrants to subscribe for Preferred Stock or convertible securities at less than
the current market price of the Preferred Stock, or (iii) upon the distribution to holders of the
Preferred Stock of evidences of indebtedness or assets (excluding regular quarterly cash dividends)
or of subscription rights or warrants (other than those referred to above).

     With certain exceptions, no adjustment in the Purchase Price will be required until cumulative
adjustments amount to at least 1% of the Purchase Price. No fractional Units will be issued and, in
lieu thereof, an adjustment in cash will be made based on the market price of the Preferred Stock
on the last trading date prior to the date of exercise.

 

 

     At any time until fifteen days following the Stock Acquisition Date, the Company may redeem
the Rights in whole, but not in part, at a price of $.01 per Right (payable in cash, Common Stock
or other consideration deemed appropriate by the Board of Directors). Under certain circumstances
set forth in the Rights Agreement, the decision to redeem shall require the concurrence of a
majority of the Continuing Directors. After the redemption period has expired, the Company’s right
of redemption may be reinstated if an Acquiring Person reduces his beneficial ownership to 10% or
less of the outstanding shares of Common Stock in a transaction or series of transactions not
involving the Company. Immediately upon the action of the Board of Directors ordering redemption of
the Rights, with, where required, the concurrence of the Continuing Directors, the Rights will
terminate and the only right of the holders of Rights will be to receive the $.01 redemption price.

     The term “Continuing Directors” means any member of the Board of Directors of the Company who
was a member of the Board prior to the date of the Rights Agreement, and any person who is
subsequently elected to the Board if such person is recommended or approved by a majority of the
Continuing Directors, but shall not include an Acquiring Person, or an affiliate or associate of an
Acquiring Person, or any representative of the foregoing entities.

     Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder
of the Company, including, without limitation, the right to vote or to receive dividends. While the
distribution of the Rights will not be taxable to stockholders or to the Company, stockholders may,
depending upon the circumstances, recognize taxable income in the event that the Rights become
exercisable for Common Stock (or other consideration) of the Company or for common stock of the
acquiring company as set forth above.

     Other than those provisions relating to the principal economic terms of the Rights, any of the
provisions of the Rights Agreement may be amended by the Board of Directors of the Company prior to
the Distribution Date. After the Distribution Date, the provisions of the Rights Agreement may be
amended by the Board (in certain circumstances, with the concurrence of the Continuing Directors)
in order to cure any ambiguity, to make changes which do not adversely affect the interests of
holders of Rights (excluding the interests of any Acquiring Person), or to shorten or lengthen any
time period under the Rights Agreement; provided, however, that no amendment to adjust the time
period governing redemption shall be made at such time as the Rights are not redeemable.

     A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as
an Exhibit to a Registration Statement on Form 8-A dated April 18, 2008. A copy of the Rights
Agreement is available free of charge from the Rights Agent. This summary description of the Rights
does not purport to be complete and is qualified in its entirety by reference to the Rights
Agreement, which is incorporated herein by reference.exv10w1

 

Exhibit 10.1

CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT (the “Agreement”) is made and entered into as of this 16th
day of April, 2008, and effective as of April 1, 2008 by and between Citizens Business Bank, a
California banking corporation (the “Bank”) and D. Linn Wiley (“Consultant”).

     WHEREAS, Consultant is a director of the Bank and its former President and Chief Executive
Officer;

     WHEREAS, Consultant and the Bank wish to enter into this agreement pursuant to which
Consultant will perform certain services on behalf of the Bank separate and apart from Consultant’s
service as a director.

     NOW, THEREFORE, in consideration of the mutual covenants and representations contained herein,
and for good and valuable consideration the receipt of which is hereby acknowledged, the parties
hereto agree as follows:

     1. Consulting Services to Be Provided. The Bank hereby retains Consultant as of the
Effective Date to perform consulting services to the Bank as directed by the Board of Directors or
Chief Executive Officer of the Bank, including but not limited to (a) representing and promoting
the goodwill of the Bank, (b) promoting the continued profitability of the Bank by making, among
other things, periodic promotional calls on customers and prospective customers and (c) providing
consultation on banking matters (collectively, the “Services”). The services to be
performed hereunder by Consultant shall only be provided by Consultant himself.

     2. Term. The term of this Agreement shall commence on the date hereof and continue
for a period of two years thereafter, subject to earlier termination as set forth herein. (the
“Term”).

     3. Remuneration.

          (a) Fee. During the Term, the Bank shall pay to Consultant, for the performance of the
Services, a fee of Seven Thousand Seven Hundred Fifty-six Dollars ($7,756) per month, payable at
the end of the month.

          (b) Automobile. During the Term, Consultant shall have the use of a Bank-owned
automobile as determined by the Bank in consultation with Consultant.

     4. Termination. This Agreement shall terminate automatically on the date of
Consultant’s death or Disability, as defined below. The Bank may also terminate this Agreement for
Cause, as defined below. For purposes of this Agreement, “Disability” shall mean
Consultant’s inability to perform the essential duties hereunder, as reasonably determined by the
Board of Directors of Bank, due to Consultant’s medically determinable mental or physical
disability for a period of 90 consecutive days or 120 days in any 12 month period. “Cause”
shall mean: (a) Consultant’s material violation of (i) any state or federal banking or securities
laws, or of the Bylaws, rules, policies or procedures of the Bank or (ii) of the rules or
regulations of the California Commissioner of Financial Institutions, the Federal Deposit Insurance
Corporation, the Federal Reserve Board of Governors, or any other regulatory agency or governmental

 

 

authority having jurisdiction over the Bank, or (b) Consultant’s conviction of (i) any felony
or (ii) any crime involving moral turpitude or a fraudulent or dishonest act. The provisions of
Section 5 through 7 of this Agreement shall survive any such termination.

     5. Non-solicitation. During the period of time ending on the later to occur of (i)
termination of Consultant’s service on the Board of Directors or the Bank or (ii) expiration of the
Term, Consultant shall not, directly or indirectly, without the prior written consent of the Bank,
on behalf of any “depository institution” as that term is defined in 12 C.F.R. Section 348.2 and
any parent, subsidiary or affiliate thereof, solicit or aid in the solicitation of customers or
prospective customers for Financial Services, as defined below, or induce or attempt to induce any
person (including any entity) who is a customer, prospective customer, supplier, distributor,
officer or employee of the Bank during the Term to terminate such person’s relationships with, or
to take any action that would be disadvantageous, to, the Bank. “Financial Services” shall mean the
origination, purchasing, selling and servicing of commercial, real estate, residential,
construction and consumer loans and the solicitation and provision of deposit services and services
related thereto and shall also mean acting as an executor, administrator, guardian or conservator
of estates for persons other than family members, assignee, receiver, depositary, trustee,
custodian, or any other fiduciary or representative capacity for any purpose permitted by law,
acting as transfer agent or registrar for corporate stocks, buying and selling securities for the
account of customers, or accepting and executing any trust business permitted by any law.

     6. Confidentiality. Consultant agrees that he will not at any time during the term of
this Agreement, or at any time thereafter for any reason, in any fashion, form or manner, either
directly or indirectly, divulge, disclose or communicate to any person, firm, corporation or other
business entity, in any manner whatsoever, any confidential information or trade secrets concerning
the business of the Bank, including, without limiting the generality of the foregoing, the
techniques, methods or systems of its operation or management, any information regarding its
financial matters, or any other material information concerning the business of the Bank (including
customer lists), any of its customers, governmental relations, customer contacts, underwriting
methodology, loan program configuration and qualification strategies, marketing strategies and
proposals, its manner of operation, its plans or other material data, or any other information
concerning the business of the Bank, its subsidiaries or affiliates, and the Bank’s goodwill. The
provisions of this Section 6 shall not apply to (i) information disclosed in the performance of the
Services based on his good faith belief that such a disclosure is in the best interests of Bank;
(ii) information that is, at the time of the disclosure, public knowledge; (iii) information
disseminated by the Bank to third parties in the ordinary course of business; (iv) information
lawfully received by Consultant from a third party who, based upon inquiry by Consultant, is not
bound by a confidential relationship to the Bank or otherwise improperly received the information;
or (v) information disclosed under a requirement of law or as directed by applicable legal
authority having jurisdiction over Consultant.

     7. Arbitration. Any dispute or controversy arising under or in connection with this
Agreement, the inception or termination of Consultant’s services, including issues raised regarding
the Agreement’s formation, interpretation or breach, shall be settled exclusively by binding
arbitration in accordance with the Commercial Rules of the American Arbitration Association
(“AAA”). The arbitration will be conducted in San Bernardino County. The arbitrator shall
have no authority to add to or to modify this Agreement, shall apply all applicable

2

 

law, and shall have no lesser and no greater remedial authority than would a court of law
resolving the same claim or controversy. The arbitrator shall issue a written decision that
includes the essential findings and conclusions upon which the decision is based, which shall be
signed and dated. Consultant and the Bank shall each bear their own respective costs and attorneys’
fees incurred in conducting the arbitration and shall split equally the fees and administrative
costs charged by the arbitrator and AAA. Judgment may be entered on the arbitrator’s award in any
court having jurisdiction.

     8. Waiver of Breach. Any waiver of any breach of this Agreement shall not be
construed to be a continuing waiver or consent to any subsequent breach on the part either of
Consultant or of the Bank. No delay or omission in the exercise of any power, remedy, or right
herein provided or otherwise available to any party shall impair or affect the right of such party
thereafter to exercise the same. Any extension of time or other indulgence granted to a party
hereunder shall not otherwise alter or affect any power, remedy or right of any other party, or the
obligations of the party to whom such extension or indulgence is granted except as specifically
waived.

     9. Non-Assignment; Successors. Neither party hereto may assign his or its rights or
delegate his or its duties under this Agreement without the prior written consent of the other
party; provided, however, that: (i) this Agreement shall inure to the benefit of and be binding
upon the successors and assigns of the Bank upon any sale of all or substantially all of the Bank’s
assets, or upon any merger, consolidation or reorganization of the Bank with or into any other
corporation, all as though such successors and assigns of the Bank and their respective successors
and assigns were the Bank; and (ii) this Agreement shall inure to the benefit of and be binding
upon the heirs, assigns or designees of Consultant to the extent of any payments due to it
hereunder. As used in this Agreement, the term “Bank” shall be deemed to refer to any such
successor or assign of the Bank referred to in the preceding sentence.

     10. Severability. To the extent any provision of this Agreement or portion thereof
shall be invalid or unenforceable, it shall be considered deleted therefrom (but only for so long
as such provision or portion thereof shall be invalid or unenforceable) and the remainder of such
provision and of this Agreement shall be unaffected and shall continue in full force and effect to
the fullest extent permitted by law if enforcement would not frustrate the overall intent of the
parties (as such intent is manifested by all provisions of the Agreement including such invalid,
void, or otherwise unenforceable portion).

     11. Retention. Consultant is retained by the Bank only for the purposes and to the
extent set forth in this Agreement, and Consultant’s relationship to the Bank shall be that of an
independent contractor. Consultant shall not be considered under this Agreement as having employee
status or as being entitled to participate in any Bank employee benefit plans.

     12. Taxes. Consultant acknowledgs that no federal or state withholding taxes, FICA,
SDI, or other employee payroll taxes or deductions are made with respect to compensation paid to
Consultant pursuant to this Agreement. Consultant is responsible for all such taxes, and agrees to
report for federal and state income tax purposes all such compensation, and to pay all

3

 

taxes due thereon and to indemnify, defend and hold the Bank harmless in the event that any
claims are made by any taxing authority, by reason of Consultant’s failure to properly pay any and
all taxes which are due in relation to the services provided pursuant to this Agreement.

     13 Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the same
instrument.

     14 Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the laws of the State of California, without giving effect to the choice of law
principles thereof.

     15 Entire Agreement. This Agreement constitutes the entire agreement by the Bank and
Consultant with respect to the subject matter hereof and merges and supersedes any and all prior
discussions, negotiations, agreements or understandings between Consultant and the Bank with
respect to the subject matter hereof, whether written or oral. This Agreement may be amended or
modified only by a written instrument executed by Consultant, Consultant and the Bank. With regard
to such amendments, alterations, or modifications, facsimile signatures shall be effective as
original signatures. Any amendment, alteration, or modification requiring the signature of more
than one party may be signed in counterparts.

     16 Further Actions. Each party agrees to perform any further acts and execute and
deliver any further documents reasonably necessary to carry out the provisions of this Agreement.

     17 No Third Party Beneficiaries. This Agreement and each and every provision hereof
is for the exclusive benefit of the parties and not for the benefit of any third party.

     18 Headings. The headings in this Agreement are inserted only as a matter of
convenience, and in no way define, limit, or extend or interpret the scope of this Agreement or of
any particular provision hereof.

4

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	CITIZENS BUSINESS BANK

 	 
	 	By:  	/s/ Christopher D. Myers
 	 
	 	 	Christopher D. Myers, President and Chief 	 
	 	 	Executive Officer 	 
	 
	 	CONSULTANT:

 	 
	 	By:  	/s/ D. Linn Wiley
 	 
	 	 	D. Linn Wiley 	 
	 	 	 	 
	 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]