Document:

ex4-3.htm

    

    

    

    

    

    

    

    

    

    

    

    

    

    PACIFIC
COAST NATIONAL BANCORP

    

    INCORPORATED
UNDER THE LAWS OF THE STATE OF CALIFORNIA

    

    This
certifies that the United States Department of the Treasury is the owner of Two
Hundred and Six (206)

    

    FULLY
PAID AND NON ASSESSABLE SHARES OF FIXED RATE CUMULATIVE PERPETUAL PREFERRED
STOCK, SERIES B, PAR VALUE $0.01 PER SHARE (LIQUIDATION AMOUNT $1,000 PER
SHARE), OF

    

    PACIFIC COAST NATIONAL BANCORP,
a California corporation (the “Corporation”).  The shares
represented by this certificate are transferable only on the stock transfer
books of the Corporation by the holder of record hereof, or by such holder’s
duly authorized attorney or legal representative, upon the surrender of this
certificate properly endorsed.

    

    IN WITNESS WHEREOF, the
Corporation has caused this certificate to be executed by the signatures of its
duly authorized officers.

    

    
      	
               
      

            	
              DATED     January
      16, 2009

            

    

    

    

    
      

      

      
        
          
            
              	
                       
      

                    	
                       

                    	 	
                       

                    
	 	Thomas
      J. Applegate 	 	Michael
      S. Hahn 
	 	Corporate
      Secretary 	 	President 

            

          

        

      

       

       

    

    

    
       

      UST Seq. No.  315

      

    

    
      
         

      

      
         

         

      

      
         

      

    

    

    THE SECURITIES REPRESENTED BY THIS
INSTRUMENT ARE NOT SAVINGS ACCOUNTS, DEPOSITS OR OTHER OBLIGATIONS OF A BANK AND
ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENTAL AGENCY.

    THE SECURITIES REPRESENTED BY THIS
INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE
TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT
RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES
LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.
EACH PURCHASER OF THE SECURITIES REPRESENTED BY THIS INSTRUMENT IS NOTIFIED THAT
THE SELLER MAY BE RELYING ON THE EXEMPTION FROM SECTION 5 OF THE SECURITIES ACT
PROVIDED BY RULE 144A THEREUNDER. ANY TRANSFEREE OF THE SECURITIES REPRESENTED
BY THIS INSTRUMENT BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT IT IS A
"QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT), (2) AGREES THAT IT WILL NOT OFFER, SELL OR OTHERWISE TRANSFER THE
SECURITIES REPRESENTED BY THIS INSTRUMENT EXCEPT (A) PURSUANT TO A REGISTRATION
STATEMENT WHICH IS THEN EFFECTIVE UNDER THE SECURITIES ACT, (B) FOR SO LONG AS
THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE ELIGIBLE FOR RESALE PURSUANT
TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO THE
ISSUER OR (D) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH
PERSON TO WHOM THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE TRANSFERRED A
NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

    THIS INSTRUMENT IS ISSUED SUBJECT TO
THE RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS OF A SECURITIES PURCHASE
AGREEMENT BETWEEN THE ISSUER OF THESE SECURITIES AND THE INVESTOR REFERRED TO
THEREIN, A COPY OF WHICH IS ON FILE WITH THE ISSUER.  THE SECURITIES
REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT
IN COMPLIANCE WITH SAID AGREEMENT.  ANY SALE OR OTHER TRANSFER NOT IN
COMPLIANCE WITH SAID AGREEMENT WILL BE VOID.

    THE CORPORATION WILL FURNISH TO ANY
STOCKHOLDER ON REQUEST AND WITHOUT CHARGE A FULL STATEMENT OF THE DESIGNATIONS
AND ANY PREFERENCES, CONVERSION AND OTHER RIGHTS, VOTING POWERS, RESTRICTIONS,
LIMITATIONS AS TO DIVIDENDS, QUALIFICATIONS, AND TERMS AND CONDITIONS OF
REDEMPTION OF THE STOCK OF EACH CLASS WHICH THE CORPORATION IS AUTHORIZED TO
ISSUE, OF THE DIFFERENCES IN THE RELATIVE RIGHTS AND PREFERENCES BETWEEN THE
SHARES OF EACH SERIES OF PREFERRED CLASS WHICH THE CORPORATION IS AUTHORIZED TO
ISSUE, TO THE EXTENT THEY HAVE BEEN SET, AND OF THE AUTHORITY OF THE BOARD OF
DIRECTORS TO SET THE RELATIVE RIGHTS AND PREFERENCES OF SUBSEQUENT SERIES OF A
PREFERRED CLASS OF STOCK. SUCH REQUEST MAY BE MADE TO THE SECRETARY OF THE
CORPORATION.ex4-4.htm

     

     

     

    
 

    January 16, 2009

    

    United
States Department of the Treasury

    1500
Pennsylvania Avenue, NW

    Washington,
D.C. 20220

    

    Pacific
Coast National Bancorp

    905 Calle
Amanecer, Suite 100

    San
Clemente, California 92673

    

    Ladies
and Gentlemen:

    

    Reference
is made to that certain Letter Agreement incorporating the Securities Purchase
Agreement – Standard Terms dated of even date herewith (the “Securities Purchase
Agreement”) by and among United States Department of Treasury (“Investor”) and Pacific Coast
National Bancorp (“Company”).  Investor
and Company desire to set forth herein certain additional agreements regarding
Company’s commitment to the holder of the Preferred Shares after the closing of
the transactions contemplated by the Securities Purchase
Agreement.  Terms that are defined in the Securities Purchase
Agreement are used in this letter agreement as so defined.

     

    In order
to comply with California Corporations Code §212(a), the Company has modified
section 7(b) of the Standard Provisions of each of the Certificate of
Designations attached as Annex A and Annex B to the
Securities Purchase Agreement (collectively, the “Certificates of
Designations”) to provide in pertinent part as follows:

     

    “Whenever,
at any time or times, dividends payable on the shares of Designated Preferred
Stock have not been paid for an aggregate of six quarterly Dividend Periods or
more, whether or not consecutive, the holders of the Designated Preferred Stock
shall have the right, with holders of shares of any one or more other classes or
series of Voting Parity Stock outstanding at the time, voting together as a
class, to elect two directors...”

     

    By its
execution hereof, the Company hereby confirms and agrees that as of the date
hereof and at all times while any shares of the Designated Preferred Stock (as
defined in each Certificate of Designations) are outstanding or issuable upon
exercise of the Warrant it shall maintain a range of directors of the Company
that will permit the holder of the Preferred Shares to elect two directors in
accordance with said sections 7(b).  Currently Article III, Section 2
(the “Applicable
Provision”) of the Company’s bylaws (the “Bylaws”), in conjunction with
applicable resolutions of the Company’s board of directors, provides for a range
of directors of no less than seven (7) and no more than thirteen
(13).  At all times while any shares of the Designated Preferred Stock
are outstanding, the Company shall not fill more than eleven (11) director
positions.  In the event the Company desires to increase the number of
directors beyond eleven (11), then the Company shall be required to amend the
Bylaws to increase the maximum directors to always allow for at least two open
director seats for the holders of the Preferred Shares to elect in accordance
with Section 7(b) of the Standard Terms of the Certificate of

     

    
      
        
          

          UST Seq.
No. 315

          

        

         

      

      
         

         

      

      
         

        
          

          

          United
States Department of Treasury

          Pacific
Coast National Bancorp

          January
16, 2009

          

          

        

      

    

    Determination
of Preferences of Series A Fixed Rate Cumulative Perpetual Preferred Stock of
Pacific Coast National Bancorp and Section 7(b) of the Standard Terms of the
Certificate of Determination of Preferences of Series B Fixed Rate Cumulative
Perpetual Preferred Stock of Pacific Coast National Bancorp (and to amend the
Bylaws to provide that such provision may not be modified, amended or repealed
by the Company’s board of directors (or any committee thereof) or without the
affirmative vote and approval of (x) the stockholders and (y) the holders of at
least a majority of the shares of Designated Preferred Stock outstanding at the
time of such vote and approval).

     

    In
addition, by its execution hereof, the Company hereby confirms and agrees that,
effective January 15, 2009, it amended the Applicable Provision by adding the
following sentence at the end thereof:

     

    “Notwithstanding
anything in these bylaws to the contrary, for so long as the corporation’s Fixed
Rate Cumulative Perpetual Preferred Stock, Series A and the corporation’s Fixed
Rate Cumulative Perpetual Preferred Stock, Series B (collectively, the “Designated Preferred Stock”)
(or any warrant to purchase any of the Designated Preferred Stock) is
outstanding:  (i) whenever, at any time or times, dividends payable on
the shares of Designated Preferred Stock have not been paid for an aggregate of
six quarterly Dividend Periods (as defined in the Certificate of Determination
for the Designated Preferred Stock) or more, whether or not consecutive, the
authorized number of directors shall automatically be increased by two (but
shall in no event be increased to a number of directors that is greater than the
maximum number of directors set forth in this section of these bylaws); and (ii)
this sentence may not be modified, amended or repealed by the corporation’s
Board of Directors (or any committee thereof) or without the affirmative vote
and approval of (x) the shareholders and (y) the holders of at least a majority
of the shares of Designated Preferred Stock outstanding at the time of such vote
and approval.”

    

    The
parties hereto acknowledge that there would be no adequate remedy at law if the
Company fails to perform any of its obligations under this letter agreement and
that the Investor may be irreparably harmed by any such failure, and accordingly
agree that the Investor, in addition to any other remedy to which it may be
entitled at law or in equity, to the fullest extent permitted and enforceable
under applicable law shall be entitled to compel specific performance of the
obligations of the Company under this letter agreement without the necessity of
proving the inadequacy of monetary damages as a remedy or the posting of a
bond.

     

    This
letter agreement and the Certificates of Designations constitute the entire
agreement, and supersedes all other prior agreements, understandings,
representations and warranties, both written and oral, between the parties with
respect to the subject matter hereof.

     

    
      
        
          -2-

          

          UST Seq.
No. 315

          

        

         

      

      
         

         

      

      
         

        
          

          

          United
States Department of Treasury

          Pacific
Coast National Bancorp

          January
16, 2009

          

          

        

      

    

    This
letter agreement may be executed in counterparts, each of which shall be deemed
an original and all of which shall together constitute one and the same
instrument.  This letter agreement shall be governed in all respects,
including as to validity, interpretation and effect, by the internal laws of the
State of California, without giving effect to the conflict of laws rules
thereof.

     

    [Remainder
of this page intentionally left blank]

     

     

     

     

     

     

     

     

     

     

     

    
      
        
          -3-

          

          UST Seq.
No. 315

          

        

         

      

      
         

         

      

      
         

        
          

          

          United
States Department of Treasury

          Pacific
Coast National Bancorp

          January
16, 2009

          

          

          

        

      

    

    In
witness whereof, this letter agreement has been duly executed by the authorized
representatives of the parties hereto as of the date first above
written.

     

    
      
        
          
            
              
                
                  	 
      	
                          PACIFIC
      COAST NATIONAL BANCORP

                        
	 	 
	 
      	
                          By:

                        	
                          /s/
      Michael S. Hahn

                        
	 
      	Name: 
      	
                          Michael
      S. Hahn

                        
	 
      	Title: 
      	
                          President
      and Chief Executive Officer

                        
	 	 	 
	 
      	
                          By:

                        	
                          /s/
      Terry A. Stalk

                        
	 
      	Name: 
      	
                          Terry
      A. Stalk

                        
	 
      	Title: 
      	
                          Executive
      Vice President and

                               Chief
      Financial Officer

                        
	 	 	 
	 
      	
                          UNITED
      STATES DEPARTMENT OF THE TREASURY

                        
	 	 
	 
      	
                          By:

                        	
                           

                        
	 
      	

                          Name:

                        	
                           

                        
	 
      	

                          Title:

                        	
                           

                        

                

              

            

          

        

      

    

    

    UST Seq. No.
315

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00152-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00152-of-00352.parquet"}]]