Document:

ex4-1.htm

Exhibit 4.1

 

CERTIFICATE OF DETERMINATION
OF PREFERENCES OF
SERIES A FIXED RATE CUMULATIVE PERPETUAL PREFERRED STOCK
OF
BANK OF COMMERCE HOLDINGS,
a California Corporation

 

Pursuant to the provisions of Section 401 of the Corporations Code of the State of California:

 

We, James A. Sundquist, Executive Vice President and Chief Financial Officer and Samuel D. Jimenez, Executive Vice President, Chief Operating Officer and Assistant Corporate Secretary, of Bank of Commerce Holdings, a bank holding company organized and existing under the laws of the State of California (hereinafter called “Corporation”) do hereby certify as follows:

 

1.     The Board of Directors of the Corporation adopted a resolution creating a series of 17,000 shares of Preferred Stock of the Corporation.

 

2.     A Certificate of Determination of Preferences of Series A Fixed Rate Cumulative Perpetual Preferred Stock was filed with the California Secretary of State on November 13, 2008 designating the series of 17,000 shares of Preferred Stock of the Corporation as “Series A Fixed Rate Cumulative Perpetual Preferred Stock.”

 

3.     No shares of Series A Fixed Rate Cumulative Perpetual Preferred Stock are issued and outstanding as of the date hereof.

 

4.     Pursuant to the authority conferred upon the Board of Directors by the Articles of Incorporation of the Corporation, the following resolution was duly adopted by the Board of Directors on July 19, 2016 to decrease the number of shares of “Series A Fixed Rate Cumulative Perpetual Preferred Stock” to zero (0), and such series will no longer be in force or be an authorized series of Preferred Stock of the Corporation.

 

RESOLVED, that in order to implement the revocation of the series of preferred stock designated as “Series A Fixed Rate Cumulative Perpetual Preferred Stock” in the Certificate of Determination filed with the California Secretary of State on November 13, 2008, the authorized number of shares constituting “Series A Fixed Rate Cumulative Perpetual Preferred Stock” shall be zero (0), and such series will no longer be in force or be an authorized series of preferred stock of the Corporation.

 

We further declare under penalty of perjury under the laws of the State of California that the matters set forth in this certificate are true and correct of our own knowledge.

 

Dated: August 2, 2016

  

	
 
	 	
/s/ James A. Sundquist
	
 

	
 
	
 
	
James A. Sundquist, Executive Vice President and Chief Financial Officer
	
 

   

 

	
 
	 	
/s/ Samuel D. Jimenez
	
 

	
 
	
 
	
Executive Vice President, Chief Operating Officer and Assistant Corporate SecretaryEX-10.1

 Exhibit 10.1 

AMENDMENT TO 

COOPERATION AGREEMENT 

This Amendment to Cooperation Agreement (this “Amendment”), which amends that certain Cooperation Agreement, dated
April 11, 2016 (the “Agreement”) by and among Outerwall Inc., a Delaware corporation (the “Company”), the persons and entities listed on Annex A thereto (collectively, the “Engaged Group” and,
for clarity and as applicable, including each member thereof acting individually), and Jeffrey J. Brown (“Mr. Brown”) in his capacity as the Initial Independent Director (as defined in the Agreement) is entered into as of
August 2, 2016 and is by and among the Company and each of the members of the Engaged Group (each of the Company and the Engaged Group, a “Party” to this Amendment, and collectively, the “Parties”). Unless the
context requires otherwise, all capitalized terms used in this Amendment, but not defined herein, shall have the meanings given to such terms in the Agreement. 

W I T N E S S E T H: 

WHEREAS, pursuant to Section 15 of the Agreement, the Agreement may be modified in writing signed by an authorized representative of each
of the Company and the members of the Engaged Group; 
 WHEREAS, on July 24, 2016, the Company and its wholly owned subsidiary, Redbox
Automated Retail, LLC, entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Aspen Parent, Inc., a Delaware corporation (“Parent”), Aspen Merger Sub, Inc., a Delaware corporation and wholly
owned subsidiary of Parent, and Redwood Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of Parent, providing for the acquisition of the Company by Parent in an all cash transaction (the “Merger”), with the
Company surviving the Merger as a wholly owned, non-publicly traded subsidiary of Parent; and 
 WHEREAS, the Parties have determined to
enter into this Amendment to postpone the Engaged Group’s right to cause the Board to appoint the Additional Independent Directors during the term of the Merger Agreement. 

NOW THEREFORE, in consideration of and reliance on the foregoing premises and the mutual covenants and agreements contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound hereby, agree as follows: 

1. Amendments to Section 1(a) of the Agreement. 

(a) Clause (3)(x) of Section 1(a) of the Agreement is hereby amended and restated in its entirety to read as follows:

 “(3)(x) appoint two (2) additional directors to be submitted in good faith by the Engaged Group promptly after (and no earlier
than) any termination of the Merger Agreement pursuant to Article VII thereof, and reviewed, approved and appointed by the Board in accordance with the procedures set forth in Section 1(a)(ii) (each, an “Additional Independent
Director” and, together with the Initial Independent Director, the “New Nominees”) effective with respect to each such Additional Independent Director, as of (1) if such Additional Independent Director was previously
submitted to the Company as a candidate to fill an Additional Independent Director seat on June 20, 2016, the date that is fifteen (15) business days after a resubmission of candidacy, subject to applicable recommendation by the Nominating
and Governance Committee and approval and appointment by the Board in accordance with Section 1(a)(ii), or (2) if such Additional Independent Director was not submitted to the Company as a candidate to fill an Additional Independent
Director seat on June 20, 2016, the date of the Board approval and appointment of such Additional Independent Director in accordance with Section 1(a)(ii) of this Agreement, one such director being in the class of directors with a term
expiring at the Company’s 2018 annual meeting of stockholders (the “2018 Annual Meeting”) and the other such director being in the class of directors with a term expiring at the Company’s 2019 annual meeting of
stockholders (the “2019 Annual Meeting”); provided that the Engaged Group shall have no right to submit candidates to fill the seats of the Additional Independent Director on or after the date on which the Engaged
Group’s aggregate ownership of Common Stock decreases to less than the Minimum Ownership Threshold,” 

 (b) The final sentence of the initial paragraph of Section 1(a) of the
Agreement is hereby amended and restated in its entirety to read as follows: 
 “In no event shall the Engaged Group be required to put
forth candidates for appointment as Additional Independent Directors, provided that if the Engaged Group has not put forth such candidates for appointment by the twentieth
(20th) business day after the termination of the Merger Agreement, then all rights of the Engaged Group and responsibilities of the Company relating to appointment of Additional Independent
Directors shall terminate.” 
 (c) The first sentence of Section 1(a)(ii) of the Agreement is hereby amended and
restated in its entirety to read as follows: 
 “If a termination of the Merger Agreement occurs pursuant to Article VII thereof, the
Engaged Group shall promptly recommend candidates to fill the seats of the Additional Independent Directors to the Company in order that procedures outlined herein can be appropriately and timely followed.” 

(d) The penultimate sentence of Section 1(a)(ii) of the Agreement is hereby amended and restated in its entirety to read
as follows: 
 “Upon the recommendation of an Additional Independent Director candidate by the Nominating and Governance Committee, the
Board shall review, approve and vote on the appointment of such person to the Board no later than five (5) business days after the Nominating and Governance Committee’s recommendation of such person, as applicable, and if approved by the
Board, appointment would be effective as of the date of such appointment; provided, however, that if the Board does not approve and appoint such Additional Independent Director, as applicable, to the Board, the Parties shall continue
to follow the procedures of this Section 1(a)(ii) until an Additional Independent Director is approved and appointed to the Board. 

2. Amendments to Section 1(b)(v) of the Agreement. 

Section 1(b)(v) of the Agreement is hereby amended to insert the following provision as the final sentence of
Section 1(b)(v): 
 “Notwithstanding anything contained in this Agreement to the contrary, until any termination of the Merger
Agreement pursuant to Article VII thereof the Board agrees not to accept the resignation letter delivered to the Company by the Initial Independent Director on April 11, 2016 that would otherwise become effective as a result of the Engaged
Group’s aggregate beneficial ownership of Common Stock of the Company decreasing to less than the Minimum Ownership Threshold.” 

3. Amendments to Section 5 of the Agreement. 

The final paragraph of Section 5 of the Agreement is hereby amended and restated in its entirety to read as follows: 

“Notwithstanding the foregoing, the provisions of Section 7 through Section 12 and Section 15 shall survive the termination
of this Agreement. Further, in the event of any termination of the Merger Agreement pursuant to Article VII thereof, the rights and obligations with respect to the submission and appointment of candidates to fill the seats of the Additional
Independent Director as set forth in Section1(a) shall survive the termination of this Agreement. In addition, the provisions of Section 1(b)(viii), Section 13 and Section 14 shall survive the termination of this Agreement and remain
in effect throughout each of the New Nominees’ (or the Engaged Replacement Directors’) continued service as a member of the Board. No termination pursuant to Section 5(a) shall relieve any Party from liability for any breach of this
Agreement prior to such termination.” 
 4. Communications. The Engaged Group hereby consents to any filing of this Amendment by
the Company on Form 8-K as required by SEC rules and regulations applicable to the Company. The Company hereby 

  
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consents to the filing of this Amendment by the Engaged Group on an amendment to its Schedule 13D relating to the Company. The Company, with respect to its Form 8-K, and the Engaged Group, with
respect to its amendment to its Schedule 13D, will provide the other Party, prior to each such filing, a reasonable opportunity to review and comment on such documents, and each such Party will consider any comments from the other Party in good
faith. 
 5. Miscellaneous. 

(a) Continuation of Agreement. After the date hereof, each reference in the Agreement to “hereunder,”
“hereof,” “herein” or words of like import shall mean and be a reference to the Agreement as amended hereby. Except as specifically provided for in this Amendment, all of the terms and conditions of the Agreement shall remain
unchanged and in full force and effect. 
 (b) Counterparts. This Amendment may be executed in two or more
counterparts, each of which shall be considered one and the same agreement to amend the Agreement and shall become effective when counterparts have been signed by each of the Parties and delivered to the other Party (including by means of electronic
delivery). 
 [The remainder of this page intentionally left blank] 

  
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 IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by the duly authorized
signatories of the Parties as of the date hereof. 
 OUTERWALL INC. 
  

			
		
	By:	 	/s/ Erik E. Prusch
	Name:	 	Erik E. Prusch
	Title:	 	Chief Executive Officer

 [Signature Page to Amendment] 

 ENGAGED GROUP* 

 

					
	Engaged Capital Flagship Master Fund, LP
		
	By:	 	 Engaged Capital, LLC
 General
Partner

		
	By:	 	 /s/ Glenn W. Welling

		 	Name:	 	Glenn W. Welling
		 	Title:	 	Founder and Chief Investment Officer

  

					
	Engaged Capital Co-Invest III, L.P.
		
	By:	 	 Engaged Capital, LLC
 General
Partner

		
	By:	 	 /s/ Glenn W. Welling

		 	Name:	 	Glenn W. Welling
		 	Title:	 	Founder and Chief Investment Officer

  

					
	Engaged Capital Fund, LP
		
	By:	 	 Engaged Capital, LLC
 General
Partner

		
	By:	 	 /s/ Glenn W. Welling

		 	Name:	 	Glenn W. Welling
		 	Title:	 	Founder and Chief Investment Officer

  

					
	Engaged Capital Fund, Ltd.
		
	By:	 	 /s/ Glenn W. Welling

		 	Name:	 	Glenn W. Welling
		 	Title:	 	Director

  
  

	* 	Engaged Capital Master Feeder I, LP, Engaged Capital I, LP and Engaged Capital I Offshore, Ltd. were closed on June 1, 2016 and therefore are not included as signatories to this Amendment. Effective July 1,
2016, Engaged Capital Master Feeder II, LP changed its name to Engaged Capital Flagship Master Fund, LP, Engaged Capital II, LP changed its name to Engaged Capital Fund, LP and Engaged Capital II Offshore Ltd. changed its name to Engaged Capital
Fund, Ltd. 

 [Signature Page to Amendment] 

 
					
	Engaged Capital, LLC
		
	By:	 	 /s/ Glenn W. Welling

		 	Name:	 	Glenn W. Welling
		 	Title:	 	Founder and Chief Investment Officer

  

					
	Engaged Capital Holdings, LLC
		
	By:	 	 /s/ Glenn W. Welling

		 	Name:	 	Glenn W. Welling
		 	Title:	 	Sole Member
	
	 /s/ Glenn W. Welling

	Glenn W. Welling

 [Signature Page to Amendment]

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