Document:

Exhibit 4.2

 

	
  

  	
  6% Mandatory
  Convertible Cumulative Preferred Stock, Series A $5.00 Liquidation Value
  Certificate Number Shares TRANSFER OF THIS CERTIFICATE IS RESTRICTED. SEE
  LEGEND ON REVERSE SIDE THIS CERTIFIES THAT IS THE OWNER OF ** ** FULLY PAID
  AND NON-ASSESSABLE SHARES OF THE 6% MANDATORY CONVERTIBLE CUMULATIVE
  PREFERRED STOCK, SERIES A OF Community Valley Bancorp transferable in person
  or by duly authorized attorney upon surrender of this certificate properly
  endorsed. This certificate and the shares represented hereby are subject to
  the provisions of the Articles of Incorporation, all amendments thereto and
  the Bylaws of the Corporation, and to the rights, preferences and voting
  powers of the Preferred Stock of the Corporation now or hereafter outstanding;
  the terms of all such provision, rights, preferences and voting powers in the
  Certificate of Determination for the Corporation’s Preferred Stock Series A
  being incorporated herein by reference. IN WITNESS THEREOF, Community Valley
  Bancorp has caused this certificate to be executed by signatures of its duly
  authorized officers. President Secretary DATED DECEMBER , 2009 COMMUNITY
  VALLEY BANCORP 

  

 

 

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.

 

THIS INSTRUMENT IS ISSUED
SUBJECT TO RIGHTS, PRIVILEGES, PREFERENCES AND RESTRICTIONS IN THE CERTIFICATE
OF DETERMINATION FILED WITH THE CALIFORNIA SECRETARY OF STATE FOR THE COMPANY’S
PREFERRED STOCK SERIES A.

 

The
following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

 

	
  TEN COM

  	
  -

  	
  as tenants in common

  	
  UNIF GIFT MIN 

  	
  Custodian

  
	
   

  	
   

  	
   

  	
  ACT-

  	
   

  	
   

  
	
  TEN ENT

  	
  -

  	
  as tenants by the entireties

  	
   

  	
  (CUST)

  	
  (Minor)

  
	
  JT TEN

  	
  -

  	
  as joint tenants with
  right of survivorship

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  under Uniform Gifts to
  Minors Act

  	
   

  
	
   

  	
   

  	
  and not as tenants in
  common

  	
   

  	
  (STATE)

  
	
   

  	
   

  	
   

  	
  UNIF TRF MIN ACT

  	
  Custodian (until
  age   ).

  
	
   

  	
   

  	
   

  	
   

  	
  (CUST)

  
	
   

  	
   

  	
   

  	
   

  	
  (MINOR)

  
	
   

  	
   

  	
   

  	
  under Uniform Transfers
  to Minors Act             

  
	
   

  	
   

  	
   

  	
   

  	
  (STATE)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional abbreviations
  may also be used though not in the above list.

  

 

For
Value Received,                       
hereby sell, assign and transfer unto

 

PLEASE
INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

 

 

(PLEASE
PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE, OF ASSIGNEE)

 

 

                                                                                                                                                                                                          shares
of the capital stock represented by the within Certificate, and do hereby
irrevocably constitute and appoint

 

                                                                                                                                                                                                        Attorney
to transfer the said stock on the books of the within named Corporation with
full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
  20

  	
   

  	
   

  	
   

  
	
   

  	
  Signature:

  
	
   

  	
   

  
	
   

  	
  Signature:

  
	
  SIGNATURE(S) GUARANTEED:

  	
  NOTE: THE SIGNATURE TO
  THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE
  CERTIFICATE, IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR ANY
  CHANGE WHATEVER.

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE SIGNATURE(S) SHOULD BE
  GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (Banks, Stockbrokers, Savings
  and Loan Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVED
  SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE l7Ad-15.Exhibit 4.3

 

CERTIFICATE
OF DETERMINATION

OF

8%
CUMULATIVE PERPETUAL

PREFERRED
STOCK, SERIES B

OF

COMMUNITY
VALLEY BANCORP

 

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

 

We, Gayle J. Lee, Vice President, and John F.
Coger, Chief Financial Officer of Community Valley Bancorp, organized under the
laws of the State of California (hereinafter called the “Corporation”), do
hereby certify as follows:

 

1.                                       On December 8,
2009, the Board of Directors of the Corporation adopted a resolution
designating 105,647 shares of Preferred Stock as “8% Cumulative Perpetual
Preferred Stock, Series B.”

 

2.                                       No shares of 8%
Cumulative Perpetual Preferred Stock, Series B have been issued.

 

3.                                       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 December 8, 2009 creating the series of
Preferred Stock designated as “8% Cumulative Perpetual Preferred Stock, Series B”:

 

WHEREAS,
the Articles of Incorporation of the Corporation provide for a class of shares
known as Preferred Stock, issuable from time to time in one or more series; and

 

WHEREAS,
the Board of Directors of the Corporation is authorized to determine or alter
the voting power, preferences, limitations, restrictions and relative rights
granted to or imposed upon any wholly unissued series of Preferred Stock, to
fix the number of shares constituting any such series, and to determine the
designation thereof, or any of them; and

 

WHEREAS,
the Board of Directors of the Corporation desires, pursuant to its authority as
aforesaid, to determine and fix the voting power, preferences, limitations,
restrictions and relative rights relating to, the 8% Cumulative Perpetual Preferred
Stock, Series B and the number of shares constituting and the designation
of said series;

 

NOW,
THEREFORE, BE IT RESOLVED, that the Board of Directors hereby fixes and
determines the designation of, the number of shares constituting, and the
voting power, preferences, limitations, restrictions and relative rights
relating to the 8% Cumulative Perpetual Preferred Stock, Series B as
follows:

 

 

 

(a)                                Name.  The initial series of shares of Preferred
Stock shall be designated the “8% Cumulative Perpetual Preferred Stock, Series B,”
shall consist of 105,647 shares and shall be offered at $20.00 per share.

 

(b)                               Voting Rights.

 

(1)                                 General.  The holders of 8% Cumulative Perpetual
Preferred Stock, Series B shall be entitled to vote, in person or by
proxy, at a special or annual meeting of shareholders on all matters entitled
to be voted on by holders of shares of Common Stock voting together as a single
class with shareholders of Common Stock (and with other shares entitled to vote
thereon), including, without limitation, the election of all of the directors
of the Corporation.

 

(2)                                 8% Cumulative
Perpetual Preferred Stock, Series B Actions.  At any meeting of the holders of shares of 8%
Cumulative Perpetual Preferred Stock, Series B held for the purpose of
voting upon any resolutions requiring the approval of the holders of shares of 8%
Cumulative Perpetual Preferred Stock, Series B, voting as a separate class
or series, the presence in person or by proxy of the holders of a majority of
the shares of 8% Cumulative Perpetual Preferred Stock, Series B then
outstanding shall constitute a quorum of the 8% Cumulative Perpetual Preferred
Stock, Series B; the holders of shares of 8% Cumulative Perpetual
Preferred Stock, Series B shall be entitled to cast one vote per share of 8%
Cumulative Perpetual Preferred Stock, Series B; and such resolution shall
be deemed approved upon the affirmative vote of the holders of a majority of
the outstanding shares of 8% Cumulative Perpetual Preferred Stock, Series B
present in person or represented by proxy at such meeting.

 

(3)                                 Action Without
a Meeting.  Any action required by the
California Corporations Code to be taken at any annual or special meeting of
holders of 8% Cumulative Perpetual Preferred Stock, Series B, voting as a
separate class or series, may be taken without a meeting, without prior notice
and without a vote, if a consent or consents in writing, setting forth the
action so taken, shall be signed by the holders of outstanding shares of 8%
Cumulative Perpetual Preferred Stock, Series B having not less than the
minimum number of votes that would be necessary to authorize or take such
action at a meeting of the holders of 8% Cumulative Perpetual Preferred Stock, Series B
at which all shares entitled to vote thereon are present and voted and shall be
delivered (by hand, facsimile, U.S. Postal Service or overnight delivery
service) to the Corporation by delivery to its registered office in the State
of California, its principal place of business, or any officer or agent of the
Corporation having custody of the book in which proceedings of meetings of the
holders of 8% Cumulative Perpetual Preferred Stock, Series B are recorded.

 

Every written consent shall bear the date of
signature of each holder of 8% Cumulative Perpetual Preferred Stock, Series B
who signs the consent.  Prompt notice of
the taking of the corporate action without a meeting by less than unanimous
written consent shall, to the extent, required by applicable law, be given to
those holders of 8% Cumulative Perpetual Preferred Stock, Series B who
have not consented in writing, and who, if the action had been taken at a
meeting, would have been entitled to notice of the meeting if the record date
for such meeting had been the date that written consents signed by a sufficient
number of holders to take the action were delivered to the Corporation.

 

2

 

(4)                                 Major
Actions.  Notwithstanding anything to the
contrary set forth in the Articles of Incorporation, as amended or the Bylaws,
as amended of the Corporation, the affirmative vote of the holders of a
majority of the outstanding shares of 8% Cumulative Perpetual Preferred Stock, Series B
acting in accordance with paragraph (b)(2) or (b)(3), voting as a separate
class, shall be a prerequisite to:

 

(i)                                   any amendment
to, restatement of or waiver of the terms of the 8% Cumulative Perpetual
Preferred Stock, Series B;

 

(ii)                                the redemption
of any stock that is junior in ranking to the 8% Cumulative Perpetual Preferred
Stock, Series B;

 

(iii)                             until the
payment of all dividends required to be paid as set forth in paragraph (c), any
payment upon liquidation, any distribution or payment of dividend (other than a
stock dividend paid with stock ranking junior to the 8% Cumulative Perpetual
Preferred Stock, Series B) or other distribution to any stock ranking
junior to the 8% Cumulative Perpetual Preferred Stock, Series B; and

 

(iv)                            any amendment
to this paragraph b(4).

 

(c)                                Dividends.  The holders of the 8% Cumulative Perpetual
Preferred Stock, Series B shall be entitled to receive dividends,
semi-annually at the rate of 8% per annum of $20.00 ($0.80 per dividend
payment) per share, payable on June 15 and December 15 of each
year.  Dividends on the 8% Cumulative
Perpetual Preferred Stock, Series B shall (i) accrue on each such
share from the date of its original issuance and shall accrue day to day,
whether or not declared; (ii) be payable before any dividends on the
Corporation’s Common Stock or other shares of Preferred Stock are paid or declared
and set apart; and (iii) be cumulative, so that if dividends required to
be paid under this clause on the outstanding 8% Cumulative Perpetual Preferred
Stock, Series B have not been paid or set apart for any year or years
after the date of issuance of the 8% Cumulative Perpetual Preferred Stock, Series B,
the amounts of the deficiency shall be first fully paid or declared and set
apart for payment, but without interest, before any distribution, by dividend
or otherwise, payable other than in shares of the Corporation’s Common Stock,
is declared, paid on, or set apart for the shares of the Corporation’s Common
Stock or other shares of Preferred Stock. 
“Distribution” in this paragraph (c) means the transfer of cash or
property without consideration, whether by way of dividend or otherwise (except
a dividend in shares of the Corporation which are junior to the 8% Cumulative
Perpetual Preferred Stock, Series B as to dividends or assets) including
any such transfer by a subsidiary of the Corporation.  The time of any distribution by way of
dividend shall be the date of declaration thereof.

 

(d)                               Conversion
Rights.  The shares of 8% Cumulative
Perpetual Preferred Stock, Series B shall have the following rights of
conversion.

 

3

 

(1)                                 Optional
Conversion.  On or after December 31,
2010, any holder of shares of 8% Cumulative Perpetual Preferred Stock, Series B
shall have the right, at its option, provided that notice of conversion is
given by the holder of shares of 8% Cumulative Perpetual Preferred Stock, Series B
at least three business days prior to a conversion date (“Conversion Date”) to
convert, subject to the terms and provisions of this paragraph (d), any or all
of such holder’s shares of 8% Cumulative Perpetual Preferred Stock, Series B
into such number of fully paid and nonassessable shares of the Corporation’s
Common Stock as is equal to the product of (i) the number of shares of 8%
Cumulative Perpetual Preferred Stock, Series B being so converted multiplied
by (ii) the quotient (“Conversion Rate”) of (x) the sum of $20.00
plus any unpaid dividends on the 8% Cumulative Perpetual Preferred Stock, Series B
after issuance divided by (y) $2.50 (subject to adjustment as provided in
paragraph (d)(3) below.).  The “Conversion
Date” shall mean the first business day on or after June 15, or December 15
in any calendar year, at which time the Preferred Shares are effectively
converted into shares of the Corporation’s Common Stock.  Such conversion right shall be exercised by
the surrender of certificate(s) representing the shares of 8% Cumulative
Perpetual Preferred Stock, Series B to be converted to the Corporation at
any time during usual business hours at its principal place of business
maintained by it (or such other office or agency of the Corporation as the
Corporation may designate by notice in writing to the holders of shares of 8%
Cumulative Perpetual Preferred Stock, Series B), accompanied by written
notice that the holder elects to convert such shares of 8% Cumulative Perpetual
Preferred Stock, Series B and specifying the name or names (with address)
in which a certificate or certificates for shares of the Corporation’s Common
Stock are to be issued and (if so required by the Corporation) by a written
instrument or instruments of transfer in form reasonably satisfactory to the
Corporation duly executed by the holder or its duly authorized legal
representative and transfer tax stamps or funds therefor, if required pursuant
to paragraph (d)(8) below.  All
certificates representing shares of 8% Cumulative Perpetual Preferred Stock, Series B
surrendered for conversion shall be delivered to the Corporation for
cancellation and canceled by it.  As
promptly as practicable after the applicable Conversion Date, the Corporation
shall (subject to compliance with the applicable provisions of federal and
state securities laws) deliver to the holder of such shares so surrendered
certificate(s) representing the number of fully paid and nonassessable
whole shares of the Corporation’s Common Stock into which such shares are
entitled to be converted and cash in lieu of any fractional share.  At the time of the surrender of such
certificate(s), the person or entity in whose name any certificate(s) for
shares of Common Stock shall be issuable upon such conversion shall be deemed
to be the holder of record of such shares of Common Stock on such date,
notwithstanding that the share register of the Corporation shall then be closed
or that the certificates representing such Common Stock of the Corporation
shall not then be actually delivered to such person or entity.

 

(2)                                 Termination of
Rights.  On the date of such optional
conversion pursuant to paragraph (d)(1) above all rights with respect to
the shares of 8% Cumulative Perpetual Preferred Stock, Series B so
converted, including the rights, if any, to receive notices and vote, shall
terminate, except only the rights of holders thereof to (i) receive
certificates for the number of shares of the Corporation’s Common Stock into
which such shares of 8% Cumulative Perpetual Preferred Stock, Series B
have been converted and (ii) exercise the rights to which they are
entitled as holders of the Corporation’s Common Stock.

 

4

 

(3)                                 (A)                             Dividend, Subdivision,
Combination or Reclassification of Common Stock.  In the event that the Corporation shall at
any time or from time to time, prior to conversion of shares of 8% Cumulative
Perpetual Preferred Stock, Series B (w) pay a dividend or make a
distribution on the outstanding shares of Common Stock payable in capital stock
of the Corporation, (x) subdivide the outstanding shares of Common Stock
into a larger number of shares, (y) combine the outstanding shares of
Common Stock into a smaller number of shares or (z) issue any shares of
its capital stock in a reclassification of the Common Stock (other than any
such event for which an adjustment is made pursuant to another clause of this
paragraph (d)(3)), then, and in each such case, the Conversion Rate in effect
immediately prior to such event shall be adjusted (and any other appropriate
actions shall be taken by the Corporation) so that the holder of any share of 8%
Cumulative Perpetual Preferred Stock, Series B thereafter surrendered for
conversion shall be entitled to receive the number of shares of Common Stock or
other securities of the Corporation that such holder would have owned or would
have been entitled to receive upon or by reason of any of the events described
above, had such share of 8% Cumulative Perpetual Preferred Stock, Series B
been converted immediately prior to the occurrence of such event.  An adjustment made pursuant to this paragraph
(d)(3)(A) shall become effective retroactively (x) in the case of any
such dividend or distribution, to a date immediately following the close of
business on the record date for the determination of holders of Common Stock
entitled to receive such dividend or distribution or (y) in the case of
any such subdivision, combination or reclassification, to the close of business
on the day upon which such corporate action becomes effective.

 

(B)                              Certain
Distributions.  In case the Corporation
shall at any time or from time to time, prior to conversion of shares of 8%
Cumulative Perpetual Preferred Stock, Series B, distribute to all holders
of shares of the Common Stock (including any such distribution made in
connection with a merger or consolidation in which the Corporation is the
resulting or surviving entity and the Common Stock is not changed or exchanged)
cash, evidences of indebtedness of the Corporation or another issuer,
securities of the Corporation or another issuer or other assets (excluding cash
dividends in which holders of shares of 8% Cumulative Perpetual Preferred
Stock, Series B participate; dividends payable in shares of Common Stock
for which adjustment is made under another subparagraph of this paragraph (d);
or the issuance by another entity of capital stock in consideration of an
acquisition that also provides adequate consideration to the holders of 8%
Cumulative Perpetual Preferred Stock, Series B approved by the Board of
Directors) or rights or warrants to subscribe for or purchase of any of the
foregoing, then, and in each such case, the Conversion Rate then in effect
shall be adjusted (and any other appropriate actions shall be taken by the
Corporation) by multiplying the Conversion Rate in effect immediately prior to
the date of such distribution by a fraction (x) the denominator of which
shall be the then current market price of the Common Stock immediately prior to
the date of distribution less the then fair market value (as determined by the
Board of Directors in the exercise of their fiduciary duties) of the portion of
the cash, evidences of indebtedness, securities or other assets so distributed
or of such rights or warrants applicable to one share of Common Stock and (y) the
numerator of which shall be the then current market price of the Common Stock
immediately prior to the date of distribution (but such fraction shall not be
applicable with respect to any distribution of rights or warrants to subscribe
for or purchase securities of the Corporation if the holder of shares of 8%
Cumulative Perpetual Preferred

 

5

 

Stock, Series B would
otherwise be entitled to receive such rights or warrants upon conversion at any
time of shares of 8% Cumulative Perpetual Preferred Stock, Series B into
Common Stock).  Such adjustment shall be
made whenever any such distribution is made and shall become effective retroactively
to a date immediately following the close of business on the record date for
the determination of shareholders entitled to receive such distribution.

 

(C)                              No
Adjustment.  Notwithstanding anything
herein to the contrary, no adjustment under this paragraph (d)(3) need be
made to the Conversion Rate if the Corporation receives written notice from
holders of a majority of the outstanding shares of 8% Cumulative Perpetual
Preferred Stock, Series B that no such adjustment is required.

 

(4)                                 Abandonment.  If the Corporation shall take a record of the
holders of its Common Stock for the purpose of entitling them to receive a
dividend or other distribution, and shall thereafter and before the
distribution to shareholders thereof legally abandon its plan to pay or deliver
such dividend or distribution, then no adjustment in the Conversion Rate shall
be required by reason of the taking of such record.

 

(5)                                 Certificate as
to Adjustments.  Upon any adjustment in
the Conversion Rate, the Corporation shall maintain a detailed record of any
and all such adjustments setting forth in reasonable detail the event requiring
the adjustment and the method by which such adjustment was calculated and
specifying the increased or decreased Conversion Rate then in effect following
such adjustment.

 

(6)                                 Reorganization,
Reclassification.  In case of any merger
or consolidation of the Corporation or any capital reorganization,
reclassification or other change of outstanding shares of Common Stock (other
than a change in par value, or from par value to no par value, or from no par
value to par value) (each, a “Transaction”), the holder of each share of 8%
Cumulative Perpetual Preferred Stock, Series B shall have the right to
receive in such Transaction, in exchange for each share of 8% Cumulative
Perpetual Preferred Stock, Series B, a security identical to (and not less
favorable than) the 8% Cumulative Perpetual Preferred Stock, Series B, and
provision shall be made therefor in the agreement, if any, relating to such
Transaction.

 

(7)                                 Reservation of
Common Stock.  The Corporation shall at
all times reserve and keep available for issuance upon the conversion of shares
of 8% Cumulative Perpetual Preferred Stock, Series B, such number of its
authorized but unissued shares of Common Stock as will from time to time be
sufficient to permit the conversion of all outstanding shares of 8% Cumulative
Perpetual Preferred Stock, Series B, and shall take all action to increase
the authorized number of shares of Common Stock if at any time there shall be
insufficient authorized but unissued shares of Common Stock to permit such
reservation or to permit the conversion of all outstanding shares of 8%
Cumulative Perpetual Preferred Stock, Series B; provided, that the holders
of shares of 8% Cumulative Perpetual Preferred Stock, Series B shall vote
such shares in favor of any such action that requires a vote of shareholders.

 

6

 

(8)                                 No Conversion Tax or
Charge.  The issuance or delivery of
certificates for Common Stock upon the conversion of shares of 8% Cumulative
Perpetual Preferred Stock, Series B shall be made without charge to the
converting holder of shares of 8% Cumulative Perpetual Preferred Stock, Series B
for such certificates or for any tax in respect of the issuance or delivery of
such certificates or the securities represented thereby, and such certificates
shall be issued or delivered in the respective names of, or (subject to
compliance with the applicable provisions of federal and state securities laws)
in such names as may be directed by, the holders of  the shares of 8% Cumulative Perpetual
Preferred Stock, Series B converted; provided, however, that the
Corporation shall not be required to pay any tax which may be payable in
respect of any transfer involved in the issuance and delivery of any such
certificate in a name other than that of the holder of the shares of 8%
Cumulative Perpetual Preferred Stock, Series B converted, and the
Corporation shall not be required to issue or deliver such  certificate unless or until the person(s) or
entity(ies) requesting the issuance or delivery thereof shall have paid to the
Corporation the amount of such tax or shall have established to the reasonable
satisfaction of the Corporation that such tax has been paid.

 

(e)                                Liquidation
Rights.  In the event of a voluntary or
involuntary liquidation, dissolution or winding up of the Corporation, the
holders of shares of 8% Cumulative Perpetual Preferred Stock, Series B
shall be entitled to receive out of the assets of the Corporation, whether such
assets are capital or surplus of any nature, an amount equal to $20.00 per
share of 8% Cumulative Perpetual Preferred Stock, Series B and a further
amount equal to any dividends accrued and unpaid thereon, as provided in
paragraph (c) above, to the date that payment is made available to the
holders of shares of 8% Cumulative Perpetual Preferred Stock, Series B,
whether declared or not, and no more, before any payment shall be made or any
assets distributed to the holders of shares of the Corporation’s Common Stock or
other shares of Preferred Stock.

 

If, upon such liquidation, dissolution or winding up, the assets thus
distributed among the holders of shares of 8% Cumulative Perpetual Preferred
Stock, Series B shall be insufficient to permit the payment to such
shareholders of the full preferential amounts aforesaid, then the entire assets
of the Corporation to be distributed shall be distributed ratably among the
holders of shares of 8% Cumulative Perpetual Preferred Stock, Series B.

 

In
the event of any voluntary or involuntary liquidation, dissolution or winding
up of the Corporation, subject to all of the preferential rights of the holders
of shares of 8% Cumulative Perpetual Preferred Stock, Series B and the
preferential rights of holders any of the other shares of the Corporation’s
Preferred Stock on distribution or otherwise, the holders of shares of the
Corporation’s Common Stock shall be entitled to receive, ratably, all remaining
assets of the Corporation.

 

A
consolidation or merger of the Corporation with or into any other corporation
or corporations, or a sale of all or substantially all of the assets of the
Corporation, shall not be deemed to be a liquidation, dissolution or winding up
within the meaning of this paragraph (e).

 

7

 

(f)                                  Right of
Redemption.

 

(1)                                 The shares of
the 8% Cumulative Perpetual Preferred Stock, Series B are not redeemable
at the option of the holder.

 

(2)                                 The shares of
the 8% Cumulative Perpetual Preferred Stock, Series B are redeemable at
the option of the Corporation, subject to prior approval of the Board of
Governors of the Federal Reserve System, at a price of $22.00 per share plus
all outstanding and unpaid dividends with at least ten (10) days’ prior
notice of redemption.

 

(g)                               No Preemptive
Rights.  The shares of 8% Cumulative
Perpetual Preferred Stock, Series B shall not have any preemptive rights.

 

RESOLVED
FURTHER, that the Chairman of the Board, the President or any Vice President,
and the Secretary, the Chief Financial Officer, the Treasurer, or any Assistant
Secretary or Assistant Treasurer of the Corporation are each authorized to
execute, verify and file a Certificate of Determination in accordance with
California law.

 

4.                                       The authorized
number of shares of Preferred Stock of the Corporation is 10,000,000, and the
number of shares of Preferred Stock constituting the 8% Cumulative Perpetual
Preferred Stock, Series B, none of which has been issued, is 105,647.

 

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.

 

Date:  December 22,
2009

 

	
   

  	
   

  
	
   

  	
  Name:

  	
  Gayle J. Lee

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

 

	
   

  	
   

  
	
   

  	
  Name:

  	
  John F. Coger

  
	
   

  	
  Title:

  	
  EVP/Chief Financial
  Officer

  

 

8

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