Exhibit 99.1

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this “Agreement”) is entered into on January 17, 2020 to be effective as of February 3, 2020, by and between Sierra Bancorp, a California corporation (“Bancorp”), Bank of the Sierra, a California banking corporation (“Bank”), and Jennifer Johnson (“Executive”) on the following terms and conditions.

Executive shall be the Bank’s and Bancorp’s Executive Vice President and Chief Administrative Officer (“AO”).  In that role, she shall have the duties set forth in this Agreement and in the By-Laws of the Bank and Bancorp, subject to the direction of the Chief Executive Officer (“CEO”) or the Board of Directors of the Bank or Bancorp, as applicable.  In addition to such other duties as may be assigned to her, Executive shall be a member of the Executive Officers’ Committee and shall perform other such duties as are customarily performed by the Chief Administrative Officer of a bank holding company and commercial bank.

Executive shall devote substantially her full business time, ability,  and attention to the business of the Bank and Bancorp during the term of Executive’s  employment under this Agreement and shall not during the term of her employment engage in any other business activities, duties, or pursuits whatsoever, or directly or indirectly render  any services of a business, commercial, or professional nature to any other person or organization which is competitive with the Bank or Bancorp, whether  for  compensation or otherwise, without the prior written  consent of the CEO or the Board of Directors  of the Bank or Bancorp, as applicable. However, the  expenditure of  reasonable amounts of time  for  educational, charitable, or professional  activities shall not be deemed a breach of this Agreement if those activities do not materially interfere with the services required  of Executive under this Agreement.  Nothing in this Agreement shall be interpreted to prohibit Executive from making passive personal investments.  However, Executive shall not directly or indirectly acquire, hold, or retain any interest in any business competing with or similar in nature to the business of the Bank or Bancorp, as applicable, except passive shareholder investments in other  financial institutions and their respective affiliates which do not exceed  two percent (2%) of the outstanding voting securities in the aggregate of any single  financial institution and its affiliates on a consolidated basis.

(a)Executive shall not, during the term of Executive’s  employment under this Agreement, directly or indirectly,  either as  an employee,  employer, consultant, agent, principal, stockholder (except as permitted in paragraph 2 of this

Agreement), officer, director, or in any other individual or representative capacity,  engage or participate in any  competitive banking or  financial services business without the prior written  consent of the Board of Directors  of the Bank or Bancorp.

(b)Following termination of this Agreement and Executive’s  employment hereunder  and for a period of twelve  (12) months thereafter, Executive shall not use  any  confidential, trade secret, or proprietary information of the Bank or Bancorp, or their respective  affiliates  and subsidiaries, including information described in paragraph 6  below, to solicit, encourage or assist, directly, indirectly or in any manner whatsoever,  (i) any employees  of the Bank or Bancorp and their respective affiliates  and subsidiaries to resign  or to  apply for or accept employment with any other  competitive banking or financial services business within the  counties in California in which the Bank has located its headquarters or branch offices; or  (ii)  any customer, person or entity that has or has had a business relationship with the Bank or Bancorp during the twelve  (12) month period prior to Executive’s termination of  employment with the Bank or Bancorp, to terminate or reduce such business relationship and engage in a business relationship with any other  competitive banking or  financial services business within the  counties in California in which the Bank or Bancorp has located its headquarters or branch offices.

 

Employee’s employment under this Agreement shall commence as of February 3, 2020 (the “Effective Date”) and shall continue thereafter until December 31, 2022 (the “Term”), subject to prior termination or extension as set forth in this Agreement.  The Term of the Agreement shall be automatically extended for a subsequent period or periods of one (1) year each unless, not later than six (6) months prior to the expiration of the then current Term, either party shall have given written notice to the other that the Term shall not be so extended.

 

To the  extent permitted  by law and applicable regulations, the Bank or Bancorp shall indemnify Executive if  she was or is a party or is threatened to be made a party in any action brought by a third party against Executive  (whether or not the Bank or Bancorp is joined  as a party defendant) against expenses, judgments, fines, settlements and other  amounts actually and reasonably incurred in connection with said action if Executive acted in good faith and in a manner Executive reasonably believed to be in the best interests of the Bank or Bancorp (and with respect to a criminal proceeding if Executive had no reasonable cause to believe her conduct was unlawful), provided that  the  alleged conduct of Executive arose out of and was within the course  and scope of her employment as  an  officer or Executive of the Bank or Bancorp.

 

Executive shall not, either before or after termination of Executive’s  employment under this Agreement, without the prior written  consent of the Board of Directors of the Bank or Bancorp, or except as  required  by law to comply with legal process including, without limitation, by oral or written testimony,  depositions, interrogatories, requests for information or documents, subpoena,  civil investigative demand or similar process, or except as required in the course of Executive’s employment under this Agreement, disclose to anyone  any financial  information, trade or business secrets, customer lists, computer software or other information concerning the business or operations of the Bank or Bancorp, and their respective affiliates and subsidiaries; provided, that such information shall not include information (i) in or which  enters the public domain  (other than  by breach  of Executive’s obligations hereunder);  (ii) acquired  by Executive other than in connection with her employment; or  (iii) that is disclosed to Executive by a third party not known to Executive to be obligated to the Bank or Bancorp, to keep such information confidential.  In the  event Executive is required  by law to disclose such information described in this paragraph 6, Executive will provide the Bank and Bancorp, and their  counsel with immediate notice of such request so that they may consider seeking a protective order, provided that Executive shall not be required to incur any expense in connection therewith.   If, in the  absence of a protective order or the receipt of a waiver hereunder, Executive is nonetheless, compelled to disclose any of such information to any tribunal or  any other party or else stand liable  for  contempt or suffer other material  censure or material penalty,  then Executive may disclose  (on an “as needed” basis only) such information to such tribunal or other party without liability hereunder. Notwithstanding the  foregoing, Executive may disclose such information  concerning the business or operations of the Bank or Bancorp, and their respective affiliates and subsidiaries  as may be required  by the Federal Deposit Insurance Corporation (“FDIC”), California Department of Business Oversight (“DBO”) or the Federal Reserve Bank of San Francisco or Board of Governors of the Federal Reserve System (collectively, the “FRB”) or other  regulatory agency having jurisdiction over the operations of the Bank or Bancorp, in connection with an  examination of the Bank or Bancorp, or other proceeding  conducted  by such  regulatory agency.

 

All written, printed or  electronic material, notebooks and records including, without limitation, computer files used  by Executive in performing duties  for the Bank or Bancorp, other than Executive's personal  address lists, telephone lists, notes  and diaries, are  and shall remain the sole property of the Bank or Bancorp.  Upon termination of  employment, Executive shall promptly return  all such material  (including all copies, extracts and summaries thereof) and any other property of Bank or Bancorp in the possession or under the control of Executive to the Bank or Bancorp.

 

The Bank or Bancorp shall pay Executive an annual minimum base salary (“Base Salary”) from the Effective Date of three hundred forty thousand dollars ($340,000.00), less appropriate withholding, taxes and similar deductions, payable in equal installments on those days when the Bank normally pays its employees.  On or before December 31, 2020, and not less than once each twelve (12) months thereafter, the Board of Directors of the Bank and Bancorp shall review the Base Salary of Executive to evaluate the Base Salary based upon the performance of Executive, market conditions for salaries to individuals similarly employed, increases in the cost of living, and similar factors.  Any such increase will be in the sole discretion of the Boards of Directors of the Bank and Bancorp.

At the end of each calendar year or any partial calendar year period in the Term, the amount of bonus compensation (“Bonus”), if any, to be paid to Executive shall be determined in the sole discretion of the Boards of Directors of the Bank and Bancorp based upon the performance of Executive and the results of the Bank’s and Bancorp’s operations and the terms of any bonus or incentive compensation plan then in effect respecting the executives of the Bank or Bancorp.  The amount of any annual bonus shall be paid to Executive not later than March 15 of the following year. Executive’s aggregate Bonus for any period for which a bonus is calculated shall not exceed 50% of Executive’s Base Salary for such period and shall be based on criteria set forth by the compensation committee of the Board of Directors of Bank and Bancorp.

In accordance with Bank and Bancorp policy as it may exist from time to time, and subject to the approval of all such expenses by the Board of Directors of the Bank or Bancorp or their designee, as applicable, Executive shall be entitled to reimbursement by the Bank or Bancorp for any ordinary, reasonable business expenses incurred by Executive in the performance of Executive’s duties and in acting for the Bank or Bancorp during the term of this Agreement, provided that Executive furnishes to the Bank or Bancorp substantially adequate records and other documentary evidence as required by the Bank’s or Bancorp's policies.

During the term of her employment under this Agreement, Executive shall be entitled to receive the following benefits:

 

 

 

 

 

This Agreement shall terminate  automatically without further act  of the parties  and immediately upon the occurrence of any one of the following events, subject to either party's right, without any obligation whatsoever, to waive an  event reasonably susceptible of waiver,  and the obligation of the Bank or Bancorp to pay the amounts which would otherwise be payable to Executive under this Agreement through the end of the month in which the  event occurs.  Only in the  event of termination based upon a Change in Control of Bancorp as provided in paragraph 9 (a) (viii), shall Executive be  entitled to receive severance benefits based upon automatic termination pursuant to paragraph 9 (d) (i) of this Agreement:

(i)The death of Executive.

(ii)The willful, intentional  and material breach or the habitual  and continued neglect  by Executive of her employment responsibilities  and duties.

(iii)The  continuous mental  or physical incapacity of Executive.

(iv)Executive's willful and intentional violation of  any state or federal banking or securities laws, or of the bylaws, rules, policies or resolutions of the Bank or Bancorp, or the rules or regulations of the  FDIC, DBO, FRB or other  regulatory agency or  governmental  authority having jurisdiction over the Bank or Bancorp, which has a material  adverse effect upon the Bank or Bancorp.

(v)The written determination by a state or federal  regulatory agency or governmental authority having jurisdiction over the Bank or Bancorp that Executive is not suitable to act in the capacity for which she is employed  by the Bank or Bancorp.

(vi)Executive’s (A) conviction or plea of nolo contendere to any felony or a crime involving moral turpitude, or (B) Executive’s willful and intentional  commission of a  fraudulent or dishonest  act.

(vii)Executive’s non-insurability for surety bond coverage  as determined in the sole discretion of the Bank’s insurer  at 

any time during the term of Executive’s  employment under this Agreement.

(viii)A Change in Control of Bancorp.

The Bank and Bancorp may, at their election and in their sole discretion, terminate Executive’s  employment and this Agreement at  any time  and for  any reason or for no reason, upon thirty (30) days  prior written notice to Executive, without prejudice to any other remedy to which the Bank or Bancorp may be entitled  either  at law, in equity or under this Agreement.  Unless otherwise  agreed in writing by Bank and Bancorp, at the effective time of such notice Executive shall continue performing and discharging the duties  and responsibilities of her positions for such thirty (30) day period.  All rights and obligations accruing to Executive under this Agreement shall cease at such termination, except that such termination shall not prejudice Executive’s  rights regarding employment benefits which shall have accrued prior to such termination, including the  right to receive the severance benefits specified in paragraph 9  (d) (ii) below.

Executive may terminate her employment with the Bank and Bancorp and this Agreement at any time and for any reason or no reason, upon ninety (90) days prior written notice to the Bank and Bancorp.  Unless otherwise agreed in writing by the Bank and Bancorp, at the effective time of such notice Executive shall continue performing  and discharging the duties  and responsibilities of her positions for such ninety (90) day period.   All rights and obligations  accruing to Executive under this Agreement shall cease  at such termination, except that such termination shall not prejudice Executive's  rights regarding employment benefits, including vested stock options or supplemental retirement or salary continuation plan benefits, which shall have accrued and vested prior to such termination.

(i)Subject to paragraphs 11 and 23 of this Agreement, in the  event of  automatic termination based upon a Change in Control under paragraph 9 (a) (viii), then Executive shall receive Change in Control benefits consisting of (A) a cash payment in an  amount equal to 150% of Executive's then current  Base Salary during the year the termination occurs,  less applicable withholding deductions (in addition to accrued Base Salary, incentive compensation, or other payments, if  any, due Executive), payable in lump sum promptly after sixty (60) days following such termination, but in no event later than  March 15 following the  end of the calendar year that  includes such termination; and (B)  continuation of group health, vision and dental insurance coverages specified in paragraph 8 (d) (i) of this Agreement for Executive and fifty percent (50%) of the costs of Executive’s dependents pursuant to The  Consolidated Omnibus Budget  Reconciliation Act of 1985

(“COBRA”), or under  applicable California law pursuant to Assembly  Bill No. 1401 (“Cal-COBRA”), with one hundred percent (100%) of premiums for the insurance coverages payable by the Bank or Bancorp monthly to Executive  for a period of twelve  (12) months from the date of termination.  Notwithstanding the foregoing or any other provision in this Agreement to the contrary, the obligation of the  Bank or Bancorp to pay the premium costs related to the COBRA or Cal-COBRA  continuation of insurance coverages shall terminate  at the earlier of the  expiration of twelve (12) months from the date of termination or the date of commencement of comparable insurance coverages  for Executive by another  employer. After such expiration date, Executive shall have such  rights to continue to participate under the Bank’s  group health benefits plan at Executive’s  expense  as may be  available under COBRA  or Cal  COBRA.  Executive  agrees to notify the Bank as soon as practicable, but not less than ten  (10) business days in advance of the  commencement of such  comparable insurance  coverages with another  employer and to repay to the Bank any  amounts paid by the Bank to or  for the benefit of Executive that overlap the coverages provided  by the other  employer.

(ii)Subject to paragraphs 11 and 23 of this Agreement, termination by the Bank and Bancorp of this Agreement and Executive’s employment under paragraph 9 (b), other than in connection with an event constituting automatic termination; then Executive shall receive severance benefits consisting of (A) a cash payment in an  amount equal to 100% of Executive's then current  Base Salary during the year the termination occurs,  less applicable withholding deductions (in addition to accrued Base Salary, incentive compensation, or other payments, if  any, due Executive), payable in lump sum promptly after sixty (60) days following such termination (but in no event later than  March 15 following the  end of the calendar year that  includes such termination) and (B)  continuation of group health, vision and dental insurance coverages specified in paragraph 8 (d) (i) of this Agreement for Executive and fifty percent (50%) of the costs of Executive’s dependents pursuant to The  Consolidated Omnibus Budget  Reconciliation Act of 1985 (“COBRA”), or under  applicable California law pursuant to Assembly  Bill No. 1401 (“Cal-COBRA”), with one hundred percent (100%) of premiums for the insurance coverages payable by the Bank or Bancorp monthly to Executive  for a period of twelve  (12) months from the date of termination.  Notwithstanding the foregoing or any other provision in this Agreement to the contrary, the obligation of the  Bank or Bancorp to pay the premium costs related to the COBRA or Cal-COBRA  continuation of insurance coverages shall terminate  at the earlier of the  expiration of twelve (12) months from the date of termination or the date of commencement of comparable insurance coverages  for Executive by another  employer. After such expiration date, Executive shall have such  rights to continue to participate under the Bank’s  group health benefits plan at Executive’s  expense  as may be  available under COBRA  or Cal  COBRA.  Executive  agrees to notify the Bank as soon as practicable, but not less than ten  (10) business days in advance of the  commencement of such  comparable insurance  coverages with another  employer and to repay to the Bank any  amounts paid by the Bank to or  for the benefit of Executive that overlap the coverages provided  by the other  employer.

(iii)Executive acknowledges and agrees that severance benefits pursuant to this paragraph 9 (d) are in lieu of  all damages, payments and liabilities on account of the early termination of Executive’s  employment under this Agreement.  Any payment made under any subparagraph of paragraph 9 (d) shall preclude further payment under any other subparagraph of paragraph 9 (d).

 

As contemplated by paragraph 9 (a) (viii), Executive shall be  entitled to receive severance in the  event of a “Change in Control”  under paragraph 9 (d) (1) occurring while Executive is employed by the Bank or Bancorp.  Such event shall automatically terminate employment under this Agreement.

(i)“Change in Control” of the Bancorp or the Bank shall be deemed to have occurred (as of a particular day, as specified by the Board) upon the occurrence of any of the following events:

(A)Any one Person, or more than one Person acting as a group, acquires ownership of stock of the Bank or Bancorp that, together with stock held by such Person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Bancorp; provided, however, that a Change of Control shall not be deemed to have occurred in the event of either:

(1)a reorganization in which the shareholders of the Bancorp before the reorganization hold equity interests, directly or indirectly, in the reorganized company in substantially the same proportion as they held equity interests in Bancorp; or

(2)a change of control of the Bank where approval of the payment to Executive under Part 359 of the FDIC’s regulation is required and is not obtained; or

(3)a merger or acquisition by the Bancorp that is approved by the Bank's Board and in which the shareholders of the Bancorp immediately before completion of the transaction hold, directly or indirectly, more than 50% of the equity interests in the surviving corporation after completion of the transaction.

(B)one Person, or more than one Person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person or group), assets from the Bank or Bancorp that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all assets of Bancorp immediately prior to such acquisition or acquisitions. 

(C)References to "group" within this definition of "Change of Control" will be determined in a manner provided for in Treasury Regulations promulgated under Internal Revenue Code section 409A, in particular

Treasury Regulation Section 1.409A-3(i)(5)(v)(B) as applicable except to the extent modified or further limited above, and to the extent this definition serves as a payment event for nonqualified deferred compensation within the meaning of Code Section 409A, any transactions constituting a Change in Control under the above referenced definition will only constitute a payment event under this Agreement if, and to the extent, such definition does not violate Internal Revenue Code section 409A.

(ii)A Change in Control shall not be deemed to occur unless and until all regulatory  approvals required in order to effectuate a Change in Control of the Bank have been obtained and the transaction constituting the Change in Control has been consummated.  

Notwithstanding any other provision of this Agreement to the contrary, the Bank and Executive agree it shall be  an  express condition to Executive’s  receipt of  any severance benefits of any kind under paragraph 9 (d), that Executive  execute a  full and complete release, substantially in the  form  and  content attached hereto as  Exhibit A, of any and all claims against the Bank and Bancorp and their respective affiliates, directors, officers, employees, agents, attorneys, insurers, and successors in interest, arising from or in any way related to Executive’s  employment or termination of Executive’s  employment pursuant to this Agreement and Executive shall not revoke such  release of  claims.

10.[RESERVED]

11.Section 409A and 280G Limitations

It is the intention the Bank, Bancorp and Executive that this Agreement shall be interpreted  and administered consistent with Section 409A of the Internal  Revenue Code of 1986, as  amended  (“Section 409A”)  and that the severance and other benefits payable to Executive under this Agreement either be exempt from, or otherwise comply with, Section 409A.  Notwithstanding any other term, provision, or other matter set  forth elsewhere in this Agreement, to the extent that  any provision of this Agreement may be determined  by the Bank, with the  advice of its independent accounting firm or other tax advisors, to be subject to and not in compliance with Section 409A, such provisions shall be interpreted in the manner  required to comply with Section 409A.  The Bank, Bancorp and Executive  further acknowledge  and agree that if, in the judgment of the Bank and Bancorp, with the  advice of its independent accounting firm or other tax  advisors, amendment of this Agreement is necessary to clarify any of the terms of this Agreement, or to comply with Section 409A, the Bank, Bancorp and Executive will negotiate reasonably and in good  faith to amend the terms of this Agreement to the extent necessary so that it complies  (with the most limited possible economic effect on the  Bank and

Executive) with Section 409A.  If any payment under this Agreement fails to comply with or be exempt from Section 409A, neither the Bank nor Bancorp shall have liability for any taxes, penalties, interest or fees imposed on Executive and Executive shall have no claim against the Bank or Bancorp or any of its directors, officers, employees, shareholders, affiliates, managers, members, partners, agents, attorneys or representatives for any such taxes, penalties, interest or fees.

 

(i)Notwithstanding any provision of this Agreement to the contrary, if Executive is considered a “Specified Employee” (as defined below),  any distributions hereunder which would otherwise be made to Executive pursuant to the terms of this Agreement shall not be made during the  first six (6) months following termination of  employment that  constitutes a separation from service pursuant to Section 409A unless Executive dies prior to the  end of such  six (6) month period.  Any distribution which would otherwise be paid to Executive during such six (6) month period shall be accumulated and paid to Executive in a lump sum on the first day of the seventh (7th) month following such a separation from service.  All subsequent distributions shall be paid in the manner otherwise specified in this Agreement.

(ii)The term  “Specified Employee” shall mean an  employee who at the time of separation from service is a  “Key Employee” of the Bank or Bancorp or a successor  entity of  either, if  any stock of the Bank or Bancorp or a successor  entity of either is publicly traded on an  established securities market or otherwise.  For purposes of this Agreement, an  employee is a Key Employee if the  employee meets the requirements of section 416(i)(1)(A)(i), (ii), or  (iii) of the Internal Revenue Code of 1986, as  amended  (applied in accordance with the regulations thereunder and disregarding section 416(i)(5) thereof) at  any time during the twelve  (12) month period ending on December 31 (the "Identification Period").   If the  employee is a Key Employee during an  Identification Period, the employee is treated  as a Key Employee  for purposes of this Agreement during the twelve  (12) month period that begins on the  first day of April following the  close of the Identification Period.

(c)280 G

If Executive’s severance or other compensation provided by the Bank or Bancorp under this Agreement or outside this Agreement would cause any such payment to be an “excess parachute payment” (as defined in Section 280G(b)(1) of the Internal Revenue Code), then the payments made under paragraph 9 hereof or made outside this Agreement, as applicable, will be reduced (pro rata in the case of installment payments) to the largest amount which may be paid without any portion of such amount being subject to the excise tax imposed by Section 4999 of the Internal Revenue Code.  In the event there is a dispute among the parties regarding the extent to which payments must be reduced pursuant to this paragraph 11 (c), such dispute will be resolved by the good faith determination of the Board of

Directors of the Bank or Bancorp or the Compensation Committee of the Board of Directors of the Bank or Bancorp.

Any notices to be given hereunder shall be in writing and may be transmitted  by email with confirmation of receipt by the recipient or its counsel, personal  delivery or by U.S. mail, registered or certified, postage prepaid with return  receipt requested.  Mailed notices shall be addressed to Executive  at the  address listed in Executive’s personnel  file  and to the Bank at its principal business office located  at 86 N. Main Street, Porterville, California 93257.  A party may change the address  for  receipt of notices by written notice in accordance with this paragraph 12.  Notices delivered personally shall be deemed  communicated  as of the date of actual  receipt; mailed notices shall be deemed communicated  as of three  (3) days after the date of mailing; and emailed notices upon confirmation of receipt.

 

All claims, disputes  and other matters in question arising out of or relating to Executive’s  employment and/or this Agreement or the breach or interpretation thereof, other than those matters which  are to be determined  by the Bank or Bancorp, in their respective sole and absolute discretion, shall be resolved  by binding arbitration before a  representative member, selected  by the mutual  agreement of the parties, of the American Arbitration Association (“AAA”) in accordance with the rules  and procedures of AAA then in effect.  Notice of the demand for arbitration shall be  filed in writing with the other party to this Agreement and with AAA.   In no event shall the demand for arbitration be made after the date when institution of legal or equitable proceedings based on such  claim, dispute or other matter in question would be barred  by the applicable statute of limitations.  Any  award rendered  by AAA shall be in writing and final and binding upon the parties, and as  applicable, their respective heirs, beneficiaries, legal  representatives, agents, successors and assigns, and may be  entered in any court having jurisdiction thereof to the extent permitted  by  applicable law.  The obligations and rights of the parties to arbitrate pursuant to this clause shall be specifically enforceable in accordance with, and shall be  applied, construed  and interpreted  consistently with, the provisions of the Federal Arbitration Act, 9 U.S.C. section 1, et seq.  Executive  agrees to conduct  arbitration as  an individual solely upon and related to Executive’s own claims and waives  any right to pursue such  claims as a  class action.  Any  arbitration hereunder shall be  conducted in Fresno,  California, unless otherwise agreed to by the parties.

 

In the event of litigation, arbitration or  any other  action or proceeding between the parties to interpret or  enforce this Agreement or  any part thereof or otherwise arising out of or relating to this Agreement, the prevailing party shall be entitled to recover its costs related to any such action or proceeding and its

reasonable  fees of attorneys, accountants and  expert witnesses incurred  by such party in connection with any such  action or proceeding.  The prevailing party shall be deemed to be the party which obtains substantially the relief sought by final  resolution, compromise or settlement, or  as may otherwise be determined  by order of a  court of competent jurisdiction in the  event of litigation, an  award or decision of one or more arbitrators in the  event of arbitration, or a decision of a  comparable official in the  event of  any other action or proceeding.  Every obligation to indemnify under this Agreement includes the obligation to pay reasonable fees of attorneys, accountants and expert witnesses incurred  by the indemnified party in connection with matters subject to indemnification.

 

This Agreement supersedes  any and all other agreements, either oral or in writing, between the parties with respect to the employment of Executive by the Bank and contains all of the  covenants and agreements between the parties with respect to the employment of Executive by the Bank or Bancorp; provided, that, this Agreement does not supersede or replace the  rights  and benefits under  (i) any supplemental retirement or salary continuation plan, or (ii)  any stock option or equity award agreement between Bancorp and Executive.  Each  party to this Agreement acknowledges that no other representations, inducements, promises, or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of  any party, which  are not set  forth herein, and that no other agreement, statement, or promise not contained in this Agreement shall be valid or binding on either party.

 

Any modification of this Agreement will be effective only if it is in writing and signed  by a party or its authorized  representative.

 

The failure of a party to insist on strict  compliance with any of the terms, provisions, covenants, or conditions of this Agreement by another party shall not be deemed a waiver of any term, provision, covenant, or  condition, individually or in the aggregate, unless such waiver is in writing, nor shall any waiver or relinquishment of  any right or power  at any one time or times be deemed a waiver or relinquishment of that  right or power for  all or  any other times.

 

If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired  or invalidated in any way.

 

 

This Agreement shall be  construed without regard to the party responsible  for the preparation of the Agreement and shall be deemed to have been prepared jointly by the parties.  Any ambiguity or uncertainty existing in this Agreement shall not be interpreted against either party, but according to the  application of other  rules of  contract interpretation, if  an ambiguity or uncertainty exists.

 

The laws of the State of California, other than those laws denominated  choice of law  rules, and the  rules  and regulations of the regulatory authorities having jurisdiction over the Bank and Bancorp including, but not limited to, the FRB, FDIC and DBO, shall govern the validity, construction and effect of this Agreement, except for paragraph 13 regarding  arbitration, which shall be governed  by the Federal  Arbitration Act  (9 U.S.C. § 1, et seq.).  Any action which in any way involves the rights, duties  and obligations of the parties hereunder  and is not resolved  by binding arbitration shall be brought in the  courts of the State of California or federal  court  and venue  for  any action or proceeding shall be in the California Superior Court  for Tulare or in the United  States District  Court  for the Eastern District of California,  and the parties hereby submit to the personal jurisdiction of said courts.

 

If Executive dies prior to the  expiration of the term of Executive’s  employment, any payments that may be due Executive from the Bank or Bancorp under this Agreement as  of the date of death shall be paid to Executive's heirs, beneficiaries, successors, permitted  assigns or transferees, executors, administrators, trustees, or  any other legal or personal representatives.

 

Except as specifically set  forth in this Agreement, Executive may not assign, delegate or otherwise transfer  any of Executive’s  rights, benefits, duties or obligations under this Agreement without the prior written  consent of the Bank and Bancorp.  This Agreement shall inure to the benefit of  and be binding upon the Bank and Bancorp and their respective successors and assigns, and Executive  and Executive’s heirs, beneficiaries, successors, permitted  assigns or transferees, executors, administrators, trustees, and any other legal or personal  representatives.

 

 

Executive, the Bank, and Bancorp acknowledge and agree that notwithstanding any other provision of this Agreement to the  contrary, the  rights, benefits, duties, or obligations of the parties hereunder  are  conditioned upon  and

subject to the rules  and regulations promulgated  by regulatory authorities having jurisdiction over the Bank.

 

Upon the termination of this Agreement, the obligations of the Bank and Executive hereunder shall cease except to the  extent of the Bank or Bancorp’s obligations to make payments, if any, to or  for the benefit of Executive  following termination, and provided that  paragraphs 3, 5, 6, 7, 9(f), 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24 and 25 shall remain in full force and effect.

 

Executive acknowledges and agrees that she has  read and understands the terms and provisions of this Agreement and prior to signing this Agreement, she has had the  advice of  counsel and/or such other advisors  as she deemed  appropriate in connection with her review  and analysis of such terms and provisions of this Agreement.

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IN WITNESS WHEREOF, this Agreement is executed as of the day and year first above written.

EXECUTIVE

 

/s/ Jennifer Johnson____________________

Jennifer Johnson

 

 

SIERRA BANCORP

A California corporation

 

 

By:/s/ Kevin McPhaill__________________

Name:Kevin McPhaill

Title:President/CEO

 

 

BANK OF THE SIERRA 

A California banking corporation

 

 

By:/s/ Kevin McPhaill__________________

Name:Kevin McPhaill

Title:President/CEO

 

 

 

EXHIBIT A

GENERAL RELEASE AGREEMENT

THIS GENERAL RELEASE AGREEMENT (the “Release Agreement”) is entered into by and among Jennifer Johnson (the “Executive”), Sierra Bancorp, a California corporation (“Bancorp”), Bank of the Sierra, a California banking corporation (“Bank”), for the purposes set forth hereinafter.

In consideration for the payment of severance of that certain Employment Agreement between the parties dated __________, 2020 (the “Employment Agreement”), which payments the Executive is not otherwise entitled to receive and the sufficiency of which the Executive acknowledges, the Executive has agreed to waive any and all claims or grievances which the Executive has or may have against the Bank and Bancorp and all of their respective past, present and future affiliates, subsidiaries, predecessors, and successor corporations, and their respective subsidiaries and affiliates, and their respective past or present shareholders, directors, officers, employees, trustees, agents, and representatives, in their individual or representative capacities, and all benefits plans of such companies, including current and former trustees and administrators of such plans (all of the foregoing individually and collectively referred to hereinafter as the “Released Parties”), in accordance with the terms of this Release Agreement. Nothing contained in this Release Agreement shall be interpreted as an admission of liability by any of the Released Parties.

In furtherance of the foregoing, the Executive agrees, for the Executive and for all persons acting on the Executive's behalf (such as, but not limited to, the Executive's family, heirs, executors, administrators, personal representatives, agents and/or legal representatives), to forever and fully release and discharge the Released Parties from any and all claims, actions, causes of action, contracts, grievances, demands, and/or other liability of any nature whatsoever against any or all of the Released Parties, that the Executive ever had by reason of or arising out of any matter, cause and/or event occurring on or prior to the date of the expiration of the revocation period described below including, but not limited to, the following matters (which are individually and collectively referred to hereinafter as the “Released Claims”):

(i)any and all claims of any nature which are in any way related to the Executive's employment, the termination of such employment, the Agreement, promissory estoppel, any and all claims for forced resignation, constructive discharge, libel, slander, deprivation of due process, wrongful discharge, discrimination, harassment of any nature, breach of contract, breach of implied contract, the infliction of emotional distress, detrimental reliance, invasion of privacy, negligence, malicious prosecution, false imprisonment, fraud, assault and battery, interference with contractual or other relationships, retaliatory discharge or treatment and/or termination in violation of public policy;

(ii)any and all claims under any federal, state and/or local discrimination law, regulation, executive order, rule and/or ordinance;

(iii)any and all claims which could have been alleged in any litigation between the Executive and any of the Released Parties;

(iv)any right, claim or demand, which may have arisen on or prior to the date of signing of this Release Agreement, which the Executive may have pursuant to the Age Discrimination in Employment Act, the Older Workers Benefits Protection Act, the WARN Act, the Employee Retirement Income Security Act, the Americans With Disabilities Act, the Fair Labor Standards Act, the Equal Pay Act, the Family Medical Leave Act, the Occupational Safety and Health Act, the Uniformed Services Employment and Reemployment Rights Act, the Fair Credit Reporting Act, Title VII of the Civil Rights Act of 1964, the California Labor Code, the California Fair Employment and Housing Act, the California Labor Management Relations and Employment Practices Laws, the California Wages, Hours and Payment of Wages Laws, the California Equal Pay Laws, the California Handicapped Laws, the California Family Rights Act, the California Sexual Orientation Bias Laws, the California Aids Laws, and/or any other federal, state and/or local law, executive order, rule, ordinance or regulation, all as they have been or may be amended; and

(v)any and all claims arising or accruing through the date of the signing of this Release Agreement, of whatever nature, kind or character, whether known or unknown, past or present, and in furtherance thereof, the Executive expressly waives all rights under Section 1542 of the California Civil Code which reads as follows:

Section 1542. “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

It is expressly understood and agreed by the Executive that this Release Agreement is in full accord, satisfaction and discharge of any and all doubtful and disputed claims by the Executive against the Released Parties, and that this Release Agreement is intended to include in its effect and to extinguish all claims, whether or not known to the Executive.

Notwithstanding the foregoing or any contrary provision of this Release Agreement, the Executive and the Bank agree that the Released Claims shall exclude the Executive’s (i) rights to indemnification under the Bank’s articles of incorporation and bylaws, or under any indemnification agreement between Bank and Executive and (ii) vested benefits under plans or programs maintained by the Bank in which the Executive participated prior to the Executive’s termination of employment including, but not limited to any stock option and equity award plans.

The parties further understand and agree as follows:

 

 

 

 

 

 

THE EXECUTIVE IS HEREBY ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS RELEASE AGREEMENT AND THE EXECUTIVE IS PROVIDED WITH A PERIOD OF FORTY-FIVE (45) DAYS IN WHICH TO CONSIDER THIS RELEASE AGREEMENT. THE FORTY-FIVE (45) DAY CONSIDERATION PERIOD EXPIRES ON ________________, 20__. 

 

FOR AN ADDITIONAL PERIOD OF SEVEN (7) DAYS FOLLOWING THE SIGNING OF THIS RELEASE AGREEMENT, THE EXECUTIVE MAY REVOKE THIS RELEASE AGREEMENT BY DELIVERY OF A WRITTEN NOTICE OF REVOCATION TO ______________________________________________________, ON OR BEFORE, 5:00 P.M. PACIFIC TIME OF THE SEVENTH DAY, OR BY MAILING (CERTIFIED MAIL SUGGESTED) A WRITTEN NOTICE OF REVOCATION TO _________________, WHICH MUST BE POSTMARKED NO LATER THAN THAT DATE. THIS RELEASE

AGREEMENT SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL SUCH SEVEN (7) DAY PERIOD HAS EXPIRED. IF THE EXECUTIVE FAILS TO SIGN THIS RELEASE AGREEMENT WHEN SCHEDULED, OR IF THE EXECUTIVE REVOKES THIS RELEASE AGREEMENT, IT SHALL NOT BE EFFECTIVE AND ENFORCEABLE AND THE EXECUTIVE WILL NOT RECEIVE ANY PAYMENTS OR BENEFITS DESCRIBED IN THIS RELEASE AGREEMENT, AND MUST RETURN ALL CONSIDERATIONS WHICH MAY HAVE BEEN PAID UNDER THIS RELEASE AGREEMENT WHICH WERE CONDITIONED UPON THE EXECUTION AND EFFECTIVENESS OF THIS RELEASE AGREEMENT.

THE EXECUTIVE ACKNOWLEDGES THAT THE EXECUTIVE HAS HAD THE FORTY-FIVE (45) DAY TIME PERIOD REFERENCED ABOVE TO REVIEW THIS RELEASE AGREEMENT AND HAS CAREFULLY READ AND UNDERSTANDS ITS CONTENTS. THE EXECUTIVE HAS HAD AN OPPORTUNITY DURING THAT FORTY-FIVE (45) DAY PERIOD TO CONSULT WITH AN ATTORNEY REGARDING ITS TERMS. THE EXECUTIVE ACKNOWLEDGES VOLUNTARILY SIGNING THIS RELEASE AGREEMENT WITH THE FULL KNOWLEDGE OF ITS TERMS.

 

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IN WITNESS WHEREOF, the parties have executed this Release Agreement on ____________, 2020, in the City of                  , County of                           , State of California.

EXECUTIVE

 

____________________________________

Jennifer Johnson

 

 

SIERRA BANCORP

A California corporation

 

 

By:_________________________________

Name:

Title:

 

 

BANK OF THE SIERRA 

A California banking corporation

 

 

By:_________________________________

Name:

Title: