Exhibit 99.2
EMPLOYMENT AGREEMENT
This Employment Agreement (this “Agreement”) is entered into on March 15, 2019 to be effective as of March 25, 2019, by and between Sierra Bancorp, a California corporation (“
Bancorp
”), Bank of the Sierra, a California banking corporation (“
Bank
”), and Matthew Macia (“
Executive
”) on the following terms and conditions.
Executive shall be the Bank’s and Bancorp’s Executive Vice President and Chief Risk Officer (“
CRO
”). In that role, he 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 him, Executive shall be a member of the Executive Officers’ Committee and shall perform such duties as are customarily performed by the Chief Risk Officer of a bank holding company and commercial bank.
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2.
|
Devotion to Bank and Bancorp’s Business
|
E
x
ec
utive
sh
a
ll d
e
v
o
te substantially
his
f
ull busin
e
ss tim
e
,
a
bili
t
y
,
a
nd
a
tt
e
ntion to the
busin
e
ss of
the
B
a
nk and Bancorp
du
r
i
n
g
the
t
e
r
m
of
E
x
ec
utiv
e’
s
e
mpl
o
y
m
e
nt und
e
r
this Ag
ree
m
e
nt
a
nd sh
a
ll not du
r
ing
the
t
e
r
m of
his
e
m
pl
o
y
m
e
nt
e
n
g
a
g
e
in
a
n
y
oth
e
r
busin
e
ss
ac
tiviti
e
s, duti
e
s, or
pu
r
suits wh
a
tso
e
v
er
, or
di
r
ec
tl
y
or
indi
r
e
c
t
l
y
re
nd
e
r
a
n
y
s
e
r
vi
ce
s of
a busin
e
ss,
c
omm
erc
i
a
l, or
p
r
o
fe
ssion
a
l n
a
tu
r
e
to
a
n
y
oth
e
r
p
er
son or
or
g
a
ni
z
a
tion which is competitive with the Bank or Bancorp, wh
e
th
e
r
f
o
r
c
omp
e
ns
a
tion or
oth
er
w
i
s
e
, without the
p
r
ior
w
r
itt
e
n
c
ons
e
nt of
the CEO or
the
B
o
a
r
d
of
Di
rec
to
r
s
o
f
the Bank or Bancorp, as applicable
. How
e
v
e
r
, the
e
x
p
e
nditu
r
e
of
r
e
a
son
a
ble
a
mounts of
time
f
or
e
du
c
a
tion
a
l,
c
h
ar
it
a
bl
e
, or p
r
o
fe
ssion
a
l
a
c
tiviti
e
s sh
a
ll not be
d
ee
m
e
d
a
b
r
e
a
c
h of
this A
g
r
ee
m
e
nt if
t
h
ose
ac
tiviti
e
s do not m
a
t
er
i
a
l
l
y
int
e
rf
e
r
e
with
the
s
er
vi
ce
s
re
qui
re
d
o
f
E
x
ec
utive
und
e
r
this Ag
ree
m
e
nt.
Nothing in this A
g
r
e
e
m
e
nt sh
a
ll be
int
er
p
re
t
e
d to p
r
ohibit E
x
ec
utive
fr
om m
a
ki
n
g
p
a
ssive
p
er
son
a
l inv
e
stm
e
nts. How
e
v
er
, E
x
ec
utive
sh
a
ll not di
rec
t
l
y
o
r
indi
rec
t
l
y
a
c
qui
r
e
, hold, or
re
t
a
in
a
n
y int
ere
st in
a
n
y
busin
e
ss
c
omp
e
ting
with or
simil
a
r
in n
a
tu
r
e
to the
busin
e
ss
of
the
B
a
nk or Bancorp, as applicable,
e
x
ce
pt p
a
ssive
sh
are
hol
d
e
r
inv
e
stm
e
nts in oth
e
r
f
i
n
a
n
c
i
a
l institutions
a
nd
t
h
e
ir
re
sp
e
c
tive
aff
ili
a
t
e
s whi
c
h do not
e
x
cee
d
two
p
e
r
ce
nt
(2%
)
of
the
outst
a
nding
voting
s
ec
u
r
iti
e
s in the
a
gg
r
e
g
a
t
e
of
a
n
y
si
n
g
le
f
i
n
a
n
c
i
a
l institution
a
nd its
aff
ili
a
t
e
s on a
c
onsolid
a
t
e
d b
a
sis.
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3.
|
Noncompetition, Non-solicitation and Nondisclosure by Executive
|
(a)
E
x
ec
utive
sh
a
ll not, du
r
ing
the
t
e
r
m of
E
x
ec
u
tiv
e’
s
e
mpl
o
y
m
e
nt un
d
er
this A
g
r
e
e
m
e
nt, di
r
e
c
t
l
y
or
indi
rec
t
l
y
,
e
ith
e
r
a
s
a
n
e
mpl
o
y
e
e
,
e
mpl
o
y
er
,
c
o
n
sult
a
nt,
a
g
e
nt, p
r
in
c
ip
a
l, sto
c
khold
e
r
(
e
x
ce
pt
a
s p
er
mitt
e
d in
p
a
r
a
g
ra
ph 2
of
this
A
g
r
e
e
m
e
nt
)
, o
ff
i
c
er
, di
rec
to
r
, or
in
a
n
y
ot
h
e
r
i
ndividu
a
l or
re
p
re
s
e
nt
a
t
i
ve
ca
p
ac
i
t
y
,
e
n
g
a
ge
or
p
a
r
ti
c
ip
a
te
in
a
n
y
c
omp
e
titive
b
a
nking
o
r
f
i
n
a
n
c
i
a
l s
er
v
i
ce
s busin
e
ss
without the
p
r
ior
w
r
itt
e
n
c
ons
e
nt of
the
B
o
ar
d of
Di
rec
to
r
s
o
f
the
B
a
nk or Bancorp.
(b)
F
ollowing
t
e
r
min
a
tion of
this A
g
r
e
e
m
e
nt
a
nd E
x
ec
utiv
e’
s
e
mpl
o
y
m
e
nt h
ere
und
e
r
a
nd
f
o
r
a
p
er
i
o
d of
tw
e
lve
(
1
2
)
months th
ere
a
f
t
er
, E
x
ec
utive
sh
a
ll not use
a
n
y
c
on
f
id
e
nti
a
l, t
ra
de
s
ec
r
e
t,
or
p
r
op
r
i
e
t
a
r
y
in
f
o
r
m
a
t
i
on of
the
B
a
nk or Bancorp,
or
their respective
a
f
f
ili
a
t
e
s
a
nd subsidi
ar
i
e
s, in
c
luding
i
n
f
o
r
m
a
tion d
e
s
cr
i
b
e
d in
p
ar
a
g
r
a
ph 6
b
e
low, to soli
c
it,
e
n
c
ou
r
a
ge
or
a
ssist, di
rec
t
l
y
, indi
r
e
c
t
l
y
or
in
a
n
y
m
a
nn
e
r
wh
a
ts
o
e
v
er
,
(
i)
a
n
y
e
mpl
o
y
e
e
s
o
f
the
B
a
nk or Bancorp
and
their respective
aff
ili
a
t
e
s
a
nd
subsidi
ar
i
e
s
to
r
e
si
g
n
o
r
t
o
a
pp
l
y
f
or
or
ac
c
e
pt
e
m
pl
o
y
m
e
nt with
a
n
y oth
e
r
c
omp
e
titive
b
a
nki
n
g
or
f
in
a
n
c
i
a
l s
e
r
vi
ce
s b
u
sin
e
ss within the
c
ounti
e
s in
C
a
li
f
o
r
nia
in whi
c
h the
B
a
nk h
a
s lo
c
a
t
e
d its h
ea
dqu
ar
t
er
s or
b
r
a
n
c
h o
ff
i
c
e
s; or
(
ii)
a
n
y
c
u
stom
er
, p
er
son or
e
nti
t
y
th
a
t h
a
s
or has had
a
busi
n
e
ss
re
l
a
tionship with the
B
a
n
k or Bancorp du
r
ing
t
h
e
tw
e
lve
(
1
2)
month p
er
iod p
r
ior to E
x
ec
utiv
e’
s t
er
min
a
tion of
e
mpl
o
y
m
e
nt wi
t
h the
B
a
nk
or Bancorp
,
to t
er
min
a
te
or reduce
su
c
h busin
e
ss
re
l
a
tionship
a
nd
e
n
g
a
ge
in a
busin
e
ss
re
l
a
tionship with
a
n
y
ot
h
e
r
c
omp
e
titive
b
a
nki
n
g
o
r
f
in
a
n
c
i
a
l s
e
r
vi
ce
s busi
n
e
ss within the
c
ounti
e
s in
C
a
li
f
o
r
nia
in whi
c
h the
B
a
nk or Bancorp
h
a
s lo
ca
t
e
d its h
ea
dqu
ar
t
e
r
s or
b
ra
n
c
h o
f
f
i
ce
s.
Employee’s employment under this Agreement shall commence as of March 25, 2019 (the “
Effective Date
”) and shall continue thereafter until December 31, 2021 (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.
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|
5.
|
I
n
d
e
mni
f
i
ca
tion
|
To the
e
x
t
e
nt p
er
mitt
e
d
b
y
l
a
w
a
nd
a
ppli
c
a
ble
r
e
g
ul
a
tions, the
B
a
nk or Bancorp sh
a
ll ind
e
mni
f
y
E
x
ec
utive
if
he
w
a
s or
is
a
p
ar
t
y
or
is th
r
e
a
t
e
n
e
d to
be
m
a
de
a
p
ar
t
y
in
a
n
y
a
c
tion b
r
ou
g
ht
b
y
a thi
r
d p
ar
t
y
a
g
a
inst E
x
ec
utive
(
w
h
e
th
e
r
or
not
t
he
B
a
nk or Bancorp is join
e
d
a
s a
p
ar
t
y
d
efe
n
d
a
nt)
a
g
a
inst
e
x
p
e
ns
e
s, jud
g
m
e
nts,
f
in
e
s, s
e
ttl
e
m
e
nts
a
nd oth
e
r
a
mounts
ac
tu
a
l
l
y
a
nd
rea
so
n
a
b
l
y in
c
u
rre
d in
c
on
n
ec
tion
w
ith s
a
id
ac
tion if
E
x
ec
utive
ac
t
e
d in
g
ood
fa
ith
a
nd in a
m
a
nn
e
r
E
x
ec
utive
rea
son
a
b
l
y
b
e
l
i
e
v
e
d to be
in the
b
e
st int
ere
sts of
the
B
a
nk or Bancorp
(a
nd with
re
sp
e
c
t to a
cr
imin
a
l p
r
o
c
ee
di
n
g if
E
x
ec
utive
h
a
d no
r
ea
son
a
ble
ca
use
to
b
e
li
e
v
e
his
c
ondu
c
t w
as
unl
a
w
f
ul
)
, p
r
ovid
e
d th
a
t
t
he
a
ll
e
g
e
d
c
ondu
c
t of
E
x
ec
utive
ar
ose
out of
a
nd w
a
s within the
c
ou
r
se
a
nd
s
c
ope
of
his
e
mpl
o
y
m
e
nt
a
s
a
n
o
ff
i
c
e
r
or
E
x
ec
utive
of
the
B
a
nk or Bancorp.
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|
6.
|
Disclosure of Information
|
E
x
ec
utive
sh
a
ll not,
e
ith
e
r
b
ef
o
r
e
or
af
t
e
r t
er
min
a
tion of
E
x
ec
utiv
e’
s
e
mpl
o
y
m
e
nt un
d
e
r
this Ag
ree
m
e
nt,
without the
p
r
ior
w
r
itt
e
n
c
ons
e
nt of
the
B
o
ar
d of
D
i
rec
to
r
s
of
the Bank
or Bancorp, or
e
x
ce
pt
a
s
re
q
ui
re
d
b
y
l
a
w to
c
omp
l
y
with l
e
g
a
l p
r
o
ce
ss in
c
ludin
g
, without limit
a
t
ion,
b
y
o
r
a
l or
w
r
itt
e
n t
e
s
timo
n
y
,
2
d
e
positions, int
err
og
a
to
r
i
e
s,
r
e
qu
e
sts
f
or
in
f
o
r
m
a
tion or
do
c
u
m
e
nts, subpo
e
n
a
,
c
ivil inv
e
sti
g
a
tive
d
e
m
a
nd
o
r
simil
a
r
p
r
o
c
e
ss, dis
c
lose to
a
n
y
o
n
e
a
n
y
f
in
a
n
c
i
a
l
i
n
f
o
r
m
a
tion, t
ra
de
o
r
busin
e
ss s
ec
r
e
ts,
c
ustom
e
r
lists,
c
omput
e
r
so
f
tw
a
r
e or
oth
e
r
in
f
o
r
m
a
tion
c
o
n
cer
ni
n
g
the
busin
e
ss or
o
p
era
tions of
the
B
a
nk or Bancorp,
a
nd th
e
ir
re
sp
ec
tive
aff
ili
a
t
e
s
a
nd
s
ubsidi
ar
i
e
s;
p
r
ovid
e
d
, th
a
t su
c
h in
f
o
r
m
a
tion sh
a
ll not in
c
lude in
f
o
r
m
a
tion
(
i)
in or
whi
c
h
e
nt
er
s the
public
dom
a
i
n
(
oth
e
r
th
a
n
b
y
b
r
eac
h
o
f
E
x
ec
utiv
e’
s obli
g
a
tions h
e
r
e
und
e
r
)
;
(
ii)
ac
qui
re
d
b
y
E
x
ec
utive
oth
e
r
th
a
n in
c
onn
e
c
tion with his
e
mpl
o
y
m
e
nt; or
(
iii)
th
a
t
is dis
c
los
e
d to E
x
ec
utive
b
y
a
thi
r
d p
ar
t
y
not known to Executive to be
o
bli
g
a
t
e
d to
the
B
a
nk or Bancorp, to k
e
e
p su
c
h in
f
o
r
m
a
tion
c
on
f
id
e
nti
a
l.
I
n t
h
e
e
v
e
nt E
x
ec
utive
is
re
qui
re
d
b
y
l
a
w to dis
c
lose
s
u
c
h in
f
o
r
m
a
tion d
e
s
cr
ib
e
d in
this
p
ar
a
g
ra
ph 6
, E
x
ec
utive
will p
r
ovide
the
B
a
nk and Bancorp,
a
nd their
c
ouns
e
l with imm
e
di
a
te
noti
c
e
of
su
c
h
re
qu
e
s
t so th
a
t th
e
y
m
a
y
c
onsi
d
e
r
s
ee
ki
n
g a p
r
ot
ec
tive
o
r
d
er, provided that Executive shall not be required to incur any expense in connection therewith
.
I
f
, in t
h
e
a
bs
e
n
c
e
of
a
p
r
ot
ec
tive
o
r
d
e
r
or
the
r
e
ce
ipt of
a
w
a
iv
e
r
h
e
re
un
d
er
, E
x
ec
utive
is non
e
th
e
l
e
ss,
c
omp
e
ll
e
d to dis
c
lose
a
n
y
o
f
su
c
h in
f
o
r
m
a
tion to
a
n
y
t
r
ibu
n
a
l or
a
n
y
ot
h
e
r
p
ar
t
y
or
e
lse
st
a
nd li
a
b
le
f
or
c
ont
e
mpt or su
ffe
r
oth
e
r
m
a
t
er
i
a
l
ce
n
s
u
r
e
or
m
a
t
e
r
i
a
l p
e
n
a
l
t
y
,
t
h
e
n E
x
ec
utive
m
a
y
dis
c
lose
(
on
a
n
“as
n
ee
d
e
d
”
b
a
sis on
l
y
)
su
c
h
in
f
o
r
m
a
tion to su
c
h t
r
ibun
a
l or
oth
e
r
p
a
r
t
y
without li
a
bili
t
y
h
ere
un
d
er
. Notwithst
a
nding
the
f
o
r
e
g
oi
n
g
, E
x
ec
utive
m
a
y
dis
c
lose
su
c
h in
f
o
r
m
a
ti
o
n
c
on
cer
ni
n
g
the busin
e
ss or
op
era
tions of
the
B
a
nk
or Bancorp,
a
nd their
re
sp
ec
tive
aff
ili
a
t
e
s
a
n
d subsidi
ar
i
e
s
a
s m
a
y be
re
qui
r
e
d
b
y
the
Federal Deposit Insurance Corporat
ion
(“
FDIC
”), California Department of Business Oversight (“
DBO
”) or the Federal Reserve Bank of San Francisco or Board of Governor
s of the Federal Reserve System (collectively, the “
FRB
”)
or
oth
e
r
r
e
g
ul
a
t
or
y
a
g
e
n
c
y
h
a
vi
n
g
ju
r
isdi
c
tion ov
e
r
the op
era
tions of
the
B
a
nk or Bancorp, in
c
onn
e
c
tion with
a
n
e
x
a
min
a
tion of
the
B
a
nk or Bancorp,
o
r
oth
e
r p
r
o
cee
di
n
g
c
ondu
c
t
e
d
b
y
su
c
h
r
e
g
ul
a
to
r
y
a
g
e
n
c
y
.
|
|
7.
|
W
r
itt
e
n,
P
r
int
e
d or
El
ec
t
r
onic
and Other
M
a
t
er
i
a
l
|
All w
r
itt
e
n, p
r
int
e
d or
e
l
e
c
t
r
onic m
a
t
er
i
a
l, not
e
books
a
nd
r
ec
o
r
ds in
c
ludi
n
g
, without limit
a
tion,
c
omput
e
r
files us
e
d
b
y
E
x
ec
utive
in p
erf
o
r
mi
n
g duti
e
s
f
or
the
Bank or Bancorp
, oth
e
r
th
a
n E
x
ec
u
tiv
e
'
s p
e
r
son
a
l
a
dd
r
e
ss lists, t
e
l
e
phone
lists, not
e
s
a
nd di
ar
i
e
s,
a
r
e
a
nd s
h
a
ll
re
m
a
in the
sole
p
r
op
e
r
ty
of
the
Bank or Bancorp
. Upon t
er
min
a
tion
of
e
mpl
o
y
m
e
nt, E
x
ec
utive
sh
a
ll p
r
ompt
l
y
re
tu
r
n
a
ll su
c
h m
a
t
er
i
a
l
(
in
c
luding
a
ll
c
op
i
e
s,
e
x
t
rac
ts
a
nd summ
ar
i
e
s th
e
r
e
o
f
)
and any other property of Bank or Bancorp in the possession or under the control of Executive
to the
Bank or Bancorp
.
(a)
Salary
The Bank or Bancorp shall pay Executive an annual minimum base salary (“
Base Salary
”) from the Effective Date of three hundred thirty thousand dollars ($330,000.00), less appropriate withholding, taxes and similar deductions, payable in equal installments on those days when the Bank normally pays its employees.
3
On or before December 31, 2019, 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 discreti
on of the Boards of Directors of
the Bank and Bancorp.
(b)
Bonus
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 Boards of Directors of Bank and Bancorp.
(c)
Business Expenses
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 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.
(d)
Benefits
During the term of his employment under this Agreement, Executive shall be entitled to receive the following benefits:
|
|
(i)
|
Executive shall be eligible to participate in all Executive benefit plans maintained by the Bank or Bancorp, including (without limitation) any disability, health, vision, dental, accident and other insurance programs, 401(k) Plan, paid vacations, and similar plans or programs, subject to terms and conditions of each plan currently in effect. The Bank and Bancorp will also pay fifty percent (50%) of Executive’s dependent group health, vision and dental plan premiums
|
|
|
(ii)
|
The Bank will pay to Executive an automobile allowance as determined by the Board of Directors or the Compensation
|
4
|
|
|
Committee. Executive will pay all maintenance and repair costs during the term of Executive’s employment under this Agreement. Executive shall acquire or otherwise make available for his business and personal use an automobile suitable to his position and maintain it in good condition a
nd repair. Executive shall (i)
obtain and maintain public liability insurance and property damage insurance policies with insurer(s) acceptable to the Bank and with such coverages in such amounts as may be reasonably acceptable to the Bank from time to time, (ii) provide copies of such policies, endorsements or other evidence of insurance acceptable to the Bank and (iii) such insurance policies shall include notice to the Bank in the event the coverages approved by the Bank are changed in any material respect or cancelled. Notwithstanding the foregoing, the Bank may, in its discretion, elect to (i) require that the policies name the Bank and Bancorp as an additional insured, subject to the requirement that Executive’s allowance described above shall be increased in an amount equal to the additional premium expense, if any, resulting from the Bank and Bancorp being named as an additional insured or (ii) provide and pay for such insurance policies in lieu of Executive maintaining such policies.
|
|
|
(iii)
|
The Board of Directors agrees to grant to Executive, as soon as practicable following the Effective Date, a stock option to purchase up to 25,000 shares of Bancorp’s authorized but unissued Common Stock, at the fair market value of the stock on the date of grant, on such further terms and conditions as shall be contained in a Stock Option Agreement to be entered into by and between Bancorp and Executive pursuant to the terms of Bancorp’s 2017 Stock Incentive Plan. Bancorp agrees that such option will be an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, to the maximum extent allowed by law. Such option shall be for a term of ten (10) years and shall vest in equal installments of 20% over the first five years of the option term.
|
|
|
(iv)
|
The Bank agrees to reimburse Executive for actual expenses incurred to relocate, including up to 90 days temporary housing.
|
|
|
9.
|
Termination of Agreement and Employment
|
(a)
Autom
a
tic
T
er
min
a
tion
This A
g
r
ee
m
e
nt sh
a
ll t
e
r
min
a
te
a
utom
a
ti
ca
l
l
y without
f
u
r
th
e
r
ac
t
o
f
the
p
ar
ti
e
s
a
nd imm
e
di
a
t
e
l
y
upon the
o
cc
u
r
re
n
c
e
of
a
n
y
one
o
f
the
f
ollowing
e
v
e
nts, subj
ec
t
to
e
ith
e
r
p
ar
t
y
's
r
i
g
ht, w
i
thout
a
n
y
obl
i
g
a
tion wh
a
tso
e
v
er
, to w
a
ive
a
n
e
v
e
nt
r
e
a
son
a
b
l
y
sus
ce
pt
i
ble
of
w
a
iv
e
r
,
a
nd the
ob
l
i
g
a
tion of
the
B
a
nk or Bancorp to p
a
y
the
a
mounts whi
c
h would oth
er
wise
be
p
a
y
a
ble
to E
x
ec
utive
und
e
r
this Ag
ree
m
e
nt th
r
o
u
g
h the
e
nd of
the
month in whi
c
h the
e
v
e
nt o
c
c
u
r
s. On
l
y
in the
e
v
e
nt of
5
t
er
min
a
tion b
a
s
e
d upon
a Change in Control of Bancorp as provided in
paragraph
9 (a)
(
viii
)
,
sh
a
ll E
x
ec
utive
be
e
ntitl
e
d to
rece
ive
s
e
v
e
r
a
n
c
e
b
e
n
e
f
its b
a
s
e
d upon
a
utom
a
tic
t
e
r
min
a
tion pu
r
su
a
nt to
p
ar
a
g
r
a
ph 9
(
d
)
(i)
o
f
this Ag
ree
m
e
nt:
|
|
(
i)
|
The death of Executive.
|
|
|
|
(ii)
|
The
will
f
ul, int
e
ntion
a
l
a
nd m
a
t
er
i
a
l b
r
e
ac
h or
t
h
e
h
a
bitu
a
l
a
nd
c
ontinu
e
d n
e
g
l
ec
t
b
y
E
x
ec
utive
of
his
e
mpl
o
y
m
e
nt
re
sponsibiliti
e
s
a
nd duti
e
s.
|
|
|
|
(
iii)
|
The continuous mental
o
r p
h
y
si
c
al inca
p
aci
t
y
of E
x
ecutive.
|
|
|
|
(
iv)
|
E
x
ecutive
'
s willful
a
nd intentional violation
o
f a
n
y
state or fede
r
al banki
n
g
or s
e
cur
i
ties laws, or of the
b
y
la
w
s, rules, policies or resolutions of the
B
a
n
k or Bancorp, or the
rules or
r
e
g
ulations of the F
D
I
C
, DBO,
FRB
or other r
e
g
u
l
ato
r
y
a
ge
n
c
y
o
r
g
ov
e
rnmental authori
t
y
h
aving
jurisdiction over t
h
e
B
ank or Bancorp, which has a mat
e
rial ad
v
erse
e
ff
e
ct upon the
B
ank or Bancorp.
|
|
|
|
(
v)
|
The written det
e
rmination
b
y
a sta
t
e or
f
ede
r
al r
e
gulato
r
y
a
g
en
c
y or
g
o
v
ernmental
authority
havi
n
g
jurisdiction ov
e
r the
B
ank or Bancorp that E
x
ecutive is not suitable to act in the cap
a
ci
t
y
f
o
r which he is empl
o
y
e
d
b
y
the
B
ank or Bancorp.
|
|
|
|
(
vi)
|
E
x
ecutive’s (A) convict
i
on or plea of
nolo contendere
to a
n
y
f
elo
n
y
or a crime involving
moral turpitude, or (B) E
x
ecutive’s wil
l
ful and intentional commission
o
f a f
r
audulent or dishone
s
t act.
|
|
|
|
(
vii)
|
E
x
ecutive’s non-in
s
urabili
t
y
for s
u
re
t
y
bond
cover
a
ge as determined in the sole d
i
scretion of the
B
ank’s in
s
urer at
a
n
y
time during
the t
e
rm of E
x
ec
u
tive’s empl
o
y
ment un
d
er
this A
g
r
e
ement.
|
|
|
|
(
viii)
|
A Change in Control of Bancorp.
|
|
(b)
T
er
min
a
tion
b
y
B
a
nk
The
B
a
nk and Bancorp m
a
y
,
a
t their
e
l
ec
tion
a
nd in their sole
dis
cre
tion, t
er
min
a
te
E
x
ec
utiv
e’
s
e
mpl
o
y
m
e
nt
a
nd this
A
g
r
e
e
m
e
nt
a
t
a
n
y
time
a
nd
f
or
a
n
y
r
ea
son or
f
or
no
r
ea
son, upon thi
r
t
y
(
30)
d
a
y
s
p
r
ior
w
r
itt
e
n noti
c
e
t
o E
x
ec
utiv
e
, without p
re
judi
c
e
to
a
n
y
oth
e
r
re
m
e
d
y
to wh
i
c
h the
B
a
nk or Bancorp may be entitl
e
d
e
ith
e
r
a
t l
a
w, in
e
qui
t
y
or
und
e
r
this A
g
r
ee
m
e
nt. Unl
e
ss oth
e
r
w
ise
a
g
r
e
e
d in w
r
iting
by
B
a
nk and Bancorp,
a
t the effective
time of
su
c
h noti
c
e
E
x
ec
utive
sh
a
ll continue p
erf
o
r
mi
n
g
a
nd dis
c
h
a
r
g
i
ng
the
duti
e
s
a
nd
re
spon
s
ibiliti
e
s of
his posi
t
ions
6
for such thirty (30) day period
.
All
r
i
g
hts
a
n
d obli
g
a
tions
a
c
cr
ui
n
g to E
x
ec
utive
und
e
r
this A
g
r
ee
m
e
nt sh
a
ll
c
ea
se
a
t su
c
h t
er
min
a
tion,
e
x
c
e
pt th
a
t su
ch
t
er
min
a
tion sh
a
ll not p
re
judi
c
e
E
x
ec
utiv
e’
s
r
i
ghts
re
g
ar
di
n
g
e
mpl
o
y
m
e
n
t b
e
n
ef
its whi
c
h sh
a
ll h
a
ve
a
ccr
u
e
d p
r
ior
to su
c
h t
er
min
a
tion, in
c
luding
t
he
r
i
g
ht to
r
e
c
e
ive
the
s
e
v
era
n
c
e
b
e
n
ef
its sp
ec
i
f
i
e
d in
p
a
r
a
g
r
a
ph
9
(d
)
(ii)
b
e
low
.
(c)
T
er
min
a
tion
b
y
E
x
ec
uti
v
e
E
x
ec
utive
m
a
y
t
e
r
min
a
te
his
e
mpl
o
y
m
e
nt with the Bank and Bancorp
a
nd this A
g
r
e
e
m
e
nt
at a
n
y
time
a
nd
f
or
a
n
y
r
e
a
s
on or
no
rea
son, upon nine
t
y
(9
0
)
d
a
y
s p
r
ior
w
r
itt
e
n noti
c
e
to the
B
a
nk and Bancorp. Unl
e
ss oth
e
r
w
i
se
a
g
r
e
e
d in w
r
iting
by
the
B
a
nk and Bancorp,
a
t the effective time
of
su
c
h noti
c
e
E
x
ec
utive
sh
a
ll continue
p
e
r
f
o
r
mi
n
g
a
nd dis
c
h
a
r
g
i
n
g
the duti
e
s
a
nd
re
sponsibiliti
e
s of
his positions
for such ninety (90) day period
.
All
r
i
g
hts
a
nd obl
i
g
a
tio
n
s
accr
ui
n
g
to E
x
ec
ut
i
ve
und
e
r
this Ag
ree
m
e
nt s
h
a
ll
cea
s
e
a
t
su
c
h t
er
min
a
tion,
e
x
ce
pt th
a
t su
c
h t
er
min
a
tion sh
a
ll not p
re
judi
c
e
E
x
ec
utiv
e
'
s
r
i
g
hts
r
e
g
ar
d
i
ng
e
mpl
o
y
m
e
nt b
e
n
ef
its, including vested stock options or supplemental retirement or salary continuation plan benefits,
whi
c
h sh
a
ll h
a
ve
a
c
c
r
u
e
d
and vested
p
r
ior
to su
c
h t
er
min
a
tion.
(d)
S
e
v
era
n
c
e
B
e
n
e
f
its
(i)
Subj
ec
t to
p
ar
a
g
r
a
phs 11
a
nd 23
of
this Ag
r
e
e
m
e
nt, in the
e
v
e
nt of
a
uto
m
a
tic
t
er
min
a
tion b
a
s
e
d u
p
on a Change in Control under
paragraph 9 (a) (viii)
, th
e
n E
x
ec
utive
sh
a
ll
rece
i
v
e
Change in Control b
e
n
ef
its
c
onsisting
of
(
A)
a
ca
sh p
a
y
m
e
nt in
a
n
a
m
ount
e
qu
a
l to 150% of E
x
ec
utiv
e
'
s
then
current
B
a
se
S
a
l
a
r
y
du
r
i
n
g the
y
e
a
r
the
t
er
min
a
tion o
cc
u
r
s
,
l
e
ss
a
ppli
ca
ble
withholding
d
e
ductions
(
in
a
ddition to accrued B
a
se
Sa
l
a
r
y
, in
ce
ntive
c
omp
e
ns
a
tion, or
oth
e
r
p
a
y
m
e
nts, if
a
n
y
, due
E
x
ec
utiv
e)
, p
a
y
a
ble
in l
u
mp sum p
r
ompt
l
y
af
t
e
r six
t
y
(
60)
d
a
y
s
f
ollowing su
c
h t
er
min
a
tion, but in no
e
v
e
nt l
a
t
e
r
th
a
n
M
ar
ch 15
f
ollowing
the
e
nd of
the
ca
l
e
n
d
a
r
y
e
a
r
th
a
t
i
n
c
lud
e
s su
c
h t
er
min
a
tio
n;
and
(
B)
c
ontinu
a
tion of
g
r
oup health, vision and dental insu
ra
n
c
e
c
ove
r
a
g
e
s s
p
ec
i
f
i
e
d in
p
ar
a
g
ra
ph 8
(d
) (i)
of
this A
g
r
e
e
m
e
nt
f
or E
x
ec
utive and
fifty percent (50%) of the costs of Executive’s dependents
pu
r
su
a
nt to The Consolid
a
t
e
d Omnibus
B
u
d
g
e
t R
ec
o
n
c
ili
a
tion A
c
t of
1985
(“
C
O
B
R
A
”
)
, or
und
e
r
a
pplic
a
ble
C
a
l
i
f
o
r
nia
l
a
w pu
r
s
u
a
nt to A
s
s
e
mb
l
y
B
ill No. 1401
(“
C
a
l
-
C
O
B
R
A
”)
, with
o
ne
hund
re
d pe
r
c
e
nt
(
10
0
%
)
of
p
r
e
miums
f
or
the
insu
ra
n
c
e
c
ov
e
r
a
g
e
s pa
y
able
b
y
the
B
a
nk or Bancorp month
l
y
to E
x
ec
u
tive
f
or
a
pe
r
iod of
twelve
(
12)
months
fr
om the
d
a
te
of
t
er
min
a
t
ion. Notwithst
a
nding
the
f
o
r
e
g
oi
n
g
or
a
n
y
oth
e
r
p
r
ovision in this Ag
ree
m
e
nt to the
c
ont
ra
r
y
,
the
obl
i
g
a
tion of
the B
a
nk or Bancorp to
p
a
y
the
p
r
e
mium
c
osts
re
l
a
t
e
d to the
CO
B
RA or
C
a
l
-
C
O
B
RA
c
ontinu
a
tion of
i
n
su
ra
n
c
e
c
ov
e
r
a
g
e
s sh
a
ll
t
er
min
a
te
a
t the
ear
lier of
the
e
x
pi
ra
tion of
twelve
(12
)
months
fr
om the
d
a
te
of
te
r
min
a
tion or
the
d
a
te
of
c
omm
e
n
ce
m
e
nt of
c
om
p
ara
ble
insu
r
a
n
c
e
c
ove
r
ag
e
s
f
or
E
x
ec
utive
b
y
anoth
e
r
e
mpl
o
y
e
r
. A
f
t
e
r
su
c
h
e
x
pi
ra
tion d
a
t
e
, E
x
ec
utive
sh
a
ll have
su
c
h
r
i
g
hts to
c
ontinue
to p
ar
ti
c
ip
a
te
un
d
e
r the
B
a
n
k
’
s
g
r
o
up h
ea
lth b
e
n
ef
its pl
a
n
a
t E
x
ec
utiv
e’
s
e
x
p
e
nse
a
s may
b
e
a
v
a
il
a
ble und
e
r
CO
B
RA
o
r
C
a
l CO
B
RA. E
x
ec
utive a
g
r
ee
s to noti
f
y
the
B
a
nk
a
s soon
a
s p
rac
ti
ca
b
l
e
, but not l
e
ss th
a
n t
e
n
(
10)
busin
e
ss
d
a
y
s in
a
dv
a
n
c
e
o
f
the
c
o
m
m
e
n
ce
m
e
nt of
s
u
c
h
c
omp
ara
ble
insu
r
a
nce
c
o
v
er
a
g
e
s
with
a
noth
e
r
e
m
pl
o
y
e
r
7
a
nd to
re
p
a
y
to the
B
a
nk
a
n
y
a
mounts p
a
id
b
y
the
B
a
n
k to or
f
o
r
the
b
e
n
ef
it of
E
x
ec
utive
th
a
t ov
er
l
a
p the
c
ov
er
a
g
e
s p
r
ovid
e
d
b
y
t
h
e
oth
e
r
e
mpl
o
y
e
r
.
(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; th
e
n E
x
ec
utive
sh
a
ll
rece
i
v
e
s
e
v
e
ra
n
c
e b
e
n
ef
its
c
onsisting
of
(
A)
a
ca
sh p
a
y
m
e
nt in
a
n
a
m
ount
e
qu
a
l to 100% of E
x
ec
utiv
e
'
s
then
current
B
a
se
S
a
l
a
r
y
du
r
i
n
g the
y
e
a
r
the
t
er
min
a
tion o
cc
u
r
s
,
l
e
ss
a
ppli
ca
ble
withholding
d
e
du
c
tions
(
in
a
ddition to accrued B
a
se
Sa
l
a
r
y
, in
ce
ntive
c
omp
e
ns
a
tion, or
oth
e
r
p
a
y
m
e
nts, if
a
n
y
, due
E
x
ec
utiv
e)
, p
a
y
a
ble
in l
u
mp sum p
r
ompt
l
y
af
t
e
r six
t
y
(
60)
d
a
y
s
f
ollowing su
c
h t
er
min
a
tion
(
but in no
e
v
e
nt l
a
t
e
r
th
a
n
M
ar
c
h 15
f
ollowing
the
e
nd of
the
ca
l
e
n
d
a
r
y
e
a
r
th
a
t
i
n
c
lud
e
s su
c
h t
er
min
a
tio
n) calendar years preceding the termination
and
(
B)
c
ontinu
a
tion of
g
r
oup health, vision and dental insu
ra
n
c
e
c
ov
e
r
a
g
e
s s
p
ec
i
f
i
e
d in
p
ar
a
g
ra
ph 8
(d
) (i)
of
this A
g
r
e
e
m
e
nt
f
or E
x
ec
utive
and fifty percent (50%) of the costs of Executive’s dependents
pu
r
su
a
nt to The
C
onsolid
a
t
e
d Omnibus
B
u
d
g
e
t
R
ec
o
n
c
ili
a
tion A
c
t of
1985
(“
C
O
B
R
A
”
)
, or
und
e
r
a
ppli
c
a
ble
C
a
l
i
f
o
r
nia
l
a
w pu
r
s
u
a
nt to A
s
s
e
mb
l
y
B
ill No. 1401
(“
C
a
l
-
C
O
B
R
A
”)
, with
o
ne
hund
re
d p
e
r
c
e
nt
(
10
0
%
)
of
p
r
e
miums
f
or
the
insu
ra
n
c
e
c
ov
e
r
a
g
e
s p
a
y
a
ble
b
y
the
B
a
nk or Bancorp month
l
y
to E
x
ec
u
tive
f
or
a
p
e
r
iod of
twelve
(
12)
months
fr
om the
d
a
te
of
t
er
min
a
t
ion. Notwithst
a
nding
the
f
o
r
e
g
oi
n
g
or
a
n
y
oth
e
r
p
r
ovision in this Ag
ree
m
e
nt to the
c
ont
ra
r
y
,
the
obl
i
g
a
tion of
the
B
a
nk or Bancorp to
p
a
y
the
p
r
e
mium
c
osts
re
l
a
t
e
d to the
C
O
B
R
A or
C
a
l
-
C
O
B
R
A
c
ontinu
a
tion of
i
n
su
ra
n
c
e
c
ov
e
r
a
g
e
s sh
a
ll
t
er
min
a
te
a
t the
ear
li
e
r of
the
e
x
pi
ra
tion of
twelve
(12
)
months
fr
om the
d
a
te
of
t
e
r
min
a
tion or
the
d
a
te
of
c
omm
e
n
ce
m
e
nt of
c
om
p
ara
ble
insu
r
a
n
c
e
c
ov
e
r
a
g
e
s
f
or
E
x
ec
utive
b
y
a
noth
e
r
e
mpl
o
y
e
r
. A
f
t
e
r
su
c
h
e
x
pi
ra
tion d
a
t
e
, E
x
ec
utive
sh
a
ll h
a
ve
su
c
h
r
i
g
hts to
c
ontinue
to p
ar
ti
c
ip
a
te
un
d
e
r the
B
a
n
k
’
s
g
r
o
up h
ea
lth b
e
n
ef
its pl
a
n
a
t E
x
ec
utiv
e’
s
e
x
p
e
nse
a
s m
a
y
b
e
a
v
a
il
a
ble und
e
r
C
O
B
R
A
o
r
C
a
l
C
O
B
R
A. E
x
ec
utive
a
g
r
ee
s to noti
f
y
the
B
a
nk
a
s soon
a
s p
rac
ti
ca
b
l
e
, but not l
e
ss th
a
n t
e
n
(
10)
busin
e
ss
d
a
y
s in
a
dv
a
n
c
e
o
f
the
c
o
m
m
e
n
ce
m
e
nt of
s
u
c
h
c
omp
ara
ble
insu
r
a
n
c
e
c
o
v
er
a
g
e
s
with
a
noth
e
r
e
m
pl
o
y
e
r
a
nd to
re
p
a
y
to the
B
a
nk
a
n
y
a
mounts p
a
id
b
y
the
B
a
n
k to or
f
o
r
the
b
e
n
ef
it of
E
x
ec
utive
th
a
t ov
er
l
a
p the
c
ov
er
a
g
e
s p
r
ovid
e
d
b
y
t
h
e
oth
e
r
e
mpl
o
y
e
r
.
(iii)
E
x
ec
utive
ac
know
l
e
d
g
e
s
a
nd
a
g
r
ee
s th
a
t s
e
v
e
ra
n
c
e
b
e
n
e
f
its pu
r
su
a
nt to this
p
ar
a
g
r
a
ph 9
(
d)
ar
e
in l
i
e
u of
a
ll d
a
m
a
g
e
s, p
a
y
m
e
nts
a
nd li
a
biliti
e
s on
acc
ount of
the
ear
l
y t
er
min
a
tion of
E
x
ec
utiv
e’
s
e
mpl
o
y
m
e
nt un
d
e
r
this Ag
ree
m
e
nt. Any payment made under any
subparagraph
of
paragraph 9 (d)
shall preclude further payment under any other
subparagraph
of paragraph 9 (d).
(e)
C
h
a
n
g
e
in
C
ont
r
ol
As contemplated by paragraph
9 (a) (viii)
, E
x
e
c
utive
sh
a
ll be
e
ntitl
e
d to
rece
ive
severance in the
e
v
e
nt of
a
“
C
h
a
nge
in
C
ont
r
ol
” under
paragraph 9 (d) (1)
occurring while Executive is employed by the Bank or Bancorp. Such event shall automatically terminate employment under this Agreement.
8
(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 stoc
k 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 wh
ich 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.
9
(f)
R
e
l
ea
se
of
All
C
l
a
ims
Notwithst
a
nding
a
n
y
ot
h
e
r
p
r
ovision of
this Ag
ree
m
e
nt to the
c
ont
ra
r
y
,
the
B
a
nk
a
nd E
x
ec
utive
a
g
r
e
e
it sh
a
ll be
a
n
e
x
p
re
ss
c
ondition to E
x
ec
uti
v
e’
s
r
e
ce
ipt of
a
n
y
s
e
v
e
r
a
n
c
e
b
e
n
ef
its of any kind und
e
r
paragraph 9 (d)
, th
a
t E
x
ec
utive
e
x
ec
ute
a
f
ull
a
nd
c
ompl
e
te
r
e
l
ea
s
e
, s
u
bst
a
nti
a
l
l
y
in the
f
o
r
m
a
n
d
c
ont
e
nt
a
tt
ac
h
ed
h
ere
to
a
s
E
x
hibit A
, of
a
n
y
a
nd
a
ll
c
l
a
ims
a
g
a
inst
the
B
a
nk
and Bancorp
a
nd their
re
sp
e
c
tive
aff
ili
a
t
e
s, di
r
e
c
to
r
s, o
ff
i
c
er
s,
e
mpl
o
y
ee
s,
a
g
e
nts,
a
t
to
r
n
e
y
s, insu
r
er
s,
a
nd s
u
c
ce
sso
r
s in int
ere
st,
ar
ising
f
r
om or
in
a
n
y
w
a
y
r
e
l
a
t
e
d to E
x
ec
utiv
e
’
s
e
mpl
o
y
m
e
nt or
t
er
mi
n
a
tion of
E
x
ec
utiv
e’
s
e
mpl
o
y
m
e
nt
pu
r
su
a
nt to this A
g
r
ee
m
e
nt
a
nd E
x
ec
utive
sh
a
ll not
re
voke
su
c
h
re
l
ea
s
e
of
c
l
a
ims.
10.
[
RESERVED]
11.
S
ec
tion 409A
and 280G
L
imit
a
tions
(a)
G
e
n
e
r
a
l
It is the
int
e
ntion the
B
a
nk, Bancorp
a
nd E
x
ec
utive
th
a
t this Ag
ree
m
e
nt s
h
a
ll be
int
e
r
p
re
t
e
d
a
nd
a
dminist
ere
d
c
onsist
e
nt with
S
ec
tion 409A of
the
Int
e
r
n
a
l
R
e
v
e
nue
C
ode
of
1986,
a
s
a
m
e
nd
e
d
(
“
S
ec
tion 40
9
A
”
)
a
nd th
a
t the
s
e
v
e
r
a
n
c
e
and other
b
e
n
ef
its p
a
y
a
ble
to E
x
ec
utive
und
e
r
this Ag
ree
m
e
nt
e
ith
e
r
be
e
x
e
mpt
fr
om, or
oth
er
wise
c
omp
l
y
with,
S
ec
tion 409A. Notwithst
a
nding
a
n
y
ot
h
e
r
t
er
m, p
r
ovisio
n
, or
oth
e
r
m
a
tt
e
r
s
e
t
f
o
r
th
e
ls
e
wh
e
r
e
in this Ag
ree
m
e
nt, to the
e
x
t
e
nt th
a
t
a
n
y
p
r
ovision of
this Ag
ree
m
e
nt m
a
y
b
e
d
e
t
e
r
min
e
d
b
y
the
B
a
nk, with the
a
dv
i
c
e
of
its ind
e
p
e
nd
e
nt
acc
ounti
n
g
f
i
r
m or
oth
e
r
t
a
x
a
dviso
r
s, to be
subj
ec
t to
a
nd not in
c
ompli
a
n
c
e
w
i
th
S
ec
tion 409A, su
c
h p
r
ovisions sh
a
ll be
int
er
p
r
e
t
e
d in the
m
a
nn
e
r
re
qui
re
d to
c
omp
l
y
with
S
ec
tion 409A. The
B
a
nk, Bancorp
a
nd
Ex
ec
utive
f
u
r
th
e
r
a
c
know
l
e
dge
a
nd
a
g
r
e
e
th
a
t i
f
, in
the jud
g
m
e
nt of
the
B
a
nk and Bancorp, with the
a
dv
i
c
e
of
its ind
e
p
e
nd
e
nt
acc
ounti
n
g
f
i
r
m or
oth
e
r
t
a
x
a
dviso
r
s,
a
m
e
ndm
e
nt of
t
his A
g
r
ee
m
e
nt is n
e
c
e
ss
a
r
y
to
c
l
ar
i
f
y
a
n
y
o
f
the
t
e
r
ms of
this Ag
ree
m
e
nt,
o
r
to
c
omp
l
y
with
S
ec
tion 409A, the
B
a
nk, Bancorp
a
nd E
x
e
c
utive
will n
e
g
oti
a
te
rea
son
a
b
l
y
a
nd in
g
ood
f
a
ith to
a
m
e
nd the
t
er
ms
o
f
this A
g
r
ee
m
e
nt to the
e
x
t
e
nt n
ece
ss
a
r
y
so th
a
t it
c
ompli
e
s
(
with the
most limit
e
d possible
ec
onomic
eff
e
c
t on the
B
a
nk
a
nd E
x
ec
utiv
e
)
with
S
ec
tion 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, stockholders, affiliates, managers, members, partners, agents, attorneys or representatives for any such taxes, penalties, interest or fees.]
(b)
Pa
y
m
e
nts to
S
p
ec
i
f
i
e
d
E
mpl
o
y
ee
s
(i)
Notwithst
a
nding
a
n
y
p
r
ovision of
this Ag
ree
m
e
nt to the
c
ont
ra
r
y
, if
Ex
ec
utive
is
c
onsid
ere
d a
“
S
p
ec
i
f
i
e
d Emplo
y
e
e
”
(
a
s d
ef
in
ed
b
e
low
)
,
a
n
y
dist
r
ibutions h
ere
und
e
r
whi
c
h would oth
er
wise
be
m
a
de
to Ex
ec
utive
pu
r
su
a
nt to the
t
er
ms of
this Ag
ree
m
e
nt sh
a
ll not be
m
a
de
during
the
f
i
r
st six
(
6)
months
10
f
ollowing t
er
min
a
tion of
e
mpl
o
y
m
e
nt th
a
t
c
onstitut
e
s a
s
e
p
a
r
a
tion
fr
om s
er
vi
c
e
pu
r
su
a
nt to
S
ec
tion 409A unl
e
ss E
x
ec
utive
di
e
s p
r
ior
to the
e
nd of
su
c
h
s
ix
(
6)
month p
er
iod. Any
dist
r
ibution whi
c
h would oth
er
wise
be
p
a
id to E
x
ec
utive
du
r
ing
s
u
c
h six
(
6)
month p
er
iod sh
a
ll be
accumulated and paid to Executive in a lump sum on the first day of the seventh (7
th
) month following such a separation from service. All subsequent distributions shall be paid in the manner otherwise specified in this Agreement.
(ii)
The
t
er
m
“
S
p
e
c
i
f
i
e
d E
m
pl
o
y
e
e
”
sh
a
ll m
ea
n
a
n
e
mpl
o
y
e
e
who
a
t the
time
of s
e
p
ara
tion
f
r
om s
er
vi
c
e
is a
“
K
e
y
Empl
o
y
e
e
”
of
the
B
a
nk or Bancorp or
a
s
u
c
c
e
ssor
e
nti
t
y
o
f
e
ith
er
, if
a
n
y
st
o
c
k of
the
B
a
nk or Bancorp or
a
su
c
ce
ssor
e
nti
t
y
of
e
ith
e
r
is publi
c
l
y
t
r
a
d
e
d on
a
n
e
st
a
blish
e
d s
ec
u
r
iti
e
s m
ar
k
e
t or
oth
e
r
wis
e
.
F
or
p
u
r
pos
e
s of
th
i
s A
g
r
ee
m
e
nt,
a
n
e
mpl
o
y
e
e
is a
K
e
y
Empl
o
y
e
e if
the
e
mpl
o
y
e
e
m
e
e
ts the
re
qui
r
e
m
e
nts of
s
ec
tion
416
(
i
)(
1
)
(
A
)(
i
)
,
(
ii
)
, or
(
i
ii)
of
the
I
nt
er
n
al
R
e
v
e
nue
C
ode
of
1986,
a
s
a
m
e
nd
e
d
(
a
ppli
e
d in
a
c
c
o
r
d
a
n
c
e
with the
r
e
g
ul
a
t
ions th
ere
und
e
r
a
nd dis
re
g
ar
di
n
g
s
e
c
tion 416
(
i
)(
5)
th
e
r
e
o
f
)
a
t
a
n
y
time
du
r
ing
the
t
w
e
lve
(
12)
m
onth p
er
iod
e
nding on D
ece
m
b
e
r
31
(
the
"
I
d
e
nti
f
i
ca
tion
P
er
iod
"
)
.
I
f
t
he
e
mpl
o
y
e
e
is a
K
e
y
E
mpl
o
y
e
e
d
u
r
ing
a
n
I
d
e
nti
f
i
ca
tion
P
er
iod, the
e
mpl
o
y
e
e
is t
rea
t
e
d
a
s a
K
e
y
Empl
o
y
e
e
f
o
r
pu
r
p
o
s
e
s of
this Ag
ree
m
e
nt du
r
ing
the
t
w
e
lve
(
12)
m
onth p
er
iod th
a
t b
e
g
ins on the
f
i
r
st d
a
y
of
A
p
r
il
f
ollowing
the
c
lose
o
f the
I
d
e
nti
f
i
ca
tion
P
er
iod.
(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.
12.
Noti
ce
s
A
n
y
noti
ce
s to
be
g
i
v
e
n h
e
r
e
und
e
r
s
h
a
ll be
in w
r
iting
a
nd
m
a
y
be t
ra
nsmitt
e
d
b
y
email with confirmation of receipt by the recipient or its counsel,
p
e
r
son
a
l
d
e
liv
e
r
y
or
b
y
U.
S
. m
a
il,
r
e
g
ist
e
re
d or
cer
ti
f
i
e
d, po
s
t
a
ge
p
re
p
a
id with
re
tu
r
n
r
e
ce
ipt
r
e
qu
e
st
e
d.
M
a
il
e
d noti
ce
s sh
a
ll be
a
dd
re
ss
e
d to E
x
ec
utive
a
t the
a
dd
r
e
ss list
ed
in E
x
ec
utiv
e’
s p
er
so
n
n
e
l
f
ile
a
nd to the
B
a
nk
a
t its p
r
in
c
ip
a
l b
u
sin
e
ss o
ff
i
c
e
lo
c
a
t
e
d
a
t 86 N. Main Street, Porterville ,
C
a
li
f
o
r
ni
a 93257
. A p
a
r
t
y
m
a
y
c
h
a
n
g
e
the
a
dd
re
s
s
f
or
r
e
ce
ipt of
noti
ces
b
y
w
r
itt
e
n noti
c
e
in
a
c
c
o
r
d
a
n
c
e
with this
p
a
r
a
g
ra
p
h 12
. Noti
ce
s d
e
liv
e
r
e
d
p
er
son
a
l
l
y
sh
a
ll be d
ee
m
e
d
c
ommuni
c
a
t
e
d
a
s of
the
d
a
te
of
ac
tu
a
l
r
e
c
e
ipt; m
a
il
e
d
11
noti
ce
s sh
a
ll be
d
ee
m
ed c
ommuni
ca
t
e
d
a
s of
th
r
e
e
(
3)
d
a
y
s
af
t
e
r
t
h
e
d
a
te
o
f
m
a
ilin
g
; and emailed notices upon confirmation of receipt.
A
r
bit
ra
tion
All
c
l
a
ims, disput
e
s
a
nd oth
e
r
m
a
tt
e
r
s in qu
e
stion
ar
ising
out
of
or
re
l
a
ting
to E
x
ec
utiv
e
’
s
e
mpl
o
y
m
e
nt
a
nd/or
this
Ag
ree
m
e
nt
o
r
the
b
r
e
ac
h
or
int
er
p
re
t
a
tion th
ere
o
f
, oth
e
r
th
a
n those
m
a
tt
er
s whi
c
h
a
r
e
to be
d
e
t
er
min
e
d
b
y
the
B
a
nk or Bancorp, in th
e
ir
re
sp
ec
tive
sole
a
nd
a
bso
l
ute
dis
cre
tion, sh
a
ll be
r
e
solv
e
d
b
y
bindi
n
g
ar
bit
r
a
tion b
ef
o
r
e
a
re
p
re
s
e
nt
a
tive
m
e
mb
e
r
, s
e
l
ec
t
e
d
b
y
the
mutu
a
l
a
g
r
ee
m
e
nt of
the
p
ar
ti
e
s, of
t
he
American Arbitration Association (“
AAA
”)
in
acc
o
r
d
a
n
c
e
with the
r
ul
e
s
a
nd p
r
o
c
e
du
r
e
s of
AAA
th
e
n in
effec
t.
Noti
c
e
of
t
h
e
d
e
m
a
nd
f
or
a
r
bit
ra
tion sh
a
ll be
f
il
e
d in w
r
iting with the
oth
e
r
p
ar
t
y
to this Ag
ree
m
e
nt
a
nd with
AAA
.
I
n no
e
v
e
nt s
h
a
ll the
d
e
m
a
nd
f
or
ar
bit
ra
tion be
m
a
de
a
f
t
e
r
the
d
a
te
w
h
e
n institution of
l
e
g
a
l or
e
quit
a
ble
p
r
o
c
ee
di
n
g
s b
a
s
e
d on su
c
h
c
l
a
im, dispute
or
oth
e
r
m
a
tt
e
r
in
qu
e
stion would be
b
ar
r
e
d
b
y
the
a
ppli
ca
ble
st
a
tu
t
e
of
limit
a
tions. A
n
y
a
w
ar
d
re
nd
e
re
d
b
y
AAA sh
a
ll be
in w
r
i
ting
a
nd
f
in
a
l
a
nd binding
upon the
p
ar
ti
e
s,
a
nd
a
s
a
ppli
ca
bl
e
, th
e
i
r
re
s
p
e
c
tive
h
e
i
r
s, b
e
n
ef
i
c
i
ar
i
e
s,
l
e
g
a
l
re
p
r
e
s
e
nt
a
tiv
e
s,
a
g
e
nts,
s
u
cce
sso
r
s
a
nd
a
ssi
g
ns,
a
nd
m
a
y
be
e
nt
e
re
d in
a
n
y
c
o
u
r
t h
a
vi
n
g
ju
r
isdi
c
tion th
ere
of
to the
e
x
t
e
nt p
er
mitt
e
d
b
y
a
ppli
ca
ble
l
a
w. T
h
e
obli
g
a
tions
a
nd
r
i
g
hts of
t
h
e
p
ar
ti
e
s to
ar
bit
ra
te
pu
r
su
a
nt to this
c
l
a
use
sh
a
ll be
sp
ec
i
f
i
c
a
l
l
y
e
n
f
o
r
cea
b
le
in
acc
o
r
d
a
n
c
e
with,
a
n
d sh
a
ll be
a
ppli
e
d,
c
onst
r
u
e
d
a
nd int
er
p
r
e
t
e
d
c
onsist
e
nt
l
y
with, the
p
r
o
visions of
the
Fe
d
e
ra
l A
r
bit
ra
tion A
c
t, 9 U.
S
.
C
. s
ec
tion 1,
et
s
e
q. E
x
ec
utive
a
g
ree
s to
c
on
d
u
c
t
ar
bit
ra
tion
a
s
a
n indi
v
idu
a
l sol
e
l
y
upon
a
nd
re
l
a
t
e
d to E
x
ec
utiv
e’
s own
c
l
a
ims
a
nd w
a
iv
e
s
a
n
y
r
i
g
ht to pu
r
sue
su
c
h
c
l
a
ims
a
s
a
c
l
a
ss
ac
tion. A
n
y
ar
bit
ra
tion h
e
r
e
und
e
r
s
h
a
ll be
c
ondu
c
t
e
d in
Fresno
,
C
a
li
f
o
r
ni
a
, unl
e
ss ot
h
er
wise
a
g
ree
d to
b
y the
p
ar
ti
e
s.
Atto
r
n
e
y
s
'
F
e
e
s
a
nd
C
os
t
s
In the
e
v
e
nt of
litig
a
tion,
ar
bit
ra
tion or
a
n
y
ot
h
e
r
ac
tion or
p
r
o
c
ee
di
n
g
b
e
t
w
ee
n the
p
ar
ti
e
s to int
er
p
re
t or
e
n
f
o
r
c
e
this Ag
re
e
m
e
nt or
a
n
y
p
ar
t th
ere
of
or
ot
h
er
wise
ar
ising
out of
or
re
l
a
ti
n
g
to this A
g
r
ee
m
e
nt, the
p
r
e
v
a
i
l
ing
p
ar
t
y
s
h
a
ll be
e
ntitl
e
d to
rec
ov
e
r
its
c
osts
re
l
a
t
e
d to
a
n
y
su
c
h
ac
t
i
on or
p
r
o
c
e
e
di
n
g
a
nd its
rea
son
a
b
l
e
f
e
e
s of
a
tto
r
n
e
y
s,
a
c
c
ount
a
nts
a
n
d
e
x
p
er
t witn
e
ss
e
s in
c
u
r
r
e
d
b
y
s
u
c
h p
ar
t
y
in
c
on
n
ec
tion with
a
n
y
su
c
h
ac
tion or
p
r
o
c
ee
di
n
g
. T
h
e
p
re
v
a
ili
n
g
p
a
r
t
y
s
h
a
ll be
d
ee
m
e
d to
b
e
the
p
ar
t
y
whi
c
h obt
a
ins subst
a
nti
a
l
l
y
the
re
li
e
f
s
o
u
g
ht
b
y
f
in
a
l
r
e
solution,
c
omp
r
omise
or
s
e
ttl
e
m
e
n
t, or
a
s m
a
y
oth
er
wise be
d
e
t
er
min
e
d
b
y
o
r
d
e
r
o
f
a
c
ou
r
t of
c
omp
e
t
e
nt ju
r
isdi
c
tion in the
e
v
e
nt of
liti
g
a
tion,
a
n
a
w
ar
d or d
ec
ision of
one
or
mo
r
e
a
r
bit
ra
to
r
s in the
e
v
e
nt of
ar
bit
ra
tion, or
a
d
ec
ision
of
a
c
omp
a
ra
ble o
ff
i
c
i
a
l in the
e
v
e
nt of
a
n
y
oth
e
r
ac
tion or
p
r
o
c
e
e
d
in
g
. Ev
e
r
y
oblig
a
tion to ind
e
mni
f
y
und
e
r
this Ag
ree
m
e
nt in
c
lu
d
e
s the
obli
g
a
tion to p
a
y
r
e
a
son
a
ble
fee
s of
a
tto
r
n
e
y
s,
a
c
c
ount
a
nts
a
nd
e
x
p
er
t witn
e
ss
e
s in
c
u
r
r
e
d
b
y
the
ind
e
mni
f
i
e
d p
ar
t
y
in
c
o
n
n
ec
tion with m
a
tt
er
s subj
ec
t to ind
e
mni
f
i
ca
tion.
12
Enti
r
e
A
g
r
e
e
m
e
nt
This Ag
ree
m
e
nt su
p
er
s
e
d
e
s
a
n
y
a
nd
a
ll oth
e
r
a
g
ree
m
e
nts,
e
ith
e
r
o
ra
l or
in
w
r
itin
g
,
b
e
tw
ee
n the
p
ar
ti
e
s with
re
sp
ec
t to the
e
mpl
o
y
m
e
nt of
E
x
ec
utive
b
y the
B
a
nk
a
nd
c
ont
a
ins
a
ll of
the
c
ov
e
n
a
nts
a
nd
a
g
r
e
e
m
e
nts b
e
t
w
ee
n the
p
a
r
ti
e
s with
re
sp
ec
t to the
e
mpl
o
y
m
e
nt of
E
x
ec
utive
b
y
t
h
e
B
a
nk or Bancorp; p
r
ovid
e
d, th
a
t, this Ag
ree
m
e
nt d
o
e
s not sup
e
r
s
e
de
or
re
pl
a
c
e
the
r
i
g
h
t
s
a
nd b
e
n
ef
its und
e
r
(
i)
any supplemental retirement or salary continuation plan,
or
(
ii)
a
n
y
sto
c
k option or
e
qui
t
y
a
w
ar
d
a
g
r
e
e
m
e
nt
b
e
tw
ee
n
Bancorp
a
nd E
x
ec
utive
o
f
this Ag
ree
m
e
nt.
E
ac
h
p
ar
t
y
to this A
g
r
e
e
m
e
nt
a
c
kn
o
wl
e
dg
e
s th
a
t no oth
e
r
r
e
p
re
s
e
nt
a
tions, indu
ce
m
e
nts, p
r
omis
e
s,
o
r
a
g
r
e
e
m
e
nts, o
ra
l or
ot
h
er
wis
e
, h
a
v
e
b
e
e
n m
a
de
b
y
a
n
y
p
ar
t
y
, or
a
n
y
o
n
e
a
c
ting
on
b
e
h
a
lf
of
a
n
y
p
ar
t
y
, wh
i
c
h
a
r
e
n
ot s
e
t
f
o
r
th h
ere
in,
a
nd th
a
t no oth
e
r
a
g
r
ee
m
e
nt, st
a
t
e
m
e
nt, or
p
r
omise
not
c
ont
a
in
e
d in this Ag
re
e
m
e
nt sh
a
ll be
v
a
lid or
binding
on
e
ith
e
r
p
ar
t
y
.
Modi
f
i
ca
tions
A
n
y
mo
d
i
f
i
ca
tion of
this Ag
ree
m
e
nt will be
eff
e
c
tive
on
l
y
i
f
it is in w
r
iting
a
nd s
i
g
n
e
d
b
y
a
p
ar
t
y
or
its
a
utho
r
i
z
e
d
r
e
p
re
s
e
n
t
a
tiv
e.
W
a
iv
er
The
fa
ilu
r
e
of
a
p
ar
t
y
to insist on st
r
i
c
t
c
o
mpli
a
n
c
e
with
a
n
y
of
the
t
er
ms, p
r
ovisions,
c
ov
e
n
a
nts, or
c
onditions of
this A
g
r
ee
m
e
nt
b
y
a
not
h
e
r
p
a
r
t
y
s
h
a
ll not be
d
ee
m
e
d
a w
a
iv
e
r
of
a
n
y
t
er
m, p
r
ov
i
sion,
c
ov
e
n
a
nt, or
c
ondit
i
on, individu
a
l
l
y
o
r
in the
a
gg
r
e
g
a
t
e
, unl
e
ss su
c
h w
a
iv
e
r
is in w
r
iti
n
g
,
nor
sh
a
ll
a
n
y
w
a
iv
e
r
or
r
e
linquishm
e
nt of
a
n
y
r
ight or
pow
e
r
a
t
a
n
y
one time
or
tim
e
s be
d
ee
m
e
d
a
w
a
iv
e
r
o
r
re
linquishm
e
nt of
th
a
t
r
i
g
ht or
po
w
e
r
f
or
a
ll or
a
n
y
oth
e
r tim
e
s.
P
ar
ti
a
l
I
n
v
a
lidi
t
y
If
a
n
y
p
r
ovision in this A
g
ree
m
e
nt is h
e
ld
b
y
a
c
ou
r
t of
c
omp
e
t
e
nt ju
r
isdi
c
tion to be
inv
a
lid, void, or
un
e
n
f
o
rc
e
a
bl
e
, the
r
e
m
a
ini
n
g p
r
ovisions sh
a
ll n
e
v
er
th
e
l
e
ss
c
ontinue
in
f
ull
f
o
rc
e
a
nd
e
f
fec
t wit
h
out b
e
ing
imp
a
i
re
d
o
r
in
v
a
lid
a
t
e
d in
a
n
y
w
a
y.
I
nt
e
r
p
re
t
a
tion
This Ag
r
e
e
m
e
nt sh
a
ll be
c
onst
r
u
e
d
without
re
g
ar
d to the
p
a
r
ty
re
sponsible
f
or
the
p
re
p
a
ra
tion of
the
A
g
r
ee
m
e
nt
a
nd sh
a
ll be
d
ee
m
e
d to h
a
ve
b
e
e
n p
re
p
are
d joint
l
y
b
y
the
p
ar
ti
e
s. A
n
y
a
mb
i
g
ui
t
y
or
un
c
er
t
a
in
t
y
e
x
isting
in this A
g
r
ee
m
e
nt sh
a
ll not be int
er
p
re
t
e
d
a
g
a
inst
e
ith
e
r
p
ar
t
y
, but
acc
o
r
di
n
g
to the
a
ppli
ca
tion of
oth
e
r
r
u
l
e
s of
c
ont
r
a
c
t int
er
p
re
t
a
tion, if
a
n
a
mbi
g
ui
t
y
or
un
c
er
t
a
in
t
y
e
x
ists.
Gov
er
ni
n
g
L
a
w
a
nd
V
e
n
u
e
The
l
a
ws
o
f
the
S
t
a
te
of
C
a
li
f
o
r
ni
a
, oth
e
r
th
a
n
those l
a
ws d
e
nomin
a
t
e
d
c
hoi
c
e
of
l
a
w
r
ul
e
s,
a
nd the
r
ul
e
s
a
nd
r
e
g
ul
a
tions of
the
r
e
g
u
l
a
to
r
y
a
utho
r
iti
e
s h
a
ving
ju
r
isdi
c
tion ov
e
r
the
B
a
nk and Bancorp in
c
l
u
din
g
, but not limit
e
d to,
t
he
FRB, F
D
I
C
13
a
nd BDO, sh
a
ll
g
ov
er
n the
v
a
lidi
t
y
,
c
onst
r
u
c
tion
a
nd
e
ffec
t of
this
A
g
ree
m
e
nt,
e
x
ce
pt
f
or
p
a
r
a
g
ra
ph 1
3
r
e
g
ar
di
n
g
ar
bit
ra
tion,
whi
c
h sh
a
ll be
g
ov
er
n
e
d
b
y
the
Fe
d
era
l
A
r
bit
ra
tion A
c
t
(
9 U.
S
.
C
. § 1,
et
s
e
q
.
)
. A
n
y
a
c
tion whi
c
h
in
a
n
y
w
a
y
involv
e
s the
r
i
g
hts, duti
e
s
a
nd oblig
a
tions of
the
p
ar
ti
e
s h
ere
und
e
r
a
nd is not
re
s
o
lv
e
d
b
y
bindi
n
g
ar
bit
r
a
tion sh
a
ll be
b
r
o
u
g
ht in the
c
ou
r
ts of
the
S
t
a
te
of
C
a
li
f
o
r
nia
or
fe
d
e
r
a
l
c
ou
r
t
a
nd v
e
nue
f
o
r
a
n
y
a
c
tion or
p
r
o
c
e
e
di
n
g
sh
a
ll be
i
n the
C
a
li
f
o
r
nia
S
up
er
ior
C
ou
r
t
f
or
Tulare
or
in the
U
nit
e
d
S
t
a
t
e
s Dist
r
i
c
t
C
ou
r
t
f
or
the
Eastern Dist
r
i
c
t of
C
a
li
f
o
r
ni
a
,
a
n
d the
p
ar
ti
e
s h
e
r
e
b
y
su
b
mit to the
p
er
son
a
l ju
r
isdi
c
tion of
s
a
id
c
ou
r
ts.
Pa
y
m
e
nts D
u
e
D
e
cea
s
ed
E
x
ec
utiv
e
If
E
x
ec
utive
di
e
s p
r
ior
to the
e
x
pi
ra
tion of
the
t
er
m of
E
x
ec
u
t
iv
e’
s
e
mpl
o
y
m
e
nt,
a
n
y
p
a
y
m
e
nts th
a
t m
a
y
b
e
due
E
x
ec
utive
fr
om the
B
a
nk or Bancorp un
d
e
r
t
his A
g
r
ee
m
e
nt
a
s
o
f
the
d
a
te
of
d
e
a
th sh
a
ll be
p
a
i
d to E
x
ec
utiv
e
's
h
e
i
r
s, b
e
n
ef
i
c
i
ar
i
e
s, s
u
c
c
e
sso
r
s, p
er
mitt
e
d
a
ss
i
g
ns
or
t
ra
ns
f
e
ree
s,
e
x
ec
uto
r
s,
a
dminist
ra
to
r
s, t
r
ust
ee
s, or
a
n
y
oth
e
r
l
e
g
a
l or
p
er
son
a
l
re
p
r
e
s
e
nt
a
t
iv
e
s.
Assi
g
nm
e
nt/
B
indi
n
g
E
ff
ec
t
E
x
ce
pt
a
s sp
ec
i
f
i
c
a
lly
s
e
t
f
o
r
th in this A
g
r
e
e
m
e
nt, E
x
ec
utive
m
a
y
not
a
s
si
g
n, d
e
l
e
g
a
te
or
oth
e
r
w
i
se
t
ra
ns
f
e
r
a
n
y
of
E
x
ec
utiv
e’
s
r
i
g
hts, b
e
n
ef
its, duti
e
s or
oblig
a
t
ions und
e
r
this A
g
r
ee
m
e
nt without the
p
r
ior
w
r
itt
e
n
c
ons
e
nt of
the
B
a
nk and Bancorp. This
A
g
ree
m
e
nt sh
a
ll inu
r
e
to the
b
e
n
ef
it of
a
nd
b
e
binding
upon the
B
a
nk and Bancorp
a
nd their
re
sp
e
c
tive
su
cce
sso
r
s
a
nd
a
ss
i
g
ns,
a
nd E
x
ec
utive
a
nd E
x
ec
utiv
e’
s h
e
i
r
s, b
e
n
ef
i
c
i
a
r
i
e
s, su
c
ce
sso
r
s,
p
er
mitt
e
d
a
ssi
g
ns or
t
ra
n
s
fer
e
e
s,
e
x
ec
uto
r
s,
a
dmi
n
ist
ra
to
r
s, t
r
ust
ee
s,
a
nd
a
n
y
oth
e
r
l
e
g
a
l or
p
e
r
son
a
l
re
p
r
e
s
e
nt
a
tiv
e
s.
R
e
g
ul
a
to
r
y
L
imit
a
tions
E
x
ec
utiv
e
,
the
B
a
nk,
and Bancorp
ac
knowl
e
d
ge
a
nd
a
g
re
e
t
h
a
t notwithst
a
nding
a
n
y
ot
h
e
r
p
r
ovision of
t
his A
g
r
ee
m
e
nt to the
c
o
n
t
ra
r
y
, the
r
i
g
hts, b
e
n
ef
its, duti
e
s, or
oblig
a
tions of
the
p
ar
ti
e
s h
e
r
e
u
nd
e
r
a
r
e
c
ondition
e
d up
o
n
a
nd subj
ec
t to the
r
ul
e
s
a
nd
r
e
g
u
l
a
tions p
r
omul
g
a
t
e
d
b
y
r
e
g
ul
a
to
r
y
a
utho
r
iti
e
s h
a
ving
ju
r
isdi
c
tion ov
e
r
the
B
a
nk.
E
ffec
t
o
f
T
er
min
a
tion on
C
er
t
a
in
P
r
ovisions
Upon the
t
er
min
a
tion of
this Ag
ree
m
e
nt, the
obl
i
g
a
ti
o
ns of
the
B
a
nk and
E
x
ec
utive
h
ere
un
d
e
r
sh
a
ll
cea
se
e
x
ce
pt to the
e
x
t
e
nt of
the
B
a
nk or Bancorp
’
s
obl
i
g
a
tions to m
a
ke
p
a
y
m
e
nts, if
a
n
y
, to or
f
or
the
b
e
n
ef
it of E
x
ec
utive
f
ollowing
t
er
min
a
tion,
a
nd p
r
ovid
e
d
th
a
t
p
ar
a
g
r
a
phs 3, 5, 6, 7, 9(f), 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24 and 25
sh
a
ll
re
m
a
in in
f
ull
f
o
rc
e
a
nd
e
f
fe
c
t.
Advi
c
e
of
C
ouns
e
l
a
nd
A
dviso
r
s
E
x
ec
utive
a
c
knowl
e
d
g
e
s
a
nd
a
g
r
ee
s
th
a
t he h
a
s
rea
d
a
nd und
e
r
st
a
nds
the
t
er
ms
a
nd p
r
ovisions of
this A
g
r
ee
m
e
nt
a
nd
p
r
ior
to si
g
ni
n
g
this Ag
ree
m
e
nt,
h
e
h
a
s h
a
d t
h
e
14
a
dvi
c
e
o
f
c
ouns
e
l
a
nd/or
su
c
h oth
e
r
a
dviso
r
s
a
s
h
e
d
ee
m
e
d
a
pp
r
op
r
i
a
te
in
c
onn
ec
tion
with his
re
vi
e
w
a
nd
a
n
a
l
y
s
is of
su
c
h t
e
r
ms
a
nd p
r
ovisions of
this Ag
ree
m
e
nt.
[
R
EMA
I
NDER
OF
P
AGE
I
NTENT
I
ONAL
L
Y
LE
F
T
B
L
ANK]
15
IN WITNESS WHEREOF, this Agreement is executed as of the day and year first above written.
EXECUTIVE
/s/
Matthew Macia
Matthew Macia
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
16
EXHIBIT A
GENE
R
A
L
R
E
L
EA
S
E
AG
R
EEMENT
THIS GENERAL RELEASE AGREEMENT (the “
Release Agreement
”) is entered into by and among Matthew Macia (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 _________, 2019, (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;
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(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:
1.
The Executive is not entitled to receive any other compensation, benefit or other payment under the Agreement or this Release Agreement, other than any salary and unused paid time off to the date of termination of employment and any vested benefits under any benefit plan of the Bank in which the Executive participated. The Executive agrees that the Executive is not entitled to any other benefits under any other program or plan of the Bank or its respective affiliates or subsidiaries.
2.
Upon the request of the Bank, the Executive has or will promptly return all property of the Bank and its affiliates and subsidiaries, to them, including, but not limited to, club
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membership interests, customer information, computers and other electronic and technology devices, keys to offices, identification cards and corporate credit cards, prior to receipt of any payments pursuant to this Release Agreement.
3.
To the maximum extent permitted by law, the Executive agrees never to file a lawsuit, grievance, or any other type of action asserting any Released Claims under this Release Agreement.
4.
This Release Agreement will forever and for all time bar any action and/or Released Claims of the Executive that occurred on or prior to the date of the expiration of the revocation period described below.
5.
The Executive shall comply with the non-solicitation and nondisclosure provisions set forth in Change in Control Agreement.
6.
The Executive and the Bank agree that no party or its representatives will make, directly or indirectly, or knowingly encourage any other person or entity to make, any disparaging, derogatory, or defamatory statement(s) regarding the other or any of the Released Parties to third parties including, but not limited to, customers and prospective customers of the Bank, and/or its affiliates and subsidiaries, whether communicated in oral, written, electronic or other form including, but not limited to, through the use of public or social media, the internet, electronic devices, any news or press media, or other form of publication. This restriction shall include, but not be limited to, statements regarding the Bank’s policies, procedures, or practices (including, but not limited to, business, lending, or credit policies, procedures or practices). Notwithstanding the foregoing, the parties may provide truthful information in response to a legal subpoena or other legal process.
7.
If any provision in this Release 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.
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
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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 ____________, 201
_
, in the City of
, County
of
, State of California.
EXECUTIVE
____________________________________
Matthew Macia
SIERRA BANCORP
A California corporation
By:_________________________________
Name:
Title:
BANK OF THE SIERRA
A California banking corporation
By:_________________________________
Name:
Title:
9001.055/1400519.1
Exhibit A
