Exhibit 10.1


 


EMPLOYMENT
AGREEMENT


 


THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 19th
day of November, 2004, by and between CoBiz, Inc., a
Colorado corporation (“Company”), and Steven Bangert
(“Employee”).


 


WITNESSETH:


 


WHEREAS,
Company desires Employee to become employed by Company and Employee desires to
become employed by Company upon the terms and conditions hereinafter set forth.


 


NOW, THEREFORE, the parties agree as follows:


 


1.               EMPLOYMENT.  Company hereby agrees to employ Employee, and
Employee hereby agrees to be employed by Company, as (a) Chairman of the
Company, (b) Chief Executive Officer of the Company and  (c) such other or different executive
capacities as may be determined from time to time by the Boards of Directors of
Company.


 


2.               RESPONSIBILITIES
OF EMPLOYMENT.  During the term of
his employment, Employee:


 


(a)                        shall
diligently and faithfully serve Company and CoBiz
Bank, N.A. (“Bank”) in such executive capacities as may be determined from time
to time by the Boards of Directors of Company and the Bank, and he shall devote
his best efforts and entire business time, services and attention to the
advancement of Company’s interests;


 


(b)                       shall
not, without the prior written consent of the Board of Directors of Company,
engage in any other employment or business, directly or indirectly, as a sole
proprietor, a member of a partnership or limited liability company, as a
director, officer, employee or shareholder of a corporation not affiliated with
Company, or as a consultant or otherwise, whether for compensation or
otherwise, which could reasonably be expected to or does interfere with
Employee’s performance of his duties hereunder or which business is in
competition in any way with the business then being conducted by Company or
the  Bank; provided, however, that the
provisions of this subparagraph (b) shall not be deemed to prohibit Employee’s
ownership of stock in any publicly owned corporation so long as Employee’s
ownership, directly and indirectly, when aggregated with the direct and
indirect ownership of all members of Employee’s family, does not exceed one
percent (1%) of the total outstanding stock of such publicly owned corporation,
measured by reference to either market value or voting power;


 


(c)                        shall
diligently and faithfully carry out the policies, programs and directions of
the Boards of Directors of Company and the Bank;


 


(d)                       shall
fully cooperate with such other officers of the Company and the Bank as may be
elected or appointed by the Boards of Directors of Company and the Bank; and


 


(e)                        shall report to the Board of Directors of Company.


 


3.               COMPENSATION.  Company will compensate Employee for his
services during the term of this Agreement and his employment hereunder as
follows:


 


(a)                        Basic
Compensation.  Company shall pay to
Employee as basic compensation the sum of Four-Hundred Thousand Dollars
($400,000.00) per year, payable in accordance with Company’s normal payroll
schedule.  Employee’s basic compensation
may be increased from time to time in the sole discretion of Company’s Board of
Directors.


 


(b)                       Benefits.  Employee shall be entitled to use a Company
automobile (model and year to be agreed upon from time to time by Employee and
Company’s Chairman of the Compensation Committee) in the course of performing
his duties hereunder and shall be entitled to participate in any and all other
benefits from time to time afforded executive employees of Company, including,
without limitation, health, accident, hospitalization and life insurance
programs.  Company shall additionally pay
the monthly (not initial or initiation) dues for Employee at a country, health
or social club to be agreed upon by Employee and Company’s Chairman of the
Compensation Committee.


 





















 


(c)                        Reimbursement
of Expenses.  Employee shall be
entitled to reimbursement of ordinary and necessary out-of-pocket expenses
reasonably incurred by him on behalf of Company in the course of performing his
duties hereunder, subject to his furnishing appropriate documentation relative
to such expenses in form and substance satisfactory to Company.


 


(d)                       Vacations.  Employee shall be entitled to four (4) weeks
paid vacation each year, subject to Company’s general vacation policy.


 


(e)                        Discretionary
Bonus Plan.  Company has a
discretionary bonus plan for key executives. 
Employee shall be entitled to participate in such discretionary bonus
plan.


 


(f)                          Stock
Option.  Company has an Incentive
Stock Option Plan (the “Plan”) for key employees.  Employee shall be entitled to participate in
the Plan.


 


(g)                       Allocations.  As Company and Employee intend that Employee
will be a dual employee of Company and the Bank, and that Employee will be
devoting substantial time and attention to the affairs of the Bank, Company may
allocate to the Bank any portion of Employee’s basic and other compensation
that Company and the Bank deem to be a lawful and appropriate allocation, but
no such allocation will relieve Company of any of its obligations to Employee
under this Agreement.


 


4.               TERM
AND TERMINATION.


 


(a)                        Term.  The term of this Agreement shall commence on
the date hereof and shall continue until employee’s employment hereunder is
terminated by Company or Employee as provided in Section 4(b).


 


(b)                       Termination.  Either Company or Employee may terminate this
Agreement and Employee’s employment with the Company hereunder at any time by
written notice to the other specifying the effective date of the
termination.  In the case of a
termination by Employee, the effective date of termination shall be no less
than 30 days after the notice is given; provided that, at any time after
receipt of a notice of termination from Employee, Company may elect to
accelerate the effective date of termination, but such accelerated termination
shall still be deemed a termination by Employee.  This Agreement and Employee’s employment with
Company shall automatically terminate upon Employee’s death or Disability (as
defined in Paragraph 4(d)).  Upon any
termination, Company shall pay to Employee or Employee’s estate the
compensation and expense reimbursements accrued under Paragraph 3 through the
effective date of termination, but shall not be obligated to make any other
payment to Employee except as expressly provided in Paragraph 4(c).


 


(c)                        Severance.  In the event that Employee’s employment is
terminated (A) by the Company without Cause (as defined in Paragraph 4(d)), (B)
by Employee within 60 days after Employee is Constructively Discharged (as
defined in Paragraph 4(d)), (C) by Employee within 24 months after a Change of
Control (as defined in Paragraph 4(d)) or (D) as a result of Employee’s death
or Disability, the Company shall pay to Employee or Employee’s estate, in
addition to amounts accrued under Paragraph 3 through the date of termination,
the following severance benefits in lieu of any other severance pay or similar
plan or policy of the Company:


 


(i)                            Twelve
(12) consecutive monthly payments each equal to one-twelfth (1/12th)
of Employee’s annual basic compensation in effect immediately prior to Employee’s
termination;


 


(ii)                         Twelve
(12) consecutive monthly payments each equal to one-twelfth (1/12th)
of the higher of (A) Employee’s discretionary bonus for the previous calendar
year, or (B) the average of Employee’s discretionary bonus for the previous
three (3) calendar years (or such fewer calendar years as Employee has been
employed), in each case prorated to the date of Employee’s termination;


 


(iii)                      For
the twelve (12) month period following the date of termination of Employee’s
employment, Company will maintain in full force and effect for the continued
benefit of Employee each employee benefit plan in which Employee was a
participant immediately prior to the date of Employee’s termination, unless an
essentially equivalent and no less favorable benefit is provided by a
subsequent employer at no additional cost to Employee.  If the terms of any employee benefit plan of
Company do not permit continued participation by Employee, then Company will
arrange to provide to Employee (at Company’s cost) a benefit substantially
similar to and no less favorable than the benefit Employee was entitled to
receive under such plan at the end of the period of coverage.  (This provision specifically is not
applicable to Employee’s automobile and club dues, which benefits end upon
Employee’s date of termination of employment.)


 


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(iv)                     For
the twelve (12) month period following the date of termination of Employee’s
employment, Company will treat Employee for all purposes as an Employee under
all of Company’s retirement plans in which Employee was a participant on the
date of termination of Employee’s employment or under which Employee would
become eligible during such twelve (12) month period (hereinafter referred to
collectively as the “Plan”) . Benefits due to Employee
under the Plan shall be computed as if Employee had continued to be an Employee
of Company for the twelve (12) month period following termination of
employment.  If under the terms of the
Plan such continued coverage is not permitted, Company will pay to Employee or
Employee’s estate a supplemental benefit in an amount which, when added to the
benefits that Employee is entitled to receive under the Plan, shall equal the
amount that Employee would have received under the Plan had Employee remained
an employee of Company during such twelve (12) month period.


 


(v)                        If
any excise tax imposed under Internal Revenue Code Section 4999 or any
successor provision, as amended after the date hereof, is due and owing by
Employee as a result of any amount paid or payable pursuant to this Paragraph
4(c) , Company shall indemnify and hold Employee
harmless against all such excise taxes and any interest, penalties or costs
with respect thereto.


 


(vi)                     Except
as expressly provided in (iii) above, Company will be obligated to make all
payments that become due to Employee under this Paragraph 4(c) whether or not
he obtains other employment following termination.  The payments and other benefits provided for
in this Paragraph 4(c) are intended to supplement any compensation or other
benefits that have accrued or vested with respect to Employee or his account as
of the effective date of termination.


 


(vii)                  Company
may elect to defer any payments that may become due to Employee under this
Paragraph 4(c) if, at the time the payments become due, Company or the Bank is
not in compliance with any regulatory-mandated minimum capital requirements or
if making the payments would cause Company’s or the Bank’s capital to fall
below such minimum capital requirements. 
In this event, Company will resume making the payments as soon as it can
do so without violating such minimum capital requirements.


 


Notwithstanding the
foregoing, in the event that Employee terminates this Agreement within 24
months after a Change of Control, Employee shall be entitled to receive 299%
(rather than 100%) of the amounts specified in clauses (i)
and (ii) above and the amount specified in clause (ii) above shall be for an
entire year and not prorated to the date of termination.


 


(d)                       Definitions.  As used in this Agreement, the following
terms have the indicated meanings:


 


“Cause”
shall mean the occurrence of any one or more of the following: (1) Employee
willfully fails or neglects to perform his duties as prescribed herein, (2)
Employee is convicted of a crime that constitutes a felony or involves the
theft, embezzlement or improper use of corporate funds by Employee, (3)
Employee engages in self dealing detrimental to Company, (4) Employee attempts
to obtain any personal profit from any transaction in which Company has an
interest, or (5) Employee breaches any of the terms of Paragraphs 6 or 7 of
this Agreement.


 


“Change
of Control” will be deemed to have occurred if: (1) any person (as such term is
defined in Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as
amended (the “1934 Act”) other than a person who is a shareholder of Company as
of the date of this Agreement acquires beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the 1934 Act) of fifty percent (50%) or more of
the combined voting power of the then outstanding voting securities of Company;
(2) the individuals who were members of Company’s Board of Directors as of the
date of this Agreement (the “Current Board Members”) cease for any reason to
constitute a majority of the Board of Directors of Company or its successor;
however, if the election or the nomination for election of any new director of
Company or its successor is approved by a vote of a majority of the individuals
who are Current Board Members, such new director shall, for the purposes of
this paragraph, be considered a Current Board Member; or (3) Company’s
stockholders approve (a) a merger or consolidation of Company or the Bank and
the stockholders of Company immediately before such merger or consolidation do
not, immediately after such merger or consolidation, own, directly or
indirectly, more than fifty percent (50%) of the combined voting power of the
then outstanding voting securities of the entity surviving or


 


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resulting
from such merger or consolidation in substantially the same proportion as their
ownership of the combined voting power of the outstanding securities of Company
immediately before such merger or consolidation; or (b) a complete liquidation
or dissolution or an agreement for the sale or other disposition of all or
substantially all of the assets of Company or the Bank.  Notwithstanding the foregoing, a Change of
Control will not be deemed to have occurred: (1) solely because fifty percent
(50%) or more of the combined voting power of the then outstanding voting
securities of Company are acquired by (a) a trustee or other fiduciary holding
securities under one or more employee benefit plans maintained for employees of
Company or the Bank, (b) any person pursuant to the will or trust of any
existing stockholder of Company, or who is a member of the immediate family of
such stockholder, or (c) any corporation which, immediately prior to such
acquisition, is owned directly or indirectly by the stockholders in the same
proportion as their ownership of stock immediately prior to such acquisition;
or (2) if Employee agrees in writing to waive a particular Change of Control
for the purposes of this Agreement.


 


“Constructively
Discharged” means the occurrence of any one or more of the following: (A)
Employee is removed from all of the offices described in Paragraph 1 hereof;
(B) Company fails to vest with or removes from Employee the duties,
responsibilities, authority or resources that he reasonably needs to competently
perform the duties of his office; (C) Company decreases Employee’s basic
compensation or arbitrarily and capriciously decreases Employee’s bonus; or (D)
Company transfers Employee to a location outside the Denver metropolitan area;
and in any such case, Company fails to cure any of the above within thirty (30)
days after Employee gives Company written notice of the occurrence of such
event or events.


 


“Disability”
shall mean Employee’s inability due to illness or other physical or mental
disability to substantially perform his duties as prescribed herein for a
period of forty-five (45) days within any consecutive six (6) month period, and
any action to be taken hereunder based on disability shall not be effective
until the expiration of such forty-five (45) day period.


 


(e)          Conditions
to Receipt of Severance; Continuing Obligations of Employee.  Notwithstanding anything to the contrary
contained herein, termination of Employee’s employment hereunder, for
whatsoever reason or for no reason at all, by Company or otherwise, shall not
be deemed in any way to affect Employee’s obligations under Paragraphs 6 and 7
of this Agreement, with respect to which he shall remain bound.  In the event that Employee is at any time in
violation of Paragraph 6 or 7, all rights of Employee and his estate to receive
payments or other benefits under Paragraph 4(c) shall immediately
terminate.  Further, Employee’s right to
receive payments and benefits under Paragraph 4(c) shall be conditioned upon
Employee or Employee’s estate signing releases, waivers or other documents and
following procedures that, in the reasonable judgment of Company and its
counsel, are legally effective to waive all claims that Employee may have
against Company relating in any way to the employment relationship, and if
Employee fails or refuses to do so within a reasonable time after Company’s
request, all right to receive such payments and benefits shall terminate.


 


5.               SALE
OR REORGANIZATION OF COMPANY.  This
Agreement shall not restrict the sale, transfer, consolidation, liquidation,
reorganization or disposition of the assets of Company and to the extent that
the business of Company is conducted in another form or through another entity
or entities, such entity or entities shall be obligated to fulfill Company’s
obligations hereunder.


 


6.               RESTRICTIVE
COVENANTS.  It is mutually recognized
and agreed that the services to be rendered pursuant to this Agreement by
Employee are special, unique and of extraordinary character.  Therefore, as a condition to Company’s
obligations hereunder, Employee agrees that without Company’s prior written
consent, during the term of this Agreement and for a period ending on the first
anniversary of the date of termination of his employment hereunder, whether for
Cause or otherwise, he will not in any manner, directly or indirectly, solicit
or induce any person who is or was, during the six (6) month period preceding
such solicitation or inducement, an employee or agent of Company, the Bank or
any affiliate thereof, to terminate such person’s employment or agency
relationship with Company, the Bank, or such affiliate, as the case may be, or
solicit or induce any customer of Company, the Bank or any affiliate thereof,
to become


 


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a customer of any
person, firm, partnership, corporation, trust or other entity that owns,
controls or is a bank, savings and loan association, credit union, investment
advisor or similar financial institution. 
Furthermore, Employee will at no time during or subsequent to the term
of his employment by Company make any statements or take any actions which
could reasonably be expected to damage the reputation or business of Company,
the Bank or any affiliate thereof.  It is
further recognized and agreed that irreparable injury will result to Company,
its businesses and property in the event of a breach of this covenant by
Employee, that such injury would be difficult if not impossible to ascertain,
and therefore, any remedy at law for any breach by Employee of this covenant
will be inadequate and Company shall be entitled to temporary and permanent
injunctive relief without the necessity of proving actual damage to Company by
reason of any such breach.  In addition, in
the event of a breach of this covenant by Employee, Company shall also be
entitled to recover reasonable costs and attorneys’ fees incurred in connection
with the enforcement of its rights hereunder. 
Whenever used herein, Company shall be deemed to include any successors
or any other person or entity which may hereafter acquire the business of
Company or the Bank.  The foregoing
notwithstanding, should the assets of Company he disposed of in such a manner
that no purchaser thereof has acquired a going business, then Employee shall
not be bound by the covenants expressed in this paragraph.


 


7.               TRADE
SECRETS AND CONFIDENTIAL INFORMATION. 
Employee hereby covenants and agrees that he will not, except as may be
required in connection with his employment under this Agreement, directly or
indirectly, use or disclose to any other person, firm or corporation, whether
during or subsequent to the term of his employment by Company, irrespective of
the time, manner or cause of the termination of his employment, any information
of a proprietary nature belonging to Company or any of its affiliates, or which
could be reasonably expected to have an adverse effect on Company, its
businesses, property or financial condition, including but not limited to
records, data, documents, processes, specifications, methods of operation,
techniques and know-how, plans, policies, customer lists, the names and
addresses of suppliers or representatives, investigations or other matters of
any kind or description relating to the products, services, suppliers,
customers, sales or businesses of Company. 
All records, files, documents, equipment and the like relating to
Company’s businesses which Employee shall prepare, use or observe shall be and
remain the sole property of Company, and upon termination of this Agreement or
his employment hereunder for any reason, Employee shall return to the
possession of Company any items of that nature and any copies thereof which he
may have in his possession.


 


8.               INDEMNITY.


 


(a)          Indemnification.  Company will indemnify Employee (and, upon
his death, his heirs, executors and administrators) to the fullest extent
permitted by law against all expenses, including reasonable attorneys’ fees,
court and investigative costs, judgments, fines and amounts paid in settlement
(collectively, “Expenses”) reasonably incurred by him in connection with or
arising out of any pending, threatened or completed action, suit or proceeding
in which he may become involved by reason of his having been an officer or
director of Company or the Bank.  The
indemnification rights provided for herein are not exclusive and will
supplement any rights to indemnification that Employee may have under any
applicable bylaw or charter provision of Company or the Bank, or any resolution
of Company or the Bank, or any applicable statute.


 


(b)         Advancement
of Expenses.  In the event that
Employee becomes a party, or is threatened to be made a party, to any pending,
threatened or completed action, suit or proceeding for which Company or the
Bank is permitted or required to indemnify him under this Agreement, any
applicable bylaw or charter provision of Company or the Bank, any resolution of
Company or the Bank, or any applicable statute, Company will, to the fullest
extent permitted by law, advance all Expenses incurred by Employee in connection
with the investigation, defense, settlement or appeal of any threatened,
pending or completed action, suit or proceeding, subject to receipt by Company
of a written undertaking from Employee to reimburse Company for all Expenses
actually paid by Company to or on behalf of Employee in the event it shall be
ultimately determined that Company or the Bank cannot lawfully indemnify
Employee for such Expenses, and to assign to Company all rights of Employee to
indemnification under any policy of directors, and officers, liability
insurance to the extent of the amount of Expenses actually paid by Company to
or on behalf of Employee.


 


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(c)          Litigation.  Unless precluded by an actual or potential
conflict of interest, Company will have the right to recommend counsel to
Employee to represent him in connection with any claim covered by this Section
8. Further, Employee’s choice of counsel, his decision to contest or settle any
such claim, and the terms and amount of the settlement of any such claim will
be subject to Company’s prior reasonable approval in writing.


 


9.               ARBITRATION.  Any disputes arising out of this Agreement or
connected with Employee’s employment shall be submitted by Employee and Company
to arbitration by the American Arbitration Association or its successor, and
the determination of the American Arbitration Association or its successor
shall be final and absolute.  The
arbitrator shall be governed by the duly promulgated rules and regulations of
the American Arbitration Association or its successor, and the pertinent
provisions of the laws of the State of Colorado relating to arbitration.  The decision of the arbitrator may be entered
as a judgment in any court in the State of Colorado or elsewhere.  The prevailing party shall be entitled to
receive reasonable attorneys’ fees incurred in connection with such arbitration
in addition to such other costs and expenses as the arbitrators may award.


 


10.         INTERPRETATION.  This Agreement shall be construed in accordance
with the internal laws of the State of Colorado.  The titles of the paragraphs have been
inserted as a matter of convenience of reference only and shall not be
construed to control or affect the meaning or construction of this Agreement.


 


11.         SEVERABILITY.  In the event that any portion of this
Agreement is found to be in violation of or conflict with any federal or state
law, the parties agree that said portion shall be modified only to the extent
necessary to enable it to comply with such law.


 


12.         ASSIGNMENT.  This Agreement shall not be assignable by
Employee, but shall be binding upon and inure to the benefit of the successors
and assigns of Company.


 


13.         NOTICES.  All notices or other communications in
connection with this Agreement shall be in writing and shall be deemed to have
been duly given when delivered, sent by professional courier or mailed first
class, postage prepaid and addressed as follows:


 


(i)                                     If
to Company, addressed to:


 


CoBiz
Inc.

821 - 17th Street

Denver, Colorado 80202


 


Attn: Noel
Rothman, Chairman of Compensation Committee


 


(ii)                                  If
to Employee, addressed to:


 


	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
   

  
	
   

  	
   

  



 


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or such other address or
addressed to the attention of such other person or persons as either of the parties
may notify the other in accordance with the provisions of this paragraph.


 


14.         ENTIRE
AGREEMENT.  This Agreement is the
entire agreement and understanding of the parties hereto with respect to the
subject matter hereof and supersedes any and all prior and contemporaneous
negotiations, understandings and agreements with regard to the subject matter
hereof, whether oral or written.  No
representation, inducement, agreement, promise or understanding altering,
modifying, taking from or adding to the terms and conditions hereof shall have
any force or effect unless the same is in writing and validly executed by the
parties hereto.


 


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


 


	
   

  	
   

  	
   

  	
  CoBiz,
  Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  :/s/

  	
  Steven Bangert

  	
   

  	
  By:/s/

  	
  Noel Rothman

  	
   

  
	
   

  	
   

  	
  Steven Bangert

  	
   

  	
  Noel Rothman

  
	
   

  	
   

  	
   

  	
   

  	
  Chairman of the Compensation Committee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
							



 


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