Exhibit 10.6 Split Dollar Life Insurance Agreement
with William R. Kitchen


 


SPLIT DOLLAR LIFE INSURANCE AGREEMENT


THIS SPLIT DOLLAR
AGREEMENT (this “Agreement”) is adopted this 16th day of November, 2011, by and between Valley Business Bank, a California
corporation (hereinafter referred to as the “Employer”), and Bill Kitchen (hereinafter referred to as the “Executive”),
effective as of the 16th day of November, 2011, formalizes the agreements and understanding between the Employer and the Executive.


WITNESSETH:


WHEREAS, the Executive
is employed by the Employer;


WHEREAS, the Employer
recognizes the valuable services the Executive has performed for the Employer and wishes to encourage the Executive’s continued
employment and to provide the Executive with additional incentive to achieve corporate objectives;


WHEREAS, the Employer
wishes to provide the terms and conditions upon which the Employer shall share the death proceeds of certain life insurance policies
with the Executive’s designated beneficiary;


NOW THEREFORE, in
consideration of the premises and of the mutual promises herein contained, the Employer and the Executive agree as follows:


ARTICLE 1


DEFINITIONS


Whenever used in
this Agreement, the following terms shall have the meanings specified:


1.1             
“Accrued Benefit” means the dollar value of the liability that should be accrued by the Employer, under Generally
Accepted Accounting Principles, for the Employer’s obligation to the Executive under Salary Continuation Agreement, calculated
by applying by applying Accounting Standards Codification 710-10 and the Discount Rate.


1.2             
“Administrator” means the Board or its designee.


1.3             
“Beneficiary” means each designated person, or the estate of the deceased Executive, entitled to benefits upon
the death of the Executive.


1.4             
“Beneficiary Designation Form” means the form established from time to time by the Administrator that the Executive
completes, signs and returns to the Administrator to designate one or more Beneficiaries.


1.5             
“Board” means the Board of Directors of the Employer.


1.6             
“Code” means the Internal Revenue Code of 1986, as amended.


1.7             
“Insurer” means the insurance company issuing the Policy.



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1.8             
“Net Death Proceeds” means the total death proceeds of the Policy minus the greater of (i) the Policy’s
cash surrender value or (ii) the aggregate premiums paid on the Policy by the Employer.


1.9             
“Policy” means the individual insurance policy or policies adopted by the Employer for purposes of insuring
the Executive’s life under this Agreement.


1.10         
“Salary Continuation Agreement” means the Salary Continuation Agreement executed on or about the same date as
this Agreement, as such agreement may be amended from time to time, which provides post-employment benefits to the Executive during
the Executive’s life.


1.11         
“Separation from Service” means a termination of the Executive’s employment with the Employer for reasons
other than death. A Separation from Service may occur as of a specified date for purposes of the Agreement even if the Executive
continues to provide some services for the Employer after that date, provided that the facts and circumstances indicate that the
Employer and the Executive reasonably anticipated at that date that either no further services would be performed after that date,
or that the level of bona fide services the Executive would perform after such date (whether as an employee or as an independent
contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed
over the immediately preceding thirty-six (36) month period (or the full period during which the Executive performed services for
the Employer, if that is less than thirty-six (36) months). A Separation from Service will not be deemed to have occurred while
the Executive is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed
six (6) months or, if longer, the period for which a statute or contract provides the Executive with the right to reemployment
with the Employer. If the Executive’s leave exceeds six (6) months but the Executive is not entitled to reemployment under
a statute or contract, the Executive incurs a Separation of Service on the next day following the expiration of such six (6) month
period. The Administrator shall have full and final authority, to determine conclusively whether a Separation from Service occurs,
and the date of such Separation from Service.


ARTICLE 2


POLICY OWNERSHIP/INTERESTS


2.1Employer’s
Interest. The Employer shall own the Policy and shall have the right to exercise all incidents of ownership and the Employer may
terminate a Policy without the consent of the Executive. The Employer shall be the beneficiary of the remaining death proceeds
of the Policy after the Executive’s interest is determined according to Section 2.2 below.


2.2Executive’s
Interest. The Executive, or the Executive’s assignee, shall have the right to designate the Beneficiary of an amount of death
proceeds as specified in this Section 2.2. The Executive shall also have the right to elect and change settlement options with
respect to the Executive’s interest by providing written notice to the Employer and the Insurer.


2.2.1Death
Prior to Separation from Service. If the Executive dies prior to Separation from Service, the Beneficiary shall be entitled to
the lesser of (i) Eight Hundred Thousand Dollars ($800,000) or (ii) the Net Death Proceeds.


2.2.2Death
After Separation from Service. If the Executive dies after Separation from Service, the Beneficiary shall be entitled to the lesser
of (i) the Accrued Benefit as of the day prior to the date of the Executive’s death or (ii) the Net Death Proceeds.


 



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ARTICLE 3


PREMIUMS AND IMPUTED INCOME


3.1Premium Payment.
The Employer shall pay all premiums due on the Policy from its general assets.


3.2Economic
Benefit. The Employer shall determine the economic benefit attributable to the Executive based on the life insurance premium factor
for the Executive's age multiplied by the aggregate death benefit payable to the Beneficiary. The "life insurance premium
factor" is the minimum factor applicable under guidance published pursuant to Treasury Reg. § 1.61-22(d)(3)(ii) or any
subsequent authority.


3.3Imputed Income.
The Employer shall impute the economic benefit to the Executive on an annual basis, by adding the economic benefit to the Executive’s
Form w-2.


ARTICLE 4


SUICIDE OR
MISSTATEMENT


No benefits shall
be payable if the Executive commits suicide within two years after the date of this Agreement, or if the Insurer denies coverage
(i) for material misstatements of fact made by the Executive on any application for the Policy, or (ii) for any other reason; provided,
however that the Employer shall evaluate the reason for the denial, and upon advice of legal counsel and in its sole discretion,
consider judicially challenging any denial.


ARTICLE 5


BENEFICIARIES


5.1 Designation
of Beneficiaries. The Executive may designate any person to receive any benefits payable under the Agreement upon the Executive’s
death, and the designation may be changed from time to time by the Executive by filing a new designation. Each designation will
revoke all prior designations by the Executive, shall be in the form prescribed by the Administrator and shall be effective only
when filed in writing with the Administrator during the Executive’s lifetime. If the Executive names someone other than the
Executive’s spouse as a Beneficiary, the Administrator may, in its sole discretion, determine that spousal consent is required
to be provided in a form designated by the Administrator, executed by the Executive’s spouse and returned to the Administrator.
The Executive’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive
or if the Executive names a spouse as Beneficiary and the marriage is subsequently dissolved.


5.2Absence of
Beneficiary Designation. In the absence of a valid Beneficiary designation, or if, at the time any benefit payment is due to a
Beneficiary, there is no living Beneficiary validly named by the Executive, the Employer shall pay the benefit payment to the Executive’s
spouse. If the spouse is not living then the Employer shall pay the benefit payment to the Executive’s living descendants
per stirpes, and if there no living descendants, to the Executive’s estate. In determining the existence or identity of anyone
entitled to a benefit payment, the Employer may rely conclusively upon information supplied by the Executive’s personal representative,
executor, or administrator.


 


 



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5.3Facility
of Payment. If a distribution is to be made to a minor, or to a person who is otherwise incompetent, then the Administrator may
make such distribution: (i) to the legal guardian, or if none, to a parent of a minor payee with whom the payee maintains his or
her residence; or (ii) to the conservator or administrator or, if none, to the person having custody of an incompetent payee. Any
such distribution shall fully discharge the Employer and the Administrator from further liability on account thereof.


ARTICLE 6


ASSIGNMENT


The Executive may
irrevocably assign without consideration all of the Executive’s interest in this Agreement to any person, entity, or trust.
In the event the Executive shall transfer all of the Executive’s Interest, then all of the Executive's interest in this Agreement
shall be vested in the Executive’s transferee, who shall be substituted as a party hereunder, and the Executive shall have
no further interest in this Agreement.


ARTICLE 7


INSURER


The Insurer shall
be bound only by the terms of its given Policy. The Insurer shall not be bound by or deemed to have notice of the provisions of
this Agreement. The Insurer shall have the right to rely on the Employer’s representations with regard to any definitions,
interpretations or Policy interests as specified under this Agreement.


ARTICLE 8


ADMINISTRATION


8.1Administrator
Duties. The Administrator shall be responsible for the management, operation, and administration of the Agreement. When making
a determination or calculation, the Administrator shall be entitled to rely on information furnished by the Employer, Executive
or Beneficiary. No provision of this Agreement shall be construed as imposing on the Administrator any fiduciary duty under ERISA
or other law, or any duty similar to any fiduciary duty under ERISA or other law.


8.2Administrator
Authority. The Administrator shall enforce this Agreement in accordance with its terms, shall be charged with the general administration
of this Agreement, and shall have all powers necessary to accomplish its purposes. Such powers include, but are not limited to,
the following:


(a)To construe
and interpret the terms and provisions of this Agreement and to reconcile any inconsistency;


(b)To compute
and certify the amount payable to the Executive and the Beneficiary; to determine the time and manner in which such benefits are
paid; and to determine the amount of any withholding taxes to be deducted;


(c)To maintain
all records that may be necessary for the administration of this Agreement;


(d)To provide
for the disclosure of all information and the filing or provision of all reports and statements to the Executive, the Beneficiary
and governmental agencies as required by law;


(e)To make
and publish such rules for the regulation of this Agreement and procedures for the administration of this Agreement so long as
no such rules or procedures are not inconsistent with the terms hereof;



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(f)To administer
this Agreement’s claims procedures;


(g)To approve
the forms and procedures for use under this Agreement; and


(h)To
employ others, including actuaries, attorneys, accountants, independent fiduciaries, recordkeepers and administrative consultants,
to render advice or perform services with respect to the responsibilities of the Administrator under the Agreement.


8.3Binding Effect
of Decision. The decision or action of the Administrator with respect to any question arising out of or in connection with the
administration, interpretation or application of this Agreement and the rules and regulations promulgated hereunder shall be final,
conclusive and binding upon all persons having any interest in this Agreement.


8.4Compensation,
Expenses and Indemnity. The Administrator shall serve without compensation for services rendered hereunder. The Administrator is
authorized at the expense of the Employer to employ such legal counsel and recordkeeper as it may deem advisable to assist in the
performance of its duties hereunder. Expense and fees in connection with the administration of this Agreement shall be paid by
the Employer.


8.5Employer
Information. The Employer shall supply full and timely information to the Administrator on all matters relating to the Executive’s
death, Separation from Service, and such other information as the Administrator reasonably requires.


ARTICLE 9


CLAIMS AND REVIEW PROCEDURE


9.1Claims Procedure.
A Claimant who has not received benefits under this Agreement that he or she believes should be distributed shall make a claim
for such benefits as follows.


(a)Initiation
– Written Claim. The Claimant initiates a claim by submitting to the Administrator a written claim for the benefits. If such
a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after
such notice was received by the Claimant. All other claims must be made within one hundred eighty (180) days of the date on
which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the
Claimant.


 


(b)Timing
of Administrator Response. The Administrator shall respond to such Claimant within ninety (90) days after receiving the claim.
If the Administrator determines that special circumstances require additional time for processing the claim, the Administrator
can extend the response period by an additional ninety (90) days by notifying the Claimant in writing, prior to the end of the
initial ninety (90) day period, that an additional period is required. The notice of extension must set forth the special circumstances
and the date by which the Administrator expects to render its decision.


 


(c)Notice
of Decision. If the Administrator denies part or all of the claim, the Administrator shall notify the Claimant in writing of such
denial. The Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification
shall set forth: (i) the specific reasons for the denial; (ii) a reference to the specific provisions of this Agreement on which
the denial is based; (iii) a description of any additional information or material necessary for the Claimant to perfect the claim
and an explanation of why it is needed; (iv) an explanation of this Agreement’s review procedures and the time limits applicable
to such procedures; and (v) a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following
an adverse benefit determination on review.



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9.2Review Procedure. If the
Administrator denies part or all of the claim, the Claimant shall have the opportunity for a full and fair review by the Administrator
of the denial as follows.


(a)Initiation
– Written Request. To initiate the review, the Claimant, within sixty (60) days after receiving the Administrator’s
notice of denial, must file with the Administrator a written request for review.


 


(b)Additional
Submissions – Information Access. The Claimant shall then have the opportunity to submit written comments, documents, records
and other information relating to the claim. The Administrator shall also provide the Claimant, upon request and free of charge,
reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations)
to the Claimant’s claim for benefits.


 


(c)Considerations
on Review. In considering the review, the Administrator shall take into account all materials and information the Claimant submits
relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.


 


(d)Timing
of Administrator Response. The Administrator shall respond in writing to such Claimant within sixty (60) days after receiving the
request for review. If the Administrator determines that special circumstances require additional time for processing the claim,
the Administrator can extend the response period by an additional sixty (60) days by notifying the Claimant in writing, prior to
the end of the initial sixty (60) day period, that an additional period is required. The notice of extension must set forth the
special circumstances and the date by which the Administrator expects to render its decision.


 


(e)Notice
of Decision. The Administrator shall notify the Claimant in writing of its decision on review. The Administrator shall write the
notification in a manner calculated to be understood by the Claimant. The notification shall set forth: (i) the specific reasons
for the denial; (ii) a reference to the specific provisions of this Agreement on which the denial is based; (iii) a statement that
the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records
and other information relevant (as defined in applicable ERISA regulations) to the Claimant’s claim for benefits; and (iv)
a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a).


ARTICLE 10


AMENDMENTS AND TERMINATION


This Agreement may
be amended only by a written agreement signed by both the Employer and the Executive. In the event that the Employer decides to
maintain the Policy after termination of the Agreement, the Employer shall be the direct beneficiary of the entire death proceeds
of the Policy.


ARTICLE 11


MISCELLANEOUS


11.1No Effect
on Employment Rights. This Agreement constitutes the entire agreement between the Employer and the Executive as to the subject
matter hereof. No rights are granted to the Executive by virtue of this Agreement other than those specifically set forth herein.
Nothing contained herein will confer upon the Executive the right to be retained in the service of the Employer nor limit the right
of the Employer to discharge or otherwise deal with the Executive without regard to the existence hereof.



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11.2State Law.
To the extent, not governed by ERISA, the provisions of this Agreement shall be construed and interpreted according to the internal
law of the State of California without regard to its conflicts of laws principles.


11.3Validity.
In case any provision of this Agreement shall be illegal or invalid for any reason, said illegality or invalidity shall affect
the remaining parts hereof, but this Agreement shall be construed and enforced as if such illegal or invalid provision had never
been inserted herein.


11.4Notice.
Any notice, consent or demand required or permitted to be given to the Employer or Administrator under this Agreement shall be
sufficient if in writing and hand-delivered or sent by registered or certified mail to the Employer’s principal business
office. Any notice or filing required or permitted to be given to the Executive or Beneficiary under this Agreement shall be sufficient
if in writing and hand-delivered or sent by mail to the last known address of the Executive or Beneficiary, as appropriate. Any
notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or
on the receipt for registration or certification.


11.5Headings
and Interpretation. Headings and sub-headings in this Agreement are inserted for reference and convenience only and shall not be
deemed part of this Agreement. Wherever the fulfillment of the intent and purpose of this Agreement requires and the context will
permit, the use of the masculine gender includes the feminine and use of the singular includes the plural.


11.6Coordination
with Other Benefits. The benefits provided for the Executive or the Beneficiary under this Agreement are in addition to any other
benefits available to the Executive under any other plan or program for employees of the Employer. This Agreement shall supplement
and shall not supersede, modify, or amend any other such plan or program except as may otherwise be expressly provided herein.


11.7Inurement.
This Agreement shall be binding upon and shall inure to the benefit of the Employer, its successor and assigns, and the Executive,
the Executive’s successors, heirs, executors, administrators, and the Beneficiary.


IN WITNESS WHEREOF,
the Executive and a duly authorized representative of the Employer have signed this Agreement.


 





	EXECUTIVE	EMPLOYER
	 	 	 
	 	 	 
	 	By:	 
	Title: EVP Chief Credit Officer	Title: President/Chief Executive Officer








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SPLIT DOLLAR LIFE INSURANCE AGREEMENT


Beneficiary Designation


I designate the following as Beneficiary
under this Agreement:


Primary


___________________________________________________________________________________________%


___________________________________________________________________________________________%


Contingent


___________________________________________________________________________________________%


___________________________________________________________________________________________%


 


I understand that I may change this
beneficiary designation by delivering a new written designation to the Administrator, which shall be effective only upon receipt
by the Administrator prior to my death. I further understand that the designation will be automatically revoked if the Beneficiary
predeceases me or if I have named my spouse as Beneficiary and our marriage is subsequently dissolved.


Signature:_______________________________Date:_______





	
        SPOUSAL CONSENT (Required only if Administrator
        requests and someone other than spouse is named Beneficiary)

        I consent to the beneficiary designation
        above. I also acknowledge that if I am named Beneficiary and my marriage is subsequently dissolved, the beneficiary designation
        will be automatically revoked.

        Spouse Name:_______________________________

        Signature:       _______________________________          Date: _________


         



 


By:     ________________________________


 


Title:  ________________________________


 


 


 


 







 











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