Document:

Exhibit 10.1

 

RETIREMENT,
CONSULTING AND NONCOMPETITION AGREEMENT

 

This Retirement,
Consulting and Noncompetition Agreement (the “Agreement”) is made and entered
into as of this 30th day of June, 2005, by and between John G. Briner
(“Consultant”) and Western Sierra Bancorp, a California corporation
(“Bancorp”), (collectively, the “parties”).

 

RECITALS

 

A.            Consultant
desires to retire from his full-time salaried position with Bancorp and its
subsidiaries effective June 30, 2005, and Bancorp desires to obtain the
services of Consultant upon Consultant’s retirement from Bancorp;

 

B.            Consultant’s
knowledge of Bancorp and the banking industry is highly valuable to Bancorp and
its subsidiaries;

 

C.            The
parties recognize and acknowledge the interest of Bancorp and its subsidiaries
in protecting its business and goodwill and that Section 16601 of the
California Business and Professions Code authorizes this Agreement for such
purpose;

 

D.            Bancorp
desires to retain Consultant to serve on an independent contractor basis on an
as-needed basis; and

 

E.             Consultant
will perform such consulting services and not compete with the business of the
Bancorp or its subsidiaries in order to protect the business and goodwill of
such businesses, provided Consultant serves on the Board of Directors of
Bancorp and Bancorp agrees to pay Consultant fees in accordance with the terms
and conditions hereinafter set forth.

 

In consideration
of the services to be performed in the future as well as the mutual promises
and covenants herein contained, it is agreed as follows:

 

1.             Consultant
Services; Bancorp’s Responsibilities.

 

(a)           Consultant’s
Services.  Consultant agrees to
provide consulting services as requested by Bancorp for the Term (as defined in
Section 2 below).  At the request of
Bancorp, the Consulting Services may be provided by telephone or at a site or
sites other than at the offices of Bancorp. 
Furthermore, Consultant agrees to serve as the Chairman of the Board of
Auburn Community Bank and serve as a director of Bancorp.

 

(b)           Bancorp’s
Responsibilities.  Bancorp shall
cooperate with Consultant to accomplish the purposes of this Agreement.  Bancorp shall provide all administrative
facilities and support necessary for the accomplishment of the Consulting
Services.  Furthermore, Bancorp agrees to
appoint Consultant as the Chairman of the Board of Auburn Community Bank and to
appoint Consultant to the Board of Directors of Bancorp effective July 8, 2005.

 

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2.             Term. 
Subject to the provisions for termination provided in paragraph 6,
the term of this Agreement shall begin June 30, 2005 (“Commencement Date”) and
end at the time that Consultant ceases to be a director of Bancorp (the
“Term”).

 

3.             Fees.  Bancorp agrees to pay to Consultant concurrent
with Consultant’s execution of this Agreement, which Consultant agrees to
accept as full payment for his retirement, the automobile which has been
previously provided to Consultant by Auburn Community Bank, the full vesting of
Consultant’s Salary Continuation Agreement and a cash payment of $247,500,
subject to reduction for taxes incurred. 
Furthermore, Bancorp agrees to pay to Consultant, which Consultant
agrees to accept as full payment for the performance of Consulting Services and
for Consultant complying with the noncompetition and nonsolicitation provision
in Section 8 below, $100 per hour for each hour that Consultant provides
Consulting Services requested in writing by the President/CEO of Bancorp.   Consultant acknowledges that Bancorp is
under no obligation to utilize Consultant’s services.  The consultant fees provided in this Section
3 shall be paid by Bancorp to Consultant on a monthly basis.  In addition, Bancorp agrees that Consultant
will be paid for his service as the Chairman of the Board of Auburn Community
Bank, as well as director fees for serving on the Board of Directors of
Bancorp, consistent with director fees paid by Auburn Community Bank and
Bancorp, as applicable.

 

4.             Business Expenses.  Consultant shall be reimbursed for the
reasonable out-of-pocket business expenses incurred or paid by him in the
provision of Consulting Services under this Agreement, as customarily
reimbursable to independent contractors and as approved by the Bancorp which
approval shall not be unreasonably withheld.

 

5.             Independent Contractor.  Bancorp and Consultant acknowledge that
during the Term Consultant will not be an employee of Bancorp and will be
working as an independent contractor for Bancorp.  Accordingly, Consultant shall be responsible
for payment of all taxes including federal, state and local taxes arising out
of Consultant’s activities in accordance with this Agreement, including by way
of illustration but not limitation, federal and state income tax, social
security tax, unemployment insurance taxes, and any other taxes or business
license fees as required.  Consultant
shall not earn any additional medical, dental, life insurance, retirement
benefits, paid vacations or sick leave or any other employee benefits,
including the use of an automobile or an auto allowance as a result of his
providing Consulting Service to Bancorp, provided, however, that Consultant
will receive all benefits which are provided to other employees who retire from
service to Bancorp and/or its subsidiaries.

 

6.             Termination of Agreement.  If this Agreement is terminated pursuant to
this paragraph 6, Bancorp shall have no further liability to Consultant other
than for fees or expenses incurred as of the date of termination but not yet
paid.

 

(a)           Termination
by Death or Disability.  Bancorp may
terminate this Agreement by written notice to Consultant if, during the term of
this Agreement, Consultant shall become incapable of fulfilling his obligations
hereunder because of death, injury or physical or mental illness.  Termination for reason of disability shall be
effective immediately as of the date of said notice.

 

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(b)           Termination
by Bancorp by Failure to Nominate and Elect.  Bancorp may terminate this Agreement by failing
to nominate and elect Consultant to the Board of Directors at any annual
meeting of shareholders of Bancorp.

 

(c)           Termination
by Sale of Bancorp.  This Agreement
will terminate upon the sale or merger of Bancorp whereby shareholders of
Bancorp own less than 51% of the resulting entity following such sale or
merger.

 

(d)           Termination
by Consultant Without Cause. 
Consultant may terminate this Agreement without cause by giving Bancorp
thirty (30) days written notice of said termination and resignation from the
Board of Directors of Bancorp.

 

7.             Indemnification.  To the extent permitted by law and the
articles and bylaws of Bancorp, Bancorp shall indemnify, defend and hold
Consultant harmless against any and all claims as may be asserted by any third
party against Consultant based on the performance of Consultant’s services
under the terms of this Agreement.

 

8.             Noncompetition and Nonsolicitation.  Consultant shall not, during the Term,
directly or indirectly, either as an employee, employer, consultant, agent,
principal, partner, shareholder, corporate officer, director, or in any other
individual or representative capacity, engage or participate in any competing
bank or financial institution or financial services business for any bank or
financial institution or financial services business that has an office within
30 miles of any head office or branch office of any subsidiary bank of
Bancorp.  Consultant hereby acknowledges
the particular value to Bancorp and its subsidiaries of this Section 8, the
loss of which cannot be reasonably or adequately compensated in an action at
law or in arbitration.  Therefore,
Consultant expressly agrees that Bancorp, in addition to any and all other
rights or remedies that Bancorp shall possess, shall be entitled to injunctive
and other equitable relief to prevent or remedy a breach of this Section 8 by
Consultant, without the necessity of posting any bond.  During the Term, Consultant also agrees not
to (i) compete with Bancorp or any of Bancorp’s subsidiaries (collectively referred
to as the “WSB Group”), (ii) induce of any customer of any entity in the WSB
Group to breach a contract with any entity in the WSB Group, (iii) induce of
any employee or agent of any entity in the WSB Group to terminate his or her
employment or agency relationship with any entity in the WSB Group, or (iv)
initiate any legal action (except to enforce Consultant’s rights under this
Agreement) against any entity in the WSB Group or any of the officers or
directors of any entity in the WSB Group. 
Furthermore, Consultant agrees not to compete as provided in this
section for one year following termination under Section 6(b), and two years
following termination under Sections 6(c) and 6(d).

 

9.             Miscellaneous.

 

(a)           Entire
Agreement.  This Agreement supersedes
any and all other agreements between Consultant and Bank, either oral or in
writing, among the parties hereto with respect to the Consultant’s retirement
and consulting services and contains all of the promises and agreements among
the parties with respect to such retention. 
Each party acknowledges that no representations, promises or agreements,
oral or otherwise, have been made by any party or anyone acting on behalf of a
party which are not embodied herein, and that no other agreement, statement,
representation or promise with respect to such retention not contained

 

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in this Agreement
shall be valid or binding.  Any
modification, waiver or amendment of this Agreement will be effective only if
it is in writing and signed by the party to be charged.

 

(b)           Arbitration.  Except as provided in Sections 8 and 9(d),
any controversy or claim arising out of or relating to this Agreement, or
breach of this Agreement, shall be settled by arbitration in accordance with
the Commercial Arbitration Rules of the American Arbitration Association, and
judgment on the award rendered by the arbitrators may be entered in any court
having jurisdiction.  There shall be
three arbitrators, one to be chosen directly by each party, and the third
arbitrator to be selected by the two arbitrators so chosen.  If any arbitration proceeding is brought for
the enforcement of this Agreement or because of an alleged dispute, breach or
default in connection with this Agreement, (i) the nonprevailing party shall
pay the fees of the arbitrators and all other costs of the arbitration,
including the cost of any record or transcripts of the arbitrations and
administrative fees; and (ii) the prevailing party shall be entitled to recover
reasonable attorney’s fees and any other costs and expenses incurred in that
action or proceeding, in addition to any other relief to which it or he may be
entitled.

 

(c)           Choice
of Law and Forum.  This Agreement shall be governed by and
construed in accordance with the laws of the State of California, except to the
extent preempted by the laws of the United States.  Any action or proceeding brought upon, or
arising out of, this Agreement or its termination shall be brought in a forum
located within the County of Sacramento, State of California, and Consultant
hereby agrees to be subject to service of process in California.

 

(d)           Disclosure
of Information.  Consultant
recognizes and acknowledges that the WSB Group possesses trade secrets and
other confidential and/or proprietary information concerning the business
affairs and methods of operation of the WSB Group which constitute valuable,
confidential, and unique assets of the business of the Bancorp (“Proprietary
Information”), which the WSB Group has developed through a substantial
expenditure of time and money and which are and will continue to be utilized in
business operations of the WSB Group and which are not generally known in the
trade.  At any time before or after
termination of this Agreement, Consultant agrees not to disclose to anyone any
Proprietary Information for any reason or purpose whatsoever and not to make
use of any Proprietary Information for his own purposes or for the benefit of
anyone other than the WSB Group under any circumstances.  For purposes of this paragraph 9(d),
Proprietary Information includes, without limitation, all information regarding
services, processes, know-how, service development, business plans, strategic
plans, labor relations, research, finances, marketing, assessments, costs,
benefits, and any other confidential matters relating to the WSB Group.  Consultant hereby acknowledges the particular
value to the Bancorp of this paragraph 9(d), the loss of which cannot be
reasonably or adequately compensated in an action at law or in arbitration.  Therefore, Consultant expressly agrees that
Bancorp, in addition to any other rights or remedies that Bancorp shall
possess, shall be entitled to injunctive and other equitable relief to prevent
or to remedy a breach of this paragraph 9(d) by him, without the necessity of
posting any bond.

 

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(e)           Severability.  In the event that any term or condition
contained in this Agreement shall, for any reason, be held by a court of
competent jurisdiction to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other term
or condition of this Agreement, but this Agreement shall be construed as if
such invalid or illegal or unenforceable term or condition had never been
contained herein.  It is the intention of
the parties that the noncompetition covenants in Section 8 shall be enforced to
the greatest extent (but to no greater extent) in time, area, and degree of
participation as is permitted by the law of that jurisdiction whose law is
found to be applicable to any act allegedly in breach of the covenants.  It being the purpose of this Agreement to
govern competition by Consultant, the covenants in Section 8 shall be governed
by and construed according to that law (from among those jurisdictions arguably
applicable to this Agreement and those in which a breach of said Section is
alleged to have occurred or to be threatened) which best gives them effect.

 

IN
WITNESS WHEREOF, the parties hereto have executed this
Consulting and Noncompetition Agreement as of the date first above written, in
the City of Cameron Park, California.

 

 

	
   

  	
   

  	
   

  	
   

  	
  CONSULTANT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DATED:

  	
  June
  30, 2005

  	
   

  	
   

  	
   

  	
  /s/
  John G. Briner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  John G. Briner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  WESTERN SIERRA BANCORP

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DATED:

  	
  June
  30, 2005

  	
   

  	
   

  	
  By:

  	
  /s/
  Gary D. Gall

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  President/Chief
  Executive Officer

  

 

5<PAGE>

                                                                   Exhibit 10.1

                              [INTELLIGROUP LOGO]

                         EXECUTIVE EMPLOYMENT AGREEMENT

This Employment Agreement ("Agreement") is entered into as of the 1st day of
July 2005 (the "Effective Date"), between Intelligroup, Inc. (the "Company") and
Ranjit Prithviraj (the "Executive"). The purpose of the Agreement will be to
memorialize the terms and conditions of employment for the Executive.

NOW THEREFORE, in consideration of the mutual promises contained in the
Agreement and for other good and valuable consideration, the sufficiency of
which is hereby agreed, the Company and the Executive agree as follows:

1. EMPLOYMENT.

The Company agrees to employ and engage the services of the Executive as the
CHIEF OPERATING OFFICER (COO), INTELLIGROUP ASIA PRIVATE LIMITED, BASED IN
HYDERABAD, INDIA and the Executive agrees to serve the Company in such capacity.
The Executive shall report directly to the CHIEF EXECUTIVE OFFICER (CEO) OF
INTELLIGROUP.

2. TERM OF AGREEMENT.

The Company hereby agrees to employ the Employee, and the Employee hereby
accepts employment with the Company, upon the terms set forth in this Agreement
for a period of 2 years. This contract may be terminated by either party with 30
days notice.

3. GENERAL EMPLOYMENT TERMS.

The Executive shall devote normal business hours and be available to discuss the
business and affairs of the Company five days per week. The Executive shall
further use his best efforts to promote the interests of the Company, and
perform faithfully and efficiently the responsibilities assigned to him. While
employed by Company, Executive shall not engage in other employment, except with
the prior written consent of the Company, which must be given in writing by an
Officer of the Company.

4. COMPENSATION.

4.1 BASE SALARY. Executive shall receive an annual base salary equivalent of INR
8,155,000 ("Base Salary"). The Base Salary shall be payable in cash, subject to
applicable withholdings, in accordance with the current payroll policies of the
Company. The Base Salary shall be deemed effective as of April 7, 2005. The
Company shall pay the Employee an amount equivalent to the difference between
Employee's salary actually paid between April 7, 2005 and June 30, 2005 and the
Base Salary.

4.2 INCENTIVE COMPENSATION BONUS. As further compensation, the Executive will be
eligible to participate in the Company's Executive Incentive Plan. The Executive
shall be eligible under such plan for a bonus in the amount of fifty percent
(50%) of the Executive's annual base salary. This salary shall not be pro-rated
for the first year of employment. The details of this plan will documented
within the first 30 days of Executive's employment and will include a
combination of mutually agreed upon financial, operational, and organizational
objectives. The company and Executive shall in good faith agree to negotiate the
details of the plan within the first 30 days.

Confidential                     Intelligroup, Inc.                           1

<PAGE>

Executive may also be eligible for additional incentive compensation from time
to time at the discretion of the Company.

4.3 EMPLOYEE BENEFITS. In addition, the Executive shall be eligible for all
employee benefits offered to the Company's employees. In particular, the
Executive will be entitled to the following benefits:

         (a) Vacation and Sick Leave. The Executive shall be eligible to
         participate in the Intelligroup Asia Pvt., Ltd.'s's standard vacation
         and sick leave benefit plan and the number of vacation days afforded to
         Executive under the terms of the plan shall be: 1) six (6) days of
         casual leave, 2) thirty (30) days of privileged leave and 3) six (6)
         days of sick leave per year.

         (b) Business Expense Reimbursement. The Executive shall receive
         reimbursement of all legitimate and reasonable business expenses to the
         extent necessary and incurred by the Executive on behalf of the Company
         pursuant to the written policies of the Company in this regard.

         (c) 401(k) Plan. The Executive is eligible to participate in the 401(k)
         retirement benefit (or equivalent in country of residence) plan made
         available to the employees of the Company pursuant to the terms and
         conditions of such plan.

         (d) Insurance Plans. The Executive is eligible to participate in the
         life, health, dental, short and long-term disability plans made
         available to the employees of the Company pursuant to the terms and
         conditions of such plans.

         (e) Changes to Employee Benefit Plans. Nothing in this Agreement shall
         prevent the Company from changing, modifying, amending or terminating
         the employee benefit plans of the Company so as to eliminate, reduce or
         otherwise change any benefits payable under this Agreement.

         (f) Indemnification. Executive will be a party to any standard
         indemnification agreement for the Company's executive officers &
         Directors that may be adopted by the Company and by the Board of
         Directors. The Executive shall have access to the policy.

         (g) Personal Expense Reimbursement. The Executive shall be reimbursed
         up to $15,000 per year for travel expenses incurred by Employee and his
         family related to annual travel to the United States.

5. STOCK OPTIONS. The Executive will be eligible for a grant of 200,000 stock
options ("Options") with an effective date of June 1st, 2005. 100,000 options
shall have strike price of $1.25, while the other 100,000 options will have a
strike price of $1.50. The Options will vest in equal quarterly installments
over four (4) years. The Options shall be governed by the terms and conditions
of the Company stock option plan under which the grant is made as well as the
standard Stock Option Agreement which must be signed by the Executive and the
Company prior to such grants being effective. To the extent that there any
conflicts between this agreement and the Company's Stock Option Agreement, those
specific terms will be superseded by those in this agreement. The Executive
shall have access to the Stock Option Agreement.

Confidential                     Intelligroup, Inc.                           2

<PAGE>

6. CHANGE OF CONTROL.

Notwithstanding the foregoing, at the effective time of a pending "Change in
Control", the vesting and exercisability of your options shall be accelerated by
twelve months, effective as of the effective time of such "Change in Control".
Further, should the Company terminate your employment or attempt to change the
role as defined by this Agreement, your options shall be accelerated in full,
effective as of the effective time of such "Change in Control". "Change in
Control" shall mean (i) a merger, acquisition, sale of voting control or other
business combination such that the shareholders of the Company who hold shares
on the date of this Agreement no longer hold more than 49% of the voting power
following completion of such transaction or, in case of a merger or other
business combination, more than 49% of the voting power of the acquiring or
surviving corporation and/or (ii) the sale of all or substantially all of the
assets of the Company.

7. TERMINATION.

7.1 CAUSE. The Company may terminate the Executive's employment for Cause. For
purposes of the Agreement, "Cause" shall mean (A) any act of dishonesty or
knowing and willful breach of fiduciary duty by the Executive; (B) commission of
a felony involving moral turpitude or unlawful, dishonest, or unethical conduct
that a reasonable person would consider damaging to the reputation of the
Company or any conduct which is in violation of the Company's policies; (C) any
material breach of any provision of the Agreement, or any other agreements
between the Executive and Company, by the Executive; or (D) insubordination or
refusal to perform assigned duties consistent with duties of the Executive's
position or to comply with the reasonable directions of Company's Board of
Directors. If the Executive's employment is terminated for Cause, the Company
shall pay the Executive his full accrued Base Salary through the date of
termination at the rate in effect at the time of such termination, and the
Company shall have no further obligation to the Executive under the Agreement or
under any other agreements or plans. All other compensation including, without
limitation, bonuses, severance and/or stock option grants shall be forfeited if
the Executive is terminated for Cause. Should cause be determined to be (C) or
(D), the company shall give the Executive a 21 day written notice and an
opportunity to correct the issues.

7.2 SEVERANCE. Employee shall be eligible for twelve months of severance (base
salary) pay following the termination of this Agreement by Company for any
reason other than Cause. The payments shall commence upon the day following
termination and continue for a period of twelve months in accordance with the
Company's standard payroll practices. The unvested options at the time of
termination shall be cancelled and returned to the company.

8. MISCELLANEOUS.

8.1 ENTIRE AGREEMENT. The Agreement constitutes the entire agreement between the
parties and supersedes any prior understandings or agreements between the
parties, written or oral, to the extent they relate in any way to the subject
matter hereof including, without limitation, any agreements entered into between
Employee and Intelligroup Asia pvt ltd. The Intelligroup Standard Employee Terms
agreement as executed by the Executive or executed in the future by the
Executive, shall be made a part of the Agreement. In the event there are any
inconsistencies between the Agreement and the foregoing agreements, the terms of
the Agreement shall take precedence.

8.2 NO ASSIGNMENT; ASSUMPTION. The Agreement is personal to the Executive and
shall not be assignable by the Executive. The Agreement shall inure to the
benefit of and be binding upon any successor to the business or assets of the
company which assumes the Agreement, whether expressly or by operation of law.

8.3 GOVERNING LAW. This is a New Jersey contract and shall be construed under
and is governed in all respects by the laws of New Jersey, without giving effect
to any conflict of laws principles of New Jersey law. Any legal action or suit
related in any way to the Agreement shall be brought exclusively in the courts
of New Jersey. Both parties agree that the courts of New Jersey are the
exclusive convenient forum for the resolution of disputes.

Confidential                     Intelligroup, Inc.                           3

<PAGE>

8.4 AMENDMENTS. No amendments of any provision of the Agreement shall be valid
unless the same shall be in writing and signed by both the Company and the
Executive.

8.5 SEVERABILITY. Any term or provision of the Agreement that is invalid or
unenforceable in any situation in any jurisdiction shall not affect the validity
or enforceability of the remaining terms and provisions hereof or the validity
or enforceability of the offending term or provision in any other situation or
in any other jurisdiction.

8.6 RELOCATION EXPENSES. All reasonable relocation expenses (up to a maximum of
$15,000 USD) shall be covered by the company. This shall include the following:
transaction costs associated with the sale of the Executive's primary residence,
airfare for the Executive and family members to relocate to Hyderabad India, and
moving expenses associated with personal items.

8.7 INSURANCE. The company shall make best efforts to retain its existing
Directors & Offers Insurance Policy.

8.8 TAXES. The Company shall work with employee to insure that Employee's tax
burden shall equate to that of India solely. In the event that Employee incurs
tax liability in the United States, the Company shall cover any out-of-pocket
expenses incurred by Employee in this regard including, without limitation,
advancement of additional tax payments which may be required by the Employee in
the United States, provided that the payment of such advances shall be promptly
repaid to the Company upon payment by the US authorities.

IN WITNESS WHEREOF, the parties hereto have executed the Agreement as of the
date first above written.

/s/ Ranjit Prithviraj
----------------------------------
Executive                                  Company

                                           /s/ Vikram Gulati
                                           -----------------------------------
                                           Name: Vikram Gulati
                                           Title: CEO and President

Confidential                     Intelligroup, Inc.                           4

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